C&I Retailing Magazine April-May 2024

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Welcome to the latest issue of Convenience & Impulse Retailing magazine, your trusted source of insights and trends in the fuel and convenience retail sector.

First up, we meet Jason Joukhador, General Manager of Merchandise and Dealer Channel at Ampol, where we find out what makes him tick and delve in to his passion for making a difference. We then head to White’s IGA Forest Glen to discover see what makes this store so beloved by its community.

Convenience stores have long been the go-to destination for those in need of a quick pick-me-up or a sweet treat on the run. From classic favourites to innovative new offerings, the confectionery aisle continues to entice customers with its array of chocolates, candies, and snacks. In this issue, we explore the latest trends and developments in the confectionery category.

We then turn our attention to flavoured milk, a category that has seen positive growth in recent years.

Whether it's the nostalgic taste of childhood or a bold new flavour sensation, flavoured milk options are captivating taste buds and driving sales across Australia.

No convenience store experience would be complete without a selection of hot, ready-to-eat meals and snacks for those on the move. In this issue, we take a closer look at the burgeoning market for on-the-go hot food, exploring the innovative products and strategies that are transforming convenience store kitchens into culinary hotspots.

We then take you to UCB’s 2024 National Member Conference which was held at the Royal Pines Resort on the Gold Coast, featuring a great few days of learning, networking, and fun.

As always, we are grateful for our columnist Jason Joukhador, GM Merchandise and Dealer Channel at Ampol, as well as a special opinion piece from Jade Burnett, from the sales team at Consult Group.

I hope you enjoy the issue!

Cheers, Thomas Oakley-Newell

James

Refreshing Coca-Cola Zero Sugar Lime

Coca-Cola Zero Sugar Lime – your favourite drink just got even more refreshing with a zesty twist of lime flavour.

Coca-Cola Zero Sugar Lime is the newest addition to Coca-Cola’s portfolio of innovative flavours. Coca-Cola is always evolving its product portfolio to provide more of what people love! Coca-Cola Zero Sugar lime features a 3.5 star health rating.

Add a little zest to your glass, available to order now! 132653 | www.cocacolaep.com/au

Stronger for longer

Ice Break has the real coffee solution for a sustained energy recharge. New Ice Break Strong Espresso 500mL is made from Aussie milk and features three shots of roasted robusta coffee and 25g protein per serve.

Leveraging the real coffee credentials of Ice Break, this exciting NPD has been designed to satisfy consumer appetite for more intense caffeine options while providing the satiety benefits of protein. The launch will be supported by screens activity, outdoor advertising, digital media, and in-store point of sale, to drive awareness and attract new drinkers.

Ice Break Strong Espresso will be available in grocery and convenience stores nationally from late April.

facebook.com/IceBreak

Introducing ice block with a sour twist

Get ready to tantalise taste buds with Sour Popz, the latest creation from Golden North.

These ice blocks pack a punch with Sour Grape and Sour Lemon flavours, perfect for kids and teenagers who crave the zing of sour lollies in a refreshing icy format.

Ideal for convenient stores and impulse channels, Sour Popz are set to be the coolest treat of the season.

Don't miss out on this refreshing and tangy delight that will leave your customers begging for more! Now available.

goldennorth.com.au/ice-block

Reimagined Polly Waffle returns for Aussies

Sweet-treat lovers across the country are set to rejoice this April, with Polly Waffle making its debut back on supermarket shelves for the first time in over a decade.

Menz acquired the rights to Polly Waffle from Nestlé in 2019, responding to the passionate demands of Aussies, desperate for the chocolate-aisle favourite to remain on-shelves. Menz has spent the last few years researching and developing the nostalgic Polly Waffle taste profile to re-introduce the product to Australians with a modern twist: Polly Waffle Bites.

Crunchy wafer pieces scattered through a coating of delicious milk chocolate, surround the soft marshmallow centre that Polly Waffle is best-known and loved for, with the new Bites providing a 125g bag of bite-sized Polly Waffle morsels.

Available at The Distributors.

1800 989 022 | www.the-distributors.com.au

“I’m sublime with Lime.’’

A positive impact

With a strong commitment to retail, Jason Joukhador, General Manager of Merchandise and Dealer Channel at Ampol, has a passion for making a difference in both his professional and personal life. This is his story…

I WAS BORN, grew up and still call home the vibrant heart of the inner west of Sydney, a place where a blend of wonderful cultures thrive.

Born into a traditional Lebanese household, my early life was shaped by the presence of four pivotal figures: my father, mother and two older brothers.

My father instilled in me the values of hard honest work, discipline and patience, whilst my mother was my beacon of compassion and care.

Growing up alongside two brothers, I was never short of companionship, competition, or adventure. They were both my fiercest competitors and my staunchest allies. Only years apart, we together, navigated the trials and tribulations of childhood and adolescence.

Each member of my family played a distinctive role in shaping the person I have become, both personally and professionally. Their influence is a thread that runs through the tapestry of who I am today, a constant reminder of where I come from and the values that drive me forward.

My upbringing was a blend of traditional values, deeply rooted in the migrant journey of my parents / grandparents. Their courageous move to Australia with nothing, driven by a desire for a better future for their family, was underpinned by strong Christian values that guided us through the challenges and opportunities alike.

From a young age, the emphasis was on education and personal development, seen as keys to unlocking opportunities. Surrounded by a close-knit circle of family and friends, I was instilled with a sense of community and the understanding that success is not just personal achievement but also the support network you have around you and the ability to contribute positively. This foundation laid the groundwork for my career, driving me to pursue excellence while staying true to the values of relationships, service and integrity.

My career journey commenced behind the cash registers at my local Big W, a role that spanned parts of my high school and university years. As I navigated various roles within the store, I gained a versatile understanding of retail operations, further enriching my professional toolkit and laying the groundwork for my professional path. This position, far from being just a job, was where I caught the retail bug and the best catch, my wife Rita, who since then has been my best friend and now mother to my three beautiful kids.

Throughout my career, the opportunity to travel overseas has been a privilege that has enriched my professional and personal outlook in countless ways. Each destination has been a chapter in an ongoing journey of learning and discovery, providing me with a broader understanding of the world and its diverse tapestry of cultures, ideas and ways of life.

These journeys have been instrumental in shaping my approach to my career, inspiring innovation and fostering a sense of empathy and adaptability that has been crucial in navigating the complexities of the modern workplace. The lessons learned from these experiences have transcended geographical boundaries, influencing my professional ethos and encouraging a continuous quest for knowledge and understanding.

Joukhador has been involved in various not-for-profits

“My desire to learn, grow, and be the best at what I’m passionate about meant I have jumped into many roles across a number of retail organisations, including sitting on three not for profit boards.”

If I were to pick my top three destinations it would be the breathtaking natural beauty of Jasper Canada, the unexpected diverse experience that Turkey offers and spending time on the beautiful beaches at our doorstep here in Australia.

Currently, I am General Manager of Merchandise and Dealer Channel at Ampol, where I lead our merchandise team for the over 600 company owned and operated Foodary branded stores and independent fuel dealer channel.

Since catching the retail bug, I have never ventured away from retail. I can confidently say I have covered most functions in retail – in field, central operations, IT, merchandise, strategy, improvement, finance. all sizes – large, medium, small. Key operating models –company, franchise and buying group. Various company structures – public, private and not for profit retail.

My desire to learn, grow and be the best at what I’m passionate about meant I have jumped into many roles across a number of retail organisations including sitting on three not for profit boards.

These boards are Save Our Sons – The peak body for Duchenne Muscular Dystrophy in Australia – a charity very close to my heart who look to cure Duchenne and Becker muscular dystrophy. The St Vincent de Paul Society NSW – a member and volunteer-based organisation who assist people experiencing disadvantage and hardship and the Australian Association of Convenience Stores (AACS) – representing the interests of all businesses within the convenience channel here in Australia.

I often get asked what drives me and how did you define your pathway to where you are today. The time I spend needs meaning and purpose. This meaning and purpose has either been determined by making a difference in the work that I do, making a difference to those who need a helping hand and making a difference for my family.

My advice to retailers would be that retail has never been a walk in the park. Understanding the market, your customer, and not being afraid to evolve and disrupt based on the insights is crucial. For suppliers, collaborate with your retailers. Retail is a value chain and most effective when there is no chink in the chain.

My family/my world is made up of my gorgeous and always positive wife, my super son and two shining lights, my daughters. We do have a few chickens to keep up with the demands of a good healthy daily breakfast.

Having three young children, my weeknights and weekends are filled in investing in their development, commitments and other family events.

I was lucky enough to grow up with parents who sacrificed and invested in me. If I appreciate this and do the same for my children that’s the best thanks I can give.

I often get asked where I want to be in five years.

My typical response doesn’t explain an explicit destination. Life is a journey and you never know what is around the path. For me good health and doing what I love with my family and friends around me is all I wish for. ■

Joukhador and his wife

Joukhador's three young children

Speaking at the 2023 Ampol Supplier Forum

The ultimate destination for convenience retailers

29-30 October 2024

MCEC, Melbourne

Visitor registration is open for the 21st Convenience & Impulse Retailing Expo!

We’ve teamed up with Accommodation Link to secure exclusive discounted room rates at a variety of hotels close to the venue. Register early and book your stay now to avoid inflated prices or missing out (Coldplay will be in town and demand is high).

Visit the Accommodation page at candiexpo.com.au to get started. Australia’s leading Petrol & Convenience expo has so much to see and taste. Discover new products for your store, and network with retailers and suppliers from across Asia Pacific.

A cornerstone of the community

Words Thomas Oakley-Newell

An emphasis on personalisation and local produce makes White’s IGA Forest Glen a local favourite.

LOCATED IN THE picturesque Sunshine Coast of Queensland, White’s IGA Forest Glen offers a unique and exciting shopping experience designed to entice and captivate customers through intimate store design featuring handpicked, artisan and bespoke products ranged and sourced through its exclusive locavore program and a great mix of everyday products at competitive prices.

“We create a heartspace for our community to gather, socialise and feel connected. We are the only supermarket group in the world to facilitate the technology companion created by C’erge, to provide an inclusive, independent, and personalised service for our shoppers who identify with disability,” explained Roz White, owner of White’s IGA Group.

The mission at White’s IGA Forest Glen, and all White’s IGAs, is to help customers make better, conscious, and mindful selections to transform their shopping experience from a standardised experience to an enjoyable, empowered, personalised, connected, and fulfilling one.

“Our stores are uniquely designed in tune with their location to reflect local history and individuality and to capture the nuances that exist in each community, subtly interwoven and represented through design and layout. Every touchpoint within the store has been deeply considered and carefully selected to that which is unique to White’s IGA and the community to create a welcome feeling.”

Supporting local White’s IGA’s unique and exclusive locavore program supports local businesses by sourcing food and products that are grown, raised, or produced locally, usually within 200 kilometres from the store.

“White’s IGA’s distinctive locavore culture supports over 200 local suppliers and contractors with local, national, and international recognition. It was recently admired and highlighted through the global office of IGA Inc. based in the USA,” said White.

The store deepens the locavore messaging in-store through unique ticketing, locavore market days, taste testing, and food demonstrations, designed to connect customers to the creator and ignite a passion and love for local food.

Recently, White has seen an escalation in the wellness category and special dietary, displaying that living a healthy lifestyle is becoming increasingly important to shoppers.

“Health, energy or vitamin shots, sugar-free drinks and varying alternatives to traditional sodas are popular. Premium and sustainable non-plastic options by local providers such as OK Boocha and Heads of Noosa, provides broad shopping choice for the customer. White’s IGA places a huge emphasis on sourcing local products which means food is fresher and kinder to the planet by minimising transportation.

“Adapting range to pursue new opportunities for alternative products is essential to stay viable and

capture and combat market changes. Shoppers needs change all the time and so we must embrace new lines and make space for our modern shoppers needs.”

Stocking traditional grocery at everyday prices, mixed with hot specials, easy meal solutions, private label and a good representation of traditional brands proves popular with shoppers at White’s IGA.

Building relationships

As an independent supermarket operator, relationships are paramount for White. This independence enables them a wide scope to build meaningful and enduring relationships with customers, the industry, and community.

“It is imperative to build strong relationships with suppliers and your trading partners. Business is built on relationships. Immerse yourself in your industry, build networks and create friendships to gain insights and support. Being up to date and informed creates a great platform for new ideas.

“Three decades of partnerships feels more like old friends. There is a camaraderie that exists through longevity.”

One such partnership is the one that White’s IGA has formed with Queensland-based chicken brand Lenard’s.

“We have stocked Lenard’s products in our stores for as long as I can remember. I believe we gained greater access to the products when the brand moved away from the exclusive standalone franchise model. Offering our customers this value-add line at the time of availability brought some excitement to our delis and meat offer.”

Remaining relevant

“We continue to adapt our business model to remain relevant and market leading, which requires not just physical changes to layouts and design, but the management of margins and sales to remain viable.”

- Roz White, Owner, White’s IGA Group

The ever-changing nature of retail throws up many challenges, but also many opportunities. For White, she says that while retail keeps challenging them, is also inspires them to innovate and change to the needs of the modern shopper.

“We continue to adapt our business model to remain relevant and market leading, which requires not just physical changes to layouts and design, but the management of margins and sales to remain viable.

“My biggest epiphany over 30 years of grocery retailing is in the words of Bob Proctor ‘you don’t decide your purpose, you discover it’. When your passion and purpose come to life, you can craft your vision, and focus with clarity. When you understand these fundamentals, you just know what to do and then get on with it.”

Roz White has clearly discovered her purpose, having opened six IGA stores since purchasing their first IGA site in 2004.

“Wherever you might be in your retailing journey, always keep learning, adapt and change, refine and improve, reinvest to grow. Don’t stand still, otherwise you will easily slip behind and your competitors will take advantage of the opportunity you have left on the table.” ■

White’s IGA’s locavore program supports local businesses

Bespoke and artisan products are sold alongside everyday items

White’s IGA Forest Glen aims to create a welcoming atmosphere

Hitting the sweet spot

Novelty and tradition continue to collide in the confectionery category, as consumers seek out novel and inventive offerings, while maintaining a steadfast demand for the classic sweet treats.

Words Lizzie Hunter

DESPITE INCREASING COST of living

pressures, consumers continue to be drawn to the petrol and convenience (P&C) channel when looking to satisfy cravings or find a sweet treat they can have on the go.

According to Joy Lu, Nestlé Australia’s Commercial Development Executive – Impulse and Convenience, while consumers are putting more time and effort into getting the most value for their money, they are not always reaching for the cheapest products, but instead for the most convenient ones.

“Maintaining a presence in this channel ensures Nestlé can capture these impulse purchases, reach a broad customer base, complement other retail channels and stay competitive in the market,” says Lu.

As stated in the AACS 2023 State of the Industry Report, confectionery accounts for 6.7 per cent of total channel sales, up from 6.1 per cent in the prior year, with $693 million in sales in 2023.

Shift towards healthy alternatives

Founder of Funday Natural Sweets, Daniel Kitay says there has been a continued rise in the health and wellness trend within the confectionery category over the last 12 months, despite economic pressures.

“This trend is reflected in the premium segment's resilience, where Funday Sweets operates with its high-quality, health-conscious offerings,” says Kitay.

“Consumer spending habits, as reported by industry analyses, show a willingness to pay a premium for products that align with personal health goals and ethical standards, even in tighter economic times. This shift indicates a broader consumer movement towards value-based purchasing, where the intrinsic value of a product's health and ethical credentials outweighs its cost.”

Kitay says the shift towards products with low sugar content, clean label ingredients and natural flavours are driven by a more informed consumer base that demands transparency and healthfulness in their snack choices.

“According to Food Standards Australia New Zealand, there's a growing demand for products that offer clear nutritional information and health benefits, reflecting changing consumer expectations towards healthier, more sustainable snacking options,” he says.

Rising demand for US confectionery

While a fascination with American culture is nothing new to the Australian market, GC Brands Brand Manager Guy Bennett, says there has been a steady rise in demand for US confectionery, cereal and snack foods.

“We’re seeing some big players take notice of the consumer demand for a trend that was initially confined to niche independent or specialty stores,” says Bennett.

“As a distributor with strong partnerships with US confectionery manufacturers including Ferrara and Jelly Belly, GC is working with a number of major retailers to realise the sales potential of this trend in the first half of 2024.”

CTC Australia Brand Manager Lisa Pushkin says when it comes to confectionery purchasing decisions, familiarity, tradition, and comfort remain top of mind for consumers, however more than one in three are now looking for new flavours.

“Today’s consumers are seeking flavours that are interesting or exotic and are also basing purchasing decisions on indulgence,” Pushkin says.

“Customers are also searching for a point of difference when shopping in P&C retailers. For example, buying products or brands that can only be found in P&C and aren’t available in the major supermarkets.”

Kitay says Funday’s nostalgic flavours like raspberry frogs, fruity snakes and strawberries and cream resonate with consumers seeking comfort in familiar tastes without compromising their health goals.

“These products align with a broader trend towards nostalgic consumption, where consumers gravitate towards brands and products that evoke a sense of nostalgia while adhering to modern health standards,” says Kitay.

“The success of these products in the P&C channel underscores a significant consumer shift towards health-conscious indulgence, where taste and health are not mutually exclusive.

“Industry reports indicate that products offering a combination of health benefits and indulgent experiences are seeing increased preference among consumers, particularly among millennials and Gen Z.”

Lu says introducing innovative products and flavours can attract customers and drive sales in the P&C market.

“Shopper studies showed that consumers within the P&C channel are particularly captivated by novel and inventive offerings,” says Lu.

“As customers perpetually seek indulgence and delightful treats, P&C confectionery retailers can seize the moment by pushing the boundaries of innovation, satisfying cravings and establish themselves as the ultimate destination for irresistible confectionery delights.

Embracing technology can also unlock opportunities for the P&C market, according to Lu.

“Implementing digital solutions, such as mobile apps, loyalty programs and personalized marketing can enhance customer engagement, streamline operations, and provide valuable insights for targeted promotions,” says Lu.

“Consumer spending habits, as reported by industry analyses, show a willingness to pay a premium for products that align with personal health goals and ethical standards, even in tighter economic times.”

- Daniel Kitay, Founder, Funday Natural Sweets

Pushkin echoes Lu, pointing to the fact that younger consumers favour social and digital media as key sources of food inspiration and information.

“TikTok will continue to set trends in novel use of products and ingredient, whereas older consumers are still more likely to turn to friends, family and oldschool recipe books,” says Pushkin.

“The challenge this poses for P&C retailers is meeting consumer needs via a strong digital media strategy, whilst ensuring the older consumers are still catered for.”

In 2024, GC Brands will be targeting growth in ‘Peg Bags’ with HI-CHEW, Nerds and Jelly Belly. Previously these brands had focused on impulse offerings.

“Our fastest growing products are Nerds Gummy Clusters and HI-CHEW Sticks,” says Bennett.

“Gummy Clusters is a simple yet addictive evolution of the classic Nerds formula and one which we’re seeing adults embrace. The result is sales which exceed classic Nerds products in many retailers. Meanwhile HI-CHEW, a giant of Asia, is proving to be just as popular for Australian consumers with significant year on year growth marking this as a large brand for the future.”

GC Brands has also enjoyed significant growth of NOMO, a UK vegan chocolate brand that was launched into the market last year. →

“NOMO has already carved out a strong presence across structured retail. While we very much view this as a product of scale in two to five years’ time, we have already seen significant growth in the range on the back of an incredible flavour profile.”

Nestlé Australia’s KitKat, Allen’s and MilkyBar continue to have a strong presence and consumer appeal in the channel, says Lu.

“The KitKat milk chocolate bar (45g) is the top selling medium chocolate bar in the market, while the KitKat Chunky Bar (50g) has moved up to the third ranking,” says Lu.

“Also delivering strong growth are the KitKat Share Bar and KitKat Chunky Share Bar, both sitting in the top five best-selling chocolate share bars. Additionally, MilkyBar, the top white chocolate brand in market, is leading the white chocolate segment, experiencing growth of 18 per cent.”

Nestlé is set to launch the KitKat Honeycomb Buzz Share Bar (65g) exclusively to the P&C channel in April this year.

“Offering a channel-exclusive product means Nestlé can create a sense of exclusivity and excitement among P&C customers, enticing them with a unique product tailored in the right format,” explains Lu.

“This aligns with Nestlé’s strategy to not only drive customer engagement and loyalty, but to also strengthen the P&C channel's position as a go-to destination for exclusive and innovative confectionery options.”

CTC will launch two new flavours into its range of Fini Confectionery in a cup this year.

“The Fini Confectionery in a cup is perfect for drink holders in the car,” says Pushkin.

“In addition to this, we have a proven offlocation system called Kandy Kingdom. This point-of-sale unit carries a range of exciting novelty

“Today’s consumers are seeking flavours that are interesting or exotic and are also basing purchasing decisions on indulgence.”

– Lisa Pushkin, Brand Manager, CTC Australia

confectionery products that are perfect to keep kids happy in the car. Other new novelty lines from CTC include Soda Cans, Mallow Burger and Minions Sherbet Dips.”

Market forecasts

Bennett notes the single biggest challenge for retailers over the 12-24 months will be consumer spending.

“While this will no doubt pinch many categories, the slowdown is likely to hit on premise consumption in particular as consumers switch to look for better value options.”

While Kitay echoes Bennett’s sentiments on consumer spending habits, he notes the confectionery sector, particularly the niche occupied by healthier options like Funday, presents an opportunity for growth.

“Historical data suggests that confectionery sales remain stable or even increase during economic downturns, as consumers seek indulgences or elements of joy in otherwise a dark economic environment,” he says.

Lu advises P&C retailers to offer seamless omnichannel experiences.

“Customers are increasingly looking for convenience in their shopping experiences, not only in physical stores but also through online platforms,” Lu says. “P&C retailers will need to adapt by offering seamless omnichannel experiences, providing convenient services like click-and-collect or home delivery, and ensuring a smooth transition between online and offline shopping.

“Navigating challenges and capitalising on opportunities will require strategic planning, adaptability, and a customer-centric approach.

P&C retailers that can anticipate and respond to these dynamics will be well-positioned for success in 2024 and beyond.” ■

PRICE POINT

ONE BAR OF LUSCIOUS CHERRIES AND COCONUT WITH BLACKCURRANT FLAVOUR IN OLD GOLD RICH DARK CHOCOLATE SPRINKLED WITH COCONUT

Milking the moment

The flavoured milk category continues to thrive as consumers increasingly seek handy, functional beverages that offer not only taste, but additional nutritional benefits.

Words Lizzie Hunter

FLAVOURED MILK CONTINUES to gain importance due to the growing health and wellness trend, with more consumers turning to flavoured milk for a tasty alternative to sugary beverages, that also delivers essential nutrients like calcium and protein*.

Flavoured milk consists of two key segments – iced coffee and ‘rainbow’ milk, which comprises all other flavoured milks.

In the recently released AACS 2023 State of Industry Report, total beverage sales reached $2.85 billion, an increase of 12.1 per cent from the prior year. Flavoured milk now makes up 19.2 per cent of total beverages.

Daryl Barry, Senior Category Manager of Beverages at Bega Dairy and Drink, says one of the key drivers for the growth of the flavoured milk market is the rising demand for functional beverages.

“Consumers are increasingly seeking functional beverages that offer not only taste but also additional health benefits,” says Barry.

“Flavoured milk is perceived as a healthier alternative to carbonated soft drinks and other sugary beverages as it contains essential nutrients such as calcium, protein, vitamins and minerals.”

Australians are recognised as big consumers of drinking milk, with Australia’s per capita consumption ranking among the highest in the world, according to a report released by Rabobank last year**, while the International Dairy Federation has found the average Australian consumes a large volume of drinking milk, ranking only behind Ireland, Finland and New Zealand.

Barry says the flavoured milk category is critical to the success of a P&C retailer’s overall beverage offer, because it drives foot traffic into stores, with one in five shoppers purchasing flavoured milk, mainly between the hours of 5:00am – 9:00am.

“The milk beverage shopper is very valuable because they have a very high propensity to cross shop and buy on impulse, therefore it is extremely important that their favourite brand is always available,” says Barry.

“Almost half of iced coffee shoppers and 60 per cent of flavoured milk shoppers buy into another category more than any other beverage category, therefore it is critical that stock is fully merchandised and replenished during the 5:00am – 9:00am window.

“Forty-four per cent of shoppers are likely to walk away altogether without a purchase if their preferred

brand is unavailable. This highlights a great opportunity for retailers to merchandise milk beverages both in the main and front of store fridge to capitalise on the impulse nature of this category.”

Prime position

Despite the relative short shelf-life of flavoured milk, Marcus Morais, Category Manager at Lactalis Australia says with good stock management, P&C retailers can easily boost their total sales by allowing adequate space for flavoured milk.

“The biggest opportunity we see for retailers when it comes to the positioning and space of flavoured milk, is that the category is often very under-indexed in terms of space on shelf compared to share of the total fridge sales,” says Morais.

“Flavoured milk represents around 26 per cent of value share, the second largest in the beverages category, not far behind energy drinks which has 30 per cent. Despite that, it is not uncommon to see energy drinks with twice as much space as flavoured milk.

“When it comes to the key segments, iced coffee is a much more habitual planned purchase, while rainbow is more impulsive – therefore it is important to ensure rainbow milks are always featured at a prominent, eye level position on shelves so it can be seen and purchased by shoppers.”

Ben Faulkhead, Category Manager at APCO, said most of the growth in the category is being driven from iced coffee, with stronger strength profiles being key to this and products like Dare Intense and Ice Break Extra Shot being strong performers for the APCO network.

“Sales have been growing in the area with double digit sales growth from iced coffee. Some of this has been driven by shelf price increases and

whilst we have had some unit growth, we did see this slow in the back half of the year.

Faulkhead said APCO has expanded its offering in the space slightly from where it was 12 months ago, although they have traditionally always given a lot of space to iced coffee and flavoured milk based on their customer’s preferences.

“I think brand and promotions are important in the area. We certainly see a big switch between on and off promotional windows. We also see that there is a strong preference for local flavoured milk where our customers have a local brand available.”

Morais says the P&C channel plays a vital role for the Lactalis Business, which manufactures brands including Oak (which is currently valued at more than $37 million in P&C) and Ice Break (valued at over $55 million).

“Flavoured milk is a highly impulsive category, with consumption occurring immediately, or shortly after purchase,” explains Morais. “Having our products in P&C stores allows us to reach shoppers while they are on the go in need of a treat, an energy boost, or simply to refresh themselves. It also allows us to diversify our business and reduce our reliance on the major grocers.”

Despite inflation and interest rate hikes appearing to have peaked, Morais notes the cost of living is still very high, impacting many consumers in a negative way.

“When things get tough, consumers turn to small, affordable luxuries, treats or experiences to escape reality, and help themselves feel better – the so called ‘lipstick effect’, now more broadly described as ‘fun-flation’. This phenomenon is great news for flavoured milk and the P&C channel – as the category itself is seen as a ‘treat’ with shoppers buying it because ‘they feel like it’.” →

“Flavoured milk is perceived as a healthier alternative to carbonated soft drinks and other sugary beverages as it contains essential nutrients such as calcium, protein, vitamins and minerals.”

- Daryl Barry, Senior Category Manager of Beverages, Bega Dairy and Drink

Market moo-ving with opportunities

New products contributed more than 88 per cent of the growth of milk beverage sales in 2023.

“New Product Development (NPD) and innovation is critical to the growth of the category and bringing new shoppers into your store,” says Barry.

“However careful consideration should be given to the core SKUs and space allocated that generate the majority of your sales and profitability.

“As sugar remains the main barrier to increased consumption of milk beverages, the ‘no sugar’ segment offers a great opportunity for retailers to expand into,” says Barry.

“‘No sugar’ continues to be one of the fastest growing segments across total beverages yet still remains significantly under-indexed in milk beverages vs energy and carbonated soft drink ‘no sugar’ added sales.

“Dairy free or plant-based milk also continue to gain momentum, although still a niche segment at this stage, as consumers look for plant based or animal free alternatives but still crave the great taste of traditional iced coffee and flavoured milk beverages.”

Faulkhead says that APCO hasn’t seen the growth in low or no added sugar type beverages that he would have expected 12 months ago.

“Lactose free has also been challenging as I think more education to customers is needed in the space. Outside of iced coffee, our core chocolate and strawberry flavours continue to perform strongest and have driven most of the unit growth in flavoured milk. I think moving forward there are a number of challenges facing the category in terms of shelf price, promotional price, margin.”

Morais adds that protein has been a mega trend in food for the last decade, with a multitude of brands and products not only being launched, but more importantly, succeeding.

“There is a clear opportunity for flavoured milk to take advantage of the protein trend and attract a new wave of shoppers into the category.”

- Marcus Morais, Category Manager, Lactalis Australia

“We’ve seen this trend playing out in a number of dairy categories such as yoghurt and cheese where brands are supporting consumers with their specific health needs. There is a clear opportunity for flavoured milk to take advantage of the protein trend and attract a new wave of shoppers into the category,” he says.

Smaller packs sizes, especially in the iced coffee space, will be a big opportunity in 2024.

“Flavoured milk really lacks attractive entry level options for new or light shoppers who can't drink the usual 500ml sizes widely available,” says Morais.

“Ice Break has entered this space with its 320ml range, which has been a hit with shoppers.

“Lactalis is also set to launch the Ice Break Strong Espresso 500ml featuring three shots of roasted robusta coffee and 25g protein per serve in April. This new product has been designed to satisfy consumer appetite for more intense caffeine options while providing the satiety benefits of protein,” explains Morais.

“Ice Break’s recently launched lactose-free dedicated iced coffee is also outselling its direct competitor and helping to attract new shoppers to the segment who look for easy-to-digest dairy options.”

Following its success partnering with Australian brands such as Golden Gaytime and Paddle Pop, Oak is also set to partner with Violet Crumble this year, bringing yet another iconic confectionery brand into the flavoured milk space. ■

*https://www.renub.com/flavoured-milk-market-p.php

**https://www.rabobank.com.au/media-releases/2023/230227drinking-milk-to-stay-key-category-for-australian-dairy-sector

Hot opportunity

Foodservice is a key growth category for petrol and convenience retailers, with Food Savouries, including on-the-go options leading that charge.

Words Deb Jackson

DESPITE MEDIA REPORTS stating that national pie sales were down by around 40 per cent in 2023, this is not evident in the petrol and convenience channel (P&C), where Food Savouries, including meat pies, continue to be a key driver of sales growth within the wider Foodservice segment.

Theo Foukkare, CEO of the Australian Association of Convenience Stores (AACS), has highlighted that a strong Foodservice offering is of crucial importance to convenience retailers, with the channel adding $142 million in value growth over the last 12 months.

According to the AACS 2023 State of the Industry Report, the Foodservice channel saw a strong performance with total sales of $1.34 billion, up 12 per cent on the year prior, and marking six straight years of double-digit growth.

At the recent AACS Industry Awards 2023, the winner of the Food-on-the-Go category was Patties Food Group, which is a leading player within the P&C channel with its Four’N Twenty range.

Anand Surujpal, Chief Marketing and Growth Officer at Patties Food Group said P&C plays a key role in the Four’N Twenty broad distribution network.

“Our product range has something for everyone, from commuters needing a quick snack to travellers on a long road trip to anyone needing a midafternoon pick-me-up. P&C plays a vital role in helping us service our on-the-go customers,” he said.

“We constantly work with our P&C partners to connect with our customers, ensure we keep up with changing customer needs, and remain the on-the-go hot snack food of choice for Australians.”

Within the increasingly competitive convenience sector, Four'N Twenty is the market leader for hot, on-the-go, savoury options and outperforms its competitors across the channel. In fact, according to Circana data, Patties Food Group and Four'N Twenty manufacture six of the top seven selling SKUs in the hot, on-the-go, savoury category in P&C, with the classic Four’N Twenty King Size Sausage Roll 180g being the number one SKU*.

“We largely owe our success to our close working relationship with our retail partners, our development of innovative new flavours the public loves, and our use of engaging consumer promotions to drive sales,” says Surunjpal.

Michael Brick, General Manager at Meris Food Equipment, said the hot food on-the-go offer is a significant opportunity for P&C retailers, with sustained strong growth expected to continue for years to come.

“Sales of food-to-go continues to increase, it has been trending up for the last few years and continues to climb. In general, consumers are spending more on eating out of home, ready to eat foods. Factors of time poor, changing behaviours, more access, and options, changing demographics are all leading to increased spend on food. We are seeing the same impacts in P&C, with increasing sales in this category,” he said.

“We are also seeing more competition, so customers’ expectations and demands continue to increase with things like freshness, range etc. For us in P&C, we need to continually strive to provide increasingly good offers to keep up with these expectations.”

For almost 30 years, Meris Food Equipment has been helping retailers to power up their hot food offering and fuel business profits.

“We are fully aware of the demands and limitations business owners in the P&C sector experience. This is why we offer the most sophisticated food equipment that does all the work for you without the need for cooking skills or a commercial kitchen – just a countertop, power socket and a person to activate it,” said Brick.

“The P&C industry typically are wanting to maximise the exposure to food-to-go sales, but installing traditional kitchens and other impactful measures could challenge their existing business and infrastructure, so the ‘cooking outside of the kitchen’ solution is Meris Food Equipment’s ‘bread and butter’.”

“We constantly work with our P&C partners to connect with our customers, ensure we keep up with changing customer needs, and remain the on-the-go hot snack food of choice for Australians.”

- Anand Surujpal, Chief Marketing and Growth Officer, Patties Food Group

Make your Hot Box Great Kevin Azzopardi, Business Manager at UCB Stores, says that food is the shining light within the P&C channel with continued year-on-year growth. He highlights that fried foods have always been a staple within the channel, and as such, UCB Stores has launched a ‘Make your Hot Box Great Again’ campaign, to help lift quality and awareness across their network of stores.

“We want to bring focus back onto the Hot Box, improving awareness, display, and quality of product,” says Azzopardi.

“Fresh does not necessarily mean just healthy or salad. It’s more about good value and quality, presented and enjoyed like it has just been cooked. Snacking remains a strong food mission driver, so having delightful, hot snacks such as Wing Dings, Dim Sims and Potato Cake/Scallops is a mission solver and margin builder,” he explains.

Like in every retail environment, everyone's disposable dollar is more important than ever.

Shoppers are happy to spend but are demanding more in quality and value, so Azzopardi offers the following advice on how P&C retailers can improve their food strategy.

“Food is a hard category to win, it takes a lot of time, effort, and energy. We need to remove the mindset that food is just one more contributor to the bottom line, and instead treat it as its own profit centre,” he says. “We need to think that we are now café owners, and the food we sell is all we have to feed to our family.” →

His advice is to keep your offer simple and uncomplicated, with high quality and fresh products tailored to your customer demographic.

“Give your customers the best food experience they can have, in a way that is operationally sensible for you. Look at your food display from your customers’ eyes and don’t be afraid to sample some of your food. Always ask yourself, if you wouldn’t eat it, what makes you think anyone else would?”

Always innovating

Four'N Twenty might already be the market leader in hot, on-the-go snacks in the P&C channel, but there are still plenty of opportunities for growth and innovation.

“Last year, we released the Four'N Twenty Traveller Hi-Protein pie in response to the ‘better for you’ products desired by convenience sector customers. This protein-packed pie boasts a four-health-star rating and delivers 25 per cent more protein than the traditional Four'N Twenty Traveller Meat Pie. It has proven extremely popular with the more healthconscious customers still looking for a delicious snack in the P&C channel,” says Surunjpal.

In terms of scaling presence within the P&C channel, Patties says that the most important thing a brand can do is to ensure its designated shelves are fully stocked with products that customers want at the time they want them.

“For Four'N Twenty, we work with retailers to ensure our pie warmers are continuously filled, and no shelf is left bare. We want customers to feel confident that they can walk in-store and consistently pick up the product they want.

“A major challenge across the industry is the costof-living pressure. Customers will increasingly be turning to the products they know and the brands, and retailers they trust for affordable snack and meal options. We strive to ensure our products remain the same delicious, quality our customers expect at a price point that doesn’t break the bank.”

“Food costs continue to increase, so the cost of food waste continues to be a concern for operators, better ways to manage this is important, without reducing what is on display because this will reduce your sales.”

- Michael Brick, General Manager, Meris Food Equipment

Brick agrees that the rising cost-of-living is having an impact on consumer behaviour, so he offers this advice to retailers.

“Food costs continue to increase, so the cost of food waste continues to be a concern for operators, better ways to manage this is important, without reducing what is on display because this will reduce your sales. Better display cases with proven technology for increasing shelf life, better packaging solutions, looking at how food is heated and cooked to increase shelf life, choice of food types themselves that lend to longer shelf life all will help build sales without compromising the offer to customers.

“Very often we think that expanded hot food is meeting customer demand for meals, but there will still be a large percentage of sales that are impulse generated. So, positioning the hot food next to the point of sale will go a long way to entice customers into purchasing a cheeky dim sim or chicken strip as a snack between meals.

“And finally, stack them high – a full hot food display goes a long way to building sales through setting increasing customer perception of the freshness and their confidence in your food. Manage your times, food types, planograms to minimise waste, but never compromise on the food on display.”

According to AACS’ Foukkare, providing a strong food and beverage offering needs to be front and centre of the minds of all P&C retailers.

“Convenience stores have been heavily focused on developing their food and beverage offers, providing a broader range of options beyond traditional snacks,” he says. “We are blessed in Australia with some exceptional retailers that continue to push the boundaries and deliver on their customers’ expectations.” ■

*Data sourced from Circana MarketEdge MAT 25/02/2024 based on data definitions provided by Patties Food Group.

Advice for retailers

Kevin Azzopardi from UCB Stores offers the following advice for retailers when deciding what hot food to range in-store:

• Think about quality over price when placing your order.

• Know your customer and understand what they would want to eat.

• Understand your daypart menu.

• Ensure your products are cooked at the right time to ensure that are at their best when eaten.

• Understand how to do all of this safely.

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choice

Martay – not just an energy drink

Introducing our C&I Choice for this issue – Martay, a carbonated beverage breaking into an untapped hybrid market; a healthy energy drink/functional beverage. Similar to a kombucha or a natural sparkling tea in flavour and ingredients, there is one crucial difference – Yerba Mate (pronounced Yer-ba Mar-tay).

Yerba Mate is a plant found in South America that provides a natural source of caffeine which gives consumers a longer-lasting lift in energy (without all the artificial stimulants) – not to mention numerous health benefits.

The Yerba Mate RTD beverage market has experienced significant growth in Europe and the United States. Its success stems from its convenience, ability to deliver sustained energy, and associated health benefits.

Martay was originally developed to give employees in a Tech company access to a healthy energy drink. The company felt that other ‘better for you’ drinks weren’t quite cutting it for mental focus and health benefits. Demand became so intense that it was decided to bring the product to market.

The goal is simple – give consumers a healthy energy boost in one convenient 330ml can!

Two mouth-watering flavours are available in Original – an earthy flavour with a floral zing, and Tropical – a refreshing flavour combo of Kensington mango and popping passionfruit.

To stock Martay, contact hello@yerbamartay.com.

A hole lot of fun with Thins Onion Rings

Thins Onion Rings are the new crispy, irresistible chips that are a must-have for your convenience snack shelf.

These delectable ring-shaped snacks are light and crispy with a whole lot of fun packed into every bite. They're also completely gluten-free, so everyone can enjoy them guilt-free.

With Thins Onion Rings, your customers will be spoiled for choice with a range of irresistible flavours.

Original Roast Onion: A timeless classic that'll have your customers coming back for more with its rich, roasted onion goodness.

Sour Cream and Chives: Creamy, tangy, and oh-so-satisfying, this flavour combo is sure to be a hit with snack enthusiasts everywhere.

Hot and Spicy: For those who like a little kick, the Hot and Spicy variety will ignite their taste buds and keep them coming back for another fiery fix.

Don't miss out on the opportunity to delight customers with Thins Onion Rings and let them experience flavour-packed, gluten-free goodness like never before. Get ready to snack happy with Thins.

Whether lounging at home, on the go, or need a quick snack fix, Thins Onion Rings are conveniently available nationwide. Find them across petrol and convenience outlets, independents, and Coles and Woolworths.

Maxibon brings back fan favourite flavour

After eight years off the shelf, Peters has brought back the muchloved cult flavour, Maxibon Peanut Jams with Butter.

A spinoff from the original flavour, Maxibon Peanut Jams with Butter features peanut butter with crushed peanuts, and peanut butter flavoured slab followed by raspberry jam syrup notes throughout, sandwiched between two chocolate biccies on one end and dipped in chocolate on the other with more crushed peanuts.

Setphanie Chosich, Brand Manager at Maxibon, said they’re really proud of Maxibon Peanut Jams with Butter, and there are a few people on the team who are already speculating whether this could be Maxibon’s most delicious creation yet.

“We are so excited about sharing our revamped creation with Maxibon fans across Australia.  We’ve had more requests to bring this flavour back than any other, so at a time when sandwich delis and ice cream sandwiches are buzzing across Australia, the timing felt right.”

Peters said it’s no surprise that Maxibon fans have been messaging the brand demanding the re-release of this particular flavour.

Maxibon Peanut Jams with Butter is available in single serves and 4-packs now at independent grocery stores, petrol and convenience stores, Woolworths, and from 8 April, Coles.

Sweet teen convenience from Fini

Fini has a range of insanely delicious, sweet snacks! These colourful, one-of-a-kind snacks have teens all over Australia seeking them out to satisfy their hunger and sweet cravings.

The Jumbo Tornado Bar is a soft rainbow candy bar, that is sour on the outside and creamy on the inside. A Jumbo size for a Jumbo appetite!

The Fini Giant XXL Rainbow Twist is big enough to share... If you dare! Delicious, swirly twists of rainbow, colourful and so fun!

Fini's Crazy Roller is a super fun, super fizzy rolled-up belt in Rainbow flavour – enough to share with friends or keep them all for yourself!

All of these products are made from the highest quality ingredients from the number one candymaker in Spain, Fini!

It’s Fun, It’s Fini!

Available at The Distributors. 1800 989 022. www.the-distributors.com.au.

Time to shake things up with Australia's #1 weight loss brand*

In 2014, NRL legend, Adam MacDougall, launched The Man Shake in response to Australia's obesity challenge, due to his friend's untimely and tragic death. This high-protein, low-sugar meal replacement shake is specifically formulated for men and has supported Aussie men's health for a decade.

From its success, The Lady Shake followed, offering busy women a convenient, nutritious solution for weight loss and improved health. More than just shakes, this movement is sparking daily health transformations. With over one million Australians on

board, the journey of innovation and health empowerment is just beginning. Join in this revolution and shake things up together!

Step up your health game with Australia’s number one choice in weight loss, now available in convenient grab and go formats of bars, sachets and RTDs. Over a million Aussies have transformed their lives, and now you can help more do the same.

*Source: CIRCANA – MAT 06/02/24, DIET SEGMENT, AU GROCERY/ PHARMACY SCAN. #1 WEIGHT LOSS BRAND = THE MAN SHAKE AND THE LADY SHAKE COMBINED RSV.

Violet Crumble reveals fresh new mint flavour

Violet Crumble has released a minty-fresh new take on the original, with the brand-new Violet Crumble Mint Cubes hitting the shelves.

The latest in a long line of innovative flavour reinventions from Violet Crumble, including Raspberry Twist, Dark Choc and Caramel, the Mint Cubes offer a deliciously cool, mouth-watering take on the honeycomb confectionery classic.

The Violet Crumble Mint Cubes feature shattering honeycomb enrobed in silky milk choc and pack a refreshing burst of mint. The choccovered morsels are the ideal snack for a postmeal refreshment or just as a cooling sweet treat on a hot summer’s day.

Phil Sims, CEO of Menz, said fans of Violet Crumble love to be surprised with new flavour combos they don’t expect, and they suspect Violet Crumble Mint Cubes will be a hit with fans, who may even like it more than the original.

“Our new Violet Crumble Mint Cubes marry two iconic flavour duos of choc mint and choc honeycomb into one delectable treat, the perfect pick-me-up to share with family and friends.”

Violet Crumble Mint Cubes are available now for RRP $5.

Taking cola to a new LeVeL

Set your tastebuds abuzz with the intriguing flavour of LeVeL Lemonade and Cola. This unique blend of the familiar bold flavour of cola with the zesty tang of lemonade creates an irresistible drink.

While there may be other cola variants on the shelf, what sets LeVeL Lemonade and Cola apart is its functional benefits, with each bottle carrying 160mg of Magnesium, 40mg of Vitamin C, all while being 97.5 per cent sugar free and containing only 34 calories.

Chrish Graebner, Founder of LeVeL, said that in his native Germany cola mix is actually its own segment.

“For historic reasons of post-war scarcity, Germans grew up mixing the (then expensive) Coca-Cola with the not

An artful fusion of flavours by Yours Truly

Experience an exquisite blend of flavours with Chocolate Generations (CG) from Yours Truly, who have taken immense pride in crafting a variety of artisan chocolate blocks designed to elevate the chocolate journey.

Beginning with premium, velvety chocolate, it is then expertly combined with an exclusive flavoured crumb, resulting in a harmonious fusion of tastes. A final touch of dried fruits and nuts adds a delightful crunch to each bite. With a commitment to inclusivity, all creations are gluten-free and vegan-friendly (dark chocolate only), reflecting a dedication to catering to diverse preferences.

What sets CG apart is its minimalist presentation, which highlights the inherent beauty of the products. Priced at just $8.95 (RRP), this indulgence is meant to be savoured.

For a comprehensive exploration of the range, reach out to Tony Tantis at Yours Truly Chocolates: tony@yourstrulychocolates.com.au. Unleash chocolate passions with Chocolate Generations!

so dear local Lemonade (such as Fanta) to somewhat stretch the excitement of that (mostly rare) usage occasion.

“Over time this turned into ready to drink offers of such Cola-Mixes which proved very popular with consumers. I always wanted to bring that ‘Cola-Mix’ to Australia! LeVeL Lemonade and Cola is just that. I’m sure people in Australia will love it – we just need to be persistent in making consumers try it!”

Previously only available in a bottle, LeVeL Lemonade and Cola is now available in a sleek, eye-catching can that Chrish hopes will appeal to the taste and packaging preferences of the mainstream cola drinker.

To find out how to stock LeVeL Lemonade and Cola visit www.level-lemonade.com

Twisties launches new spicy ramen flavour

Twisties is heating up the snack aisle like never before with the upcoming release of its Spicy Ramen flavour – the spiciest Twistie ever made.

Twisties Spicy Ramen is true to its name, offering a complex delivery of spice – using red chilli, ginger and black pepper, delivering a delicious heat that spice-lovers crave. The flavour is rich and smooth and is balanced with the all-important umami twist – all brought to you on the famous Twistie base.

It will be exclusively available in 7-Eleven stores from 2 April, at RRP from $2.70, before hitting the shelves at Ampol, BP, Coles Express (Viva), Woolworths, Coles, IGA, and selected independent retailers from 2 May.

Rev up your food sales with Meris

When it comes to merchandising your hot food, having the right food display can make all the difference in attracting customers and maximising sales.

MERIS OFFERS A wide range of hot food displays to meet every business need and budget.

For operators seeking a countertop, assistedserve display, the Unis range ticks all the boxes.

With Unis you can trust that your food will stay fresher for longer, ensuring satisfied customers and minimal waste. Temperaturecontrolled, the humidified cabinets provide the optimal environment for displaying a wide variety of hot foods.

Featuring a multi-tiered design, operators can display and store more menu options without taking up excessive bench space. This means you can cater to your diverse customer preferences whilst boosting your food sales.

If you’re looking to offer self-service, the award winning Flexeserve Zone is the solution for you.

Powered by patented air recirculation technology, the Flexeserve uses convection heat instead of outdated contact heat. This offers a much gentler heat that preserves the quality and texture of the food, prolonging shelf life and radically reducing wastage.

Each shelf can be set to a different temperature which allows the operator to hot hold different types of foods at their optimal temperature. If a shelf is not being used, it can be simply switched off, reducing energy consumption.

Flexeserve offer a range of models, from countertop units to free-standing displays available in three, four and five tier shelves, with three different widths to choose from.

Meris understands that it takes more than great equipment to offer great food. That’s why they offer a number of consultation services including menu development, packaging and merchandising advice, staff training and process development. The in-house development Chef and expert team can assist with developing a menu tailored to your clientele and unique operation. As well as ongoing support to implement a successful and sustainable food offer.

Ready to rev up your sales? Contact Meris today on 1800 265 771 or visit meris.com.au

“Meris understands that it takes more than great equipment to offer great food. That’s why they offer a number of consultation services including menu development, packaging and merchandising advice, staff training and process development.”

Dare launches new Dairy-Free range

Dare Iced Coffee, the nation’s favourite iced coffee brand¹, proudly introduces a new dairy free range to its lineup of market leading iced coffee beverages.

Whether your customer is looking to reduce their dairy intake, or stick to a plant-based lifestyle, Dare’s new dairy free range has got them covered.

Launching in favourites from Dare’s original dairy range, Double Espresso and Mocha, Dare Dairy Free is crafted with a commitment to its trusted blend of Rainforest Alliance certified Robusta and Arabica coffee. Oat milk has soared in popularity over the past few years. It is the fastestgrowing plant-based milk², given its creamy characteristics that perfectly complement coffee.

Dare Dairy Free is the latest expansion in Dare’s portfolio which has seen strong growth momentum in better-for-you offers alongside No Sugar Added and Lactose Free. With 38 per cent of households now buying Non Dairy³, Dare is committed to developing innovative options to meet evolving consumer tastes and preferences.

Dare Dairy Free Double Espresso and Mocha will be available nationally from 15th of April in a 400mL bottle.

1 Circana, Australian Convenience Scan, Dollars Share of Total Iced Coffee, MAT 25/02/2024

2 Café Pulse, Australian Café Market Pulse report, What shapes our industry, 2021

3 Circana, IHP National Panel, % of Households that bought Non Dairy, Year 2023

Pringles unveils two new limited-edition flavours

Pringles has launched two new limited-edition BBQ-themed flavours – Korean BBQ and South American BBQ.

The snacks, which were co-created with a Michelin Star Chef, are the result of the experimentation of over 80 different types of barbeque flavours from across the world.

Dan Bitti, Head of Pringles at Kellanova in Australia and New Zealand, said he was excited to introduce the new range.

“Aussies and Kiwis are inspired by world travel and the best of international food experiences, and we’ve scoured the world to bring Pringles fans and chip lovers the best of international barbeque flavours. Pringles’ exiting new ‘Limited Edition’ range, Korean BBQ and South American Flame Grilled BBQ, really bring the authentic sensorial tastes like the charred, smoky barbeque flavours to each of the new variants you must try to believe.”

The Korean BBQ flavour features a fusion of sweet and smokey flavours enhanced with spices, while the South American BBQ is bursting with spices featuring a mix of paprika, cumin, and garlic inspired by the Chilean grilled steak.

To celebrate the launch of the two new limited-edition BBQ-themed flavours, Pringles is giving all BBQ enthusiasts a chance to win one of 80 Weber Q premium BBQs with any two purchases of Pringles regular-sized cans (118g or 134g).

The new BBQ Pringles range is available now nationally at independent grocers, Coles, and Woolworths for RRP $5.50.

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Best sellers for pawfect sales

Australian Shoppers are looking for more convenient shopping experiences, more now than ever before. Data shows that 43 per cent of shoppers prefer a quick service experience compared to a full shop experience. Do you have the right offer, do you have room to grow and develop the category, and are you on the grocery growth bandwagon? You may not have thought of pet, but pet is one of the fastest growing categories in AU grocery, trending ahead of many other categories in shopper loyalty, repeat shop, and impulse purchase.

Purina brands Supercoat and Friskies are Proudly made in Australia in its Blayney NSW factory. These brands are well known amongst Aussie shoppers, boasting leading market shares in the key categories of Dry Dog and Dry Cat. YTD growth in P&C, pet is growing at 47 per cent, led by these two amazing leading Australian brands.

Now might be the time for you to look at your offer, expand into emerging categories, such as pet, driving growth across your store outside of traditional categories. If you’re interested in knowing more about the Pet Category, what’s driving it, what the ‘customer’ offer looks like, and how a solution can be tailored for your business, including promotional offers with the wholesalers or standardised POGs, please give Anthony from Purina a call on 0437858598.

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The forces defining consumer and retailer dynamics in 2024

How retailers can stay competitive in an ever-changing retail landscape.

Words Jason Joukhador, GM Merchandise and Dealer Channel, Ampol

“Those who focus on value, commit to understanding and meeting consumer needs will not only survive but thrive.”

– Jason Joukhador

IN AN ERA where economic landscapes are as volatile as the weather, the year 2024 stands as a year of significant transformation. How will the economic pressures sculpture spending habits? What strategic responses are required for retailers to stay competitive?

Context

Not surprising, the primary force behind the shift in consumer spending is the rise in the cost of living. Inflation has not only made essentials more expensive but has also eroded the purchasing power of most consumers. This economic strain has led to a more discerning approach to spending, with a marked preference for value over luxury and immediacy.

Another significant factor is the uncertainty in the job market. While some sectors experience growth, others face layoffs and downsizing, contributing to a cautious spending ethos among consumers. The psychological impact of this uncertainty cannot be underestimated, as it influences not just how much consumers spend, but also where and on what they choose to spend their money on.

Consumer behaviour trends

In response to these economic pressures, consumers are increasingly prioritising essential goods and services, often at the expense of discretionary spending. There's a noticeable shift towards value-based purchasing, with consumers seeking out the best deals and discounts. This trend has revitalised the importance of Key Value Items (KVI) pricing, where retailers highlight competitively priced key lines as good value to customers.

Moreover, the digital age has empowered consumers with the tools to make more informed decisions. Price comparison websites, customer reviews, and social media recommendations play a pivotal role in shaping purchasing behaviour.

Consumers are not just looking for the best price; they're seeking the best value, which encompasses quality, on trend and often ethical considerations.

Strategic response by retailers

To navigate these challenging times, retailers must adopt a multifaceted strategy. Understanding the competitive landscape is crucial. Competitors' pricing strategies can offer insights into market expectations and consumer tolerance levels. Retailers should monitor these closely to adjust their pricing strategies accordingly, ensuring they remain competitive without compromising on quality.

The role of KVI pricing has never been more critical. This approach requires a deep understanding of which items consumers perceive as essential and valuable, necessitating the use of advanced data analytics and consumer insights.

Furthermore, the use of data and insights goes beyond pricing strategies. It's about understanding consumer behaviour at a granular level – what drives them, what concerns them, and how they interact with brands online and offline. This information can inform personalised marketing strategies, product development, and customer experience enhancements.

Hardly a revelation that the economic pressures of 2024 have shaped consumer behaviour, steering it towards a more value-conscious and informed direction. It’s what action a retailer takes to respond to these shifts with strategic pricing that matters. Those who focus on value, commit to understanding and meeting consumer needs will not only survive but thrive. The key lies in leveraging data and insights to stay ahead of trends, anticipate consumer needs, and adapt swiftly to the ever-changing economic landscape. This proactive approach will ensure retailers remain relevant and competitive in a market that demands both resilience and innovation.

Are you ready to take action? ■

The expansion of the grocery aisle in petrol and convenience

A lucrative opportunity has presented itself to suppliers aiming to secure ranging and capitalise on shifting consumer behaviours.

Words Jade Burnett, Sales Team, Consult Group

“As an FMCG specialist, my thoughts are that it’s not just about supplying great products. It’s about understanding consumer preferences and adapting swiftly to meet their needs.”

– Jade Burnett

IT’S NO LONGER about consumers running out of a grocery item and popping down to their ‘local servo’. It’s about suppliers capitalising on a consumer with a wider purchase decision making process in a convenient store format. In my eyes, it’s the ultimate inception point.

As an FMCG specialist, my thoughts are that it’s not just about supplying great products. It’s about understanding consumer preferences and adapting swiftly to meet their needs. You need to innovate, differentiate, and deliver value to drive success in the exciting world of petrol and convenience.

The expansion of grocery offerings in petrol and convenience presents a lucrative opportunity for suppliers aiming to secure ranging and capitalise on shifting consumer behaviours. As P&C retailers strive to boost non-fuel earnings to over 50 per cent of their total revenue, understanding and catering to consumer preference and behaviour is paramount for suppliers looking to thrive in this market.

Understanding the product landscape is essential

Value and Convenience: Consumers are increasingly prioritising convenience and affordability, whether it’s for their morning coffee, on-the-go lunches, or quick snacks. Meal solutions catering to busy lifestyles such as easy lunch or dinner alternatives are gaining traction.

Emphasis on Healthier Choices: Industry data confirms consumers’ heightened awareness of the nutritional content of their food is leading them to make conscious efforts to choose healthier options with offerings such as grain-based snacks and protein snacks, which are the top two segments in health snack food. Products that are suitable for various dietary requirements/ preferences are also increasing in demand.

Customer offer leaders OTR stand out with their extensive jerky range, featuring brands like Byron Beef Jerky, known for high protein and gluten free options. Suppliers will benefit by aligning with the growing demand for healthier options and look to see if they can update their recipes or launch new products that align with dietary needs – gluten free, dairy free etc.

Exclusive Ranges and Flavours: Like the wellknown Slurpee offering at 7 Eleven, exclusive ranges or flavours can drive customer excitement and loyalty, setting retailers apart from their competitors. Suppliers can take advantage of this by offering new and innovative products exclusively to a specific retailer for an agreed period of time.

Strategies for Success

Drive Customer Loyalty Through Value: Offering value meal combinations and enticing promotions such as fuel or coffee plus offers can attract customers seeking affordability and convenience in their purchases.

Innovate and Differentiate: Suppliers should focus on innovation to stand out in a crowded market, offering unique products and experiences that resonate with consumers.

Promotion and Placement: Strategically executing promotions that highlight convenience and value, such as bundle deals like ‘2 for $7.50’ on milk and bread or ‘$1 coffee with every fuel purchase’ can drive sales and customer uptake. For suppliers, seizing the opportunity presented by the expansion of grocery offerings in P&C will be paramount. By understanding consumer preferences, providing innovative product offerings, driving customer loyalty through value, and forging strategic partnerships with retailers, suppliers can continue to thrive in this market. ■

C Differently with UCB!

“The world will always continue to eat, sleep, breathe, and be mobile. That’s pretty much a constant and positions you all in a business with a very strong foundation.”

– Darren Park, CEO, UCB

The UCB 2024 National Member Conference was held at the Royal Pines Resort on the Gold Coast, and the industry was out in force.

L-R: Daniel Bone, Corrine Barclay, Anna Mcloughlin, John Harvey, Wesley Fairlie, and Nicola Richardson

The Bowser Bean Cafe team

The wine tasting activity

Morning tea at the UCB Conference

Darren Park, CEO of UCB

Day One

The conference, which ran from 5-7 March and had the theme ‘C Differently’, featured an impressive array of speakers providing interesting insights, as well as a number of activities and dinners offering opportunities for attendees to network, mingle, and catch up.

Tuesday evening commenced with a welcome and introduction from Darren Park, CEO of UCB, who gave a brief overview of what the days ahead will hold.

Wesley Fairlie, Category and Channel Strategy Manager at Asahi, then took the stage to discuss how retailers can maximise their drink sales through targeting shopper top-up missions and optimising promotions and value offers.

Brett Barclay, Director at Convenience Measures Australia (CMA), gave attendees a quick review of the soon-to-be released State of the Industry report, providing a general overview of how the P&C channel has performed over the course of 2023.

Bradley Shaw, Manager of External Affairs and Communications at Philip Morris International, then spoke about the challenges facing the industry in the tobacco sector with a rise in illicit tobacco and vape sales. Shaw discussed ways in which retailers can assist in minimising the impact of these unscrupulous retailers.

Dr Nici Sweaney, founder of AI Her Way, spoke of the impact that artificial intelligence is having on the industry, both the positives and negatives. Dr Sweaney discussed how retailers and suppliers can avoid falling victim to AI scams and tricks, as well as how best to harness the new technologies.

The session ended with an interesting chat between two cricket legends, Sir Ian Botham and Greg Ritchie. The pair discussed on-field antics and highlights from their careers, as well as Sir Botham’s impressive charity work in the field of childhood leukemia, in which he has raised millions of dollars.

After an insightful evening of speakers, the trade show got under way, enabling retailers and suppliers to connect and discuss current and future business and collaboration opportunities.

Day Two

The second day of the conference kicked off with the handing over of a $106,000 cheque to Rural Aid, a total raised by UCB members, that will support farmers affected by natural disasters through financial, wellbeing, and fodder assistance.

Anna Mcloughlin, Head of Digital at Coca-Cola EuroPacific Partners (CCEP), discussed how retailers can best utilise on-demand delivery services in Australia, as well as which demographics are most likely to use the service and how to cater to them. →

Sir Ian Botham (L) presenting the 'nearest the pin' cheque

“Remember, it’s not about being cheap, or the cheapest. That’s not what it’s all about. It’s about the consumer looking and saying this is value. This feeds their emotions. Everybody likes value.”

- Darren Park, CEO, UCB

John Harvey, Head of Customer Category at CCEP, then took the stage to give an in-depth look at data that CCEP is using to help retailers provide the best and most profitable shopping experience. These included surveys as well as impressive eye-tracking data that gave a unique insight into how the layout of a store can affect the way customers shop.

Daniel Bone, Industry Insights Director at Circana, gave attendees a broader look at trends, insights, and the mindsets of Australian shoppers and how that is influencing Australian retail as a whole.

These three speakers were then joined on stage by Corinne Barclay, Director at CMA, and Wesley Fairlie, for a panel discussion hosted by Nicola Richardson, General Manager of Retail, eComm, and Brand Partnerships at Asahi Beverages.

The panel delved into the importance of harnessing data and sharing it with the appropriate parties to assist retailers in providing the best experience for their customers. Despite being competitors off stage, the Asahi and CCEP representatives both agreed on the importance of the role that data will play now and in the future.

The panel concluded Wednesday’s business sessions and attendees then went to on to partake in one of the day’s six activities before meeting back at the Royal Pines’ pool for a CCEP sponsored ‘Full Moon’ dinner.

Day Three

The third day of the UCB conference commenced with Darren Park delivering an address that discussed the changing nature of the petrol and convenience industry with the introduction of new technologies such as electric vehicles and the progression of hydrogen.

Park spoke about the retail strategies that UCB is helping members implement, such as in-store promotions and data utilisation, to increase not only their profits but their standing within their communities.

“The world will always continue to eat, sleep, breathe, and be mobile. That’s pretty much a constant and positions you all in a business with a very strong foundation.

“Remember, it’s not about being cheap, or the cheapest. That’s not what it’s all about. It’s about the consumer looking and saying this is value. This feeds their emotions. Everybody likes value,” said Park.

Peter Costello AC, former Australian Treasurer

Thomas Ennis

Park addressing the crowd at the 'Back to the 80s' themed gala dinner

Preparing drinks at the after party

UCB 2024 Supplier Award Winners

Carbonated Soft Drinks & Sports Drinks Category*

Coca-Cola Europacific Partners (Powerade + Carbonated Soft Drinks)

Carbonated Soft Drinks & Sports Drinks Category*

Asahi Lifestyle Beverages (Gatorade + Carbonated Soft Drinks)

Energy Drinks Category

Frucor Suntory (V & Rockstar)

Functional Drinks & Water Category

Coca-Cola Europacific Partners (Mt Franklin, Pump, Powerade Active)

Confectionery Category

Mondelez International (Cadbury)

Snacking Category

Pepsico (Smith’s Snackfoods – Twisties, Doritos, Red Rock Deli)

Food Manufacturer

Mrs Mac’s

Flavoured Milk / Iced Coffee Category

Bega Dairy & Drinks (Dare, Big M, Farmers Union, Dairy Farmers Classic)

General Merchandise Category

Pacific Optics

Tobacco Category

Philip Morris Limited

Communications Category

Telstra – Sim Connect

Wholesaler/ Distributor

The Distributors

New Product of the Year*

Bega – Dare 500ml Intense Espresso

New Product of the Year*

Coca-Cola Europacifïc Partners – Mother 500ml

Rainbow Sherbet

Overall Trade Stand of The Year

Bega Dairy & Drinks

Trade Partner Representative of the Year

Scott Hadzig – Coca-Cola Europacific Partners

Overall Trade Partner of the Year

Coca-Cola Europacifïc Partners (CCEP)

*The Carbonated Soft Drinks & Sports Drinks and New Product of the Year categories were tied.

Thomas Ennis, an Irish retailer with an array of impressive SPAR stores, discussed the tools he uses at his stores and best practices in the convenience sector. Ennis discussed how he managed to open a pop-up store in just 13 days, using innovative thinking and methods.

Next up was Michael Crossland, an inspirational speaker who, despite encountering numerous health setbacks in his life, managed to pave out an incredibly successful professional career and an inspiring life. Crossland’s perspective on life and the engaging way in which he spoke hardly left a dry eye in the room.

Todd Sampson, creator and star of documentaries such as Body Hack and Redesign My Brain, discussed his research into the human brain and the amazing things that, no matter your age, you can still do and train your brain to do.

Finally, Peter Costello AC, former Australian Treasurer, took the stage once again at a UCB conference, to examine the current economic climate, revisit the predictions he made in 2022, and deliver an insightful and engaging speech about what retailers and the business world can expect in the year to come.

Following the business sessions, it was back to the trade show for a few hours, where retailers got some quality faceto-face time with suppliers and secured last-minute deals and bargains.

Finally, the whole event wrapped up with an extravagant ‘Back to the 80s’ themed gala dinner, sponsored by Bega, where UCB presented their annual awards and attendees were treated to an 80s extravaganza with sing-alongs and dancers whipping about on roller skates. ■

All revved up for Go-Karts

Post a very informative panel discussion

Drakes acquires IGA Mount Barker and Cellarbrations

DRAKES HAS ANNOUNCED the acquisition of IGA Mount Barker and Mount Barker Cellarbrations for an undisclosed sum.

The addition of the sites brings Drakes’ portfolio to a total of 67 stores, and Mount Barker Cellarbrations becomes the sixth location under the Cellarbrations banner.

Jo Elson, Owner of IGA Mount Barker, said she is very pleased that Drakes Supermarkets, a successful family-owned company in South Australia will be taking over Mount Barker IGA and Cellarbrations.

“I have loved my time in Mount Barker for the past 11 years and are proud of the team we have built and had the pleasure to work with.  I’ve enjoyed being part of and supporting community events and sporting clubs, local suppliers and trades people and creating

local jobs. Most importantly, thank you to the customers and community, who have shopped with me over the years.”

Drakes is promising an enhanced shopping experience to the Mount Barker community, with an expanded product range, and extensive meat selection and quality fresh produce, supplied directly from Drakes Distribution Centre, Edinburgh.

John-Paul Drake, Director of Drakes, hopes they can make Elson proud by continuing to build on her hard work.

“We’re honoured that Jo has entrusted us with her wonderful family business and the team that she’s developed.”

Drakes said it will retain, and continue to work alongside, the existing team members of the Mount Barker stores.

Nestlé makes $32 million investment in Smithtown factory

NESTLÉ WILL INVEST another $32 million in its Smithtown factory, bringing total investments in the site to nearly $80 million over the past decade.

The investment in the factory, which has been operating for over 100 years, will upgrade the Milo manufacturing line, introducing state-of-the-art manufacturing technology to the factory and supporting an increased production capacity.

In 2023, $2.5 million was invested to allow for collaborative productive developments, and in 2014, $40 million was invested to build a production facility for Nescafé coffee mixes.

James Garley, Factory Manager, said they’re committed to investing in continuous improvements and upgrades to the Smithtown factory so they can continue to proudly make iconic brands like Milo there.

“Over the next 12 months, the project will inject an estimated $20 million into the local economy and support almost 200 jobs as we construct a new building to house Milo production.

“It’s a complex project, but the team will work to ensure the facilities continue to deliver the choc-malt crunch of Milo that Australians have loved for generations.”

The upgrade is due to be completed by the end of 2024.

John-Paul Drake, Director of Drakes

The investment will upgrade the Milo manufacturing line

7-Eleven International completes acquisition of 7-Eleven Australia

The $1.71 billion deal is now complete

7-ELEVEN INTERNATIONAL (7IN) has completed the acquisition of 7-Eleven Australia, adding over 750 stores in Australia to its portfolio.

After agreeing to the $1.71 billion deal in November 2023, the deal has now been successfully completed.

The 7-Eleven Australian business will be operated as a wholly owned subsidiary of 7IN, headquartered in Melbourne, with the current management team continuing to lead the business under new ownership.

Ken Wakabayashi, President and CEO of 7IN, said they are thrilled to become one team and create a stronger synergy with 7-Eleven Australia.

“For nearly 50 years, the 7-Eleven Australia team has built the legacy of the brand as a top choice for convenience. Together, we can enhance customer experience in the store.”

The companies have identified opportunities to transform 7-Eleven Australia’s merchandise and fuel offer, expand product assortment, and introduce new high-quality fresh foods.

Angus McKay, CEO and Managing Director of 7-Eleven Australia, said he and his team are looking forward to taking advantage of 7IN’s deep experience in convenience retailing with the leadership of Executive Chairman Shin Abe.

“It is about continuing to grow our store network in Australia and providing unrivalled customer experiences and quality products.”

7-Eleven Australia impressed the 7IN with its focus on its food offering, as the company looks towards offering a world-class retail offering that is centred around food as its ideal group image for 2030.

Energy brand Celsius to launch in Australia and New Zealand

US ENERGY DRINK brand Celsius is set to expand into Australia and New Zealand with Suntory Oceania as its exclusive manufacturing, sales, and distribution partner.

With the total beverage market expected to grow by 4.5 per cent this year across Oceania, and within that, energy drinks are growing between 13-15 per cent, providing Suntory Oceania with the opportunity to strengthen its position in the category.

Darren Fullerton, CEO of Suntory Beverage and Food Oceania, said Celsius is a brand which is breaking new ground and delivering a totally different consumer experience.

“As we build Suntory Oceania, we are delighted to be partnering with Celsius to evolve our portfolio and deliver new growth opportunities for all retail partners.”

John Fieldly, Chairman and CEO

of Celsius Holdings, Inc., said they’re pleased to introduce Celsius energy drinks to consumers in Australia and New Zealand.

“We expect to continue our international growth at a measured pace, targeting strategically important energy drink markets and employing our proven playbook to build a strong and passionate consumer base.”

Celsius previously announced a sales and distribution agreement with Suntory Beverage and Food Great Britain and Ireland and sales in those markets are expected to begin in the second quarter of 2024.

Tony Guilfoyle, Chief Commercial Officer at Celsius Holdings, Inc., said they are excited to launch their strategic plan in Q4 2024 across the retail landscapes of Australia and New Zealand, and look forward to accelerating growth in 2025.

Energy drinks are growing between 13-15 per cent, providing Suntory Oceania with the opportunity to strengthen its position in the category.

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Real-World Test exposes car fuel consumption discrepancies

AUSTRALIA’S REAL-WORLD Testing Program found that five of 13 cars tested reported fuel consumption levels between 9 and 20 per cent higher than their lab results.

The Real-World Testing Program compares vehicles’ fuel consumption and emissions in Australian driving conditions with the laboratory test results reported by car manufacturers.

Of the 13 vehicles tested, seven delivered fuel consumption within 5 per cent of lab test results, while five exceeded their lab test fuel consumption by between 9 and 20 per cent, with the largest variation recorded in the BMW X3, which consumed 20 per cent more fuel in the real-world test than in the laboratory test reported by the manufacturer.

Michael Bradley, Managing Director of the AAA, said Real-World Testing offered consumers and fleet buyers a clear picture of vehicle running costs and environmental performance and would drive down demand for models that over-promised and under-delivered.

“This information could help a new car buyer save hundreds of dollars a year. The program is also helping fleet-owners to better manage their purchasing decisions, budgets, and environmental commitments.”

The MG3, a small car, consumed 19 per cent more fuel on the road than in the laboratory, while the Audi Q5’s fuel consumption exceeded its corresponding lab test by 17 per cent, the Toyota Yaris Cross by 12 per cent, and the Volvo XC40 by 9 per cent.

Viva Energy signs supply deal with V/Line

VIVA ENERGY HAS announced a fuel-supply agreement with V/Line, Victoria’s regional passenger train and coach service operator.

The agreement will see Viva supply V/Line with Shell Diesel Extra into key locations including Southern Cross, Geelong, Footscray, Wyndham Vale, Waurn Ponds, Ballarat, Bendigo, and Shepparton, as well as small-drop deliveries into key regional stations, including Traralgon.

Scott Wyatt, CEO of Viva Energy, said he is delighted that Viva is now a supply partner for V/Line.

“V/Line provides an essential service and Viva Energy is thrilled to contribute to keeping regional Victorians on the move.

“As a frequent train traveller myself, I regularly rely on the V/Line service to commute to our refinery in Geelong and appreciate its importance. It is

gratifying to know that Viva Energy is now playing a vital role in supporting V/Line to connect regional Victorians.”

V’Line, which facilitated over 21 million passenger trips in 2023 on its train and coach services, with five commuter lines and eight long-distance

routes across the state, is one of Australia’s fastest growing rail networks.

Viva is delivering fuel either manufactured by, or imported through, its Geelong Refinery supporting communities, local content, and regional jobs.

The Toyota Yaris Cross fuel consumption exceeded its corresponding lab test by 12 per cent

Developed by retailers and wholesalers, Retail Immersion is an immersive learning program where participants learn, through first-hand experience, how to manage a convenience retail business.

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