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A NEW & PERMANENT ADDITION
$4.2M SPEND New TWIRL Equity Campaign in 2020 Multi-channel including TV, OOH & Social
• CARAMILK has been one of the most in demand chocolate in Australia
• TWIRL has been the fastest growing personality brand over the past 5 years*
• Chocolate bars are one of the most expandable and impulsive categories in the store
TO THE CADBURY BARS PORTFOLIO! *(NIELSEN SCAN MAT TO 01/09/19)
CARAMILK AND THE COLOUR PURPLE ARE TRADE MARKS USED UNDER LICENCE
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26 44 10 FACTIME
Hollie Fox, BP Tugun
14 STORE REVIEW
Ritchie’s Supa IGA Dromana
Reflecting on 30 years and what to expect in this year’s AACS State of the Industry Report
22 CATEGORY FEATURE: KOMBUCHA
The rise and rise of Kombucha and what’s next for the popular drink
26 CATEGORY FEATURE: ENERGY DRINKS
Why Australians still can’t get enough and how it’s a winning beverage for C-stores
30 CATEGORY FEATURE: FLAVOURED MILK Interstate rivalries, indulgent flavours and branded merchandise: why we’re now way beyond vanilla malt
34 PRODUCT NEWS
C&I Choice and all the latest NPD
44 SPECIAL FEATURE: FUTURE TRENDS
What we can expect to see for the industry through 2020 and beyond
48 SPECIAL FEATURE: BUYING GROUPS
The future is now.
s we settle into 2020, it’s a good time to take stock of what’s ahead for the industry and the trends and products that will get us excited this year. In this issue we take you to Tugun on the Gold Coast, where a family run BP store is doing things a little differently, offering a taste of the healthy lifestyle they’ve embraced. Further south, we check out what makes Ritchie’s Supa IGA in Dromana such an industry leader. We also take an in-depth look at the unstoppable rise of kombucha and why it could be just the beginning for pre and probiotic beverages. We look at why flavoured milk consumers are so loyal to their local brands and how NPDs are going way beyond the humble vanilla malt.
Another feature not to miss is our take on the biggest future trends for convenience – including whether alcohol could be a viable option. Caltex’s Skye Jackson highlights the importance of having an omnichannel strategy and the value it can add and UCB’s Darren Park walks us through the role of speed to shelf in driving NPD sales. And last, but far from least, Dan Armes weighs up the merits of hydrogen vs electric cars, we examine the power of buying groups and Imperial Tobacco reflect on their 20-year milestone. Naomi White,
The power of buying groups and what they can provide stores
Darren Park, Skye Jackson
52 INDUSTRY NEWS
Olympian Products and Imperial Tobacco
58 PETROL NEWS
Dan Armes, Caltex, 7-Eleven and more
63 SUPPLY FIND 6 December 2019/January 2020 | C&I | www.c-store.com.au
Safa de Valois
Get a Refreshing Hit!
KitKat launches Honeycomb Smash Thought you couldn’t love KitKat more? Prepare to be delightfully surprised with KitKat Honeycomb Smash. Make your break that little bit sweeter with the flavour bomb of salted honeycomb crisps encased in honeycomb flavoured chocolate. Consumers can choose between a 170g block to share with friends and family (RRP $5, available in major retailers nationwide) or a 65g share bar (RRP $2.50, available in convenience stores).
Get a refreshing hit of Lush Ice in Bidivapor’s Lush Ice watermelon flavoured bidi stick. The vape is created with only pure and natural USA made ingredients and carefully selected delicious flavour profiles to maximise satisfaction. The luxurious choice has a near weightless soft feel that enhances the vaping experience. And features and ultra-convenient and pocket friendly disposable vape, requiring no charing, filling or button pressing, it’s simply puff and go. Other flavours in the range include Berry Blast, Mint Freeze, Classic Tobacco, Jungle Juice and Fruity Mango. Sticks have 1.4ml per stick and a 280 mAH battery. For more details visit www.bidiVapor.co.nz or contact Rik Gandhi at email@example.com or 0423 126 243 or Hem Patel at Hem@bidivapor.com or 0430 280 775.
Mini Chocolate Raspberries a hit
Refresh with LOUX Classic Sodas Adding natural fruit juices to the crystal clear, natural spring water of Kefalovrissos in Greece created the original LOUX range of sodas. Faithful to that quality since 1950, LOUX is one of the best-selling soft drinks in Europe and is now flying off the shelves in Australia! Flavours include Orange, Lemon, Sour Cherry, Gazoza (Soda) and Cola. Available in 250mL recyclable glass bottles. Make sure you stock up now by calling Olympian Products and Distribution on 1800 413 711.
Published by C&I Media Pty Ltd (A division of The Intermedia Group) 41 Bridge Road (PO Box 55) Glebe NSW 2037 Tel: 02 8586 6292 Fax: 02 9660 4419 E: firstname.lastname@example.org
Publisher: C&I Media Pty Ltd Safa de Valois Commercial Director: Safa de Valois Editorial Director: James Wells
Allen’s lollies have hit on a winning combination: taking their beloved raspberry lolly up a level with a coating of smooth chocolate. The new mini, bite-size pieces have no artificial colours or flavours and are 100% gluten free. Nestle’s head of marketing confectionery Joyce Tan said it’s a great new twist on an old favourite. “Allen’s raspberries have been a fan favourite for decades and we are very excited to launch a new chocolate twist on this iconic Allen’s lolly. We are confident that Allen’s Mini Chocolate Raspberries will be a stellar product within our portfolio, taking consumers on a delicious tastebud journey,” she said. “The new range will launch alongside new Milkybar Cookie Bites and KitKat Snak It, making for the biggest chocolate bags launch for Nestle in recent years.” Find them in Woolworths now (RRP $4.50) and Coles and independents by the end of February.
Editor at Large: Keith Berg
Features Editor: Jeremy Gough
Editor: Naomi White
Graphic Designer: Adrian Tipper
Account Manager: Ben Curtis
Contributor: Simon King
DISCLAIMER This publication is published by C&I Media Pty Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by Australian and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials. The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded save for those conditions and warranties which must be implied under the laws of any State of Australia or the provisions of Division 2 of Part V of the Trade Practices Act 1974 and any statutory modification or re-enactment thereof. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. Copyright © 2020 - C&I Media Pty Ltd.
Average Total Distribution: 21,108 AMAA/CAB Publisher Statement Period ending 31 March 2019 PROUD MEMBERS OF:
February/March 2020 | C&I | www.c-store.com.au 7
AUGUST 2020 Melbourne Convention & Exhibition Centre C&I Expo brings retailers and suppliers together over two big days of business. The retailer audience consists of owners and operators of convenience stores, service stations, independent supermarkets, corner stores, newsagents, mini marts and foodservice stores that have a convenience offer. Suppliers and wholesalers are also more than welcome to exhibit and attend. Visitors experience the latest in convenience products, services and merchandising.
For more information visit www.candiexpo.com.au
SAVE THE DATES For Australiaâ€™s largest and most important trade event for Convenience retailers
Media pty. LTd.
ORGANISED BY: Interpoint Events Pty Ltd in conjunction with C&I Media Pty Ltd and the Australasian Association of Convenience Stores 41 Bridge Road Glebe NSW 2037 Ph: 1300 789 845 | Fax: 02 9660 4419 Email: email@example.com www.c-store.com.au
FAMILY FIRST IN TUGUN
Hollie Fox, 23, is still serving the same customers she sold milk and bread to as a child while helping out at her family’s BP in Tugun on the Gold Coast – but these days she is selling them very different products. The BP retail store in Tugun
10 February/March 2020 | C&I | www.c-store.com.au
y dad has been with BP for about 33 years. He started with another site about five minutes down the road, but we’ve had Tugun (soon to be rebranded as The Fox’s Pantry) since 2000 and it’s our little baby. At 17, I still had no idea what I wanted to do – surely no one really does! After school I just wanted to move to the other side of the world, travel and work. I met some amazing people and settled in Fleet, Hampshire where I managed a Millets store. I loved every minute of it. I experienced so many different cultures and visited many service stations, so when I moved back two years ago, I was more than ready to help with the renovations. That’s when I came on board and began doing the ‘new servo’ thing and offering new products and health foods. The store stocks a large range of health foods, as well as gluten free and vegan products, which came about because that’s what we eat at home. Dad (Richard Fox) has always wanted to eat what he sells and these are the products we have in our pantries. When I suggested the idea, I don’t think it was even a question for dad, he just said ‘Let’s do it’. My younger sister Cassidy (21) has an intellectual impairment and epilepsy, so while she doesn’t work in the family business, she is a big part of it. Our eating habits and the inspiration behind the health foods in our store comes from her.
FACE TIME FEATURE Mum (Lyness Fox) has spent 21 years researching ways to help her condition through healthy foods and other modalities. Mum and dad worked incredibly hard so we could have the life we live today. We are very proud and fortunate kids. Now it’s time to step back dad… hint hint! I didn’t have or want a normal lunch box growing up. Mum packed homemade veggie sushi, leftover stews and vegetables. And when I helped dad in the coffee shop before school I’d run across the road to the fruit shop and grab a capsicum to eat as an apple, fresh coconut, carrots and hummus. I’d pig out occasionally on chocolate and sweets but most of my friends wanted to eat the food I ate instead of the other way around. I always appreciated healthy eating and had a strong passion for learning about food and health. We initially started with coconut oils, but through customer feedback we’ve expanded the range and it just keeps growing. We get positive feedback from people every day, it’s quite rewarding. Because mum has always done things holistically I came into this with a good understanding of health products. And there’s such a big calling for health food on the Gold Coast, it’s the right area for it. People say ‘customers just want sausage rolls and pies’, and yes they might, but times have changed and they want healthier products as well.
Their muffins are made from scratch and baked in store daily
The store has a wide selection of better-for-you products
A selection of the health-focused products sold at the store
Customers love being able to pick up granola or ghee from the service station. There’s been a lot of trial and error. Dad’s motto is try it, and if it doesn’t work, move on. He’s pretty lenient about trying new things. We work quite well together. I’m the store manager and dad’s the overseer. If I want to change something, I sometimes go to him for approval, sometimes I just do it! We do clash, but I know he means well and we meet in the middle to decide what we’re going to do. He’s constantly wanting to innovate and do more and I’m all for trying to do that, but I try to do it step by step. We go on study tours together and travel together, we do get along well. He’s always been hands-on. He’s always behind the counter and making coffee, he’s right in there – that’s probably why we clash! I really love what I’m doing, but when I was younger I didn’t know that I wanted to work for the family business. I was a kid when we bought Tugun and I started behind the counter serving customers with dad and I remember always wanting to be at work. It’s quite nice because so many of the customers I have today, I knew then. It’s great they’ve been so loyal to us for all that time. We have barista made coffee using a local company’s beans, we have vegan smoothies and make muffins daily from scratch and make salads and sandwiches in store. Our fridge section is also popular with ready to go meals and specialty pizzas. We still have snacks and confectionery, but it’s a smaller part of the shop now. And we have pies and sausage rolls from a local baker who bakes from scratch with slow cooked meats. There are no frozen pies. It’s a very full on job but I do manage to get some downtime. I try to get away and travel and look at new stores to keep the travel bug at bay – I don’t think I’ll ever get rid of that! It’s been very rewarding and I’m excited to see where 2020 will take us. C&I
Many of the customers I have today, I knew as a kid. It’s great they’ve been so loyal to us for all that time.” - Hollie Fox
February/March 2020 | C&I | www.c-store.com.au 11
FEATURE STORE REVIEW
Ritchies Supa IGA Dromana staff, including store manager Lucas Allan (centre back)
A WINNING COMBINATION A RENOVATION and a focus on premium products have proven a winning formula for Ritchies Supa IGA, Dromana, in Victoria’s Mornington Peninsular.
What we’re all striving for is customer recognition, that’s the best reward you can have.” – Fred Harrison
ocated in the heart of Victoria’s Mornington Peninsula, the store celebrated an incredible 2019, taking out the award for IGA International Retailer of the Year.
Ritchies Supa IGA Dromana has a focus on premium wine
As well as the IGA Awards of Excellence 2019 Supa IGA Bakery Department of the Year (for the second year in a row), following accolades for the national retailer of the year, Supa IGA of the year and retail transformation and innovation at the 2018 awards. It’s an impressive feat for the store, which undertook a major renovation in 2016, expanding its floor space and adding prestigious offerings, including a meat room for dry aged beef cured with blocks of Himalayan salt. But, for Ritchies Supa IGA CEO Fred Harrison, the real reward is keeping his local customers happy. “You don’t build a new store to win awards, that’s not the reason to do it,” he said. “What we’re all striving for is customer recognition, that’s the best reward you can have. But in saying that, it is great to be recognised amongst peers for what you produce.”
PREMIUM PRODUCTS Ritchies Supa IGA chief executive Fred Harrison
After refocusing Ritchies IGA in nearby Mt Eliza to a fine food and wine, premium store, when the opportunity arose to take on additional retail space at the Dromana site, the company was quick to replicate and expand on the successful formula.
14 February/March 2020 | C&I | www.c-store.com.au
A selection of the gourmet fresh food available at the store
STOREFEATURE REVIEW The transformation was 12-18 months in the making, Mr Harrison said, and allowed the store to extend and concentrate heavily on their fresh food range and offer a point of difference. “We took on additional space and added a meat room to the business, which has been very successful and allows us to have our dry aged beef on display. And it’s really started from there,” he said. The store has 45% of floor space dedicated to fresh food, the remainder to front end and grocery and making the most of its enviable location, they work with suppliers to offer locally sourced produce. “Generally, across Ritchies, we are aware of supporting local products and in Dromana, we certainly have a very large cross section of products from the peninsular. Wines do very well, we have strong wineries on the peninsular, especially with pinot noir and chardonnays, and we’ve developed a strong following for local wines.”
integral to the store’s success, particularly over the summer months when the high tourist area draws in many holidaymakers and day-trippers seeking out the area’s wineries, pristine coastline and local attractions. “It’s easy for me to talk but we have a very dedicated team down there who bring it all to life. Our store manager Lucas Allan has been involved with the store for a long period of time and he’s very well organized and knowledgeable. He and the team execute things consistently well, particularly over the summer months,” he said. “
As for what’s to come in 2020, Mr Harrison said the industry was always moving forward and they were constantly seeking to improve. “Dromana is ever evolving; we’re always coming up with concepts. The refurbishment is only three years old. But we’re always tinkering and introducing new ideas and products, there’s a leadership role for us to play.”
And a selection of imported specialty products, sourced mainly from the Mediterranean.
“We’re excited and the store does trade well, we do have points of difference. We’ll be continuing to innovate and work with suppliers to come up with category products that are different and exciting. We’re always upgrading and improving. You never go through a year where there’s not significant investment.”
One of their biggest points of difference is having a nutritionist on the Ritchies team who works to curate their healthy living offerings. In Dromana, this growing area equates to a 72-foot aisle, 24 foot of dairy and six foot of freezer worth of products. Unsurprisingly, Mr Harrison said this draws in a lot of customers who travel specifically to stock up on better-for-you products. Although he is quick to note that while a growing department, it’s also one that is fast moving and trend based.
– Fred Harrison
“We have a large number of staff. A lot of those will be casual, but we also have many permanent/part time staff. We have long trading hours, we start early and trade late, and there’s a lot of shelf refilling required as well.”
In addition to this, the store stocks a very large dip range, a dedicated cheese deli boasting European and soft ripened cheeses, among others, as well as fresh sushi hand rolled in store and a fresh fish section.
“We did a lot of work with the local demographics and noticed there are a lot of people with Mediterranean backgrounds who live here or holiday regularly. So we stock a lot of authentic products imported from Greece and Italy, pastas and sauces, antipastos… various products that are authentic from the home country,” Mr Harrison added.
We’re always upgrading and improving. You never go through a year where there’s not significant investment.”
The store is also big on giving back to the local community through Ritchies Community Benefit Program, which allows customers to donate a percentage of their money spent to organisations of their choice. For Dromana shoppers, this has included the local fire brigade, as well as the primary and secondary schools, among others. The wider program, which has been running across the Ritchies group for just over 20 years, will this month reach a milestone of $50 million in donations. C&I
The store features a specialty cheese section
“There is trial and error, vegan is a big movement at the moment, so vegan products are selling well. But the products of today are ever changing, you have to move with the trends. Another is Kombucha, that seems to be massive for us in that particular store.”
A DEDICATED TEAM Beyond their product offerings, Mr Harrison said his dedicated and knowledgeable team is
Ritchies Supa IGA chief executive Fred Harrison surveying the Dromana store February/March 2020 | C&I | www.c-store.com.au 15
Join AACS The peak body for the Australian Convenience Store industry, celebrating over 30 years serving the industry
AACS: EVENTS THROUGHOUT THE YEAR • • • • • • • • • • •
AACS supplier round table meetings AACS State of the Industry Report launch AACS Convenience Leaders Summit AACS Gala and Awards Dinner AACS Education AACS CEO Forum AACS Overseas Study Tour AACS Peter Jowett Industry Award AACS Women in Convenience program AACS weekly e-newsletters AACS Downunder Study Tour
The Australasian Association of Convenience Stores (AACS) is the champion of the convenience industry and now in 2020 we celebrate our 30th anniversary. We have a long history serving retailers and suppliers; we’ve witnessed seismic changes, game-changing innovations, shifts in consumer behaviour, new regulations and much more.
As we highlighted some years ago when we produced our ‘AACS Convenience 2020’ report important elements to success remain collaboration, innovation and differentiation. As we look ahead to the New Year and new decade, our path is clear: we’re focused on helping you understand where we are, where
we’re going, how we’ll get there and how we may add value to your business – large or small. To enjoy the diverse benefits of AACS membership, contact AACS CEO Jeff Rogut on firstname.lastname@example.org for more information. Visit www.aacs.org.au.
Become a member today! Contact email@example.com
ALL AACS MEMBERS RECEIVE THE FOLLOWING BASIC BENEFITS: • • • • • • • • • •
The annual AACS State of Industry Report Val $2500 Comprehensive networking opportunities Meetings with prominent Industry speakers Government lobbying on issues impacting on the industry International and local study tours Access to international speakers Convenience specific training Access to research and presentations Weekly eNewsletter 10% discount on all AACS training programs
THANKS TO THE VOLUNTEERS The AACS reflect on 30-years of industry expertise, look ahead to the AACS Overseas Study Tour and give us a taste of what to expect in the upcoming State of the Industry Report, due in April.
Jeff Rogut AACS CEO
The Convenience industry has achieved yearon-year growth in recent times, so it will be interesting to see how we've tracked in the context of the broader malaise in the economy.”
he new decade began on a sombre note in Australia with the devastating bushfires impacting flora, fauna, people, property and even politicians. The tragic events claimed too many human and animal lives. But if there’s one bright spot, it’s the way local communities have pulled together to support each other. We often talk about the important role convenience stores play at the local community level and the Australasian Association of Convenience Stores (AACS) says a special thanks to those owners, operators and staff who have pitched in to help in communities affected by the bushfires. A special thanks also goes to the many fire fighters and volunteers who have shown such bravery and selflessness. On behalf of our members, AACS has made a $3,000 donation to the Australian Red Cross in support of their efforts to help those in need. The impacts of the bushfires will be felt for months and years to come and we welcome ideas and suggestions from our members as to how we might assist their efforts in rebuilding what has been lost.
LAUNCHING SOON: THE AACS STATE OF THE INDUSTRY REPORT
We will soon unveil the latest AACS State of the Industry Report, the most comprehensive and valuable bellwether for Australia’s convenience industry and a launch breakfast not to miss.
- Jeff Rogut, AACS CEO
Further information: Jeff Rogut Chief Executive Officer Australasian Association of Convenience Stores Ph: +61 467 873 789 18 February/March 2020 | C&I | www.c-store.com.au
Be first to see how our industry is tracking and the categories which outperformed in 2019, a year in which the challenges for retailers were numerous but the innovators in convenience took their efforts to the next level. The convenience industry has achieved year-on-year growth in recent times, so it will be interesting to see how we’ve tracked in the context of the broader malaise in the economy. Will we outperform the grocery channel again? The report will be launched in late April in Brisbane on the 28th, Sydney on the 29th and in Melbourne on the 30th. Contact firstname.lastname@example.org for further details.
CHALLENGE ACCEPTED: THE PETER JOWETT CONVENIENCE INDUSTRY AWARD
It’s the industry award that encourages out-of-the-box thinking and it’s on again. The AACS Peter Jowett Convenience Industry Award challenges young and bright minds to imagine the future of our industry and then apply their creative thinking to the practical ways in which we’ll get there. This year’s topic is especially timely: “What is your vision for convenience stores of the future and what must they do in order to stay relevant and competitive in an evolving retail environment?” Contact email@example.com ASAP if you want to enter, with submissions due on 29 May.
AACS says a special thank you to those owners, operators and staff who have pitched in to help in communities affected by the bush fires.” - Jeff Rogut, AACS CEO
The challenge is open to members’ staff aged from 21 to 36 and a panel of industry expert judges will choose one retailer and one supplier winner. The winners will then present to attendees at the AACS Convenience Leaders Summit in Melbourne on August 25, 2020. Better still, they will also win a trip to attend the NACS Show in Las Vegas in October 2020. Some AACS members use the award as the basis of an internal competition for their team as a way of selecting candidates and driving innovation in their own businesses. Year on year, the submissions are more and more impressive, reinforcing that we all should be confident in convenience.
cost of doing business, the right to sell packaged alcohol, and more. We also have a vibrant calendar of events in place, training programs to assist members and their staff, study tours to open our collective eyes to how others are innovating and a Women in Convenience program to encourage diversity and unlock new opportunities. The greater our membership numbers, the louder and more influential our voice becomes. AACS memberships are available now. Visit www.aacs.org.au for more details. C&I
EUROPE HERE WE COME
Innovative insights? Check. Amazing hotels and fantastic meals? Check. An unforgettable experience? Check. The AACS Overseas Study Tour is always one of the most exciting initiatives of the year and in 2020, we’re elevating the experience even further. This time we’re off to Berlin, Germany, where our members will have full access to the NACS Convenience Summit Europe. We’ll hear from global thought leaders, take expertguided retail tours, and build strategic relationships with leading retailers from around the globe. From Berlin, we’ll visit an international hotbed of innovation in a soon-to-be-revealed Scandinavian country. The tour runs from June 2-7 and places will fill up fast, so book your spot today. Contact firstname.lastname@example.org to be part of this career and life-changing experience.
STRONGER THAN EVER AFTER 30 YEARS
This year is the 30th anniversary of the establishment of the AACS and our position as the voice of the convenience industry in Australia has never been stronger. We continue to advocate on the issues that matter most to our members, including crimes like illicit tobacco and petrol theft, regulations and imposts affecting our operations, the
A vibrant calendar of AACS events keeps members ahead of the game. Here are the 2020 highlights. April AACS 2019 State of the Industry Report launch, April 28/29/30th [Bris/Syd/Melb] May AACS Downunder Study Tour, May 28-29: Sydney August
AACS Convenience Leaders Summit, August 25 - Melbourne AACS Gala & Awards Dinner, August 25 - Melbourne Winners announced: AACS PJ Award, AACS Store of the Year AACS State of the Industry Report 2020 Mid-Year Review released
AACS Overseas Study Tour, October 5-9: Destination TBC
AACS Women in Convenience events February/March 2020 | C&I | www.c-store.com.au 19
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For more information contact your frucor suntory sales representative or the sanitarium health food company customer service team on 1800 673 392
The fermented tea drink has seen a rapid rise in popularity
ombucha may once have been considered a hippy drink, but as our understanding has evolved, so too has the average consumer, who is now likely to be young, male and purchasing it from a supermarket or convenience store. The rapid rise of the fermented tea beverage has been swift. Buoyed by a collective consumer trend away from sugar laden drinks and a growing demand for healthier-for-you products, its growth shows little sign of slowing. And it’s not just consumers taking notice, with prominent restaurants including Heston Blumenthal’s Michelin starred restaurant The Fat Duck adding it to the menu, among other noted fine dining spots. Bartenders have also adopted the drink into cocktail menus, making for both an inventive and ingenious way to capitalise on the trend for better health options. 22 February/March 2020 | C&I | www.c-store.com.au
KOMBUCHA’S The category is growing in convenience stores and I expect we will see live-cultured drinks become a stand-alone section in their own right.” - Emmet Condon, Remedy Kombucha
A Nielsen Homescan report in 2017 identified a growth of 173.8% for Kombucha as a soft drink alternative.
While figures from Inkwood Research have found that the Australian kombucha market is anticipated to see a compound annual growth rate of 26.17% between now and 2027. And Remedy, who have 50% of the Australian Kombucha market made 17 million litres of fermented beverages in the last 12 months and sell a drink every three seconds in grocery channels alone. But it wasn’t until 2016 that the category began to see significant sales in the Australian market. And in recognition of the exploding popularity, well established food and beverage companies are now looking to add kombucha products to their portfolio.
KOMBUCHA new data is suggesting a rise in male consumption of kombucha, potentially being driven by better availability in the convenience channel where many are already visiting but seeking a healthier alternative to traditional offerings,” Mr Crabb said. The convenience channel, he said is contributing 13% of category sales – and is as high as 23% for younger shoppers, but he says grocery continues to dominate. There has also been an evolution of what is considered Kombucha. The beverage has traditionally required refrigeration as the sugars used in the brewing process continue to ferment if left at room temperature. As more brands have entered the market and the brewing processes have evolved, some have switched to brewing out the sugars or adding in alternatives, such as Stevia, which allows the product to be stored at room temperature. While this is a game changer for some brands – cutting down on transport costs associated with refrigeration and allowing for wider distribution, brands such as MOJO and Rok Kombucha, prefer to stick to traditional processes. Inlcuding The Coca-Cola Company, who in 2018 purchased Organic & Raw, the company behind one of the original Australian products, MOJO Activated Kombucha. Organic and Raw CEO (and MOJO founder) Anthony Crabb said the market has seen an incredible growth since they began fermenting in 2008 in the SA town of Willunga in McLaren Vale, an area renowned for alternative lifestyles. “Technically, the market didn’t exist! In 2008, when Organic & Raw launched the beginnings of the MOJO brand and products, commercial kombucha was not formally available for sale, even in the most niche of health food stores – it was very much a homemade product, enjoyed by a very small but informed and passionate group of health conscious consumers,” he said.
“Consumers’ ongoing efforts to reduce sugar intake has also been an influence, as they seek to replace traditional NARTD products with low sugar alternatives. The involvement (sometimes behind the scenes!) of larger beverage conglomerates in Australia’s kombucha evolution has also been a contributing factor, as the distribution power and resources have played a role in the growth of some brands,” Mr Crabb said. Rok Kombucha founder Amanda Carroll agreed there has been a big shift in the ‘average’ kombucha consumer since they launched in 2016. Where once she said people were hesitant >>
“Starting in SA, we set out to educate about kombucha and gut health from the ground up – in the early years, Sarah and I visited what felt like every health food shop in Australia! It was very much about explaining the product, helping people understand how it is traditionally made, and why fermented drinks can play a role in supporting gut health. Sampling was and remains key.” Mr Crabb puts the figure of household penetration of the drink at 8.6% and said today the product is far more mainstream. For MOJO, the growth started when they began to be stocked at independent grocers from 2013, before they became the first nationally Kombucha brand stocked in Woolworths three years later. Today they are also stocked nationally in Coles, independent retailers, health stores and 2,500 restaurant, café and on-thego locations. And the brand has seen an exponential growth and a big diversification in consumers since their expansion. “We know that the top consumption drivers are around digestive health, great taste and value, and we are seeing these play out in shopper behaviour from many different walks of life. Interestingly, February/March 2020 | C&I | www.c-store.com.au 23
Initially it was just for healthconcious people. But our mantra was always to convert people from soft drinks and to create something healthier. Our consumers are broader now. It's becoming a more mainstream category.” - Amanda Carroll, Rok Kombucha
to try it or even too scared to ask what a scoby (the symbiotic culture of bacteria and yeast that transforms the tea into Kombucha) was, she now gets emails from tradies who say it helps their active lifestyle and pregnant women who claim it relieves their morning sickness. “Initially it was just for health-conscious people. But our mantra was always to convert people from soft drinks and to create something healthier. And our consumers are broader now. It’s becoming a more mainstream category. We are still a premium, authentically brewed product so it is niche, but we have consumers from all walks of life. We’re picking up those looking for low sugar offerings.”
AT A GLANCE • Kombucha has seen an incredible 173% rise as a soft drink alternative as consumers look to better-for-you products. • The market continues to grow and it’s estimated it will see a compound annual growth of 26% over the next seven years. • Due to different brands favouring different brewing techniques, some require refrigeration while others are shelf-stable at room temperature • Once sold only in health stores, today it’s most commonly purchased from a supermarket or convenience store.
Ms Carroll said consumers were also gaining a better understanding of the different products available on the market, including the different processes behind different brands. “One of the major frustrations is the battle for what is considered a kombucha product. What it means. And the process it takes to make it and unfortunately the major players in kombucha are more like soft drinks and not authentically brewed. From our company’s perspective, we’re doing it the correct way and fermenting it and brewing and blending but then people come along and just add natural flavours and a shelf stable bug. There’s a considerable cost to do it right and having the right tanks,” she said. “It’s grown so quickly that consumers are only understanding now what Kombucha is and the differences are only now just becoming apparent. I’m hoping there’s a change coming in the market.” Our understanding of the product’s perceived health benefits, particularly in regards to gut health, have also driven its success, said Emmet Condon who began brewing Kombucha at his kitchen bench with wife Sarah, before launching brand Remedy. Mr Condon said the increased demand correlated heavily with the increase in mainstream conversations around gut health and organic products.
24 February/March 2020 | C&I | www.c-store.com.au
And reflecting how broad the health focus has widened, Remedy products can now be found in quick service restaurants, as well as on-board Virgin and Qantas flights. The next growth area, Mr Condon predicts, is C-stores. “The category is growing in convenience stores and I expect we will see live-cultured drinks become a stand-alone section in their own right with a door of its own in every fridge, rather than sharing space with other ‘perceived’ better for you products,” he said. “The competition will continue to increase, but I believe we will see some rationalisation as consumers become better educated on the quality of products and processes between brands.” However Tim Xenos, executive director of Olympian Products and Distribution, said he believes kombucha is only one part of the story and as consumers become more comfortable with the product, he believes we’ll start to see a lot more related beverages hit the market. “Kombucha itself won’t diversify much other than through added value like extra vitamins or supplements, such as the kombucha energy drink we’ll be revealing soon,” he said. “But the probiotic beverage market is huge and we’ll be at the front of that with SKUs like our ready-to-drink Apple Cider Vinegar blend that you’ll actually be able to swallow.” The brand chose to launch SURVIVE, their line of four certified organic kombucha products in apple, raspberry, ginger and lemon following high demand in the US and Mr Xenos said it’s a way for them to better educate consumers on similar products. “Our focus as a company is on innovation and development in the healthy beverage sector. We will be rolling out a variety of prebiotic and probiotic beverages and it makes sense to us to launch into a new market with a product that consumers are already becoming familiar with so we can then educate them about our other offerings.” C&I
Cultured organic Kombucha rich with probiotics and antioxidants. In delicious natural flavours, it's simply better for you. Look out for our energy and apple cider vinegar drinks coming soon.
For more information on how to stock SURVIVE contact Olympian Products & Distribution on 1800 413 711 or email@example.com
BUNDLE OF ENERGY
All-action beverage still giving bottom lines a boost
t’s been around a while now, but the evergreen energy drinks segment continues to be a very bright spark in the all-important beverages category.
According to the data from the most recent State of the Industry Report from the Australasian Association of Convenience Stores (AACS), energy enjoyed 5.5% dollar growth in 2018 and boasted a 29% share of drinks to go. The Association’s Chief Executive Officer, Jeff Rogut, said that although the full data for 2019 is not yet available, it looks like it will be a similar story. “Energy just continues to power ahead because people on the go living busy lifestyles are still looking for a pick me up,” he said. “Offering good products on promotion is encouraging new buyers into the convenience channel and also keeping current users interested and engaged.” It is not difficult then to see why energy drinks have surged in popularity, and why they have had particular resonance in convenience. Life is busier than ever for most Australians, and consumers are constantly looking for more avenues to increase functional energy 26 February/March 2020 | C&I | www.c-store.com.au
Energy just continues to power ahead because people on the go, living busy lifestyles are still looking for a pick me up. Offering good products on promition is encouraging new buyers into the convenience channel.” - Jeff Rogut, AACS CEO
levels. Energy drinks are a natural fit with convenience customers who tend to be on the move and are seeking a lift to keep them going through their busy days. The functional benefit of energy drinks has seen the category climb to the best-selling product in the non-alcoholic-ready-todrink category through the Australian petrol and convenience channel. In general, convenience is all about immediate consumption and energy drinks also have a high incidence of impulse purchases. From an operator’s point of view, it’s generally favourable if consumers are switching into an energy drink as, on a price- per -litre basis, energy drinks commonly command a premium to most other beverages. Site owners and operators can play an important role in optimising consumer switch by tailoring their merchandising preferences and shelf space accordingly. Energy is dominated by major players such as Red Bull, Frucor Suntory with its V and Rockstar brands, and by the Monster Energy Company (MEC) which owns both the Monster Energy and Mother Energy brands, which are distributed through a long-term partnership with Coca-Cola Amatil in Australia. From a combined portfolio perspective MEC brands account for approximately one third of energy drink volume sales in Australia.
ENERGY DRINKS Monster Energy Company’s Vice President – Oceania, Sam Thiele, said energy drink sales in convenience are vitally important as the category looks to expand.
Monster’s Sam Thiele says that, on a rolling annual basis, the volume of sugar-free energy drinks has grown +16.4% versus full sugar at +1.8%.
“Approximately 60% of grocery sales are now multi-packs so these are generally established consumers who purchase frequently,” he said. “Convenience is critical to creating trial occasions to convert considerers into frequent consumers.”
“The trajectories look set to continue in Australia and the Monster Energy Ultra portfolio is perfectly positioned to embrace the trends,” he said. “Monster Energy Company is currently launching exciting new Monster Energy Ultra lines in the USA called Monster Energy Ultra Fiesta and Monster Energy Ultra Rosa – both exciting considerations for Australia’s future pipeline.”
Consumption occasions may include taking a break on the road, during lectures and study sessions, at work, while doing sports, or going out day and night. Energy drinks sell consistently through the day in convenience, but particularly well in the morning in line with the consumer’s need for a pick me up. Stores need to understand the peak sales times in their specific store and ensure they have enough stock on hand. Customers who are unable to find their favourite energy drink available may either leave without buying anything, or potentially buy a different sort of beverage which may deliver a lower value sale. Stores need to make sure a variety of market leading brands is ranged so they can cater to different consumers and each energy drink brand should have its fair share of space to reflect its sales.
Monster Energy Zero Ultra is Australian Convenience’s number one sugar-free SKU and is supported by strong demand for the recently released Monster Energy Ultra Paradise. Other recent Monster innovations include Mango Loco and Pipeline Punch, which combine energy and fruit juice to increase the category’s attraction to new consumers. Monster Mule, a Ginger Brew energy drink, is also due to hit Australian shelves and fridges soon. Mother Energy is also playing a leading category expansion role with flavour additions such as Mother Passion, Mother Tropical Blast and now the new Mother Epic Swell. >>
It’s about having a diverse range, cooler space allocations that reflect the catergory’s number one status with cold impulse displays and competitive pricing. Flavour and function diversity is critical to encouraging trial.” - Sam Thiele, Monster Energy
“It’s about having a diverse range, cooler space allocations that reflects the category’s number one status, clean and inviting merchandising standards with cold impulse displays, and competitive pricing,” said Monster Energy’s Sam Thiele. “This is why it’s critical to disrupt consumers on their decision paths in store and why flavour and function diversity is critical to encouraging trial.” Having products displayed at different locations such as in the fast lane, in the fridge, and on ambient display is a highly effective way to maximise sales. The secondary placement can remind people who are not walking to the fridge of what is on offer. The second display can be ambient, but a secondary fridge near the checkout will drive the impulse buy even more. In convenience, customers are buying mainly chilled singles for direct consumption, while in grocery they may buy ambient multi-packs for later consumption. However, there are shoppers for big and small sizes of drinks as well as different formats such as cans and bottles, so it is important for stores to make sure they offer a good variety of these. Energy drinks are now a well-established category but, as manufacturers and stores seek to unlock broader trial, penetration and frequency, variety and innovation will be key. Consumer tastes and preferences are changing at unprecedented rates and companies that can’t evolve will start to lose their relevance, regardless of brand strength. One of the most dramatic shifts across the whole beverage spectrum in recent years has been the rise of sugar-free, but it seems there may still be a way to go in this country. Monster Energy says that, according to IRI, the sugar free mix of total energy drinks consumption in the Australian convenience and petrol channel is approximately 13%, which is around half the proportion of sugar free sales in the United States. February/March 2020 | C&I | www.c-store.com.au 27
Convenience is critical to creating trial occasions to convert considerers into frequent consumers.”
- Sam Thiele, Monster Energy
Elsewhere, the launch of Coca-Cola Energy in Australia in the middle of last year created plenty of excitement in the category. The first energy drink launched under the CocaCola brand, Coca-Cola Energy comes in a 250ml can and features ingredients including caffeine and guarana. It is also available as a no-sugar option.
AT A GLANCE
Coca-Cola Australia’s Marketing Director, Lucie Austin, said Coca-Cola Energy was the latest example of the company’s strategy to offer people a wider range of drinks for different lifestyles and occasions.
• Energy drinks are a natural fit with convenience customers who tend to be on the move and are seeking a lift to keep them going through their busy days
“We’re launching Coca-Cola Energy with and without sugar and we’ll continue to expand and diversify our range of products to offer Aussies a wider choice of drinks,” she said at the time of the launch. “We think it will appeal to busy people on the go who are looking for an extra energy kick with a great Coca-Cola taste.”
• Sales can be driven by having a diverse range, adequate cooler space allocations, clean and inviting merchandising standards, and competitive pricing
Red Bull has also been busy in the innovation department and recently launched a new limited-edition watermelon flavour of its original energy drink in convenience stores across South Australia. The drink is made with sugar sourced from sugar beets and Alpine water, combined with the flavours of watermelon.
• Variety and innovation will be key as manufacturers and stores seek to unlock broader energy drink trial, penetration and frequency
Many manufacturers regularly seek to introduce different flavours to keep the category fresh and exciting and new companies are constantly emerging, looking to get a foothold in the market by offering a point of difference.
• One category watch point will be the ongoing talk in some quarters about potentially introducing age restrictions on who can buy energy drinks
Like most beverages, the potential of energy drinks to lift the profit levels of a convenience store goes way beyond its ability to create a single sale. Market research has shown energy drink shoppers are far more likely to have a snacking product in their basket than the average beverage shopper. Bundling energy
28 February/March 2020 | C&I | www.c-store.com.au
drinks with food products is then a clear way to lift sales, whether customers are looking for a meal or just a snack to have later. These promotions can grab shoppers’ attention and increase basket size. Price discounts are another proven sales driver in the category. Australians have been conditioned through broader retailing to buy more when prices are discounted or clearly promoted. Energy drinks are no different despite the fact that their functional benefit makes them slightly less price sensitive than other beverages, particularly in immediate consumption channels. While the long-term outlook for energy remains exceptionally strong, there are some potential challenges ahead. These include the growing calls in some quarters for age restrictions to be put on the sale of energy drinks in Australia. This follows the announcement late last year from New Zealand supermarket, Countdown – a Woolworths subsidiary – that it would no longer sell energy drinks to anyone under the age of 16 in its 180 stores. Woolworths has said it currently has no plans to impose similar restrictions in Australia. “There are some groups talking about introducing age restrictions here and it’s certainly a watch point,” said Jeff Rogut from AACS. “However, I think ultimately – like coffee – it’s all about responsible consumption.” Stores that continue to offer the right energy drink range at the right price, and focus attention on placement and promotion, as well as leveraging effectively on new product developments, can expect to see the category giving their bottom lines a serious boost long into the future. C&I * Convenience & Impulse Retailing magazine would like to thank the AACS, CMA and MEC for supplying information for this article.
V Energy Drink Raspberry Lemonade Can
V Energy Drink Raspberry Lemonade Can
LIQUID GOLD How flavoured milk is boosting the industry and keeping pace with trends.
new innovation, products and entrants. And as a result, sales of flavoured milk has grown around 12 per cent. This has been driven by an increase in sales through grocery channels,” she said.
According to data from Dairy Australia, it’s estimated Australians consume more than 10L per capita of flavoured milk. And Sofia Omstedt from the national body said it’s a significant and growing category for the industry. And one that is creating demand for dairy.
Interestingly, there is a big variation between flavoured milk consumption between states, with South Australia the biggest guzzler.
f you want to find a strong bastion of brand loyalty, look to flavoured milk. Among the many brands and flavours across Australia, there remains some inter-state rivalry between consumers as to which is best. When it comes to milk, it seems we’re fiercely loyal to our local brand. Think the preference for Oak in NSW, Big M in Victoria and Breaka in QLD.
“Flavoured milk sales are historically characterised by stable/ strong per capita consumption figures. The segment has seen 30 February/March 2020 | C&I | www.c-store.com.au
It’s an important source of value creation, too. In 2018/19, the average retail price for fresh white milk (1L) was $1.44. For flavoured milk it was $3.65.
Compared to national consumption, SA and the NT consume between 18-20 litres per capita, while for NSW and VIC it’s closer to 6-7 litres.
FLAVOURED MILK “One of the reasons sales are so strong in SA is due to a stable yearround demand for the product. Most other states see purchases peak in warmer summer months and drop off over winter, while in SA sales are stable,” Ms Omstedt said. “A majority of flavoured milk sold in SA is iced coffee flavoured, while this is popular in all states it’s especially true in SA. This suggests that consumers in SA may be drinking iced-coffee in preference to actual hot coffee, also accounting for the steadier year-round consumption profile.” One of the biggest brands in SA is Farmers Union Iced Coffee, who command such a cult following they last year released their own clothing line, featuring – among other offerings, a sweatshirt for $65 and a vintage cap at $35. Nicole Ohm from Brownes Dairy said despite the recent swing towards health products, particularly Kombuchas, the flavoured milk market continued to grow. Due in part, she said, to the tradition of it. “It is ubiquitously Aussie, ingrained in our culture, for many a daily habit and there is a lot of nostalgic passion for the brands that have ‘been there’ for decades,” Ms Ohm said. “Brownes Dairy’s flavoured milk brand is CHILL, a WA icon, and we experienced the power of nostalgia firsthand when we went back to our retro roots of CHILL and brought back the famous 90’s packaging and TV commercial to celebrate 25 years last year. The response (sales, market share, consumer engagement) was overwhelming and we have since rolled out our retro packaging across the entire range.” Ms Ohm said she is predicting a big trend towards coffee moving beyond coffee-flavoured milks to “real, café coffee.” “New brands such as BOSS and First Press are focussing on the coffee extraction process e.g. cold press, and Hunt and Brew is the first brand to rival barista-made coffee through the sourcing of meticulously selected single origin coffee beans.” Coca Cola South Pacific’s brand director of hydration, tea, valueadded dairy and juice Kate Miller agreed coffee centred milks were becoming an increasingly big player in the category. “Coffee is one of the drivers of growth of flavoured milks in Australia. Over the last few years we have seen an increase in demand for coffee flavoured varieties including new coffee >>
It’s ubiquitously Aussie, ingrained in our culture, for many a daily habit and there’s a lot of nostalgic passion for brands.”
- Nicole Ohm, Brownes Dairy
February/March 2020 | C&I | www.c-store.com.au 31
The segment has seen newinnovation, products and entrants and as a result, sales of flavoured milk has grown around 12 per cent.” - Sofia Omstedt, Dairy Australia
styles such as latte and double espresso. This is a trend we expect to see continue into 2020 and beyond,” she said. “Growth over the last few years has been through innovation that often mirrors mainstream café coffee culture trends, increased availability and improved taste profiles.”
AT A GLANCE
“We’ve also seen consumers switching to coffee flavoured milk from other beverage categories for their energy and enjoyment needs. Coca-Cola Australia first entered dairy with Barista Bros in 2014 and the brand has grown consistently year-on-year and is now available in all states across Australia.”
• In 2018/19, the average retail price for fresh white milk (1L) was $1.44. For flavoured milk it was $3.65.
Another area Ms Ohm predicts we’ll start to see more of is lactose free and non-dairy flavoured milks. Already the market has seen introductions of coconut, almond, oat and soy-milk products.
• It’s estimated Australians consume more than 10L per capita of flavoured milk
Plant based, dairy-alternative ‘milks’ are a rising trend. Figures from IBIS World have put the consumption of plant-based milk as high seven per cent of all milk consumed in Australia.
• Plant based flavoured milks are a growing category and IBIS World predict milk alternatives will grow at an annualised rate of eight per cent throughout the next five years.
And it’s an industry IBIS World predict will grow at an annualised rate of eight per cent throughout the next five years.
• Consumers are switching to coffee flavoured milk beverages from other categories • Consumers are also seeking 'better-for-you' flavoured milk products
While flavoured non-dairy milks account for just a small percentage of the industry, it is an area that is underdeveloped. This is particularly true for convenience channels, in which flavoured-plant milks are one of the leading categories of nondairy milks in C-stores. This has been found not just to be driven by people avoiding dairy for ethical or dietary reasons, but by people who also consume dairy but believe milk-alternatives to be healthier, especially as they generally contain less kilojoules.
32 February/March 2020 | C&I | www.c-store.com.au
Consumers are also seeking ‘better-for-you’ dairy products, such as pre-mixed smoothies and more substantial flavoured dairy, such as Sanitarium’s UP&GO and Nutriboost Boosted Milk, which Ms Miller said reflected consumers’ desire for nutritionally sound choices. “Among the fastest growing trends in the dairy category is the rise in popularity of products with added nutritional benefits such as beverages that are high in protein or fortified with vitamins and minerals as well as lower sugar alternatives,” Ms Miller said. “We are also seeing more consumers opt for dairy alternatives such as almond, oat and plant-based milk varieties.” Ms Miller said she believed families often looked to milk as a source of nutrients for their children, noting dairy’s levels of calcium, fibre and Vitamin D. “Dairy products are a valuable source of protein and calcium and are appealing to health-conscious consumers. They often score highly on the Health Star Ratings system.” “For example, Nutriboost is high in protein and calcium, provides fibre and Vitamin D and earns the highest possible health star rating with 5 Stars. It was the first product in the category to receive a 5-Star Health Rating.” On the opposite end of the spectrum, product innovation is also driving sales and brands such as Dairy Farmers and Oak are teaming up with other iconic brands – Arnott’s and Allen’s Lollies respectively, for innovative and indulgent creations, such as Wagon Wheel and Red Skins flavours. C&I C&I would like to thank Brownes Dairy, Coca-Cola Australia and Dairy Australia for their contribution to the article.
Tim Tam releases Crafted Collection Arnott’s new Tim Tam range offers a taste of home, highlighting the delicious flavours of Australia and New Zealand. The Tim Tam Crafted Collection features four indulgent flavours using ingredients sourced from local regions. They include Murray River Salted Caramel, featuring salt from the Murray Darling River Basin, said to have some of the best salt flakes in the world thanks to the river’s pristine waters, mixed through a gooey caramel sauce and featuring a smooth caramel cream centre sandwiched between two crunchy biscuits and covered in chocolate. Sunshine Coast Strawberries and Cream, which evokes the warm, sunny days of Queensland’s Sunshine Coast using their vibrant bright, red strawberries bursting with sweetness in the strawberry and cream centre. New Zealand's famed Gisborne navel oranges feature in the smooth orange-cream centre of the Orange and Dark Choc, also coated in Tim Tam dark chocolate. And a Manuka Honey and Cream flavour highlighs the woody, rich flavour of Manuka honey – famed for its medicinal qualities, paired with a delightful cream centre smoothed between biscuits and covered in milk chocolate. The biscuits are available at major grocery stores and RRP is $3.65.
UP&GO Caramel Limited Edition Great news for those on the go, Sanitarium’s UP&GO Caramel can now be found in petrol and convenience retailers. The 350ml range is available in petrol and convenience outlets, joining other big flavours chocolate and vanilla. The 350ml limited flavour range is set to make snacking on the go that little bit sweeter. UP&GO Caramel has been available in the grocery market for a number of years and has a loyal following of fans who rarely cross shop other flavours, prompting the move into convenience. The flavour has been a big hit across mainstream brands, Sanitarium said, including holding the second highest percentage growth in ice cream. And the limited-edition release is set to be an exciting edition for old fans and new consumers alike as they seek out a ‘liquid breakfast’. Drink UP&GO for the right type of energy! With a low GI, as well as protein and fibre, high calcium, 10 essential vitamins and minerals and no artificial colours, you can make the most of every moment.
34 February/March 2020 | C&I | www.c-store.com.au
Vodafone Prepaid Roaming Add-ons
Forget wasting valuable travel time buying a local or roaming SIM or searching for WiFi and avoid being hit with unexpected fees with Vodafone. Vodafone Prepaid customers heading overseas can now scroll with confidence thanks to their $5 a day Roaming Add-on to help savour, capture and share their fantastic experiences. And for customers whose last recharge was Combo or Pay and Go, there’s even the option to take your Australian phone number overseas with you. For just $5 a day, customers score 200MB data, 25 minutes of STD calls and 30 SMS per day. Three day and seven day roaming options are also available. And, thanks to a wide availability, even the most adventurous explorers should be covered, with roaming available in more than 80 countries. Including North America, parts of South and Central America, select countries in SouthEast, South and Central Asia, New Zealand and selected countries across Europe. Better yet, customers have the added confidence in Vodafone text message notifications with usage updates and the option to self-monitor via the My Vodafone website. Roaming Add-ons can be purchased through My Vodafone, Express Recharge or simply by texting ROAM1 to 1511. And as My Vodafone is free rated, customers don’t need to be connected to the internet to purchase the add on, making for a convenient option on-the-go. Expiring periods for the Add-on being from midnight AEST on the day of purchase and can be activated through My Vodafone. For more information visit www.vodafone.com.au
The Future of Vaping is Here! Introducing a cutting edge disposable, all in one, pod device called the Bidi Stick. It is small, extremely easy to use straight out of the box and can be utilised discreetly like most vape devices. So you don’t have to worry about pressing any buttons, priming, charging or refilling. The Bidi Stick is ready to go when you are with immediate flavour that lasts to sustain you. It is created with only pure and natural USA-made ingredients, and with carefully selected delicious flavour profiles to maximize your satisfaction, Bidi Stick is the premium luxury choice with an almost weightless soft-feel body which enhances your vaping experience. Ultra-convenient and pocket-friendly disposable vape requiring no charging, filling, or button-pressing – simply puff and go! The Preferred Choice and only premium luxury vaporizer is Bidi Stick.
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Switch the habit of smoking cigarettes, each Bidi Stick is packed with enough juice and power to outlast a two packs of smokes. That is equivalent to approximately 50 cigarettes per Bidi Stick. Not only will your experience be amazing due to the ease of use and the unbelievable flavour, but the value it brings you is unbeatable. It is easy to pocket and take anywhere you go, so you can enjoy your active lifestyle, and keep discovering your inspiration all day long with Bidi Stick! The product's e-liquid is outstandingly smooth, tasteful and provides supremely satisfying throat hits, and its flavours last to the last puff, unlike most vape sticks. It offers on-the-go convenience, no charging required, no filling needed, more than 50 cigarettes value, a satisfying throat hit, tasty flavour varieties, a strong, lasting battery and never a burnt taste. Visit www.bidiVapor.co.nz or contact Rik Gandhi at firstname.lastname@example.org or 0423 126 243 or Hem Patel at Hem@bidivapor.com or 0430 280 775. February/March 2020 | C&I | www.c-store.com.au 35
WHY JOIN UCB? Purchase Power. Itâ€™s as simple as that.
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Violet Crumble Bunny
The producers of Violet Crumble, Robern Menz have been busy bunnies since acquiring the brand from Nestlé, back in 2018. The family-owned company has been responding to Australian consumers’ demands for differing formats. And having brought back the bagged format in early 2019, the company released to market the 135g Violet Crumble Nuggets and Violet Crumble Dark, a dark chocolate version of the iconic 50g bar. The new 30g Violet Crumble Bunny will hit shelves just in time for Easter, but in exciting news, it will be available all year round. It features the beloved shattering pieces of the iconic honeycomb coated in creamy milk chocolate, and Robern Menz is confident that the new snack will be a hit with Violet Crumble fans and new customers alike. Polly Love, Marketing Manager, Robern Menz said it was sure to delight fans. “We’re really excited about this launch. The 30g size is the perfect special treat for kids or for a snack on the go or those who aren’t looking to indulge in a 50g bar,” Ms Love said. “People are already thinking about Easter treats, so it’s great to have this on the shelves in advance of the holiday." "And we’re anticipating it will be a family favourite all year round." "So far the response has been overwhelmingly positive!” For more details contact Robern Menz on 08 8368 7700.
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Australia’s own milk tea - time for tea?
When 9Cha directors Sean Issell and Jay Shao first came up with idea for 9CHA “Australia’s Own” Milk Tea, they couldn’t believe the gap that existed in the market. Milk Tea has been available in Asia for many years and first arrived in Australia six years ago. According to Allied Market Research, the global bubble milk tea market was worth US$1.95 billion in 2016 is projected to reach US$3.2 billion by 2023. “We looked to similar products around the world and how people wanted to consume RTD Milk Tea products. No one caters to our target market (12-24-year-old females in RTD flavoured milk), so creating 9CHA was a very easy decision” Mr Shao said. “Everything in the market up until now has been imported. We have the best milk powder and water in the world, so let’s make the best product in the world,” Mr Issell added. “9CHA is available in three flavours - Original (black tea), Wildberry and Jasmine, available in a handy 200mL pouch. Our product has been lab tested to shelf life of over 15 Months (from production), with no preservatives or artificial colours”. “9CHA is a game changer for the dairy industry,” Mr Shao said, “with less Fat, less sodium and importantly less sugar than most flavoured dairy milk drinks, while still having the great taste of Australian full cream dairy milk powder. We have been able to blend all the good whilst removing as many nasties as possible.”NineCha is a Melbourne-based company and distributes through a number of leading, industry recognised distribution chains and has a loyal stable of direct stockists.
“With massive growth forecasted both domestically and internationally, it’s important we have a model in place that caters for rapid growth,” said Mr Shao. “Australia will always be our home, but growth in exports mean we need to cater for on and off-shore sales. Importantly having a product made right here in Australia gives us a sense of pride that is hard to beat,” added Mr Issell. For more information visit www.ninecha.com.au, email contact@ninecha. com.au or call 03 9088 8030
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Caramilk fans rejoice! Caramilk Twirl is now available Caramilk fans will have even more to celebrate this festive season. Following confirmation of the launch of Twirl Caramilk, Cadbury is pleased to announce that the new product will now be available on an ongoing basis. Combining two unique icons - the swirls and curls of Twirl with Caramilk caramelised white chocolate, Twirl Caramilk promises to delight Aussies with a new and delicious way to enjoy a little treat for themselves. Paul Chatfield, director of marketing for Cadbury, said it was an exciting product. “The excitement for Twirl Caramilk amongst Cadbury fans has been evident since the announcement and we’re thrilled to be able to offer Australians this product on an ongoing basis,” Mr Chatfield said. Twirl Caramilk is available in all supermarkets, petrol stations and convenience stores. RRP $1.99 for medium (39g) and $3.20 for the larger 58g size that’s great for sharing. Cadbury is a brand that has a long history of bringing joy to Australian families’ lives with iconic brands such as Freddo, Cherry Ripe, Marvellous Creations and one of Australia’s favourite confectionery items, Cadbury Dairy Milk. Australians know when they buy Cadbury Dairy Milk milk chocolate, they’re getting more than a great taste, they’re getting great quality too, being manufactured in Australia for more than 95 years. Mondelz International, proud custodian of the Cadbury brand, creates delicious moments of joy in 150 countries around the world, and is a leader in biscuits, chocolate, gum, candy and powdered beverages, with billiondollar brands such as Oreo, Lu and BelVita biscuits; Cadbury Dairy Milk, Milka and Toblerone chocolate; Sour Patch Kids candy and Trident gum. Visit www.mondelezinternational.com or follow www.twitter.com/MDLZ for more information. 40 February/March 2020 | C&I | www.c-store.com.au
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INTO THE FUTURE! What does 2020 have in store for convenience and impulse retailing?
t’s hard to stand out from the crowd. In 2020, convenience retailing is set to see a number of innovations and disruptions driving new trends. From stores that are completely cashless to the huge uptake in fresh food on-the-go, 2020 is set to be another bumper year. Let’s take a closer look:
CHECK OUTS, CHECK OUT: CASHLESS AND FRICTIONLESS PAYMENTS ON THE RISE
The cashless cardless 7-Eleven store has no physical checkout counter and everything happens within a specially designed app. Customers walk around the store, pick the items they want, scan barcodes and pay via the app. At the time, 7-Eleven CEO, Angus McKay said eliminating queues was part of the mission for this mobile checkout.
Skye Jackson, Head of Merchandise Planning at Caltex believes the trend toward cashless stores and frictionless payments is on the rise: “Some businesses are now moving to card only,” said Jackson. “It’s a more seamless experience for the customer and easier for the retailer as well.”
“In the new concept store, customers will notice the absence of a counter,” he said.
Last May, in an Australian first, 7-Eleven Australia launched a cashless and cardless concept convenience store in Melbourne’s inner suburb of Richmond where customers use their smartphones to complete their transactions.
Darren Park, CEO of buying group UCB said he was a supporter of making shoppers’ lives easier.
THIS ‘FRICTIONLESS’ CHECK OUT TREND IS SET TO CONTINUE IN 2020. ‘Frictionless’ is about making the process of checking out as painless, easy, fast and convenient as possible. Jeff Rogut, CEO of the Australasian Association of Convenience Stores (AACS) said judging by the acceptance, use and growth of ‘cashless/frictionless’ stores in the USA, this concept has both potential and appeal in Australia. “Obviously it’s not suitable or desirable for every location but savings in terms of labour costs and time for consumers make this a trend to watch and for retailers to experiment with as costs of implementation reduce and technology improves,” said Rogut. 42 February/March 2020 | C&I | www.c-store.com.au
“The store feels more spacious and customers avoid being funnelled to a checkout location creating a frictionless in-store experience.”
“For me, many C-stores exist as a vital part of the community,” Park said. “We employ locals, we welcome shoppers into our stores and we often have discussions about what is happening in their lives.” Park pointed out that we should never forget that we are in the retail service industry and people matter. “The key component that a machine or robot can never emulate is human interaction and interest. We all yearn for that human interaction in our day to day lives, which is why that first point of contact in your store is so important,” he said. “With everyone’s life being busier than ever, it’s that pleasant ‘non fake’ greeting that will bring a customer back time and time again,” said Park.
INDUSTRY NEWS According to Queensland University of Technology (QUT) Marketing Professor Gary Mortimer the value proposition for convenience is speed and the checkout area is fast becoming a pain point for retailers hoping to deliver a positive shopping experience. “For example, people don’t consistently arrive at the checkout area in five-minute increments, with exactly six items,” he said. “If they did, retailers could mathematically determine exactly how many staff to employ, and when to employ them, to maximise service levels and minimise costs.” Innovatively, the recently launched Amazon Go store, has completely removed all the checkouts. “This ensures customers will never have to queue for service,” Professor Mortimer said. “Cashless payment options will continue to grow.”
DESIRABLE CULT FOOD BRANDS AND EXCLUSIVE COLLABORATIONS When biscuits get turned into flavoured milks, we’re either close to peak trend or we’ve completely lost track and we don’t know where we are on the journey! From Violet Crumble Golden Gaytime to Wagon Wheel flavoured milk, the trend for cult brands teaming up to create new super branded products is set to continue in 2020. Food is still the future for the petrol and convenience industry. This can take the form of proprietary ranges specifically developed for retailers such as the recent Golden Gaytime and Krispy Kreme exclusively created for 7-Eleven. Well-known brands are also partnering with other well-known brands, like the recent Dairy Farmers and Arnott’s collaboration that has produced cult winners like Iced Vovo flavoured milk. “This may be through franchised operations being run side by side, incorporated in stores or as in the BP/DJ’s developments, fully branded,” said Rogut. “Consumers will determine which of these strategies will succeed.” Jackson believes the trend is set to continue for some time.
carry a national Big Brand from launch to fruition on their own,” said Park. “If those retailers that don’t get the same first to market advantage start to boycott that product, it is destined for failure… and I believe that time could be coming.”
Other future trends! • Continued ‘better for you’ food and beverage demand
FRESH FOOD ON-THE-GO
• Cannabis-infused products
The fresh food on-the-go market is booming. 2019 saw the rollout of more The Foodary branded stores, part of Caltex Australia’s evolving retail strategy, with the Australian-owned fuel company aiming to reinvent the local convenience retailing industry.
• AI and robotics in convenience – from supply chain to customer loyalty
It also saw the announcement of the BP and David Jones partnership to create all-new centres of convenience and ‘shape the way Australian consumers shop for food’, according to a statement by David Jones. Within the next six months 10 sites, strategically positioned around major arterials and key suburban regions of Melbourne and Sydney, will be transformed to showcase the new offer that has been designed with busy, urban, health-conscious customers in mind. Brooke Miller, BP Australia vice president sales and marketing said, “The traditional service station offer of today will not fulfil the retail customer needs of tomorrow.”
• Continued growth in Electric Vehicles (EVs) • Product and food delivery including via drones • Top up shop and Food for Later • Responsible retailing (sustainability and ethics) • Humanless retailing: small format unstaffed stores on the rise internationally
“BP’s vision is to transform convenience retailing in Australia and enhancing our brand via strategic partnerships underpins our strategy to deliver market-leading fuels, technology, rewards and convenience offers to Australian consumers,” Miller said. Quality, freshness, availability and value will be key watch points for retailers and consumers. “Consumers are looking for more than just a sausage roll that has been sitting in a hotbox for three hours,” Professor Mortimer said. “Tastes are evolving, with the growth of Vietnamese rice paper rolls, sushi, tacos and salads,” he said. “It is vitally important for convenience retailers to stay ahead of these trends and respond to them quickly.” >>
“Expect to see more of these. Customers love new products and it makes sense for suppliers to leverage emerging trends and cult products for new product development,” said Jackson. Consumers are constantly evolving, looking for new and innovative products that offer a point of difference. “Hence, convenience retailers should look towards forming collaborative marketing agreements,” said Professor Mortimer. “For example, exclusive products, great coffee experiences or collaborations with ‘ready-to-go’ meal brands.” Park believes that as an industry, retailers and trade partners do common shoppers a disservice and play into the grocers’ hands, by not building distribution and enhancing joint margin, through limiting trial disguised as first to market advantage. “Let’s take the time to remember, that there is no single Australian convenience retailer big enough to single-handedly February/March 2020 | C&I | www.c-store.com.au 43
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INDUSTRY NEWS If Australia follows international trends, we might consider two models, argued Professor Mortimer; straight-out ownership, where a convenience retailer owns a pharmacy and employs a pharmacist to run the business, or a strategic alliance, where a pharmacy chain, like Chemist Warehouse, has smaller versions of its stores inside a convenience store. However, existing legislation prevents either option in Australia unless changes are made in the new Community Pharmacy Agreement.
The traditional service station offer of today will not fulfil the retail customer needs of tomorrow.” - Brooke Miller, BP Australia
However, Park believes the sausage roll is the point of difference for C-stores.
“If convenience retailers were to guarantee sufficient controls — such as to ensure the safe use of medicines, staff were properly trained and there were safeguards to ensure equitable access for elderly patients, Aboriginal and Torres Strait Islander people, particularly people living in rural and remote areas — it would be hard to argue for existing rules about pharmacy ownership and location,” Professor Mortimer said.
ALCOHOL IN CONVENIENCE
“The single biggest opportunity for retailers being in a shopper’s consideration set as an on-the-go solution, is to have business practices that ensure you have an offer available for shoppers when they need it,” said Park.
Buying your alcohol alongside as your food and groceries is the norm in many international markets.
“How many times have we all visited a C-store and they are out of sandwiches, the pie warmer is empty or there’s no fruit left?”
Supermarkets have attempted to overcome these constraints by locating their branded bottle shops adjacent to their supermarkets, i.e. Coles/Liquorland and Woolworths/BWS.
There’s no benefit for a retailer of our Industry in having world class food, for two hours a day, Park argues. “Let’s together be the best pie and sausage roll retailers in the country and continually develop our other fresh food offers. Imagine for just one moment, if we had all jumped on barista coffee when BP launched Wild Bean,” said Park. “McDonald’s would have had a tougher road to travel and may not own a such a large share of the coffee market, as they do now. Skye Jackson agrees: “Fresh food on-the-go will continue to grow, the quality is improving and customers are comfortable buying these products from our channel now.” Jeff Rogut believes beverages and particularly hot beverages will continue to grow as new developments in flavours and equipment are seen. “Which retailer will be first to introduce robot baristas into their stores,” said Rogut. “It is something that will develop in future for speed and consistency of the offer as well as consumer interaction perspective.”
PHARMACEUTICALS IN CONVENIENCE Across the United States, the United Kingdom and mainland Europe, blended convenience/pharmacies are becoming the norm. But in Australia, they’re banned. “On the way home, you wander into your local convenience store for a loaf of bread and a ‘ready-to-go’ meal, but before you reach the aisle, you drop in your prescription at the instore pharmacy. Shopping done, you pick up your pills on the way out,” said Professor Mortimer. 46 February/March 2020 | C&I | www.c-store.com.au
Existing legislation prevents this model in Australia.
“Research should be undertaken to develop a comprehensive argument for legislative change, leading to consistency across states and greater convenience to consumers,” argued Professor Mortimer. However, Rogut believes political will is more the issue: “State governments are reluctant to change to meet convenience needs and retailer opportunities despite many politicians agreeing when we meet one on one, that our commercial argument for convenience stores to sell alcohol, subject to the same trading hours as local competitors, makes sense,” he said. “We will continue this long battle for retailers and their customers,” said Rogut. Today, a shopper can order alcohol online and have it delivered to their home or use a drive-through bottle shop. It’s really about time our governments were open to looking at liquor opportunities for the C-store channel. “All I ask, is that the C-store channel is simply able to offer our shoppers exactly the same access to the very same products, within the same regulatory conditions as supermarkets, off premise liquor stores and drive-throughs,” said Park. “As an industry, I believe we have demonstrated over a long period of time, our capability to trade responsibly with products such as tobacco,” he said. “This capability should be recognised when it comes to other categories such as alcohol and as previously mentioned, some OTC pharmaceuticals. This is key to every open market around the world.” Others are not sure the battle is worth the fight: “Less likely than pharmaceuticals!” said Jackson. C&I
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STRONGER TOGETHER Belonging to a buying group can boost independent operators
These buying groups really come into their own when it comes to things like helping independents with Point of Sale (POS) material, product and pricing” - Jeff Rogut, AACS
he convenience world can be a brutal and uncompromising one, and the battle to achieve profitability is certainly not being made any easier by the aggressive pricing policies of the major supermarkets.
While all convenience stores must face up to this challenge and many others, there is no doubt that independent operators are significantly more vulnerable than stores which belong to chains or which are part of a franchise. Independent operators who own their own store or group of stores are typically highly innovative entrepreneurs with the confidence to back themselves to make a success of their business. However, while there are advantages to not being tied to the bureaucracy of being part of a larger organisation, a lack of scale can limit an independent operator’s ability to buy products at the same low prices as large supermarkets and franchises. The answer for many is buying groups, who primarily exist to help independent convenience retailers interested in buying similar products, gain leverage through their combined purchasing power. That leverage ultimately generates preferable buying prices and contract terms, saving the retailer effort through reducing internal procurement resources and enhances profitability by allowing them to focus on areas in which they excel. The Australasian Association of Convenience Stores (AACS) says that buying groups have become an important and established part of the industry landscape. The organisation’s Chief Executive Officer, Jeff Rogut, says that UCB and New Sunrise are among the most prominent of them – with a combined membership of around 2,000 – although there are also a number of smaller groups. “These buying groups really come into their own when it comes to things like helping independents with Point of Sale (POS)
48 February/March 2020 | C&I | www.c-store.com.au
material, product and pricing,” said Mr Rogut. “And then, depending on the arrangement between the group and the operator, they may help with store branding, promotions, and marketing programs. And their knowledge of all the trends can really help with store planning.” Buying groups then can deliver a range of benefits to independent stores. Including delivering merchandise and promotional programs that help members achieve consistent value on all goods and services; improving member buying processes; giving members access to a huge range of leading brands at competitive pricing; providing members with specialist advice to make product range decisions and supply chain processes easier; and managing trade partner relationships on the behalf of members so they can stay focused on achieving their core mission. And buying groups understand that independent operators know their community and its shopper expectations better than anyone and want to make their own decisions. UCB Chief Executive Officer, Darren Park, says the group recognises that different stores will require different services. “For example, not all UCB member sites have the retail space to accommodate each and every activity. Members for many reasons may also decide that certain products don’t have a compelling shopper-centric reason for being ranged in their stores.” While buying groups offer a comprehensive suite of price files, planograms and market insights, UCB says it knows that members will ultimately execute based on their deep local insights and it supports that local approach. “UCB is an organisation that serves and celebrates independent retailing and we support with insight and industry experience the many members who trade very successfully to connect to
INDUSTRY NEWS the communities they serve using their own retail brands,” said Mr Park. Similarly, New Sunrise says a ‘one size fits all’, cookie-cutter approach to retailing doesn’t work, and that it believes that customisation and premiumisation of offer to be the way to go. While price is a critical consideration for shoppers, C-stores have a bigger opportunity to offer customers ‘value’. Buying groups can guide independents on the best ways to maximise their natural advantages and create loyalty to the smaller store format, including being more easily accessible to customers. While the fundamental benefit of a buying group is its ‘buying power’, in the fast-changing convenience environment, having the ability to ‘buy better’ is only one element in the retail equation. New Sunrise National Merchandise Manager, Joseph Alessi, says the company offers a complete retail system which offers support across all aspects of modern-day retailing. “Not only is it important to buy better but we focus on selling more,” he said. “For New Sunrise, it’s not just about the buying better but also selling smarter. This will result in banking more.” New Sunrise says an example of how this works in practice is its customisable promotional activation program which offers operators guides on which products to place on gondola ends and counter units, and how to measure the activation of this. “Other benefits of membership include access to New Sunrise support office, which include in-house designers, planogram team, store layout and development support, category management and more,” said Mr Alessi. “Retailers also have access to a locally based Retail Development Manager, with each having unique retail experience and knowledge, offering monthly face to face and on phone call, ability to offer in store or classroom style training, food suggestions, coffee/barista training etc.” UCB says it also takes a thorough approach to the identification and assessment of its member needs. “We undertake sourcing activities such as market research, trade partner evaluation, contract negotiation and supply chain management,” said Darren Park. “UCB have been working in Australian convenience for 25 years and many of our members have been with us since the very beginning so that’s a big vote of confidence in both UCB’s program and the value members place on the role we play in their sales and profit numbers.”
As well as branding. UCB’s proprietary brands include fast&ezy café eroma and myLocalstore, which they said offer the look and feel of a franchise, without the fees. These brands are offered on a case by case basis, under mutual agreement with UCB members. Similarly, New Sunrise has a multitude of brands and options available to stores with a focus on customisation and premiumisation. Branded options include Sunrise Convenience, Enjoy Local, Jill & Jack Daily, and others. Or alternatively, the group can assist in customised branding. All New Sunrise marketing materials reference a branding slogan of ‘Enjoy Local’, and not the New Sunrise name, lending to the important role that each store plays in their local community. There’s little doubt that as the Australian retail landscape changes, independent retailers will need to work collaboratively to maintain their competitiveness and relevance. Stores need to offer sensible retail pricing and be at the forefront of trends affecting the convenience landscape. Buying groups can help convenience stores find ways to differentiate themselves from their competition and further cement their intimate relationship with the community they serve. And while offering an invaluable service to independent stores, they also exist to benefit trade partners, too. Including expanded availability and market share across what might have been once a less organised trade channel, increased access to industry insights and data, and enhanced category buyer relationships.
AT A GLANCE • As the Australian retail landscape changes, independent retailers will increasingly need to work collaboratively to maintain their competitiveness and relevance • Buying groups can help independent convenience retailers who are interested in buying similar products, gain leverage through their combined purchasing power • In the fast-changing convenience environment, having the ability to ‘buy better’ is really only one element in the retail equation • Buying groups understand that operators value their independence, and recognise that different stores will require different services
Jeff Rogut AACS says a key consideration for many stores considering joining a buying group is that they can still have true independence and are not being asked to sign up for a franchise arrangement or anything like that. “Given that stores have the freedom to select which elements work for them and which parts to sign up for, there really are no downsides to buying group membership,” he said. “However, it is very important that operators fully embrace the concept and truly buy into it. They need to properly execute promotions and price deals, and work with the buying group to everyone’s benefit.” C&I Convenience & Impulse Retailing magazine would like to thank AACS, UCB and New Sunrise for supplying information for this article.
Another advantage buying groups offer independents is access to special promotional deals, commonly supported by extensive Internal and external POS and help drive both foot traffic and profit. February/March 2020 | C&I | www.c-store.com.au 49
DARREN PARK CEO United Convenience Buyers
To create an understanding of your product – it’s so important that your shopper understands how the product is going to make a difference to their lives in some way.”
NEW PRODUCT DEVELOPMENT AND SPEED TO SHELF A
n everyday challenge of NPD marketing is delivering NPD brand or pack availability across the Convenience landscape. From a retailer’s “control what you can control” perspective, what works is surprisingly simple, make your brand easy to range by helping maximise its physical availability, especially when it comes to high quality NPD. In Australian Convenience, it’s very common for NPD & Speed to Shelf distribution, to be seen only as a Sales team P&L investment. Why does initial Speed to Shelf have to be managed in this fashion? Encouraging fast instore availability of a product close to point-of-purchase, is a great way to drive initial trial and potentially rapid re-purchase? Granted, whilst this may not be the most Instagrammable approach, surely being able to ignite NPD awareness instore right now, is the ultimate experiential or event marketing opportunity? Why again is this process not seen as a collaborative or shared effort, between Sales and Marketing P&Ls? We’d all be hard pressed to find a retailer who doesn’t like receiving something for free or for very little investment, with the simple request that this product is placed instore in the right place and with the right price. From an NPD perspective, this shared investment approach could be a veritable gold mine of opportunity. Some of these opportunities could be; To create an understanding of your product – it’s so important that your shopper understands how the product is going to make a difference to their lives in some way. Why not allow this to happen instore? 50 February/March 2020 | C&I | www.c-store.com.au
• Build trust in your product – in many cases, it’s easier to buy what we always buy. Many shoppers need to be persuaded to try something new. Allowing your NPD to be trialled in a retailer’s outlet that the shopper frequents regularly, is possibly a trial location that is trusted. • Build capability to measure success by engaging with your shopper in the real world – measures such as Brand Perception, Likelihood to Purchase and even ROI can be measured in real world conditions. Millennial and later generations are a growing proportion of Convenience shoppers and look to learn about brands from their peers and families. In particular, they look to trusted people who have direct experience of the product. They want to hear from those that have actually tried the product. Overall, the investment in a retailer-led and sponsored Speed to Shelf program, would in many cases be much lower than those of a large experiential brand activation. And in all probability, would be so much faster and more timely, than a campaign of randomly offering products to strangers, with no clear path to purchase association. Ultimately, Brand owners who use a retailer-led Speed to Shelf program, could expect to learn a range of insights about their consumers, reasonably quickly. They also have the capability to learn exactly how their NPD is performing, every step of the way. Today, that’s an opportunity to be grabbed by both the Sales and Marketing teams, working collaboratively. Until next time,Darren Park C&I
THE IMPORTANCE OF AN OMNICHANNEL STRATEGY
don’t know about anyone else, but I’m glad I’m the other side of another Christmas rush. Work is always busy in the lead up to the end of the year, and I always seem to find myself doing last minute shopping for family on Christmas Eve… hence the large number of very unthoughtful gift cards I seem to buy. This year, I couldn’t help but notice that the Black Friday sales seemed to run right up to Christmas, which felt a little bit ominous for the future of bricks and mortar retailers. When we talk about the ongoing trend of consumers shifting their purchasing online, I often hear people in our industry say things like, “that won’t impact us, we’re convenience you can’t put that on-line!”. Well, sorry, but you are wrong. Online channels and the integration of these with physical stores are providing unique and compelling customer offers that are indeed very convenient. Retailers who ignore digital trends and remain squarely in their own channel will lose to those that develop good omnichannel strategies that are well marketed and enable them to leverage the benefits from each channel to provide their customers with a consistent experience that builds loyalty by offering more options to customers that shop with them. So, what is an omnichannel strategy? Isn’t that just another buzz word for multichannel? No, not quite. Multi-channel means you operate within several channels such as the internet, mobile applications and in-store. Omnichannel strategies go a step further by taking into consideration the entire customer journey and connecting their channels in a way that makes it seamless for the customer. These strategies contemplate that customers may interact with multiple channels in their ecosystem before making a purchase. I think that Sephora (a progressive makeup shop for those not familiar) does a great job of this. You can use their mobile application to purchase products online and if you’re a member it keeps a history of your purchases so it’s easy to top up the products you regularly use. In the app, you can also order a product to be delivered, or if you’re shopping in-store, the app serves as a great resource for browsing
new products and viewing information and reviews from other customers. Other examples are how some retailers offer real time availability of stock that enables the customer to ‘click and collect’ from the store, or at Caltex how we’ve enabled customers to pay for fuel at the pump using FuelPay, because we know that sometimes customers don’t want to come into the store. Further evidence that omnichannel strategies are the winning formula for retailers and e-tailers alike is the trend of major e-tailers moving into the bricks and mortar retail space. Amazon is a great example and one of the largest e-tailers in the world who started dipping their toe in the water of bricks and mortar retailing back in 2015. Since then, they’ve opened bookstores, Amazon Go (which is at the cutting edge of frictionless payment technology) and of course their merger with Whole Foods Market. So, why are they doing this? It’s because it is estimated that e-commerce will make up approximately 22 per cent of global retail sales by 2023. What Amazon also knows is that it is very rare that any consumer purchases 100 per cent of their products through one channel, but rather a blend of them. So, by having a strong omnichannel strategy, they can meet consumers’ needs and keep the customer within their ecosystem. C&I
SKYE JACKSON Head of Merchandise Planning Caltex Australia Limited
Retailers who ignore digital trends and remain squarely in their own channel will lose to those that develop good omnichannel strategies.”
February/March 2020 | C&I | www.c-store.com.au 51
The Olympian Products Executive Director on his passion for bringing better health to consumers Tell me about your product range?
e look for products that are niche, healthy, innovative and that stand out from the normal over-the-counter products.
Your products have an emphasis on health, where does this passion come from?
We believe there is too much sugar in drinks, too many false claims about products and that people buy these products because there aren’t healthier options available. We wanted to focus our product range on those without artificial colours or preservatives and only use natural sweeteners so where they are used, it’s a better option. And our products still taste great while also having either no sugar, low sugar or the least calories as possible.
Are consumers demanding more low sugar options?
They haven’t been demanding it, but our focus has always been on low sugar. Even with the companies we work with, we look at what options they offer in terms of low GI, gluten free etc. We just want to make sure what we have on the market appeals to all consumers but still tastes good.
What have been some of your favourite products to date?
Our sparkling water Samaria is one of my favourites. It’s a natural sparkling water with a naturally high pH level, rather than using additives to achieve a high pH. It also has the lowest sodium and magnesium on the market, so it’s definitely not a standard bottle of water, it’s very good for you. And also our LOUX Plus N Light sodas, which are low GI and great for diabetics or people minding their weight. It’s also gluten free and has only natural sweeteners.
What made you look to products low in artificial colours and preservatives?
This is so important to us that we look to it in our manufacturing company as well. It’s because of the trend away from colours because of emerging research into their affects, artificial sweeteners as well, which can cause 52 February/March 2020 | C&I | www.c-store.com.au
various issues to consumers and to children if they drink them. We opt for natural products across our range. Even some of our juices don’t use any colours.
Tell me about Olympian’s commitment to sustainability?
We look to biodegradable packaging options, which sets us apart from the market as well. Sustainable packaging is important to us and we’re looking to better packaging options, changing our labels from PVC to more recyclable options and looking to lower our carbon footprint in as far as reducing how much energy it takes to manufacture products.
What are other important factors for Olympian products?
We want to make sure all our products have the required certifications, for example our Kosher, vegan, low GI and gluten free products all have the correct certifications to prove they comply with requirements.
Where can consumers find Olympian products?
At the moment we are stocked in some cafes and restaurants, as well as select IGA stores and we’re trying to increase distribution. C&I
Have a new product you’re busting to share? Then get in touch with C&I Magazine.
We’re the perfect platform to share your exciting product news or updates with a targeted, industry-based audience of more than 21,000 readers. That’s 21,000 pairs of eyes getting the low-down on what you love about your product, in the words you’d like it told in. Each issue we feature one product our team has found to be outstanding in innovation, taste and/or value which we award the C&I Choice. Our team take awarding the coveted spot seriously, and regularly sample products to find the perfect fit for the next edition. Product winners are given a prominent feature in our Product News section, where we profile exactly what makes it so deserving. So how can you nab this spot? All you have to do is get in touch, send a sample to C&I for product testing and tell us a few details about what makes it great. Enquiries can be made to firstname.lastname@example.org or call 02 8586 6145.
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TWENTY YEARS OF IMPERIAL TOBACCO How they have negotiated the changing landscape of tobacco in Australia
It was 1999, the year human population surpassed six billion, when President Bill Clinton was acquitted of perjury, when New Zealand elected its first female Prime Minister and when Australia voted against being a republic.
It was also the year Imperial Tobacco Australia and New Zealand began its two-decade journey, thus far, to become one of Imperial Tobacco Group PLC’s major contributors. It all started when Imperial Tobacco was established to coincide with the merger of WD & HO Wills (Australia) Ltd and Rothmans Holdings Limited as British American Tobacco Australia. At the time of the proposed merger there were concerns competition may be reduced in the Australian marketplace. But the Australian Competition and Consumer Commission agreed to permit the merger to proceed, on the condition another tobacco company entered the Australian market. Imperial Tobacco Group PLC was invited to enter the Australian market. And on September 6, 1999, Imperial Tobacco Australia and New Zealand started its journey, with a portfolio of cigarettes, roll-your-own tobacco and cigarette paper trademarks previously owned by Rothmans or WD & HO Wills. The $325 million purchase gave Imperial Tobacco Australia an opening market share of 17%.
It has been a tumultuous 20 years since those early days, with heavy regulatory challenges including: the implementation of plain packaging with health warnings, multiple excise increases and a failure of government to consider the safer alternatives in the NGP portfolio. General Manager Wayne Merrett started working with Imperial in 1999 as a National Logistics Manager, after previously working with Metcash, British American Tobacco and Philip Morris International.
It was only two years before he became the GM of New Zealand ahead of taking on a role as the Eastern Europe Development Manager. In subsequent years he was the GM in Australasia, Russia and Belorussia, North Asia and Asia, before returning to Australasia in May 2018. Mr Merrett said the past 20 years had been an extraordinary journey. “As a company many didn’t believe we would survive, but here we are 20 years later. We survived potential competitor takeovers, working in one of the most challenging markets due to extensive regulations and even now our focus is on our work to open the minds of the Australian Government when it comes to vaping,” he said. “I believe e-cigarettes will be introduced in Australia, the demand from consumers and the increasing volume of international research supporting e-cigarettes will guarantee it. When that happens, we will be ready.” C&I
I believe e-cigarettes will be introduced in Australia, the demand from consumers and the increasing volume of international research supporting e-cigarettes will guarantee it.” Wayne Merrett, Imperial Tobacco
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IS IT SAFE TO VAPE?
With alarming reports emerging from the US, linking respiratory illnesses and deaths to vaping, what are the facts and what do vapers need to know? JOE THOMPSON Imperial Tobacco
he reports coming out of the United States of young, healthy people suddenly developing symptoms of severe lung illnesses like pneumonia are deeply worrying for vapers around the world and those who love them. Sentiment in the media is highly emotional and messages to vapers are confusing. A full investigation is in progress but the results are not yet available so let’s start with the facts: 1. This is a new phenomenon which to date has only been observed in the US, and the US Food and Drug Administration (FDA) and Centers for Disease Control and Prevention (CDC) have linked to e-liquids including those that are illicit or contain unknown substances such as THC (the principal psychoactive constituent of cannabis) and oils. 2. The CDC has warned consumers not to modify products or devices and not to buy products “off the street”. The current reports of illnesses appear to relate to vape devices and liquids that contain vitamin E acetate and other oils. 3. The evidence does not suggest the emergence of a syndrome that has been developing over a period of years. The incidence of pulmonary disease reported to the CDC is low relative to the size of the US vaping population. Estimates from 50 countries suggest at least 40 million adults were vapers in mid-2018, and there have been more than 100 clinical studies on vaping products that show no short or medium term health concerns when used by adult smokers. 4. None of blu’s vaping products contain THC, vitamin E acetate mineral oils or animal fats. blu’s e-liquid ingredient selection is guided by toxicological principles and all blu’s e-liquid ingredients undergo a rigorous assessment process. Vaping is intended to provide adult smokers with a choice and we intend to continue to offer adult smokers high quality products that have been through at least 30 different quality checks during their manufacturing process. We are confident of the quality of our products and e-liquids.
OUR ADVICE TO VAPERS IS:
Choose an established and reputable vape brand. blu is a trusted e-cigarette brand for adult 56 February/March 2020 | C&I | www.c-store.com.au
smokers and vapers from Imperial Tobacco, a global company which employees over 300 scientists and is headquartered in the UK. Don’t vape home-made or illicit e-liquids. Never modify devices or buy products that are not from an established, trusted brand. Vaping products should conform to the highest scientifically-based quality, manufacturing and safety standards. We believe pod-based vape systems offer the best opportunity to ensure that both the ingredients and the generated e-vapour fall within pre-defined and regulated standards. We support regulatory measures that limit the ability for users to alter the generated e-vapour and the ingredients that can be used within them.
VAPING SAFETY: BLU’S ADVICE
If you are concerned about vaping, here is some useful advice: 1. Choose an established and trusted vape brand like blu. blu has been an established brand for over ten years. You can trust that our products, ingredients and the vapour they produce have been put through rigorous scientific health assessments. Whilst no vaping product is without risk, all of our data to date confirms our belief that blu products are likely to carry substantially reduced risks relative to smoking combustible cigarettes. 2. Buy your vaping products from reputable retailers. Always check to make sure the products are properly sealed, packaged and labelled. Follow the manufacturer’s instructions on use. If you suspect your vaping product has been tampered with, return it to the point of sale. Never buy ‘off street’; you don’t know what the product is, how it was manufactured and the resulting vapour won’t have been tested for safety. 3. Opt for a closed pod-based vape system which allows you to be sure both the ingredients and generated vapour fall within pre-defined and regulated standards. Avoid using open system devices for vape dripping or dabbing. 4. Never modify e-cigarette products or add any substances to these products. Never risk vaping home-made or illicit e-liquids or adding substances to your e-liquids.
NEED TO KNOW:
What is vape dripping? The practice of ‘dripping’ e-liquid directly onto hot coils of a vaping device and inhaling the vapour that’s produced. The practice can result in a person inhaling high concentrations of compounds (tetrahydrocannabinol [THC] and cannabinoid compounds), at a strength which may not be safe to inhale. What is vape dabbing? The superheating of substances such as “budder”, butane hash oil (BHO), and “710” which contain high concentrations of chemicals. Superheating substances in this way may not be safe. C&I
What’s coming up in the April May Edition
Don’t miss our April/May 2020 issue where we’ll bring you the latest industry news, hot product releases and insightful opinion pieces from industry leaders. Among our features next month will be a category feature taking an in depth look at pastries, from sausage rolls to pasties and whether the humble pie is still a big seller. We also look at salty snacks and if the potato chip still reigns or if our tastes are evolving to more gourmet fare. We’ll look at chocolate bars and how companies are keeping pace with consumer demands for new and innovative products. We look at personal care and how convenience stores and independent retailers can compete in this area. And we look at the viability of the cashless store in the Australian industry and if the trend is likely to take off here.
PETROL NEWS ROUNDUP DAN ARMES Founder of ServoPro
Hybrid vehicles are becoming more and more popular and are a viable option for consumers in the current market.â€? Dan Armes, Founder of ServoPro
HYDROGEN VS ELECTRIC POWER. W
The merits of hydrogen vs electric cars
hen will electric vehicles (EVs) be a viable option for consumers? When are EVs going to have a real impact on our petrol station businesses? These are the questions our industry is looking to answer. Some say LPG and biofuels are still a viable option. We all know about battery powered EVs and have probably seen one driving around, but what about hydrogen? Car manufacturers such as Hyundai, Honda, Mercedes and Toyota all have hydrogen vehicles on the market. Alfa Romeo, Audi, BMW, Chrysler, Ford, General Motors, Nissan and Mitsubishi have all released concept hydrogen vehicles. If you listen to Elon Musk, battery powered EVs are the only way to go. These EVs are powered by rechargeable batteries that feed electricity to an electric motor.
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A hydrogen or fuel cell vehicle is slightly different and is a vehicle that uses a fuel cell to power an electric drive system. A fuel cell is used to feed electricity to an electric motor by using hydrogen as the source of fuel. Instead of burning the fuel, like our vehicles today do by burning petrol and diesel the hydrogen is mixed with oxygen from the air to produce water. During this process, electricity is produced which is what drives the electric motor and in turn the vehicle. From this process, the only byproduct is water which is so clean you can drink it. Fuel cells are like batteries but they never go flat as long as they are fuelled by hydrogen. So if fuel cells are the way of the future, where are we going to get all the hydrogen from? There are a few ways
PETROL NEWS to produce hydrogen, however, the most favoured way is through electrolysis. Electrolysis happens when an electric current splits water into hydrogen and oxygen. If the electricity is produced by renewable sources, such as wind or solar, the hydrogen will be considered renewable as well. Currently, we are seeing excess renewable electricity being used to make hydrogen through electrolysis. For hydrogen to be a ‘green’ alternative, hydrogen would need to be produced using green energy from solar or wind. Otherwise, the energy used to produce the hydrogen would have to be sourced from our current sources of energy, mainly coal-fired power stations. You may be thinking, if producing hydrogen uses energy, why don’t we just store that energy in batteries and use the battery power to run our vehicles? This is a serious issue and one that supporters of battery vehicles raise when arguing that hydrogen is not a viable option. One of the major hurdles battery-powered vehicles face is the time it takes to recharge the vehicle. Consumers don’t want to have to wait while their vehicles charge when they are used to filling up their vehicles in under five minutes using petrol or diesel. This is where we see one of the benefits of fuel cell technology. It takes the same amount of time to fill up a vehicle with hydrogen as it does with petrol and diesel. In countries like Australia, the distance that a battery EV can travel in between charges is also an issue. Fuel cell vehicles get about the same range as our petrol and diesel
vehicles. Like diesel, hydrogen works just as well to run larger vehicles like trucks where batteries would struggle. If battery vehicles become the favoured technology large amounts of lithium need to be sourced by battery manufacturers. Also, as lithium batteries degrade over time they need to be disposed of in an environmentally friendly way. If all vehicles in the world are running on lithium batteries a lot of waste is going to be created. We are unlikely to see hydrogen fuelled vehicles on Australian roads any time soon due to the availability of hydrogen. The cost is still quite high compared to current vehicle options. For example, the Toyota Mirai is currently being sold in the US for about A$90,000. If fuel cell vehicles are the future for Australia we would most likely see factories around the country producing hydrogen gas from water through the process of electrolysis. Because gas takes up a lot more space, the hydrogen would need to be transported around the country in a liquid form. Petrol Stations would have hydrogen tanks on site and hydrogen dispensers where customers could access the hydrogen to fill up their cars. In the near future, we will see car manufacturers improving the fuel efficiency of petrol and diesel vehicles. Hybrid vehicles are becoming more and more popular and are a viable option for consumers in the current market. It will be very interesting to see as technology improves whether we move towards battery or fuel cell powered vehicles. As an industry, we will be keenly watching for future opportunities to add value to our current businesses. C&I
I have seen first hand the impact knowledge can have on improving the profitability of a petrol station.”
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PETROL NEWS The ACAPMA approved app is now active in NSW and QLD and Mr Everitt says he is looking forward to being part of the technological shake up changing how consumers shop. “Users told us they found it really easy to use and saw the value in it,” Mr Everitt said. “We also saw people would start to use the app to find fuel saving and once they became aware of the shop deals, users would redeem those offers. So there is the scope for longer term behavioural change,” he told C&I Magazine. “Once people become aware of C-store deals in technology they start using those and we’re excited to play a really central role in changing consumer behaviour here in Australia.” Among the national retailers listed as participants are EG Group (Caltex/ Woolworths), Puma Energy, Pacific Petroleum and New Sunrise.
Viva Energy extend Shell license Viva Energy has extended their Shell Brand License by ten years. The agreement will see Viva Energy Australia (VEA) operate on similar commercial terms to their existing license across Shell branded retail automotive fuels in Australia until December 31, 2029. Viva Energy CEO Scott Wyatt said it continues the company’s ‘long history’ of custodianship of the Shell brand. “We are excited and proud to continue that history. The Shell brand is one of the world’s most recognisable brands, and we continue to see its strong value in Australia,” he said. VEA supply close to a quarter of Australia’s liquid fuel and exclusively supplies high quality Shell fuels and lubricants across more than 1,200 service stations around Australia. The company have also completed their purchase of Liberty Oil’s wholesale business, which will see the company extend into regional communities and small business markets. Speaking on the proposed deal in October, ACCC commissioner Stephen Ridgeway said the impact on Adelaide and metropolitan Melbourne, as well as some local areas, was not expected to be significant, given the low share of branded and retail sites in the respective cities. Adding where there was an overlap of Liberty and Viva retail sites in local areas, there was “sufficient competition”. “We identified potential competition concerns regarding some local areas. The merger parties provided further information or implemented changes, which addressed our concerns,” he said.
New EzySt App for cheaper prices A new app developed by former Caltex executives is promising to deliver bowser relief to motorists. The EzySt app, described as a ‘digital marketplace for the petrolconvenience industry’, collates cheaper than advertised petrol prices and retailer specials into the free app, which its creators claim could save users up to 30c per litre. Developed by ex-Caltex executives Ben Everitt and Mick Jarvie, as well as technologist Damian Funnell through Sydney company The Pricing Project (which also runs PriceScape and PriceSync), the app allows retailers to offer deals directly to consumers. Users can access maps with localised prices and plan their route around the deals offered and set in-app preferences, including tailoring relevant product offers. Mr Everitt said there had been positive feedback from consumers, many of whom accessed the app an average of seven times during the 12-week Perth based pilot launched in August. 60 February/March 2020 | C&I | www.c-store.com.au
Charter Hall acquire stake in BP Aus Property investment and funds management company Charter Hall has announced plans to acquire a 49% stake in BP Australia retail sites. The $840 million deal would see the company take a managed partnership in the $1.7 billion portfolio of 225 long weighted average lease expiry (WALE) convenience retail properties currently leased to BP Australia. The sites, which consist of the majority of BP owned convenience retail properties, have a WAVE of 20 years and staggered lease expirations between 18-22 years. The partnership will be split as Charter Hall Retail REIT (30%); Charter Hall Long WAVE REIT (ASX: CLW) (50%); and Charter Hall Group (ASX: CHC) (20%). The Charter Hall Retail REIT is reported at $137 million, to be funded through asset divestments.
Why do we need light hydrocarbon separators and what are they? Oil and fuel spills on forecourts wash into the storm-water drainage network during rainfall events which can pollute our waterways. The EPA guidelines requires that we do not pollute our waterways. A gravity light hydrocarbon separator is recognised by authorities as a 'best practice' to protect our waterways from pollution. Furthermore, the risk of spillage up to a full tanker compartment also needs to be mitigated. An emergency spill capacity storage with an autoclosure device effectively mitigates this risk. The Clereflo Forecourt separator by Envirotank is a full retention separator constructed using its FRP tank technology to retain, on site, this maximum spillage capacity. They work to effectively separate oily water, reducing light hydrocarbons discharging to below the required class 1 limits of 5mg/litre of rainwater. The engineers at Envirotank can specify and size a separator to be compliant for all low to high risk sites with or without stormwater management plans. To learn about this and other exciting products, contact Envirotank, the experts for all your separator requirements and the fuel industry’s most trusted tank manufacturer. Visit www.envirotank.com.au or phone 1800 818 354 for more information.
100% of the Outer Wall Surface is Monitored and Visible for Inspection and Leak Testing Smooth Molded Surface
True Double-Wall Construction Means High Strength
Inner Tank Wall
High Strength Ribs
HydroGuard® Interstitial Monitoring Fluid
Ü Envirotank double-wall tanks are fully compatible with all modern fuel types including alcohol blends & low sulphur diesel.
Ü Double-Walled Envirotanks fully comply with the secondary containment requirements of AS 4897. This is in addition to the design meeting AS 1940 and UL 1316.
Because What’s Inside Matters!™
Ü Two (2) structural walls provide the ultimate in leak prevention.
Ü The Hydroguard® System is a
proven hydrostatic testing system, that continuously monitors the integrity of the inner & outer tank walls in all installed conditions.
Corrosion-proof Fibreglass Underground Storage Tanks
Visit www.envirotank.com.au or call 1800 818 354 for more information
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PETROL NEWS C&I reported a 7-Eleven spokesperson said at the time that “The sale results reflected the pent-up demand for 7-Eleven properties, reflecting the voracious demand for assets leased to Australia’s number one convenience retailer.” “The buyers were a mix of existing 7-Eleven landlords who knew the quality and underlying value of the assets they were purchasing, and firsttime purchasers who were determined to own a 7-Eleven.”
Caltex: take over bids and rebrand It’s been a busy few months for Caltex Australia, between rebrands and takeover bids. In mid-February, the petrol retailer were considering Canadian giant Couche-Tard’s $8.8 billion takeover bid, after rejecting their lower, $8.6 billion bid in November, which Caltex described at the time as 'undervaluing' the company. The Canadian conglomerate made the higher and final bid after being granted access to non-public information from Caltex in January. The bid requires approval from the Foreign Investment Review Board. Couche-Tard hasn’t been the only one to show interest. Caltex confirmed they had been approached by UK Group EG Group, who had shown interest in acquiring part or all of Caltex. There were also reports EG Group had been in talks with Macquarie Group about forming a partnership to make a deal. In other news, Caltex will soon transition its branding to Ampol, reviving the Australian Motorists Petrol Company name it retired 25 years ago following the Caltex merger. The rebrand follows notice from former owner Chevron they were ending their licensing agreement. Ampol signs are set to pop up this year in a staged three-year rollout.
7-Eleven auction sell off Australia’s largest convenience and fuel retailer 7-Eleven Australia will auction off 18 sites this month in what’s expected to be a hotly anticipated auction. The east coast sites will be sold off individually through Burgess Rawson on February 25, with auctions in both Sydney and Melbourne. The sites – six in NSW, two in QLD, five in VIC and five in the ACT, boast brand new 12-year leases and annual fixed compounding three per cent increases. And according to website Real Commercial, the combined sales could total $70 million. Among the sites up for sale is a 6,480sq site (of which 2,500sqm is vacant land) in Wantirna, Victoria with an advertised annual income of $327,083. Other sites include Wahroonga, South Penrith, Maryville, Plumpton and Mayfield – all NSW; Pascoe Vale and Pascoe Vale South, Corio, Wantirna and Upwey in VIC; Wanniassa, Mawson, Spence, Melba and Giralong in ACT; and Coomera and Nambour in QLD. The bulk-auction is understood to be the last time the chain will offer sites in a portfolio style sale and follows an auction in October which saw 7-Eleven net $78 million for 15 sites in an auction extravaganza that had more than 350 people show up to the live-linked event. 62 February/March 2020 | C&I | www.c-store.com.au
BP Australia new Supercars supplier BP Australia have replaced rival Shell as the official fuel supplier for Supercars. The company have signed a three-year deal to supply more than 350,000 litres of their specially formulated E85 blend fuel across the Supercars Championship. All Supercars and Dunlop Super2 Series cars will also feature BP Ultimate branding as part of the deal. The first cars racing on the fuel will hit the track at Tailem Bend on February 18 in a pre-season test which has been named the BP Ultimate SuperTest. The petrol blend is exclusive to Supercars and not available for customer purchase. In a statement on the partnership, BP Australia vice president sales and marketing Brooke Miller said the partnership was a natural fit for the company. “Our pledge is to ensure optimal engine performance for all teams and their vehicles on the track from 2020,” Ms Miller said. “We’re looking forward to the three seasons ahead and collaborating with this iconic racing series to provide a platform of innovation for not only the drivers, but for all Supercars fans.” Shell’s three-year deal to supply the Supercars, signed in 2017, was due for expiry.
Petroleum equipment and services
Action Installation & Services
Action Installation & Services was formed in 2006 when Michael Mintilakis and Ron van der Meer decided to create an installation and service company that was second to none. Over 50 years of combined fuel industry experience and knowledge has enabled them to build a business which continues to lead change in the downstream petroleum industry. Action Installation & Services continually strive to achieve the highest standards of environmental and safety performance, through the use of well informed, highly trained people. Action currently employs 40 staff across admin, installation, pump and electronic service. Action Installation & Services strives to satisfy the requirements and expectations of every client every time in a professional and cost effective manner. Regular reviews ensure the quality of all products and services and business operations; and that all employees have appropriate job skills training; and quality management, contractual obligations and ongoing process improvement is maintained.
Elgas SWAP’n’GO® is the leading BBQ gas exchange program brand in Australia. The program offers your business the opportunity to increase sales and profits with a very well-known and respected brand. SWAP’n’GO® also provides your customers with fast, safe and easy transactions. Out-of-date bottles are accepted at no extra charge. You can add to or replace your declining refill sales, and low margins, with a reliable, convenient and secure swap program that has low labour costs for you. SWAP’n’GO® maintains a record of excellence in safety, with comprehensive staff training in the safe handling of LPG. Elgas SWAP’n’GO® is backed by a national network of refilling plants and branches to ensure that your business receives quality service. SWAP’n’GO® also creates a massive summer stockpile to provide uninterrupted service during the seasonal peak periods. Contact Elgas today to become a SWAP’n’GO® dealer.
Contact: Michael Mintilakis Phone: 1300 785 425 Email: email@example.com Web: www.actioninstall.com.au
Phone: 1300 652 003 Email: firstname.lastname@example.org Web: www.elgas.com.au/swapngo
Gallagher Fuel Systems
When you see an ATM in a supermarket, convenience store or Petrol location, there’s a good chance it’s from Cardtronics, a proud supporter of the convenience, café and fuel industries. Cardtronics understand the needs of a variety of establishments and the commercial environments that retailers in the P&C channel face. Cardtronics know that you need your ATM up and running without any issues to service your patrons and provide them with safe and easy access to cash. For your business premises a Cardtronics ATM will mean more customers with cash to spend in store, reduced eftpos fees, 24-hour service and support. It is a fact that a percentage of the cash withdrawn from a Cardtronics ATM is spent on the premises, which will improve your revenue streams. At Cardtronics we know from proven experience that an ATM can deliver more sales to your business. If you want to create more foot traffic in your business, an ATM does that. Cardtronics is Australia’s largest independent ATM provider and part of the global Cardtronics brand. We operate a real 24 hour service, we operate our own technically trained help desk, offering nationwide support with a national network of spare parts warehouses and dedicated in-house technicians.
Gallagher Fuel Systems designer, manufacturer and supplier of quality fuel dispensing systems. The innovative PULSE fuel dispenser range combines advanced electronics, corrosion resistant metal work, the highly accurate Tatsuno meter and a modular design. All Gallagher PULSE dispensers are internet capable. With the Data Centre application, each dispenser performance can become visible, via any internet enabled device. This powerful tool with its automated configurations and tools can fix issues remotely and reduce site visits. It brings pro-active servicing to the industry and significantly reduces overall servicing costs. Gallagher Vapour Recovery solutions fully comply with environmental regulations, provide comprehensive compliance reporting and reduce forecourt pollution, creating a healthier working environment and community. Gallagher’s latest edition to the PULSE range are the 5 product dispensers. The pressure only model offers one of the smallest footprints at only 2100mm. Mixed pressure and suction models are available with integrated LPG as an option.
Phone: 1300 305 600 Email: email@example.com
Contact: Derek Hjelm, Business Development Manager Australia Phone: 0424 164 814 Email: firstname.lastname@example.org Web: www.gallagher.com February/March 2020 | C&I | www.c-store.com.au 63
Flowsell Flowsell, providers of an innovative gravity-based drink merchandising system, say that when it comes to saving staff time, managing stock and increasing sales, “it’s all about gravity”. Cool rooms with flat shelving, incur a range of ongoing and unnecessary costs. By comparison, Flowsell’s drink merchandising system, reduces labour costs removing the need to double handle products and continually face up product. The system also ensures proper FIFO (first in, first out) stock rotation, reducing product wastage and – better still – fridges maintain an attractive, fully stocked appearance as customers buy throughout the day. The Flowsell full rack drink system is used extensively in all areas that retail drinks from a cool room. This includes service stations, convenience stores, bottle shops and function centres. Other options available from Flowsell include a specialised Retrofit Bottle Slide Kit. This kit enables a customer to convert an existing flat shelf into a gravity feed system. This system has been successfully used in convenience stores, bars, sporting clubs, cafes, bakeries, fast food outlets and anywhere that has a fridge with flat shelves. Flowsell also supplies a gravity feed milk trolley for use in supermarkets with a dedicated cool room. Free your staff to deal with customers in store and let gravity do the grunt work. Contact Flowsell on www.flowsell.com.au or Ph: 03 9708 2276 to find out how you can start saving today. Advertisement -14- C&I Dec-Jan 2019_.pdf 1 12/11/2018 12:28:12 PM
10 Sonia Street, Carrum Downs, VIC 3201 Phone: (03) 9708 2276 Fax: (03) 9708 2279 Hours: Mon - Fri: 9am - 5pm www.flowsell.com.au
Gascorp Pty Ltd – Budget Petrol Strategic Price Management C
Be informed of what you need to know when you need to know it and make decisions that will improve your bottom line. Access the latest pricing data Receive alerts Informed Sources provides solutions that will help you achieve your business goals www.informedsources.com
Accurate, Reliable, Timely
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Budget Petrol, established in 1985 is one of the oldest and largest groups of independent service stations in NSW, with over 60 locations in the Sydney Metropolitan area. Our Retail stores strive to provide our customers with Quality Fuel at Budget Prices. Our Wholesale arm – Gascorp Pty Ltd offers independent operators a business model which enables them to run their own business without interference, while utilising the backing of a competitive, professional and reliable brand. We offer competitive Mobil supplied fuel prices, Valvoline Oil, LPG Supply, In Store Programs, ATMs, Banking Partners and Environmental Regulation Support. We also operate our own fuel transport company which allows us to offer the highest levels of service for fuel deliveries and logistics. We can help independents looking to: • Lease their property to a reputable company • Sell their property freehold • Reimage and brand their site • Change fuel supplier and retain their independent brand
Contact: Diann Melas Phone: (02) 9564 2355 Email: email@example.com Web: budgetpetrol.com.au
To be listed here, please contact Safa de Valois on 0405 517 115 or email firstname.lastname@example.org
Shipman King Pty Ltd Shipman King Pty Ltd is an Australian designer, manufacturer and distributor of equipment for the service station forecourt industry. Under their ESKAY brand, Shipman King’s long history has enabled the company to become a major supplier of this equipment throughout Australia, New Zealand and the Pacific region. With an extensive product range and ability to service the whole of Australia, Shipman King is truly your one stop shop. Australian owned, Shipman King’s product range includes: •F ill Adaptors and Caps, Dip Cap Assemblies •U pflow Vents, Pressure Vacuum Vents • Dip and Fill Product Markers •V apour Recover Equipment, Stage 1 and 2 • Overfill Prevention Valves complete with aluminium tube ready for retro fitting
• Monitoring Wells and Ground Boxes • Durapipe PLX Polyethylene Piping System • Underpump Containment Sumps and Browning Spill Safe Boxes • Adblue Equipment • Sloan-LED Canopy Lights • Cim-Tek Spin-On Filters • Husky Fuelling Products • Aboveground Tank Equipment
For their complete product range, please visit Shipman King’s website. Contact: Nigel Howlett Phone: (03) 9459 9900 Email: email@example.com Web: www.shipmanking.com.au
Other suppliers Abacus Stocktaking Services Pty Ltd Accor Action Installation & Services Pty Ltd Active Eye Advanced Lighting Technologies Australia Inc Aitken Rowe Testing Laboritories PtyLtd Augusta Properties AusSport Pty Ltd Australian Enviro Services B&B Industrial Benchmark Business Sales & Valuations BP Australia Caltex Australia Capricorn Society Ltd Cavvanba Consulting Pty Ltd Coffey Environmental Services Commercial Indemnity Pty Ltd Compac Sales Pty Ltd Conservelec Pty Ltd Douglas Partners Earth Air Water Consulting & Monitoring P/L ECL Group Energy Action Environmental Monitoring Solutions Pty Ltd Envirotank Pty Ltd Envirowest Consulting Pty Ltd EquipCo ETP International Pte Ltd F&M Supplies Fuel Data Solutions Fuelgear Geo-Logix Pty Ltd
Gilbarco Australia HMC Pty Ltd Intertek Testing Services Jeffery & Katauskas Pty Ltd Jon Jen Trading Pty Ltd Leighton O'Brien Pty Ltd Liberty Oil Liquip International Pty Limited Metro Petroleum Mobil Oil Australia MPHP Architects Pty Ltd MTAA Superannuation Fund Pty Limited North Cross Australia Pty Ltd Northern Petroleum Equipment Services Pacific Guage Park Pty Ltd Perich Constructions Pty Ltd Perisale Australia Pty. Ltd. Petroleum Tank Technology Precision Stocktaking Services Puma Energy RCA Australia Pty Ltd SGS Australia Pty Ltd Spill Station Australia Pty Ltd Tank Solutions Pty Ltd Tennco Pty Ltd The Remediation Group Trans Tasman Energy Group Trax Retail Solutions Unigas Pty Ltd United Petroleum Urth Energy Valvoline Wayne Fuelling Systems
SI Retail SI Retail is an Australian owned family business that has been operating since 1974. With extensive technical knowledge, their professional team have developed a range of versatile shop fittings and point of sale solutions to suit a variety of retail industries. With the petrol and convenience industry in mind, SI Retail has created a range of displays for retailers to showcase their products in the most costeffective and efficient ways. This will assist your business by driving product sales, whilst decreasing operational costs and maintaining a neat and attractive environment to promote a positive shopping experience for your customers. Whether you require signage, shelving, shelving accessories (such as roller gravity shelves, LED lighting or shelf management), shopping baskets, hooks or data strips, SI Retail have the solutions for you!
Phone: 1300 434 775 Email: firstname.lastname@example.org Hours: Mon - Fri (8.30am - 4:30pm) Web: www.siretail.com
Petroleum equipment and services C&I Supply-Find is a detailed listing of suppliers of products for resale, business services, maintenance providers, and manufacturers and suppliers of capital equipment for shop and forecourt. It is included in every issue of C&I Retailing Magazine, six times per year to a circulation of around 22,795 businesses. The rate for posting in C&I Supply-Find is $2,950 + GST for one full year (six print issues and 12 months on our website). Bookings are a minimum of one year. For a 1/2 page, the rate is $5,900 + GST per year.
For all advertising enquiries with C&I Media, please contact
Safa de Valois Mobile: 0405 517 115 Email: email@example.com
February/March 2020 | C&I | www.c-store.com.au 65
C&I Special Offer
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$15 Min. 4 per order
The future is exciting.
Terms and conditions: Offer valid until 31.03.20, while stocks last
FOR ORDERS CONTACT YOUR EXCLUSIVE PREPAID DISTRIBUTOR ON:
P 1300 730 343
25GB with Auto Recharge for $30
When you purchase a $30 Starter Pack and activate on Combo Plus with Automatic Recharge. (Includes 10GB + 15GB Extra Data with Auto Recharge) The future is exciting.
Offer ends 31.03.20. Data for use in Oz. Extra Data for new and existing customers on all Automatic Recharges made between 17.09.19 – 31.07.20. Prepaid Combo Plus customers only. Terms and Conditions: For $30 Combo Plus all inclusions expire after 28 days or upon next recharge, whichever occurs first. Not for commercial or resale purposes. Personal use only. Starter Pack Offer: Available where advertised. Limit 2 per customer. Discount on full price only and is applied at point of purchase. Not transferrable or redeemable for cash. All offers subject to change. Once data inclusion is used, you will need to purchase a data add-on or recharge to continue using data. Vodafone $30 Starter Pack/Recharge terms apply – see packaging/voucher for info. Recharge costs additional. Extra Data: Extra Data available to prepaid customers (‘Eligible Customers’) who purchase and activate a Prepaid $30 and above Combo Plus Starter Pack (‘Eligible Recharge) and opt in to Automatic Recharge between 17.09.19 and 31.07.20 (inclusive) unless extended. Extra Data is available on the Starter Pack plus on every Automatic Recharge made by 31.07.20 (‘Eligible Recharge’). Extra Data: 15GB on $30 Prepaid Combo Plus Starter Pack (10GB included, total 25GB). Applied within 72 hours following successful activation of Starter Pack. When you activate your Vodafone SIM you accept the Vodafone Standard Form of Agreement. A summary and the full agreement are available at vodafone.com.au/sfoa. All offers subject to change. Recharge costs additional. Not transferrable or redeemable for cash. For new customers prescribed ID and user details must be provided. To find out more about Automatic Recharge head to vodafone.com.au/atr.
E firstname.lastname@example.org | W yesdistribution.com.au
C&I Special Offer
Â˝ PRICE $30 Starter Packs
$15 Min. 4 per order
The future is exciting.
Terms and conditions: Offer valid until 31.03.20, while stocks last
For Orders contact your Exclusive Prepaid Distributor on P 1300 730 343 E email@example.com | W yesdistribution.com.au
C&I Retailing Magazine and C&I Expo became a division of the Intermedia Group in July 2014. Australia’s impulse and convenience market inclu...
Published on Feb 21, 2020
C&I Retailing Magazine and C&I Expo became a division of the Intermedia Group in July 2014. Australia’s impulse and convenience market inclu...