C&I Retailing Magazine June-July 2022

JUNE/JULY 2022

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CONTENTS

EDITORIAL

June/July 2022

44 40 The state of the industry 06 FACE TIME

Garry, Robby and Gagan Sawhney, IPL Retail Group

10 STORE REVIEW

Puma Coolalinga strives to deliver exceptional customer service

14 AACS STATE OF THE INDUSTRY REPORT

Theo Foukkare, CEO, AACS, shares insights from the 2021 AACS State of the Industry Report prepared by CMA

20 LEADERS FORUM

Industry leaders share their thoughts on the state of the convenience and roadside retail industry

40 HOT COFFEE

Hot beverages sales are brewing up business once again

44 CHOCOLATE BARS

One of the most impulsive purchases in the P&C channel

48 PRODUCT RANGING

W

elcome to the June/July issue of Convenience & Impulse Retailing magazine.

In testament to the staying power of this industry, the future looks bright for convenience, as we continue to make our way towards the evolution of roadside retailing. While 2021 was impacted by COVID-19 lockdowns and border restrictions, all up it was a positive year, with some outstanding category results.

We outline these results in this issue with a five-page snapshot of the 2021 AACS State of the Industry Report, compiled by CMA, and graciously shared with C&I by Theo Foukkare, CEO, AACS. We see that Foodservice is continuing to be a shining light for the industry, and the fastest growing category. While Packaged Beverages have delivered the most dollar growth. All of this and more can be found beginning on page 14.

Also in this issue, we invited industry representatives, key retailers, and category leaders to share their valuable insights, highlight their achievements, pinpoint the challenges they feel need addressing, discuss how they have adapted to changing consumer demands, and how they view the immediate future for convenience.

What resulted was a masterclass in ingenuity, adaptability, and resilience. Each company has dealt with different constraints, restrictions, and difficulties, but have found their own workarounds, played to their strengths, and ensured a continuity of business.

It’s always a delight to speak with leaders in their fields that share such an unwavering passion and belief for the petrol and convenience industry. And while we don’t have a crystal ball to tell us how the remainder of this year will play out, if this year’s Leaders Forum is anything to go by, the future is bright for convenience and through hard work and dedication, we will continue to thrive.

To our readers, we hope you enjoy reading this issue of C&I Retailing as much as we enjoyed putting it together for you.

Cheers, Deb Jackson

We bring you all of the latest new product launches

56 OPINION

Theo Foukkare, CEO, AACS; Darren Park, CEO, UCB Stores

60 INDUSTRY NEWS

Ampol; APCO; Fupay; E-cigarettes

64 PETROL NEWS

Santos; Dire fuel warning; bp; Refineries

4 June/July 2022 | C&I | www.c-store.com.au

Safa de Valois

James Wells

Keith Berg

Thomas Oakley-Newell

PRIME TIME

Nurofen launches Meltlets that just melt in your mouth

New Nurofen Meltlets start to melt in your mouth quickly, for pain relief wherever and whenever you need it.

The next generation of ibuprofen pain relief melts on your tongue conveniently without the need for water, making them great for when you’re out and about.

These meltlets come in two pack sizes: 12s and 24s.

Visit nurofen.com.au/products/adult/ nurofen-meltlets-pain-relief-berry-burst200mg/ for more information.

Brought to you by Nurofen, Australia’s #1 Ibuprofen brand*.

For the temporary relief of pain and inflammation. Always read the label and follow the directions for use. Incorrect use could be harmful.

On-the-go indulgence Indulging Australians for more than 20 years, Signature Desserts’ singleserve cheesecakes are optimally designed for impulse purchases and easy on-the-go snacking.

The innovative packaging for the 100g cheesecake wedge was designed by Trevor Hansen when he was selling his cheesecake from an industrial snack bar, and even includes a spoon.

With an attractive starting RRP of $2.99, the single-serve desserts enable retailers to capitalise on the escalating fast-food market and meet the consumer demand for innovative, ready-to-eat desserts.

Scan the QR code for more information.

*Nielsen Scan #1 Ibuprofen Value & Volume MAT to 26.04.2022. RB-M-94954.

Tau brings new energy to the market

Widget World the ‘go to’ technology for customers and clients of MyBrandz

Tau Energy Drink is a new player in the energy drink market and featuring impressive health benefits and an affordable price-point, it’s set to shake things up.

It comes in a five-gram sachet and when added to water creates 250ml of energy drink at a price of RRP $0.99 per sachet or RRP $19.99 for a 48-unit box.

A spokesperson said that Tau Energy Drink offers returns for retailers as an impulse sale near the checkout or 48-unit boxes sell well on the shelf in the energy drink aisle.

It’s a world of product widgets linked into the existing MyBrandz PMS Software.

Wholesalers and suppliers can easily create product catalogues containing just a few, or even thousands of product images/data with matching barcodes in a matter of minutes.

This would be out of the question previously, unless your business had an in-house design team or the luxury of expensive graphic design agencies.

MyBrandz technology is the digital solution for the FMCG industry.

For further details contact Karen Campbell on Karen@mybrandz.com.au or visit www.mybrandz.com.au.

Published by C&I Media Pty Ltd (A division of The Intermedia Group) 41 Bridge Road (PO Box 55) Glebe NSW 2037

Group Publisher: C&I Media Pty Ltd Safa de Valois

Tel: 02 8586 6292 Fax: 02 9660 4419 E: magazine@c-store.com.au

Commercial Director: Safa de Valois

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.

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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.

Associate Publisher: Deb Jackson

Deputy Editor: Thomas Oakley-Newell

Editorial Director: James Wells

Production Assistant: Natasha Jara

Editor at Large: Keith Berg

Graphic Designer: Kea Thorburn

The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement.

The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information.

All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded save for those conditions and warranties which must be implied under the laws of any State of Australia or the provisions of Division 2 of Part V of the Trade Practices Act 1974 and any statutory modification or re-enactment thereof. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication.

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June/July 2022 | C&I | www.c-store.com.au

5

FACE TIME

L-R: Garry, Robby and Gagan Sawhney

LIVING THE AUSTRALIAN DREAM Garry, Robby, and Gagan Sawhney are the brothers behind IPL Retail Group, which manufactures, imports, and distributes to more than 1,500 customers throughout Australia. They were born in India and moved to Australia with bold ambitions. This is their story…

G

arry, Robby, and Gagan Sawhney, are three young and passionate brothers born into a close-knit family in the small city of Ambala, India.

While growing up, they knew they didn’t want to ‘work for the man’ and instead, they dreamed of overseeing their own destiny and career. Robby and Garry are both engineers and Gagan is qualified in commerce and IT, but the brothers say that their ambitions were always too high and their dreams too big for their hometown of Ambala.

Robby started his Australian dream in 1999. He came with the purpose of finding his place in the world and becoming somebody who could set an example and be an inspiration for others back home. He has always been very active in sports and most of his time spent away from work is either with family or playing cricket with his mates.

6 June/July 2022 | C&I | www.c-store.com.au

Robby is married and has two beautiful and intelligent children.

He started his life in Australia from scratch and with very little experience, and making it to where he is today has taken a lot of hard work and patience.

Today, Robby can proudly say that he has more than 15 years of experience in the retail industry. He has two pieces of advice that he has carried through from his early days of managing several gas stations, as it’s from there that he learned his business skills. His first piece of advice is to “keep things simple” and the second is that “it’s all about the customers”. He says that you should seek to find good customers, invest in them, learn from them, and look after them.

“I look after the marketing department in IPL Group and IPL Retail, and in recent periods of growth over the past few years I have been driven by both meeting the ever changing needs of consumers, and by driving existing and new business harder,” says Robby.

FACE TIME technology, mobile accessories, sunglasses, soft toys, reading glasses, caps, footwear, exotica fresheners, hats, socks, bandanas, and more.

They provide their customers with high quality products with an emphasis on pricing, quality, and top notch customer service.

In 2020, the brothers decided that the business needs to be more organized and structured than the ‘typical’ entrepreneurial business. Fiduciary and corporate governance would be needed to manage the business as well as to embrace the future opportunities and to be able to move in the corporate circles that the business was headed towards.

Team IPL at Metro SunnyHolt Rd, Blacktown with owner and staff

Garry is the elder of the brothers and came to Australia in 2004 after handling all of his responsibilities back home. He is an enthusiast, an avid traveller, and a movie buff, and in his initial days of struggling to adapt to his new life in Australia, he kept his spirits high by watching movies. He loves having a great conversation about the latest Netflix show over a coffee.

A man of God, Garry has always been very spiritual, and devotes his time to those in need. He is married with two sweet and bright young children who he loves more than anything in the world.

Garry looks after operations at IPL Retail Group and makes sure that the business is always running smoothly. In his career, he has gained more than 12 years of experience in the retail industry. He says the highlight of his career was when the people in the industry who he previously looked up to as mentors, started coming to him for advice.

“I am truly fortunate for all the success that life has given me and am grateful to my God for everything,” he says.

Gagan is the youngest of the three brothers and he came to Australia in 2013. He looks after IT development and product sourcing for IPL Retail, as the head of import and purchase.

“Our goal as a business over the coming years is to continue to refine and master our specialised field to be the undisputed expert in all of Australia. To constantly improve the service and performance levels of the team, their knowledge and expertise, and most importantly, to keep our customers happy,” he says.

With the combination of three brothers, all experts in different areas; from business planning, forecasting and analysis for assessment of revenue potential, to overseeing industrial and institutional marketing operations, developing strong relationships with supply chain partners, risk management and liaising with key government and private authorities for securing seamless business, they know the ins and outs of their business at the tip of their fingers.

The brothers say that in five years’ time they would like to still be doing what they’re doing now, with continued development of investing in SKUs for local and international marketplaces.

The real goal for us is to keep providing our customers with solutions; so, when customers tell us that we’ve made a difference, that’s more rewarding than anything we could ever personally achieve.”

“2022 and beyond is an exciting time at IPL Retail Group and we are looking forward as to how we can continue to develop our brands, teams, and innovation. Australia’s retail industry is one of the key contributors to the country’s economy and has been on a continuous growth trajectory since 2004. Online retailing is one of the faster-growing channels of distribution in the country, owing to high urbanisation rate and the growing e-commerce shoppers in Australia.

“For us, it’s not so much about what we want, it’s about what we can help our customers achieve. As cliché as that may sound, that’s truly the most rewarding part of our business.

“The real goal for us is to keep providing our customers with solutions; so, when customers tell us that we’ve made a difference, that’s more rewarding than anything we could ever personally achieve.” C&I

Gagan describes his life as “a beautiful juggling act”. With one beautiful child at home, he says his home life revolves around Lion and Peppa Pig, and maybe a chilled glass of beer at the end of the day.

“My family certainly keeps me busy outside of work, but I love every minute of it.”

The Sawhney family owns several businesses across several industries from service stations to real estate. But the brothers’ biggest venture of all is the IPL Retail Group, which they describe as “a giant in the field of wholesale”.

IPL does wholesale distribution to petrol stations, convenience stores, post offices, tobacco shops, and major retail stores around Australia. They offer hundreds of items from categories including

L-R: Garry, Robby and Gagan Sawhney June/July 2022 | C&I | www.c-store.com.au

7

THE Venue C&I EXPO 2023 WILL BE STAGED at the world class International Convention Centre in Sydney. Perched on the edge of sparkling Darling Harbour, the ICC offers a CBD location with accommodation for all budgets, and proximity to many convenient transport services.

Following the demonstrated success of our recent Melbourne expo after a three-year hiatus, we look forward to welcoming exhibitors and visitors back to beautiful Sydney for an even bigger show next year.

To book your stand or request an exhibitor prospectus for C&I Expo 2023, email Safa de Valois safa@c-store.com.au or call +61 (0)405 517 115.

“It has been good to meet a bunch of new potential customers, including multi-site operators in Victoria, New South Wales, and Queensland. It is great that stores are looking for new buying options, such as ranging toys or our range of mobile phone accessories for example, rather than relying on existing suppliers as they are looking for a point of difference.” - Tal Avraham, Smooth Wholesales

"At this stage, the response so far at this year’s C&I Expo has been far better than we have ever had before. The amount of people that have shown interest and we are not talking about the normal one or two site owners.

Yesterday we had more than 12 enquiries and this morning on the second day we have already had six - so I would have to say that this year’s Expo has been the most successful I have ever been to. If you want to kick-start your business, this is the place where you want to come.”

Vern Brickman Adverto & PumpTV Global

Enquire Now for Sydney Spring 2023

1300 083 022 exhibition@c-store.com.au

- Trevor Hansen, Signature Desserts

“This show has been quality over quantity and having really good in-depth conversations with great retailers. I feel like I have done a dozen mini-range reviews here on the floor of the exhibition - it saves everyone’s time, and I can get cans in hands on the spot. We have seen multi-site operators from the convenience banners - one has 600 stores up the Eastern seaboard. It is a great opportunity to get a lot of work done and see a lot of people all at once. The buyers are inquisitive and looking for new products and inspiration.”

C&I Expo 2023 ICC SYDNEY

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- Murray Raeburn, Calm & Stormy

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OPERABLE WALL 5 - 6

“Today we have been run off our feet with quality enquiries with a lot of interest from our target market. This has been due to an excellent show combined with excellent advertising in C&I as we have relaunched our product with new branding that is more suitable to our target market.

We have seen multi-site operators, service stations, groups who own 300-400 stores as well as food service buyers.

All I have to do is to transfer them from enquiries to sales and I’ll be a happy chappy.”

1 3

EVENT NAME:

EVENT DATE:

DRAWING NO:

C&I 2023 -

28th & 29th March 2023 -

DRAWING DATE:

CHECKED BY:

EVENT LOCATION:

ORGANISER:

Hall 5 ICC, Sydney

Interpoint Event -

SCALE:

APPROVED BY:

C&I 2023

18/3/2022

NO SCALE

DRAWN BY:

Rob J -

SYSTEM:

CARPET:

PANELS:

-Octanorm

LIGHTS:

FASCIA:

POWER:

-White

-Red /White text

-

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PO BOX 801 FRESHWATER Ph. (02) 9982 5511 sales@exhibitsy www.exhibitsys

candiexpo.com.au/2023-expo

C COPYRIGHT EXHIB

STORE REVIEW

IT’S ALL ABOUT THE CUSTOMER Patrick Pethick, the owner and operator of Puma Coolalinga in the Northern Territory, says the key to running a successful site all comes down to a high level of customer service.

P

uma Coolalinga is about half an hour outside of Darwin in the Northern Territory, positioned straight down the Stuart Highway towards Katherine, and servicing quite a large rural area.

We always try to go over and above the level of service that they would be expecting.”

– Patrick Pethick

For the last three years it has been owned and operated by Patrick Pethick, who has been in and around the convenience industry since leaving school at the age of 17 and taking on a traineeship through Darwin University.

“I’ve been able to build a wealth of knowledge in terms of running a successful retail platform as well as knowledge from the sales side of the business. It’s been a huge benefit having that sales background when it comes to talking terms with the reps, I can definitely see it from both sides, and I understand what it is they’re looking for.”

“I completed a certificate three in retail operations and then continued working for a local company and worked my way up to a position as Site Manager at the age of just 21,” says Pethick.

During the height of the pandemic, supply issues were a concern for Pethick and the team, with lead times for supplies coming out of the south, including some general merchandise and car parts, blowing out to up to three weeks, rather than one week, which is the norm.

“From there, I decided that I wanted to get into sales, so I worked for some big companies like Parmalat and Coca-Cola as a sales rep and ultimately up to an account management role.

Through that account management position, I was managing a large group of service stations.

“We were lucky to be able to call on some local suppliers and do what we could to plug those gaps and keep the shop nice and full, so it wasn’t too bad really,” he says.

“An opportunity ultimately arose for me to buy in, and I thought it would be great to have my own business, so I settled on three sites and ran those as a franchise for Puma Energy. About a year later, they offered me a further four stores, so I ended up running seven stores for about six years.

“After that time, Puma Energy decided to take some of the stores back, which presented me with an opportunity to look at getting 10

into a leasehold, so we bought in at Puma Coolalinga, and this is where I’ve been for the last three years.

June/July 2022 | C&I | www.c-store.com.au

Nearby to Puma Coolalinga are four other service stations within about a 500m radius, so Pethick says that there is a fair bit of local competition and that they are all nationals.

When the pandemic hit, Pethick took a step back to think about how his site could remain competitive against these big company-run national stores surrounding him. He decided to take to social media and have a big community push, encouraging people to support and buy local.

STORE REVIEW “We are all local, we’re a local business, so we really pushed that.

Then, we also have a huge emphasis on the way we serve our customers. For example, if they’re buying a gas bottle, we go out to the forecourt and we lift it and get it to the car for them.

We always try to go over and above the level of service that they would be expecting,” he says.

“It’s just been a real emphasis on creating relationships with our customers and just trying to get them back in the door.”

Pethick says that they have also been pushing hard to open up their product range and to improve their in-store offers.

“We’ve got a reasonable footprint compared to some of the others, which are mainly just fuel, so we saw an opportunity to grow our range across most of our categories as a point of difference.

“We’ve improved our fresh food as well as our hot food offer, as well as sandwiches and other things. We have really pushed hard to have a good quality offer and that has been the big thing, the difference between the others,” he says.

Within the store, Pethick has added a few new categories that he says have performed surprisingly well for them, including firewood.

“Being in Darwin and particularly in a rural area, there are trees everywhere and so much firewood around on peoples’ properties, but that’s been a successful add-on for us. Also, things like bulk dog food have been doing well – so it’s been a real mix of categories that have done it for us lately.”

Pethick says that when he took over Puma Coolalinga, it had a limited retail offering and the store layout needed improving.

“They did some fried food and sandwiches, but the sandwiches were hiding over in the corner. When the pandemic hit, the government threw out some grants, so we took full advantage of that and invested in some new equipment in both hot and cold.

We’ve rebranded and been able to significantly improve and grow our whole offer.

“We’ve gone from selling maybe 50-60 sandwiches per week to now selling up to around 250-300. So, we’ve improved it significantly and it’s all made fresh in-store daily.”

Around the country fuel prices are rising, which has put a strain on businesses. But once again, Pethick says the key to remaining competitive is all around good customer service and being able to put a smile on a customer’s face and go above and beyond their expectations.

It just goes back to those core basics; customer service is key, how does the shop look? Is it clean?

Is it five-star? Have you got a good offer? Focusing on those core basics in really all we can do.”

– Patrick Pethick

“It just goes back to those core basics; customer service is key, how does the shop look? Is it clean? Is it five-star? Have you got a good offer? Focusing on those core basics is really all we can do.

“I always tell my team; we just want our customers to always want to come back. That should be our main point of difference among our competitors, that the customer walks away saying, ‘God, that operator was friendly’, or ‘they didn’t have to do that, but they did it for me anyway’. You know that they will come back as a result of that and they will tell their friends and family about their experience as a result of that good customer service.” C&I

L-R: Owen Colbran (site manager) and Patrick Pethick

June/July 2022 | C&I | www.c-store.com.au

11

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CONVENIENCE RETAIL SALES HIT

$9.4 BILLION IN VALUE Theo Foukkare, CEO, Australian Association of Convenience Stores, shares insights from the 2021 AACS State of the Industry Report, prepared by CMA.

14

June/July 2022 | C&I | www.c-store.com.au

Convenience in-store merchandise sales growth

$9.4b Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements

Ongoing Impacts of COVID-19

Foodservice Lockdowns continues to New South Wales and shine, being the Victoria especially, driving softerfastest result in Q3 and Q4 growing Staffing category at +12.3 Continual challenges resulting per centhours andand in less operational even store closures generating almost Supply Chain $1bn in sales.”

Significant Out of Stock – Theo Foukkare issues especially on Imported products an ongoing issue

Global Oil Price Considerably higher cost base leading to higher pump prices versus year ago

W

e startedConvenience 2021 with in-store confidence merchandise that after lockdownssales andgrowth the impact COVID-19 and bushfires had on 2020, that we were back on track after a strong result in the back half Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements of the year. We started the year in the same way we finished 2020, with strong growth.

Ongoing Impacts of Unfortunately, we allCOVID-19 lived through another year of disruptions due to COVID-19 and Lockdowns despite a strong first half, the results were New South Wales and impacted by a weaker backespecially, half driven Victoria driving primarily by Tobacco ending yearand inQ4 softer resultthe in Q3 negative growth.

$9.4b

Staffing Continual challenges resulting Victoria became the most down city and in in lesslocked operational hours the world and New South Wales had its longest even store closures

lockdown period of the pandemic, which saw Supply Chain that state record negative growth for the year.

Significant Out of Stock issues especially on Imported After a strong start ofproducts +7.9 perancent in the ongoing issue

first half of the year, the channel dipped in Global Oil Price the second half to record a growth rate of two Considerably higher cost base per cent for the full year.

It was expected leading to higher pumpto prices be tough to replicateversus the growth achieved in year ago the second half of 2020 as the implications of lockdowns were felt hard.

Food and Beverage ended the year with growth of nine per cent delivering an extra $380m in sales, while Non-Food declined four per cent or -$198m led by Tobacco, which dropped – to $139m.

Key Industry Changes

Foodservice continues to Ampol shine, being the out per the Ampol logo fastest growing category atRolls +12.3 cent and to over 600 sites in 2021 generating almost $1bn in sales, while Packaged Beverages delivered the most dollar growth 7 Eleven Announces a partnership +$223m in 2021.

with Virgin to earn Velocity Points on purchases

– Key Industry Changes Ampol Rolls out the Ampol logo to over 600 sites in 2021 7 Eleven Announces a partnership with Virgin to earn Velocity Points on purchases Chevron Announces that from January 1st 2022 will re brand to Caltex BP Announces jointly with David Jones they have ended the partnership with all David Jones branding to come off stores

Chevron Announces that from January 1st 2022 will re brand to Caltex

Woolworths/PFD BP ACCC announces it will not oppose the Announces jointly with purchase of 65% of PFD DavidFood JonesServices they have

ended the partnership with

all David Jones branding OTR to come off stores Expand outside of South Australia with stores in Regional Victoria

Beverages Asahi Beverages and Coca-Cola Europacific Partners announce a joint venture to build and operate a new PET recycling facility Mars Wrigley Announces that it will transition to 100% renewable electricity to offset power at it’s six factories and two offices in Australia

Store growth continued adding 61 stores for the year to finish at 7,078 stores up +0.9 per cent. This was mainly driven by independent retailers, which grew at 2.2 per cent while major retailers declined -0.4 per cent.

Our ‘3 Pillars’ remain extremely relevant for our industry and they are:

So, while the back half relevant performance was extremely impacted by lockdowns and forCOVID-19 our industry border restrictions, up it was a positive and theyallare: year, with some outstanding category results.

– Advocacy – Connection – Knowledge

Advocacy MAJOR–CATEGORY SHIFTS: THE WINNERS

Convenience in-store merchandise sales growth

Our ‘3 Pillars’ remain

– Connection The Foodservice category within convenience continues to grow and was the fastest growing – Knowledge category in 2021. All sub-categories were in growth, yet the largest growth came from Take Home Food, which increased +21.9 per cent Convenience in-storein 2020. This after a +29.1 per cent increase merchandise sales growth now takes it to the second largest category behind Food Savouries.

2.0%

2.0% Food & Beverage growth

9.0% Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements

Sandwiches and Wraps bounced back to strong growth of Food +17.1&per cent in 2021 after a softer Beverage year in 2020.

The mature category of Food growth Savouries maintained consistent growth slightly up on 2020 growth rate.

9.0%

PackagedSource: Beverages had a strong yearEdge, with AACS Retailer Submissions, IRI Market ASX Announcements the category breaking through $2bn in value for the first time. Delivering an extra $223m in sales with all categories outside of Tea Drinks contributing to growth. Energy Drinks delivered the highest value growth contribution Woolworths/PFD delivering more than 30not peroppose cent ofthe total ACCC announces it will category sales.

TheofPackaged purchase of 65% PFD FoodBeverages Services category also became the first category to deliver $1bn OTR inExpand delivered margin with Australia margin percentage up outside of South with slightly 45.9 perVictoria cent overall. stores to in Regional Beverages

Other categories that delivered strong growth Asahi Beverages and Coca-Cola inEuropacific 2021 included Hotannounce Dispensed Beverages Partners a joint upventure more to than seven per centa new as consumers build and operate PET started to move recycling facility around with fewer restrictions combined with continual investment into Mars Wrigley this category. Grocery delivered good growth Announces that it will transition to 100% ofrenewable seven perelectricity cent on to theoffset backpower of 17.9 per at it’s cent growth in 2020, demonstrating six factories and two offices in Australiathat some of the traction achieved through 2020 has translated into a regular purchase.

Confectionery and Snackfoods also delivered positive growth.

MAJOR CATEGORY SHIFTS: THE LOSERS The single biggest negative in 2021 was in the Tobacco category, declining by $139m.

This decline was heavily weighted into the last quarter of the year where there was no government-imposed increase of 12.5 per

Convenience in-store merchandise sales growth

$9.4b Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements

Ongoing Impacts of COVID-19 Lockdowns New South Wales and Victoria especially, driving softer result in Q3 and Q4 Staffing Continual challenges resulting in less operational hours and even store closures Supply Chain Significant Out of Stock issues especially on Imported products an ongoing issue Global Oil Price Considerably higher cost base leading to higher pump prices versus year ago

June/July 2022 | C&I | www.c-store.com.au

15

Performance

Store Numbers

22.36b litres

0.9%

4% +860m

Source: AACS Retailer Submissions, IRI Market Edge, Company Websites

Performance

Sales Performance

22.36b litres 4% +860m

2020 Growth -14% -3.5b Value

14.8cpl $33.0b Source: ACCC Report on Australian Petroleum market - December 2020

What Makes Up The Retail Price Of Petrol

Breakdown of the average petrol price in the December quarter across the five largest cities

PETROL 162.8 cpl %

cpl

15

23.8

36

58.1

50

Dollar Sales

Sales Performance

7,078

GIRDS

Performance

Performance

80.9

International cost of refined petrol (Mogas 95) Taxes (excise and GST) Other costs and margins (wholesale and retail) Source: ACCC Report on the Australian Petroleum Market (2021) Note: Percentages in the chart do not total 100% due to rounding

2020 Growth Performance Performance -14% -3.5b cent like there has been for a number of years.

Dollar SalesofStore Additionally, illicitNumbers tobacco is now GIRDS the saleValue claimed to account for up to one in six packets sold in Australia, to add more cplwhich continues 2.0% 0.9% pressure to legitimate retailers. Further adding Source: ACCC Report on Australian Petroleum market +5.1% 2020 is the - December 2020 Source: AACS Retailer Submissions, IRI Market to pressure on thisincategory illegal saleEdge, Company Websites of nicotine containing vapes by illegitimate Value Increase What$Makes Up The Retail retailersPrice as consumers Of Petrol are looking for a Breakdown of the average transition out of smoking. petrol+$444m price in the December in 2020 quarter across the five Other categories that suffered predominantly largest cities Dollar Sales driven by changes in consumer behaviour as (Excluding Tobacco) a result of COVID lockdowns and work from PETROL home patterns were Communications, Car Accessories and Travel Tickets, all experiencing 5.8% double digit declines.

Wecpl expect that these 162.8 +2.2% in 2020 categories will rebound in 2022 as we emerge %Transaction cpl Value into the new normal.

Average

$9.402b 7,078 14.8 $33.0b +$182m $5.796b

$10.55 15

23.8

Fuel volumes continue to build, up four per cent, however0.1% this significantly below the 36is still58.1 channel volumes on 2019.

$9.402b 2.0%

+5.1% in 2020 $this Value is Increase the Performance case, we should

expect a change in shopper behaviour, which may impact foot Sales Performance traffic, particularly for Fuel. +$444m in 2020

+$182m 22.36b litres INDUSTRY 4% +860m

Dollar Sales (Excluding Tobacco)increasingly It is becoming

harder to predict 2020 Growth and forecast when and if everything will go -14% -3.5b back to what we knew as normal. There is GIRDS Value no5.8% doubt that the ever presence of COVID +2.2% in 2020 will have an impact during 2022 as we are currently seeing. The cplcurrent war in Ukraine Average Transaction Value is causingSource: higher fuel prices while ACCC Report on Australian Petroleum marketlabour - December 2020 shortages and general inflation, including the cost of doing business will beRetail impacted. We Makes Up The 0.1% What Pricesupply Of Petrol are still seeing chain issues with no end Breakdown of the in sight,Merchandise especially with theaverage current COVID Average petrol price in the December Transactions per day outbreak inquarter China.

What certain is that across theisfive 2022 won’tlargest be ascities we knew it in 2019 and will most likely need to be a reset of normal.

$5.796b

14.8

$33.0b

$10.55 464

0.8%

PETROL

FUTURE FUELS

Margin

The question is when will this start to impact Average Merchandise 162.8 cplcent of all cars the channel? In 2021, two per Transactions per day 50 80.9 WHAT OF 2021? sold in Australia were EVs, so at this stage 1.0% % cpl With vaccination rates improving through the the impact is minimal.

Globally the number 32.9% in 2020 cost of refined petrol (Mogas 95) year, theInternational expectation was that we would get was 10 per cent led 15

by China and Europe, 23.8 0.8% Taxes (excise and GST) Other costs and margins (wholesale and retail) back to some normality, however this took most although the USA picked up pace in the last Margin 58.1 may start to of theSoyear toReport happen.

This certainly impacted quarter. The current36 fuel pricing urce: ACCC on the Australian Petroleum Market (2021) Source: AACS Retailer Submissions, IRI Market Edge, Note: Percentages in the chart do not total 100% due the overall result with NSW and Victoria both ASX change people’s thoughts on EVs; however, Announcements to rounding experiencing long lockdowns. the global shortage of more than likely 50cars is80.9 1.0% going to hinder the growth as it is expected to 32.9% in 2020 Working from home continues to be last most of the year. We are still seeing limited International cost of refined petrol (Mogas 95) a common feature of the workplace. infrastructure of government support Taxesand (exciselack and GST) Other costs and margins (wholesale and retail) Expectations are that this will become more for EVs, although while they are backing urce: ACCC Report on the Australian Petroleum of a hybrid situation where there will be a hydrogenSo in Australia, globally Fuel Cell EVs Market (2021) Source: AACS Retailer Submissions, IRI Market Edge, Note: Percentages in the chart do not total 100% due ASX Announcements mix of at home and in office workdays. If are way behind to rounding in terms of sales of Battery

16 June/July 2022 | C&I | www.c-store.com.au

464

33.9%

33.9%

Performance

Dollar Sales

$9.402b 2.0%

+5.1% in 2020 $ Value Increase

+$182m +$444m in 2020 Dollar Sales (Excluding Tobacco)

$5.796b 5.8%

+2.2% in 2020 Average Transaction Value

$10.55 0.1%

Average Merchandise Transactions per day

464

0.8%

Margin

33.9% 1.0%

32.9% in 2020

Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements

Retail Segment Growth Retail Segment Growth

Total Retail Total Retail

Convenience Convenience

4.8% 4.8%

2.0% 2.0%

Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements, ABS

Food Retailing Food Retailing

1.1% 1.1%

Cafe, Restuarants Cafe, Restuarants & Catering & Catering

Online Online

27.0% 27.0%

5.3% 5.3%

The sale of illicit tobacco is now claimed to account for up to one in six packets sold in Australia, which continues to add more pressure to legitimate retailers.”

– Theo Foukkare

Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements, ABS

Food & Beverage Food $& Sales Beverage 2021 2021 $ Sales

Fast facts:

Non Food Non Food 2021 $ Sales 2021 $ Sales

$4.599b $4.599b

$4.803b $4.803b

9.0% +380m 9.0% +380m

• 2021 like 2020 had a tale of two halves although this time the first half of the year had strong growth while the second half declined, driven by the Tobacco category. The growth rate of two per cent was below the ABS data which showed CPI was up 3.5 per cent in 2021.

4.0% -$198m 4.0% -$198m

2020 +4.5% +$181m 2020 +4.5% +$181m

Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements

Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements

Trend Chart Trend Chart

2020 +5.6% +$263m 2020 +5.6% +$263m

• Store numbers grew +0.9 per cent adding 61 stores throughout the year.

Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements

Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements

Food & Beverage based research Food & Beverage

Non Food project ever Non Food

Channel Average conducted on Channel Average

10 EVs. The reality is it is coming, and we need 10 +9.0% to8 prepare for it for the future and migrate into this topic by a retailer organisation. The +9.0% 8 strong Roadside Retailers. purpose is to understand the impact on users +6.0% +5.6% 6 that this regulatory model has had and if it +6.0% +5.6% 6 +5.1% 4 TOBACCO AND E-CIGARETTES has encouraged or prohibited those who are +5.1% 4 +4.5% Tobacco remains an important category to looking to reduce their smoking of cigarettes. +2.4% +2.5% 2 Retail +2.0% Segment Growth +4.5% +2.4% in the convenience channel. The decline +2.5% 2 +2.1% +2.0% +1.0% +1.9% 0 sales coupled with the removal of the 12.5 +2.1% AACS continues to engage both Federal +1.0% +1.9% 0 -0.1% per cent excise increases has meant that and State Governments on the increasing -2 -1.0% -0.1% the prevalence of the illicit tobacco market and -2 value of the category has declined. This -1.0% Cafe, Restuarants -4.0% is-4 compounded further with the share of the impact to the convenience channel.

We & Catering Total Retail Convenience Food Retailing Online -4 -4.0% 2017 2018 2019 2020 2021 illicit trade estimated at 20 per cent and have been at the forefront of linking the need 2017 2018 2019 2020 2021 Source: explosion AACS Retailer Submissions, IRI Market Edge, ASX Announcements the of vapes containing nicotine for greater enforcement from authorities at Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements becoming widely available. This is through state level and introducing more streamlined Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements, ABS the black market, social media, overseas processes and regulatory frameworks to websites online and by opportunistic enable this to occur. illegitimate businesses throughout Australia.

Food & Beverage Non Food Working in collaboration with the Department 2021 $ Sales 2021 $ Sales AACS continues to advocate for a regulated of Home Affairs, State Health Departments vape containing nicotine consumer model and State Enforcement Authorities has that would be more workable than the current seen significant progress made in key states TGA prescription-based system operating and traction made at federal level for the since October 2021. AACS is currently introduction of a National Illicit Trade Strategy 2020 +4.5% +$181m 2020 +5.6% +$263m undertaking Australia’s largest consumerto be implemented.

4.8%

2.0%

1.1%

$4.599b

27.0%

• Overall margin improved by a full one per cent to 33.9 per cent after declining 0.6 per cent in 2020. This was driven by the improvement in both sales performance and slight margin improvement in both Packaged Beverages and Foodservice.

•T he split of business between Food and Beverage and Non-Food has closed to only a two-point difference compared to an 11-point gap five years ago.

5.3%

$4.803b

9.0% +380m

4.0% -$198m

Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements

Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements

Trend Chart Food & Beverage

10

Non Food

+9.0%

8

+6.0%

6

+5.6% +5.1%

4 2 0

Channel Average

+2.5% +1.0%

+4.5%

+2.4% +1.9%

+2.0% +2.1%

-0.1% -2

-1.0% -4.0%

-4

2017

2018

2019

2020

2021

Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements

June/July 2022 | C&I | www.c-store.com.au

17

AACS will continue to support the industry and will strive to level the playing field on tobacco, e-cigarettes, and alcohol.”

Table of value of growth +$223m

+$108m

– Theo Foukkare

+$23m

+$22m

+$17m -$6m

-$19m

-$22m

-$31m

PACKAGED ALCOHOL The opportunity for the convenience channel to enter the competitive landscape of selling packaged alcohol is significant, estimated at close to $1bn or 50 per cent of the value of Beverages to the channel. AACS has been active and progressive in key states, engaging with government stakeholders, regulators, and potential opponents, to position our play for this new category entrant, in a responsible and methodical way.

COVID-19 has seen an emergence of packaged alcohol becoming more accessible through online sales, increasing more than 20 per cent. The disruption to the category is a result of deregulation of off-premise alcohol licenses in some states, allowing take away and home delivery from the local pub or restaurant. This relaxation of the regulation seems set to remain in the post COVID-19 era. Major alcohol retailers are making purchasing more convenient for the shopper than ever before, accelerating this category growth. This is through click and collect, online ordering, contactless shop to car boot services and guaranteed home delivery timing (45 minutes or your next order is free). These have all allowed AACS to leverage this disruption to have meaningful, relevant, and constructive conversations with stakeholders, while making significant progress.

WHAT WILL 2022 BRING? The back half of 2021 was tough, and we still have some of the issues that made it that way at the start of 2022. The issues around supply chain, labour force shortages, fuel prices and inflation are affecting industry more than expected and are likely to remain for the balance of 2022.

The challenges around the migration away from cigarettes into vaping will continue to impact our largest category, while strong growth in beverages and foodservice will likely continue as we see more stores improving offers. We know that as a channel we are certainly preparing for the changes that will impact the channel over the next 10 years with fuelling habits, so we can expect that stores will continue to focus on being better retailers.

This means investing in stores to bring them to a level that will engage shoppers on a more frequent basis and understanding localised trends.

AACS will continue to support the industry and will strive to level the playing field on tobacco, e-cigarettes, and alcohol.

18 June/July 2022 | C&I | www.c-store.com.au

-$139m Packaged Beverages

Foodservice Confectionery

Dispensed Hot Beverages

Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements

Grocery

Printed Materials

Car Accessories

Travel Tickets

Communications

Tobacco

www.aacs.og.au

2022 LEADERS FORUM

2022 INDUSTRY

LEADERS FORUM From suppliers, wholesalers, and retail groups to industry associations, C&I has spoken with leaders from right across the convenience and roadside retail industry.

Brands

20 June/July 2022 | C&I | www.c-store.com.au

2022 LEADERS FORUM

Derryk Kane, National Account Manager P&C Sanitarium

it’s made, how far it’s travelled and the packaging it uses.

Suppliers and retailers are driving this trend too, and I’m excited to see caring for people and preserving our world being embedded in the way business is done.

Do you have any upcoming NPD, marketing plans or promotions that you’d like to highlight?

UP&GO™ is the market leader in liquid nutrition, and it’s our priority focus for the petrol and convenience channel where it meets the inherent need of customers on the go. We’ll be focusing on communicating how much nutrition we fit into an UP&GO, which is a strong point of difference in the increasingly competitive category, despite the proliferation of protein claims in beverages. We’re also exploring some exciting new revenue streams that currently represent unmet consumer needs in the channel.

What have been the highlights for Sanitarium over the past 12 months?

Given the challenges we have all faced over the past 12 months, the way our Sanitarium team has come together to overcome these has been an incredible highlight. Our people have demonstrated resilience dealing with the unknown and overcoming adversity. It’s a credit to the purpose and passion they bring to work that has ultimately enabled us to achieve great outcomes and placed the business in a strong position for the future.

What will be the focus for Sanitarium for the remainder of 2022?

Sanitarium’s success is built on its relationships – with staff, with consumers, with our trading partners and with the communities we serve and operate in. It’s these relationships that have gotten us through the tough times, and as we all look towards more change and more turbulence in the future, our focus will be on continuing to invest in these relationships and create shared value for all.

How has Sanitarium addressed any new or emerging consumer trends?

The health and sustainability trends we’ve seen in recent years show no signs of slowing, and Sanitarium is well progressed in addressing them. Consumers are keen to understand what ingredients are used in products and how the product will benefit their health. They’re also becoming increasingly savvy about food sustainability, which is as much about the product they see on the shelf, as it is where

What is one challenge you’d like to see addressed within the convenience channel?

The opportunities I’d identify are ones that I can already see parts of the channel moving to capitalise on. The first is what I’d call ‘uber convenience’ which is how the channel wins the battle for convenience shoppers through frictionless product and service delivery, supported by technology. In the same way that fast food giants have leveraged deliverto-your-door, there is opportunity for P&C to do the same – or risk grocery or emerging businesses doing it better. The other opportunity is at the opposite end of the spectrum, the opportunity to become a destination consumers want to visit – a great place to shop because they get what they need, and they enjoy the experience. Ultimately both are about maintaining relevance for the channel and being agile enough to respond to consumer behaviours.

We’re also exploring some exciting new revenue streams that currently represent unmet consumer needs in the [P&C] channel.”

– Derryk Kane, National Account Manager, Petrol & Convenience, Sanitarium

What do you enjoy most about what you do?

My common theme is becoming apparent, but I’d have to say people. The people I work with, the people I meet, the customers and consumers we form relationships with.

Together the last few years have taught me that when faced with adversity it’s the people that will get you through it.

Is there anything else you’d like to add?

I’d just wish everyone all the best in the years to come.

Exciting times ahead with plenty of change that I’m sure is full of challenges but if the last two years have taught me anything it’s that we need to lean into these challenges and face them head on. ■ June/July 2022 | C&I | www.c-store.com.au

21

2022 LEADERS FORUM

Stephen Gartrell National Field Manager Pacific Optics

What do you enjoy most about what you do?

What were the highlights for Pacific Optics over the past 12 months?

Despite another challenging year due to the ongoing impacts of COVID-19, there have been many highlights for Pacific Optics over the past 12 months, as always, our people and customers have been at the helm. Our field team remained focused on maintaining and delivering a high level of service to our customers, despite the challenges of restrictions and lockdowns. Our account management team successfully re-signed long term agreements with key partners, our operations team opened our new state of the art sustainable focused operational warehouse in Yatala (5 Star Green Star certified rating) and our product team launched to market our WalknTalk ‘Fast Charge’ and ‘Magnetic Charge’ phone accessory range of products seeing alignment with the newest power-hungry devices in the market. We have also brought to life products from recycled materials, which is a step in the right direction for sustainability. Amongst all of this, we pivoted into additional products in our health range at speed delivering Rapid Antigen Test kits to support the needs of our customers and market demand.

What are your main priorities for the remainder of 2022?

Maintaining consistency across our business and core categories is key to ensuring our customers, and the consumers, have a positive experience with Pacific Optics and our brands. Continuing to engage our customers via in person meetings and networking activities to reinforce our commitment to delivering exceptional customer service will be a key priority in 2022. We are also focused on improving our overall business practices and communicating our strategies, plans and market insights to our customers with aim of mutual growth. We have listened to our customers and we’re intent on delivering these priorities as well as improving and growing our core brands WalknTalk, Fuse Audio and Aerial Sunglasses via adjustments based on research and insights sprinkled with strategic NPD. 22 June/July 2022 | C&I | www.c-store.com.au

I love listening, learning, and regularly interacting directly with our customers to support them to build their businesses in the general merchandise categories that we offer. Within our business, I pride myself on supporting our fantastically talented and experienced state and territory managers to build on our company’s success and deliver exceptional customer service. Our DNA is petrol and convenience and being part of this channel and watching both our company and customers grow together is very rewarding.

What is your company doing to meet changing customer demands?

We understand the Australian shopper is changing and we are evolving in line with advancements in digital adoption and a focus on social and environmental responsibility.

We aim to have something to cover the broad spectrum of the channel’s customers under a mantra, everyone is our customer, but are aware of the key driving male, Gen Y and Gen X that is most prevalent in our market. These consumers expect an experience where they can find what they need easily. Pacific Optics is working with our partners to drive in-store execution through improved planograms, focused on customer centricity in both offering and placement to reduce friction in the experience. We are focused on constant improvements in our social and environmental responsibilities. We have reviewed and improved our modern slavery policies and built-in continuous improvement programs around this. We are also exploring a range of sustainable packaging options, reducing production and secondary material waste, and reducing our footprint via product and process development around our goods.

What does your crystal ball say about the year ahead in convenience?

We are excited to see where the channel heads this year and are ready to go on the journey with our customers. There is some uncertainty in the world and economy that we all hear about, but we are intent on curating our scope of control to deliver great solutions for our customers. We are looking forward to delivering joint bricks and mortar cross digital experiences for our customers, seeing our environment sustainability programs grow and sharpen our in-store execution and mix to grow results for our trade partners. ■

Our DNA is petrol and convenience and being part of this channel and watching both our company and customers grow together is very rewarding.”

– Stephen Gartrell, National Field Manager, Pacific Optics

HIGH QUALITY INDEPENDENTLY TESTED DESIGNED FOR AUSTRALIAN CONDITIONS CONTACT OUR TEAM TODAY! orders@pacificoptics.com

www.pacificoptics.com

1300 AERIAL (1300 237 425)

2022 LEADERS FORUM

Michael Sainsbury National Impulse Operations Manager Tru Blu Beverages

What were the highlights for Tru Blu Beverages in 2021?

The highlight for Tru Blu in 2021 was despite the level of restrictions and limitations on peoples’ movement throughout the states, there was, however, a heightened degree of consumer demand that was buoyed by cash permeating throughout the economy. Another observation that was not expected, was that several suburb clusters performed much better than historical results and this trend was almost certainly a by-product of people working from home instead of more traditional office environments. While consumer intent was alive and well, the need to travel was reduced and the positive aspect was the increased emphasis placed on product development and many of these innovations were ready to hit the market for the commencement of 2022.

What will be the focus for Tru Blu Beverages for the remainder of 2022?

The focus of 2022 is taking advantage of the more favourable travel conditions throughout Australia and to resume efforts to advance core retail sectors such as foodservice, health, education, and petrol and convenience (P&C). While we have fared better than most, an unintended consequence of the last two years has been the profound and at times devasting effects on supply chains. The net result has been winners and losers and it has provided for a much more diverse scope of opportunity. Given Tru Blu places significant emphasis on the positives that can be achieved by having a field sales team, 24 June/July 2022 | C&I | www.c-store.com.au

we are able to realise the benefits in this area, when the wider commitment to a ‘face to face’ retail dynamic has become diluted over recent years.

How can P&C retailers best prepare themselves for the future?

The P&C channel leads the pack by some distance when it comes to increasingly understanding their customers, purchasing intent, and providing dynamic retail settings that deliver to and cater for their demands. The retail intelligence that the P&C operators have been able to accumulate is so much more than statistics and trends; it has, like never before, delved into consumer behaviour to a much more enlightened degree.

What is one challenge you’d like to see addressed within the convenience channel?

Historically, the retail status quo has always prevailed, but innovations and enhancements to retail settings are increasingly being received on their commercial merits and this is something that needs to continue.

What do you enjoy most about what you do?

In terms of sales, the impulse and convenience channels offer a textbook sales environment that can be directly influenced by good planning, persistence and ultimately a great brand portfolio. Tru Blu is a company that fosters and rewards a high performing sales team and to see my teams’ efforts yield results and their hard work come to fruition, is very rewarding and always great to be a part of. ■

The P&C channel leads the pack by some distance when it comes to increasingly understanding their customers, purchasing intent, and providing dynamic retail settings.”

– Michael Sainsbury, National Impulse Operations Manager, Tru Blu Beverages

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For further information, please call Tru Blu Beverages on (02) 9912 6700, or visit trublubeverages.com.au

2022 LEADERS FORUM

Tal Avrahami Director

Smooth Wholesales What were the highlights for Smooth Wholesales in 2021?

During the turbulent times of pandemic lockdowns, Smooth Wholesales empowered petrol and convenience (P&C) operators to capitalise on general merchandise sales.

This enabled operators to source affordable and profitable products to meet consumer demands. Being a proudly Australian business, we were delighted to help retailers wherever we could without closing our doors for one single day during Covid.

What will be the focus for Smooth Wholesales for the remainder of 2022?

We hit the ground running at the start of the year, solidifying relationships with suppliers to offer our customers a more comprehensive core range including auto care accessories and over-the-counter pharmaceuticals. We will continue to bring our customers competitive pricing and endeavour to exceed their expectations as we look to keep growing our business.

How have you noticed the channel evolving and how can retailers best prepare themselves for the future?

A lot of people fixate on how electric vehicles will impact the P&C industry, however, for now, the one thing that interests me is how convenience stores can capitalise on their prime locations and cater to the growing demands of consumers. Consumer tastes evolve and companies need 26 June/July 2022 | C&I | www.c-store.com.au

to be agile in how they meet those needs. I think these stores have such great potential to offer their customers more than just chips and drinks. It’s time the industry shifts the age-old paradigm of ‘servos are expensive’ to ‘servos have great affordable products’.

What is one challenge you’d like to see addressed within the convenience channel?

Coming from a family that’s been in P&C for 40 or so years, the challenge I identified was accessing high quality and affordable stock that enables the business to generate more profits, not just make ends meet. It’s not going to be easy, but I want to demonstrate to P&C stores Australia-wide that to run successfully they need to buy smart and use every tool at their disposal to appeal to customers.

What do you enjoy most about what you do?

One of the most rewarding things when you work with independents and small businesses is seeing them succeed.

I love hearing from our customers that those products they didn’t ever imagine selling are one of their best sellers. It just reinforces our belief that sometimes you need to try new things, take small risks, and evolve. Being complacent won’t help you continually exceed your monthly goals.

Is there anything else you’d like to add?

If you’re reading this and something resonates with you, don’t hesitate, and get in touch with us. We’re about helping customers, not just making a sale. ■

One of the most rewarding things when you work with independents and small businesses is seeing them succeed.”

– Tal Avrahami, Director, Smooth Wholesales

2022 LEADERS FORUM

Jason Raz Director JCSM What do you enjoy about working in convenience?

Our biggest focus at JCSM is to ensure that we maintain the breadth of our offer, and continuity of supply, for our retail partners.”

– Jason Raz, Director, JCSM

I’ve been working in the convenience channel with JCSM for about seven years and enjoy working with likeminded people and family businesses that share a passion for delivering excellent customer service. I look at the changes we have seen in consumer demand over a relatively short period, and how fast the people in the convenience industry have adapted despite these challenges and see that the Australian petrol and convenience industry is complex, but very exciting to be a part of.

Highlight one company achievement you’re particularly proud of in the last 12 months.

Over the last 12 months, the JCSM team has worked hard to communicate the importance of a considered health and beauty offering in convenience. I am proud of these results and seeing our retailers challenge the status quo of what a convenience offer should look like. Retailers have been able to realise their goals of becoming a ‘destination station’ and pick up incremental sales with the less price conscious distressed consumer.

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What is your company doing to meet changing customer demands?

Perhaps more than ever before, our customers’ demands are related to supply challenges. Our biggest focus at JCSM is to ensure that we maintain the breadth of our offer, and continuity of supply, for our retail partners despite the external pressure on supply. We achieve this by providing alternative ranging solutions, delivering key insights, while ensuring margin accretion is at the forefront of any retail ranging recommendations.

What does your crystal ball say about the year ahead in convenience?

Consumers will further appreciate the importance of a broader P&C offer, including market leading health and beauty, and medicinal brands that were previously the domain of mainstream grocery and pharmacy. Channels such as quick commerce will continue to grow, challenging traditional bricks and mortar retailers to further adapt to change. Continued pressure on pricing and supply will be a challenge that we all will need to carefully navigate, with the aim to minimise the impact for both the retailer and consumer. ■

MARKET LEADING BRANDS

HIGHLY DISTRESSED/ IMPULSE CATEGORY

enquiries@jcsm.com.au

EXCELLENT PROFIT MARGINS 08 8331 7674

SEASONAL ACTIVATIONS jcsm.com.au

2022 LEADERS FORUM

Robynn Shave P&C National Account Manager SimConnect

What have been the biggest highlights for SimConnect over the past 12 months?

1.

2.

3.

4.

I am always passionate about growing retailers’ business, working with them to develop strategies to grow the telecommunications and tech category.

If they grow, we do too.”

– Robynn Shave, P&C National Account Manager, SimConnect

Creating a category approach at retail level for our core business. Telstra / Unlocked / Accessories.

Growing our share of the Telstra business during the pandemic.

Maintaining 100 per cent of our workforce regardless of extended lockdowns, ensuring our retailers continued to receive face to face service around the country.

Increasing Telstra and accessory sales ‘year on year’ by nine per cent.

3.

What does your crystal ball say about the year ahead in convenience?

1.

What will be your main priorities for the remainder of 2022?

2.

2.

3.

1.

3.

Continue to grow and educate customers on the benefits of promoting Telstra in their stores.

Utilise recently introduced data analytics and business intelligence tools to drive product placement, ensuring maximum sales and minimum outlay for our retailers.

Continue to focus on providing a total category approach for our retailers, again with the aim of driving sales across the whole category.

What do you enjoy most about what you do?

I am always passionate about growing retailers’ business, working with them to develop strategies to grow the telecommunications and tech category. If they grow, we do too.

What is your company doing to meet changing customer demands?

1.

2.

Creating specific display options for Telstra Prepaid, accessories, audio and gift cards, which assists growth in the stores by creating customer awareness.

Looking to stay ahead of the game. We understand markets are constantly evolving and demands as a result are constantly changing. Business development

30 June/July 2022 | C&I | www.c-store.com.au

is a key focus for us to ensure we continue to add new sales opportunities to our retailers.

Identifying sales trends and changes in demand to ensure we steer our significant field team in the right direction – time = money.

While there was a significant shift from bricks and mortar to online trade during the pandemic, we have recently seen a shift back to bricks and mortar with a huge increase in foot traffic.

We have also identified a reasonable shift towards higher end prepaid mobile devices in recent times, driving an increase in revenue for our retailers, and we expect this trend to continue.

There is also a switch from consumers purchasing the older style format (candy-bar, flip phone) handsets to smartphones driven by the need to access QR code scanning functionality.

Is there anything else you’d like to add?

We are immensely proud of the fact that we continue to provide face to face service to our retailers all over the country through a dedicated team of 21 sales representatives. This service is rare these days and we understand the value it provides to our retailers.

Our team provides face to face support in training, stock management, merchandising and display building. We continue to diversify and expand our product range and very much appreciate the support and loyalty of our strong retail base.

The work we do together across 12,000 retailers generates around 25 per cent of Telstra’s total prepaid customer acquisition, a number we are also very proud of and again, appreciate your support in driving this contribution to Telstra’s business. ■

2022 LEADERS FORUM

Louis Cannatelli, Convenience Sales Manager, GC Brands

Brands

What do you enjoy about working in convenience?

What is your company doing to meet changing customer demands?

Highlight one company achievement you’re particularly proud of in the last 12 months.

What does your crystal ball say about the year ahead in convenience?

The retailers in the convenience channel make working in this industry so rewarding as the majority are independently owned and operated. The owners and managers are incredibly passionate and tend to stay in the industry for a long time.

As a key supplier of confectionery and grocery brands, our strength lies in the relationships our people hold across the industry, so the convenience channel is one where we can really work with retailers to deliver unique solutions and great mutual outcomes.

GC Brands has enjoyed strong growth over the past 12 to 24 months in the face of enormous challenges, particularly international logistics and store closures. Working closely with our global brand partners has enabled us to work through DIFOT (delivery in full on time) challenges and emerge with a stronger supply chain on all brands. We are now very excited to accelerate growth of brands we have acquired in the past two years including Nerds, Gobstopper, HI-CHEW, and NOMO.

As space in-store continues to get tighter and tighter, we are seeing ranges and planograms becoming increasingly generic with the choices offered to shoppers dwindling. GC Brands prides itself on its differentiated portfolio of brands, which is well suited to offer retailers best sellers as well as unique products that will delight their customers. Properties like Harry Potter’s licensed confectionery, HI-CHEW, Beanboozled, NOMO Vegan Chocolate and VGood are all fantastic ranges that offer innovative points of difference and complement the must stocks nicely.

We see a strong year ahead for the convenience channel.

Movement of people for work, travel and leisure is increasing by the day and this will see foot traffic return close to normal.

One of the challenges the convenience channel faces will be in carving out sufficient real estate to meet growing consumer demand for better for you options, despite the limited space typically available. We’re excited to see the role our new brand NOMO Free From and Vegan Chocolate can play in meeting customer demands.

Grocery Corporation is now GC Brands.

Delivering world leading brands from our home in Manly, Australia.

p: +61 2 4 8404 0240 e: enquiries@gcbrands.com.au a: 28/22 Darley Road, Manly NSW, 2095

gcbrands.com.au

2022 LEADERS FORUM

Theo Foukkare, CEO, Australian Association of Convenience Stores What is the immediate focus for AACS in 2022?

Our five major focus areas in 2022 are continuing the significant task of untangling the archaic state-based legislation, which excludes convenience retailers to sell packaged alcohol. Working with all levels of government to stamp out the illicit sale of tobacco and nicotine e-cigarettes, which continue to impact sales and customer traffic in our channel. Working with the new Federal Government to implement a regulated consumer model for nicotine vaping.

The rollout of our new training and workplace relations modules to assist our retail members. And ramping up our advocacy in health relevant to the potential impacts of a sugar tax or new restrictions on high fat salt and sugar products.

How do you envision the next six months for convenience?

There is no doubt that retailing in Australia for the balance of 2022 will be a tough trading period given the ongoing labour shortages, supply chain issues, inflation at record levels, wages pressure and obviously the high cost of fuel for both consumers and the entire ecosystem that supports the industry.

Even with these challenges, consumer confidence continues to rebound, interstate travel has recommenced,

overseas migration is underway albeit slowly and overall vehicle mobility is continuing to move positively in the right direction.

How do you see the role of roadside retailers evolving?

In terms of the retail offer, food for now and food for later will continue to cater for the time poor consumer and erode into QSR sales. Click and collect services will expand, and last mile delivery will evolve using autonomous or remotecontrolled ground and air vehicles directly into Australian households. Distribution hubs will be incorporated into strategically positioned locations and drive through will play a much larger role in serving customers than it does today.

From a forecourt perspective, space allocation for the types of energy will transition to offer EV charging as the infrastructure catches up over many years, however this will take 10-15 years. Mobility hubs will play a role for different types of transport providing consumers with access, and we will see a reconfiguration over time of forecourt design to cater for the abovementioned structural changes.

The future of our channel is shining brightly and change is the only path forward for convenience and roadside retailers to make their customer's lives easier.

Darren Park, CEO, UCB Stores What were the highlights for UCB in 2021?

It’s almost like 2020 and 2021 are lumped together – the many challenges of being open and safe for shoppers consumed us all. From an industry perspective, many in the communities we serve came to understand and value what convenience offers, that’s a highlight. Another key highlight is a personal one, where my UCB team were resilient and flexible in keeping up the levels of service our members expect from us. Our office in Sydney was in a locked down local government area (LGA) and my team responded by creating a new temporary UCB office in a vacant restaurant, in a different suburb, in a matter of days. That’s teamwork!

How have you noticed the convenience channel evolving?

Let me answer from an independent retail point of view.

Retail has dealt with more change in the last two years than in the previous two decades and as a side effect, we’ve all grown more resilient. Spending behaviours are shifting, and people are more willing than ever to buy from businesses that resonate with them because of location, ease of access, safety and solving more shopper missions than we might have previously. Shoppers are also returning to inperson shopping so businesses that know their customers, speak to them, and genuinely listen to them, will be best prepared. As a leading independent buying group, what makes us and our members strong is communication and 32 June/July 2022 | C&I | www.c-store.com.au

two-way interaction – we have all learned to communicate across various media, using a combination of print media, email, eDMs, SMS, MMS, social media and we are seeing these capabilities being used with growing effectiveness at store level too.

What will be the focus for UCB for the remainder of 2022?

As an industry we were exposed to a range of new shoppers and shopper missions over the past two years, our focus is on keeping as many of those as we reasonably can. Also, we must work closely with trade partners to manage price inflation, particularly the possible pricing differentials between customers in the same channel as well as cross channel competitiveness. This is a time for us as an industry to stick together and be strong. This is going to occupy a lot of my actions in 2022.

What do you enjoy most about what you do?

I have worked for nearly my whole career in convenience and petroleum, I’ve seen single site owners build family security or even become multi-site owners, I’ve seen Account Managers become Sales Directors and I think I’ve helped pioneer looking outwards as an industry, on what we can do to be better and what are the possible ways of achieving this. Our job is never done, but I am proud of the esteem that convenience as an industry is held in.

2022 LEADERS FORUM

George Tsapoutas, General Manager, The Distributors What were the highlights for The Distributors in 2021?

2021 for The Distributors was just as challenging as navigating 2020. Like the convenience industry, we needed to continue to manage COVID restrictions, lockdowns, border closures and all the while ensure the safety and wellbeing of all our staff and customers.

The highlight for me personally was just how well The Distributors members were able to do all of that and maintain a fantastic level of service to our national and local customer base.

What will be the focus for The Distributors for the remainder of 2022?

It will be more of the same from The Distributors, providing national coverage with localised service. We are coming off the back of being awarded a number of customer and industry supplier awards and we will continue to focus on improving our service levels to the industry. Having said that, the current manufacturer and supplier supply chain issues have put enormous pressure on supply for everyone.

How is the convenience channel evolving?

And how can retailers best prepare themselves for the future?

The investment that retailers are making in their networks to attract and retain shoppers over the past few years has brought energy and focus into the segment. As we move away from COVID lockdowns and consumers needing to shop local, the investments made in the sector will help retain and grow the number of consumers using their local convenience store.

What do you enjoy most about what you do?

Dealing with people and the complexity that is wholesale distribution. The Distributors operate across an industry that still values relationships and service, we have more than 40,000 customers nationally and represent over 200 suppliers with more than 6000 SKUs, and the team works hard to do that well. The Distributors are family-based wholesalers and pride themselves on their family-based values and service.

Being able to represent the group and work with them and the support office team is what I enjoy most.

I would like to just add a thank you to the convenience industry for its support of The Distributors and add that we look forward to continuing our relationship with this fastpaced and vibrant market sector.

Skye Jackson, General Manager Merchandise, Ampol What have been the biggest highlights for Ampol over the past 12 months?

The past 12 months have represented a significant period of change and growth for Ampol. We progressed the revitalisation of Ampol across our network and have rebranded more than 1,200 sites over the past 18 months.

The rebrand has provided the opportunity to refresh our shop formats, and earlier this year we launched our new format in partnership with Woolworths, MetroGo. Importantly, we released our future energy and decarbonisation strategies in May last year, which outlined our plans to decarbonise our operations and create new solutions for customers across electricity, hydrogen, biofuels, and carbon mitigation. In April, we launched our electric vehicle fast charging brand, AmpCharge, as well as our plans for the national roll out.

It was also exciting to see significant work delivered to improve our organisation culture, including some of our teams moving into a new head office in Alexandria and the launch of our refreshed recognition program, Ampol Achievers.

What will be your main priorities for the remainder of 2022?

Delivering the plan – we’ve set our objectives for the year and now we are all about execution. We are working to deliver an additional 50 Ampol Woolworths MetroGo stores this year, which is a lot of work across many areas of our business.

What is your company doing to meet changing customer demands?

Our recently introduced Ampol Woolworths MetroGo format is catering to the needs of our time-poor customers and providing a one-stop-shop for grocery essentials and food on-the-go. During the onset of COVID-19, our customers embraced the convenience of online delivery platforms such as Uber Eats. As we emerge from the pandemic, we’re seeing consistent and growing demand for this convenient solution, and we intend to further develop our e-commerce offer.

What does your crystal ball say about the year ahead in convenience?

I think we’re in for a strong year. Lockdowns have had a significant impact on our operations over the past two years, but (fingers crossed) they’re a thing of the past.

We are still feeling pressures, such as the decline in tobacco, but the industry is making good progress in pivoting their offers to close this gap through format and offer innovation.

What do you enjoy most about what you do?

I love leading a team to drive results, collaborating on strategy creation, and executing plans that deliver on our customers’ needs. I love how fast paced our industry is and I’m excited about the opportunities we have to transform our channel and define the future of roadside retailing.

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h t i w d a o hit the r

T H G I R the F O E P TY Y G R E N E Glycaemic Index (GI) value = 40*

2022 LEADERS FORUM

Lou Jardin, Managing Director, SPAR Australia What have been the biggest highlights for SPAR Australia over the past 12 months?

Seeing the SPAR business continue to grow post-COVID has been very pleasing. It clearly shows that the plan we have been working on for many years is really cutting through. Consumers are now seeing SPAR in a different light, which gives us confidence. SPAR winning the Canstar Convenience Retailer of the Year award was another highlight. SPAR won each of the following sub-categories making up the award: Overall Satisfaction, Value for Money, Customer Service, Variety of Products, and Layout of store.

Over the last 10 years SPAR has invested heavily in both the quality and expertise of our retailers. Added to this, there has been a significant investment into the look and feel of our stores, making each a significant contributor to the local communities that SPAR is represented in.

Further to the above, SPAR has developed an extensive range of products both corporate and propriety brands, that stand us apart from other convenience stores.

What are the biggest challenges facing the industry?

The supply chain issues and the resulting inflation following on from the shortages are issues most of us have never faced in our lifetime. The complications we all face are considerable and when added to the considerable delays

in imported product from overseas, and the bottleneck in the supply chain, we are in a perfect storm. However, SPAR is very proud of its record during this period as we haven’t missed a delivery. The only exception was when the highways were blocked due to the recent floods.

What does your crystal ball say about the year ahead in convenience?

Clearly it’s all about online, product development and use of electronic media, and the retailers that master these all at once will win through with the consumer. You add all of these to building environmentally efficient business practices, and that is going to separate the retailers in years to come.

Although the challenges are many, SPAR is very well placed to take advantage of the opportunities. I practically grew up in the industry, as my first job was manning the Coke fridge at the tender age of five. Growing up in the family business gave me some insights into working with family businesses and the difficulties they face daily. You add this to my 11 years as CEO of Metcash’s retail distribution, and I have gained a lot of insight into what’s important to independent retailers in Australia.

I’m now very fortunate that I’m in a very good position to make a difference to the independent family businesses that are part of the SPAR Group and the influence that has on the rest of the independent community. This is very rewarding and satisfying.

Steve Cardinale, Managing Director, New Sunrise What have been the biggest highlights for New Sunrise over the past 12 months?

We’ve been making a big impact in our local communities with the deployment of 400 automated external defibrillators (AED) across our retail network and our work with Heart of the Nation to build awareness of cardiac arrest. We have already made a difference with a life being saved within two weeks of an AED being installed in Mood Foods, Tasmania.

Another highlight is our people and the way we are fast to provide practical solutions to meet the changing needs of this dynamic market. We have had a very successful year on many levels – the results of this have been seen in our growth in store number to 1,100 sites, and our overall store sales increasing by 20 per cent (like for like). Lookout for the sunrise TV Campaign featuring Sunny the Kookaburra building awareness of independents.

We’ve also maintained our ranking in the CMA results where New Sunrise continues to hold its first place as an independent retailer and has moved up to third overall, knocking off one of the corporates. This is the first time a national independent retail network has broken into the top three.

What is New Sunrise doing to meet changing customer demands?

1. Giving shoppers more reasons to stop at New Sunrise stores by recalibration of our pricing and promotional mix on key categories.

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2. Working with our trade partners to reduce costs in the supply chain and store operations.

3. Adding e-commerce to our promotional mix with our new app Grabbit Local.

4. Being more visible with data, brand and promotions; building on the great work we have done in 2021.

5. Strengthening loyalty and being part of our customers’ daily routine.

What does your crystal ball say about the year ahead in convenience?

Speed has become the new buzzword in the industry as we move into this new age of ‘phigital’. The polarisation of retail offers from cheap/ transactional, and quality/experience will only become greater.

Supply will continue to be our biggest challenge, and this could be a problem for the independents, given the influence Coles and Woolworths have in Australia.

Rationalisation of store – this will probably slow down over the next few years with the increase of the above economic headwinds. We will see a move to more robotics front of house and back of house in QSR and restaurants, I can see this also happening in our roadhouses. What won’t change is that people will still be on the move and while they are moving they will need to eat, drink, and use bathrooms, and no amount of technology can replace the ‘now’ especially when it comes to a coffee.

2022 LEADERS FORUM

Angus McKay, CEO and Managing Director, 7-Eleven What have been the biggest highlights for 7-Eleven over the past 12 months?

About a year ago we become an agile empowered organisation. We implemented agile because we believed that our old organisational structure would not enable us to deliver on our 2030 ambition of a billion customer moments.

Where agile is up and flourishing, I can clearly see the capacity, the renewed energies, the vibrancy of the people within our organisation. While we’ve all had a steep learning curve, myself included, a highlight for me is seeing what the change in working method has enabled the team to achieve.

We’ve launched into three new regional markets, investing in providing jobs for regional communities. Our digital transformation has been brilliant. We have a market leading offer and a team that are learning to leverage not only the technology we have invested in but the insight we gain from the program.

Another highlight for me is our work to support our communities in what have been some really challenging times. Our teams worked tirelessly in the past year to provide access to essentials in local neighbourhoods wherever possible. Additionally, the teams have ensured that tonnes of food that would have gone to waste due to temporary store closures or supply chain disruptions.

What will be your priority for the remainder of 2022?

Our priority in 2022 is to stay laser focused on our customers and supporting our store teams through the implementation of a range of new offers and innovations.

Specifically, in the second half of 2022 we’ll be delivering a step change in our food offer, and significant new digital capability, which will make shopping with us more convenient.

We are also continuing to expand into new communities in regional areas. Our first stores in North Queensland open this year, and we’re continuing to grow in regional markets in Victoria, New South Wales, Queensland, and Western Australia.

What is your company doing to meet changing customer demands?

In addition to our work in food and digital, we are expanding our trial of micro market stores and continuing to work on the evolution of our layout and product range.

Essentially, our work on format is about having the right product range, where and when it’s convenient for our customers.

We’re trialling several formats, each one is slightly different, they’re geographically different, and what we’re trying to therefore learn is how that impacts the way customers play with us, what customers take out of each of those stores.

Eddy Nader, Managing Director, NPG Retail What have been the biggest highlights for NPG Retail over the last 12 months?

Winning the AACS Store of the Year for Urbanista Café and Convenience Colyton was massive and unexpected. The quality of the offering from the independents in Australia is truly phenomenal, particularly at APCO Café 24/7 Wangaratta, which were the equal Store of the Year winners with us. Even just to be mentioned in the same sentence as them, much less to share this award, left us humbled.

My son, Tadros Nader, had everything to do with the concept of this store so I’m super proud. People forget that he’s only 20 and doesn’t turn 21 until November, and during the pandemic we’ve been short staffed, and we’ve both been working 12-to-13-hour days almost seven days a week. Most 20-year-olds would just flip the bird and go hang with their mates, but he put in the hard yards. It’s been one hell of an induction for him.

Tell us about the offering at Colyton:

Tadros wanted to make the offer like a takeaway shop, where people can come in and get a hamburger and some fries, and basically the food that teenagers want – but it’s working. We’re also getting traction with tradies and people outside of that younger group. It’s a concept that’s been done in regional sites but not really in metro, and it’s really working for us, so we’re rolling this type of model out more widely.

What are the biggest challenges facing the industry?

Finding enough staff is a big problem for us. It’s a problem industry-wide – you advertise, and you don’t get any applicants, it’s tough. But we’ve now employed a few people who are in their 60s who are semi-retired and just want to work one or two days a week. We’re also getting a lot of mums, especially for afternoon, evening, early evening work and nightshift – even if they want to do one shift a week, we’re happy to accommodate. We’re taking juniors on as well and we have made a commitment to parents that they won’t work past 8.30pm, and we pay them more than McDonald’s so they’re happy with that.

What is NPG Retail doing to meet changing customer demands?

It’s not so much about adapting to changing customer demands but more of adapting to what our non-traditional competitors are doing. It’s kind of like how you can walk into Australia Post now and they have convenience items in there, like chocolate, ice cream, and drinks. Or you go into some cafes, and they are selling take away liquor. And then you’ve got the big supermarkets opening small format stores. So, we don’t just need to think about what the customer wants and what convenience is doing, but what retail in general is doing, and how we can have a point of difference and stay ahead of the pack.

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2022 LEADERS FORUM

Haydn Tierney, Managing Director, Bowser Bean/Vantage Fuels What have been the highlights for Bowser Bean/Vantage Fuels over the past 12 months?

Earlier this year, we embarked on ‘The Grand Kombi Tour’.

This traveling roadshow was a celebration of our recent endeavours with the launch of Bowser Bean Echuca as a greenfield site and launches of recently refurbished Bowser Bean Strathmerton and Bowser Bean Violet Town locations. It was rewarding to see our customers and team interact together and respond to our stunning new and refurbished sites.

We also detoured into the Deakin University Geelong Orientation week to activate our classic Coffee Kombi.

Plenty of students enjoyed a delicious Bowser Bean coffee while learning about the company and recruitment prospects.

What is your company doing to meet changing customer demands?

The Bowser Bean food and coffee offer is already exceeding the demands of traditional petrol and convenience (P&C) customers. We are also positioning ourselves to non-traditional P&C customers such as online ordering and delivery.

Although we have a captive market we are going to have to work harder and smarter to service our customers.

What will be your priorities for the remainder of 2022?

Supply chain and staffing pressures are causing some reprioritisation. This year’s approach is more fundamental – look after your staff, maintain customer satisfaction, and keep the doors open.

How is your expansion progressing?

Our is expansion is ongoing. Not only are we continuing to revisit and refurbish existing locations, but we are also considering several ‘brown field’ opportunities that are well within the Bowser Bean hitting zone.

What do you enjoy most about what you do?

It is very satisfying to be able to positively impact on someone’s day. Traditionally, the visit to the servo was a ‘grudge purchase’, but my customers love going to Bowser Bean.

Glenys Tristram, National Marketing Manager, NightOwl What have been the biggest highlights for NightOwl over the past 12 months?

Coming out of difficult times driven by COVID and the restrictions placed on public and business alike, NightOwl celebrates a return of customers to stores that were struggling. We have opened new stores and have welcomed new franchisees into the business.

What will be your main priorities for the remainder of 2022?

We have a project running to update a number of our more regional stores over the coming months. Working closely with operations and our signage partners, we will see stores receiving new external signage, and in some cases new fitouts and upgrades. Watching new life breathed into some of the older stores is an enjoyable priority. The NightOwl team is always working to incrementally improve the customer experience in-store, so that’s ongoing. But something I’m immersed in and enjoying is designing and pulling together our 2022 Summer Promotional Campaign. It’s too early to discuss details yet, however, designing a campaign that is truly integrated over all forms of media and using gamification to embed customer interaction is really a lot of fun.

What is your company doing to meet changing customer demands?

I believe our customers essentially want good old-fashioned 38 June/July 2022 | C&I | www.c-store.com.au

customer service. We can become too caught up in trying to meet the next trending need when what is required is constant vigilance to meet and exceed the basics of bringing joy to the customer in the moment of interaction opportunity.

We are working on improving our training systems, our policies, and procedures, but most importantly our own company culture. In ensuring we meet our employee’s needs; we will be best placed to meet our customer’s needs.

What does your crystal ball say about the year ahead in convenience?

There is no question that the year ahead will bring challenges. Australians are feeling the pinch of price increases in all areas from petrol to housing to grocery.

Rising interest rates will push customers to be further budget-conscious in decisions on where to shop and what to buy. That said then, businesses within the convenience industry will need to be mindful to well articulate the unseen value propositions of their core offering.

What do you enjoy most about what you do?

The team we have here at NightOwl Head Office is inclusive, focused, and motivated. It’s a joy to come to work and be surrounded by people that love what they do and are happy to share their insights and knowledge to drive our business forward. What I enjoy most is the daily interaction and feedback I receive from everyone I hear from within the NightOwl network.

INDULGENCE

It’s all about convenience Our Cheesecake products are designed to meet consumer demand for delicious, convenient, ready-to-eat desserts. The Foodservice and Retail range includes Australia’s favourite flavours of Vanilla Bean, Lemon, and Mango, and are proudly all natural – we don't use any synthetic flavours or colours.

With attractive retail pricing our Cheesecake SKUs are available in single and twin packs, making them easy to display, sell and consume.

For sales enquiries contact your Category Manager at PFD Foodservices or Metcash For further information contact: trevor@signaturedesserts.com.au | Phone +61 7 3395 6633 Mobile +61 413 126 107

HOT COFFEE

BREWING UP SALES

After feeling the heat of lockdowns, hot beverages sales are brewing up business once again, writes Claire Hibbit.

Within major P&C operators, getting out from under $1 coffee will be necessary to improve already eroded margins.”

– George Miller, CEO – Oceania, Tiger Coffee

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fter being the fastest growing category in the petrol and convenience channel (P&C) for the last five years, hot beverages has felt the heat of the pandemic.

Over the past two years, the sector has been impacted by pandemic-related lockdowns and work from home orders, which saw the elimination of commuters’ early morning coffee run. But, as workers begin to hit the roads and return to offices, sales are looking up.

According to Theo Foukkare, CEO of the Australian Association of Convenience Stores (AACS), data from the newly released AACS 2021 State of Industry Report shows the hot beverages category rebounded in 2021, growing at 7.4 per cent, following a drop in sales in 2020.

“This delivered an extra $22 million in sales, more than making up for the $11 million decline in 2020*,” notes Foukkare.

CONSUMERS SEEK CHOICE AND VALUE Hot beverages in the P&C channel have evolved significantly over the last few years as customers demand a better quality cup of coffee.

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“Coffee quality and the speed of service required in P&C outlets drive many insights and trials,” explains Philip Badolato, National Business Manager – P&C, Grinders Coffee at Coca-Cola Europacific Partners Australia (CCEP).

“Alternate milks have greatly increased in the cafe channel in recent times and there is certainly now a flow on effect into P&C where operators have a barista style offer vs fully automatic.

“Where there used to be one type of alternate milk on offer, we are now seeing enough sales to justify three, sometimes four alternate milk types. Coffee is also playing a significant role all through the day in P&C with the increase in the afternoon coffee occasion.”

According to George Miller, CEO – Oceania, Tiger Coffee, consumers are seeking choice and value, with alternative milk options, most notably oat milk, on the rise.

“In cafes, alternative milk is seeing significant growth and is exceeding 45 per cent of coffee sales in most parts of Sydney, Melbourne, and Brisbane,” says Miller.

HOT COFFEE

The local petrol station has its part to play in being more of a destination for necessities and with this comes an opportunity to create a cafe style option within outlets.”

– Philip Badolato, National Business Manager – P&C, Grinders Coffee

“Employees continuing to work from home post-pandemic will have an impact on coffee sales, especially during the morning commute peak of 6am-9am,” says Badolato.

According to the AACS 2021 State of Industry Report, visit frequency was lower in 2021 than 2020, however, the mission to purchase hot coffee has increased – although it’s not back to pre-pandemic levels in 2019**.

Badolato believes there is a role for coffee brands to play to help retailers improve their offering.

“Certainly, one of the majors should ditch light milk as its demand is falling, but it is also looking to cross over in P&C to alternative milk “Oat is a is massive growth area in major metro areas. While almond still holds risks (regarding allergies), oats should be replaced by light. The market is gagging for a new P&C coffee choice.”

MAKING EVERY CUP COUNT Miller believes the main challenge for P&C operators is sustaining an attractive fresh coffee offer every day, encouraging retailers to add complementary sales with as many coffee transactions as possible.

“Coffee prices are all up everywhere. Within major P&C operators, getting out from under $1 coffee will be necessary to improve already eroded margins. Consumers are coming to accept it will need to happen. The time is certainly nigh for $1.50, $2,50 and $3.50 (small, regular, and large). For an excellent quality coffee customers will not flinch from it.”

Badolato says the main challenge for the hot beverages category will be the long-term impacts of the pandemic such as commodity prices, fuel prices, and the continuation of remote working.

“Petrol outlets are turning into mini supermarkets. As more people continue to work from home, the local petrol station has its part to play in being more of a destination for necessities and with this comes an opportunity to create a cafe style option within outlets.”

To help keep things fresh, Grinders is constantly looking at alternate, and improved equipment options.

In fact, Badolato and his team have been working with Franke Automatic Coffee Machines over the last 12 months on how to capitalise on the increased technology the machines offer.

“We will be using these machines more in the future as they have amazing telemetry software, that is operated by Franke itself. It lets us remotely log in to any machine around the country to pull all types of data around sales volumes, sales by coffee type, day part, size, etc. This information enables us to develop tailored promotions that can be remotely sent to any machine in a customer’s network and displayed in-store on the machine’s screen.”

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HOT COFFEE

There needs to be sufficient coffee presence outside the store and then there is the need to create a path to purchase inside as well.”

– Philip Badolato, National Business Manager – P&C, Grinders Coffee

Tiger Coffee, the official distributor of Eversys Oceania, has recently welcomed the latest Eversys’ commercial coffee machine, Eversys Legacy, which Miller describes as a “game-changer”.

The Legacy functions as a one-step machine with new innovations including up to four grinders and an integrated powder unit for multi-purpose beverage service.

“Eversys Legacy is an attractive, sustainable, versatile, and well thought out [machine], and is ideal for P&C,” says Miller.

ADD A LITTLE EXTRA According to Foukkare and the 2021 AACS State of the Industry Report, category growth has been generated by both push button and barista coffee, with independent stores in particular getting strong results once upgrading their offer.

Badolato believes there is significant opportunity for coffee activation, especially when it comes to $1 push button coffee.

“There are more retailers selling $1 coffee but too often I see [operators] placing an automatic machine in the corner, pricing coffees for $1 and assuming it’s just going to sell,” he says.

“There needs to be sufficient coffee presence outside the store and then there is the need to create a path to purchase inside as well. People also need to be clear on why they are selling coffee for $1.

*AACS 2021 State of the Industry Report **AACS 2021 State of the Industry Report, CMA Convenience Shopper Report 2021

“When you add up the cost of automatic equipment, servicing and the cost of the product itself, the money is not in selling coffee for $1, it is in the upsell and using the coffee to drive people into the store.”

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Legacy by Eversys

Foukkare says the coffee customer delivers retailers an opportunity to be intertwined into the customers’ daily routine, which in turn drives increased frequency and the opportunity upsell other items in the store.

Badolato says it’s important to bundle products with coffee based on the time of day. He suggests a breakfast item in the morning and a snack/confectionery item such as chocolate in the afternoon. He also suggests retailers feature a coffee and water promotion throughout the entire day.

“Consumers are always looking for value and coffee can be bundled with so many different products.” C&I

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CHOCOLATE BARS

CHOC-A-BLOCK One of the most impulsive purchases in the P&C channel, how does chocolate stay front of mind for consumers, asks Thomas Oakley-Newell.

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long-time staple in the petrol and convenience (P&C) channel, chocolate continues to deliver sales growth for many companies in the segment and is one of the most impulsive products in the market. Available in a variety of forms – blocks, bags, and bars – consumers have consistently enjoyed the category.

The AACS State of the Industry Report 2021 revealed that while chocolate growth wasn’t as strong as in 2020, the category still delivered 1.9 per cent growth, delivering +$6 million in value to retain the largest share of the confectionery category overall.

Anna Matheson, Channel Manager from Nestlé, said during the pandemic sharing formats were positively impacted as consumers were looking for new ways to indulge.

“Chocolate bags and chocolate blocks experienced significant growth and expanded their presence in-store. Blocks have maintained momentum as we transition post-Covid, with Nestlé blocks +2.4 per cent in the quarter, growing ahead of the segment.1” Tom Wild and David Walpole, spokespersons from Mondelēz, said the company had noted a 15 per cent increase in basket penetration in the P&C channel and bars remain a growth focus.

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“We’ve seen strong sales value growth in the channel, which outperformed the likes of hot dispensed beverages and grocery items.

“Along with beverages (inc. coffee), bars are one of the most impulsive and expandable products within the channel and deliver on multiple missions and occasions throughout the day – we also see bars being the anchor for us to unlock additional activation points both in-store and online.”

Another growing consumer trend noted by Sheri Juchau, Category and Trade Marketing Director for Ferrero Australia, was the desire for sustainably created products.

“We are seeing steadily-increasing consumer demand for chocolates with more sustainable ingredients, so we are proud of the ongoing progress of our sustainability initiatives; for example, since January 2021, Ferrero has sourced 100 per cent certified-as-sustainable cocoa for all our products through independently managed standards including Fairtrade and Rainforest Alliance.”

Juchau spoke of the importance of the P&C channel to Ferrero, saying that given P&C is a high impact channel where consumers actively seek out new products, it is able to deliver increased awareness and the trial of new products, such as

CHOCOLATE BARS “KitKat continues to hold the number one medium bar rank in total convenience, with its core KitKat 45g, with total brand driving upwards of $22.5m annually. The brand continues to resonate well across multiple formats (medium bars, share bars, and blocks), with strong performance in medium bars in particular.

“While the medium bars segment is growing +2.2 per cent in the quarter, KitKat medium bars are growing well ahead of the channel at +13.3 per cent, fuelled by innovation and momentum across core lines2.”

Confectionery can ‘build the basket’ as an addon to the shopper’s primary mission, so positioning confectionery products close to these items and/or creating promotional bundles can be effective in increasing shopper spend.”

– Sheri Juchau, Category and Trade Marketing Director, Ferrero Australia

Andrew Antoniou, National Account Manager at Menz, said that Violet Crumble 100g bag, Violet Crumble Nuggets 135g bag, and Violet Crumble 50g bar are the best performing products, mainly due to these three lines having the greatest distribution.

“The data we get shows a positive story for Menz within P&C. There is no doubt that our products have certainly grown in the last two to three years in the channel. This includes both our distribution and sales.”

PRODUCT INNOVATION Perhaps more so than other categories, for chocolate, innovation and NPD are critical in driving frequency and conversion.

Matheson spoke of the need to inject new news and excitement into the category and mentioned Nestlé’s recent launch of KitKat Chunky with Lotus® Biscoff®, featuring the iconic crisp overbaked wafer finger combined with the caramelised biscuit spread of Lotus® Biscoff®.

“The recent KitKat Chunky with Lotus® Biscoff® launch has been a huge success, driving incremental value to Nestlé’s portfolio and the segment, attracting significant buzz with consumers and having a positive impact on core KitKat Chunky 50g.”

Kinder Happy Hippo and Tic Tac Watermelon Mix, which both launched to market in the second half of 2021.

“The P&C environment also allows for broader demographic reach (compared to the grocery channel) and caters to a different need state – perfect for Ferrero’s impulse products, such as Kinder Bueno, Kinder Surprise and Tic Tac.” Juchau said that both Kinder Bueno and Kinder Surprise are stand-out performers within the channel.

“Kinder Surprise is ranked second in the Kids Novelty brand category, with exciting new toy ranges throughout the year helping to support these results.

“Kinder Bueno continues to deliver consistently strong outcomes across P&C retailers to achieve a number eight brand ranking in Chocolate Bars category, with Classic and White flavours returning +1.7 per cent value growth on last year.”

Matheson identified three main performers for Nestlé – KitKat, Milkybar, and Aero – as the drivers for Nestlé’s chocolate category, with the trio delivering 83 per cent of total Nestlé chocolate value sales and each brand delivering differentiated offers and targeting unique shoppers.

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CHOCOLATE BARS Mondelēz agrees that keeping chocolate “within arm’s reach” is critical due to the highly impulsive nature of the category but also identified the use of technology to drive sales in the future.

“Successful retailers are generally the ones embracing technology. There is an impending demand for online services to extend to convenience consumers who want a personalised, streamlined service.

“We will see consumers paying for fuel or convenience products through an app or even vehicle plate recognition. It is technology like this that reinforces what the P&C channel is known for – convenience and reliability.

Along with beverages (inc. coffee), bars are one of the most impulsive and expandable products within the channel and deliver on multiple missions and occasions throughout the day.”

– Mondelez spokesperson

Joyce Tan, Head of Marketing at Nestlé, said that Lotus® Biscoff® is one of the most requested and searched-for items on the KitKat website.

“We’ve seen an undeniable love for both KitKat and Lotus® Biscoff® and are so thrilled to combine them and introduce such a delicious addition to the KitKat Chunky range in Australia. We wanted to excite KitKat fans with a flavour and texture combination that would leave them longing for their next break,” said Tan. Mondelēz, producer of Cadbury, is another company developing new products, its latest is a range called Cadbury More, which features three new blocks with a twist on some of its most loved flavours and includes a mixed roast nut flavour, a nuts and salted toffee flavour, and an Old Gold and Fruit ‘n Nut combo block.

Paul Chatfield, Vice President of Marketing at Cadbury, said they are excited to introduce Cadbury More, some of the chunkiest and most generous blocks ever produced.

“Our Cadbury More range is a fresh take on some familiar favourites that have been loved by Cadbury fans for generations. We can’t wait to see what our chocoholics think, particularly those who love the crunch and variety of nuts, fruit, and Cadbury chocolate.”

CONVENIENCE IS KING Positioning chocolate in key impulse purchase areas is paramount and can help P&C retailers boost sales through unplanned purchases.

Juchau said specifically towards the front of store and within arm’s reach of the till is ideal.

“Confectionery can ‘build the basket’ as an add-on to the shopper’s primary mission – for example buying food to go or coffee – so positioning confectionery products close to these items and/or creating promotional bundles can be effective in increasing shopper spend.

“The consistently strong performance of the Kinder Bueno range demonstrates the incremental value to retailers in offering variants of popular products, particularly at the register where as many as 50 per cent of purchase decisions occur.3” Juchau said multiple locations and displays drive up to 33 per cent higher purchases3 by offering additional opportunities for consumer consideration, which is why Ferrero’s POS displays are designed to attract attention in a range of spaces.

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“Tech also gives retailers access to valuable data insights. From this, retailers can invest in the right innovation for their business.”

Antoniou said that obviously every supplier wants the best position in-store, but due to Menz’s recent growth it shows consumers are looking for their products and therefore are warranted in being given key selling positions.

“The other benefit for Menz is the fact we are local, Australianowned and manufactured, and this can certainly be a leverage for retailers.”

Matheson also offered advice for retailers regarding positioning and selling Nestlé products and echoed previous sentiments that chocolate remains one of the most impulsive categories in the channel.

“Driving sales at counter and off location displays are crucial to conversion by reaching the consumer with multiple touchpoints.”

At the end of the day, Mondelēz believes retailers need to keep evolving as consumer behaviours continue to expand from fuelonly needs.

“Shopper insights show the modern consumer expects a broader convenience offering that includes fresh meals and food delivery and we believe confectionery plays an integral role in unlocking key basket builders within these key P&C missions.” C&I

Source: 1 AC Nielsen AUS Convenience Scan MAT to 10.05.22 2 AC Nielsen AUS Convenience Scan MAT to 10.05.22 3 Ferrero Confectionery Shopper Vision Study 2018

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PRODUCT RANGING

OICE • C&I C CH H &I

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Funday Natural Sweets has been recognised as a mover and shaker in the ‘better for you sector’ being named Best Food Product of the Year at the Naturally Good Awards, and now as this month’s C&I Choice.

Melbourne-based Daniel Kitay launched Funday Natural Sweets in 2021 when he was looking for a solution that would enable him to satisfy his sweet tooth while eliminating sugar from his diet.

Since then, their healthier versions of red frogs, vegan gummy bears, and sour peach hearts, have won customers over, and have recently been ranged by Ampol. In fact, by the end of 2022, Funday Natural Sweets is on target to be stocked in more than 3,000 stores across the country, including Woolworths, Chemist Warehouse, and Ampol in Australia and New Zealand.

“This all started because I wanted to eliminate sugar from my own diet but still enjoy my favourite lollies,” says Kitay.

“The team at Funday work tirelessly to create lollies that aren’t just free of ‘nasties’ but have health benefits too. We’re always talking to, and guided by, our customers so we can’t wait to see what the next year brings.”

Kitay says that there has never been a product

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like this in Australia before, with up to 91 per cent less sugar and full of prebiotic fibre. His hope is to “make a mark in Australia as the leading healthy confectionery brand. That’s really our vision and we’re on our way to getting there.”

REENGAGING CONSUMERS

Funday Natural Sweets provides a great opportunity for retailers to reengage with consumers who may have left the confectionery category.

“There’s a huge demand for low sugar and sugar free products in Australia and there are a lot of consumers in Australia, who love confectionery, but simply do not buy confectionery because there is too much sugar in it,” says Kitay.

“Our products are very visually appealing, and they stand out significantly. They allow people who have kind of not been engaged in confectionery to start reengaging with the category. What that does is it actually adds incremental sales to that confectionery category in all retailers. And all retailers are looking for incremental growth in their stores.

“What we don’t do is we don’t replace one product for another product, which just provides no incremental growth. We’re a brand that’s showing difference in life by providing genuine unique selling points and getting new people into the category – and I think that’s probably the greatest thing that we’re doing for retailers.”

Licensed Remote Control Mercedes-Benz Actros Model – Pure joy and sheer brilliance Kids are always curious about the how and why of everything they see or hear. While on the road, your kid may have come up with thousands of questions about various vehicles, automobile parts and their operations. But how often has your little genius seen a haulage vehicle on the road or wondered how a car is transported from the factory to the showroom?

With numerous transportation-themed toys widely popular in all corners of the world, this officially licensed Remote Control Mercedes-Benz Actros Model Toy offered by IPL Retail is a one-of-a-kind opportunity to practically give an insight into how vehicles are transported from the manufacturer to the showrooms. The set includes a truck tractor, carriage, MercedesBenz GT car and remote control. The red car and yellow truck models seem realistic and have the strong robust feel of actual Actros and Benz cars thanks to their injection-moulded structure, superb finish, and authentic colour scheme.

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Both the car and the truck are remote controlled, and kids will have a blast forwarding, reversing, turning, raising and lowering the tailboard to effectively navigate the obstacles to successfully drive the car in and out of the carriage for loading and unloading. The design features an independent suspension system that provides a smooth ride and turning experience. It’s not just a toy to keep curious little minds hooked to it for hours, but also a fun way to enhance hand-eye coordination, boost spatial awareness, and develop cause and effect analysis skills.

IPL retail offers this unique educative and entertaining toy at a pocket-friendly price and in a stylish package to encourage kids to try transporting Mercedes-Benz cars via a commercial truck. A symbol of pure delight and sheer brilliance, this toy is a valuable and memorable gift for kids!

Check out this toy, as well as other fascinating educational toys at iplretail.com.au.

LOLLIES THAT ARE ACTUALLY GOOD FOR YOU!

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Available at Ampol, Woolworths Supermarkets & Metro, Chemist Warehouse, Health Food Stores & Independents

PRODUCT RANGING

Yeah, that sounds like fun Think about the last time you listened to music. Was it to push yourself through a workout? To run up that damn hill? Chill out on a Sunday morning? Or when you finally get to put your feet up at the end of the week? Maybe it was to get your groove on. Did you ever yell “party” and dance in your living room? That sounds like Fun. Whatever music you listen to, it raises an emotion within. We all have a deep connection to music and it’s precisely what drives us at Fuse with an obsession with tunes since 2013. Born to deliver value for money audio products to the petrol and convenience marketplace, Fuse puts your daily playlist, podcast, and phone calls in your ears. We want to ‘ignite your ears’ but not incinerate your wallet.

And this season Fuse is turning up the dial on fun with new branding exploding to life.

Keep an eye out for it in-store.

The new branding will help bring pop

culture, music, and user recognition of purpose together in one bold BOOM! That sounds like fun. As you might have taken from the above, Fuse wants to bring the fun to life, visually, and through sound via vibrant packs, elements in the product itself and in the tuned and tweaked elements of the product. Wait to find neon bursts of light (which can be turned off for that Zoom call with your boss) paired with vibrant bass and treble to deliver products that delight and quite literally sound like fun.

You will probably see our LED flashing cables first. These are a novelty not a gimmick like might first be thought. The flashing slows and stops when your device is fully charged and of course the lightning cable is MFi (Apple’s Made for iPhone) certified to deliver the certainty and quality everyone expects. A product that delivers on impressing, brightening, and delighting, that sounds like fun. Keep your eyes and ears peeled for Fuse this season!

Freshen your breath on the go with Listerine Refresh your mouth anytime, anywhere with Listerine® PocketMist Oral Care Fresh Breath Mist. This minty mouth spray kills 99 per cent of germs that cause bad breath, according to lab tests for a clean feeling mouth.

Fresh breath spray is offered in a pocket-sized package for easy carrying. The breath refresher spray is small enough to fit on your keychain, or in your bag or pocket, so you can freshen your breath no matter where you go.

• Kills 99 per cent of germs that cause bad breath • Pocket-sized and easy to carry package for fresh breath on-the-go • Mint breath mist leaves your mouth feeling refreshed and clean • Oral care breath spray features invigorating Cool Mint peppermint and Freshburst flavours • Breath refresher mist is offered in a non-aerosol spray and leaves you with fresh breath The benefits of Listerine in a convenient spray.

For any ranging enquiries please contact enquiries@jcsm.com.au.

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PRODUCT RANGING

Innovative display cases for all categories of food retail DoubleCool products are made from individual acrylic sheets. The raw material is a liquid petroleum product called a ‘monomer’. To produce end products such as windows or doors from sheets of acrylic, the sheets must first be heated before they can be pressed into the required shape using a moulding press, they are stuck together to achieve a double-walled insulating effect. The most stringent quality controls are carried out on the production process.

The doors are stable and the much higher break resistance in comparison to conventional glass. Additional advantages that are not only characteristic of DoubleCool doors, but also guarantee unrivalled quality and product features, include: • Maximum transparency completely frameless, insulating acrylic doors • Guaranteed scratch resistance with new specially developed coating • Suitable for retrofit markets • 10 per cent more transparent than glass, allowing food to be presented more attractively • All DoubleCool doors are 100 per cent recyclable.

Colcab is an innovative, leading supplier and manufacturer of supermarket display cabinets, as well as associated refrigeration equipment.

Cabinets are specifically tailored to the requirements of its customers, who range from independent retailers to corporate chain stores.

Colcab has emerged as South Africa’s largest and most innovative manufacturer of refrigerated supermarket display cases, as well as producing a range of ambient, hot, chilled, and frozen display cases for all categories of food retail.

Colcab cabinets are designed as an energy-efficient solution and satisfy both the retailers’ design and energy requirements. In addition, LED lighting, ECM fans, electronic control and closure of cabinets have a substantial impact on direct energy consumption reduction Capabilities include: • Manufacture cases and refrigeration racks suitable for use with CO2 • Manufacture cases with DoubleCool Acrylic doors • Manufacture all freezer application with glass doors • Manufacture of Lofty range for narrow aisle • Avant Range of Plug and Play Hot and Cold equipment.

For more information contact Greg Haynes on 0407 288 461 or Martin Shi on 0407 595 588.

Mars Wrigley expands gum and mint portfolio with two new products Mars Wrigley Australia has launched two new products, Eclipse Plus and Extra White, as it continues to drive innovation in the gum and mint categories.

Developed in Australia by its Asquith-based research and development (R&D) team, the additions offer a different take on traditional mint and chewing gum products.

Eclipse Plus comes in two flavours, Comfort and Release, which have been expertly balanced with recognisable flavour blends to help Aussies ‘feel their way back to fresh’.

Eclipse Plus Comfort features a blend of honey, lemon, and ginger, while Eclipse Plus Release features the much-loved mix of lemon, menthol, and mint.

Continuing Mars Wrigley’s gum and mint portfolio expansion, the company has introduced Extra White sugar free gum, which features sodium bicarbonate to help Aussies keep their smile clean and bright while on the go. It is available in two hero flavours, spearmint, and peppermint.

Endorsed by the Australian Dental Association 52

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(ADA) and the FDI World Dental Federation, chewing sugar-free gum like Extra White is scientifically proven to support a healthy oral care routine.

Chris Hutton, R&D Director at Mars Wrigley Australia said, the expansion of the gum and mint portfolio signals Mars Wrigley’s continued commitment to driving local innovations out of the Asquith site.

“Our new product innovations offer consumers a welcomed and refreshing take on old favourites.

We see the gum and mint category as a key growth engine for our Australian business, and we’re delighted to be able to offer consumers exciting new flavours and convenient solutions that complement their oral care routine.

“With more than 60 years of manufacturing history in Asquith, we’re a proud Australian manufacturer and are continuing to invest and innovate new products across our gum and mints portfolio locally. It’s an exciting time for us.”

Eclipse Plus and Extra White gum are now available in major supermarkets and convenience stores nationwide.

PRODUCT RANGING

Dairy Farmers launches limited-edition flavoured milk range Dairy Farmers Classic has launched a range of limited-edition flavoured milks, headlined by Dairy Farmers Classic Ruby Chocolate.

Dairy Farmers Classic Ruby Chocolate pairs fresh Aussie milk with a velvety ruby chocolate flavour, with hints of berry and the smooth and creamy taste synonymous with the Dairy Farmers Classic brand.

This is the first time Aussie shoppers have seen Ruby Chocolate as a ready to drink flavoured milk.

Ruby Chocolate is joined by Dairy Farmers Classic Mint Chocolate, a fresh, moreish flavour combination and Dairy Farmers Classic Choc Chip Cookie, which heroes delicious chocolate and biscuit flavours.

Dairy Farmers Classic Brand Manager Anne Scott says these limitededition flavour variations invite adventurous chocolate milk lovers to sip something exciting and new.

“Aussies love their flavoured milk and we’re delighted to introduce these delicious new flavours into the market - chocolate lovers are in for a real treat,” she said.

“Ruby Chocolate has had great success in adjacent categories, and we’re excited to bring this global food trend to flavoured milk through Dairy Farmers Classic, a brand that’s proudly Aussie made and owned.”

The Ruby Chocolate and Mint Chocolate varieties are widely available now in Queensland, NSW, and South Australia, while Choc Chip Cookie is exclusive to Woolworths.

Allen’s launches its first ever vegan lolly mix Allen’s has launched its first vegan lolly mix, with the new Allen’s Jubees in a chewy, vegan-friendly jube.

Jubees features the fan favourite Allen’s flavours of Raspberry Red Frogs, Cola Bottles, Blackberry Purple Snakes, Orange Jelly Babies and Pineapples in delicious chewy jubes.

Nestlé Head of Marketing Confectionery Joyce Tan says: “We love surprising Aussies with new lollies to make them smile. We are thrilled to now introduce a tasty vegan-friendly variety pack with the new Jubees.

“We had a great time curating our popular lolly flavours and working on the perfect gummy texture jubes, so now more lolly lovers can enjoy a little burst of fun. Vegan or not, all will enjoy the compact yumminess of our new Jubees.”

Allen’s Jubees are available now in grocery and convenience stores.

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PRODUCT RANGING

Purina’s Lucky Dog Bones is a bone-a-fide winner Established in 1963, Lucky Dog Bones is an Australian heritage brand that customers and their four-legged friends have been enjoying for nearly 50 years.

The Lucky Dog Bones range contains one variant, the Lucky Dog Bones Original 800g, which is aimed at smaller format stores and the petrol and convenience channel, so it is perfect for consumers to easily pick up when out and about.

Crunchy and shaped like a bone, these oven baked treats are made using wholesome ingredients to provide dogs a healthy snack without all the nasties, and in fact provides dogs with oral benefits that reduce tartar, giving them cleaner, healthier teeth.

Studies have shown that 63 per cent of shoppers are looking for products with no artificial colours, flavours, or preservatives, and given Lucky Dog is created using none of those ingredients it offers health-conscious consumers a great onthe-go option.

Later this year, Lucky Dog Bones plans to undergo a packaging refresh, making the packaging recyclable, but to also reflect the decision to remove all artificial colours from the range.

The planned refresh is in line with consumer preferences, with a recent study showing that 72 per cent of shoppers say environmental sustainability is and will continue to be important.

Intended as an occasional or supplementary treat, Lucky Dog is ideal for teaching obedience and encouraging good behaviour.

The Lucky Dog Bones Original 800g is currently available through The Distributors and comes with a RRP of $5.99.

$157,000 theft recovered Rises in fuel prices have seen a dramatic spike in drive off offences across the nation, causing fuel retailers to suffer during an already devastating economic crisis.

Sensen AI networks and Scancam technology have linked to assist fuel retailers in recovering their losses and help put their money back into their businesses. Scancam is the only antifuel theft solution with a dedicated debt recovery service in Australia.

Protected fuel retailers have the ability to recover their losses and prevent future theft as a result of this simple and affordable solution. As a result, Scancam has been able to recover a total of $157,000 worth of fuel theft just in April 2022 nationwide.

If you’re business is experiencing fuel theft, please get in touch to find out how Scancam can recover your losses and prevent fuel theft into the future.

For all enquiries, please contact sales@sensen.ai.

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Bowser Bean Strathfieldsaye upgraded its food and coffee offer in 2021

OPINION

MAXIMISING the food opportunity

Convenience stores and roadside retailers have a strategic advantage over most other industries through their expansive reach in every state and territory, writes Theo Foukkare.

I

THEO FOUKKARE CEO Australian Association of Convenience Stores

Winning your customers' hearts and minds to be selected into their preferred choices to fuel their body is a key driver to ensure the longevity of your business.”

– Theo Foukkare, CEO, AACS

f you are like me, you love eating great food, you probably have your favourite cafes or restaurants and you are a creature of habit especially when it comes to fuelling your body. We make emotional decisions that we can connect with from our past experiences whatever the occasion.

Your decision on where to eat during the week will be influenced by where you are, where you are going or where you plan to be later in the day.

You always choose where to fuel your body based on the time of day, variety available, the speed of service, the physical location of the store, whether it is healthy or a treat or even based on what else you can do at the same time when you stop to maximise your time. In a world where we are all looking to save time to either be more productive or have more quality time with your family, consumers have a wide variety of choice.

Most Australians will consume 21 meals per week, and currently in Australia 10 of these occasions occur out of the home. Winning your customers' hearts and minds to be selected into their preferred choices to fuel their body is a key driver to ensure the longevity of your business. Here is where the real opportunity lies for convenience retailers.

Consumers over the years have learnt to love the consistent taste, speed and availability of McDonalds, Hungry Jacks and Subway to name a few. They like that they can sit down and recharge while they eat, they like that they can grab a healthy or not so healthy option, they trust the fact that the emotional connection to the experience was a positive one. Now not only are they stealing potential customers from you while they are on the road travelling, but they are also delivering into their homes when customers can’t be bothered to get off the couch.

In my opinion, convenience stores and roadside retailers have a strategic advantage over most other industries through their expansive reach in every state and territory. We

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trade longer hours, are closer to more homes than any other channel and we continue to see this migration to food and coffee retailing occur.

Our industry has fuelled vehicles since their inception and we now feed peoples' bodies to keep them going, but we are only scratching the surface. Understanding your local customer base and their movements is key to developing your food range to maximise the opportunity.

Having the same range in very store isn’t the answer, however having a consistent good quality offer that is fresh, exciting, in stock when your customers expect it to be in stock is part of the magic formula to winning in foodservice.

No sandwiches on display at lunchtime or no pies ready to be eaten when the tradies finish their day on site won’t give your customers a lot of confidence that they can choose you as their preferred location in one of those 10 occasions that they are eating out per week.

Being a food retailer isn’t easy, there are lots of lessons to be learnt and spoilage while you learn, but once you work through this you can then start to build on the range.

Sometimes as retailers we focus on trying to provide our customers with a broad range, but the basics are not rock solid, and we disappoint the customer.

My advice to any retailer wanting to develop a repeat food customer is that they need to be able to trust you when they need you. So, get the basics right; focus on quality, have the right range for your store based on location, give your customers somewhere quiet and aesthetically pleasing to enjoy their food, and build from there. Don’t try and be all things to all people as you will fail and not maximise the opportunity ahead.

To be a real threat to QSRs and be a considered choice for online delivery, continue to build your offer but only after you’re positive that operationally you can deliver a consistent product day in day out. C&I

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OPINION

MANAGING PRICE INFLATION – the case for convenience

Trade partners driving inflationary price differences across grocery and convenience is not an approach the convenience industry should accept, writes Darren Park.

2

DARREN PARK CEO United Convenience Buyers

We all have a chance to make a generational difference on the way we encourage shoppers to engage with brands in convenience.”

– Darren Park, CEO, United Convenience Buyers

022 promised to be a more predictable year for retail, with lockdowns a thing of the past (we hope), where borders are open, populations are out and about, and face-to-face retailing returned to a new normal.

Supply chain issues were known, as were staffing issues, but little did we know that the light at the end of the tunnel was in fact, a train coming at us carrying price inflation.

Shoppers don’t find products ranged in convenience stores by accident, trade partners propose products and retailers range them in-store. The quid pro quo for ranging products is that they generate a fair and reasonable margin for the retailer’s contribution and that the product’s pricing is fairly positioned, encouraging shopper purchase and repeat purchase. A suitable value equation for all participants.

Some of the most well-known and purchased brands out there reach shoppers by accessing multiple distribution channels, including the convenience channel. Multiple sales channels increase the chances that trade partners, retailers, and brands will conflict. Many of our industry trade partners have businesses across multiple channels, from convenience to foodservice and grocery. My largest issue is with pricing conflicts across customers and channels, especially grocery.

Yes, there are stark differences in convenience vs grocery.

In grocery, there are in many cases lower margins, costs of just getting in the door, contracts and terms that strongly favour retailers, logistical issues, costly data access and the list goes on. Convenience on the other hand is a channel that allows us all to build brands with greater shared input, more often than not in an environment that is brand rich and in where there’s an absence of private label competition.

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Grocery is a battle ground for brands, where the terms ‘Best Value’ or ‘Lowest Prices’ are shared relentlessly at shoppers. Convenience stores don’t trade on these lowest common denominator call outs, we trade on convenience, speed, safety, cleanliness, and community. A range of attributes that are so complementary to experience retail – which where so many brands wish to be.

And it’s this potential inflationary driven conflict of convenience pricing, that is at the centre of my opinion piece.

Why is convenience in Australia regularly treated differently when it comes to product cost differences across channels and in some cases retail customers in the same channel? Isn’t this counter intuitive to growing business outside of low margin, less competitively intense retail environments? Shoppers have changed their habits during COVID and while some of that will snap back to previous behaviours, much of these new habits will stick – and we all have a chance to make a generational difference on the way we encourage shoppers to engage with brands in convenience.

Trade partners driving inflationary price differences across grocery and convenience or across retailers in the same channel, is not an approach the convenience industry should accept. We must stand together and with our own unique approaches, not allow our shoppers to see us as anything less than being a price and ranging competitive solution to their shopping missions – not as a margin balancer for a brand’s grocery ambitions. We as a convenience industry, deserve nothing less.

Until next time, Darren Park

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INDUSTRY NEWS

Ampol unveils electric vehicle charging brand AmpCharge Ampol has unveiled its new electric charging brand, AmpCharge, and announced plans for a nationwide roll out of fast chargers.

Ampol will leverage existing Ampol infrastructure and customer relationships to service customers using AmpCharge at both forecourts and destinations and at home. Ampol is looking to establish the charging network across Australia by 2030.

Matt Halliday, Managing Director and Chief Executive Officer at Ampol, said the announcement is an important step towards the execution of Ampol’s future energy and mobility strategy, including its objective to reduce emissions in the transport sector and support the uptake of battery electric vehicles (BEVs).

“As we begin to evolve our national network, consumers will see AmpCharge in Ampol service stations, depots and terminals right across the country. For the first time, we’ll also be entering homes, workplaces and shopping centres as we seek to deliver simple and efficient charging solutions at convenient locations to keep people moving.”

The rollout will begin with five pilot sites at Ampol service stations in Carseldine QLD, Alexandria NSW, Northmead NSW, Altona North VIC, and Belmont WA, in June and July 2022, before expanding to approximately 120 sites by October 2023.

“We’ve been keeping Australians moving for over 120 years. Today, as energy needs evolve, our vision is to become Australia’s leading distributer of energy, providing mobility solutions for any of the vehicles our customers drive, anywhere and anytime they need it,” said Halliday.

The sites will feature AmpCharge chargers supplied with renewable energy, or covered by green certificates, and will be capable of delivering charge to a BEV at up to 150kw, with each site having the capacity to charge at least two BEVs concurrently.

The Australian Renewable Energy Agency (ARENA) will provide partial funding for the expansion through the Future Fuels Fund, following an agreement announced in July last year.

Apco Service Stations simplifies refuelling for drivers with a disability

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Apco Service Stations is rolling an app out to its stores across NSW and Victoria, which will assist drivers living with a disability to refuel their cars.

Filling up the car can be a daunting challenge for drivers living with a disability, but it’s also a challenge for fuel stations to help, as often they are single manned and unable help for security reasons.

The FuelService app is a complete solution to the problem, allowing drivers to find and ask fuel stations if they can assist before they drive there.

Once the driver arrives at the station, the app allows the driver to notify the attendant of their arrival and which fuel pump they are parked at. Drivers use either a smart phone app or an interactive phone call system to find and contact fuel stations.

Apco Service Stations Directors Robert and Peter Anderson are proud to be rolling out the FuelService App, which has already been successfully adopted across Europe, North America, and Canada.

“This app is a game changer for the community. Providing equity of access to simple actions is one-way Apco can be more inclusive in the service it provides.”

Apco Service Stations began trialling this app in three Geelong stores; North Geelong, Newcomb, and Grovedale in September 2021, and is now ready to roll out to all of 26 stores across VIC and NSW as of May 2022.

“We want to share this news with the community as a wide call out to drivers living with a disability in hope that we may assist them going forward by removing the hassle of the petrol station process for them,” said the Andersons.

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INDUSTRY NEWS

BNPL start-up Fupay announces expansion into grocery and fuel Fupay has partnered with Foodworks, IGA Marketplace, and United Petroleum in its expansion into the grocery and fuel sectors.

The Australian fintech start-up will work with the new merchant partners to provide consumers with a Buy-Now-Pay-Later (BNPL) option that provides cash back rewards and shortly switch-and-save options based on personalised spending habits.

Michael Fredericks, Founder and Managing Director of Fupay, said historically Australian merchants have exclusively offered customers credit card payment options to meet their short-term credit needs.

“The younger generations continue to turn away from the open ended ‘debt trap’ associated with credit cards, and now all merchants are realising the need to meet this growing shift.

“With traditional BNPL credit designed to increase retail merchant sales, with no affordability checks, the offering doesn’t work for everyday spending categories

which may have lower margins, no discretionary up-sell agendas for fixed expenses such as rental payments; not to mention the hesitancy around responsibility concerns with some products.”

Benefits to merchants include the ability to provide the platform’s features under their brand to their customers as a customisable white label solution (B2B2C) and partnerships with Fupay enable everyday spend merchants to provide short-term payment smoothing options and targeted promotional offers and rewards to customers.

Judith Russell, Chief Operating Officer of United Petroleum, said they are excited to be one the pioneers in offering responsible payment smoothing services in the fuel industry across 350 plus United service stations nationwide.

“Partnering with Fupay not only opens up flexible payment options for our customers but provides a four cents per litre fuel discount which helps towards managing their financial wellness.”

Michael Fredericks, Founder and Managing Director, Fupay

E-cigarette licensing system is broken, says AACS Following NSW Health’s announcement that over $1 million in illegal vape products had been seized this year, the Australian Association of Convenience Stores (AACS) said the NSW Government must reform its broken e-cigarette licensing system.

AACS have been working directly with NSW Health, along with other State Health Departments in other jurisdictions, in collaboratively combating the illegal sale of nicotine e-cigarettes and liquid.

Theo Foukkare, CEO of AACS, said the 82 illegal retailers they reported to the government are only the tip of the iceberg.

“We very conservatively estimate there are approximately 200,000 regular illicit e-cigarette consumers in NSW with an average purchase of one $20 device per week amounting to an annual market size of $208 million.”

Foukkare said that by this estimate, the $1 million of illicit e-cigarettes seized this year means they have reduced supply by less than one per cent.

“This is a catastrophic failing from a government who promises to address this issue yet can barely move the needle.”

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Foukkare said that to fix the problem, the NSW Government must increase the number of health inspectors doing compliance checks and fining stores doing the wrong thing, resource the NSW police so they can investigate how these illegal products are entering and being distributed around NSW and arrest the criminals involved.

“The NSW Government must call on the Federal Government to end the prescription model that has created this rampant black market of unregulated products and strictly regulate the market for adult consumers with product standards and age identification requirements.”

Foukkare stated that the illicit e-cigarette black market is slamming lawful and family-owned retailers.

“Law-abiding retailers who don’t stock these illegal products are seeing foot traffic drop as consumers purchase illicit e-cigarettes from criminal enterprises – this results in big drops in associated convenience sales like food and drinks from consumers who would otherwise be visiting their stores.”

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PETROL NEWS

Australia’s dire fuel warning Australia “has a national security problem” when it comes to fuel supply with only 68 days in our fuel reserves, warns a new report.

The report by The Australia Institute states that while the official International Energy Agency (IEA) reserve count is 68 days, given the average daily consumption over the last year, current stocks are only expected to last 32 days.

The IEA guidelines require Australia to hold 90 net import days’ worth of fuel, a number Australia has not met since 2012.

The Australian Government has attempted to bolster the current number by including 21 days of fuel in transit to Australia or onboard ships docked in foreign ports, which The Australia Institute says that the majority of are foreign vessels and that there is no guarantee this fuel would reach Australia in the event of a crisis.

Richie Merzian, Climate and Energy Director at The Australia Institute, said Australia has a national security problem when it comes to transport fuels.

“It’s worrying that Australia is almost entirely reliant on foreign oil for fuel consumption leaving it ill-prepared to deal with international disruptions.

“The federal government failed to deliver its final Liquid Fuel Security Review in 2019 and since than Australia has become more, not less fuel insecure.”

Merzian said the only long-term solution is for Australians to get off oil, which involves increasing fuel efficiency and transitioning to electric vehicles.

The report points at the fact the Federal Government budgeted over $2 billion in support payments to Australia’s two remaining oil refineries while neglecting electric vehicles.

“Australia is an international laggard when it comes to fuel efficiency.

Weak fuel standards and an absence of a national electric vehicle policy leave Australia among the least fuel-efficient fleets in the OECD, and far behind the rest of the world in electric vehicle uptake.”

Michelle Jou appointed as bp’s new CEO for Castrol Mandhir Singh, bp’s executive for Castrol, will retire at the end of September following a 32year career with bp, and more than 20 years with Castrol.

Singh will be succeeded by Michelle Jou, who joined bp as of 11 April, and boasts extensive strategic commercial expertise.

Singh joined Castrol more than 20 years ago in Singapore where he led the integration of bp and Castrol lubricants across the region before becoming the Regional HR Director for Asia Pacific.

He progressed through several leadership roles in strategy and was promoted to Regional Vice President Europe and Africa before stepping in to lead Castrol as Chief Operating Officer in 2015.

On Singh’s departure, he will leave behind a significant legacy, as well as a strong platform for Jou to lead Castrol’s future growth.

Jou has more than 25 years of experience across sales, marketing, supply chain, and executive management in the chemical industry.

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Most recently, she was Global President of the Polycarbonates business unit at Covestro, one of the world’s leading polymer companies, serving the mobility, electronic and electrical industries.

She was the first woman and the first Asian to hold the Global President role and under her leadership, the business unit became the global leader and a trusted partner of choice of many global OEMs. Jou, who is passionate about sustainability, is looking forward to driving Castrol’s sustainability strategy, which sets out aims for 2030 to save waste, reduce carbon, and improve lives.

“At Covestro, I established the first closed loop collaboration with partners in China and introduced the first Carbon Neutral Polycarbonates in the industry into the German market. I’m looking forward to helping drive Castrol’s sustainability agenda through our PATH360 strategy and meeting the evolving needs of our customers,” she said.

Michelle Jou, CEO, Castrol

PETROL NEWS

Santos granted licence for new oil project off Western Australia Energy company Santos and its partner Carnarvon Energy have secured a production licence covering the Dorado oil field, 150 kms north of Port Hedland.

The project will cover the Dorado oil field in the Bedout Sub-Basin in Commonwealth waters, following a recent successful Pavo-1 exploration drill 46 kms east of the Dorado field.

Keith Pitt, Minister for Resources and Water, said it’s great to see a new Australian oil project, discovered by Australian companies, at a time when Australia needs energy security more than ever.

“The original Dorado-1 discovery made in 2018 represented the most significant new oil play offshore Western Australia in the last decade and opened up the Bedout and Beagle sub-basins as a major new oil and gas province for Australia.”

With the success of the recent drill and now the acceptance of the production licence offer, the Dorado project is moving towards a final investment decision and production.

Kevin Gallagher, Managing Director and CEO, Santos, said the production licence was an important step towards a final investment decision on the project.

“Global oil and gas markets are seeing increased volatility and western countries are looking to diversify their supply sources away from Russia which, according to the International Energy Agency, currently produces 18 per cent of the world’s gas and 12 per cent of its oil.

“In this environment, Dorado and Pavo have the potential to bolster Australia’s national energy security while Australian LNG projects help to meet the energy needs of our allies.”

Initially the project, which is a low emissions intensity development, will focus on oil production and reinjection of the associated gas, and later production will recover natural gas for use in Western Australia.

The Federal Government pledges $250m to oil refineries Former Prime Minister Scott Morrison pledged federal government grants of $125 million each to the Ampol refinery in Lytton and the Viva Energy refinery in Geelong.

The grants will be matched by the two refineries, bringing the total of public and private sector investment in the two communities to $500 million.

Morrison said that the investment is aimed at strengthening domestic fuel production and supply for Australia amidst global uncertainty.

“COVID-19, the Russian war in Ukraine, and trade restrictions have disrupted global supply chains and Australia is not immune.

“Oil refineries literally fuel a stronger economy, and these investments will help keep our truckies, miners, defence force and farmers moving across Australia.”

Angus Taylor, Minister for Industry, Energy and Emissions Reduction, said the grants would help create 1250 jobs, safeguard Australia’s fuel security, and ensure cleaner fuel.

“Bringing forward the roll-out of ultra-low sulphur fuel from 2027 to 2024 will deliver significant health benefits for Australians through improved air quality. This is estimated to result in $1.02 billion in avoided health costs.”

The upgrade to Viva Energy’s Geelong refinery will enable the production of Ultra-Low Sulphur Gasoline (ULSG) which improves the quality of petrol produced at the refinery and reduces vehicle emissions.

Scott Wyatt, CEO of Viva Energy, said the company has recently committed to continue refining through to mid-2028 and that they will construct an additional 90ML of diesel storage to improve Victoria’s fuel supply security.

“Our announcement today to substantially upgrade our refinery will improve the quality of petrol produced here in Australia, help reduce vehicle emissions, and improve our processing flexibility. These investments and commitments support local jobs and substantially improve Australia’s energy security as part of the Federal Government’s Fuel Security Package.”

The funding is part of the Government’s fuel security package announced in the 2021-22 Budget.

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If you supply goods or services to, own or work in independent grocery, a convenience store, service station, dairy, corner store or mini-mart, C&I Expo NZ is the one trade event you cannot afford to miss in 2022.

Attendance is FREE and you can register now at candiexpo.co.nz For an Exhibitor Prospectus or to discuss Stand options, please contact: Safa de Valois Group Publisher & Commercial Director safa@c-store.com.au +61 405 517 115

C&I Expo NZ will bring together convenience suppliers and retailers from all banners and brands for two days of education, networking and business building. You will taste, touch and see the very latest in NPD and merchandising services for the convenience industry.

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