CSN December 2023

W H AT ’ S N E X T I N C O N V E N I E N C E A N D F U E L R E TA I L I N G

HAFFNER’S UNVEILS NEW FLAGSHIP STORE

SECURING SHEETZ INC.’S LONGEVITY HALL OF FAMER JOE SHEETZ HELPS THE FAMILY BUSINESS SHORE UP ITS FUTURE IN CONVENIENCE RETAILING

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EDITOR’S NOTE

A Look Back, A Look Forward The top headlines of 2023 foretell an exciting new year for the c-store industry FOR THE Convenience Store News editorial team, the month of December is always spent looking back and looking forward. We look back by combing through the headlines of the past 11 months to prepare our annual Year in Review roundups. We look forward by analyzing the data from our annual Forecast Study, compiling the findings to be published in our January issue.

As is so often the case, many of this year’s top headlines pertained to merger and acquisition activity. Among the most-read stories, 2023 saw bp acquire TravelCenters of America Inc., adding 280-plus locations to its network.

Maverik — Adventure’s First Stop purchased Kum & Go, operator of 400-plus stores in 13 states. And MAPCO Express’ portfolio of more than 300 convenience stores was sold to two buyers: Alimentation Couche-Tard Inc. and Majors Management LLC. An even bigger storyline that emerged this year, however, was the flurry of expansion announcements made by many of the c-store industry’s major players. There are too many to list them all here, but some of the coast-tocoast highlights include: • Wawa Inc., which currently operates throughout the Northeast and Florida, set forth a strategy to double its footprint within the next decade. The retailer broke ground on its first store in Alabama and its first location in North Carolina. It also revealed plans to open inaugural stores in Ohio, Indiana, Kentucky and Tennessee.

• RaceTrac Inc., as of press time, was putting the finishing touches on its first Indiana store in preparation for a mid-December opening. The

chain, which bills itself as “the premier gas station in the South,” is also in the process of entering Ohio and South Carolina.

• Parker’s is reportedly looking to extend its current operational footprint beyond southeast Georgia and South Carolina, pushing into Florida. Public records show that Parker’s recently purchased nearly 10 acres of land in North Jacksonville, Fla. • Casey’s General Stores Inc. identified unit growth as one of the key pillars of its new threeyear strategic plan. Chairman, President and CEO Darren Rebelez said: “We operate 2,500 convenience stores in 16 midwestern states and what I’d like to point out is that with those 2,500 stores in the 16 states, about 2,000 of those stores are in only nine of the states we operate in. So, the other 500 are scattered over the seven other states. We have a lot of white space to grow in our existing footprint. And of course, there’s a lot more than 16 states in the U.S., so we have plenty of room beyond that.”

Innovation in the U.S. convenience store industry is already at an all-time high. As the best of the best steadily move into new territories and eventually converge, I can only think that this amped-up competition will bring more exciting advancements and more sophisticated offers to the industry, propelling it to even higher highs.

It’s sure to be an interesting 2024.

Wishing you all a happy and profitable New Year!

For comments, please contact Linda Lisanti, Editor-in-Chief, at llisanti@ensembleiq.com.

EDITORIAL EXCELLENCE AWARDS (2016-2023)

EDITORIAL ADVISORY BOARD

Finalist, Best Infographics, June 2021

2018 Jesse H. Neal National Business Journalism Award Finalist, Best Editorial Use of Data, June 2017

2023 American Society of Business Press Editors, National Azbee Awards Silver, Data Journalism, January/April/June 2022

2023 American Society of Business Press Editors, Upper Midwest Regional Azbee Awards Gold, Data Journalism, January/April/June 2022 Bronze, Diversity, Equity and Inclusion, March 2022

2016 American Society of Business Press Editors, National Azbee Awards Gold, Best How-To Article, March 2015 Bronze, Best Original Research, June 2015

2016 American Society of Business Press Editors, Midwest Regional Azbee Awards Gold, Best How-To Article, March 2015 Silver, Best Original Research, June 2015

2020 Trade Association Business Publications Intl. Tabbie Awards Honorable Mention, Best Single Issue, September 2019

2016 Trade Association Business Publications Intl. Tabbie Awards

Ruth Ann Lilly GPM Investments LLC

Laura Aufleger OnCue Express

2021 Jesse H. Neal National Business Journalism Award

Billy Colemire Stinker Stores

2023 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Full Issue, September 2022 Business to Business, Retail, Single Article, March 2023

2022 Eddie Award, Folio: magazine Winner, Business to Business, Retail, Single Article, March 2022 Winner, Business to Business, Food & Beverage, Series of Articles, October 2021 Honorable Mention, Business to Business, Retail, Single Article, September 2021

2020 Eddie Award, Folio: magazine

Vito Maurici McLane Co. Inc.

Robert Falciani ExtraMile Convenience Stores

Jonathan Polonsky Plaid Pantries Inc. Greg Scriver Kwik Trip Inc.

Jim Hachtel Core-Mark

Tony Sparks Curby’s Express Market

Chris Hartman Rutter’s

Business to Business, Retail, Series of Articles, September 2019

2018 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Website Business to Business, Retail, Full Issue, October 2017

Faheem Jamal CPD Energy Corp./ Chestnut Markets

Business to Business, Editorial Use of Data, June 2017

Roy Strasburger StrasGlobal

2017 Eddie Award, Folio: magazine Winner, Business to Business, Retail, Single/Series of Articles, May 2017 Honorable Mention, Business to Business, Retail, Single/Series of Articles, June 2016

2016 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Full Issue, October 2015 Business to Business, Retail, Single/Series of Articles, August 2015

Silver, Front Cover Illustration, June 2015

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VIEWPOINT

Retail Theft in the U.S.: It’s a Crime Policy changes are needed to stem the shoplifting epidemic RETAIL THEFT COSTS RETAILERS more than $110 billion a year, according to the National Retail Federation (NRF). A recent study by Zebra Technologies, a retail solutions provider, found that eight in 10 retailers agree minimizing fraud and shrink is a significant challenge. And in the Convenience Store News 2023 Technology Study, nearly half of the c-store retailers surveyed (44 percent) said they planned to invest in technology to reduce theft and shrinkage.

Of course, all consumers bear the cost of increased theft and shrinkage, not just in higher prices, but also in the worse cases, the actual flight of retail operations from high crime neighborhoods. We’re all aware of the closings announced by such major retailers as Target, Whole Foods, Walmart, Walgreens and others, often in neighborhoods that could least afford to lose a food store, creating food deserts where people have limited access to healthy and affordable food.

Lax policies, such as reducing It’s gotten so bad in the city of Chicago that the mayor has proposed theft from a a city-owned grocery store to fill the void left by retreating retailers.

The idea has little merit, though. While a government-run store could potential felony probably sustain the inevitable losses longer than a private firm can, to a misdemeanor those losses would be borne by all the city’s taxpayers. and no-bail A better way to address food insecurity is to prevent crime and theft in stores, so they won’t have to close. Lax policies, such as reducing policies for theft from a potential felony to a misdemeanor and no-bail policies nonviolent crime, for nonviolent crime, have contributed to a nationwide shoplifting In the absence of a nationwide policy on how to deal with have contributed epidemic. shoplifting, many retailers encourage their staffers to do nothing at all in an effort to keep them safe. to a nationwide shoplifting Chicago and other major cities would be better served if they’d support legislation and enforcement of anti-shoplifting laws and epidemic. protections for retailers to allow them to prosecute thieves effectively and safely.

A month ago, more than 30 retailers went to the nation’s capital to support the Combating Organized Retail Crime Act of 2023. Joined by several congressional leaders from both major parties and the NRF, the retailers are backing bipartisan legislation to establish a national coordination center and combine expertise and resources from federal, state and local enforcement agencies and retail industry representatives to curb organized retail crime.

“It’s not only about the dollars involved here. It is about, in some cases, the tragic loss of life, the violence, the aggression that’s playing out in these retail locations,” said NRF President and CEO Matthew Shay. “Retailers have done everything they can to make their stores and their places of business safe.

And, in spite of all that, we still need additional help and additional support.

And that’s what the Combating Organized Retail Crime Act will provide us.”

C-stores, of course, are not immune from the shoplifting epidemic. They should back this legislation as a first step to stemming the flood of losses they incur from thieves.

For comments, please contact Don Longo, Editorial Director Emeritus, at dlongo@ensembleiq.com.

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CONTENTS DEC 23

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COVER STORY PAGE 20

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2024 2023

FEATURES

DEPARTMENTS

COVER STORY

EDITOR’S NOTE

20 Securing Sheetz Inc.’s Longevity Hall of Famer Joe Sheetz helps the family business shore up its future in convenience retailing.

3 A Look Back, A Look Forward The top headlines of 2023 foretell an exciting new year for the c-store industry.

26 A Passion for Convenience & Beverages Supplier Hall of Famer Kevin Martello finds working with the c-store industry the most rewarding aspect of his role at Keurig Dr Pepper.

TOP WHOLESALERS REPORT

VIEWPOINT

4 Retail Theft in the U.S.: It’s a Crime Policy changes are needed to stem the shoplifting epidemic.

10 CSNews Online 18 New Products INSIDE THE CONSUMER MIND

74 In Need of a Healthy Makeover?

C-stores can do a better job of satisfying the wants of healthconscious shoppers.

34 Onward & Upward The top wholesalers serving the convenience channel see growth despite economic speed bumps.

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GAMECIGARS.COM ©2023 SMCI Holding, Inc.

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8550 W. Bryn Mawr Ave., Ste. 200, Chicago, IL 60631 (773) 992-4450 Fax (773) 992-4455 WWW.CSNEWS.COM BRAND MANAGEMENT SENIOR VICE PRESIDENT-GROUP PUBLISHERUS GROCERY & CONVENIENCE GROUP Paula Lashinsky (917) 446-4117 - plashinsky@ensembleiq.com EDITORIAL EDITOR-IN-CHIEF Linda Lisanti llisanti@ensembleiq.com EXECUTIVE EDITOR Melissa Kress mkress@ensembleiq.com SENIOR EDITOR Angela Hanson ahanson@ensembleiq.com MANAGING EDITOR Danielle Romano dromano@ensembleiq.com

ASSOCIATE EDITOR Amanda Koprowski akoprowski@ensembleiq.com EDITORIAL DIRECTOR EMERITUS Don Longo dlongo@ensembleiq.com

INDUSTRY ROUNDUP

CATEGORY MANAGEMENT

12 The Sale of MAPCO Express Becomes Official

TOBACCO

14 Chevron to Acquire Hess in $53B Deal

ADVERTISING SALES & BUSINESS

40 Looking for Traction A lack of federal mandates and myriad state regulations stymie the CBD and cannabis categories.

15 Eye on Growth TECHNOLOGY 15 Fast Facts 16 Retailer Tidbits 16 Supplier Tidbits

CONTRIBUTING EDITORS Renée M. Covino, Tammy Mastroberte

ASSOCIATE BRAND DIRECTOR & NORTHEAST SALES MANAGER Rachel McGaffigan - (774) 212-6455 rmcgaffigan@ensembleiq.com ASSOCIATE BRAND DIRECTOR & WESTERN SALES MANAGER Ron Lowy - (330) 840-9557 - rlowy@ensembleiq.com ACCOUNT EXECUTIVE & CLASSIFIED ADVERTISING Terry Kanganis - (201) 855-7615 - tkanganis@ensembleiq.com CLASSIFIED PRODUCTION MANAGER Mary Beth Medley (856) 809-0050 - marybeth@marybethmedley.com DESIGN/PRODUCTION/MARKETING

46 The Next Generation of Stinker Stores Guided by its customers, the regional chain is evolving its approach to technology.

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ART DIRECTOR Lauren DiMeo ldimeo@ensembleiq.com PRODUCTION DIRECTOR Pat Wisser pwisser@ensembleiq.com SENIOR MARKETING MANAGER Krista-Alana Travis ktravis@ensembleiq.com SUBSCRIPTION SERVICES LIST RENTAL mbriganti@anteriad.com SUBSCRIPTION QUESTIONS contact@csnews.com

CORPORATE OFFICERS CHIEF EXECUTIVE OFFICER

Jennifer Litterick

CHIEF FINANCIAL OFFICER

Jane Volland

CHIEF PEOPLE OFFICER

Ann Jadown

CHIEF STRATEGY OFFICER

Joe Territo

CHIEF OPERATING OFFICER

Derek Estey

CONVENIENCE STORE NEWS AFFILIATIONS Premier Trade Press Exhibitor

The contents of this publication may not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for product claims and representations.

Convenience Store News (ISSN 0194-8733; USPS 515-950) is published 12 times per year, monthly, by EnsembleIQ, 8550 W. Bryn Mawr Ave., Ste. 200, Chicago, IL 60631. Subscription rates: Subscription rate in the United States: $150 one year; $276 two year; $14 single issue copy; Canada and Mexico: $204 one year; $390 two year; $17 single issue copy; Foreign: $204 one year; $390 two year; $20.40 single issue copy; Digital One year, digital $87; two year, $161. Periodical postage paid at Chicago, IL 60631, and additional mailing addresses. Copyright 2023

by EnsembleIQ. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or information storage and retrieval system, without permission in writing from the publisher. POSTMASTER: send address changes to Convenience Store News, 8550 W. Bryn Mawr Ave. Ste. 200, Chicago, IL 60631.

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CSNEWS ONLINE

TOP VIEWED STORIES

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ONLINE EXCLUSIVE

Casey’s Picks Up 22 Lone Star Food Stores

Casey’s General Stores Inc. is entering Texas with the acquisition of 22 Lone Star Food Store locations from W. Douglass Distributing Ltd. The purchase came a week after Douglass announced the sale of its wholesale business to Offen Petroleum.

Kwik Trip Begins to Restore

Systems Following Outage 2 Internal The convenience store operator recovered from an October outage that prevented customers from logging into the Kwik Trip mobile app or website and downed the company’s phones.

Court Stays Marketing Denial

Vuse Alto Menthol Pods 3 of The U.S. Court of Appeals for the Fifth Circuit granted R.J. Reynolds Vapor Co. an emergency administrative stay of enforcement, a move that temporarily puts on hold the U.S. Food and Drug Administration’s marketing denial order.

Kwik Trip Goes Live With New

Supply Solution 4 Fuel The La Crosse, Wis.-based retailer teamed up with Gravitate to launch its artificial intelligence-powered Supply & Dispatch solution, which is now live across the chain’s footprint.

7-Eleven Selects Innovative Brands

2023 Brands With Heart Initiative 5 for The 49 up-and-coming brands chosen will get the opportunity to enter a new retail channel and appear on shelves across 7-Eleven, Speedway and Stripes stores.

Terri Micklin Gets Going on Evolving GetGo’s Strategic Vision As Terri Micklin settles into her new role as president of GetGo, the convenience store industry veteran looks forward to bringing the chain’s neighborhood strategy to the forefront and building upon its legacy of putting the customer first.

“We spend a lot of time thinking like the customer. That’s sort of our mantra: think like the customer. And we know that right now, what our customers are asking for is more value,” Micklin told Convenience Store News. “They really need to stretch their dollars in today’s inflationary environment. And so, we’ve really leaned into thinking about value and quality and how we can give that to our customer base.”

For more exclusive stories, visit the Special Features section of csnews.com.

MOST VIEWED NEW PRODUCT

Wonka Magic Hat Gummies

OUT & ABOUT

Scenes From the 2023 Top Women in Convenience Awards Gala The 10th annual Convenience Store News Top Women in Convenience (TWIC) Awards Gala was both a look back and a look forward as attendees celebrated how far female leadership has come within the convenience channel and encouraged one another to take it even farther.

This year’s milestone TWIC class featured 86 established and emerging leaders, including five Women of the Year, 39 SeniorLevel Leaders, 35 Rising Stars and seven Mentors, all chosen based on impressive nominations received from their peers. The gala, held Oct. 4 at the Omni Atlanta Hotel at CNN Center, also featured the presentation of the Top Women in Convenience Corporate Empowerment Award to Fort Worth, Texas-based Yesway.

Ahead of the debut of Warner Bros. Pictures’ “Wonka” in December, Ferrero Group’s Wonka Candy brand introduces Wonka Magic Hat Gummies.

Each pack includes an assortment of top hat-shaped gummies in four flavors: Strawberry Watermelon, Raspberry Grape, Orange Strawberry and Magic Berries. The gummies are available in both 4-ounce and 6-ounce bags with suggested retail prices between $1.99 and $3.69. To coincide with the launch, Wonka Candy and Warner Bros. are running the “Dream it & Do it Sweepstakes,” which gives fans the chance to win a VIP tour of Warner Bros. Studios and other prizes.

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INDUSTRY ROUNDUP

The Sale of MAPCO Express Becomes Official Couche-Tard and Majors Management split the portfolio spread across the southern United States ALIMENTATION COUCHE-TARD INC. and Majors

Management LLC closed on their acquisitions of MAPCO Express Inc.’s portfolio in separate transactions. Previously a subsidiary of COPEC, a leading South America-based retail company, MAPCO operated more than 300 convenience stores across Tennessee, Alabama, Georgia, Arkansas, Kentucky and Mississippi.

Laval, Quebec-based Couche-Tard, parent company of the global Circle K brand, picked up 112 company-operated fuel and convenience retail sites from MAPCO, along with a surplus property and a logistics fleet. Most of the real estate is owned.

“We are pleased to welcome these MAPCO stores and their great team members into the Couche-Tard family and look forward to their integration,” said Alex Miller, chief operating officer at Couche-Tard. “As we continue to grow our presence across the southern U.S., we are excited to bring the Circle K experience to new customers in Georgia, Tennessee, Alabama and Kentucky.”

In a separate transaction, Lawrenceville, Ga.-based Majors Management acquired 192 MAPCO-branded stores in Tennessee, Alabama, Georgia, Mississippi, Arkansas and Kentucky, as well as the retailer’s wholesale fuel division, loyalty program, brand and other intellectual property.

According to the buyer, this deal will leverage the collective knowledge, experience and resources of both organizations, allowing Majors to expand its reach and offering to customers in new and existing markets. MAPCO customers and partners can expect a seamless transition.

“The acquisition of MAPCO aligns perfectly with our long-term growth and expansion plans,” said Majors President Ben Smith.

“We are confident that this transaction will bring together the strengths and expertise of two industry leaders to better serve the evolving needs of customers and markets.

We are committed to growing the MAPCO brand and loyalty program, and keeping MAPCO’s highest standards of service and quality to customers.”

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INDUSTRY ROUNDUP

Chevron to Acquire Hess in $53B Deal The all-stock transaction is expected to close in the first half of 2024 A RECENT ACQUISITION play is set to shake up

the oil and gas industry.

San Ramon, Calif.-based Chevron entered into a definitive agreement to acquire all the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on Oct. 20.

Shareholders of New York-based Hess will receive 1.0250 shares of Chevron for each Hess share. The total enterprise value of the transaction, including debt, is $60 billion.

According to Chevron, this purchase will upgrade and diversify the company’s already advantaged portfolio. The Stabroek block in Guyana is expected to deliver production growth into the next decade. Additionally, Hess’ Bakken assets add another leading U.S. shale position to Chevron’s DJ and Permian basin operations and further strengthen domestic energy security.

“This combination positions Chevron to strengthen our long-term performance and further enhance our advantaged portfolio by adding world-class assets,” said Chevron Chairman and CEO Mike Wirth. “Importantly, our two companies have similar values and cultures with a focus on operating safely and with integrity, attracting and developing the best people, making positive contributions to our communities, and delivering higher returns and lower carbon.”

The combined company is projected to grow production and free cash flow faster and for longer than Chevron’s current five-year guidance.

Hess CEO John Hess is expected to join Chevron’s board of directors.

The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the first half of 2024.

The acquisition is subject to Hess shareholder approval, as well as regulatory approvals and other customary closing conditions.

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Eye on Growth

Alimentation Couche-Tard Inc. is expected to close on its acquisition of certain European retail assets from TotalEnergies SE following a decision not to oppose by the European Commission. The deal includes 2,193 sites in Germany, Belgium, the Netherlands and Luxembourg.

An affiliate of Petroleum Marketing Group Inc. acquired the assets of Springer Eubank Co. Inc. The deal comprised Springer Eubank’s travel center and convenience and gas division (TC&G Division), as well as its delivered fuels and fuel transport divisions.

RaceTrac Inc. will open the doors to its first Indiana convenience store in mid-December.

Located in Indianapolis, the store will serve the area’s small to midsize fleet drivers and construction vehicles with an expanded diesel offering.

U.S. Petroleum Partners Tri Lakes LLC purchased Barrick Enterprises Inc. and the associated B&R Trucking Inc., headquartered near Detroit. Following the acquisition, USPP Tri Lakes now represents all major fuel brands.

Twenty-three Lone Star Food Stores, which are owned and operated by a Douglass affiliate, were not included in the sale to Offen.

Offen Petroleum acquired the wholesale business of W. Douglass Distributing Ltd. and its affiliates. Douglass distributes more than 200 million gallons of fuel annually.

Buc-ee’s is taking the wraps off its first travel center in Missouri in December.

Buc-ee’s Springfield occupies 53,000 square feet and has 120 fueling positions.

Kum & Go opened the doors to its first bistro-style location in Missouri. This year, the convenience retailer has opened eight Bistro locations across six states.

Holiday Stationstores LLC purchased 14 Holiday franchised fuel and convenience stores from Coborn’s Inc. The transaction also includes one development site. Coborn’s entered the c-store business in 1986 with Little Dukes stores and converted 14 locations to Holiday franchised stores in 2006.

FAST FACTS

12%

Convenience store loyalty programs generate the highest increase in check sizes vs. full-service and quick-service restaurants, with c-store loyalty member checks 12% higher.

4.4% 3

Beverage sales in the convenience channel were up 4.4% in the third quarter of 2023, compared to a 6.6% increase in the second quarter.

Three product categories have experienced especially high growth in 2023: alternative snacks, liquor and wine.

— Goldman Sachs “Beverage Bytes”

— PDI & GasBuddy

— Paytronix

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INDUSTRY ROUNDUP

Retailer Tidbits Beginning in 2024, the Tesla units will be rolled out to key sites across the bp family of brands, including TravelCenters of America.

Supplier Tidbits

Following the pilot of a new made-to-order program at select locations, Twice Daily is launching the customizable offering across its network of convenience stores. The mobile ordering feature on the Twice Daily app has been updated accordingly.

BP Pulse, the electric vehicle (EV) charging business of bp, will acquire ultra-fast charging hardware units from Tesla for $100 million. This marks the first time the hardware for Tesla’s chargers is being purchased for an independent charging network.

Plaid Pantry teamed up with Electric Era Technologies to open its first proprietary PowerNode EV fast-charging station at a convenience store in Portland, Ore. The installation is the first of its kind for Electric Era’s patented AC-coupled microgrid EV fast-charging technology.

Circle K renewed its partnership with Upside for fuel-related offers at more than 5,200 convenience stores. Upside is also introducing cashback opportunities for in-store merchandise at more than 4,000 Circle K locations across the United States.

Majors Management LLC signed an agreement with Noble Roman’s Inc. to develop 100 new Noble Roman’s franchise locations. As part of the deal, Majors committed to opening 81 locations by Dec. 31, 2024.

Alimentation Couche-Tard Inc. is selling 25 Mac’s, Circle K and Couche-Tard sites in Canada’s Alberta, Ontario, Quebec and Saskatchewan markets. Of the 25 sites, six sell fuel with the balance being a convenience store only.

McLane Co. Inc. was recognized as Service Provider of the Year by the National Coalition of Associations of 7-Eleven Franchisees (NCASEF). Board members unanimously selected McLane, commending the distributor for being a committed and fully engaged vendor partner.

Harbor Wholesale completed its rebranding of MTC Distributing in Modesto, Calif., to Harbor Wholesale. Harbor acquired MTC in late 2022, which has allowed the distributor to expand its service footprint down the West Coast.

Ferrara will acquire Jelly Belly through CTH Invest, the lead holding company of Ferrara. Financial terms of the deal were not disclosed.

Ferrara Candy Co. will add to its sugar confections portfolio with the acquisition of Jelly Belly Candy Co. Jeff Brown, who is currently the executive vice president of global operations and distribution at Jelly Belly, will become its CEO. Philip Morris International submitted premarket tobacco product applications and modified risk tobacco product applications for IQOS ILUMA with the U.S. Food and Drug Administration.

IQOS ILUMA products are currently available in 27 markets internationally.

Mars Snacking and its Skittles brand entered into a collaboration with Uber and Uber Eats for on-demand snack delivery. The new campaign is active in several markets, including Atlanta; Cincinnati; Dallas; Houston; Daytona Beach, Orlando and Melbourne, Fla.; Nashville, Tenn.; and Phoenix and Prescot, Ariz.

Lula Convenience entered into a strategic partnership with Core-Mark International. The collaboration provides Core-Mark’s network of retail stores with access to third-party delivery platforms while simultaneously streamlining store operations.

Cantaloupe Inc. was recognized as a 2023 Champion of Board Diversity by the Forum of Executive Women, a Greater Philadelphia women’s organization. This is the third year in a row that Cantaloupe has been honored.

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NEW PRODUCTS

Ice Breakers Raspberry Lemon Sparkling Seltzer Mints The Hershey Co. introduces its latest breath mint creation, Ice Breakers Raspberry Lemon Seltzer Sparkling Mints. According to the company, these mints combine the brand’s classic flavor crystals with a new, effervescent seltzer sensation that’s sure to make taste buds tingle.

Pairing the tangy sweetness of raspberry with the zesty burst of lemon, the mints deliver a bubbly fizz reminiscent of sipping a flavored seltzer water. Ice Breakers Raspberry Lemon Seltzer Sparkling Mints are available in 1.5-ounce packs nationwide.

THE HERSHEY CO. • HERSHEY, PA. • ICE-BREAKERS.COM

Cheetos Pretzels New from Frito-Lay North America, the Cheetos brand enters a new category with the debut of Cheetos Pretzels. With two distinct sides — one covered in the brand’s orange Cheetle dust and the other a classic pretzel — each bite of these crispy wheat pretzels gives the perfect amount of flavorful crunch, according to the maker. Two varieties, Cheetos Pretzels Cheddar and Cheetos Pretzels Flamin’ Hot, can be purchased at retailers nationwide in 10-ounce bags for $5.69 and in 3-ounce bags for $2.49.

FRITO-LAY NORTH AMERICA • PLANO, TEXAS • FRITOLAY.COM

BirdShack Fried Chicken Relaunch BirdShack Fried Chicken, a licensed brand from Chester’s Chicken, is making a comeback. The company introduced a revamped core menu focused on fan favorites, including tenders, bone-in chicken, fried chicken sandwiches, biscuits, wedges, mac & cheese, and dipping sauces. Optional add-ons include boneless wings, additional sides and snacks. Originally launched in 2017, the revamped BirdShack is designed for in-store operators to enjoy the benefits of a branded platform without startup or ongoing marketing fees or royalties, while being able to utilize their existing store setup and equipment.

BirdShack operators sign one-year licensing agreements with no upfront fees, and have access to an evergreen in-store marketing program.

CHESTER’S CHICKEN • BIRMINGHAM, ALA. • BIRDSHACKCHICKEN.COM

Chobani Zero Sugar Drinks Chobani introduces Zero Sugar Drinks, a line of protein-packed drinks designed to take advantage of the growing market for yogurt-based beverages. They are made using natural fermentation, where live and active yogurt cultures and probiotics eat the sugars found in milk. The drinks are also sweetened with natural sugar alternatives, are free of lactose and preservatives, serve as a good source of calcium, and are only 50 calories per 7 fluid ounces. The single-serve bottles are available in four flavors: Mixed Berry, Peaches & Cream, Strawberry Cheesecake and Milk & Cookies. The suggested retail price is $1.99.

CHOBANI LLC • NEW BERLIN, N.Y. • CHOBANI.COM

PanelRak Modular Organizing System Food Concepts Inc. presents PanelRak, a modular organizing system for display of retail merchandise. The design adapts to myriad needs, such as hot and cold beverage stations, roller grill and hot food condiment displays, transaction counter displays, cash wraps, center store retail displays, end caps and shoparounds. Available in both wall-mounted and countertop versions, PanelRak features an array of durable metal slotted panels in various sizes. Complementing these panels are a wide selection of baskets, hanging shelves, pegs and hangers.

PanelRak is now available in either preassembled kits or select individual components and custom solutions, with both stock and customized graphic header options.

FOOD CONCEPTS INC. • MIDDLETON, WIS. • PANELRAK.COM 18 Convenience Store News C S N E W S . c o m

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Lenny & Larry’s Cookie-fied Big Bar Lenny & Larry’s launches its newest innovation, the Cookie-fied Big Bar, a larger version of the company’s Cookie-fied Bar. Delivering 24 grams of plant-based protein, the Cookie-fied Big Bar is available in two varieties: Cookies & Creme, a blend of sweet white chips and crunchy cookie bits; and Peanut Butter Chocolate Chip, a peanut butter base combined with chopped peanuts and creamy chocolate chips, topped with cookie pieces.

Both bars are certified vegan, Non-GMO Project Verified and contain no soy, high fructose corn syrup, artificial sweeteners or sugar alcohols. Single bar options will be available for a suggested retail price of $2.33 in select convenience stores in early 2024.

LENNY & LARRY’S • LOS ANGELES • LENNYLARRY.COM

ONE Puffs ONE Brands enters the salty snack arena with the introduction of ONE Puffs. The protein bar maker aims to offer the traditional cheese puff experience — complete with cheese dust — while delivering its iconic punch of protein. ONE Puffs have 14 grams of protein and between 3 to 4 net carbs while clocking in at 150 calories per serving. The puffs are currently available in two flavors, Shreddin’ Cheddar and Spicy Nacho.

They are available nationwide as either individual bags or cases of 10.

ONE BRANDS • BROOMFIELD, COLO. • ONE1BRANDS.COM

breathROX Mints Popping breath mints brand breathROX is now available in retail stores for the first time. According to the company, the zinc in the breath mints helps neutralize gasses produced by oral bacteria that cause bad breath, while the popping action activates saliva production and the popping pieces scrub teeth and gums. The breathROX mints are available in three flavors — Mint Burst, Cinnamon Explosion and Watermelon Eruption — for a suggested retail price of $3.99 or $1.99 wholesale.

BREATHROX • SPARKS, NEV. • BREATHROX.CARRD.CO

SurgePays Customer-Facing LCD Tablets SurgePays Inc., a multiproduct company focused on the underbanked and underserved, joins with ClearLine Mobile Inc., a software development and point-of-sale equipment company, to launch a customer-facing LCD tablet interface for convenience store checkout registers. The 10-inch LCD touchscreen hardware is integrated into the SurgePays software platform and will market SurgePays products 24/7 with ads controlled from a central server. C-store customers can use the device to sign up for the Federal Affordable Connectivity Program, and conduct wireless activations or payment transactions right at the register while checking out.

SURGEPAYS INC. • BARTLETT, TENN. • SURGEPAYS.COM

Alto-Shaam ChefLinc 2.0 Alto-Shaam introduces ChefLinc 2.0, the latest update of its cloud-based remote oven management system. The update features the addition of the Alto-Shaam Global Library, which gives operators access to a global recipe library; and a series of additional new reports available via the dashboard to provide greater insight into how each oven is being operated and maintained. The company also implemented several infrastructure improvements to enhance the user experience, including faster load times on data and report generation, enhanced error messages with resolution instructions, enhanced security features, and an API to connect ChefLinc to existing internal systems.

ALTO-SHAAM INC. • MENOMONEE FALLS, WIS. • ALTO-SHAAM.COM/CHEFLINC DE CE MBE R

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COVER STORY

2023

SECURING SHEETZ INC.’S LONGEVITY Hall of Famer Joe Sheetz helps the family business shore up its future in convenience retailing

By Danielle Romano THE SHEETZ FAMILY name and Sheetz

Inc. have become synonymous with convenience retailing. What started in 1952 as a single convenience store has evolved into one of America’s fastest-growing family-owned and -operated c-store chains with more than 700 stores across a sixstate footprint — and still expanding — and more than 25,000 associates.

Family leadership has been a hallmark of Sheetz Inc. since the company’s beginnings in Altoona, Pa., more than 70 years ago.

Keeping a Sheetz family member at the helm is intentional, but there are fairly newer structures in place to ensure the company’s longevity should a Sheetz choose not to take over or cannot fulfill the role.

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“We do feel that we keep our name on the building because our family name is our trade name. We don't have some generic name on the type of store we operate; it's Sheetz. In some ways, the family and the brand have become synonymous,” Joe Sheetz, who was appointed Sheetz Inc.’s chairman of the board of directors earlier this year, told Convenience Store News.

“We've built a pretty good brand, and it feels so much more comfortable for us to have somebody from the family leading the effort. However, we've taken steps to make sure this place could run very well if we don’t have somebody who’s willing or able to do it because we would never put somebody who’s not qualified to do it in a position just because they have the name,” he said.

At one point in time, Joe didn’t know he would take on any executive leadership role at the family business, let alone sit at the top one day, nor did he know the role he’d play in shoring up the family’s and Sheetz Inc.’s longevity in convenience retailing.

Joe, who was officially recruited to Sheetz Inc. in 1995, came aboard as director of personnel. After a year and a half, he was promoted to chief financial officer. As the years progressed, he took on increasing responsibilities, adding more and more departments to his oversight — from human resources to finance, accounting, IT, real estate, construction and store development. It had gotten to the point where he wasn’t even sure what his title should be.

All of these roles were preparation for his eventual rise to president and CEO in 2013, a position he held until 2018. He served solely as CEO until December 2021.

“Before I even took over, we had a sort of check-in meeting with the family to ask, what’s the long term here? Is this going to remain a family business? The answer to that ended up being a very emphatic yes,” Joe recalled. “I said, well, if that’s the case, we need to put a different structure together.”

With that, the then-CEO spearheaded one of the most important projects that would secure Sheetz Inc. for the future: the creation of a formal fiduciary board of directors.

Today, the Sheetz Inc. board of directors

Sheetz Inc. is one of America’s fastest-growing family-owned and -operated c-store chains with more than 700 stores across a six-state footprint.

brings valuable and different perspectives to the company's strategy and long-term vision through a mix of inside and outside expert views.

The board's goal is to hold senior leadership accountable to growing the company and operating with the company's shareholders' best interests in mind.

When it was established, the board was a sort of cultural change for the company, Joe acknowledged. “Everybody's got to go to the board for certain things and for certain feedback or for certain approvals.

So, there was a transition that needed to happen, almost a cultural transition at the upper level that I needed to make sure went well so that this board would then perpetuate itself and it would just be the way things are hopefully forever,” he said.

To ensure future successors for the company, another important structure was set up with the intention of preparing future Sheetz family members for potential leadership across the organization.

Rotational programs allow these potential leaders to gain exposure across multiple departments and “get a well-rounded view of what we do,” Joe explained.

“We had to get this family talent pool the development they deserve and the experiences they need, and set us up for the next generation or two,” he said.

DE CE MBE R

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COVER STORY

During Joe Sheetz's tenure as CEO, the chain remodeled and rebuilt hundreds of stores to keep its assets fresh.

A Family Affair For his leadership, business acumen and dedication to the c-store industry, Joe Sheetz is this year’s retailer inductee into the 2023 Convenience Store News Hall of Fame. He was previously honored as the Retailer Executive of the Year by CSNews in 2018.

Joe is the third Sheetz family member to be inducted into the Hall of Fame. His uncle, Steve Sheetz, was inducted in 1995, followed by his cousin Stan Sheetz in 2013.

“I've spent a little more than half of my life working full-time here, and that doesn't even count every summer when I was in high school and when I was in college. To have some recognition for all those hours and all that hard work, it feels good because

“We don't have some generic name on the type of store we operate; it's Sheetz. In some ways, the family and the brand have become synonymous.”

— Joe Sheetz, Sheetz Inc.

you're never doing it for those reasons. And in some ways, time flies and you don't even realize how long you've been doing it,” Joe said. “But it is definitely an honor — especially because it's happened before in my family. It's always nice to live up to your mentors; in my case, my cousin and my uncle who preceded me.”

As the new board chairman of Sheetz Inc., Joe also succeeds those two family members, filling the role previously held by Stan, who served from October 2013 to February 2023, and Steve, who served from October 1995 to October 2013. Stan will remain an active member of the board, while Steve will maintain a role as director emeriti.

Travis Sheetz, Joe’s brother, succeeded him as CEO in 2022. As board chairman, Joe will oversee the board's activities as they relate to corporate governance and risk, executive appointments and compensation, and long-term planning.

Something he learned as CEO that he plans to carry with him in his new role of chairman is the importance of delegating or, as he puts it, “Sit in the middle and direct the orchestra.”

“I spent a lot of time evaluating the CEO position when I was in it and tried to really look at the things that are necessary in a company our size, but are highly distracting to the CEO and take away from your ability to be as good as you can be running the operation. Things like government relations and interaction with shareholders,” Joe explained.

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COVER STORY

“I think we'll feel our way through the role for a couple of years and see what makes sense to keep under this role and maybe what makes sense to put somewhere else in the company. But at our size, you can't leave the CEO alone and say, ‘You're in charge of everything.’ We need a structure where that job is manageable and makes sense,” he added.

High-Growth Mode With the decision that Sheetz Inc. would remain a family-run business, reinvesting in its assets became another central tenent of Joe Sheetz’s tenure as CEO. Under his watch, Sheetz Inc. rebuilt and remodeled hundreds of stores “because if you’re making the commitment that we’re in this, then you’ve got to keep your assets fresh,” he stressed.

“We had done a great job of growing, but we really weren't going back enough to those stores that were 20 or 30 years old.

We were doing some cosmetic stuff, but our model had changed so much. Food had grown so much and we needed space, and we needed space set up in a certain way,” Joe recounted. “So, you really had to do it if you were going to have longevity. We built around 175 stores in my eight years as president and CEO, but we rebuilt and remodeled even more than that.”

Fast forward to today and Sheetz Inc. is prepared for long-term growth. This past September, the chain marked a milestone with the opening of its 700th convenience store.

At the end of 2022, the company announced plans to expand into a new market, with the first Sheetz store in Michigan expected to open in Detroit at the end of 2024. Its move into the Great Lakes State marks the first time Sheetz Inc. has expanded into a new state in nearly two decades — when it opened its first store in North Carolina in 2004.

When asked if 1,000 stores is still the gameplan for Sheetz Inc., as he told CSNews back in 2015, Joe said the culmination of that journey is probably only five or six years away.

“We are absolutely in high-growth mode right now. We did 45 stores this past year and we’re going to do 55 stores next year, so it’s definitely going to happen,” he shared. “We feel good about our model

Joining the Family Business For some, the convenience channel is an industry that offers them their first-ever job, which they will choose to leave at some point, or commit to and turn into a long-term career.

For others, it’s growing up in a family business that they may eventually lead one day. For Joe Sheetz, this year’s retailer inductee in the Convenience Store News Hall of Fame, both of these paths converged — even though for a time he thought they wouldn’t.

“Probably my first remembrance is that when I was born, I lived in the apartment above Store No. 1. So, I was literally born into the convenience store business,” he recalled.

While it may seem a no-brainer to join the family business, Joe wasn’t sure if he would make a career of it. When he began helping out at age 16, Sheetz Inc. was “growing like crazy” back then for its size, he said. The self-proclaimed “numbers kid” was planning to be a business major, so he assisted around the corporate headquarters in the accounting and finance office, keeping track of construction project bills and taking on other tasks.

During summer vacations and on school breaks through the remainder of high school and college, Joe continued to serve as an unofficial intern, helping out whatever department needed some extra support at the time.

“It was great because I got a very cross-functional view of, at the time, what we did. So, I understood the business. Not to mention the fact that when you're in the family, you can't escape it. It's just the topic of conversation all the time.”

Upon his graduation from The Wharton School of the University of Pennsylvania, Joe began a career working for a pension and benefit consulting firm in the Philadelphia area.

He was at the firm for nearly seven years and at that point, there was no master plan, nor was there any plan that he was going into the family business at some point. But what he didn’t know at the time was that back home in Altoona, Pa., employee issues were moving to the forefront at the family business and there was a need for someone to manage the financial side of human resources — items such as compensation plans, retirement plans, benefit plans, etc.

Joe was recruited by his uncle, Steve Sheetz, the then-CEO who believed his nephew’s previous experiences at Sheetz Inc. and the consulting firm made him an ideal fit for the job.

Acknowledging the needs of the family business, coupled with he and his wife’s readiness to settle down and start their own family, Joe joined Sheetz Inc. in 1995 as director of personnel.

After a year and a half, he was promoted to chief financial officer. As the years progressed, he took on increasing responsibilities, adding more and more departments to his oversight.

He eventually served as president and CEO from 2013 to 2018, and served solely as CEO until December 2021. Today, he is chairman of the Sheetz Inc. board of directors.

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Family leadership has been a hallmark of Sheetz Inc. since the company’s beginnings in Altoona, Pa., more than 70 years ago.

and what we’ve been building. We feel good about the geography that we have in front of us because it doesn’t have anything like us.”

new definition of convenience. With this mindset, he and many other company leaders have often said that it is Sheetz Inc.’s mission to constantly reinvent itself and put the Sheetz as consumers know it today out of business.

A Front-Row Seat to Change

“The beauty of that vision statement, and it's been around for a long time, is you can take it in a lot of different directions. I think what we really intended it to be was if we opened a new store that we're opening today next to one of our stores that had been there for 10 years, the new store would literally put the old one out of business,” the industry veteran said, citing multiple factors such as the physical look of the store, the flow, the offers, etc.

When he reflects on how much the convenience store industry has changed during the course of his 30 years at Sheetz Inc., the newest Hall of Famer says he is most surprised by how complicated the business has gotten.

“It feels like our roots were that you found a location that was convenient to a neighborhood or highway, you built a building and you packed it full of products, and you sold stuff. If it didn’t sell, you replaced it. But if it sold a lot, you doubled your inventory. It was very much a merchant mentality of how to run the store,” he explained. “Now, you drive around here [Altoona] today and we’re running our own distribution centers and our own commissaries and bakeries. And we're delivering almost everything we sell to ourselves, and we're trucking our own fuel and we're buying our own fuel and we're trading fuel with people all over the country. And it has just gotten very complicated.”

These complications were born of necessity, Joe admits, noting the way the world has changed and consumers’

“We're going to do a whole lot of different things and we're going to attract people for different primary visit reasons. We're going to attract people that come to us on Tuesday and use us one way, and when they come to us on Thursday, they’re going to use us in a different way,” Joe said. “So, it’s about having the right offer, the products and services to do that. And then to make their life easy, have the technology, the payment systems, the payment options, the ordering options, the pickup or delivery options that just take that friction out of the whole experience. We've got an opportunity to fill in some needs customers have.”

The convenience store industry is “in good shape,” according to Joe. As long as the industry keeps evolving and has people who are committed to the continual change of upgrading their facilities and shaking up their offers. “Because there's no way the general public's going to stop changing. But it's been a crazy 30 years in my case,” he said. CSN

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COVER STORY

A Passion for Convenience & Beverages Supplier Hall of Famer Kevin Martello finds working with the c-store industry the most rewarding aspect of his role at Keurig Dr Pepper

By Tammy Mastroberte A JOB AS a produce clerk and bag boy with

the Florida-based supermarket chain Kash n’ Karry started Kevin Martello’s career in the food and beverage industry when he was in grade school.

As an adult, he worked for a food broker and sales agency, becoming a principle with Austin Nichols & Co. managing the sales of Yoo-hoo and Orangina. This started his journey with what is now Keurig Dr Pepper (KDP) and for nearly 35 years, he has worked with multiple retail formats and the company’s iconic brands including Dr Pepper, Snapple, Sunkist, 7Up, Canada Dry and more.

Of all the retail formats he’s worked with, the convenience store industry is what fuels his passion.

“Convenience retail is the most rewarding aspect of the business — it brings challenges, but it is purposeful and has been my passion for the span of my career,” said Martello, this year’s supplier inductee into the 2023 Convenience Store News Hall of Fame. “The collaboration among many of our retail partners is unlike any other channel I’ve managed in my career. There is a distinct appetite for learning, testing and applying key learnings generated by the sharing of information in the c-store channel that stems from a shared vision for a consumer-first approach.”

Additionally, the support that both the industry and especially the retailers themselves provide in local communities is unlike any other channel of trade, he explained, noting that “convenience retailers are truly a part of the fabric of the communities in which they operate and serve.”

In his role today as vice president, food service solutions and industry relations for convenience retail at Keurig Dr Pepper, Martello oversees a national team of sales representatives who provide beverage solutions across the convenience store sector. He also supports KDP’s efforts within the industry through associations,

Kevin Martello got his start in the food and beverage industry when he was in grade school.

“Convenience retail is the most rewarding aspect of the business — it brings challenges, but it is purposeful and has been my passion for the span of my career.”

— Kevin Martello, Keurig Dr Pepper

events and advocacy — something he is very proud of.

He is not only a former chairman of the NACS Supplier Board, but also currently serves as the Nominating Chair, along with being part of the NACS Political Action Committee.

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COVER STORY

2022 Hall of Famer Brent Cotten (right), vice president of customer and industry affairs at The Hershey Co., presented Kevin Martello with his award.

“There is a distinct appetite for learning, testing and applying key learnings generated by the sharing of information in the c-store channel that stems from a shared vision for a consumer-first approach.”

— Kevin Martello, Keurig Dr Pepper

These days, Martello is focused on planning for the next year with KDP’s retail partners as there is a lot of excitement around product launches, innovation and marketing within the company’s portfolio of packaged and hot/cold dispensed beverages, he noted.

“Every day is a new day, and each day presents something new and fresh for our team to consider,” he

said. “We are laser-focused on creating opportunities in partnership with our retail partners to surprise and delight their guests — packaged and dispensed beverages play a key role — and to support our retailer partners by driving trips in-store, increasing food and beverage attachment rates, and growing overall baskets.”

Words of Wisdom What Martello loves most about his job is working with the people in his company and its partners to create solutions that improve business, while establishing KDP as an “indispensable partner and trusted advisor” in the industry.

Throughout his career, he received many pieces of advice that helped him on his path of growth, but there are two key moments that stand out as advice he still remembers and relies on today.

The first was from a colleague who told him to “get off the wall and put out your hand.” This advice pertained to networking and creating connections with the people around him. “It pertained to the simple notion of an introduction — a handshake can build your network and grow your influence and support,” he explained.

The second piece of advice was to “never

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For nearly 35 years, Kevin Martello has worked with multiple retail formats and Keurig Dr Pepper’s iconic brands including Dr Pepper, Snapple, Sunkist, 7Up and Canada Dry.

bring a problem to the table without a potential solution.” While you may not have the final solution, Martello said you must be prepared, do the homework and establish a firm point-of-view for how to solve the issue.

to evolve,” he said. “We’ve seen retail platforms across various channels and foodservice outlets adapting their business models to win over the ‘traditional’ convenience retail occasion. These changes have been amplified by increased digital and social capabilities, as well as the speed of the transaction.”

Navigating Changes & the Future

As for the future of the convenience store industry, Martello believes there will continue to be a “deeper shopper activation” driven by the rise in engaging digital marketing campaigns both inside and outside the store.

Throughout his many years in the beverage industry, Martello has witnessed a lot of change.

Looking back, he says he’s enjoyed the “very exciting segment” of packaged and dispensed beverage in the convenience space, and has witnessed the constant evolution and creation of new products and segments.

He has also watched as the c-store industry has changed and evolved over the years.

“Among the most notable changes is how the definition of convenience continues

He also believes c-store retailers will continue to focus on encouraging more trips to the store, converting shoppers from outside to inside, and increasing sales. Building loyalty and increasing the overall basket size of shoppers will remain front and center, he predicted, pointing out that marketing programs can help with this.

“Marketing programs that incentivize beverage and food bundling are a great way to engage shoppers across dayparts with not only packaged and dispensed beverages, but also salty snacks, candy and freshly prepared categories,” he said. CSN

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FEATURE

2023

ONWARD & UPWARD The top wholesalers serving the convenience channel see growth despite economic speed bumps

By Angela Hanson WHOLESALERS SERVING the convenience store industry are taking a big-picture perspective as they prepare to close out the year and make plans for 2024, with inflation and national economic news topping their list of concerns, along with pressure on the tobacco category.

Still, many distributor companies are expanding their investments in order to keep pace with the evolving industry, giving significant attention to technology and foodservice.

According to the findings of the 2023 Convenience Store News Top Wholesalers Report survey, the supply chain snags that were cited as a top concern last year didn’t hinder growth this year. The top five convenience channel wholesalers — McLane Co. Inc., Performance Food Group, HT Hackney Co., National Convenience Distributors LLC and Imperial Super Regional Distributor/S. Abraham & Sons Inc. — reported that total sales increased 9.3 percent year over year.

Meanwhile, the top 15 wholesalers serving the c-store industry saw sales grow 9 percent year over year.

Average sales per company hit $6.49 billion, up from $5.3 billion a year ago, while average sales per warehouse reached $612 million, up from $422 million in 2022.

Last year, wholesalers overwhelmingly cited the labor shortage, including a tight supply of qualified truck drivers, as the biggest issue impacting their business.

While this year’s survey respondents indicated that they still struggle with staffing and drivers, they ranked increased retailer consolidation after their top concerns of the economy and tobacco pressure.

The tobacco category is particularly relevant to convenience channel wholesalers as cigarettes and other tobacco products (OTP) remain their top two moneymakers, with cigarettes generating 69.5 percent of sales and OTP generating 12.4 percent.

While foodservice remains a distant No. 3, currently generating 4.9 percent of sales, the category’s growth in in-store sales and overall industry importance is prompting wholesalers to add new foodservice offerings and/or enhance existing programs.

Among the offerings respondents rolled out within the past year were both made-to-order and grab-and-go

Top Wholesalers Summary TOTAL SALES (Percent change vs. year ago):

Top 15 wholesalers

$97.3 billion (9.0%)

Top 5 wholesalers

$88.6 billion (9.3%)

AVERAGE SALES PER:

Company

$6.49 billion

Warehouse

$612 million

Percent of Sales

by Category Cigarettes

69.5%

Other tobacco products

12.4%

Foodservice

4.9%

Candy

4.6%

Salty snacks

2.9%

Grocery

2.6%

All other*

3.1%

*All other includes general merchandise, health & beauty care, fresh produce, CBD products, gourmet/natural/specialty food, and other products.

initiatives, such as proprietary chicken, pizza and fresh sandwich programs, and protein and bread for buildyour-own sandwich programs.

Some wholesalers noted that they are expanding their proprietary offerings in other categories through private label snacks, coffee and candy, continuing a trend from 2022. Additionally, some respondents reported they expanded into seasonal and specialty candy in the past year.

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11/30/23 3:03 PM

FEATURE 2023

Rank

Company/Headquarters

Latest FY1 (millions)

Previous FY (millions)

% change

1

McLane Co. Inc., Temple, Texas 2

$53,200

$49,400

7.7%

2

Performance Food Group, Richmond, Va. 3

$24,120

$20,603

17.1%

3

HT Hackney Co., Knoxville, Tenn.

$5,500

$5,500

0.0%

4

National Convenience Distributors LLC, Farmingdale, N.Y. 4

$3,084

$2,787

10.7%

5

Imperial Super Regional Distributor/S. Abraham & Sons Inc., Elmwood, La. 5

$2,741

$2,828

17.8%

Trading Area

50 states

Locations Served

Deliveries per Week

n/a

n/a

50,000

n/a

n/a

n/a

10,475

17,300

6,300

7,600

5,700

5,800

6,000

n/a

AR, AZ, CA, CO, FL, GA, IA, IL, IN, KY, MA, ME, MI, NC, NV, OH, OR, PA, TX, UT, WA, WI AL, AR, FL, GA, IA, IN, KY, LA, MD, MI, MO, MS, NC, OH, PA, SC, TN, TX, VA, WV

CT, DC, DE, FL, MA, MD, ME, NH, NJ, NY, PA, RI, VA, VT

AL, AR, FL, GA, IL, IN, KS, KY, LA, MI, MO, MS, NC, OH, OK, PA, SC, TN, TX, WI, WV AR, CO, DE, FL, GA, IA, ID, IL, IN,

6

AMCON Distributing Co., Omaha, Neb. 6

$2,497

$2,353

6.1%

KS, KY, LA, MD, MN, MO, MS, MT, NC, ND, NE, NM, OH, OK, PA, SD, TN, TX, UT, VA, WI, WV, WY

7

Harbor Wholesale, Lacey, Wash. 7

$1,300

$1,050

23.8%

8

GSC Enterprises, Sulphur Springs, Texas

$973

$973

0.0%

AL, AR, FL, GA, KS, LA, MO, MS, NE, NM, OK, TX

n/a

n/a

9

Cooper-Booth Wholesale Co., Mountville, Pa.

$938

$861

8.9%

DE, MD, NC, NJ, PA, VA, WV

1,100

1,805

10

Southco Distributing Co., Goldsboro, N.C.

$849

$889

-4.5%

GA, NC, SC, TN, VA

1,200

1,309

11

Chambers & Owen Inc., Janesville, Wis.

$595

$585

0.8%

IA, IL, MI, MN, WI

1,113

1,189

12

Capitol Distributing, Caldwell, Idaho

$452

$363

24.5%

AZ, CA, CO, ID, NV, OR, UT, WA

860

1,400

13

Topicz, Cincinnati 8

$438

$420

4.3%

IN, KY, OH, WV

1,000

1,200

14

Tripifoods Inc., Buffalo, N.Y.

$330

$345

-4.3%

IN, NY, OH, PA, WV

1,200

800

15

Stephenson Wholesale Co. Inc. dba Indian Nation Wholesale Co., Durant, Okla.

$329

$335

-1.8%

NM, OK, TX

1,800

2,530

AK, CA, ID, NV, OR, WA

Footnotes: 1

FY = Fiscal year Berkshire Hathaway is McLane's corporate parent. Sales include convenience, grocery and foodservice operations.

3 These results are from the latest 10-K of Performance Food Group.

4 NCD acquired Colonial Distributing LLC. 5 Imperial Trading Co. LLC is parent of Imperial Super Regional Distributor/S. Abraham & Sons Inc. The company acquired City Wholesale Inc. 2

6

AMCON acquired Henry's Foods Inc. The financial results included here reflect the pro-forma combination of the companies.

7 Harbor Foods is parent of Harbor Wholesale. Acquisitions include MTC Distributing Co., Halfon Candy Co. and NW Foodservice Distribution Inc. 8 Novelart Manufacturing Co. is parent company of Topicz.

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FEATURE 2023

Technology is another top priority for c-store distributors, who cited a wide range of tech tools and solutions rolled out within the last year, particularly focused on streamlining operations and removing pain points. These include reporting software; enhanced mobile and online ordering tools; upgraded mobile apps and B2B websites; complete in-store inventory solutions; a virtual tradeshow; an on-site, full-service print shop; and solutions to offer product replacement for items in short supply.

Looking ahead, distribution companies say they are prioritizing other technology-based initiatives for the year to come, such as automation; digital signage and custom marketing; delivery notifications with live tracking based on location data; custom development of apps to improve customer operations related to ordering, receiving and stocking c-store products; and enhanced planogram management, among other solutions.

Average sales per company rose to $6.49 billion, up from $5.3 billion one year ago.

In the Headlines Several of the convenience channel’s top 15 wholesalers made headlines this year: • McLane Co. Inc., whose trading area covers all 50 states, debuted a new foodservice program and family of brands in August at McLane Engage, its annual national tradeshow. McLane Fresh includes CupZa!, a reimagined and revolutionary beverage program; Prendisimo, a new proprietary pizza program designed to be a highly marketable brand supported by end-to-end solutions; and an expanded selection of Central Eats, McLane’s highly successful grab-and-go brand. The launch was prompted by the “tremendous opportunity” fresh food presents to c-store operators of all sizes, according to Chris Smith, president of McLane Retail.

• Performance Food Group, which serves the c-store industry under the Core-Mark banner, relaunched Core-Mark Curated, an innovative initiative aimed at identifying, nurturing and developing the best brands for inclusion in its extensive distribution channel. As a startup accelerator and incubation program, Core-Mark Curated is a key component of the company’s Center of Excellence facility. The company is also focused on

freshness in its foodservice offerings and highlighted the Tru-Q Barbecue program and renamed Fresh Take line of grab-and-go items at its Core-Mark Expo events this spring.

• National Convenience Distributors expanded its reach in the Southeast by acquiring Colonial Wholesale Distributing Inc., one of the region’s largest full-line wholesale distributors to convenience stores and supermarkets. Tampa, Fla.-based Colonial joined National Convenience Distributors as a newly created division, bringing its service area to 13 states running from Maine to Florida. In addition to Colonial, the company represents the unification of Allen Brothers Wholesale Distribution, Century Distributors, Harold Levinson Associates, J. Polep Distribution, Rachael's Food Corp. and Wustefeld Candy.

• Imperial Super Regional Distributor acquired certain assets from City Wholesale in a deal expected to add approximately $150 million to the company’s annual revenues. Based in Birmingham, Ala., City Wholesale has operated for 97 years and services more than 1,100 convenience retail, educational and hospitality locations across Alabama, Georgia, Florida, Tennessee and Mississippi. "It's always better to have more distribution centers, especially when you're covering rural areas," said Imperial President and CEO Wayne Baquet.

• AMCON Distributing Co. acquired Henry's Foods Inc. The Henry's name and business continue in the marketplace as the company operates as a wholly owned subsidiary of AMCON. "Henry's is the preeminent provider of high-quality foodservice to the convenience distribution industry and will add important new offerings and expertise that we can bring to our customer base," said Andrew C. Plummer, AMCON president and chief operating officer. "We also look forward to sharing the customer-centered suite of services that AMCON has developed to add value for Henry's customers.”

• Harbor Wholesale made a pair of notable acquisitions within the last year. In late 2022, the company bought MTC Distributing Co., resulting in a total of four distribution centers on the West Coast that service customers from just north of Los Angeles to the Canadian border. In March, the company acquired Halfon Candy Co., a Seattle-based distributor that specializes in candy, snacks and c-store items. This move increased Harbor’s overall market share and expanded its reach into areas that would have taken it years to independently develop, according to company leadership. CSN

METHODOLOGY Ranking for the Convenience Store News Top Wholesalers Report are based on sales for the last full fiscal year for each company. Data for this report was gathered through a survey conducted among the largest wholesalers primarily servicing c-stores that derive the majority of their sales from tobacco and candy products. Additional data was obtained through company reports and other public sources of financial data. In some cases, estimates have been made by CSNews based on historical data and current industry trends.

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TOBACCO

Looking for Traction A lack of federal mandates and myriad state regulations stymie the CBD and cannabis categories

By Debby Garbato WITH PASSAGE of the 2018 Farm Bill and

legalization of recreational marijuana across half the country, marketers thought cannabis and cannabidiol (CBD) products would become as commonplace in convenience stores as beer and tobacco.

But a lack of federal guidelines for CBD consumables, cannabis’ illegality at the federal level and unfavorable financial laws have made major retailers and suppliers reluctant to enter these segments and this has slowed growth of both areas.

CBD sales declined from a high of about $4.8 billion in 2021 to $4.2 billion today, according to Brightfield Group’s report, “Striving to Thrive in U.S. CBD.” By 2028, the market researcher predicts that CBD sales will only reach $5 billion sans regulation; with regulation, sales could exceed $10 billion.

Cannabis market intelligence firm BDSA predicts U.S. legal cannabis sales will grow from $29.6 billion in 2023 to $45 billion by 2027, representing 80 percent of global sales. Experts believe growth could be higher if financial and other regulations were less stringent.

But there are bright spots. While the most inroads are being made through independent retailers, larger convenience channel players such as Jacksons Food Stores, Yesway, Sheetz Inc. and Alimentation Couche-Tard Inc./ Circle K have partnered with cannabis suppliers and/ or successfully introduced CBD products, many from smaller vendors.

“You’re seeing mainly independent c-stores marketing CBD products,” said Alex Morrison, manager of business analytics at Cadent Consulting Group, based in Wilton, Conn. “It’s definitely harder for a national, mainstream chain. I think they’re worried about brand recognition, consumer trustworthiness and regulation. And cannabis dispensary partnerships aren’t as far along as in Canada due to the regulatory environment.”

Financial Risks & Obstacles Operating U.S. dispensaries is costly. In addition to myriad regulations, it is illegal for major banks to fund cannabis businesses, and Section 280E of the Internal Revenue Code forbids companies from deducting ordinary business expenses from gross income associated with the “trafficking” of Schedule I or II substances. On the consumer end, Mastercard announced in July that it was banning cannabis purchases on debit cards.

“Partnering with dispensaries side by side is a developing situation,” said Agustin Rodriguez, partner at

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Yesway launched Feel Good Shop+, an in-store CBD concept, in March.

Atlanta-based law firm Troutman Pepper.

“There’s many compliance costs. You must get a license, monitor inventory, and track and trace it throughout the system from cultivator to retail sale. This requires special software. There’s some small banking institutions offering financing, but there’s costs. You end up with lots of cash.”

Matt Zehner, insights manager at Brightfield Group in Chicago, said such issues seriously hinder profitability. “Growth strategies aren’t paying off in cannabis and CBD. Financial risks are keeping companies out. Some are burning through so much money. Hype seems to outweigh returns. Companies are wary to enter the space without federal regulation.”

U.S. Sen. Jeff Merkely (D-Ore.) wants to assuage the financial situation. In April, the federal legislator introduced the SAFE Banking Act of 2023 (S.1323), which would protect federally regulated financial institutions serving state-sanctioned marijuana businesses, letting them lend money.

“The bill is moving its way through Congress; it’s been introduced three times,” noted Brendan Mitchel-Chesebro, analyst/content manager at BDSA in Louisville, Colo. He echoes that the current banking situation “adds much risk.”

Both Boise, Idaho-based Jacksons Food Stores and Circle K have entered colocation dispensary partnerships, although neither chain had opened these operations as of press time.

Jacksons is teaming up with Torontobased CordovaCann Corp., while Circle K is partnering with Green Thumb Industries of Chicago, owner of RISE Dispensaries.

Plans call for 10 RISE Express medical cannabis stores adjacent to 10 Circle K stores in Florida.

Fort Worth, Texas-based convenience store retailer Yesway is also “evaluating opening dispensaries in states where cannabis is legal,” said Alan Adato, senior merchandising and procurement manager.

He did not provide a specific timeframe.

In Need of Standards The CBD business is more developed in the convenience channel, although just a handful of larger retailers are participating. Altoona, Pa.-based Sheetz began offering CBD products at select locations in 2019, including vapor pens, tinctures, CBD pills/capsules, oral pouches and edibles. Yesway entered the category that

“Stores have seen significant sales increases, especially for disposable vape products with Delta 8, HHC and hybrids. Other popular items are beverages infused with CBD and Delta 9.”

— Alan Adato, Yesway same year with CBD-infused water and has steadily expanded its offerings.

In March, Yesway announced plans for an in-store CBD concept called Feel Good Shop+ under an agreement with Las Vegas distributor GPO Plus Inc. and its Distro+ division.

Feel Good+ offers drinks, snacks and vaping products sold on consignment.

Adato said business has been robust, with “broad selections” in most stores. “Stores have seen significant sales increases, especially for disposable vape products with Delta 8, HHC and hybrids,” he reported. “Other popular items are beverages infused with CBD and Delta 9. The category drives traffic as customers see the benefit of a quick, convenient outlet for purchasing CBD products.” Yesway also offers CBD gummies, pre-rolls and smokes.

The category is constantly changing, Adato pointed out.

“It has evolved significantly. Customers are gravitating to new, innovative items with Delta 8 and Delta 9 that can be consumed in different ways,” he said.

The CBD business could be even stronger if there wasn’t a lack of U.S. Food and Drug Administration (FDA) standards impeding growth and consumer acceptance. “Should the category become more regulated, consumers will become more aware and educated about CBD, which will provide more opportunities for suppliers and retailers,” Adato added.

Sans standards, quality and safety can be inconsistent, further deterring large retailers. “There can be wide variance of formulations from what it says on labels,” said Brightfield Group’s Zehner. “Some brands don’t have the highest testing standards. It can be pretty drastic. This hurts manufacturers working to make quality products.”

While the FDA has not provided clear guidance regarding CBD as a food additive, it has issued warnings to companies whose products made specific wellness claims. Consequently,

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TOBACCO

“companies are being much more careful,” said BDSA’s Mitchel-Chesebro.

These types of issues have caused the number of brands in the category to fall from 4,000 several years ago to about 2,000 today, according to Jared Stanley, cofounder/chief operating officer of CBD oil supplier Charlotte’s Web, headquartered in Chicago.

“Consumers pulled away because they might have bought products that weren’t up to the same standards as others. The category has been declining for two years,” he said.

Forever Pending In March, two federal bills were proposed that could create uniform product guidelines.

The CBD Product Safety and Standardization Act of 2023 (H.R. 1628) would authorize regulation of interstate commerce with respect to food and beverages containing cannabidiol derived from hemp and for other purposes.

The Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2023 (H.R. 1629) would make

hemp, cannabidiol derived from hemp and any other ingredients derived from hemp lawful for use under the Federal Food, Drug and Cosmetic Act as a dietary ingredient in dietary supplements.

Steve Mister, president and CEO of the Council for Responsible Nutrition in Washington, D.C., believes these regulations should have been enacted when the Farm Bill was passed.

“While this new market initially flourished, FDA inaction has created uncertainties that have damaged the industry. FDA’s continued inaction creates risks for consumers by creating a market that knowledgeable supplement companies are hesitant to enter," Mister said. "FDA has ignored Congress’ directive. FDA’s failure to establish a regulatory pathway has forced states to enact their own disparate policies. This has resulted in a patchwork of laws, which is a detriment.”

Industry insiders believe that FDA guidelines would encourage the major consumer packaged goods suppliers to enter the CBD category, propelling growth.

“If consumers already trust a big brand, they’re more likely to try something,” said Mitchel-Chesebro. “That would also make products available across a wide variety of retailers.”

Stanley of Charlotte’s Web noted that the biggest suppliers are sitting on the sidelines right now. “It’s wait and see,” he said.

“When there’s a green light, expect competition. And c-stores have the highest number of doors and consumers. With federal regulation, they’d be a huge part of the market.” CSN

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TECHNOLOGY

The Next Generation of Stinker Stores Guided by its customers, the regional chain is evolving its approach to technology

By Danielle Romano IF YOU ASK STINKER STORES Director of

Marketing Billy Colemire how important it is as a midsized convenience store retailer to evolve technologically, he will cite author Tom Triump's quote: "Evolve or die."

"Evolution is both natural and necessary.

It's important to evolve at the same rate of your customers," Colemire told Convenience Store News.

Evolving at the same rate as its customers is something the Boise, Idaho-based chain of 105 convenience stores throughout Colorado, Idaho and Wyoming has ramped up in recent years. According to the marketing director, Stinker Stores has always been forward-thinking when it comes to technology, but the company hasn't always had the human capital necessary to quickly adopt and deploy new technologies throughout the organization or within its stores.

On top of that, Stinker Stores faced various programmatic and systemic limitations with legacy back-office and point-of-sale operating systems, which often complicated automation and integration when combined with new technologies.

In recent years, however, Stinker Stores has significantly invested in both human capital at its Stinkin' Support Center in Boise and field-based support teams within its operational footprint. This investment was

the catalyst that ignited a flurry of research and development, allowing the chain to partner with many new and exciting vendors in the technology space, Colemire pointed out.

"Stinker has emerged as a leading regional convenience chain, utilizing new technology to increase efficiencies for our highly skilled operators at the store level, as well as creating exceptional customer experiences for our wonderful customers, removing more and more friction each implementation at a time," he said.

Revamping Loyalty When it comes to deciding where to focus its efforts in terms of technology, Stinker Stores relies on customer feedback. For example, when Colemire first joined the company, the retailer was using paper punch cards as a means for thanking loyal customers for purchasing their dispensed beverages from Stinker Stores. Through customer-intercept surveys and regular feedback from store team members, the chain realized customers were ready for a more robust loyalty program.

From there, the company developed the first generation of the Stinker app and joined with Liquid Barcodes to launch it in 2021. The app-based loyalty program featured an easy and engaging way for customers to earn digital stamps every time they bought coffee, doughnuts, fountain drinks or energy drinks, in addition to gamification and chances to win free prizes and coupons.

Fast forward to current day, and the chain is in the latter stages of revamping its loyalty program. Stinker Stores announced earlier this year that it is partnering

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The second-generation Stinker app will include digital stamp clubs, gamification and a points-based reward system.

with PAR Technology Inc.'s Punchh loyalty solution for the rollout.

"Over the last few years, Stinker has worked very hard to become known as a food and beverage destination," Colemire commented. "PAR Technology traditionally comes from the foodservice realm. Partnering with them felt very natural based on their success in this space. Their ability to work so closely to curate a customized approach and feel has been refreshing."

Like the first-generation app, the secondgeneration Stinker app will include digital stamp clubs, gamification fan-favorites, and a points-based system through which customers can quickly earn points when they shop and choose exactly how they want to be rewarded.

New features added to the revamped platform will include a mobile wallet that offers daily savings when customers link it to their ACH and fuel discounts.

Colemire anticipates the second generation of the app launching at the end of the first quarter or beginning of the second quarter of the company's 2024 fiscal year.

"The ability to utilize AI [artificial intelligence] technologies to segment customers and provide targeted offers to new categories and items they did not historically purchase from us — or even realize we sold — will allow us to continuously grow our market baskets," he explained.

Leveraging Strategic Partnerships Introducing the next generation of its app is just one of many stops on Stinker Stores' technology roadmap. This year alone, the convenience store chain has entered a number of strategic partnerships to enhance the customer experience: • January: The retailer partnered with Bitcoin Depot to roll out a turnkey solution that introduced an entirely new and broad digital financial market to all 105 Stinker Stores.

• February: Stinker Stores entered into a partnership with retail technology company Upside to offer cash back to new and incremental shoppers, while growing and maximizing profits.

• March: The chain selected AccuStore, a subsidiary of GSP Retail, to implement a new retail intelligence platform focused on signage, store layouts and store attributes.

• May: In partnership with FeedbackNow by Forrester, Stinker Stores rolled out a customer feedback pilot program at four locations. The pilot includes a combination of FeedbackNow's Smiley Box devices, multiple choice buttons and QR codes in strategic locations throughout the stores to capture feedback on food options, overall experience and restroom cleanliness in real time.

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"Stinker's purpose is to make our world a better place, one employee, one customer and one community at a time, by being a bright spot in the lives we touch. We want to live our purpose in all business outcomes as well," Colemire said.

"Were the days of our team members and customers easier because of something we rolled out? Did someone save enough time to focus on a more meaningful task? Was someone able to order a high-quality meal, at an affordable price, and have it delivered when they realized there just simply weren't enough hours in the day to prepare a meal at home? Stinker, like all businesses, wants to grow profits, but we believe our profits will only grow when we live our purpose in everything that we do," he added.

“Stinker has emerged as a leading regional convenience chain, utilizing new technology to increase efficiencies for our highly skilled operators at the store level, as well as creating exceptional customer experiences for our wonderful customers, removing more and more friction each implementation at a time.”

— Billy Colemire, Stinker Stores Although the company exists in a space and time where there are more strategic marketing and assortment. Stinker Stores is also exploring a few partners than it could ever actually work options that will help the company enter the omnichannel space. with, Stinker Stores does not intend to rest on its laurels, Colemire pointed "We feel that we have only scratched the surface and that there out. The company is currently exploring Mod: November 6, 2023 3:36 PM 11/13/23inpage v2.5 are many new partnerships that wePrint: will engage over 1 the coming options23_009110_Convenience_Store_News_DEC that will allow it to optimize its years," Colemire said. CSN supply chain even further, and localize

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STORE SPOTLIGHT

A Second Chance for a First Impression Haffner’s opens a new flagship store in the city where the company got its start

By Amanda Koprowski HAFFNER’S HAS ALWAYS been a tale of

two businesses.

At a Glance Haffner’s Opened: May 2023 Location: 425 Merrimack Street, Lawrence, Mass.

Size: 6,000 square feet Unique features: New flagship store; introduces Haffner’s as a comprehensive convenience store brand; first-ever express foodservice concepts from Crack’d Kitchen and Sal’s Pizza; murals depicting the city’s history; a drive-thru; a touchless car wash

On the one side is its heating oil and propane services, which appear to be the dominant half, serving more than 45,000 customers throughout New England.

On the other side is its 71 gas stations and convenience stores, which though appearing less notable, are in fact the reason for the company’s existence, starting with its first filling station in Lawrence, Mass., in 1925.

So, what better place for the company to launch a new and expanded flagship store than in the city where it all started. In fact, according to Dennis Kelleher, Haffner’s director of marketing, this was a major consideration when selecting a site for the flagship.

“The choice of Lawrence … was driven by a rich history, a strong connection to our origins and the exciting opportunity to play a pivotal role in the revitalization of the city,” he said. “By investing in this location, we are not only establishing a flagship store, but also actively participating in the city’s growth and renewal. This aligns perfectly with our vision of being

more than just a business, but a positive force for change and progress in the communities we serve.”

Making its debut earlier this year, the new Haffner’s store measures 6,000 square feet and sits on two acres of land along a major artery road for the area. In addition to the usual gas pumps and walk-in convenience store, the site incorporates a drive-thru and a touchless car wash.

However, it’s within the c-store that the changes really stand out, starting with two new foodservice concepts created in concert with New England-based, family-owned companies: Crack’d Kitchen Express and Sal’s Pizza. Both Crack’d and Sal’s traditionally operate full-size restaurants.

A family connection helped get the ball rolling for these partnerships. The father of Alan Frati, the co-owner of Crack’d, works for Haffner’s and helped connect the organizations. From there, Kelleher noted, the mutual benefits of an express concept became apparent.

“The decision to collaborate with these family-owned companies was influenced

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STORE SPOTLIGHT

Historical murals celebrating the city of Lawrence, Mass., create a sense of connection with the local community.

by the shared value of offering highquality, local food brands to customers,” he said. “This resonates well with Haffner’s ethos of providing exceptional products and services to the community.”

Between the morning offerings of Crack’d and the lunch and dinner offerings of Sal’s, the Lawrence store can conceivably cover every meal a customer may be looking for. And on top of the diverse range of food options, this location features the added convenience of the drive-thru.

“The customer feedback regarding our foodservice offerings has been exceptionally positive. The quality and variety of our food offerings have been recognized, aligning perfectly with our commitment to delivering high-quality products,” said Kelleher. “This positive reception is a testament to our dedication to catering to the changing tastes of our customers while maintaining the utmost standards of excellence.”

Community & Connection The design of the flagship store is described as a “a fusion of thoughtful elements” that pay homage to the city’s history while embodying Haffner’s commitment to quality and innovation.

The use of natural materials, such as wood and brick, creates a warm and inviting environment. To enhance wayfinding and create a cohesive experience, the retailer strategically employed its standard brand colors throughout the store, using them as guideposts to direct customers seamlessly through the space and ensure a smooth and intuitive journey.

One distinctive feature is the incorporation of historical murals that celebrate the rich heritage of Lawrence. These murals not only add visual interest, but also create a sense of connection with the local community, according to Kelleher.

The flagship store will set the tone for the company’s future builds, and serve as a foundation for Haffner’s short- and long-term goals.

“This strategic move encompasses several key aspects that not only enhance our brand presence, but also position us for growth and success,” he said.

In the short term, the strategic location of the Lawrence store — in the same area as the company’s Heating Operations division — creates opportunities for cross-promotions, streamlined operations and a more cohesive customer experience.

The flagship also introduces Haffner’s as “a comprehensive convenience store brand,” a move that signifies the company’s commitment to diversifying its portfolio and adapting to changing market dynamics. Haffner’s has an ambitious growth strategy for the next year that involves site optimization, expansion into new locations with innovative concepts, diversification into new verticals, and a strong focus on remodeling and standardization.

Before the end of this year, the retailer will bring the new flagship model to Glouchester, Mass. This location will also feature a dispensary on the second floor, marking Haffner’s second entry into the vertical.

Next year, the flagship model will be used to establish a presence in Gilford, N.H., further extending Haffner’s reach and impact.

Also in the upcoming year, the company intends to tear down and rebuild several of its current sites, while expanding its collaborations with both Crack’d and Sal’s and experimenting with other foodservice offerings, such as incorporating deli counters at select stores.

All in all, Kelleher views the company’s plans heading into 2024 with a sense of excitement.

“Updating our existing portfolio to new brand standards ensures consistency across all touchpoints, reinforcing our brand identity and enhancing customer recognition. This consistency strengthens our long-term positioning in the industry and establishes Haffner’s as a trusted name that customers can rely on for quality and convenience,” he said. CSN

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INSIDE THE CONSUMER MIND

In Need of a Healthy Makeover?

C-stores can do a better job of satisfying the wants of health-conscious shoppers Convenience stores have long been viewed as a 24/7 haven to satisfy those cravings for a sweet treat, salty snack or fried food at any time of the day. But that doesn’t mean c-store shoppers aren’t interested in healthy and better-for-you foods and beverages.

The 2023 Convenience Store News Realities of the Aisle Study, which surveyed 1,500 consumers who shop a c-store at least once a month, uncovered the following insights:

61%

of convenience store shoppers agree with the statement:

This percentage is even higher among millennial c-store shoppers, reaching 65%.

“I am health conscious.”

Satisfaction With Selection of Healthy/Better-For-You Foods at Convenience Stores Among those c-store shoppers who identify as health conscious, 22% say they are not at all or not very satisfied with the current selection of healthy food and beverages available at convenience stores.

This number jumped 7 points year over year.

38% Extremely/very satisfied

41% Somewhat satisfied

22% Not very/not at all satisfied

Boomers are the least satisfied, while millennials are the most satisfied.

The Most Important Aspects of Better-for-You Food & Beverages Leading the list of concerns/interest for health-conscious shoppers is product freshness.

38% Fresh 29% Sugar 25% Protein 25% Calories 23% All natural 19% Ingredients I can understand and pronounce 19% Sodium 18% Caffeine 16% Carbohydrates 14% Non-GMO 14% Fat 13% Nonprocessed 12% Artificial sweetners 11% Artificial flavors 11% Locally sourced/produced 9% Clean label 9% Antibiotics 7% Functional/vitamin-enhanced 7% Growth hormones 6% Gluten 5% Vegan/plant-based

Product attributes that saw a rise in concern/interest year over year are sugar, calories, sodium, caffeine, non-GMO and artificial flavors.

Product attributes that saw a decline in concern/interest year over year are all natural, locally sourced/produced, clean label, and ingredients I can understand and pronounce.

74 Convenience Store News C S N E W S . c o m

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