C&I Retailing Magazine February-March 2024

c-store.com.au FEB/MAR 2024

C&I Expo 29-30 October 2024

C&I Expo

Join Australia’s leading Petrol & Convenience The ultimate destination for convenience retailers expo to connect with retailers from 29-30 October 2024 across Asia Pacific

Join Australia’s leading MCEC, Melbourne Petrol & Convenience expo to connect with retailers from across Asia Pacific

MCEC, Melbourne

www.candiexpo.com.au The ultimate destination for convenience retailers

29-30 October 2024 MCEC, Melbourne The next Convenience & Impulse Retailing Expo will be held on 29 and 30 October in central Melbourne, providing an unmatched opportunity for suppliers to showcase products, and network with retail owners and buyers from across the country and beyond.

C&I Expo puts you in reach of industry connections who could help grow your business. Plus, you can pick up essential insights, data and trends at the C&I Industry Symposium.

We keep our stand prices low to help you maximise your trade show budget.

If you’re a supplier, manufacturer, importer or distributor wanting to supply key P&C retailers like service stations, major convenience chains, independent convenience and grocery stores, mini marts, newsagents, cafes and commercial hospitality sites, enquire now about exhibiting at the only national trade event that is open to all banners and brands.

“WE HAVE COME TO LOOK AT NEW PRODUCTS AND OUR GOAL IS TO COME AWAY FROM THE SHOW WITH A COUPLE OF NUGGETS AND OPPORTUNITIES THAT WE HADN’T THOUGHT OF BEFORE. THERE ARE CERTAINLY A COUPLE OF NEW PRODUCTS THAT WE WILL RANGE IN OUR BUSINESS BECAUSE OF BEING HERE AT THE SHOW.” – Lisa Reid, Sodexo

Our retailer audience is looking for innovation to set their stores apart and are particularly interested in seeing: - Accessories - Auto Products - Bakery - Beverages - Coffee - Confectionery - Cooking Equipment - Dairy - Digital Solutions - Display Fit Outs & Equipment - Frozen / Ready / On-The-Go Meals - Gifts - Hot & Cold Snacks - Merchandising Solutions - Payment Systems - Petrol Forecourt Technology & Equipment - Plant-Based F&B - QSR Opportunities - Refrigeration - Vending Machines

GET INVOLVED! To find out how to take part in the C&I Expo, please contact Safa de Valois em: safa@c-store.com.au or ph: +61 2 8586 6172 You can find out more at candiexpo.com.au

CONTENTS

Feb/Mar 2024

www.c-store.com.au

In this issue Regulars 08

Face Time

Tim Rankin, National Retail Fuels Manager, Chevron 12

Store Review

Ampol’s Pheasants Nest Service Centres

Features 16

12

Gadgets and Accessories

Changing consumer expectations in this ever-expanding category 20

Energy Drinks

Ongoing innovation is fuelling this category’s growth 24

Global Trends

Diverse and dynamic approaches to convenience retailing worldwide

New Products 28

Product Ranging

We bring you all of the latest new product launches

Industry Experts

24

40

Opinion

Theo Foukkare, AACS; Jason Joukhador, Ampol; Paul Koopmans, Worldpay from FIS

Latest News 46

Industry Updates

7-Eleven; Bowser Bean; OTR; Asahi; Norco 50

Petrol News

Ampol; Renewable Energy; EV Rescue Van; Viva Energy

50 4

February/March 2024

ON THE COVER Take part in the 2024 C&I Expo on 29-30 October at the Melbourne Convention and Exhibition Centre. www.candiexpo.com.au

EDITORIAL CONTACT DETAILS 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: magazine@c-store.com.au Group Publisher C&I Media Pty Ltd Safa de Valois Commercial Director Safa de Valois safa@c-store.com.au Editorial Director James Wells james@intermedia.com.au Managing Editor Thomas Oakley-Newell tom@c-store.com.au Art Director Alyssa Coundouris alyssac@intermedia.com.au Production Manager Jacqui Cooper jacqui@intermedia.com.au Production Assistant Tazlin Cantrill magazine.material@intermedia.com.au Prepress Tony Willson PROUD MEMBERS OF:

INFORMATION PARTNERS:

W

Fuel for thought

elcome to the

and those that are breaking into it. We

latest issue of

examine the trends and opportunities

Convenience &

available for retailers to capitalise on

Impulse Retailing

within this growing category.

magazine, your

trusted source of insights and trends in

in convenience retail, we take you on

the fuel and convenience retail sector.

a journey around the world to uncover

In this issue we meet Tim Rankin,

the diverse and dynamic approaches

National Retail Fuels Manager at

to convenience shopping. Learn how

Chevron, where he discusses everything

convenience stores are adapting to

from his first job – at a petrol station –

the changing needs of consumers,

to his future ambitions at Chevron. We

from innovative store layouts to unique

then take a trip to the newly revamped

product offerings. Gain insights into the

Ampol’s Pheasants Nest Service

global landscape of convenience retail

Centres which boasts Ampol’s largest

and discover ideas that could inspire

collective retail offering to date.

your local corner store.

Our feature on gadgets and THE FINE PRINT The Intermedia Group takes its Corporate and Social Responsibilities seriously and is committed to reducing its impact on the environment.

We continuously strive to improve our environmental performance and to initiate additional CSR based projects and activities.

As part of our company policy we ensure that the products and services used in the manufacture of this magazine are sourced from environmentally responsible suppliers. This magazine has been printed on paper produced from sustainably sourced wood and pulp fibre and is accredited under PEFC chain of custody.

PEFC certified wood and paper products come from environmentally appropriate, socially beneficial and economically viable management of forests.

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 reenactment 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 © 2024 - C&I Media Pty Ltd.

In our exploration of global trends

As always, we are grateful for our

accessories shines a spotlight on the

columnists Theo Foukkare, CEO

changing face of the category and

of AACS, Jason Joukhador, GM

how consumers are now seeking out

Merchandise and Dealer Channel at

more variety in convenience store

Ampol, as well as a special opinion

merchandise, with a willingness to

piece from Paul Koopmans, Vice

spend more on quality products. From

President, ANZ, at Worldpay from FIS.

charging cables to thongs to trendy

I hope you enjoy the issue and I’m

hats, consumers now expect retailers to

sure I’ll catch up with some of you soon

be a one-stop-shop for all their needs.

at the various upcoming industry events.

The spotlight on energy drinks delves into new flavours, formulations, the

Cheers,

brands that are dominating the market,

Thomas Oakley-Newell

Join us for more

Scan the code to explore the website and get social.

MEET THE TEAM

Safa de Valois

James Wells

Thomas Oakley-Newell

Alyssa Coundouris

www.c-store.com.au

5

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LeVeL Lemonade’s new can range rolling out nationwide After promising results in initial trial stores, LeVeL Lemonade is expanding its distribution for its innovative Australian Supplementary Sports Drink.

“We are particularly happy with expanding into new Vending machine customers – such as the recent partnership with Fitness-Vending,” said Founder, Chrish Graebner.

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“The drink is positioned as a rewarding ‘Post Work Out’ refreshment – and this is the awareness we intend to invest into!” said Graebner.

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February/March 2024

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FACE TIME

ALL GAS, NO BRAKES A decade long career with Puma and Chevron has taken Tim Rankin, National Retail Fuels Manager, around the world and he has no plans of slowing down. This is his story…

Above: Tim with his wife Carla and their two daughters Ella and Isabel

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February/March 2024

I WAS BORN in Melbourne, but my family relocated to Brisbane when I was barely two months old. Growing up in the western suburbs, I went to school there, from primary to university. Sports were my thing – I dabbled in pretty much anything I could get my hands on. Cricket, swimming, soccer, rugby, volleyball, and water polo. Water polo was the sport I enjoyed the most. I spent a lot of my childhood in pools, and it even extended into my post-university days.

At 16, I got my first job working at a BP dealer site doing driveway service at a site in Indooroopilly, one of the only sites left that was offering the service. I was filling up customers’ cars, cleaning windshields, checking oil – it was all part of the gig. People often got surprised when I approached them; it was almost like a touch of luxury they didn’t expect. That surprise and delight factor kept our regulars coming back for more.

I’ve been lucky enough to do a lot of travelling in my lifetime, both personal trips and in my working life. I’ve been fortunate to explore many countries, but a personal favourite city is London. I can’t quite put my finger on the appeal, but I have followed Manchester United and the English Premier League since I was young so that’s probably part of it.

I started at Puma, before Chevron acquired them, and have been here for about a decade now. My career started in fuel pricing, before moving into sales support, then I moved into various middle management roles.

One of the most challenging yet rewarding experiences was leading our retail business in Myanmar, a country just opening its doors to international business. Puma had just completed building a terminal there so my role was to go over to try and establish a retail business and get rateable volume through that terminal.

FACE TIME

Tim’s Cavoodle Max

Tim has headed up Chevron’s national retail organisation for about two years

Chevron is bringing back the iconic Caltex brand

“At 16, I got my first job working at a BP dealer site doing driveway service at a site in Indooroopilly, one of the only sites left that was offering the service. I was filling up customers’ cars, cleaning windshields, checking oil – it was all part of the gig.

– Tim Rankin, National Retail Fuels Manager, Chevron I was one of the first in-country people from a retail perspective and did everything from establishing what our offer was going to be, getting the branding right, network planning, then attempting to acquire local businesses to get them to brand over to Puma.

Currently, my role is National Retail Fuels Manager at Chevron. The global integrated energy company has been present in Australia for more than 70 years. After acquring Puma in Australia, Chevron has embarked on a major rebrand project, bringing back and growing the iconic Caltex brand, which it owns globally. I head up our national retail organisation, or our dealer network as it is known in some other businesses, and have been in the role for about two years now.

On a personal level, I especially enjoy making new connections everyday as we grow our dealer channel and introduce the Caltex Starcard to the market.

My advice to retailers would be that taking a partnership approach is something that really creates value for both parties. Continuing to operate as a transactional relationship, where retailers buy fuel from us and they display our brand, isn’t the best way to operate. Our intention is that the end of those agreements isn’t the end of the relationship. We want these to be much longer term. Partnerships are really important to us.

Similarly, we look to do the same thing with suppliers. We want to partner with the right businesses that are going to add value to our business long term. We still have transactional relationships with suppliers, and we also have collaborative ones, but ideally, we want to work with businesses that we see as strategic partners where we can help each other grow.

I’m really looking forward to growing my career with Chevron, whether that be in Australia or overseas. I think I’m lucky that, as a business, Chevron is quite uniquely positioned in our industry to offer the chance to work abroad. We have regional head offices in Singapore, have businesses across Southeast Asia, and a huge presence in the US, so hopefully I’ll find myself in one of those markets at some time in the future. Plenty to achieve here first.

It would also be an amazing opportunity for my family, my wife Carla and two young daughters Ella and Isabel, to experience living in another country.

Outside of work, I spend a lot of my time looking after my kids and enjoying being a parent. We even welcomed a furry friend, Max, who is a Cavoodle, into our home to help Ella overcome her fear of dogs – a decision that paid off beautifully. ■ www.c-store.com.au

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STORE REVIEW

Feather in the cap Words Thomas Oakley-Newell

Playing host to Ampol’s largest collective retail offering to date, Ampol’s Pheasants Nest Service Centres are a world-class offering poised to tackle whatever the future may offer.

AFTER FOUR YEARS of hard work, Ampol’s Pheasants Nest Service Centres have opened.

Conveniently located on the Hume Highway at Pheasants Nest in NSW, the redeveloped sites offer the perfect place to refuel both body and vehicle.

Kate Thomson, Executive General Manager – Retail Australia at Ampol, explained that both the northbound and southbound service centres include a large food court area with both indoor and outdoor dining areas, children’s play areas, truck driver amenities, separated fuel and diesel canopies and a fresh convenience offer to help meet the needs of commuters and local customers on both sides of the Hume Highway.

“We have even catered for the comfort of furry family members with enclosed off-leash dogs parks.

“The Pheasants Nest service centres are some of Ampol’s biggest truck-friendly sites with nine pumps available at each of our two brand new diesel canopies as well as ample parking and shower, lounge room and laundry facilities.”

Being such a truck-friendly site, the Pheasants Nest service centres have ultra-high flow pumps and Ad-blue available under two brand new 5.3-metrehigh diesel canopies, with each accessed via a dedicated truck entrance.

“Ampol is proud of the role it plays supporting our customers in the transport and freight sector.

The redeveloped Pheasants Nest sites are the latest 12

February/March 2024

enhancements to our National Truck Network of roughly 380 sites across Australia.

“Our new Pheasants Nest sites include long-haul driver amenities such as a dedicated driver’s lounge which includes 24-hour access to a tv, microwaves and individual toilet, shower, and laundry facilities,” said Thomson.

A world-class offering A recent review of Ampol’s retail operations, has provided the company with greater flexibility in leveraging the entire network to execute the next phase of Ampol’s retail strategy, including the investment of its major highway sites such as Pheasants Nest.

Thomson explained that they have evolved their convenience offer to meet the changing needs of customers and to capture the growing convenience market opportunity.

“Both Pheasants Nest sites play host to Ampol’s largest collective retail convenience offering to date.

In addition to Ampol Foodary, Hungry Jack’s, Oporto, Krispy Kreme, Boost Juice, Oliver’s, and Durk’s Café are all now available at Pheasants Nest.

“It’s important that our customers, particularly those long dwell customers, are able to refuel and re-energise with a vast convenience offer and in the comfort of our modernised facilities, landscaped rest areas, and for the safety of the kids, a secure playground.”

STORE REVIEW providing up to 300kW of power to serve EV drivers, forming part of Ampol’s national commitment to install over 300 charging bays by the end of 2024.

“We will continue to see the forecourt evolve, alongside the roll out of electric vehicle charging infrastructure. In addition to the forecourt itself, the petrol and convenience industry will be looking to see how they can offer the most value to customers while they charge.

“Site amenity, security and cleanliness is critical to attract customers making the transition given charging an EV naturally requires longer dwell times.

“Having a quick service restaurant (QSR) and broader retail offer is also important to deliver for our customers. Allowing EV users to grab a meal, coffee, or even ingredients for dinner while they charge is critical and provides a reason to bypass remote charging sites next to highways with little amenity.”

Customers can expect more value-driven offers at Ampol Foodary retail sites

Ampol has also taken into account that cost of living will remain a challenge for customers of retail convenience networks into 2024, whether that be the increased cost of business operations or on personal household budgets.

“This will influence how the industry will go to market with range and pricing, in order to attract and retain customers. Shopping habits have changed and are directly linked with the cost of living, meaning shoppers are searching for promotions and value more than ever before.

“Customers visiting Ampol Foodary retail sites can expect to see more value-driven offers, like our recent $2 ‘Pie Day Friday’ and $5 ‘Crave ‘n Save’ offers,” said Thomson.

Future focused As an Australian company that has been around for over 100 years, Ampol understands the important role its national infrastructure and network plays across the nation every week.

“Our national network is located along major transport infrastructure in metropolitan and regional areas, meaning we are well-positioned to continue our evolution to meet the changing needs of our customers and keep powering the Australian way of life.

“It’s important we continue to invest in areas that matter, such as our highway sites, to deliver an excellent Ampol experience for our customers.

At every Ampol site, we strive to make our customers’ time with us more efficient, comfortable and convenient.”

As part of that evolution, the opening of the Pheasants Nest sites coincides with the unveiling of first-of-its-kind AmpCharge electric vehicle charging hubs, with 12 charging bays across the two forecourts

“It’s important we continue to invest in areas that matter, such as our highway sites, to deliver an excellent Ampol experience for our customers.”

– Kate Thomson, Executive General Manager – Retail Australia, Ampol

Secret to success Looking at what makes a successful convenience retailer, Thomson offers advice to other retailers hoping to improve their offering, by focusing on both suppliers and customers.

“Focusing on the customer and their evolving needs will help suppliers and retailers work collaboratively together. It’s a partnership, so being aligned and clear on business goals and objectives is the foundation of ensuring a good working relationship across both parties.”

When it comes to the customer, Thomson said it is important to be laser focused on delivering to their needs.

“This includes satisfying all parts of the customer journey from pre-store engagement to site location and facilities, to products and offers in store and excellent operations and customer service. At the end of the day, we are here to serve customers and cannot thrive without them.” ■

The site features a secure playground for kids to enjoy

www.c-store.com.au

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FEATURE GADGETS & ACCESSORIES

The changing face of general merchandise Innovations in technology, changes in legislation and manufacturers experimenting with new product ranges are influencing the types of gadgets and accessories you’ll find in stores in 2024.

Words Lizzie Hunter

THE GENERAL MERCHANDISE category in petrol and convenience (P&C) is an ever-expanding category, with more brands entering the market as suppliers experiment and broaden with new product ranges to mirror changes in consumer expectations.

Dustin Laine, National Sales Manager at Rocko’s Australia, says consumers are seeking more variety in c-store merchandise, with a willingness to spend more.

“While it can be a challenge, it’s important for retailers to constantly evolve their offer to provide a full category solution,” Laine says.

“Today’s consumers are confident about spending more money in an impulse setting. For a long time, there was a sort of stigma around making sure products in convenience were under a certain price point, but consumers are becoming accustomed to spending a little bit more as we see more well-known, high-quality brands enter the channel.”

P&C is a key focus for Rocko’s Australia, says Laine, adding that the general merchandiser tailors its product ranges specifically to the channel.

“The convenience channel has proved just how strong it is, having maintained its strength and performance throughout the COVID-19 pandemic and in the years following,” says Laine.

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February/March 2024

“We’ve partnered with some big retailers and have established very strong relationships, which we believe is key considering the level of competition we’re now experiencing in the channel.”

Ryan Price, Growth Specialist at Queensland-based brand-partner Evonic, says service stations in Australia have transformed into world-class curbside retailers.

“As a brand-partner, we want to make sure these curbside retailers have the same access to world-class digital products like the larger high street retailers like JB Hi-Fi,” says Price.

Evonic represents Cygnett, an Australian-owned digital accessories supplier, which sells its core range of mobile phone accessories in the P&C channel.

“Cygnett has more than 100 digital accessory products, but we base our strategy in P&C around our core range of best sellers, rather than selling a larger range in store.”

Price says the reason behind this approach is that curbside retailers traditionally have a smaller footprint.

“The channel can be a bit squeezed for space when it comes to stocking gadgets and accessories,” he says.

“We’ve found the more gadgets you have in a service station, the more likely it is that these products end up collecting dust on the shelf.

FEATURE GADGETS & ACCESSORIES

“Having a smaller accessory offering improves the shopping experience of customers because it removes the extra layer of complexity that comes with ranging the same or similar product in multiple colours or designs. Too many options can be confusing and may even impact sales.”

Price notes that customers are basing purchasing decisions on the practicality of products.

“We’re noticing customers are looking for products that are practical, rather than just buying an accessory on an impulse,” says Price. “This also ties into the larger focus around in-car safety; people are after accessories that ensure their phone is still accessible to them while driving, but they don’t need to hold or touch it to access it.”

Single charging solution The European Union has announced that as of this year, the USB Type-C connector is recognised as the common standard for electronic devices. The move to standardise a charging connector type is to provide better charging technology, reduce e-waste and avoid market fragmentation.

Price says the move is a positive change for retailers and consumers.

“The move in the market towards a single connector type is fantastic. It’s great for consumers and retailers because it’s a solution that can charge multiple accessories, removing the need for multiple chargers for different devices,” says Price.

“However, the challenge lies in how retailers communicate the transition to the Type-C connector to their audience.

“Curbside retailers need to ensure staff can confidently advise on electronic products, because while the newer models of phones and computers will work with a Type-C connector, the older models will still need a different charging cable.”

Ever-changing digital market Robby Sawhney, Corporate Head at IPL Retail, says the biggest challenge in the digital accessory space is the fact that it is an ever-changing market.

“There’s a new product, solution or upgrade released every three months or so, which is why our job at IPL Retail is ensuring we stay on top of these new technologies so our partners in the P&C channel have the most up-todate products in stock,” he says.

“At IPL Retail, we are constantly exploring new trends and technologies in the digital accessory market. Our team is dedicated to innovating and developing gadgets that not only meet but anticipate customer needs. This commitment ensures that our partners in the P&C channel are always equipped with the most advanced and relevant products.”

“We’re noticing customers are looking for products that are practical, rather than just buying an accessory on an impulse.”

- Ryan Price, Growth Specialist, Evonic Sawhney notes that an emerging trend in the digital accessory space is wireless charging.

“Wireless charging, increasingly prevalent, aligns with newer phone models but not older ones. This shift in technology mirrors changes in consumer demands, driving innovations that cater to and reshape our daily digital interactions.”

When it comes to selling digital accessories in-store, Price recommends retailers start by selling a well-known and established brand.

“Once you have your digital accessories brand, reduce the confusion for consumers by selling a smaller, targeted core range in a good location,” says Price. “This allows retailers to focus on the strategies, like your food and beverage offering that brings customers into the store.”

2024 product launches Melbourne based Smooth Wholesales is set to expand its range of summer essentials this year with a new Holy Caps range.

Daniel Avrahami, Director at Smooth Wholesales, says demand for summer essentials, especially hats and sunglasses soared to more than 65 per cent in December last year.

“Our Holy Caps range provides trendy yet affordable option for retailers,” Avrahami says.

“We recognised a gap in the market for affordable, quality headwear. Holy Caps offers stylish options without compromising on cost, making it accessible to a diverse audience. With Holy Caps, we aim to bring that personalised touch to everyone, ensuring they find their perfect cap at an appealing price point.” → www.c-store.com.au

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FEATURE GADGETS & ACCESSORIES

IPL is also set to launch a new Tough Thread line of work socks and safety jackets in the P&C channel later this year.

“We saw an opportunity in the market for this kind of workwear and think it’s a good opportunity for service stations to provide workwear for tradespeople who, on their way to work, may have forgotten to pack an extra pair of socks or safety gear,” explains Sawhney.

In the digital accessory space, Cygnett has launched a series of wireless magnetic power banks called MagFamily into the channel.

“We launched the range a few months ago and have seen great results, so we’ll continue to focus on the range in 2024,” says Price. “The range aligns with Cygnett’s approach of helping consumers access easy and practical experiences when they are using digital accessories.”

This year, Rocko’s will launch a new range of plush toys called ‘Mini-mates’, which will be available in stores early this year.

“Mini-mates is Rocko’s first inhouse brand of toys,” says Laine. “While we don’t specialise in the toy novelty space, we have experience supplying plush toys from a global brand, and felt the market was ready to see something a little different. The quality of the range is fantastic, the price point is right and initial feedback from retailers has been extremely positive.”

Rocko’s has also expanded its range in the technology space.

“We’ve added some premium SKUs at the top end of our offer which include Bluetooth speakers, earbuds and headphones,” says Laine. “However, our best-selling products remain our double plugger thongs and our eyewear range, which continue to see year-on-year growth.

“Footwear sales were up by seven per cent and eyewear sales were up by five per cent between October and December last year. Our fishing range, which we launched two years ago, is also our fastest growing category.”

L-R: Gagan, Robby, and Garry Sawhney from IPL Retail 18

February/March 2024

“We’ve partnered with some big retailers and have established very strong relationships, which we believe is key considering the level of competition we’re now experiencing in the channel.”

- Dustin Laine, National Sales Manager, Rocko’s Australia Laine says the challenge facing retailers today when it comes to general merchandise is the increasing number of competitors in the sector.

“There’s probably double the number of major general merchandise players in the category today compared to five years ago,” says Laine. “Suppliers are trying to diversify so they can cover all categories, so retailers don’t have to work with more than one supplier, so there is a fair bit of replication taking place in this space, and sadly not much innovation.

The challenge this poses for retailers is being able to distinguish between suppliers to make sure they are partnering with one that can offer high-quality products and service support.

“It’s no secret that the retailers who are proactive in keeping their shelves and stands stocked see the best results when it comes to sales,” says Laine. “However, we understand that not every retailer has the ability to do that, whether that’s due to staffing, time or the size of the store. That’s where our team can step in and work with retailers, advising on best practice when it comes to merchandising by drawing on our experience in the channel.

“Positioning aside, you want to make sure your product range is presented well in-store. When stands are attractive and full of high-quality products, they can become a destination in the store and draw the customers in by themselves. You don’t need to worry about putting them in an impulse location to make the sale.” ■

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FEATURE ENERGY DRINKS

Energising Innovation A wave of flavour variations and zero sugar options continue to enter the energy drink market, as drink manufacturers recognise the value of ongoing innovation in the channel.

Words Lizzie Hunter

OVER THE LAST two years, the energy drink category has jumped in value by more than $261 million, or 45 per cent of total packaged beverage value growth, according to the Australian Association of Convenience Stores (AACS).

As stated in the AACS State of the Industry Half Yearly Report 2023, energy drinks continued to drive strong value growth of more than 12.9 per cent after experiencing more than 8.9 per cent growth in the first half of 2022.

Deb Cooper, Head of P&C at Frucor Suntory Oceania, says growth in the energy drink category has been fuelled by the introduction of new product ranges.

“We’re expecting the beverages channel to grow by $424 million by 2027 with energy drinks contributing 61 per cent of that growth,” Cooper said. “Frucor Suntory is dedicated to ongoing category innovation to meet future consumer needs as well as attract new consumers to the category.”

David Forde, General Manager – Convenience and Petroleum at Coca-Cola Europacific Partners Australia, says there is more opportunity in the energy drinks category, due to increasing reliance on the beverage category within the P&C channel to drive sales.

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February/March 2024

“The drinks category is being increasingly relied upon within P&C to drive sales, and the energy category is the largest component within drinks,” Forde explains. “With the ever-continuing impact of cost-of-living pressures and the increasing prices of petrol, providing value is key to this channel, which is why we continue to innovate within our brands Mother and Monster.”

“P&C is where a lot of our innovation happens first, with new product developments often brought to market in this channel before selling elsewhere.”

Rise of ‘better for you’ beverages Founder of Australian beverage brand Straight Up Energy, Jake Sheriff, says one of the biggest changes he is seeing within the energy drink category is consumers seeking out ‘better-for-you’ options.

“While I think there will always be a place for the full-sugar energy drink options, we are seeing growing demand for ‘better-for-you’ energy drinks,” Sheriff explains.

“Introducing new brands and ranges is a great way to bring more consumers into the energy category while also targeting current customers who want a healthier option.”

FEATURE ENERGY DRINKS

Straight Up Energy launched its first energy drink range earlier this year. Available at BPs across Australia, the range comes in three flavours – Green Apple, Mango and Passionfruit, and Watermelon and Pineapple.

“We saw a gap in the energy drink category for an Australian made, better-for-you product. Consumer feedback so far has been positive, and we look forward to expanding our range of flavours within the next six months.”

Sports supplement company Athletic Sport has also recently entered the energy drink market with the launch of its Kamikaze Energy drink.

Steve Trinder, Director at Athletic Sport, says the ultimate goal for Kamikaze Energy is to have a strong presence in the P&C channel.

“As a sports nutrition brand, we’re excited to bring some of the fun flavours we work with regularly over to the energy drink sector,” said Trinder.

“Following the success of Kamikaze Energy, we’ll soon be launching a new lightly carbonated hydration and amino drink, which includes specific sport nutrition ingredients like Essential Amino Acids, Himalayan pink salt and coconut that help with hydration, alkalising, amino replenishing and keeping energy levels up.”

Demand grows for zero-sugar Forde says one of the main trends energy drink manufacturers are seeing in the P&C channel is the uptake and growth in zero sugar and flavour variants.

“The growth of zero sugar and flavours demonstrates the value and success of innovating in the energy category for this channel.

“The uptake in zero sugar variants is likely to continue as consumer expectations change. It is important that retailers capitalise on this outside growth, while continuing to protect the core energy range.”

Drawing from this insight, Coca-Cola Europacific Partners Australia launched Monster Zero Ultra Energy Peachy Keen exclusively to the P&C channel in August this year.

“This was an exciting new offering that was strategically aligned to growing consumer preferences for bold flavours via no sugar products,” Forde said. “Monster Zero Ultra Energy Peachy Keen has been a huge driver of growth and one of our best performing new products.

“In October, we also released a new Mother flavour called Rainbow Sherbet. We are continuously innovating across the Mother and Monster Energy brands to satisfy demand and have a large pipeline of new products launching in 2024, under both Monster and Mother, which we’re excited to bring to market.”

Steve Trinder, Director at Athletic Sport, enjoying a new Kamikaze Energy drink

“Within the next five years, energy drinks are going to make up 40 per cent of the beverage category.”

– Deb Cooper, Head of P&C, Frucor Suntory Oceania

‘Engine room’ of the category While sugar free is where a lot of growth is coming from in the category, Forde says that doesn’t discount the importance of offering customers and consumers the choice of a full range.

“Full sugar energy drinks are the engine room of the category, accounting for 78 per cent of energy drink sales. Retailers need to leverage the outside growth in sugar free, while protecting the core energy range to ensure consumers are provided with choice and selection, as both sugar and no sugar still have their place in the range,” Forde said.

As Cooper explains, Frucor’s core demographic of consumers still want a full-flavoured sugar drink.

“Traditional energy drinks continue to be the largest segment of the category and continue to maintain strong year-on-year growth – with V Energy leading this charge,” said Cooper.

“We launched ‘Tropical Tang’ to our V Energy beverage range in May 2023; our first full-sugar product released since V Raspberry Lemonade in 2020. The fact that it’s experienced a lot of success so far confirms the strong demand for the full-flavour, sugar energy drinks.” → www.c-store.com.au

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FEATURE ENERGY DRINKS

“The uptake in zero sugar variants is likely to continue as consumer expectations change. It is important that retailers capitalise on this outside growth, while continuing to protect the core energy range.”

– David Forde, General Manager – Convenience and Petroleum, Coca-Cola Europacific Partners Australia

For the first time in 26 years, Frucor Suntory has also upgraded its iconic energy drink V Green.

“The enhanced flavour and refreshed packaging were carefully crafted to retain all that fans know and love, while dialling up the best bits,” said Cooper.

“We’ve refined what people already enjoy about V Green based on research insights from fans. We spent time with drinkers of V Green during the development to understand what they loved most, which has resulted in a smoother, more invigorating energy drink.

“By updating V Green – both from a flavour and design perspective - we believe we have met the needs of existing drinkers and new ones.”

Opportunities and challenges Cooper says understanding space to sales is key to retailers to ensure they can accommodate energy drink growth.

“One in five Australians consume an energy drink every day and approximately 61 per cent of the total beverage growth within the P&C channel is going to come from energy drinks,” explains Cooper.

“In terms of opportunities, it’s really important for retailers to look at what their total space to sales allocation looks like. Within the next five years, energy drinks are going to make up 40 per cent of the beverage category, so if you’re looking at your main fridge that has an eight-door layout, three of those doors need to be allocated to energy drinks.

Ultimately retailers should make sure they’re allocating space for the future.”

Forde adds that even though P&C traditionally services single-serve drinks, retailers shouldn’t discount the role of multi-packs.

“We know that people in the energy drinks category have a high purchasing frequency; often buying in volume,” Forde said. “With energy drinkers having a high tendency for drinking now and drinking later, it’s a chance for the channel to capitalise on this opportunity and leverage multi-packs.

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February/March 2024

Consumers are increasingly looking for low and zero sugar options

“With a growing focus on value, energy and food bundling will be a growing trend. However, while energy is a major player in the P&C channel and is only going to continue to grow, retailers shouldn’t discount other categories when it comes to value pairing with food. Energy drinks has a smaller penetration than other categories and should be offered alongside soft drinks and waters.”

While competing with the bigger, established brands does pose a challenge, there are still a lot of growing opportunities in the energy drink space, says Sheriff.

“We’re continuing to watch and follow the beverage space in countries like America where there are numerous growing trends.”

In the end, it all comes down to consumer demand, adds Trinder.

“The energy drink sector is driven by consumer choice and demand, and more and more of these consumers are demanding healthy, better for you drinks,” says Trinder.

“If retailers don’t have the product the consumer wants, they’re going to find it somewhere else. At the end of the day, it’s all about the customer, so categories like energy drinks need to keep innovating and exploring new products and ranges to ensure we are giving the customer exactly what they want.” ■

NEW

FULL FLAVOUR

ZERO SUGAR ULTRA STRAWBERRY DREAMS

FEATURE GLOBAL TRENDS

Fresh food demand is growing

SPAR Merrion Row, Dublin

A world of convenience An in-depth look at global convenience store trends and why Australian retailers should embrace these concepts and bring them back to their stores.

Words Deb Jackson “THE FUTURE IS already here – it’s just unevenly distributed.” This quote from futurist William Gibson perfectly sums up convenience retailing today, according to Jeff Lenard, Vice President, Strategic Industry Initiatives at NACS, the global association working to advance convenience and fuel retailing.

But what does this mean in the context of the changing face of convenience retailing? Well, around the world convenience retailers are implementing different strategies to take their stores into the future, and to cement their positioning as being more than just retailers of fuel. From Thomas Ennis, who is widely considered one of Ireland’s most innovative convenience retailers, having set the standard, and continuously raised the bar with the fresh food and barista made coffee at his network of Spar stores, to Kevin Smartt, owner of Texas Born (TXB) in the US, which is in a period of significant growth – there is much Australian retailers can learn from abroad.

According to NACS’ Lenard, the most successful retailers are those that seek out ideas from around the world and bring them back to their stores.

He says: “It is essential to have an understanding of global trends because they are concrete examples about how consumers are already embracing new concepts, even if they aren’t yet in our own backyard.”

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February/March 2024

This sentiment is echoed by Theo Foukkare, CEO of the Australian Association of Convenience Stores (AACS), who says: “We now live in a world where global trends on the other side of the world are relevant somewhere in Australia. The key to ongoing success is to stay across all of the latest trends and look to implement what you need, when you need it to solve a problem that will benefit your business, and your customers.”

The trends shaping global convenience In today’s world, we are all linked, and to be truly successful it’s important to learn from our industry peers, both near and far.

It doesn’t matter where in the world you are; the truth is that convenience remains the most valuable customer commodity, and convenience stores are best positioned to provide that to customers.

NACS’ Lenard says: “There are enormous opportunities to continue to redefine convenience into new areas. The biggest challenge is complacency; if you aren’t focused on the customers’ needs today – and tomorrow – you may find that others do better to meet the customers’ needs.”

Across the board it is agreed that food, coffee, and technology are leading the way into 2024 for c-store evolution, and this isn’t slowing down anytime soon.

FEATURE GLOBAL TRENDS

TXB’s Smartt has observed a higher acceptance of private label products and as such, in 2024, the business is expanding its private label line into salty snacks, craft soda, enhanced and sparkling water, energy drinks, and confectionery.

Smartt also highlights a shift from consumers towards lower sugar content in non-alcoholic drinks and snacks, and higher alcohol content in beer and wine-based beverages. Non-combustible nicotine products continue to show growth, and there has been a continued uptake in use of TXB’s mobile app.

“We will continue to invest in our fresh food program. New food innovation and new equipment technology are important to us as we continue to get better in foodservice,” says Smartt. “Technology that is either customer facing or behind the scenes will provide improved efficiencies and customer insight.”

In terms of the technology that is shaping the future of the convenience landscape, Smartt says that the next five years will prove highly beneficial for the industry.

“Most c-stores already have apps and loyalty programs, so data mining and providing intuitive customer promotions that allow personalisation will drive enhanced sales. We’ll also see many efficiencies to come with artificial intelligence (AI) in enhancing operations within our system,” he says.

“We are continuing to get better and smarter at mining customer data out of our loyalty programs, which will allow us to combine this data with new sophisticated AI programs that will allow us to gain a greater understanding of our customer and their needs.”

Lenard at NACS agrees that technology is playing a huge role in convenience stores, and he offers the advice that technology must always be used to enhance the customer experience.

“The uses [of technology] related to operating efficiency alone are countless,” he says. “Beyond that, technology will play a big role in how you talk to customers – whether via social media, an app or other means. It will literally be an important driver for EV charging, and it will allow retailers to be more creative in finding solutions to problems.

“But, as with any new innovations, adoption will not be a linear path, and it will only be successful if you keep the customer’s needs in mind as the ultimate objective. We’ve seen that to a certain degree with self-checkout. Some stores used it to save on labour expenses and it reduced the customer experience.”

Frank Beard, marketer and analyst who serves as Head of Marketing at Rovertown, says that as retailers chase the goal post of ‘personalisation,’ they need to remember that rewards programs are just one of several potential engagement tools.

“They’re a great piece of the puzzle, but they alone aren’t the complete picture. Many customers aren’t interested in rewards programs. It’s not the only engagement strategy available to retailers.

“For example, I’m noticing a trend where retailers are using their apps to more effectively engage folks who aren’t members of rewards programs. I’ve seen retailers allow customers to redeem the coins won from mobile games within their apps on various items in the store – both self-funded and vendorfunded. This creates new engagement opportunities, like a parent who gives a noisy kid the retailer’s app and tells them they’ll stop by the convenience store if they win something.

“Retailers with mature brand identities also need to lean-in on opportunities to surprise and delight, especially with limited-run merchandise.

The marketing team at Kum & Go, prior to the acquisition by Maverik, was a great example of this. They even engaged in brand collaborations with brands like Busch, creating highly desirable merchandise that was purposely made scarce.

The result – paired with social media that was clever at the time, prior to their acquisition – was a brand that was just pure fun as a customer. It was cool. A person might not care about their rewards program and still be a very loyal customer.

“On that note, Buc-ee’s has perhaps the most intense brand loyalty in this industry. They have no loyalty program. Think about it.” →

“Most c-stores already have apps and loyalty programs, so data mining and providing intuitive customer promotions that allow personalisation will drive enhanced sales.”

– Kevin Smartt, Owner, Texas Born

Bowser Bean Violet Town in Victoria www.c-store.com.au

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FEATURE GLOBAL TRENDS

The Station Grocer in Lennox Head, NSW

Deli de Luca in Oslo, Norway

Excellence abroad

Challenges and opportunities

We asked global experts if they could identify any convenience stores within their networks that are setting the pace of customer satisfaction.

In the US, Lenard pointed to Sheetz and Wawa, saying they have long pushed the boundaries over what a convenience store is, especially around foodservice, and that trend still has room for growth.

“Many chains will now call their locations restaurants rather than stores, because the focus is so heavily tilted toward foodservice. That’s a trend that we have also seen with small, one-store operators.

They’ve given food truck operators or independent chefs the ability to create a unique menu in a small footprint,” he says.

“Buc-ee’s has certainly pushed the boundary on store size. Their stores, located off busy interstates in sparsely populated communities, are 70,000 square feet or more – in addition to 100-plus fuelling locations. That’s roughly 30 times larger than the traditional 2,400 square foot 7-Eleven. The concept isn’t to have a giant store, but about an amazing experience. It’s turning the concept of having to stop for a fast fuel, food and a restroom break into wanting to stop for a leisurely fuel, food, and a restroom break.”

According to AACS’ Foukkare, he thinks that TXB is an international convenience retailer that is doing an amazing job with evolving their offering. But he also flagged some retailers closer to home that are setting the bar on a global scale.

“In Australia, we are blessed with some exceptional retailers that continue to push the boundaries and deliver on their customers’ expectations. In terms of overall offer, OTR in my opinion are a global example of best practice in convenience retail.

“There are a number of independent retailers that have developed their brand and food/coffee offers focused on fuelling their customers’ hunger through exceptional ranges. The ones that come to mind include Mood Food by Bennett’s Petroleum, Bowser Bean Café, APCO 24/7 Café, Jack & Co, The Station Grocer and Urbanista Café & Convenience,” he says.

Convenience stores face a mix of challenges and opportunities influenced by various factors, including evolving consumer preferences, technological advancements, economic conditions, and global trends.

Foukkare highlights that some of the main challenges right now include intense competition combined with ongoing margin and pricing pressures.

He says: “The ongoing global supply chain disruptions seem to be always in the background presenting new challenges. As consumer preferences and behaviours are changing due to a range of reasons, this is adding more complexity to satisfying customers.

Other areas that continue to impact retailers include the high cost of technology implementation, labour shortages and increasing wages along with regulatory compliance and industrial relations changes.

“In terms of opportunities, retailers need to ensure that they listen to their customers’ feedback and their changing expectations. In my opinion, the four largest opportunity areas include digital transformation combined with data analytics to drive their decisions; personalisation and loyalty programs need to be enhanced to drive customer loyalty; food and beverage needs to be front and centre for all retailers and finally community engagement is paramount for all retailers in many different ways.” ■

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February/March 2024

GLOBAL EXCELLENCE Our experts highlighted these stores from around the world as having set the bar in global excellence: • OTR (Australia)

• Sheetz (US)

• Texas Born (US)

• Wawa (US)

• Urban Value Corner

• Spar Dublin (Ireland)

Store (US) • Buc-ee’s (US) • Zabka (Poland)

• Mood Food by Bennett’s Petroleum (Australia) • Harris Farm Markets (Australia)

MAKE SURE YOU’RE STOCKED TO SUPPORT THIS EXCITING PROMOTION!

*T&Cs apply - see upandgowin.com.au for details. NSW Authority No. TP/00554.

SA Permit No. T23/1859. ACT Permit No. TP 23/02430.

PRODUCT RANGING

choice KitKat Cookie Dough is the pefect indulgent break After a tough selection process, the delicious KitKat Cookie Dough has been chosen as this issue’s C&I Choice.

Available in two formats – a 170g block and a 45g bar – KitKat Cookie Dough features KitKat’s signature crisp wafer and smooth milk chocolate covering with a cookie dough filling.

The new offering pays tribute to the time-honoured tradition of scoffing down cookie dough before putting it in the oven and is sure to reignite childhood memories of baking in the kitchen.

As one of the most requested bring backs from fans, the availability of KitKat Cookie Dough in two sizes means KitKat Cookie Dough-filled chocolate block is perfect for those who want to share the treat with friends or family, while the KitKat Chunky Cookie Dough bar is ideal for those wanting an indulgent solo treat.

The KitKat Cookie Dough range is out now and can be found in convenience retailers nationwide.

Unleash your potential with OxyShred Ultra Energy OxyShred Ultra Energy is your

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With up to six delicious flavours

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across P&C, OxyShred’s infamous

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fruity flavours pack a punch

ingredients, OxyShred delivers a

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fridge. Watch this space as more

workouts or keep you alert during

flavours launch throughout 2024,

a hectic day.

including an exciting film collab!

With a combination of different

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February/March 2024

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PRODUCT RANGING

Unlock your pet care potential with Purina Nestlé Purina Petcare is growing the pet care category

As 42 per cent** of all pet shopping occasions are top up or

year-on-year in petrol and convenience, providing a fantastic

impulse shops, convenience retailers can tap into this market to

opportunity for retailers to take advantage of Purina’s extensive

build basket size while shoppers are in store.

range of products.

With 63 per cent of convenience channel shoppers owning

Ensuring you have variety, key product mixes and leading brands will ensure success in capturing a diverse shopper looking

a pet, there is a tremendous opportunity to maximise profit

for that everyday shop, quick top up or impulse purchase.

by stocking Purina’s leading brands in the category, including

Purina can support your business with Plan-o-grams,

Supercoat, Fancy Feast, Felix, Friskies, and Lucky Dog. Purina’s brands are growing ahead of the P&C pet food

promotional activity, consumer, and shopper insights. Purina’s range of products are available through The Distributors and

category at 37.7 per cent* and driving category growth, so it

Campbells.

makes sense for retailers to stock Purina’s range and not let

*Circana Panel Data – MAT to 13.08.2023

shoppers go elsewhere to buy their pet food.

** 2017 Nestlé Purina Kantar AU Shopper Study N=650 shoppers.

Scan to win with UP&GO This back to school and work season, UP&GO is giving customers the chance to scan to win a $2,000 tools or tech pack in participating P&C stores! Engage your consumers by leveraging this promotion in your store by displaying point-ofsale items and half beverage towers. Consumers can purchase any UP&GO product and scan the QR code for their chance to win a share of $50,000 worth of prizes including $2,000 tools or tech vouchers plus a share of $20,000 in cash prizes. Contact your TDG rep for more information or to discuss POS requirements. www.c-store.com.au

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PRODUCT RANGING

Lo Bros launches nostalgic new flavour Lo Bros has announced the launch of its new, nostalgiainspired, limited-edition Purple Grape flavoured kombucha.

The much-loved flavour can now be enjoyed with a modern, healthier twist through a natural organic fusion infusion that enhances delicious purple grape flavours with fizz, creating a fruit kombucha drink that also helps support gut health.

Didi Lo, Founder of Lo Bros, said they knew they had to introduce a flavour that is unforgettable.

“Everyone grew up loving purple grape flavour – it’s fruity and fun – and now it can be enjoyed in a delicious and nutritious way through kombucha.”

Lo Bros Kombucha is enriched with gut-friendly probiotics and offers an organic, low-sugar beverage option which doesn’t compromise on taste.

As part of their commitment to sustainability, Lo Bros has partnered with Plastic Collective, a global leader in creating circular economies for plastic.

They worked with the Plastic Collective to audit Lo Bros’ annual plastic footprint globally, then phased out all avoidable plastic use and offset all remaining unavoidable plastic use through Plastic Collective credit programs to become a Net Zero Plastic brand.

Lo Bros Purple Grape Kombucha is now available in select independent grocery stores and Coles’ Australia wide in both bottles and cans.

Pauls teams up with Aussie icons in latest release Australia’s favourite custard brand, Pauls has teamed up

with the golden toffee and creamy vanilla flavours of

to bring Aussies an irresistibly delicious range of thick

Golden Gaytime.

and creamy custards that are undoubtedly set to be a staple in your fridge.

The previously available Pauls Chupa Chups Strawberry & Cream and Pauls Violet Crumble Choc

Pauls Violet Crumble Inspired Choc-Honeycomb features an incredibly thick and creamy custard combined with the unmistakable classic chochoneycomb taste of Violet Crumble.

Honeycomb Custards have been supersized from their

Pauls Chupa Chups Inspired Strawberry & Cream

smaller format of 170g to the 600g tubs and are here to

Custard is a nostalgic creation with thick and creamy

stay in the Pauls Custard range.

custard combined with the classic and iconic Chupa

New to the lineup and bringing together two Australian icons, Pauls and Streets, the Pauls Golden

Chups strawberry and cream taste.

All three have an RRP of $6.50 with Pauls Golden

Gaytime Toffee Custard rounds out the trio and delivers

Gaytime Inspired Toffee Custard available at independent

a truly decadent treat.

grocery stores, Coles, and Woolworths. Pauls Violet

Pauls Golden Gaytime Inspired Toffee Custard is

Crumble Inspired Choc-Honeycomb and Pauls Chupa

Pauls’ most irresistible, iconically Aussie collaboration

Chups Inspired Strawberry & Cream Custard are available

ever. Combining thick and creamy custard combined

at independent grocery stores and Woolworths.

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February/March 2024

PRODUCT RANGING

M&M’s world-first innovation hits Australian shelves Australians are the first in the world to try the new M&M’s Cookie Dough flavour.

The new flavour, which was created at Mars Wrigley’s Ballarat Innovation Hub following the company’s $25.5 million investment into its operations earlier this year, features a traditional cookie dough centre, smothered in milk chocolate, and housed in M&M’s iconic crisp shell.

Richard Weisinger, Mars Wrigley’s Portfolio Director, said since the news broke in December, they have seen excitement and anticipation over the latest innovation, with their social media being flooded with consumers asking when they can get their hands on it.

“We are rapt that the wait is officially over and we’re now able to release M&M’s Cookie Dough to M&M’S fans across the country.

“In a world-first for the M&M’S brand, we believe the cookie dough centre, housed in the heart of our iconic M&M’S milk chocolate and crisp shell, will be a fan favourite – delighting not only from a flavour perspective, but providing consumers with a fun, textual eating experience. It’s already my new goto treat for Friday nights in with a movie.”

M&M’s Cookie Dough is available at convenience stores, independent retailers, and supermarkets, with a RRP of $5.50.

Create next-level drinks with Nestlé Professional Dessert Mixes Now is the perfect time for café owners and foodservice operators to embrace exciting cold beverage ideas to attract new customers with a menu that shines.

Having seasonal or ‘limited-edition’ items using iconic brands can generate buzz and add a sense of urgency.

The Nestlé Milkybar Dessert Mix and Nestlé Aero Dessert Mix are designed to do just that, allowing foodservice operators to easily elevate their summer menu, not just with desserts, but with unique cold drinks ready in minutes.

Joanna Yuen, Nestlé Professional Master Barista, said the Nestlé Milkybar Dessert Mix and Nestlé Aero Dessert Mix can help create a range of delicious drinks with lots of opportunities for customisation.

“Stocking versatile products for making beverages is highly valued and makes the job much easier during the busier summer months.

“Focusing on presentation is also important when putting together an eye-catching drinks menu. Garnishes, like edible flowers, a colourful straw, or stylish glassware will add visual appeal.”

Both Nestlé Milkybar Dessert Mix and Nestlé Aero Dessert Mix are gluten free with no added colours or flavours and are available to purchase from Foodservice distributors or Amazon. www.c-store.com.au

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PRODUCT RANGING

Fresh new look, same great taste Pepsi, the iconic global brand, is unveiling a new logo and visual identity system, the first update of the iconic Pepsi globe logo in 14 years.

This bold new look will roll out in Australia from February, marking the brand’s next era with an eye toward the future.

The new design evolves the Pepsi brand to represent its most unapologetic and enjoyable qualities, and will span across all physical and digital touchpoints, including packaging, fountain and cooler equipment, instore display, and online content.

“At PepsiCo, we design our brands to tell a compelling and holistic story. Pepsi is a shining example of a brand that has consistently reinvented itself over 125 years to remain a part of pop culture and a part of people’s lives,” said Mauro Porcini, SVP and Chief Design Officer of PepsiCo. “We designed the new brand identity to connect future generations with our brand’s heritage, marrying distinction from our history with contemporary elements to signal our bold vision for what’s to come.”

The logo and visual identity thoughtfully borrows equity from its 125-year history and incorporates modern elements to create a look that is unapologetically current and undeniably Pepsi. The updated Pepsi globe and wordmark unite to fit into a variety of settings and emphasize the distinctive Pepsi branding, along with a new distinctive signature Pepsi pulse that evokes the “ripple, pop and fizz” of Pepsi-Cola with movement. It also brings the rhythm and energy of music, an important and continuing part of the Pepsi legacy.

Regular protein bars are a big missed steak compared to Chief Beef Bars Just like jerky, but in a bar. Chief Beef Bars are a clean, meaty beef snack crafted to satisfy savoury cravings.

Each beef bar starts off as 80gms of organic grass-fed beef brisket and topside before the water weight is taken out and it is slow dried to create a tender and easy to eat snack that’s packed full of flavour and nutrients such as iron and Vitamin B12.

Made with no nasty preservatives and no added sugar, the Chief Beef Bars contain more protein than three eggs and have an incredibly long shelf-life, with the ability to be stored for up to 12 months without refrigeration.

Gluten-free, dairy-free, and with low carbs and low sugar, Chief Beef Bars are a high-protein snack that can replace a meal when you’re on the move. You can even chuck them in the glovebox as heat won’t affect them, making it a perfect pre or post workout snack.

Find out more at wearechief.com or to stock Chief Beef Bars, contact The Distributors.

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February/March 2024

same GReaT TasTe

ZeRO sUGaR PEPSI MAX AND THE PEPSI GLOBE ARE REGISTERED TRADE MARKS OF PEPSICO INC., NY, USA. USED UNDER LICENCE IN AUSTRALIA BY ASAHI BEVERAGES

PRODUCT RANGING

Remedy’s new chef-inspired flavours Remedy Drinks, the leading Australian better-for-you beverage brand known for its commitment to crafting highquality, naturally fermented beverages and soft drinks, is delighted to announce the appointment of Chef Ben Shewry as its official ambassador.

Together, they are excited to launch two exclusive limitedrelease Remedy Kombucha flavours, Lime Spider, and Apple & Rhubarb Crumble, to celebrate the partnership.

Chris Gillard, Managing Director at Remedy Drinks, said they are thrilled to welcome Chef Ben Shewry, chef and owner of world-renowned Attica restaurant, to the Remedy Drinks family as official ambassador.

“His passion for quality and creativity aligns seamlessly with our values, making him the perfect partner to help us showcase the craftsmanship behind our drinks.”

Shewry shared his excitement about the collaboration, stating: “I’m really excited to be working with an inspiring Melbourne company in Remedy Drinks and can’t wait to share what we’ve created together in the new year!”

These limited-release flavours will be available from early February for a short four-week period in Coles supermarkets and then exclusively in independent grocers across Australia and online through the Remedy Drinks website.

Gippsland Dairy’s new sustainable packaging Gippsland Dairy, owned by Chobani, has launched new packaging for its 160-gram products, reducing the plastic content by 44 per cent.

The transformation of the product’s packaging is a key milestone in the company’s progress against Chobani’s commitment to the Australian Packaging Covenant Organisation (APCO) and the 2025 National Packaging Targets (the 2025 Targets), including to reduce unnecessary or problematic plastics.

Once all Gippsland Dairy 160-gram products transition to the new packaging, Chobani is set to remove 95,000 kilograms of plastic from its business in 2024 and reduce greenhouse gas emissions associated with sourcing and transporting the packaging (lids and spoons) through its supply chain and to retailers.

The new packaging maintains the signature Gippsland Dairy 160-gram look and feel but will now feature a black band around the circumference of the pot’s top, ensuring consumers can easily spot the distinctive product on the shelf.

“As we evolve our packaging to align with our sustainability goals, we’re equally committed to enhancing the consumer experience.

By maintaining the iconic look of our packaging, consumers can easily identify and continue to enjoy our delicious Gippsland Dairy yogurts, now with a significantly reduced environmental footprint.”

34

February/March 2024

PRODUCT RANGING

Upgrade your style game with Holy Caps In the dynamic world of retail, finding

“Stores like Cotton On have proven

the perfect balance between quality,

to the market that it doesn’t have to

and swag has only grown with constant

affordability, and style can be difficult.

cost an arm and a leg to sport a trendy

exposure to social media influences.

That’s where Holy Caps comes in with

wardrobe,” says Daniel Avrahami,

a mission to provide retailers with an

distributor of Holy Caps and Director of

for retailers to tap into a product

unbeatable selection of headwear that

Smooth Wholesales.

category that has historically catered

meets the demands of today’s fashionconscious consumers.

Holy Caps has entered the market at a time when consumers are increasingly

budget-conscious, yet their thirst for style

Avrahami underscores the opportunity

to a narrow demographic, now ripe for broader sales opportunities.

“In addition to truckers and tradies, younger generations are demonstrating a keen interest in apparel, and the data speaks for itself – if you range it, they will buy it.”

Smooth Wholesales has partnered with Holy Caps as an exclusive distributor and plans to grow the label through its large network of P&C customers.

“We’re excited to offer a product like this because we’ve seen how popular it is in the short time we’ve ranged it and it’s only going to get bigger,” enthuses Avrahami.

For more information on the Holy Cap range, visit www.smoothwholesales.com.au or call on 1300180770.

Smith’s launches Rebel Moon inspired range Smith’s has teamed up with global streaming giant Netflix for a range of three limited-edition chip flavours, inspired by Zack Snyder’s epic Rebel Moon.

Sparked by the two-part sci-fi fantasy epic, the limited-edition new range sees three flavours join the ranks for Summer; tangy Double Crunch Planet Daggus Spicy Chicken Skewers, moreish Crinkle Cut Veldt Farmhouse Cheese Bread and delicious Crinkle Cut Motherworld Feast Roast Beef Garlic & Herb.

Sporting iconic characters from the franchise, the Smith’s Rebel Moon range will descend from the Motherworld for the next six months, offering a unique rebellious twist on fanfavourite flavours for Aussie chip and movie fanatics to try.

Vandita Pandey, Chief Marketing Officer ANZ, Snacks and Beverages at PepsiCo, said there’s no better streaming and snacking combo than Netflix and chips.

“At a time when ‘what are you watching?’ is the new ‘how are you?’, this campaign infuses the Smith’s brand with cultural relevance, by giving them an entry pass to join a Rebel Moon mission directly linked to our chips.”

The New Smith’s Rebel Moon range is available to purchase now at independent retailers, Coles, and Woolworths. www.c-store.com.au

35

PRODUCT RANGING

Sour Patch Kids releases gaming inspired pack Mondelez Australia, parent company of Sour Patch Kids, has released a new gaming-inspired pack, Sour Patch Kids Gamerz.

The new offering features a mix of fruit flavoured jellies in gaming themed shapes including a controller, buttons, headset, trophy, Sour Patch Kid with a VR headset and the iconic Sour Patch Kid. It also features a brand-new flavour – Boysenberry – which joins familiar favourites Blue Raspberry, Strawberry, Lime, Orange, and Pineapple.

Perfect for young people, or even those young at heart, who love having a chewy, sour treat while playing video games. It’s even perfect for those who don’t like video games, in fact, it’s perfect for anyone that simply enjoys a sour treat!

It is available now in leading P&C retailers including 7-Eleven, BP, Impulse, Viva, and Ampol, as well as supermarket chains Woolworths, Metcash, and Coles.

Uncle Tobys launches new lunchbox snacks Uncle Tobys is bursting into the new school year with a tasty array of brand-new snacks perfect for filling little lunchboxes.

The new range include Uncle Tobys Le Snak Mini Crackers, Uncle Tobys Cookies and Crème Muesli Bar, Uncle Tobys Raspberry Choc Chip Muesli Bar, and Uncle Tobys Roll Ups Groovy Grape.

Crunchy, crispy and perfectly seasoned, Uncle Tobys Le Snak Mini Crackers come in a mini, bite size format and have a 4 Health Star Rating. They are made with 100 per cent Aussie whole grain wheat and oats, are a source of whole grain and fibre, and have no artificial colours or flavours.

Jessica Barnes, Head of Marketing Snacks at Uncle Tobys, said selling the Le Snak cracker on its own has been their most requested snack.

“Feedback from families who were invited to taste test the new Le Snak Mini Cracker has been overwhelmingly positive. We expect this to be a big hit in lunch boxes for Back-To-School this year.”

Uncle Tobys Cookies and Crème Muesli Bar, Uncle Tobys Raspberry Choc Chip Muesli Bar, and Uncle Tobys Roll Ups Groovy Grape can all be found at independent grocers for RRP $5.50. Uncle Tobys Le Snak Mini Crackers is available exclusively at Coles for RRP $5.50.

36

February/March 2024

NEW COFFEE FLAVOURED SWIRLS AND CURLS COATED IN CADBURY DAIRY MILK MILK CHOCOLATE

NEW

DAIRY MILK AND THE COLOUR PURPLE ARE TRADE MARKS USED UNDER LICENCE.

PRODUCT RANGING

“We know Aussies go crazy for the Cookie Dough, being able to expand the range into KitKat blocks means there’s a perfect excuse to share a delicious break with others.”

– Melanie Chen, Head of Marketing Confectionery, Nestlé

KitKat Cookie Dough – Doughlicious!

Have a dough-licious break with KitKat Cookie Dough - available in a 170g block and 45g bar.

BACK BY POPULAR demand, KitKat has

delicious, exciting and elevates any break thanks

launched its Cookie Dough range, featuring

to its indulgent filling.

one of its most requested bring backs – the KitKat Chunky Cookie Dough bar, plus a brand-

Dough, being able to expand the range into

new Cookie Dough-filled chocolate block – the

KitKat blocks means there’s a perfect excuse to

perfect addition for sharing.

share a delicious break with others.”

Both products will feature KitKat’s signature

others, the KitKat Cookie Dough-filled chocolate

covered in smooth milk chocolate, promising to

block is made of rows of crisp oven-baked wafer

be dough-lightfully delicious

fingers to snap and share. While the KitKat Chunky

at Nestlé, said: “It’s no surprise that our KitKat

February/March 2024

Perfect for those who want to share a break with

crisp wafer, filled with Cookie Dough filling

Melanie Chen, Head of Marketing Confectionery

38

“We know Aussies go crazy for the Cookie

Cookie Dough bar is for those wanting a chunkier, more indulgent way to break on their own.

Chunky Cookie Dough bar has been one of the

The KitKat Cookie Dough range is out now and

most requested bring backs from our fans – it’s

can be found in convenience retailers nationwide.

OPINION

A blueprint for success in 2024 As we stand at the beginning of 2024, the Australian convenience landscape is on a transformative journey.

Words Theo Foukkare, CEO, Australian Association of Convenience Stores (AACS) DRIVEN BY SHIFTS in consumer preferences, rapid technological innovations, and an intensified focus on sustainability, convenience retailers are facing a paradigm shift that demands not just survival but a proactive embrace of challenges and opportunities. Key focus areas for ongoing success must be focused on:

1. Digital Transformation Embracing cutting-edge technologies is not merely a luxury but an imperative. The influence of mobile apps, contactless payments, and online ordering systems is already evident.

This year marks the moment for convenience stores to elevate these initiatives. The call is to innovate, streamline operations, enhance the customer experience, and stay at the forefront of the digital revolution.

2. Hyper-personalisation In the era of hyper-personalisation, successful convenience retailers will be those weaving strong connections with their customers. Leveraging the power of data analytics is key to understanding consumer behaviour, allowing for the tailoring of promotions, offers, and product ranges.

Loyalty programs should metamorphose from simple point systems into immersive experiences, simultaneously rewarding customer loyalty and providing invaluable insights that inform crucial business decisions.

3. Sustainability as a Core Value As global consumer consciousness pivots towards sustainability, convenience retailers must engrain it as a core value. From adopting eco-friendly packaging to implementing energy-efficient operations, consumers are increasingly drawn to businesses actively contributing to environmental protection. In 2024, retailers must take big steps to reduce their sustainability footprint, responsibly source products, and engage in meaningful initiatives that resonate with environmentally conscious consumers.

4. Adaptability in Product Offerings The era when convenience stores were known for chips and drink is fading into oblivion. Today’s consumers seek healthier, fresher options that align with their evolving lifestyles. Successful convenience retailers in 2024 will 40

February/March 2024

continue to diversify their product offerings, featuring a broader array of fresh, organic, and nutritious items.

Ready-to-eat meals, premium snacks, and specialty beverages should take centre stage. These changes should complement the core food offering that convenience customers love like pies, sausage rolls, and sandwiches.

5. Revolutionising the In-Store Experience The in-store experience stands as a make-or-break factor for convenience retailers. Interactive displays, trials of products, and real-time promotions through digital signage create an immersive and dynamic atmosphere, transforming routine visits into memorable interactions, and repeat purchase behaviours.

6. Strengthening Last-Mile Delivery The convenience in convenience stores is no longer confined to physical locations. Last-mile delivery services have become integral to meeting the expectations of modern consumers. In 2024, retailers should not only optimise in-store logistics but also invest in efficient last-mile delivery solutions. Collaborating with thirdparty delivery providers or developing in-house delivery capabilities can bridge the gap between online convenience and doorstep satisfaction.

7. Community-Centric Approach Community engagement remains a cornerstone of success for convenience retailers. Beyond simply transactions, fostering a sense of community through local sponsorships, events, and partnerships can create a loyal customer base. Being a recognisable and valued presence in the local community you serve not only grows sales but also enhances your brand’s reputation.

The survival and continued success of convenience retailers in Australia in 2024 hinges on a multi-faceted approach that integrates technology advancements, consumer-centric strategies, sustainability initiatives, and community engagement. By embracing change, staying ahead of trends, and understanding the evolving needs of your customers, convenience stores can not only weather any storm but emerge as leaders in the retail revolution.

The journey to 2025 and beyond is a path of innovation, adaptability, and a strong commitment to delivering unparalleled convenience in an ever-changing world. ■

www.aacs.org.au/membe

rship

OPINION

Convenience retail merchandising in 2024 – an odyssey or good retail?

Taking a look at the challenges and opportunities the year ahead.

Words Jason Joukhador, GM Merchandise and Dealer Channel, Ampol

AS WE ENTER 2024, the convenience retail landscape is poised for another year of transformation, driven by a confluence of factors that demand our attention and strategic foresight.

The year ahead promises both challenges and opportunities, and as retail leaders, we must navigate this evolving terrain with agility and innovation. Here are my top five crucial points of deliberation for the year ahead.

“The year ahead promises both challenges and opportunities, and as retail leaders, we must navigate this evolving terrain with agility and innovation.”

- Jason Joukhador, GM Merchandise and Dealer Channel, Ampol

1. Economic Pressures Shaping Consumer Behaviour The lingering effects of economic pressures continue to be a significant influencer on consumer behaviour. As we witnessed in recent times, shifts in disposable income and employment instability directly impact spending habits. Consumers are becoming increasingly discerning, seeking value without compromising on quality. Retailers must be attuned to these economic nuances, leveraging data analytics to gain insights into evolving consumer preferences and adapting their offerings accordingly.

2. The Ascendancy of AI in Retail Convenience Artificial Intelligence (AI) has transcended its status as a buzzword to become a transformative force in the retail sector, including in the convenience space. AI is redefining the way we operate and engage with our customers. Smart retailers are leveraging AI to enhance operational efficiency, improve ranging, streamline supply chains and elevate customer satisfaction. As we embrace the potential of AI, it becomes imperative to strike a balance between automation and maintaining the human touch where it counts.

3. Sustainability in a Climate-Stricken World to Global Environment The urgency of addressing climate change has reached new levels, with each passing year breaking new records. Consumers are increasingly conscious of their ecological 42

February/March 2024

footprint, demanding that retailers adopt sustainable practices. The retail convenience sector, with its reliance on single-use packaging and energy-intensive operations, resulting in the need to embrace sustainability as a core ethos. As guardians of convenience, we have a pivotal role to play in fostering a more sustainable future.

4. Digital Evolution The digital evolution in retail continues unabated, with e-commerce becoming an integral part of the retail experience. Seamless onlineoffline integration is no longer a choice but a necessity. Retailers must invest in robust digital infrastructures that facilitate omnichannel experiences, blurring the lines between physical and digital retail spaces. Moreover, harnessing the power of social media and influencers is vital for maintaining brand relevance and engaging with tech-savvy consumers who expect instant gratification and personalised experiences.

5. Loyalty and Personalization In an era where consumers are inundated with choices, the astute retailers are cultivating loyalty through personalised experiences. Loyalty programs must evolve beyond mere discounts, incorporating data-driven personalization to anticipate and meet individual needs. Harnessing customer data ethically, retailers can curate bespoke experiences, fostering a sense of connection that transcends transactional interactions.

By understanding the economic landscape, embracing AI, championing sustainability, evolving digitally, and prioritising loyalty and personalisation, retailers in the convenience sector can navigate the path ahead with confidence, ensuring that convenience remains at the heart of our offerings in this dynamic retail convenience environment. Some would argue these are major disruptions, others would call it another year of what good retail demands.

Wishing you a joyful journey into 2024— until next time, embrace and relish the upcoming year. ■

OPINION

How P&C can evolve in 2024 For the petrol and convenience industry, success in 2024 hinges on strategies that cater to a diverse range of omnichannel shoppers.

Words Paul Koopmans, ANZ Vice President, Worldpay from FIS

THE PETROL AND CONVENIENCE sector, like many others, is faced with its own set of challenges amid broader retail disruptions. FIS’ Global Innovation Report found that retailers are more likely than average to be facing financial risk, with 89 per cent concerned about rising inflation, and 78 per cent worried about supply chain disruption.

As we enter the new year, economic headwinds are steering consumers towards spending on essential items and adopting a more selective palette. This makes it a necessity for retailers to adapt to evolving consumer preferences and tech innovations. Retail-tech trends are now focused on enhancing customer experience, leveraging AI-driven innovations, and integrating embedded payment solutions. But how and where these are applied is likely to change.

While the adoption of ecommerce, smart devices, and social platforms may have traditionally been led by younger generations, older generations are not only catching up but are eager for change.

For the petrol and convenience industry, success in 2024 hinges on strategies that cater to a diverse range of omnichannel shoppers.

“Retailers need to connect not only across digital touchpoints but also across diverse consumer segments. Those who can effectively navigate this landscape will be best positioned to thrive in an increasingly competitive environment.”

– Paul Koopmans

Frictionless access to hybrid services The integration of services, such as ‘buy online pay in store’ (BOPIS) and click and collect, is increasingly prevalent and reflects the consumer preference for frictionless access to hybrid services. We have seen joint partnerships between leading petrol and supermarket chains Ampol and Woolworths, facilitating online orders for drivers to easily collect groceries while filling fuel.

Exciting new ways to aid product discovery, price and feature comparison across channels Petrol stations and convenience stores can embrace augmented reality (AR) or virtual reality (VR) within their mobile apps, providing customers with immersive 44

February/March 2024

experiences for discovering new products. Moreover, implementing tools for easy price and feature comparisons across channels can empower consumers to make informed purchasing decisions.

Intuitive tools to help buyers navigate in store e.g. QR codes and apps Implementing QR codes and intuitive navigation features within mobile apps can assist customers while in-store.

While QR codes can provide additional information about products or promotions, mobile apps can guide customers through the layout of the petrol station and convenience store, improving the overall shopping experience.

Individually personalised offers, promotions and loyalty schemes As consumers’ appetite for savings remains strong, brands can benefit by improving their ability to deliver the right offer to the right customer at the right time.

The investment into loyalty schemes, promotions and individually personalised offers can provide brands with a competitive edge at a heightened time of store-to-store comparison shopping.

AI-driven content, bot-support and curated offerings Integrating AI-driven chatbots can offer real-time support to customers, providing information about products, promotions, and personalised recommendations. Furthermore, AI algorithms can curate offerings based on customer preferences, creating a more tailored and engaging shopping environment.

Payment choice to help shoppers budget responsibly or one-click and reoccurring payments that support mobile app users Payment flexibility, with options to prepay or use apps, digital wallets, contactless payments and cryptocurrency, among others can add an additional layer of convenience and ultimately persuade consumers to become recurring shoppers.

Overall, retailers need to connect not only across digital touchpoints but also across diverse consumer segments. Those who can effectively navigate this landscape will be best positioned to thrive in an increasingly competitive environment. ■

INDUSTRY UPDATES

Asahi Beverages announces new Group CEO AMANDA SELLERS HAS been appointed

ability to innovate and meet our consumers’ needs

the first female CEO of a regional

in a rapidly evolving beverages market,” said Sellers.

headquarters within the Asahi Group.

Atsushi Katsuki, President and CEO of Asahi

Sellers joined Asahi Beverages

Group Holdings, said the Board of Asahi Group

almost five years ago as the Chief

Holdings has huge confidence in Amanda’s ability

Financial Officer and has previously

to continue with the impressive growth trajectory

held senior positions across the

of the business in Oceania while also delivering

beverage industry spanning 20 years,

its sustainability commitments and setting the

including at Treasury Wines, where she

company up for long-term success in Australia and

was CFO Asia and Europe, and before

Above: Amanda Sellers, new Group CEO of Asahi Beverages

Allpress Espresso coffee, but our team’s passion and

the new Group CEO of Asahi Beverages,

New Zealand.

that, CFO Australia and New Zealand.

“Amanda has played a critical role in the success

Following a six-month period as the interim

and growth of Asahi Beverages as Group CFO and

Group CEO, Sellers has now been announced as the

more recently as interim Group CEO of the business.

permanent appointment.

She brings to the CEO role more than 20 years

“It’s a tremendous honour to be entrusted with

of industry and leadership experience which will

the leadership of Asahi Beverages at a key time for

equip her well in leading Asahi Beverages, Oceania’s

our business as we continue to invest in and grow

leading beverages company.

our operations across Australia and New Zealand.

“With Amanda’s appointment as Group CEO

“Asahi Beverages’ continued success in Oceania

of Asahi Beverages, we also celebrate Amanda

lies not just in our great brands, like VB, Asahi

becoming the first ever female CEO of a regional

Super Dry, Schweppes, Long White, Cool Ridge, and

headquarters within the Asahi Group.”

Norco’s Lismore factory reopens following extensive flood damage NORCO’S LISMORE ICE-CREAM factory is welcoming back its 130 employees following an 18-month and $100 million recovery process.

The factory, which produces approximately 42 million litres of ice cream per year, suffered significant damage from the 2022 Lismore floods but has now reopened featuring flood-proof design and technologies that have equipped the site to defend a 15-metre flood – higher than the 2022 levels.

Michael Hampson, CEO at Norco, said it’s been a challenging period for their co-operative, but they certainly wouldn’t be standing here today without all of their hard work, commitment, and belief in the vision for Norco.

“We understand just how important the factory is to our workforce and the Lismore community and will remain futurefocused on continuing to create opportunities for the region, maintaining a strong focus on innovation, jobs creation and investment in people, to create exciting career development pathways from right here in Lismore.”

Over $40 million in funding from the Australian and NSW governments contributed to the factory’s recovery process.

“I’d also like to express my sincere gratitude to both the Australian and NSW Governments who facilitated the Anchor Business Support Program, and delivered the funding which has enabled us to rebuild in a way that has modernised our operations and introduce product innovations and technology that will help cement the Northern Rivers of NSW and its thriving ‘food belt’ as a food innovation, centre of excellence,” said Hampson.

46

February/March 2024

Tara Moriarty, NSW Minister for Agriculture and Minister for Regional NSW, said the reopening of the Norco ice cream factory marks a huge milestone in the flood recovery efforts for the Northern Rivers.

“As one of the biggest employers in the region, we know how important it is to invest in projects that deliver resilient infrastructure in regional communities so people can stay in jobs and the economy can thrive.

“Our shared goal with the 100 per cent Australian dairy farmer owned Norco, is that in the event of any future flooding event, this investment in the rebuilt ice cream factory has ensured the business will be able to get back into action quicker.”

The new factory features flood-proof design and technologies

INDUSTRY UPDATES

ACCC clears Viva Energy’s acquisition of OTR VIVA ENERGY HAS received the green light for its acquisition of OTR Group after committing to divest 25 Coles Express sites in South Australia.

Viva initially offered to divest 23 of its 32 retail sites in Adelaide.

However, the number of sites to be divested increased to 25 in response to concerns raised by the consumer watchdog.

Stephen Ridgeway, ACCC Commissioner, said the ACCC was concerned that the proposed acquisition would adversely affect competition and reduce choice for consumers in Adelaide and Ceduna.

“Without the divestiture, the proposed acquisition would combine the largest retail fuel network in South Australia with Viva Energy’s retail network, providing Viva Energy with an extended network that is significantly larger than its next largest rival.”

Chevron has been approved as the purchaser of the 25 Coles Express sites to be divested, and in exchange, Viva Energy will receive 13 Chevron sites located in Queensland, New South Wales, and Western Australia.

“As part of our assessment, we took into account Chevron’s previous and current experience in the Australian fuel industry, as well as its financial capability and plans to maintain and operate the 25 divestiture sites,” said Ridgeway.

Viva will acquire 184 OTR retail fuel sites

The ACCC’s review focused on areas in which the OTR Group and Viva Energy’s operations overlap, which is predominantly in South Australia and the Northern Territory, in which the ACCC considered the competition effects at both the retail and wholesale levels.

Viva Energy will acquire 184 OTR retail fuel sites: 153 sites in South Australia (115 of which are in Adelaide), 15 sites in the Northern Territory, eight sites in Western Australia, 11 sites in Victoria, and two sites in New South Wales. It now plans to extend the OTR brand to Coles Express sites in states outside South Australia.

Bowser Bean Café implements new training program BOWSER BEAN HAS implemented a training program to

retail centres, more premium food offerings, healthier foods,

address industry challenges such as skills shortages and the

and increased shopping choices.

shifting role of service stations.

The program, named the Daily Grind and delivered through the multi-location software solution FranConnect, offers staff the ability to complete training from wherever and whenever they want.

Jane Tierney, In-House Counsel at Bowser Bean, said they needed a better way to communicate with their frontline staff,

Tierney explained that the industry is an evolving space, and there is a question mark about what a traditional servo is and what it is going to become.

“This creates a gap between business operations and a company’s training practices. It’s a nationwide challenge and we believe we’re on the front foot.

“Food services are increasingly becoming a large part of

who are the most important people in the business when it

service station operations, but across the industry we haven’t

comes to addressing customer needs.

seen enough of the training that is required to facilitate this

“The new system ensures all our staff have the highest

shift. Our training program ensures our team are skilled and

proficiency of skills for their role while at the same time

resourced to grow with the evolving needs of the business,”

meeting all the external regulatory requirements including in

said Tierney.

relation to food safety and forecourt management. Now we know we’re always exceeding expectations.”

One of the issues across service stations is a national skills shortage at the manager level, and through offering in-house training, Tierney said they are able to build and train their own managers rather than try and fill the positions externally.

“Our managers must have a unique skill set, such as the capacity to drive growth and business development. Through a modular training program that builds over time, we can offer this professional development to selected team members; these are also great skills for them to have throughout their careers.”

Another issue is the ever-evolving nature of the P&C industry, such as the introduction of electric vehicles, convenience-based

Staff can complete the training wherever and whenever they want www.c-store.com.au

47

INDUSTRY UPDATES The 7-Eleven Australian business will operate as a wholly owned subsidiary of 7IN

7-Eleven Australia sold to 7-Eleven International LLC for $1.7bn 7-ELEVEN’S AUSTRALIAN arm has been sold

Michael Smith, Chairman of 7-Eleven Australia,

to 7-Eleven International LLC (7IN) in a deal

said that 7IN sees the potential of the 7-Eleven

worth $1.71 billion.

Australia business and shares their vision to be the

The Australian business processes around

first choice in convenience retailing in Australia.

250 million transactions each year across roughly

“They bring a strong understanding of the

750 stores and supports the employment of more

convenience market globally and will continue to

than 9,000 people across the corporate and

draw on Seven & I Holdings’ capabilities in product

franchise networks.

development capabilities, digital technology, and

The 7-Eleven Australian business will be

environmental, social, and governance (ESG)

operated as a wholly owned subsidiary of 7IN,

initiatives to further strengthen the 7-Eleven brand

headquartered in Melbourne, with the current

in this market.”

management team continuing to lead the business under new ownership.

Seven & I, the parent company of 7IN, stated

Commenting on behalf of the shareholders of 7-Eleven Australia, Russell Withers said now is the right time for their families to pass the business to

that it intends to establish itself as the clear

new owners to continue to build and develop this

industry leader in the Australian convenience store

wonderful brand.

market, and it believes there is significant growth

“The Withers and Barlow families have had a

potential and the ability to open new stores across

proud association with the 7-Eleven brand since

the country.

we brought it to Australia in 1977. From a single

“By utilising the product strength and

store in suburban Melbourne, 7-Eleven has grown

operational know-how of the business cultivated

to a network of over 750 stores across Victoria,

in Japan and North America and experience

New South Wales, ACT, Queensland and Western

cultivating synergies through 50 M&A transactions

Australia, processing 250 million transactions

since 2005, the company expects that it will be

each year, and employing more than 9,000 people

able to increase product sales and improve gross

across the corporate and franchise network.

product margin, further reduce costs, strengthen

“We are confident that 7IN will be strong

the customer base, and realise further innovation

custodians of the business and support the future

and an even greater increase in corporate value,”

growth and success of 7-Eleven as the first choice

said Seven & I Holdings in a statement.

in convenience retailing in Australia.”

7-Eleven Australia appears to have impressed

7-Eleven in Australia has been owned by the

the Japanese company with its focus on its food

Withers and Barlow families since 1976 when they

offering, as the company looks towards offering a

signed the area licence agreement to bring the

world-class retail offering that is centred around

brand to Australia, before opening the first store

food as its ideal group image for 2030.

in Oakleigh, Victoria in 1977.

48

February/March 2024

“The Australian business processes around 250 million transactions each year across roughly 750 stores and supports the employment of more than 9,000 people across the corporate and franchise networks.”

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PETROL NEWS

Overall average ULP fuel price in Perth in 2023 was 183.9 cpl

Independent retailers offered Perth’s cheapest fuel in 2023 INDEPENDENT RETAILERS, SUCH as Vibe, Atlas Fuel,

While Costco outlets at Perth Airport and Casuarina

FastFuel 24/7, and Liberty, offered Perth’s cheapest

topped the cheapest fuel list overall, an annual

non-membership-based fuel in 2023.

membership is required to access these sites.

Research by FuelWatch showed that motorists

Outside the membership outlets, the Vibe OPT

could save more than $1200 a year by shopping

outlet in Kwinana Beach was the cheapest, with

around for their fuel.

average ULP prices of 169.5 cents per litre (cpl). Atlas

Sue Ellery, WA Commerce Minister, said this data shows why shopping around for fuel on the FuelWatch website can make a meaningful difference to household budgets.

Fuel Kwinana followed closely with 169.7 cpl and Atlas Fuel Ascot in third spot with 169.9 cpl.

The overall average ULP price in Perth last year was a record 183.9 cpl, up on the 180.1 cpl recorded in 2022

“2023 saw the return of a weekly price cycle for

when prices were temporarily dampened as a result of a

Perth, from a fortnightly one, which gave motorists

six-month reduction to the Commonwealth fuel excise.

some relief at the bowser knowing every Tuesday

The FuelWatch website, which is also accessible via

would be the cheapest time to fill up and a day when

the ServiceWA app, attracted more than 1.3 million

most retailers sell close to or below wholesale prices.”

visits a month on average in 2023.

BP names interim boss Murray Auchincloss as permanent CEO BP HAS APPOINTED FORMER CFO and interim CEO Murray Auchincloss as its new CEO following the shock departure of Bernard Looney last year.

BP said that Auchincloss, who has been interim CEO since September 2023, will take the role with immediate effect and will continue as a member of the BP board.

Helge Lund, Chair of BP, said that since September, BP’s board has undertaken a thorough and highly competitive process to identify the company’s next CEO, considering a number of high-calibre candidates in detail.

“The board is in complete agreement that Murray was the outstanding candidate and is the right leader for bp.

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February/March 2024

“His assured leadership, focus on performance and delivery, and deep understanding of the opportunities and challenges in the energy transition will serve BP well as we continue our disciplined transformation to an integrated energy company.”

Auchincloss, 53, joined Amoco Canada in 1992. Following financial and planning roles in Canada and the US, his career included periods as commercial director for BP’s Onshore North America business and CFO for BP’s North Sea business.

“It’s an honour to lead BP – this is a great company with great people. Our strategy – from international oil company to integrated energy company, or IOC to IEC – does not

Murray Auchincloss, new CEO of BP

change. I’m convinced about the significant value we can create,” said Auchincloss.

Auchincloss will receive an annual salary of £1.45 million (AUD $2.8 million), with provisions relating to bonus opportunity, bonus deferral and performance shares in accordance with BP’s 2023 remuneration policy as approved by shareholders.

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PETROL NEWS

Darwin green hydrogen hub secures Major Project Status THE NORTHERN TERRITORY Government has awarded Major Project Status to TE H2’s Darwin H2 Hub, which will produce green hydrogen.

The facility will use solar energy to produce more than 80,000 tonnes of renewable-based hydrogen each year, which will then be used for domestic and international export.

Kam Ho, Managing Director at TE H2, said Major Project Status marks a significant milestone in the project development.

“The proposed Darwin H2 Hub is TE H2’s cornerstone project and aims to be the Northern Territory’s first solar-powered green hydrogen production and export project, delivering sustainable and cost-competitive power for domestic use and global export.”

The facility, which has the potential to create 800 jobs during construction and 175 positions once operational, will assist both Australian and global companies to decarbonise through the use of green hydrogen, and to facilitate industries in a net zero economy.

Eva Lawler, Chief Minister of the NT, said The TE H2 project is an example of how this Government sources new clean energy projects that will significantly contribute to the Territory’s drive to reduce greenhouse gas emissions.

“With our abundant solar resources and our strategic location to support exports into the Indo-Pacific, the production of green hydrogen is a key opportunity for the Territory to address the growing demand for this green energy globally.”

The facility will produce over 80,000 tonnes of renewable-based hydrogen each year

TE H2 has been established by Total Eren. TE H2 is a joint venture formed by TotalEnergies and EREN, which develops large-scale green hydrogen projects benefitting from exceptional renewable resources.

The company will continue to progress its project, working towards design of the downstream facility, transmission infrastructure and upstream generation facility.

“The Darwin H2 Hub will contribute to driving the Northern Territory Government’s vision of achieving net zero emissions by 2050 and will enable other industries to move towards decarbonisation and sustainable industry,” said Ho.

Mobile rescue van deployed to help stranded EVs in Perth INSURANCE COMPANY RAC has announced it has deployed an electric roadside assistance van to help stranded EV drivers in Perth.

The dedicated service, which is available to all RAC roadside assistance members in the metropolitan area, is part of a trial to test the capabilities of electric roadside assistance vans as well as provide a mobile battery top-up service for EV drivers who run out of charge.

Will Gosby, General Manager of External Relations at RAC, said while they are seeing increasing interest in EVs across WA, one of the biggest concerns continues to be access to charging infrastructure.

“The new electric roadside assistance van is equipped with a mobile charger that can top up an EV battery that’s gone flat.

“This trial will help us understand the realities of using fully electric vehicles as part of our roadside assistance fleet, so we can start planning to add more in the years to come.”

The EV mobile charger can provide 15km of range in around 20 minutes – enough to get the driver to the nearest charging destination across the metropolitan area.

“It’s so exciting to be part of this trial, because we’re at the

“This trial will help us understand the realities of using fully electric vehicles as part of our roadside assistance fleet.”

forefront of change – supporting those motorists making the

- Will Gosby, General Manager of External Relations at RAC

John Williams, Roadside Assistance Patrol for RAC, is one of two patrols involved in the new service and said that their aim is get motorists back on the road as quickly and smoothly as possible.

early switch to electric.”

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February/March 2024

PETROL NEWS

Renewable hydrogen refuelling station launches in Victoria THE CSIRO AND Swinburne University of Technology’s

“The technology is an exciting piece in the puzzle in

Victorian Hydrogen Hub (VH2) have launched a $2.5 million

Australia’s renewable energy future and will deliver

clean hydrogen refuelling station.

long-term community and environmental benefits, boost

The state-of-the-art refuelling station is located at CSIRO’s Clayton site in Victoria and uses green hydrogen produced with electricity from renewable sources, which allows hydrogen cars to travel over 600km emissions-free on a full tank.

Dr Doug Hilton, Chief Executive at the CSIRO, said hydrogen

the economy and create new jobs and opportunities for Australia and Australians.

“Hydrogen is increasingly being recognised as ‘the fuel of the future’ – and for good reason. Hydrogen is the most abundant chemical element in the universe and, when used

will play a significant role in Australia’s energy transition and

to power fuel cell electric vehicles the only exhaust product is

the decarbonisation of our road transport sector.

water vapour.”

The station showcases the real-world application of hydrogen and will be used to demonstrate hydrogen’s utility for transport as well as be used to test emerging hydrogen technology and train the next generation on the use of hydrogen stations to ensure Australia remains internationally competitive.

Professor Karen Hapgood, Deputy Vice-Chancellor Research, Swinburne University of Technology, said the launch of the hydrogen station brings Australia another step closer to creating a carbon neutral world by 2050 or earlier.

“As a university with sustainability in our DNA, we are proud to be playing an important role in driving the implementation of the hydrogen economy in Australia, through our Victorian Hydrogen Hub and collaboration with CSIRO. “Hydrogen plays a key part in our transition to clean energy, and demonstration projects such as these help to test technical, regulatory and economic aspects of hydrogen refuelling

L-R: Patrick Hartley and Gordon Chakaodza

infrastructure, and support the urgent training and workforce development for this expanding hydrogen energy ecosystem.”

Viva Energy launches six-month Renewable Diesel demonstration VIVA ENERGY HAS partnered with Cleanaway in a six-month trial of its 100 per cent Renewable Diesel, with the aim of reducing emissions in the transport sector.

The demonstration will involve Cleanaway operating two waste collection trucks powered by Viva Energy’s Hydrotreated Vegetable Oil (HVO). HVO can be made from waste feedstocks such as used cooking oil and can reduce greenhouse gas emissions (GHG) from vehicles by up to 90 per cent.

Lachlan Pfeiffer, Chief Business Development and Sustainability Officer at Viva Energy, said they see great opportunities for this product to help abate emissions in the transport sector, and potentially a wide range of other diesel-using industries.

“Renewable Diesel is a ‘drop-in’ solution, so businesses do not need to make equipment or infrastructure investments nor changes to the operation of their truck fleet. It can also be blended with regular diesel at different ratios or supplied undiluted depending on what decarbonisation goals companies are trying to achieve.”

The Viva Energy Carbon Solutions team deployed a bespoke supply chain for this demonstration using 100 per cent Renewable Diesel, sourced from Neste’s Singapore operations, and will provide

an opportunity for councils and businesses to immediately reduce their Scope 3 emissions.

Mark Schubert, Managing Director and CEO of Cleanaway, said they’re pleased to be launching the HVO100 demonstration with two vehicles powered by this 100 per cent traceable and renewable fuel that will emit up to 90 per cent less greenhouse gas than regular fossil diesel.

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