Convenience & Carwash July/August 2018 by edge advertising

JULY | AUGUST 2018

Canadaâ&#x20AC;&#x2122;s most read Canadian owned and operated Convenience, Retail Petroleum and Carwash Publication

CASHING IN ON PROTEIN POWER

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WOMEN IN CARWASH PAGE 7

PETROLEUM SPILL CONTROL PAGE 52

CANNABIS INDUSTRY RETAIL

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HEALTHY SNACKS

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IMPULSE SALES

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STORE DESIGN PM41670539

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CONVENIENCE & CARWASH CANADA

Cover Story

Petroleum and Carwash

Industry News

Instore and Nutrition

20 07 16 28 Blueprint to Foodservice Protein Power

Women in Carwash

Publisher’s Message

Carwash Doors Be Ready for Winter

Editor’s Message Be Prepared for Travel Weary Customers

Noise Control Why It Matters

South of the Border Buying Supplies from the U.S.

Petroleum Spill Control Liability Concerns

Cannabis Industry Retail Opportunities for Private Enterprise

General Merchandise Offering a Large Variety of Products

WCSA Report Labour Market Study

Snacks Consumers are Serious About Snacking

NACDA Government Regulations

Store 2018 Conference Retail Council of Canada’s two-day conference

Impulse Sales POP Signage and Displays encourage purchases

Store Design Providing the Best Customer Experience

Forecourt Insight ATG Advancements

What’s New

Upcoming Events August 16, 2018 NL Golf Tournament Clovelly Golf Course, St. John's, NL Hammoud@conveniencestores.ca September 5, 2018 Crime Stoppers Annual Golf Tournament Richmond Hill, ON 416-904-3805

September 13, 2018 Canadian Carwash Association Golf Tournament Blue Springs Golf Club 416-239-0339 office@canadiancarwash.ca October 24, 2018 ACE (Atlantic Convenience Expo) and Retail Convenience Awards Halifax Convention Centre, Halifax, NS Hind@hammoudconsulting.ca www.theaceshow.ca

NACS Show 2018 October 7-10; Las Vegas, NV www.nacsshow.com February 19-21, 2019 WPMA Expo The Mirage Hotel, Las Vegas, NV www.wpma.com/national-convention May 13 – 15, 2019 The Car Wash Show™ 2019 Nashville, Tennessee www.TheCarWashShow.com

JULY/AUGUST

Publisher’s Message PUBLISHER Brenda Jane Johnstone bjjohnstone@convenienceandcarwash.com

As we move into the heat of a new summer season, I am excited to announce that Convenience & Carwash Canada will be hosting the first-ever Women in Carwash conference in our industry. This is to celebrate women across North America who are showing a younger generation that there are no limits to the ability of anyone who chooses a path less traveled. The sky is the limit, especially to women who have been told that the car washing industry is a “man’s business” and that with determination and an eye to the future, anything is possible.

Women in Carwash will bring together industry professionals from across North America to celebrate, learn and forge a plan for the future of carwash. On April 29, 30 and May 1, 2019 at the Marriott on the Falls in beautiful Niagara Falls, Ontario, guests will enjoy great speakers, networking opportunities and, of course, fun. See our ad in this issue for more information and stay tuned for updates coming through our social media outlets. In this issue of Convenience & Carwash Canada, we introduce you to a new section – Women in Carwash, the first in our new series celebrating the wonderful contributions that women are making to the car washing industry. During each issue we will introduce you to women from across North America to share their stories with you. After we post each issue of the magazine online, you’ll be able to check out our new Women in Carwash section of the Convenience & Carwash Canada website. There we will include a short video from each woman that we feature. While the next few months may be your busiest season, it is also be the perfect time to talk to your customers and learn from their shopping habits. Make notes and listen to what they have to say. This fall, when business slows down a bit, it might be the perfect time to do a store redesign. In this issue Duncan McArthur offers insight to consider when tackling redesign projects. If you’re considering upgrading or building a new carwash this year and think that now might not be a good time considering the social and economic environment…..read on. Our South of The Border feature this issue offers information on The Smart Way to Buy Car Wash Supplies from the States. And don’t miss The Importance of Noise Control article that speaks to you about historically loud dryers in the carwash and the advancement in technology. Cannabis legalization – October 17th – who isn’t tuned into this issue? We are offering you a Cannabis Jurisdicational Regulations article to help navigate what the heck is going on! Enjoy this issue and remember that my business is your business and that our open door policy to your feedback is more imporant than ever. As we begin our eleventh – yes 11th year of publishing, I remain grateful to all who have helped us improve each issue and look forward to bringing you new topics for the remainder of 2018.

Brenda Jane Johnstone Publisher

SALES Cody Johnstone Vice President, Sales 416-838-4674 codyj@convenienceandcarwash.com Brenda Jane Johnstone 204-489-4215 bjjohnstone@convenienceandcarwash.com Diana Signorile National Sales Media Solutions 403-607-8133 diana@convenienceandcarwash.com MANAGING EDITOR Angela Altass editor@convenienceandcarwash.com DIGITAL/SOCIAL MEDIA Eva Chambers echambers@convenienceandcarwash.com DESIGN AND PRODUCTION Doug Coates, Edge Advertising Keith House, Ad Production EDITORIAL ADVISORY BOARD Ian Burton, Istobal Scott Findlay, Core-Mark Int’l Kim Hansen, MI Petro David Hoy, Peninsula Co-Op Andrew Klukas, WCSA Dave Watson, The Chamois & Convenience Store Ltd. CONTRIBUTING WRITERS Angela Altass Meline Beach Jeremy Burke Cheryl Dobie John Espley Gaurav Gopinath Josh Hart Howard Hogg Andrew Klukas Duncan McArthur Amy Mastrangelo Alan Nawoj Pete Neil CIRCULATION James Gordon subscriptions@convenienceandcarwash.com WEBSITE www.convenienceandcarwash.com PUBLICATION MAIL AGREEMENT No: 41670539 Return Undeliverable Canadian addresses to: Circulation Department 543 Borebank Street Winnipeg, MB R3N 1E8

CONVENIENCE & CARWASH CANADA

Editor’s Message

Be Prepared For Travel Weary Customers

As I prepare for a road trip to visit family in Eastern Canada this summer, I take time to reflect on the many convenience stores I have stopped at during similar past excursions. These stores of various sizes, some chains and some independents, make life on the road more enjoyable. Snacks are one of the main purchases of any road-weary traveler and this month’s article on healthier snacks highlights that many of us are now seeking better-for-you options. During past trips, I have walked out of a convenience store if they didn’t have what I was looking for, thinking that I would just wait and look for it at the next stop. Make sure your store is offering the healthy snacks that today’s travelers are seeking and also be sure to display them prominently, so they are easy to find and quickly identifiable. Often, the person who has been sat in a car for hours will make a beeline for your washroom before even considering purchasing any items. Make sure your washrooms are clean and presentable or else that customer will exit the store just as quickly as they entered it —without buying anything. I have seen some washrooms that leave nightmares for the rest of the trip! This doesn’t bode well for the cleanliness of the rest of the premises never mind any stops on future trips or recommendations to friends. Remember to greet that tired traveler with a friendly smile and don’t hesitate to recommend a special or promote your fresh-brewed coffee and foodservice offerings. Thank you to all the convenience stores that provide a most welcome respite during road trips and I look forward to seeing some of you during this summer’s journey eastward. Angela Altass Managing Editor

Convenience & Carwash would like to introduce you to our new advertisers. RockyView Industries Inc. – page 17 PetroClear – page 37

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Women in carwash

CONVENIENCE & CARWASH CANADA

WOMEN IN CARWASH International Conference – Niagara Falls Canada APRIL 29–MAY 1, 2019

As recently as a decade ago the presence of women in leadership positions in the carwash industry was negligible. Today, 20 per cent of the leaders in the carwash industry are women. This conference is an opportunity to learn how this change has impacted today’s industry and to promote continuing growth for the future.

Women in Carwash Are Cleaning Up Everyone loves to read inspirational stories about people who are driven, have vision and follow their dreams. This is one of those, and as women around the world are celebrated for their accomplishments

in various industries, we felt it was time to let you meet some accomplished women in the car wash industry and hear their amazing stories. Read on — and you might find yourself surprised at how quickly these dynamic women have accelerated their careers, maintained their car washes and even achieved technical expertise on carwash systems. They are students, mothers, wives, grandmothers who have a unique way of connecting with customers and their staff — join us in celebrating them as Convenience & Carwash Canada bring you this, our new feature every issue, Women in Carwash.

Elizabeth Gubrud-Howe My name is Elizabeth Gubrud-Howe. I live and work in Green Bay, WI, where I run a car wash equipment manufacturing company. I am originally from Portland, OR, where I was raised and went to college, earning a business degree from Portland State University. I love being outdoors and spending time with my family and friends. I’ve had a versatile career – I started in service at Starbucks. Eleven years ago, I moved into industrial manufacturing and have never looked back. Prior to PDQ, I was the national sales manager for Midland Manufacturing based in Skokie, IL, which specializes in equipment for the rail industry. However, starting my career in the service industry is proving to be very helpful as the car wash market is a very customerfocused industry. I have worked for Dover Corporation for 11 years in different roles, and when I got the opportunity to lead the charge at PDQ Manufacturing, I was ecstatic. I knew that PDQ was a great company with a well-

established brand. If I had to advise other women entering the carwashing industry I would tell them that “you must have confidence in your underlying skill set and intuition; if you have these things, you can accomplish anything. A business is a business, no matter the industry, and if you have experience running a service business or manufacturing business, you can succeed in the car wash industry. Also, I think that listening to your customer is a very important trait. The car wash industry is one that everyone can easily relate to since we all have used one in the past. Asking your customers for input on their experience is an important way to improve how you serve them in the future.” My biggest challenge working in this industry is that it is much more sophisticated than most people realize; there is a lot more to it than washing cars. As an example, our car wash has sophisticated software and various components running simultaneously during a wash. The car is being measured with software, as is the car wash equipment, while the most efficient amount of chemical is being dispensed. Luckily, we have an amazing team of engineers and developers at PDQ, along with great customer service and channel partners. We try to tackle these challenges as a team at PDQ. To be a leader in the indus-

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try, you need to approach each challenge with that team mentality. Looking to the future, I am committed to PDQ, and definitely see myself running this company in five years. But I also see PDQ growing and becoming better and different. I anticipate PDQ will exceed industry growth expectations and we will be leading the way in creating a better experience for the customer. And, as I said previously, being surrounded by the best team in the business, I think that is well within our reach.

Jaclyn Kennedy-Dossantos My name is Jaclyn Kennedy-Dossantos and I live in Cambridge, Ontario. I enjoy watching and playing baseball. I’m a clean freak— hence why I work in the car wash industry. I have taken immense pride in my vehicles since the day I got my license and was a young customer at Valet Car Wash years before I started my career there 14 years ago. My background Includes working in the customer service industry from the age of 15, starting out at the fast food restaurant McDonald’s for 10 years and working with them until I completed college. I worked my way up the ladder from being a crew team member, trainer, swing manager to assistant manager. I credit McDonald’s for giving me the opportunity to learn great leadership & management skills. I was approached by a former co-worker to see if I would be interested in working at the Valet Car Wash, which was an entirely different field for me and they were in a dire need of some management team members. I was hired in April 2004 as an assistant manager and was later promoted to store manager. In 2012, I was named Area manager/operations manager, responsible for two sites. I made the switch from the fast food industry to the car wash industry to try something new

and learn new skills. My best moment in the car wash industry occurred when I was recently recognized for the Cambridge WOW Exceptional Customer Service Award for December 2017. I was nominated alongside another team member, my mom Melanie Kennedy, for displaying excellent customer service, always smiling, showing upbeat enthusiasm and being recognized for being the face of the company. Although we were not chosen as the overall winner for 2017, it was a great honor to know that customers recognize the dedication we put into delivering a great car wash experience. My advice to other woman working in the car wash industry is to be confident in knowing what you know. My biggest challenge working in the car wash industry is overcoming the stigma that woman may not know cars as well as men. Fully understanding how a car wash functions helps me feel confident in dealing with any situation. Over the next few years, I would like to move into the operations or administrative side of the business. As the Valet Car Wash brand continues to grow, and with more locations being added, I would like to help oversee new sites and utlize my experience and skills to help other store managers succeed in the car wash industry.

Nancy Schmautz My name is Nancy Schmautz. I am a management consultant specializing in business plans for emerging businesses, feasibility plans and business planning in Western Canada. I live outside Calgary with my husband; enjoy travel, acrylic and watercolor painting, motorcycling and our family time. My career started with Nova Corporation as a surface landman, negotiating pipeline easements and landowner re-

lations. I was the first licensed female landman in Alberta. That morphed into creating and managing our own company, TD Industries for 30 years. TD was an equipment manufacture and service based company specializing in the carwash industry. Starting in the carwash industry was an opportunity back in the 80’s that presented itself to us. The growth of our company to 30 employees and five field offices across western Canada and acquiring top shelf chemical and carwash equipment manufactures was a journey that was rewarding and challenging. There were many proud moments along the way, President of the Western Chapter of the Canadian Carwash Association, Director on the CCA Board, Finalist in Entrepreneur of the Year – Prairies, Top Distributor of the Year – Turtle Wax, Ted Snyder Award, 2005, CCA Association and many more highs. The top moments were our high growth, doubling revenues each year, gaining corporate accounts, engineering improvement in our manufacturing process and building a new shop for our business. There are lots of opportunities for women in this industry. Whether it is in management, sales or operations, nothing is beyond your reach. There are education opportunities or learning by mentoring and immersion. It is a knowledge based industry based on strong relationships. Your knowledge is fully transferable to other companies and remember; that you own it. My reputation was one of the most important strengths that I had along the way. Along my journey, I created the Western Chapter of the CCA, sat on the CCA board of directors, sat on dozens of think tank sessions with companies and went back to university at 40 years old. You have to create the opportunities, then business and people attract to you. I encourage all women, at whatever age to consider the carwash suppliers, the chemical companies, the major retail oil companies, or start your own wash. It’s all within your reach.

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DON'T MISS OUT–Register for the conference early! FOUR DYNAMIC EVENT SPEAKERS! Patty Willett My name is Patty Willett and I am a mother of four and grandmother of 11. Family is everything to me–this includes the work family and customers I have come to know over the three years that I have been in the car wash business. I have worked at many different jobs throughout my lifetime, none of which were any where near as satisfying and fun as working with Valet Car Wash. When I started, I never really thought about being in the car wash industry until my current general manager emailed me about the position. Fortunately, he saw something in me that I didn’t and I thank him immensely for the opportunity that he has given me. Valet Car Wash is an amazing company to work for, there is so much support from all the other managers. My best moments in my role is working with my amazing staff and great customers. It is nice to hear my customers give positive comments about the wash and the friendly helpful staff that I have. I would advise other women who are considering working in the car wash industry that this is a great business. Especially if they enjoy the customer interaction as well as all there is to learn about the equipment and what it takes to run this business; we are learning something everyday. I would not change a thing about my time in the industry other than maybe knowing a bit more about all the equipment and how it works, but I am learning about each piece of equipment all the time. The biggest challenge I’ve encountered is that I had to overcome my fear of the carwash, something that stems from my childhood. When I started I did not like going through the wash. However, over time, I have overcome that fear and help customers with their fear of going through by assuring them that it is safe. Other challenges include knowing what continued on page 54

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WCSA Report

CONVENIENCE &&CARWASH 11 CONVENIENCE CARWASHCANADA CANADA 11

Our Industry. Our Future. Labour Market Study Phase 2 is Complete In recent years, convenience store (c-store) employers from across the industry have reported experiencing labour shortages that are negatively impacting their businesses. The Western Convenience Stores Association (WCSA), through the five phases of the Sector Labour Market Partnerships (SLMP) Program, is aiming to better understand and respond to these shortages. The WCSA completed Phase 1 of the Program in March 2017. “Consultations with a project steering committee, employers, and other stakeholders during this phase revealed that recruiting and retaining appropriately skilled employees at the wage rate employers could afford was the most common labour market challenge facing the industry,” says Andrew Klukas, WCSA President. Phase 2 of this program began in late 2017. Its purpose was to uncover additional insights into the issues affecting the labour market in the industry, to identify the issues underlying the labour market challenges the industry is facing, and to present potential options to address them. This project included surveys of some 200 employers and well over 400 employees, along with 25 one-on-one interviews. The second phase of this project is now complete and you can view the report at www.thewcsa.com. The report includes recommendations in relation to: • Youth engagement and retention • Underrepresented populations • Industry-wide recruitment support that responds to the diverse needs of different store types and locations. • Options to make the Temporary Foreign Worker Program more accessible • Improving the employee value proposition • Strategies to enhance employee

engagement and productivity. Impact Assessment (LMIA) application • Understanding of skill gaps and deto the federal government. This involves velopment of training strategies that posting the job(s) on several sites respond to these gaps sites for at least four weeks prior to • Re-branding employment in the submitting the LMIA application to industry demonstrate that underrepresented • Awareness/knowledge around the groups of Canadians were pursued and potential benefits of automation. considered for the position (e.g. disabled “I would like to extend my thanks to people, aboriginals, youth). the committee members and especially A job posting can receive hundreds of David Charron at Suncor for the energy applications from within and outside he has put into this project,” says Klukas. Canada and these need to be screened The next step is to secure funding to to ensure the applicant is serious about develop a comprehensive wanting the job (and not labour market strategy simply applying in order WCSA has been to address issues and recto meet EI requirements). working on ways ommendations identified The employer must also to make Canada’s to date. Phase 4 (likely in submit a detailed list of Temporary Foreign 2019 - 2020) will involve Canadians who applied Workers Program implementation of identifor the position; the more accessible to the fied solutions. number of Canadians inindustry after federal Meanwhile, the WCSA terviewed for the position, government changes has been working on ways and detailed explanain 2014 rendered it to make Canada’s Tempotions for why the Canadibasically useless to the rary Foreign Workers Proan candidates considered industry. gram more accessible to were not hired. Due to the industry after federal government backlogs government changes in 2014 rendered it takes six to eight months to learn if it basically useless to the industry. How- your application has been approved. ever, thanks to recent developments discussed below, employers can access it The list goes on… again. These are discussed below. The expedited program:

Expedited Access to Temporary Foreign Workers

The good news is that a new program stream is becoming available and, Changes in 2014 to the Federal thanks to the WCSA, the C-store Temporary Foreign Worker Program industry stands to be first in line to rendered that program virtually useless access it. to convenience store owners. However, The Canadian government has coma new program promised to make the mitted to expediting the immigration program accessible and cost-effective of 20,000 workers from the Solomon for convenience store owners. Islands due to the impact of rising sea levels on their habitable land. Under this The ‘normal’ program: program there is a one month processThe existing process for hiring foreign ing time once the LMIA application has workers is extremely labour intensive been submitted. and time consuming for employers. However, there are other benefits to First, the Canadian employer must this program: submit a qualifying Labour Market • Solomon Islanders are trained for up

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CONVENIENCE & CARWASH CANADA

• •

•

• •

to three (3) months by the Canadian government (CITREC) and the WCSA is arranging to include training specific to the convenience & gas industry (such as age verification) Solomon Islanders’ first language is English All Solomon Islands workers will be security screened (INTERPOL and CSIS) prior to being able to come to Canada (this is at government's expense of approximately $2,000 per individual) Your job is posted at 10 sites for the required periods to cover all of Service Canada’s requirements, and all applicants are screened for you The ads are kept ‘live’ for you in case you want to hire another foreign worker later Remote online interviews can be arranged with foreign applicants on request

• A summary sheet is prepared for the required interview between the employer and Service Canada and, if requested, presence of personal support for the employer during the interview • Arrangement of all immigration matters (work visas, ETA's, travel) • Once approved, arrangements are made to pick up the worker at the airport and set up their Social Insurance Number and banking • We are also exploring securing of affordable housing • If it turns out the employee is not a good fit for the position, efforts are made to find them another job through an LMIA from another employer One of the greatest benefits however is that LMIA applications are specific to the employer and the worker is

named under each LMIA. Since they are valid for two years, the program can provide enhanced employment stability during at least the first the two-years of employment. Furthermore, the cost of accessing this program is expected to be roughly in line with the cost of hiring domestic workers. “Given the high turnover rate in the industry, and the fact that it costs employers between $2,000 and $4,000 to successfully hire an employee, this program can’t be beat.”

For further information or if you are interested in submitting and LMIA, please contact Andrew Klukas at Andrew@conveniencestores.ca.

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Canada. During a time of industry disruption, this year’s program will focus on Navigating a Changing Channel. The 2018 Summit will provide relevant research, inspiring keynotes and networking opportunities that will offer insight into future opportunities, challenges and trends. Once you arrive in Halifax on Tuesday September the 25th, join us for a night

The National Convenience Stores Distributors Association (NACDA) have worked jointly with the Canadian Convenience Stores Association (CCSA) over the past year to demonstrate to the federal government the negative impact legislating plain packaging of tobacco Scott Stratten is the products will have on Canadians. The president of UnMarketing inconsistency of tobacco regulation and and ran one of the most the imminent legalization of marijuana successful viral video have been noted. A recent public opinion agencies in the world for poll shows that nearly nine out of 10 nearly a decade before solely focusing on Canadians support applying the incoming speaking at events. As the headliner at branding and packaging regulations to the NACS State of the Industry Summit both tobacco and marijuana cigarettes. held in April, Scott received rave reviews The survey indicates that 87 per cent south of the border. The entire event was of Canadians want the same branded summed with a quote from Scott: "If you package regulations that are currently ap- want to improve your bottom line, you plied to tobacco cigarettes to be applied need to improve your front line.” to marijuana cigarettes. Additionally, the A tweet from the event: “Scott Stratten poll demonstrated that Canadians are not just killing it at the NACS Summit. Outin agreement with the government’s plain standing, funny, insightful and thoughtpackaging policy. Nearly two thirds (64 per provoking.” cent) of the Canadian public reject brandIn this closing keynote, The Age Of ing being taken away through an imposi- Disruption: Everything Has Changed and tion of a generic package for either tobac- Nothing Is Different, Scott will walk atco or marijuana cigarettes. Five times as tendees through what is real and what are many Canadians (40 per cent) believe the generic package could most likely contribute to counterfeiting of tobacco and marijuana cigarettes Join us in Anne Kothawala, NACDA President, states “Canadians understand that consistently and equally applying the current branding regime on these two products is not the same as imposing a generic package for all. As the legal distributors and September 25 - 27, 2018 sellers of these products, we and millions of Canadian consumers are deeply conSet along Halifax’s harbourfront, the 2018 National cerned that imposing this type of generic Convenience Industry Summit will bring together brand regimen will fuel and accelerate the retailers, distributors and manufacturers from across Canada. The 2018 Summit will provide growth of the illicit, criminal market.”

out on the town to kick things off. Meet with industry friends and network into the night. The program kicks into high gear the next morning with a full day of sessions, trade exchange and close off with our gala awards event. On the final half-day of programming, our keynote speakers will leave you with some valuable insights to take back to the office.

Meet Closing Keynote – Scott Stratten

Halifax, Nova Scotia

Join Us on Halifax’s Harbourfront: Summit 2018

The 2018 Summit will take place in Halifax, Nova Scotia at the Westin Nova Scotian September 25 to 27. Set along Halifax’s harbourfront, the 2018 National Convenience Industry Summit will bring together retailers, distributors and manufacturers from across

only smoke screens in the business world today. Audiences will walk away understanding the following: • The Millennial Myth: The younger generation may create new challenges for business, but not in the way people are saying. • Social Media Snake Oil: Why social media is a poor sales and marketing tool, what it’s really meant for, and how understanding this will lead to the best success for your company online. • The Digital Decision: Your market today is forming buying decisions well before coming to you. Marketing today means getting in front of them when they’re making these important choices. Check our website regularly at nacda.ca to see more speaker profiles. Register early as this is not an event to be missed.

SpeakerS

Alex Chausovsky, Bob Espey, ITR Economics Parkland Fuel Corp.

Scott Stratten, UnMarketing

Carman Allison, Neilsen

relevant research, inspiring keynotes and networking opportunities that will offer insight into future opportunities, challenges and trends.

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By Jeremy Burke and Gaurav Gopinath

Cannabis Industry Retail: Opportunities for Private Enterprise Now that the federal Cannabis Act has received Royal Assent, the path to legalization (on October 17, 2018) is clear. Unfortunately, as in other heavily-regulated industries, there will be significant differences across the provinces and territories in how cannabis may be distributed and sold. The Cannabis Act imposes a common framework across Canada (including strict rules about the retail advertising, labelling and packaging of cannabis products), but the provinces will retain authority over whether to permit private retail sales, online sales and a number of other matters. Unfortunately for business owners interested in selling cannabis or cannabis derivatives, certain provinces are pursuing a public retail model that permits the sale of controlled substances only by government-owned retailers. These include Ontario, Quebec, New Brunswick, Nova Scotia, PEI and possibly in Nunavut as well. The other provinces and territories are pursuing either hybrid public/private retail models or, in the case of Manitoba and Saskatchewan, private-only retail models. For retail storeowners wishing to sell cannabis paraphernalia, none of the provincial statutes currently prohibit the sale of cannabis paraphernalia (except, in certain provinces, to minors) in, for example, convenience stores â&#x20AC;&#x201C; though it bears noting that some provinces have not finalized their legislation. Further details on each jurisdictionâ&#x20AC;&#x2122;s retail model follow.

As in other heavilyregulated industries, there will be significant differences across the provinces and territories in how cannabis may be distributed and sold.

Alberta

Saskatchewan

Alberta will pursue a mixed public/private model. The Alberta Gaming and Liquor Commission (AGLC) will purchase from licensed producers and distribute to both licensed private retail outlets, as well as its own stores. The AGLC expects to issue 250 licenses province-wide within the first year of legalization. Licensed retailers will sell cannabis and related paraphernalia, but will not be allowed to sell alcohol, tobacco or pharmaceutical products. Online sales will occur through a single AGLCoperated website.

Saskatchewan has announced a fully private retail (and distribution) model, with retail licensing to be overseen by the Saskatchewan Liquor and Gaming Authority (SLGA). The SLGA has issued 51 retail licenses so far. There will be no government retail or distribution operations. Cannabis retailers will be required to establish a standalone storefront operation, with the option to also operate an online store. Licensed retailers will be allowed to sell paraphernalia.

British Columbia

Manitoba has announced that it will have a private retail model. Licensing will be overseen by the Liquor, Gaming and Cannabis Authority of Manitoba (LGCA). There is no announced cap on the number of retail licenses that may be issued, but only four retailers have been named at this time. The Government of Manitoba will enact legislation allowing municipalities to hold a plebiscite (direct vote) on whether to allow cannabis sales, effectively giving communities a veto on recreational cannabis sales. It is unclear at this time whether licensed retailers will be permitted to sell paraphernalia.

British Columbia has announced a mixed public/ private retail model. The Liquor Distribution Branch (LDB) will control wholesale distribution to private stores, government-owned retail outlets, and online sales. The Liquor Control and Licensing Branch (LCLB) will handle licensing of private stores. There will be no cap on the number of stores, but private retailers will need to have municipal government approval. The government has indicated that though licensed retailers will likely have the right to sell cannabis paraphernalia they will likely not be permitted to sell other general convenience store products.

Manitoba

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Ontario

Retail sales will be handled solely by the government’s Ontario Cannabis Retail Corporation (OCRC), a subsidiary of the Liquor Control Board of Ontario (LCBO). The OCRC expects to have an initial 40 retail outlets at legalization, and 150 outlets by 2020. There will no private retailers. The OCRC has also signed an agreement with Shopify to build its online store. OCRC’s stores will sell cannabis paraphernalia and accessories. Quebec

Quebec will have a public retail model. The Société Québécoise du Cannabis (SQC) is expected to have 20 retail locations operating by legalization and will operate an online store. Private retail will not be permitted. The SQC has signed an agreement with licensed producer Hydropothecary, under which Hydropothecary is expected to supply the SQC with 20,000 kilograms in the first year of legalization. SQC outlets will sell cannabis paraphernalia and accessories. New Brunswick

New Brunswick will have a public retail model. The Cannabis Management Corporation (CMC) will control and oversee the retail sale of recreational cannabis products. All stores will be managed by CannabisNB, a new subsidiary of the New Brunswick Liquor Corporation, as will online sales. Private sales will not be permitted. CannabisNB stores will also sell paraphernalia and accessories. Nova Scotia

The Nova Scotia Liquor Corporation (NSLC) will control all cannabis sales in the province. Private retailers will be prohibited. At this time, the NSLC has announced that 12 retail outlets are expected to open by fall 2018. The NSLC will also operate an online cannabis store. The government has stated that paraphernalia sales will not occur in NSLC outlets. Newfoundland and Labrador

Newfoundland and Labrador will pursue a mixed public/private model. The Newfoundland Liquor Corporation (NLC) will control licensing and distribution. At this time, the NLC has announced

24 government retail outlets across the province. The NLC will also establish an online store, which will be the only online retailer permitted in the province unless the government’s Cabinet and the NLC grant special approval to a licensed private retailer. It is unclear whether the NLC outlets will sell paraphernalia, although private retailers will be permitted to do so. Prince Edward Island

The Prince Edward Island Cannabis Management Corporation (CMC) will oversee the operation of four cannabis retail locations and an online store in the province. Private retail operations will not be permitted. It is unclear whether paraphernalia sales will occur in CMC outlets. Northwest Territories

Northwest Territories will pursue a hybrid private/ public retail model, with the public liquor retailers commencing cannabis sales operations immediately following legalization. Licences may also be issued to private cannabis retailers, although none have been so far. The government will also operate an online store. It is not clear whether authorized retailers will be permitted to sell cannabis paraphernalia. Nunavut

Nunavut's proposed cannabis legislation will allow online sales by the government immediately, but brick-and-mortar retail operations will only be implemented following community consultation. The territory’s Liquor Commission will oversee cannabis sales. It’s unclear whether private retailers will be permitted. No information on paraphernalia sales has been released. Yukon

Yukon has announced that it will initially pursue a public retail model, with sales occurring through an online store and physical retail outlets operated by Yukon Liquor Corporation (YLC). The YLC will also control importing and distribution of cannabis. However, there is currently draft legislation (the Cannabis Control and Regulation Act) that prescribes a licensing process for private retailers. There is currently no information on whether paraphernalia sales will be permitted.

Jeremy Burke is a business lawyer and partner at Aird & Berlis LLP in Toronto. His corporate and commercial practice spans various areas, including business ownership arrangements, commercial and shareholder agreements, regulatory compliance, corporate structuring and ongoing governance, as well as business mergers, acquisitions and dispositions. As a member of the firm’s Cannabis Group, Jeremy is actively preparing clients for the opening of the recreational market in Canada. jburke@airdberlis.com T 416.865.4644

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By Meline Beach

Protein Power Road trippers, commuters, students, and on-the-clock workers can fulfill their craving for protein-rich foods at their local convenience store. I’m not talking about the kind of protein you shake and sip or peel back the wrapper, but the fast, freshly prepared hot protein that you bite-your-teeth-into kind. More c-stores are gaining ground in clude Anytime Food Mart in Hamilton, the ready-to-eat (RTE)/made-to-order Ontario and A&R Laundromat & Con(MTO) foodservice market by offering fectionary in Air Ronge, Saskatchewan. their own food items prepared on site – According to William Culpepper, vice further blurring the boundaries between president of Marketing at Chester’s Intraditional c-stores, grocery stores, and ternational, their most popular proteinquick serve restaurants (QSRs). Their based products are fried chicken tenspeedy service, convenient location ders and fried bone-in chicken. Fresh meat volume and targeted selection sales, in particular, are gives them a competitive According to forecasted to grow 7.5 advantage over others. Euromonitor, volume In today’s fast-paced sales of fresh meat and per cent in Canada from society, many individu- value sales of processed 2017-2022. “The demand for fried als, and millennials in meat in Canada have experienced a growth chicken products is on particular, are less likely rate of 9.6 per cent the rise,” says Culpepper to sit down for full meals and 12.7 per cent who cites breaded chickand are more inclined respectively from en sandwiches, chicken to snack throughout the 2012-2017. nuggets and chicken day. Mintel's Convenience strips as the fastest growStore Foodservice US 2017 report states that this generation, along ing menu items in C&G foodservice in with males (who are core c-store cus- the US. “As a result, we’re exploring varitomers in general) have positive views ous product extensions like our Honey of purchasing MTO foods at a c-store. Stung Boneless Wings, BBQ Chicken Protein-rich foods such as hot dogs, Sandwiches, and Red Hot Sauced Tensausages, and chicken products, includ- ders.” A number of Hasty Markets in Ontaring nuggets, wings and strips, are quite popular as affordable meals and savoury io have been selling protein-based foodservice items for over a decade. Tagged snacks across the generations. Chester’s International, as one of the “more than just a convenience store” on largest store-in-store foodservice fran- their corporate website, these indepenchise concepts to the C&G channel, has dently owned and operated franchises over 1,200 locations across North Amer- offer shawarma, roast chicken, and ica, 110 of which are in Canada, and in- chicken wings – with shawarma being

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the most popular. According to Yvonne Farah, vice president and general manager for Hasty Market Canada, the franchise is always looking to expand its foodservice category. Mike Habib, owner/operator of Jubilee Junction in Halifax, Nova Scotia, has been offering a complete foodservice menu at his convenience store for over four years. His protein-based foodservice items are fried, grilled and freshly prepared on-site – everything from classic to gourmet, such as chicken fingers and wings, pizzas, chicken breast burgers and 100 per cent homemade beef burgers, as well as fresh deli sandwiches – with chicken fingers being the most popular of the bunch. “Once you have a taste for something, you stick to it,” says Habib about his foodservice program and his loyal customers. While many customers call in advance to place their orders, others make impulse purchases based on what they see and smell and don’t mind waiting the seven to 10 minutes it takes to prepare their meal. “Seeing and smelling a fresh baked pizza come out of the oven definitely encourages impulse purchases,” adds Habib. “A proprietary foodservice program has good dollar value comparable to

tobacco sales,” says Terry Frei, category manager, Western Canada Foodservice for Mac’s/Circle K. Across his 13-year career in the C&G industry, Frei has seen extensive growth in foodservice programs. From basic beverages and roller grills to sophisticated equipment that allows the owner/operator to quickly prepare a wide range of quality hot proteinbased foodservice items on the spot. While it may be easier to partner with a brand foodservice provider, c-store owners with their own foodservice program have the potential to turn a profit at the two-year mark once initial investments are covered. Junction Jubilee is a prime example. With a full-service kitchen in his c-store, Habib believes his foodservice program has the potential to surpass his traditional c-store product sales.

Whether you work with a brand or go independent with your foodservice program, Culpepper stresses the importance of partnering with a provider who can deliver a food product that is high in demand and has broad appeal, but also with one who can provide great on-going support to drive traffic and increase profitability. Mac's/Circle-K has tuned in to foodservice profit potential since the early 1990s with their introduction of hot dogs and corn dogs. “A roller grill is a great entry point into foodservice for any c-store,” says Frei. Sixty-five per cent of Mac's/Circle-K locations in Western Canada have a roller grill program. “It’s fairly inexpensive, easy to operate and recognizable for the customer.” Since then, Mac's/Circle-K has

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Women in carwash

WOMEN IN CARWASH International Conference – Niagara Falls Canada APRIL 29–MAY 1, 2019

In the ever changing and competitive landscape of the carwash industry, women are quickly becoming an integral part of successful carwash organizations. Their impact and leadership can be found in many facets of a carwash organization – from ownership to site management. Convenience & Carwash Canada magazine will recognize and celebrate these women by hosting the first ever Women in Carwash Conference.

FOUR DYNAMIC EVENT SPEAKERS! Dr. Peter Hansen: The Joy of Stress Nancy Schmautz: DISC Personality Testing Workshop Azadeh Yaraghi: Your “ONE IDEA”– The Key to Your Success Gary McDougall: Constructive Conflict Management–Dealing with Difficult Clients Strategic Conflict Management

FOR EVENT DETAILS INCLUDING SPONSORSHIP, PLEASE CONTACT: Brenda Jane Johnstone phone: 204-489-4215 email: bjjohnstone@convenienceandcarwash.com Andrew Klukas phone: 778-772-3057 email: andrew_klukas@shaw.ca

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developed its foodservice program into three segments: baked goods featuring donuts; roller grill which includes hot dogs, corn dogs, taquitos, angus dogs and proprietary signature dogs on a self-serve and full serve basis; and hot foods which includes pizzas, sausage rolls, chicken pieces, chicken fingers, hot wings, kabobs and burgers. This year, two stores within the Mac's/ Circle-K banner are piloting pizzas and wings – sauced, rubbed and made instore. Based on its success south of the border, Frei expects the pilot to do well with more stores following suit. Frei adds: “Going forward, customers can expect to see more on-site quality food preparation. That’s where we see c-stores progressing.” Core-Mark has plans to roll out a turnkey, proprietary fresh chicken program called Bird Shack in late 2018 after achieving positive results in the US last year. Core-Mark’s Bird Shack is a fresh approach to a fresh fried chicken concept. According to Core-Mark International’s Director of Fresh and Foodservice Marc Rex, Bird Shack is the best of a brand without the burden. Buy what you need, and use Bird Shack resources as you need them. Perfect for owner-operators seeking flexible ways to deliver a craveable fried chicken experience, Bird Shack lets you grow a branded business on your terms. Rex adds: “We build and foster positive relationships with key suppliers and reduce the risk for store owner-operators by providing quality products.” Besides influences from the US, a number of factors are considered when deciding if a c-store is set up for foodservice success. These deciding factors include location, current sales and economic features in the area. According to Frei, c-stores located near schools, sports complexes, off a highway or in a rural area have greater opportunity for foodservice success. Habib couldn’t agree more. Junction Jubilee is near Dalhousie University and

is pleased to feed hungry students who, for an average of $5-$8, can enjoy a hot protein-based item with a drink. Despite nearby QSRs, Junction Jubilee has gained its share of the competitive foodservice market and even delivers to its customers. Habib believes you have to try new things in order to stay relevant.

Quality foods conveniently prepared instore and delivery services are just two examples that contribute to his success. As the owner of the building he operates his c-store, Habib has the freedom to make these decisions and benefit from its profits, compared to certain rules and restrictions associated with renting.

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“The one thing I would want to stress is that you don’t want to make the investment in foodservice if you’re renting the business,” says Habib, who is looking to expand his foodservice offering based on its growth and success over the years. “You want to own it and keep the profits.”

With investments in quality foodservice programs that include a variety of protein-based items, catered to the likes of target customers, and the industry trend that we’re on, there is little doubt that c-stores can be selling just as good, if not better, foodservice items than QSRs.

Key highlights

1. Location, location, location. If you’re located near a school or sports complex, close to a construction or industrial site, in a rural area or off the highway, you have prime advantage of a target customer base who may support a c-store foodservice program. 2. Deliver a select variety of popular protein-based products that support the needs of your target customer base and ensure their availability and quality at all times. 3. Own versus rent. There’s a cost associated with a foodservice program – be it investments in equipment, product and storage. Various rules, regulations and profit sharing restrictions may be associated with renting a business versus owning it. 4. A high-quality foodservice operation provides a great opportunity for c-store owner-operators to drive additional traffic to their location and increase profitability. It is important to find the right partner to deliver a food product that is high in demand and has broad appeal but can also provide great on-going support in terms of marketing, training, and follow-up visits to help B:8.375” ensure success. T:8.125”

S:7.875” Meline Beach is a Toronto-based freelance writer.

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A FOCUS ON GENERAL MERCHANDISE It should be no surprise that the term “general merchandise” can be used to describe a large variety of products and categories. Equally large, however, is the opportunity general merchandise can provide a store if properly stocked, maintained and marketed.

Like all retail, the first factor in determining the success of a product is ensuring there’s a demand. One of the best, and safest, ways to do that is to focus on trending products. Data is your friend – when it shows there’s an opportunity, there’s an opportunity. We’ve been keeping an eye on three specific areas of general merchandise that show significant promise to retailers: mobile accessories, Internetthemed toys and marijuana accessories. Here’s why. Mobile accessories are a no brainer. According to the CRTC, Communications Monitoring Report, 2017, over 80 per cent of Canadians have a mobile phone – many of whom have experienced that feeling of low-battery-panic and can attest to the motivation to purchase the first charger you see.

But over the past year or so, we’ve noticed a micro-trend within the category. Consumers are increasingly looking at bin products as lower quality – and unfit for their stylish and expensive mobile device. Instead, consumers have developed the belief that carded stock is a better choice and are willing to pay more for the perceived benefit. The type of connection is as important as its packaging. While Apple’s Lightning cable represented 69 per cent of overall unit volume over the last 12 months ending May’18, USB C unit sales grew 264 per cent and now make up 10 per cent of the overall market. The Micro USB format is showing decline, down 14 per cent over the same period, but micro USB still represents 15 per cent of unit sales in the category. (Source: NPD Group Retail Tracking Service).

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and acting on trends like this can perfectly position your store to take advantage of the market. There’s more to it than just cables and chargers, of course. Wireless charging is up-and-coming, and consumers are going to expect to find affordable options just about everywhere they look. It’s not just wireless charging, either – wireless headphones have become a very big deal. In fact, Bluetooth headphones outsold wired headphones in the first quarter of 2018 (Source: NPD Group Retail Tracking Service). While consumers don’t want to be attached to their headphones, they are increasingly wanting to attach their phone to their car. Vehicle mounts and phone holders are on the rise with consumers and showing promise for retailers. While most of us may still prefer coming home and turning on the television, children have completely different viewing habits: they’re increasingly watching YouTube. This form of entertainment is influencing consumer habits, with new toys based on YouTube content being released at an increasingly fast pace. This trend is only going to grow and represents an opportunity to appeal to younger customers and families in a unique way. Kids aren’t the only ones pleased by the right piece of general merchandise. As our society becomes increasingly busy, adults are looking for ways to help find balance and release. One product that’s growing in popularity is the relaxation ball, which is becoming a desktop staple. Manufacturers are producing them in a variety of different looks and feels to help ensure there’s an option for everyone. The latest upcoming trend is a big one: marijuana accessories. With the official legalization date of October 17th recently announced, retailers should start preparing for a whole new, untapped opportunity with products ranging from ashtrays and rolling papers to stash tins and grinders. The opportunity, however, does come

with a challenge: the perception of your store. As marijuana becomes more and more de-stigmatized it may not matter, but at least at the outset it’s worth working to understand your customers and how they feel about the change in law and availability. Some retailers have chosen to position these products behind the desk, while others have them at the cash desk or on the floor. Finding the right trends, and then stocking your store with the products is only half the battle. Things move fast now – faster than ever. What’s working today, might not work tomorrow. That’s why it’s integral that you rotate your inventory, and ensure you have the newest, best products. That’s what your customers want, after all. If you take one thing away from this article, it’s this: when it comes to general merchandise, a general approach won’t work. You need to be plugged in and aware of the data. You need to know the trends and act fast. You need to be nimble and decisive. General merchandise offers a clear opportunity, and with a focused and strategic approach, you can make the most of it.

Insight provided by Bob Duszynski, VP Brand Management at Curve Distribution. Bob Duszynski has over 20 years of retail experience and in his role with Curve he’s able to observe and predict trends in the general merchandise category. His knowledge has helped partner with various well-known brands, contributing to increasing Curve’s growth. Bob can be reached at 403-255-5325 x 202 or at bob@ curvedistribution.com

JULY/AUGUST

By Angela Altass

GETTING SERIOUS ABOUT SNACKS “They also want to increase their protein intake, or detox, or increase their energy. They are looking for multi-fuel products with clean ingredients that will better their bodies while tasting great.”

Canadian consumers are serious about snacks, looking for more than just a quick treat in the middle of a busy day. With the upending of the traditional three meals a day routine, the shifting of wellness and culinary trends and a growing accessibility to food, the act of snacking has taken on a new role in people’s daily lives, says Neysa Davies, senior marketing insights manager, Tree of Life Canada. “This modern era of snackified eating drives our food choices and is reflected in our grocery lists,” says Davies. Consumers have been looking for functional foods for quite some time, says Kristin Valles, national category manager, Core-Mark International. “They are not simply looking to satisfy a craving,” says Valles. “They also want to increase their protein intake, or detox, or increase their energy. They are looking for multi-fuel products with clean ingredients that will better their bodies while tasting great.” Consumers are very aware of what they are put-

ting into their bodies, says Valles. “Options like whole nuts, dried fruits, and organic products are snacking opportunities they are looking for,” says Valles. “Cross merchandising is important. Having the right mix of products for your demographic between flavour profiles and attributes, such as high protein or antioxidant, is important. While some customers might be simply looking for a pick-me-up, others may be looking for their pre-gym snack or meal replacement option. Having secondary displays near beverages, like coffee, or near the cooler doors, is important to capitalize on impulsivity.” Core-Mark’s Under Counter program has a variety of healthy bar and jerky options in addition to candy, gum and chocolate on it to ensure that customers see the product and may decide to add it to their basket of goods for immediate or future consumption, says Valles. “Power Bar, Pure Protein and Vector were some of the original big brand protein bars,” notes Valles.

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“Over the last few years KIND and Clif have truly ignited the category, as seen with the recent introduction of Kashi JOI bars. Customers are reaching less for the bag of chips and more for the bag of nuts or trail mix.” All types of consumers frequent convenience stores and all have different needs and requirements, says Valles. “It is no longer just the health-conscious gym frequenter reaching for a protein bar or shake,” she notes. “It’s the mom-on-the-go, the construction worker, or the individuals adjusting their diets. Convenience stores continue to have a need to satisfy an array of customers.” The trend towards sweet and salty has been a key factor in snack flavours, with ethnic profiles also coming more into play, says Valles. “The rise of popcorn in mixed formats with pretzels and chocolate, and the increase in kettle corn and Chicago mix certainly reinforces this trend,” comments Valles. “Many confectionery companies are creating mixed products featuring their legacy brands with nuts and pretzels to capitalize on this trend. Ultimately, the customer wants to have a snacking experience that leaves them feeling full, however, that doesn’t mean we don’t still have our indulgent moments, reaching for a chocolate bar, cookie or bag of chips.” Jerky products are another area of growth with consumers looking for high protein snacks, says Valles. “The flavour profiles and product textures have been adjusted to suit the pallet of both males and females,” notes Valles. “Recently, the introduction of Coconut Jerky came into play to allow those who may not consume or always want to consume meat products to have an alternate option available.” Vegan is a big trend right now, says Janice Harada, marketing manager, MadeGood Foods, known for allergy

vegetarian for various reasons, says Eric Jackalin, business development manager, Western Canada, Marsham International Food Brokers. “There are certain trends and we are all seeing them and taking note of them,” says Jackalin. “The whole health and lifestyle market for bars has been growing over 30 per cent annually for friendly snacks that contain a serving the past five years, which is incredible. of vegetables in each snack. MadeGood We’re very fortunate at Marsham that we recently introduced two new products: represent a lot of market leading natuSoft Baked Mini Cookies and Crispy ral organic, good-for-you products. Clif Light Granola. has launched a new nut butter filled bar “People are really interested in vegand we’re in the process of introducing etable protein either because of values whey protein bars from Clif that have 14 or just to be that little bit healthier,” says grams of protein and only five grams of Harada. “Even people who still eat meat sugar. We just launched three flavours in are trying to incorporate more vegCanada: peanut butter chocolate, salted etables and vegetable protein into their caramel cashew, and coconut almond diets.” chocolate.” Consumers are still looking for taste, Kettle has released potato chips says Harada, noting that cooked in avocado oil, more people are snackwhich Jackalin says are resPeople look at how ing throughout the day onating well with consummuch sugar, fat and instead of sitting down to ers because they are lower how many calories three big meals. in fat and “taste amazing.” a product has. I “Everybody wants to be Marsham also launched a think that in the healthy but nobody is willnew beverage, CoCo5, this past in convenience ing to sacrifice on taste,” year, which is a natural costores, there’s been says Harada. “Sometimes conut-based product. a heavy emphasis on people don’t know how to Natural, organic prodconfectionery, candy, interpret the nutritional ucts typically produce a and salty snacks but facts table but they know higher return for the remore people are if it’s a simple list of ingretailer, notes Jackalin. looking for something dients. People look at how “The most progressive a bit healthier. much sugar, fat and how retailers are stocking these many calories a product products and are always on has. I think that in the the lookout for what’s new past in convenience stores, there’s been a and what’s available in this category beheavy emphasis on confectionery, candy, cause they can charge a little bit more and salty snacks but more people are and make a bit higher margin as the conlooking for something a bit healthier. sumer is willing to pay more for a prodHaving a better-for-you section will atuct that is natural, organic, gluten-free tract some attention in a convenience and non-GMO,” states Jackalin. “So, it’s store where there aren’t as many opin the retailer’s best interest, plus their tions for customers who are looking for customers are looking for these prodhealthier grab and go products. There’s ucts. More and more, people are reading hardly anything in convenience that ingredients and when they see things is organic and lots of people are lookthey can’t pronounce, it makes them ing for organic as it has become more question whether they want to eat it. mainstream. People are also looking for People are also checking for things like snacks that are free of the top allergens. I fat, sugar or sodium content.” think having a section where people will Consumers are looking for better-forknow healthier options are available you snacks, says John Tivadar, senior would increase sales overall.” brand manager, Natural Products, Cyba More and more people are becoming Stevens Management Group.

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Keep Calm and Snack On

Neysa Davies, senior marketing insights manager with Tree of Life Canada provides the following information on how snacks are now viewed as fulfilling three primary tasks: Nourishment – delivery of daily sustenance, long-term nutrition >> Key attributes for nourishment are: whole grains, fiber, protein, minimal sugar, probiotics, water. >> Examples: whole fruit and vegetables, nut and granola bars like Taste of Nature or Nakd bars. Optimization – Helps one to fulfill physical and mental performance demands. >> Key attributes for optimization are: protein, vitamins and minerals, antioxidants, and adaptogenic botanicals. >> Examples: energy and sports drinks, meat protein snacks such as Fusion Jerky, protein bars like Clif Kid ZBars, functional beverages such as Pure Kombucha and Water Kefirs. Pleasure – Fulfills emotional desires for enjoyment, craving and comfort. >> Key attributes for pleasure are: good taste, distinctive flavor/ texture, nostalgia, surprise & delight, global flavors, indulgence. >> Examples: chocolate and candy, baked goods, chips, popcorn, ice cream and novelties. Keep these consumer motivations in mind as you build your retail strategy for healthy snacking, notes Davies. “Snacking is no longer the simplistic and routine category that it once was; adapt your on-shelf assortment to aid your consumers in meeting their healthy aspirations.”

“According to Nielsen, salty snacks in general are up 14 per cent while betterfor-you salty snacks are up in sales 46 per cent,” notes Tivadar. “There are a number of categories that have crossed over to convenience, like KIND bars, the kombucha brand Bucha, and numerous offerings in salty snacks. If C & G stores merchandise brands like this in their stores, many customers will choose them over conventional ones. Create a better-foryou section in your chip aisle so it is easily visible for the customer. Use good signage that calls out the natural products. Make them easy to find, located close to the till.” Spokes Air-Puffed Potato Snacks is a new gluten-free, non-GMO, vegan salty snack product that has attracted the attention of convenience stores and their customers, notes Tivadar. Left Field Foods recently received an award in the Savoury Snack category at the 25th Canadian Grand Prix New Product Awards for this Spokes product.

“A couple of years ago, you would not have found many natural products in C&G, but the trend is moving that way in conventional grocery and C&G chains are starting to recognize that they need to do so as well to stay relevant,” states Tivadar. “I think we are going to see more healthier snacks and beverages become available in the convenience channel. The consumer is asking for them. If they are buying them in their grocery cart each week, they want to be able to pick them up in the grab and go format when they are in convenience stores as well.” People are realizing, as they try new, healthier products, that they don’t need snacks that are high in sugar, says Peter Neal, co-owner Neal Brothers Foods, which makes their own products as well as acting as a distributor for other brands. “People are looking for a snack or beverage they can get on the go that’s going to deliver something for them,” says Neal. “Taste has to be there but people can now

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look at the nutritional table that wasn’t there 20 years ago and didn’t understand 10 years ago and now have a better understanding of what they are eating. La Croix sparkling water, for example, doesn’t have any sugar in it and it is refreshing and tasty. We look for products that are better sourced by good companies with good values that also hit a price point. The bottom line is a good product that is really tasty at a good price that is healthier than what has traditionally been on the market. For example, we have an organic sesame snack that is made with black and white organic sesame seeds and sweetened with a small amount of coconut sugar. We have a crunchy lentil product that is coming up that everyone in our office can’t stop consuming because it

tastes go good.” Healthy snacking is not going to slow down in popularity, says Neal. “The numbers continue to grow within natural organic and I think we will continue to see more innovation, better pricing and better offerings,” says Neal. “If convenience stores could understand what the rest of retail has figured out, that items within this category of natural organic have been growing at mid-teen rate every year versus the one-and-a-half or two-and-a-half per cent of more traditional brands, they might consider giving four square feet of store space to a section that is understood and well communicated to be a decent range of healthier grab and go snacks. This would bring in five or 10 per cent more customers and

provide a higher margin or penny profit on the $3 organic granola bar versus the $1.99 granola bar.” People want something that will fill them up, taste good and also provide something functional that will be good for their bodies, comments Neal. As consumers continue to educate themselves on the types of products they are putting into their bodies, there will likely be a trend towards different types of proteins, different mediums and taste profiles, continuing towards functional properties like antioxidants, notes Valles. “Competition has already increased and it will be up to the consumer to determine what will land in convenience and what may remain specialty,” states Valles.

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JULY/AUGUST

By Howard Hogg

IMPULSE SALES THROUGH POP SIGNAGE AND DISPLAYS The automobile landscape has evolved incredibly. Starting from the first gravity fed gas pump to the now digitally metered pay at the pump version. One thing has always been there for the most part and that is signage and product display. This day and age people are in a hurry and it’s up to the marketers to slow you down and relax your approach to the gas station experience. Point of purchase signage and displays are used to encourage impulse purchases and increase sales. This starts from the time you’re driving down the road to choose the petro station where you’re going to fill her up! POS signage is your first encounter with the initial sale price of the petro itself. Next would be the signage offering the sales of products inside. These are the keys to getting customers inside your station and starting the retail experience. While customers are filling up they may or may not realize they have read at least two or three signs that have surrounded them at the pump. It’s the visual trigger that sinks in and gets a customer to make a purchase they never even thought of previous to filling the vehicle. You’ll have the bollard signage, special offers or discounts located on top of the pump, pump hose and handle. Each of these pieces of real estate has been

purchased by an individual company or companies aligned with each other to promote a single or combo discount for sale of products. For the larger companies these items would be purchased within their supply chain and sent out to the stations across the country but for the independent station owners it’s still easy to get these items through companies that specialize in offering single or low volume non-custom prefabricated display and accessories such as J&J Display Sales. The signage mentioned above is a definite asset to take customers off their fast pace and try to make them realize that they need that incredibly cold Pepsi and Mars bar to get them back on the road again. Signage and creative display accounts for a high percentage of impulse shopping at retail. Over 15 per cent on food alone and over 80 per cent because of sale or discounted items. The second set of signage and display hits the customer as they cross the fuelling area and on their way into pay. You’ll see large print well placed graphics of seasonal ice cream posters in the window along with the LED lit lottery

signs reminding you that $20,00,000 is up for grabs. Right below that on either side of the doors rests your firewood, propane or washer fluid displays. Once again these displays can be purchased online. Paint on a piece of plywood saying firewood doesn’t lend itself to a professional looking station. The second set of signage lends itself to all customers especially many long distance travellers in the winter and summer on the long drive to their destination. It usually starts with filling up the vehicle. Next comes the visual triggers along the way up to the door. You see the lotto sign in the window and realize you’re on the island for a week without a store nearby. If I’m on that island I’m going to need firewood and few magazines to read as well to get me through the fact there’s limited or no wifi. The triggers keep hitting you and you don’t realize it. People are like cattle and will change their direction if told to do so and that’s what visible and uninterrupted signage will do to get your customer to a certain area of the store. The layout of a store will push people to certain sections with the use of angled aisles high demand

CONVENIENCE & CARWASH CANADA

products and fridge placement. The angled aisles will allow owners to show more facings as customers walk through the door. The fridges are usually at the end of these aisles so you have to do the walk past the beef jerky, chips, the Pepto and lip balm shelves to get to them. Once you’re in the store you’ll notice petroleum companies have a store that gives a very clean and pleasurable shopping experience. A well lit and organized convenience store is essential to a happy and repeat customer. Messy and unorganized reminds them of their kid’s room. The encounter of signage and display appears in all colours, LED lighting, cool wording and logos as you move through and that stands out to get your attention. High value places for your displays are areas just inside the door, on the counter at cash and on the visible end cap at the end of the aisles as you stand in line to pay. Hanging displays work very well on

these end caps as well as they don’t take away any product space but are simply an extension to the aisle shelving. This could come in the form of clip strips, three or four high wire or plastic product displays only taking up a few inches in depth but spanning the length of a few shelves. Stand alone displays are another tool that can attract the customer to impulse purchases. These will come in the form of permanent double sided or four-sided units that the customer has to pass on the way to cash, once again creating a possible impulse buy. For all the items mentioned from types of shelving to vertical clip strips to fridge door product displays are easily accessible online. Another company is IDL Displays which can satisfy the need for displays and accessories. As for your actual signage production your best bet would to a printer in your area if you’re not ordering a large quantity.

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They can help you set up using the proper indoor and outdoor materials, graphics and printing. It's very important to have these key displays and signage mentioned here. The main thing is to have your triggers and attractors but don’t congest the landscape, then it’s too busy and people don’t pick up on the main impulse buys. A business with no sign is a sign of no business. Howard Hogg is the president of Dicon Display Inc. based in the Greater Toronto Area. He has been involved with POP display and signage for over 20 years. He has worked with some of the top leaders in (CPG)Consumer Packaged Goods executing display programs with above average (ROI)return on investment. He can be reached at howie@dicondisplay. com For more information about Dicon Display Inc., visit www.dicondisplay.com

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JULY/AUGUST

By Duncan McArthur

Store Design for the Best Retail Experience “To succeed, stay out in front of change. You can’t just keep doing what works one time. Everything around you is changing.” Sam Walton, founder of Wal-Mart. Sam Walton knew a thing or two about satisfying his customers and the quote above reinforces the importance of embracing change in order to stay ahead of his competitors. If you are a convenience store owner/operator in today’s environment, you need to be constantly looking for ways to provide your customers with the best retail experience possible. This means, among other things, making sure your store is viewed as a destination by your customers, a place where they enjoy their shopping experience. Sure, big corporate chains have deeper pockets than you and can afford to spend many thousands of dollars upgrading each of their locations, but in my experience, you can achieve outstanding results with very little investment. Analysis – ask yourself these questions: • What categories in my store generate the highest profit in margin and dollars? • Do they have adequate floor/counter space dedicated to them? • What categories in my store are in decline, and why?

• What do my customers tell me or my staff that they like about my store, and importantly, what don’t they like? • Who are your competitors? What are their strengths, weaknesses? (could be size, product offering, location, age of facility) • What does my store look like from the outside? If your location is not inviting to customers from the outside, why would they come inside to make a purchase? • Do your customers feel safe when they visit your store? Are female customers less likely to visit at night? • Can I see clearly to the back of my store when I look from the outside? If not, why not. What’s preventing this? Shelving height? Displays? Poor lighting? • Ask your vendors what they feel your strengths and weaknesses are. Vendors know their business better than anyone and are a key resource as you conduct this analysis. Planning

Now that you have completed your analysis, you should have a good idea as to where the greatest opportunities lie. Now you need to develop a design/re-design plan to maximize those opportunities. Let’s say that you have identified improved sight lines into your store and an

enhanced food service offering as two key areas for improvement. Your plan should include the removal of any displays over 54 inches in height, or replacing existing shelving with lower profile gondolas, again keeping in mind maximum height for sight lines and enhanced security and safety for your customers and staff. Prepare a drawing of your store that incorporates your analysis and achieves your goal for sight lines and food service offerings. Ask key sales representatives for feedback and suggestions. Representatives from companies such as Core-Mark International have expertise in many areas, and can help ensure your plan is a success. Perhaps you are an independent owner/operator aligned with a major gasoline banner – if so, approach your district manager and inquire about shelving that may be surplus as a result of corporate re-models. Often, these majors will have shelving available for little or no cost. Companies such as McCowan Manufacturing can provide modern shelving solutions for your re-design depending on the budget you are working with. Again, leverage your vendors, who may be aware of other projects that could result in fixtures being available at very competitive prices. You have identified that your customers are looking for an enhanced food service offering. This could be in the form of fresh sandwiches versus longer life C02 product. You may need to source out a new supplier that can provide these offerings, although if you operate in a smaller centre, this can be difficult. Again, a distributor such as Core-Mark will be able to assist you, and also provide equipment solutions to effectively display your new fresh sandwiches. Or, you may have decided to offer your customers a hot food offering (pizza, chicken, etc.) My advice is to focus on one offering at a time, with food safety and handling as absolute priorities. Working with your vendors, show your customers that you are committed to providing them good tasting food in a clean and safe environment. When developing your food service plan, think about the add-on sales opportunities that this can represent for your store. For example, most food service purchases will include a drink, or a

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salted snack. Ensure that these products are prominently displayed near your food service area so that customers are encouraged to make these incremental purchases. Also think about adding some additional lighting (pot lights, track lighting) to highlight your new product offerings. It is important to balance these displays against making it convenient for your customers to access your new/enhanced product offerings. Too many displays or fixtures can actually hurt sales. Be careful and ensure that you keep your displays well stocked with impulse and add-on products.

the day or week to implement your plan, and consider bringing in extra staff to assist. As well, vendors can be a valuable resource, and can be called upon to assist, particularly with respect to moving/remerchandising their specific sections as part of the plan. Once you have completed your re-design, and after making sure that it is working as planned, think about a grand re-opening to make sure your customers are aware of your changes. Work with key vendors for product specials, giveaways, etc. Customers enjoy the buzz and excitement that these activities generate.

don’t need to spend tens of thousands of dollars to make substantive changes to your store. Customers will respond positively to change that is intended to make their shopping experience more enjoyable, (and profitable for you). Test, modify, measure, repeat. Best in class retailers got that way by following those principles. Remember what Sam Walton said about change. Good luck!

Execution

Final Thoughts

Depending on the scope of your re-model, you may be able to achieve it without significant disruption to your business and your customers. However, you might need to consider closing your store for a limited period to ensure the safety of your customers and ultimately a more effective implementation. Select a slower time of

Start small. A wise consultant once told me that “continuous improvement is better than postponed perfection.” In other words, if you make your project too large and ambitious, you may never achieve it. By working at improving your store in this fashion, you’ll learn more, and ultimately be better with each project. You

Duncan McArthur is an independent consultant specializing in the gas/convenience channel. He has over 30 years experience in marketing, operations, and merchandising roles with companies such as Couche-Tard, Shell, Husky and Parkland, working extensively with Corporate and Independent Retailers. He can be reached at DGRMcArthur@gmail.com

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JULY/AUGUST

How to Make Your Doors Winter Ready

by Josh Hart

Are you one of those carwash owners that opened your doors the minute the temperature got above freezing last winter and left them open all summer long? If so, you are not alone. It is a very common practice but can be very hard on your door, hardware, and openers. Don’t panic, I will walk you through a few key steps to get your doors winter ready. However, I would strongly recommend performing these tasks sooner than later. Don’t wait until the day before it freezes to hit that close button and cross your fingers. Here is a quick outline of some of the tasks to perform to get winter ready: 1. Check power and air 2. Verify control methods are in place 3. Lubricate necessary components 4. Check balance of door 5. Drain your compressor 6. Check heat source 7. Check weatherstrip Before you get too involved, we need to eliminate the most common problems.

Check your power supply to the door control box or operator. This is very basic, but is most likely the number one reason your door does not close when you hit the close button. You may need to flip a circuit breaker or plug in your control box if power was cut to your opener in the summer months. Depending on what type of operator you have, you should be able to look at your control panel and see if there are any power lights on in the box or verify by operating the door from the controls. If you have a pneumatic opener and you have verified you have power but the door still is not operating, the next step is to check your air supply. Verify that the compressor is working and that your regulator gauge by the door control box is registering at least 60 PSI on the regulator. Once you have verified that you have air and power, you will want to make sure that your controls are working properly. Many automatic car wash controls have door control packages to send the open

CONVENIENCE & CARWASH CANADA

and close signals. First, you want to do not have one handy. Make sure to lumake sure that the wash control pack- bricate the hinges, rollers, zerk bearings age is active and is not holding the on your shaftline, and any other parts that the guides reference. door open based on outside Doors and Doors and operators that temperature. Next you will operators that have been idle for months at want to run a car through the have been idle a time most likely have seals wash to verify that the wash for months at that have dried up and recontrol is sending open and a time most close signals at the appropri- likely have seals quire lubrication. If you have pneumatic openers, it is imate times. that have dried portant to lubricate the interIf you have gotten this far up and require nal and external seals. With and the door is still not worklubrication. electric openers, most will ing from the buttons or the carwash signals, you should check ad- have a chain drive and it is important ditional sources for signals. In ground to check the flexibility of the chain and loops, photo eyes, buttons, and timers lubricate it properly. Another important aspect to check is are only a few of the additional items that control doors and may be the the balance of your door. All doors are source of a door not working properly. counterbalanced. Whether you have torThe first step is to check to make sure sion springs or a strap counterbalance your photo eyes are aligned. If you are

system, the counterbalance system should balance the door to the point where it can be operated manually. The way to check this is to disconnect our opener from the door and open the door by hand. If you can easily lift the door by hand it is properly balanced. If it is too heavy to lift by hand, contact your door service provider and schedule a service call to adjust your counterbalance system so it is operating properly. Un-balanced doors will cause additional stress on your openers and improper operation of your doors. If you are using a pneumatic opener, it is important to drain your compressor. This should be done regularly, but it is extremely important before the winter season. You may have air dryers in place, but most air dryers are limited to

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still having problems, contact your door service provider to go over some basic troubleshooting to determine the cause. Most loops and eyes have amplifiers that can easily diagnose and troubleshoot the problem with the help of your service provider. Hopefully, you have gotten this far and your door is opening and closing. However, you are not done yet! Now that the door is working, let’s go through a few steps to make sure it keeps operating properly. Carwash doors have many moving parts. Many of which require lubrication. Reference your owner’s manual or maintenance guide. Most are available online from your manufacturer if you

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eliminating small amounts of moisture in the line. Make sure your compressor is providing air and not water to your cylinders to Carwash doors optimize performance. and openers are When you are in cold made to open climate areas, doors are and close at high utilized to retain heat in volumes. Keeping a bay. Now is a good time them moving, keeps to check your heat source them lubricated and as well. The door can only reduces problems in retain heat if it is created the long run. inside the bay. Check floor heat or radiant tube heaters to make sure they are operating properly and can effectively protect your equipment from freezing in the cold winter months. Lastly, double check your weather seals around the doors. We have verified that your heat is working, but why make it work harder than it needs to? If your seals around the sides, top, and bottom of the door are worn or missing, there will be a gap that will allow cold air into the bay effectively reducing the productivity of the heater and costing you additional dollars in heating costs. Most of the time, getting your doors ready for winter is as simple as following the above steps. As a recommendation, cycling your doors regularly is the best maintenance you can do for them. Carwash doors and openers are made to open and close at high volumes. Keeping them moving, keeps them lubricated and reduces problems in the long run. However, if you did not do this throughout the summer months, we are not judging. We just recommend testing your doors to make sure they are operating properly before the night of the big freeze.

Josh Hart–President of Airlift Doors: Josh grew up in this family business, but has been on board full time since 2001. He has spent time in a lot of different roles but has specialized in sales until recently focusing more on the financial side of the business.

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JULY/AUGUST

CONVENIENCE & CARWASH CANADA

By Cheryl Dobie

IMPORTANCE OF NOISE CONTROL Everything on earth is subject to the force of gravity, including the atmosphere around us.

The weight of a one inch square column of air extending from any point on the earth’s surface to the vacuum of space is referred to as the barometric pressure or ambient pressure. When the air is disturbed

is a need for noise control. Most of the sounds that we are subjected to on a daily basis are a combination of individual sounds at various frequencies. We can characterize them by pitch or tonal qualities, but they are not in some way, it causes the air pressure pure tones. To evaluate the noise specto fluctuate rapidly above and below trum of a given sound and get a better the local ambient pressure. It spreads picture of the noise, a graph is generally through the air in a series of pressure used to show the sound pressure level at waves. The ear drum is set in motion various frequencies within the audible by the varying air pressure and the range. vibrations are registered as sound by the Sounds can be measured using a mibrain. crophone to simulate the ear, or electronWhether a short annoyance or for an ics to determine pressure variation. The extended duration, noise is an unwanted range of pressures is very large, so mesound. While our subjective reaction is ters are calibrated to a logarithmic scale, what we sense as loudness, technically, reading in Decibels (dB) to give more the greater the variation in pressure, the meaningful value to the term “sound louder the noise: and, the faster the vi- pressure level.” However, the decibel sysbration, the higher the frequency or pitch tem can be confusing. For example, a 110 of the noise. A noise could be annoying dB level is not 10 per cent greater than a or it could be so loud that it will damage 100 dB noise level; it actually represents the hearing system. In either case there 10 times the acoustical energy.

The purpose of acoustic design is to limit people’s exposure to noise, whether they are inside or outside the building. The correct materials can play an important role in the design by absorbing the sound energy and/or by acting as a barrier and resisting the transmission of the noise. A factor known as absorption coefficient of a given material defines how much sound that material can absorb across a given frequency range. The more sound absorbed, the less is reflected back into the room to cause reverberation. Every structure has a natural frequency, meaning once struck by sound it will continue to vibrate at frequencies determined by its material, dimensions, shape and conditions. Because not all sounds striking a surface will strike at right angles, coincident sound is produced by striking the surface obliquely and these will produce a forced motion in the panel (the trace wavelength).

JULY/AUGUST

Selective application of damping materials is effective in reducing this structural resonance Source control

Depending on design, the housing on a drying system can act as a barrier to sound waves, making them go through and thereby reducing their strength. By installing absorbing material with a perforated liner, internal sound along with acoustic reflections are absorbed, therefore reverberation times can be reduced. Path control

Carwash operators face unique challenges. Even though a building should also act as a containment barrier for sound, the most effective acoustic treatments used in construction are

porous and are not suitable for wet, harsh carwash environments. Also, because carwashes have large entrance and exit doors, sound cannot be completely contained within the building. Receiver control

Ear plugs or ear muffs are considered highly economical methods for reasonably effective receiver noise control. However, employees are often uncomfortable having to constantly wear these devices. They note their inability to detect change in the sound of their equipment and problems communicating with employees and customers. The Occupational Safety and Health Administration (OSHA) regulates noise and time limits for worker exposure. These standards govern the maximum levels of industrial noise an

employee may be exposed to and explain what action must be taken if these levels are excessive. Premises noise can be detrimental to customer enjoyment. Noise can quicken the pulse rate, raise breathing rates, and increase blood pressure. If irritable customers remember their wash as a stressed-out experience, they will likely reduce or eliminate their visits. And what about the neighbours? Noise generated by carwash traffic and equipment and emitted to neighbouring properties can be perceived as a nuisance. Should complaints arise, generally operational noise is not grandfathered in, even if the wash has enjoyed a long history in that location. Whether new construction or an existing facility, local ordinances can impose restrictions or dictate hours of operation.

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WEDNESDAY, February 20

7 a.m. ..............................................................................Cardlock Meeting ! NEW 7 - 9 a.m. ........................................... WPMA Breakfast Café OPEN 7 a.m. - 4 p.m. ........................................................... Registration OPEN 8:30 - 10 a.m. .............................................................KEYNOTE SESSION 10 a.m. - 3:30 p.m. ......................TRADE SHOW OPEN with Buffet Lunch 12 - 2 p.m. .................................................................... Ladies’ Luncheon 3:30 p.m. . ......................................................................... Brand Meetings 5 p.m. ..............................................................................Cardlock Meeting Evening Open ............................................................Suppliers Hospitality

THURSDAY, February 21 7 - 9 a.m. ........................................... WPMA Breakfast Café OPEN 7 a.m. - 12 p.m. ......................................................... Registration OPEN 8 - 9 a.m. ........................................................... EDUCATIONAL SESSION 9 a.m. - 12 p.m. .....TRADE SHOW OPEN with Buffet Breakfast 11 a.m. .............. Silent Auction CLOSES NEW

Subject to change

e! t a D e Save th

February 19-21, 2019 WPMA

Mirage, Las Vegas, Nevada, USA

STORE 2018 Conference

CONVENIENCE & CARWASH CANADA

By Angela Altass

ATTENDEES AT THE RETAIL COUNCIL OF CANADA CONFERENCE STORE 2018 WERE PRESENTED WITH INFORMATIVE SESSIONS AND A NETWORKING HALL DURING THE RECENT TWO-DAY EVENT AT THE TORONTO CONGRESS CENTRE. During a session entitled Invisible, Humanless and Cashless CheckOuts, The Next Generation of Frictionless Retail, roundtable participants Michael Coscetta, global head of sales, Square; Debbie Gamble, vice president, Digital Products and Platforms, Interac Corporation; and, Chris Tyghe, vice president, Strategic Development, Ingenico Group discussed trends and how today’s focus is on what the customer wants. Coscetta talked about adapting your business to being very consumer focused and Gamble noted that the consumer is at the centre of “pretty much everything.” “The rate of change, driven by new technology, is challenging all of us,” said Gamble, while Tyghe noted that a humanless check-out does not always mean it is convenient or quick and cautions retailers to know what their customers want. “The prize has to be that customer coming back to your business instead of going somewhere else,” says Gamble. “Offer the customer something that is relevant to them. You want to provide a great experience for your customer.” Tyghe noted that if millennials drive up to a location and see a line of people, they will leave and go elsewhere. “No one wants to wait for anything,” said Coscetta. “If a line looks like it will take over four minutes, people will leave.” Tyche also said that he expects there will be heightened awareness of what is happening with personal data over the next five to 10 years. People are starting to ask

Session host Justin Ferrabee (left) introduces roundtable participants Debbie Gamble, vice president, Digital Products and Platforms, Interac Corporation; Chris Tyghe, vice president, Strategic Development, Ingenico Group; and Michael Coscetta (RIGHT), global head of sales, Square.

The networking hall at STORE 2018

if companies are collecting data and who controls the information that is gathered about customers. Gamble noted that more people are using mobile wallets when paying for items in-store as they like the additional layers of security that come with it. “Consumers and merchants don’t want to think about security,” notes Coscetta. “They want their provider to say we’ve got you covered in these areas that you don’t know anything about.” In response to a question from the audience, Coscetta added that it will become less convenient for people to carry cash in the future and Gamble noted that some retailers in other countries have already gone cashless in their stores. She also noted how you cannot make

purchases on an airplane with cash anymore. “There is a cost to using cash at retail,” said Coscetta, “and there is a risk of loss. Airports don’t accept cash and I think that trend will accelerate.” Other sessions at the conference dealt with such topics as artificial intelligence, online shopping, mobile technologies and private label credit card technology. The Retail Council of Canada honoured the best in retail innovation and creativity at the Excellence in Retailing Awards Gala during the first night of the conference and the event concluded with the Grand Prix New Products Awards Gala celebrating new products in 32 food, non-food and private-label categories.

South of the Border

MAY/JUNE JULY/AUGUST

By Amy Mastrangelo

The Smart Way to Buy Carwash Supplies from the States

Looking for the best deals on your carwash equipment and supplies? Once you find a distributor that carries everything you need, buying from the States is easier and cheaper than you might think! In fact, it can be quite convenient for many owners of highvolume carwashes. Consolidation is the best way to really maximize your savings. When you stock up on the parts and supplies you need in one large order, you will save costs, and your carwash will be in good supply for months to come. In a few simple steps, you can get everything you need from the States delivered right to your carwash. Once you (1) select a broker, (2) place your order, and (3) compare prices, you will find that it is ultimately an advantage to import from the States. Scott Murray of Ezee Clean Car Wash in Stony Creek, Ontario finds the process to Scott Murray of be convenient. He says, Ezee Clean Car “I buy in larger quantiWash says, ties, for example 30 “I buy in larger cases of towels. And I quantities, for take advantage of the example 30 cases various promotions of towels. And I from my supplier such take advantage as buy 10 cases get of the various one free. This ensures promotions from I have inventory for my supplier such myself on hand at all as buy 10 cases times. Depending on get one free. the exchange rate at the time I stock up a little bit more.” Scott buys all types of items in bulk, including vending items, hoses, swivels, and guns, to name a few. He likes having it all in one order and it all arrives in a matter of several business days. Scott uses UPS brokers and they take care of everything and do not bother him. Getting your supplies from across the border should be an easy and money saving experience. So how does the process work? This article has outlined the important steps so you can get started!

Step 1: Select a Broker

The first step is to select a broker to help you from start to finish. The broker will do most of the work for you. Some popular customs brokers include: UPS, Livingston International, and Kuenhne & Nagel. Step 2: Consolidate Your Order

The taxes will be the same percentage whether you order a little or a lot, so it is smart to get all the supplies you need and can afford at once. Rather than ordering every several weeks, try ordering every several months. If you can afford to consolidate, you can afford to import! Step 3: Compare Prices

Shop around to find the best carwash supplier that has everything you need at good prices. Make sure the products you want qualify for shipment outside of the United States. Keep the fluctuating exchange rate in mind. Once you have decided where and when to buy, it will be time to place your order with your carwash supplier. Processes

Canadian customers can order several skids from the States, and those skids will move on a freight truck. The freight company will call the customer and ask who will clear the order, or in other words who the broker will be. Please note that the broker needs to be set up ahead of time so things do not get stuck at the border. The freight company will contact the broker and drive across the border. If the freight company cannot clear the order before crossing the border, the goods will be held in a bonded warehouse. A bonded warehouse is a customs-controlled warehouse used for the retention of imported goods.

CONVENIENCE & CARWASH CANADAâ&#x20AC;&#x192;

Payments

You will get an invoice from the carwash supplier that shows the transportation cost and the cost of goods. The supplier does not collect duties and taxes. To get the goods into Canada, the customer must pay the broker a brokerage fee. This is an escalating charge: the greater the order amount, the greater the brokerage fee. But, as a percentage, this number ends up being less as the order value goes up (see infographic). For example, if the value is 250 CAD, you could pay a 51 dollar brokerage fee, or 20 per cent. But, if the value is 2,500 CAD, you could only pay 103 dollars, which is only four per cent! These amounts are sometimes negotiable with your broker. The customer must also pay any applicable duties, HST taxes, and tariffs. If the product you are importing is manufactured in the United States and qualifies for NAFTA it may not have any duties. Please note that the amount of duty and taxes owed depends on your province of residence. And, the amount of duty owed depends on the country where the product was manufactured, not the country where it was purchased. You will take care of all these applicable payments before you receive the supplies. Once the supplies are delivered to your wash, you will be ready to use them and get back to business as usual! Plus, you will be in good supply for the following months to come. Simply purchase from the distributor as you would normally, and the broker will be there to help handle the rest. After you try it once, the process is likely to be much easier than you thought. Amy Mastrangelo is a copywriter for Kleen-Rite Corporation, a leading carwash supplier for over 50 years. Kleen-Rite sells pumps, vending products, soaps, and much more to independent carwash owners. For more information, visit www.kleen-ritecorp. com or call toll-free at (800) 233-3873.

CONVENIENCE & CARWASH CANADAâ&#x20AC;&#x192;

Forecourt Insight

By Pete Neil

ATG Advancements Tame Temperature-Induced False Alarms Many Canadian fuel site operators are familiar with this painful truth: temperature has a profound effect on fueling operations, often causing retailers fuel inventory management headaches. Thankfully, manufacturers are beginning to develop tank gauging solutions specifically designed to limit these headaches. Advancements in line leak detection and phase separation detection are two such examples. Line Leak Detection

Some areas of Canada are beginning to require line leak detectors (LLDs) at fuel dispensing facilities. Regardless of regional regulatory nuances, Canadian fuel site operators need to take line leak detection seriously. Hereâ&#x20AC;&#x2122;s why: according to the Petroleum Equipment Institute, more than half the leaks that occur in underground fuel storage systems happen in piping. There are three basic types of leak detectors: mechanical line leak detectors (MLLDs), pressurized line leak detectors (PLLDs) and volumetric line leak detectors (VLLDs). Mechanical line leak detectors (MLLD) monitor pressure when the pump is turned on, allowing a small amount of product to flow and create pressure in the pipe. If the MLLD detects a lack of pressure (a sign of a leak), it restricts the flow of fuel to the dispenser. MLLDs only detect catastrophic leaks of 11.4 or more liters per hour. Pressurized line leak detectors (PLLDs) use algorithms to equate pressure decay into a volume loss to determine if a line is tight. Volumetric line

leak detectors (VLLDs) maintain a constant line pressure during testing by continuously running the pump to measure flow rates. Both PLLDs and VLLDs are considered electronic line leak detectors (ELLD), which operate in conjunction with an automatic tank gauge to detect large leaks (11.4 lph or higher) as well as much smaller leaks (.76 lph and .38 lph). Unfortunately, MLLDs and PLLDs are both vulnerable to thermal conditions. If the temperature of the product decreases as it moves from the tank into the piping, the volume of the product decreases. This causes a loss of pressure in the line. MLLD and PLLD systems are susceptible to false alarms due to thermal contraction. MLLDs will slow flow, while automatic tank gauging systems with PLLDs will issue an alarm, shutting the pump down. Phase Separation Detection

When enough water mixes with ethanolblended fuel, the ethanol absorbs the water molecules. The water-saturated alcohol molecules become too heavy to remain suspended in the gasoline solution. They drop to the bottom of the

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JULY/AUGUST

By Pete Neil

It takes very little water to cause phase separation, a process that can lead to four distinct layers of inventory inside the tank. / Image courtesy of OPW Fuel Management Systems

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tank, creating layers of different mixtures of product, including an equipmentdamaging alcohol and water (aqueous ethanol) layer. This process is known as phase separation. Phase separation detection is another aspect of fuel monitoring that is vulnerable to false alarms that are predicated by temperature swings. There are two primary types of phase separation monitoring devices: a phase separation float, which is weighted to a specific density of the aqueous fluid, and a phase separation sensor, which continuously monitors for fluctuations in product density. Both devices monitor water heights (the primary contributing factor to phase separation) and prompt ATGs to issue alarms. However, float-based phase separation detection devices are unable to account for thermal changes inside a

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UST. For instance, fuel inside a tanker heats up on warm days. When that warm fuel is added to the cooler fuel in the UST, this temperature change causes the density of the product to fluctuate. Float-based phase separation devices are unable to account for the thermal change and subsequent density fluctuation, which results in false phase separation alarms. ATG Advancements

Fuel site operators frustrated by false line leak or phase separation alarms have been known to override the system settings to prevent the pump from shutting down. This stop-gap measure should be avoided at all costs, as it puts the site at risk of failing to detect an authentic (and costly) problem in a timely manner. New volumetric line leak detectors OPW’s Model 327 volumetric line leak detector utilizes a highly accurate flow sensor to capture flow volume data. / Image courtesy of OPW Fuel Management Systems measure actual leak rates to provide more accurate measurements than pressure-decay methods. In addition, new changes in the UST. In addition, comOPW’s Model 327 volumetric line leak VLLDs can perform gross/catastrophic patible tank gauges can be programmed detector measures line leak tests even if the STP motor at specific density thresholds to issue a actual leak rates to provide more accurate is in a continuous run warning, and then if condimeasurements than state while no dispenstions continue to deterioBy eliminating false pressure-decay methods. Image courtesy of OPW ing is taking place (some alarms, new line leak rate the system will trigger Fuel Management detection and phase PLLDs perform tests an alarm to shut the pump Systems separation monitoring only after the pump has down. solutions help fuel stopped running). FurBy eliminating false retailers keep product ther, ATGs equipped with alarms, new line leak detecflowing, ensure their VLLDs require pressure tion and phase separation fuel quality is on point equalization between the monitoring solutions help and help prevent line and the motor before catastrophic compliance fuel retailers keep product the test starts. Because flowing, ensure their fuel incidents. pressure equalization is quality is on point and help established before testing, prevent catastrophic comthe likelihood of false alarms caused by pliance incidents. A full-featured tank thermal contraction is eliminated. gauging system supported by advanced New aqueous ethanol float-sensor so- monitoring components such as aquelutions utilize a sensor to continuously ous ethanol sensors and VLLDs will help monitor fuel quality to provide real-time, streamline operations overall to ensure OPW’s aqueous ethanol float sensor monitors fuel quality, providing realthermal-corrected density readings that fuel retailers can focus on growing their continuously time, thermal-corrected density readings. Image courtesy of OPW Fuel Management Systems accurately account for temperature bottom line.

Pete Neil is the global product manager at OPW Fuel Management Systems, based in Hodgkins, IL. Neil has considerable expertise in tank monitoring equipment solutions. He can be reached at pete.neil@doverfs.com. For more information about OPW, please visit www.OPWGlobal.com.

JULY/AUGUST

By John Espley

Petroleum Spill Control Do you operate a gas station, carwash or have a parking lot? If the

per 15 on, g n i nt lati ese popu istics r p Re f the Stat ed at to to cen rding n estim ians d o acc ada, a Cana lder o Can million 12 or jury in 7 d 2 4. age red an limit o e t s f suf ough tivitie n c n e a a ual ere 10, sev eir us 9–20 3 per 1 th 00 . in 2 from 2001 e in s t a n e ce incr

answer is yes, you are vulnerable to a hydrocarbon spill (gas, diesel, oil). The big concern here is a liability. You as the business and property owner can be held responsible for several outcomes. Here at BC Hazmat Management, we have responded to many stores, banks, gas station parking lots and loading areas cleaning up leaks from both customers vehicles and delivery vehicles. In the case of delivery vehicles, the spills can come from the vehicle itself or the product they are delivering (oil, chemicals). What are the areas of concern where you might be liable? The first one is exposure, exposure to your staff or your customers. Many products have extremely harmful fumes that can easily overcome individuals, especially those with any breathing issues. Then there is a slip, a trip, or a fall concern, jokingly we always laugh at the cartoons of someone slipping on a banana peel, but the realities are not so comical. Representing 15 per cent of the population, according to Statistics Canada, an estimated 4.27 million Canadians aged 12 or older suffered an injury severe enough to limit their usual activities in 2009–2010, an increase from 13 per cent in 2001. Overall, falls were the leading cause of injury. About 63 per cent of seniors and one-half of adolescents were injured in falls, as were 35 per cent of working-age adults. Slipping and falling causes muscle damage, broken bones, spinal damage

and sometimes serious head injuries. Imagine how an injury like this to one of your workers will affect your compensation fees. If you, as the owner, haven’t done your due diligence in training your staff on how to clean up a spill properly, then the fines can be massive. Now there’s also the issue of customers and litigation. The costs of legal representation, increased insurance costs, settlements and the possible public relations damage can all ruin a business. Another area that is certainly becoming more common is the environmental costs. I’m not just talking about the damage a spill can make cause to the environment as it heads into a storm drain or seeps through cracks in the pavement. I’m talking about huge fines and litigation again. Both of these are increasing every time we look at the latest reports. We are talking about 10’s of thousands if not hundreds of thousands of dollars. The good news here is that appropriate training and supplies on hand can and will be, your best insurance against injuries and environmental damage. Using the BC Hazmat Management example, in one day we can teach your staff about the possible spills they will encounter, how to help prevent those spills and how to quickly and efficiently respond to the spills when they do happen. Your staff will learn the difference between the various types of spill recovery products. They will learn about when to use pads or when to use a boom. They’ll learn about various products available to plug leaks

CONVENIENCE & CARWASH CANADAâ&#x20AC;&#x192;

Pictured here the BC Hazmat management team doing the dangerous job of pumping out an overturned fuel delivery truck. The fire dept was standing by with both water and foam just in case of a catastrophic fire or explosion.

both a malleable and mechanical. Your workers will understand the difference between the absorbent and adsorbent materials. One collects oil and water, one collects just oil. These products are a really important issue if itâ&#x20AC;&#x2122;s raining out and you are training to clean up an oil spill. Depending on the size of your business you should stock spill kits with pads appropriate to the risks you may encounter, proper PPE (personal protection equipment) for the staff to handle the spill. These spill kits usually come in large duffel bags or garbage sized containers and if your business is larger, you may want to have a customer spill response trailer stocked and ready for an emergency. We build those for larger retail customers as required. With the right training and equipment, your workers will have the ability to either

clean up a spill properly or at least mitigate and perhaps hold back the damage until a spill clean-up company can arrive. Having trained staff can save you thousands of dollars in fines as we mentioned earlier. To conclude, the upfront cost of training staff and having supplies is tiny in comparison to the cost of damage to either people or the environment. John Espley is the director of Marketing & Communications at BCHAZMAT Management Ltd. BCHAZMAT is certified by the ECRC and has a full contingent of emergency response of trucks and trained staff. Both the company and the founder have received many awards for their business focusing on safety and environmental protection. For more information, visit www.bchazmat.com.

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continued from page 10 to do when something is not working as it should and what needs to be done to get it fixed in a timely manner as well as keeping customers happy. In the future, I see myself right where I am with hopes of expanding the site I am at now. I love everything about my job even on the stressful days.

Paula Shave My name is Paula Shave. I'm 35, married and a mother of three. I work as hard as my body will let me each day and I normally push beyond that. People see 5ft and think, "there is no way she's gonna fix that." It's not about proving them wrong— its proving to myself that I can. I grew up in a small town with a hardworking farm family. Nothing is ever given to you, you must work for everything you have. I am the second of four kids. My folks are still married after 45 years. I’ve worked many cleaning jobs, household and vehicle detailing and I take pride in a clean vehicle. I lost my job at a local dealership where I had been a detailer for four years. I applied at Grime Fighters because they were just building and getting in on the ground floor seemed like an incredible challenge to learn. I was hired just as an attendant but have been managing for the last 2.5 years. Every day has something special going on. Whether it’s running into a customer on site or off, hearing them say how they love to come into the wash, or having your bosses rave about the fact that they feel the wash is in good hands and they know that they don’t have to pop in all the time is a good feeling. For me it is not about "I am women hear me roar” it’s, hey I’m calling please answer the phone. This is a career and if you love what you’re doing coming to work every day is a good feeling and your happiness will pass onto those that come through your business. Reflecting on my career, I would have

loved to have been more involved with the building of my wash. Watching and seeing how things were put together and routed is interesting. I’m a hands-on learner and feel that if I could have been here while they were building this site, I might be able to troubleshoot small issues that come up. I'm not sure if this is a career that I would have ever sought out, but I am enjoying the challenges that this job comes with them. One of the greatest challenges I face is —

Women in carwash

actually men. Things go wrong and break and it’s something that you've had to fix before but, yet they seem to question why you think that’s what’s broken and come and have a look before ordering you the part. The future is bright and in the next few years I see myself building or running another carwash. For now, I enjoy managing this store and making it the best experience for customers.

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What’s New

Anthony® Introduces Optimax Radiant Series LED Light

Optimizes cold-vault merchandising by improving product visibility Sylmar, CA, USA – May 14, 2018 – Anthony™ is pleased to introduce the next generation of its Optimax lighting: the Optimax Radiant Series LED. The new Optimax Radiant Series LED optimizes cold-vault merchandising with best-in-class uniformity and high color rendering for enhanced product visibility. Anthony Optimax Radiant Series LED lights have been specifically designed to improve merchandising and increase cold-vault sales and profits. Featuring a 100,000-hour L70 life cycle for longterm reliability, the Optimax Radiant Series LED light has an industry-leading efficacy (Lumens/Watt) and provides a brighter and more uniformly lit cold vault when compared to other models. In side-by-side tests, the Optimax Radiant outperformed competitive models in lumens, efficacy, distribution and L70 life. Additionally, these lights

increase merchandise visibility thanks to a higher Color Rendering Index (CRI) that ensures the product “pops” in the display case. “We are extremely proud to introduce our highest CRI LED light – the Optimax Radiant Series,” said Uri Rainisch, Senior Product Manager with Anthony. “Energy efficiency does not have to mean poor visibility. With Anthony’s Optimax Radiant Series LED lights, merchandise visibility is enhanced while brightness is consistent and uniform.” Optimax Radiant Series LED lights are available in nominal sizes ranging from 18 to 72 inches and in both end- and center-fixture configurations. Optimax Radiant Series LED lights come with a 5-year warranty. For more information on Anthony and its various product lines, please visit www.anthonyintl.com.

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CSI® Certified to New ISO Standard

Armor All’s Essential Blends oilinfused air fresheners aim to help appreciate the little things TORONTO, Ont. — We have turned the corner on harsh winter weather, and spring is here. Spring is a time of renewal and refreshment as nature comes back to life, giving friends and family the opportunity to spend more time outdoors. As we trade icicles for flowers and snow angels for pool loungers, the warmer weather brings sights and smells that brighten up our day. Smells of lavender, vanilla, citrus and eucalyptus are just a few of the familiar and inviting scents gifted to us by spring. Even though scents of nature fill the springtime air, some people may have too much on their to-do lists to truly relax and enjoy the outdoors. Armor All is now bringing the natural scents of spring directly into your car. The new Essential Blends air fresheners are infused with essential oil blends of lemon bergamot, eucalyptus mint, pink grapefruit, citrus pomegranate and vanilla lavender, giving you the scents of spring wherever you go. “The inspiration behind Essential Blends came from looking at the average person’s daily to-do list and thinking of how we could make those little in-between moments relaxing,” says Megan Currie, Spectrum Brands director of marketing for Armor All. “A lot of people are in their cars for a good portion of their day, whether they are commuting to work or doing errands. We wanted to transform that daily routine into a comforting experience.” Essential oils are known for their refreshing and restorative properties. Helping to relieve headaches, relax the mind or even energize the body, the benefits from essential oils are endless. For more information, visit essentialblends.ca. Get all the latest updates by following Armor All® on Facebook and watching its videos on YouTube.

Cleaning Systems, Inc. (CSI) of De Pere, Wisconsin is pleased to announce it has been certified to the ISO (International Organization for Standardization) 9001:2015 standard for Quality Management Systems. CSI had previously been certified to the ISO 9001:2008 standard. ISO 9001:2015 certification provides assurance to internal and external stake holders that CSI delivers a consistent level of quality to their customers. ISO Certification is a seal of approval by a third party that a company runs in accordance with internationally recognized ISO management standards. It is a symbol of quality and commitment to product excellence and customer service that instills the confidence of car wash owners, operators, and distributors in CSI as the global leader in chemical technology for the transportation industry. Dave Krause, president and CEO of CSI proudly commented, “Our ISO14001:2015 and ISO 9001:2015 certificates show our hard work and dedication to achieve high standards in customer satisfaction and environmental performance.” To view our new certifications, please visit the website at www. CleaningSystemsInc.com/iso-certifications/.

Gilbarco Veeder-Root Partners with Acumera for Secure Remote Support for Passport® Point-of-Sale GREENSBORO, N.C. – May 14, 2018 Gilbarco Veeder-Root has partnered with Acumera, a Payment Card Industry (PCI)-compliant managed security services provider, to deliver secure remote support for Gilbarco’s Passport point-of-sale system. The partnership supports Gilbarco’s plans to rapidly enable chip card (EMV) payments at the dispenser. “Acumera’s platform delivers an industryleading security and visibility support platform for our Passport point-of-sale system, and they are able to meet our forecourt EMV timeline quickly,” says Mark Williams, VP of North America Marketing, Gilbarco. “Acumera’s remote support solution gives our help desk real-time access and visibility so we can better support our POS systems.” “Since 2002 Acumera has designed compliant and secure networks for retailers with multiple locations. Our convenience store customers value us for our hands-on service culture, and because our platform is secure and simple to install and use,” says Dirk Heinen, Chief Executive Officer of Acumera. “We are excited to support Gilbarco’s forecourt EMV goals of security and rapid rollout.” For more information about Gilbarco’s industry-leading Passport POS system visit gilbarco.com. Acumera has been the trusted network partner for our clients since 2002. To learn more, visit acumera.net.

‘Eternally Confident, Totally Fearless’ Cincinnati Marketing Agency

CINCINNATI, OH – June 11, 2018 – DeanHouston, Inc., a leading full-service, businessto-business, integrated marketing communications firm, will celebrate its 30th anniversary as an agency this year. Since launching in the summer of 1988, DeanHouston has undergone a significant transformation mirroring that of the rapidly evolving business landscapes in which it operates. With co-founders Dale Dean, Greg Houston and Pam Houston at the helm – and also as the only staff members – their small technical products-focused boutique agency quickly developed into a fully integrated organization that today employs more than 70 talented marketing professionals operating from the company’s offices located in Cincinnati, Los Angeles, Chicago and Shanghai. The company boasts a full range of integrated marketing services, beginning with strategic marketing followed by traditional and digital marketing strategies, brand development, graphic design, web design and development, media and publicity, video production, and 3D animation. DeanHouston is also at the forefront of virtual and augmented reality, which is rapidly being embraced in the technical products service industries. To mark the company’s 30-year anniversary, DeanHouston will hold a special celebration at the National Underground Railroad Freedom Center on October 22-23. For more information about DeanHouston, please visit deanhouston.com.

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AD INDEX

Aerodry Systems, LLC..............................................................25

Oasis Car Wash Systems...................................................12, 35

Airlift Doors...............................................................................42

OPW Fueling Systems..............................................................50

Bee Maid Honey Limited..........................................................22

P.D. McLaren / Istobal.............................................................55

Bulloch Technologies Inc.........................................................33

P.D. McLaren / Oasis...............................................................58

CoreMark Int'l.......................................................................6, 27

P.D. McLaren / Peco ...............................................................50

Direct Cash/Cardtronics.......................................................OBC

P.D. McLaren / RDR.................................................................14

Distribution Regitan..................................................................21

P.D. McLaren / ZEP..................................................................32

Erie Brush.................................................................................56

PDQ Manufacturing Ltd.............................................................9

Gourmet Chips.......................................................................IBC

PEI............................................................................................23

Hole in One............................................................................. 39

Petroclear.................................................................................37

International Dryer Corporation................................................40

Reclaim Equipment Company.................................................13

Kleen-Rite.................................................................................53

RockyView Industries Inc.........................................................17

LSI Industries...........................................................................10

United Distribution Network.....................................................19

Modernwash.......................................................................... IFC

Washtech Vehicle Wash Systems............................................54

NACDA.....................................................................................15

WhiteCastle..............................................................................26

Nestle Waters Canada...........................................13, 35, 55, 58

WPMA.......................................................................................44

North Shore Tobacco...............................................................48

XpresSystems Inc....................................................................41

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