ConvenienceRETAILER Volume 2, Number 4
THE NACS SHOW 09 PRESHOW ISSUE
July/August 2009
‘NACS STATE OF THE INDUSTRY REPORT OF 2008 DATA’ NOW AVAILABLE
JOHNSONVILLE RELEASES NEW HEAT-AND-EAT SANDWICHES
NACS has just released the NACS State of the Industry Report of 2008 Data, the industry’s premier benchmarking tool and most comprehensive collection of firm-level, store-level and category data and trends based on the convenience store industry’s 2008 performance. Compiling and analyzing totals, trends and averages for the industry, the 176-page report also examines economic conditions and their potential impact on the industry. It features more than 100 charts and tables focusing on every aspect of the industry’s 2008 performance, including financials, store operations, merchandising, motor fuels sales and quartile analysis. New this year, the report features a five-year perspective of same-store data and separate chapters for merchandise and foodservice. “Retailers who want to improve their operations and communicate the industry’s perspectives on motor fuels sales and other industry trends rely on the
CERTEGY’S PAYCHECK ACCEPT: CHECK CASHING WITHOUT THE RISK
Profits Soar with Preferred
Energy Shots FLYING J AND PILOT ANNOUNCE PRELIMINARY MERGER AGREEMENT
Continued on Page 15
COINSTAR AND REDBOX PARTNER TO HELP FAMILIES HAVE FUN
5-HOUR ENERGY TO INTRODUCE NEW FLAVOR
SNICKERS BRAND AND DAVID ARQUETTE MAKE A BIG MOVE TO HELP FEED AMERICA
Grape joins popular line of category leading Energy Shots
new products 5-Hour Energy No. 1 Energy Shot BAERO North America Inc. Canopus Batwing Bambu Sales Inc. World’s Finest Rolling Papers Conwood Company LLC Grizzly Smokeless Tobacco Dr Pepper-Snapple Group Dr Pepper Cherry Energy Club Inc. Stand Up Bag Mixes Mueller Sports Medicine Inc. Quench Pint Bottle Oberto Sausage Company High-Velocity SKUs
Sitting atop the growing liquid energy shot category by a substantial margin, 5-Hour Energy® seeks to continue its category dominance with the introduction of its newest flavor, Grape, in late September. Founded in 2004, 5-Hour Energy is a two-ounce energy shot that provides hours of energy with no crash* or jitters through a blend of B-Vitamins and amino acids. Containing caffeine comparable to a cup of the leading premium coffee, there’s zero sugar, zero net carbs, zero herbal stimulants and only four calories in each two-ounce shot. Grape joins 5-Hour Energy’s growing product line that includes berry, lemon-lime and orange flavors, as well as Decaf and Extra Strength** versions. As the original two-ounce energy shot, we are proud of the reputation we’ve established and the brand loyalty 5-Hour Energy has developed in just a few short years,” says Carl Sperber, Director of Continued on Page 15
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contents july/august 09 9
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ConvenienceRETAILER Lee M. Oser CEO and Editor-in-Chief
Steve Cox Kim Forrester Kate Seymour Associate Publishers
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Lorrie Baumann Business Affairs Manager
Jenna Crisostomo Senior Associate Editor
Chris Bonney Associate Editor
Valerie Wilson Art Director
Yasmine Brown Graphic Designer
Michael Harris National Director of Sales
Andrew Oseman Senior Account Manager
Enrico Cecchi European Sales
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Convenience Retailer is published by Oser Communications Group Š2009. All rights reserved. BPA Worldwide Membership Applied for September 2008. Executive and editorial offices at: 1877 N. Kolb Road, Tucson, AZ 85715 520-721-1300/Fax: 520-721-6300 www.oser.com/www.convenienceretailer.net European offices located at Lungarno Benvenuto Cellini, 11, 50125 Florence, Italy.
news briefs JOHNSONVILLE ANNOUNCES NEW HEAT-AND-EAT SANDWICHES America’s leading sausage company introduces three bold varieties of grab ‘n’ go goodness To meet demands of today’s busy consumer seeking convenient, flavorful and affordable breakfast and snack solutions, Johnsonville® Sausage LLC, introduces hand-held sandwiches featuring the company’s famous link sausage enrobed in a soft, warm roll. The five-ounce sandwiches—which debuted at the 2009 Research Chef Association Conference in Dallas and Pizza Expo in Las Vegas this spring— feature on-trend flavors and intriguing ingredients already built into a juicy, savory smoked-sausage link, including: • Southwestern Style—corn kernels,
black beans and bell pepper, with just the right blend of seasonings to perk up taste buds any time of day or night. • Spicy Sunrise—scrambled egg, cheese and onion for a tantalizing jump-start to morning. • Sweet & Smokey—the sweet contrast of real Vermont maple syrup for at-thebreakfast-table flavor. For time-starved customers on the go, Johnsonville’s hand-held sandwiches— frozen to lock in just-made freshness— are individually wrapped and go from freezer or refrigerator case to the microwave for a hot sandwich in 75 seconds or less. Or, merchandise straight from your point-of-sale warmer, where sandwiches maintain optimum quality
DESIGNER WHEY PROTEIN WATER HAS 60 ‘GOOD-FOR-YOU CALORIES’ IN EVERY BOTTLE Four Delicious Flavors of PROTEIN WATER: Orange Mango, Pomegranate Fruit, Cranapple, Blue Raspberry
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Nutrition comes in many forms, shapes and sizes. DESIGNER WHEY®, America’s No. 1 Protein Since 1993®,
for up to four hours. The full line of Johnsonville’s new grab ‘n’ go sandwiches also includes Smoked Bratwurst and Smokey Cheddar Sausage. J o h n s o n v i l l e ’s hand-held sausage sandwiches satisfy the cravings of an increasing number of customers who seek something extremely flavorful that can be eaten in the car, at the office, between classes—virtually any occasion that requires a quick and tasty meal solution,” says Sarah Babb, Johnsonville’s Senior Brand Manager. “What’s more, because our sandwiches are priced to sell quickly, outlets like C-stores and food kiosks in public areas gain a competitive edge over quick-service restaurants, building customer frequency.” recognizes the need for a healthy, refreshing and nutritional option in a bottle for those looking to stay trim. DESIGNER WHEY is pleased to announce the release of their 16 fluid ounce PROTEIN WATER, the on-the-go, drinkanywhere alternative to sugary sodas and enhanced drinks that can leave you
About Johnsonville Sausage Johnsonville Sausage, America’s No. 1 sausage brand according to AC Nielsen, is known and trusted in 27 countries throughout the world. Through its commitment to providing “world-class culinary” sausage solutions to customers through unparalleled quality and flavor, Johnsonville endeavors to create awareness for sausage as a key ingredient on trend-setting menus while influencing the menu trends of tomorrow. unsatisfied. DESIGNER WHEY PROTEIN WATER will be made available at select retailers nationwide with an MSRP of $2.99. “PROTEIN WATER combines water with whey protein isolate, dietary fiber and amazing natural Continued on Page 12
news briefs ‘G.I. JOE: THE RISE OF THE COBRA’ ADVANCES ON 7-ELEVEN STORES Retailer takes aim at G.I. JOE fans with Liquid Artillery Slurpee®, ‘GO JOE’ Energy Cappuccino and sweepstakes 7-Eleven Inc. reports for duty this July as it joins forces with Paramount Pictures to promote the Aug. 7 release of the new action movie, G.I. Joe: The Rise of Cobra. At the center of the promotion, starting Wednesday, is a new G.I. JOEthemed true-blue Slurpee® flavor— Liquid Artillery, a summer fruit blend of strawberry, pineapple and lime flavors created by The Coca-Cola Company. Four 22-ounce collectible Slurpee cups with matching character straws feature G.I. JOE team members CONRAD DUKE HOWSER and SNAKE EYES, and COBRA members, BARONESS and STORM SHADOW. An online Slurpee Nation sweepstakes offers a grand-prize trip for two to attend the Los Angeles premiere of the movie. Besides its frozen blue Slurpee drink, 7-Eleven has added a hot beverage tie-in with a ‘GO JOE’ Cappuccino,
mocha-flavored with three natural energy ingredients—taurine, guarana and caffeine. One 12-ounce cup has as much caffeine as an eight-ounce energy drink. Refillable silver and black 16-ounce coffee mugs featuring the G.I. JOE logo also are available while supplies last. “G.I. JOE is probably the bestknown boy’s toy in the world,” says Jay Wilkins, 7-Eleven Brand Manager for cold beverages. “The movie has a readymade audience of boys and men who played with G.I. JOE, and we want to bring back some of those great childhood memories by promoting ‘G. I. Joe: The Rise of Cobra’ with a great, new Slurpee drink, fun cups and straws.” “This program brings the excitement of the new movie right inside 7Eleven stores,” comments LeeAnne Stables, Executive Vice President of worldwide marketing partnerships at Paramount Pictures. “Fans will get an early taste of this big screen update of their favorite characters from this incredible action-packed G.I. Joe: The Rise of Cobra film.”
COINSTAR AND REDBOX PARTNER TO HELP FAMILIES HAVE FUN AT HOME THIS SUMMER For the many Americans forgoing a vacation this summer as they look to save money, there are plenty of inexpensive ways to have fun while staying at home. To help families create an unforgettable start to the summer, Coinstar and redbox are partnering with travelgirl magazine Editor-in-Chief Stephanie Oswald, giving families tips on how to get creative with their stay-at-home vacations. As a mother, taking a summer staycation can be the best of both worlds,” says Oswald. “You get to have fun spending time with family away from work and don’t have to break the bank to do it.” According to Coinstar, there’s approximately $90 of loose change hiding in the average U.S. household. Before starting a staycation, Oswald recommends asking each family member to empty out their piggy bank, coin jar or change drawer. Then, take all of the coins to the nearest Coinstar Center and use the cash to help pay for some of those staycation expenses. With this “found” money, Oswald offers the following ideas for making the most of a summer staycation, regardless of your location, interest or budget: Become a tourist—Checkcheck out those local sites and landmarks that you’ve often thought about but never explored. Whether it’s a historic museum, city tour or an amusement park, have a family meeting and allow each member
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to pick at least one special event. If you’re on your own, the sky is the limit but remember to bring a camera to capture those memories. Host a film festival—– Eescape to the movies by watching back-to-back films throughout the day. Visit your local grocery store to pick-up the family’s favorite snacks and movies from redbox. For added fun, play a movie trivia game to determine who gets to choose the next movie and make the popcorn. Visit www.redbox.com for a list of redbox locations and available titles near you. Invite the Neighbors—now is a good time to get to know your neighbors. Organize a neighborhood cookout and invite each family to bring a dish. Set up games to make it fun for the kids and try to meet as many new people as possible. It might be fun to accept nominations for hosting the next neighborhood party. Stage a backyard campout—enjoy the great outdoors just steps away from home. The key to any backyard campout is to make it as realistic as possible. Gather your gear and pack everything Continued on Page 12
In addition to the four plastic 3D cups, 7-Eleven has created two paper Slurpee cups with movie graphics along with Slurpee Nation reward codes that can be used to enter an online instant-win sweepstakes at www.slurpee.com. Prizes awarded in the month-long sweepstakes include Xbox 360 Entertainment Systems, G.I. JOE Xbox 360 videogames, Xbox LIVE Gold subscriptions and one-year subscriptions to Symantec’s Norton Antivirus and spyware removal program. Introduced in the United States by Hasbro in 1964, G.I. JOE celebrates its 45-year anniversary this year as the world’s first “action figure.” As enemies, military uniforms and gear changed, the toy line evolved over the years. G.I. Joe: The Rise of Cobra is a live-action film adaptation based on the 1980s version of the franchise, which set up the conflict between G.I. JOE and COBRA and introduced audiences to characters, like SNAKE EYES, BARONESS and STORM SHADOW. Directed by Stephen Sommers (“The Mummy”), the cast of G.I. Joe: The Rise of Cobra includes Sienna Miller, Channing Tatum, Marlon Wayons and Dennis Quaid. Set 10 years in the future, the film shows the rise of the COBRA organization and focuses on the creation of an international force of operatives
who use high-tech equipment to battle their enemies. Besides the online sweepstakes and in-store signage, cups and collectibles, 7Eleven will run radio advertising promoting the “G.I. Joe: The Rise of Cobra” campaign in select markets. Assisting 7Eleven in developing the partnerships and promotions for the G.I. JOE program is FreshWorks, 7-Eleven Inc.’s advertising and marketing agency, which is a consortium of Omnicom companies. About 7 Eleven Inc. 7 Eleven Inc. is the premier name and largest chain in the convenience retailing industry. Based in Dallas, Texas, 7Eleven operates, franchises or licenses approximately 7,800 7-Eleven® stores in North America. Globally, 7-Eleven operates, franchises or licenses more than 36,200 stores in 15 countries. During 2008, 7-Eleven stores worldwide generated total sales of more than $53.7 billion. For 15 consecutive years 7-Eleven has been listed among Hispanic Magazine ’s Hispanic Corporate Top 100 Companies that provide the most opportunities to Hispanics. 7-Eleven is franchising its stores in the U.S., and is expanding through organic growth, acquisitions, and its Business Conversion Program. Find out more online at www.7-Eleven.com.
news briefs SNICKERS BRAND AND DAVID ARQUETTE MAKE A BIG MOVE TO HELP FEED AMERICA America’s favorite real chocolate brand kicks off new Feeding America partnership with massive meal commitment Mars Snackfood US announced that its Snickers® Brand is teaming up with Feeding America to ‘Bar Hunger’—a campaign to help the one in eight Americans struggling with hunger1. As part of Bar Hunger, Snickers will donate the equivalent of at least three million meals to Feeding America in 2009. The brand will also educate and inspire Americans to help through special branding and educational verbiage on its Snickers packaging, dedicated national advertising, its Facebook® Page located at www.facebook.com/snickers, as well as series of events throughout the year. Snickers enlisted the support of actor and chairman of Feeding America’s Entertainment Council, David Arquette (pictured), who spent the better part of two days atop the famed Madison Square Garden Marquee, July 14 and 15. Arquette hopes to raise $250,000 in donations for Feeding America, at a time that is especially trying for the growing number of Americans at risk of hunger, through the Snickers Facebook Page, text messaging and on-site collections. “The Snickers brand has always satisfied hunger,” says Carole Walker, Vice President, integrated marketing communications for Mars Snackfood US. “The ‘Bar Hunger’ campaign is designed to draw attention to a very real challenge facing America. But this charitable effort
is about more than putting a logo on our wrapper. We want people to join the effort and help in any way they can.” Snickers has teamed with Arquette because of his passionate participation in the fight against hunger. Aside from his role as the first-ever chairman of Feeding America’s Entertainment Council, he also regularly volunteers at a food bank in Venice, Calif. “I’ve seen first hand the impact of hunger, which is why campaigns like ‘Bar Hunger’ are so critical,” says Arquette. “But Snickers and I can’t do it alone. We need to educate all Americans about this issue and mobilize them to do something. The only way we can truly ‘Bar Hunger’ is together.” As the nation’s largest domestic hunger-relief charity, Feeding America feeds 25 million Americans at risk of hunger each year through a nationwide network of food banks and engages the country in the fight to end hunger. “We’re very thankful for the support of Snickers,” says Vicki Escarra, President and CEO of Feeding America. “The dedication of our corporate partners like Snickers, as well as individuals like David Arquette, is critical for us to generate awareness about hunger, as well as
CERTEGY’S PAYCHECK ACCEPT: CHECK CASHING WITHOUT THE RISK PayCheck Accept’s® proven patented check cashing solution creates customer loyalty that will generate repeat business. More than 13,000 retail locations-from small corner grocery stores to the world’s largest retailer, companies across the country making PayCheck Accept, the largest check casing authorization provider in the industry, to provide safe and convenient solutions for their paycheck and government check cashing services. Secure. With PayCheck Accept your business is completely protected from the fraud commonly associated with check cashing. Using state-of-the art technology and more than 45 years of industry experience, we’ve designed PayCheck Accept to eliminate the risks of counterfeit checks, bad checks, stolen checks and the need for collections, allowing you to confidently cash payroll and government issued checks. Flexible. PayCheck Accept is a remarkable user-friendly and flexible service. The only requirement is access to our authorization center from the desired check cashing location-this can be
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accomplished via POS integration, browser-based access or the installation of a “plug and play” stand-alone device. Quick and easy. In order to protect you and your customer’s identity, customers cashing a check for the first time must enroll in our system through a simple, no application approval process. Once enrolled, future transactions do not require all of the data input, greatly reducing data entry time. After the check information is entered, the transaction approval takes just seconds. Now you can expand your financial services offerings, create loyalty and generate additional revenue by partnering with Certegy, the recognized worldwide leader in advanced payment services and loss prevention tools. No more paper, no more manual background checks, no biometrics—just more convenience and services for your customer. Call 800-215-6280, ext. 75598, for a no obligation demo or email paycheck.accept@fnis.com.
continue to provide food to millions of Americans each year who would otherwise go hungry.” For more information about the Bar Hunger campaign, visit the Snickers Facebook Page at www.facebook.com/ snickers or www.barhunger.com. About Mars Snackfood US Headquartered in Hackettstown, N.J., Mars Snackfood US is the United States snack operations of Mars Incorporated. Mars Incorporated is a private, familyowned company founded in 1911 and employs 70,000 associates at 250 sites, including 151 factories, in 67 countries worldwide. Headquartered in McLean, Va., Mars Incorporated is one of the world’s largest food companies, generating global revenues of more than $30 billion annually.
DESIGNER WHEY (Con’t. from p. 6)
flavors to help reach peak performance during workouts, minimize hunger and manage weight loss,” states David Jenkins, Founder and Chief Executive Officer for NEXT Proteins, the makers of DESIGNER WHEY, “There are many choices in the marketplace, but with our insistence on in-depth product development and extensive research, we feel that PROTEIN WATER, with its 60 ‘goodfor-you calories,’ is the best choice. PROTEIN WATER should be a staple for anyone looking for a great-tasting, healthy alternative to sugary beverages.” PROTEIN WATER Facts: • 60 ‘Good For You’ Calories • 12 grams of 100% Whey Protein Isolate • 5 grams of hunger-curbing fiber to help promote a feeling of fullness • Only one gram of sugar and no fat • 16-ounce serving • Lactose free DESIGNER WHEY PROTEIN WATER is designed to help on-the-go fitness minded women and men get their daily intake of protein to optimize their workouts and increase their daily energy easily. PROTEIN WATER is great for use at the gym, carpool lane, the office, on a business trip or in the comfort of one’s own living room. Helping to curb hunger cravings with just 60 calories, 5 grams of Coinstar Inc. (Con’t. from p. 10)
you need beforehand. Work together to pitch a tent, and build a campfire for cooking. Finish off the night with a few stories by the fire and a game of flashlight tag for a fun night under the stars. About Redbox Redbox Automated Retail LLC, a wholly-owned subsidiary of Coinstar Inc., offers new release DVD rentals for $1 per night through its network of conveniently located, self-service kiosks. Redbox is available at more than 15,000 locations nationwide, including select McDonald’s restaurants, leading grocery and convenience
About Feeding America (Formerly America’s Second Harvest— The Nation’s Food Bank Network) Feeding America provides low-income individuals and families with the fuel to survive and even thrive. As the nation’s leading domestic hunger-relief charity, our network members supply food to more than 25 million Americans each year, including nine million children and three million seniors. Serving the entire United States, more than 200 member food banks operate 63,000 agencies that address hunger in all of its forms. For more information on how you can fight hunger in your community and across the country, visit www.feedingamerica.org. 1
1 in 8 PSA Campaign, Feeding America and Ad Council
fiber, zero grams of fat and 12 grams of DESIGNER WHEY protein, PROTEIN WATER is perfect for those looking to maintain and embrace a healthy lifestyle. About DESIGNER WHEY For more than 15 years, DESIGNER WHEY has created the greatest-tasting, results-proven products in the marketplace including powders and beverages that help consumers live healthier lives with the benefits of “nature’s perfect protein”. America’s No. 1 protein since 1993, DESIGNER WHEY has dedicated more than $10.5 million to research and development. DESIGNER WHEY is scientifically proven to enhance the fat-burning, muscle-building benefits of exercise. DESIGNER WHEY powers a full line of premium-quality products such as the new BIGGEST LOSER PROTEIN powder, DESIGNER WHEY Protein·2GO®– single-serving packets for an on-the-go lifestyle, and DESIGNER WHEY Protein BLITZ™ and DESIGNER WHEY Protein WATER, the latest in ready-to-drink refreshment. DESIGNER WHEY’S BIGGEST LOSER PROTEIN, featured on NBC television’s mega-hit reality weight loss show, is designed to help real people get real results with their overall health and nutrition needs. For more information on the company or the full line of DESIGNER WHEY products, visit www.designerwhey.com. stores, and Wal-Mart and Walgreens locations in select markets. For more information, visit www.redbox.com. About Coinstar Inc. Coinstar Inc. is a multi-national company offering a range of 4th Wall® solutions for the retailers’ front of store consisting of self-service coin counting, DVD rental, money transfer, electronic payment solutions and entertainment services. The company’s products and services can be found at more than 90,000 points of presence including supermarkets, drug stores, mass merchants, financial institutions, convenience stores, restaurants and money transfer agent locations. For more information, visit www.coinstar.com.
top news 5-Hour Energy (Con’t. from p. 1)
Corporate Communications for Living Essentials, the makers of 5-Hour Energy. “While our current line of products remains extremely popular, we are confident that 5-Hour Energy customers will enjoy the bold taste and energy boost they receive from the new Grape flavor. “We will continue to explore adding additional flavors in the future so our customers have a wide variety of 5-Hour Energy options to choose from,” adds Sperber. According to figures recently provided by AC Nielsen, 5-Hour Energy enjoys
a 70 percent share of all liquid energy shot sales, leading its nearest competitor by more than 9-to-1. With four of its flavors in the top five in sales, 5-Hour Energy outsells all of the other energy shot brands combined by over 2-to-1.
NACS APPLAUDS SENATE INTRODUCTION OF CREDIT CARD FAIR FEE ACT
*Crash equals energy below baseline. Individual results may vary. See www .5hourenergy.com for more information. **5-Hour Energy contains caffeine comparable to a cup of the leading premium coffee. Decaf 5-Hour Energy contains six mgs of caffeine—about as much as a half a cup of decaffeinated coffee. Extra Strength 5-Hour Energy contains caffeine comparable to 12 ounces of the leading premium coffee. Limit caffeine products to avoid nervousness, sleeplessness and occasional rapid heartbeat.
NACS applauded the Senate reintroduction of the “Credit Card Fair Fee Act,” legislation introduced on June 9 by Senate Majority Whip Richard Durbin (D-IL) that seeks to address the more than $48 billion that Americans annually pay in credit card swipe fees. The bill (S. 1212) seeks to help level the playing field for retailers by giving them a seat at the negotiating table with banks to determine the fees assessed for every sale made by credit card, and ultimately reduce the costs of everyday goods for consumers. “Senator Durbin’s introduction of this bill, following the introduction of similar legislation last week in the House of Representatives, is further proof that Congress is fed up with the shell game being played by the credit card companies,” says NACS Chairman Sonja Hubbard, CEO of Texarkana, Texasbased E-Z Mart Stores. “Congress has already addressed outrageous lending fees and policies directly targeting consumers, and it is vital that it also address
These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease. NACS (Con’t. from p. 1)
information contained in the annual NACS State of the Industry Report,” says NACS Director of Research and Statistics Bob Swanson, noting that retailers consider the report a vital resource for benchmarking store performance and improving their profitability. According to the report, overall convenience store industry profits rose 54 percent in 2008 to reach $5.2 billion, reversing a two-year decline where profits dropped 42 percent over that period. Industry sales jumped 8.1 percent to reach $624.1 billion, with both motor fuels sales (up 10.1 percent to $450.2 billion) and in-store sales (up 3.2 percent to $173.9 billion) showing growth. While revenues increased, so did expenses. Credit card fees continue to be the industry’s top pain point, surging another 10.5 percent in 2008 to reach a record $8.4 billion—nearly three times the level just five years ago. Complimentary copies of this year’s report have been shipped to companies that participated in the annual survey.
“We are extremely grateful to those who submitted data for this year’s survey. Not only does the NACS State of the Industry Report serve as the industry’s premier benchmarking tool, the industry numbers compiled are critical to our outreach efforts in quantifying the industry and its priority issues, both on Capitol Hill and with the national media,” says Swanson. Purchasers of the NACS State of the Industry Report of 2008 Data report may also download the NACS Convenience Store Industry Fact Book from www.nacsonline.com in early August. The 22nd edition of the Fact Book provides a detailed account of industry data over the past several years—or in some cases, decades—as well as a historical recap of the industry and key definitions and events that have shaped it. To order the NACS State of the Industry Report of 2008 Data/ Convenience Store Industry Fact Book package, visit www.nacsonline.com/ shop or call NACS Customer Service at 800-966-6227. The State of the Industry Report of 2008 Data and the Convenience Store Industry Fact Book are available to NACS member companies (order number 40022033) for $175 ($600 regular price). Additional copies of the State of the Industry Report of 2008 Data/Fact Book (order number 40022034) are available to NACS members for $40 ($175 regular price). The Report is also available as an electronic PDF edition (order number 40022035) to NACS members for $500 ($1,000 regular price). About NACS NACS, the association for convenience and petroleum retailing, is an international trade association representing more than 2,200 retail and 1,800 supplier member companies. The U.S. convenience store industry, with more than 146,000 stores across the country, posted $577.4 billion in total sales in 2007, with $408.9 billion in motor fuels sales.
those secret fees and policies that affect merchants and their customers.” Credit card swipe fees—called “interchange fees” by the big banks that set these rates—are a percentage of each transaction that Visa and MasterCard and their member banks collect from retailers every time a credit or debit card is used. These fees average about two percent in the United States, the highest rate in the industrialized world. “It is time to level the playing field for merchants and consumers,” Sen. Conyers says in a statement introducing the bill. “It is not an attempt at regulating the industry and does not mandate any particular outcome. This bill simply enhances competition by allowing merchants to negotiate with the dominant banks for the terms and rates of the fees.” In 2008, credit card fees cost U.S. convenience stores $8.4 billion—compared to only $5.2 billion in store profits, according to NACS data. Almost all of these credit card fees are attributable to credit card swipe fees.
FLYING J AND PILOT ANNOUNCE PRELIMINARY MERGER AGREEMENT Flying J Inc. (“Flying J”) and Pilot Travel Centers LLC (“Pilot”) announced that they have entered into a preliminary merger agreement that will provide a framework for Flying J’s core travel plaza business to emerge from Chapter 11 bankruptcy protection. Under the terms of the Letter of Intent filed July 14 with the U.S. Bankruptcy Court in Delaware, the value indicated would allow all Flying J creditor obligations to be paid in full. Pilot has also agreed to provide $100 million in Debtor-in-Possession financing for Flying J’s operations, subject to Court approval and various conditions. “After a careful and exhaustive review of the alternatives available, we have concluded that a merger with Pilot represents the best possible outcome for Flying J, our creditors, our customers and our employees,” says Crystal Call Maggelet, Chairman of the Board, Flying J. “Over the next few months, we will negotiate definitive agreements to merge our companies. This transaction will allow us to emerge from the bankruptcy process relatively quickly thereafter and to start a new chapter in the Flying J story.” Jimmy Haslam, CEO of Pilot, says, “We believe that by combining Flying J and Pilot we will better serve our customers by more efficiently providing them with the products and services they need. We look forward to working closely with Flying J and its employees during the Chapter 11 emergence process, and as we take the next steps of a new beginning for both of our companies.” The preliminary merger agreement
with Pilot pertains specifically to Flying J’s core travel plaza business, and it excludes Longhorn Pipeline, Big West Oil, Flying J Oil & Gas, Haycock Petroleum and Transportation Alliance Bank. Flying J is in the process of pursuing or evaluating alternatives for each of these other businesses. Flying J filed for Chapter 11 protections on Dec. 22, 2008, after a precipitous drop in oil prices and disruption in the credit markets brought to bear significant short-term pressure on the company’s liquidity position. Flying J’s legal advisor is Kirkland & Ellis LLP and its financial advisor is The Blackstone Group L.P. Pilot’s legal advisor is White & Case LLP. About Flying J Based in Ogden, Utah, Flying J Inc. is among the 20 largest private companies in America, with 2007 sales exceeding $16 billion. This fully integrated oil company employs approximately 14,700 people in the U.S. and Canada through its interstate operations, transportation, refining and supply, exploration and production, as well as its financial services and communications divisions. About Pilot Pilot Travel Centers LLC is the nation’s largest retail operator of Travel Centers, catering to the professional driver and traveling motorist in 41 states with more than 300 retail interstate properties. The company is headquartered in Knoxville, Tenn. and employs 13,000 nationwide.
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new products
Introducing Dr Pepper Cherry. The newest, smoothest addition to the Dr Pepper family that’s so amazingly smooth you just have to try it. New Dr Pepper Cherry. A kiss of cherry flavor makes it the smoothest Dr Pepper ever. Drink it smooth. Dr’s orders.
Sheetz Inc. will offer First Data’s GO-Tag payment technology solution, allowing consumers to make purchases by tapping their sticker on a contactless reader, and will being selling it at all of its 350 locations across the U.S. by the end of July, the company reports. The GO-Tag solution deployed by Sheetz is configured as an open-loop, reloadable prepaid payment sticker and can be used wherever Visa payWave is accepted. For those merchant locations that do not accept contactless payments, the GO-Tag solution includes a separate magnetic-stripe Visa prepaid card, according to the company. “We are always looking for ways to improve the in-store experience for our customers by making purchases faster and more convenient,” says Louie Sheetz, Executive Vice President, Sheetz marketing. “This new GO-Tag technology will make things easier for customers, as well as for our store employees. We are excited to be among the first retailers to implement this system.” The GO-Tag solution offers consumers the flexibility to place the contactless payment sticker on anything they routinely carry, such as an employee badge, student ID or other personal item.
Dr Pepper-Snapple Group www.drpeppersnapplegroup.com
Sheetz Inc. www.sheetz.com
As the No. 1 selling brand of smokeless tobacco in the country, Grizzly® has come a long way from its first introduction in 2001. More than one out of every five cans of moist smokeless sold is Grizzly. Grizzly continues to grow into a category giant— having 25 percent market share and capturing 99 percent of the category growth.
Oberto is bigger and better than Ever! Now Oberto is delivering a complete line-up of high-velocity SKUs, improved margins and better penny profit for retailers. Watch for exciting integrated marketing programs and continuous innovation hitting the market in 2010. To order, contact Harry Parent at 469-814-1647 or harry.parent@crossmark.com.
Conwood Company LLC Phone: 901-761-2050 www.cwdlp.com
Oberto Sausage Company Phone: 877-453-7591 www.obertosausagecompany.com
Energy Club Inc. introduces a large Stand Up Bag Program of healthy mixes! With almost two pounds in each bag, Energy Club successfully combines high perceived value with upscale graphics and quality product to produce a sure winner. Re-closable with a zip lock top, long shelf life and wide appeal. Energy Club Inc. Phone: 800-324-9180 vguiliano@energyclub.com
Bambu opened its doors in 1764 (originally making Bible paper!) to gradually become the manufacturer of The World’s Finest Rolling Papers. The Bambu name lives on today through their reputation of quality paper products, which are available in nine new flavors as well as their classic Regular, and Big Bambu and Pure Hemp papers! Bambu Sales Inc. Phone: 516-333-4080 www.bambu.com
Kids love the new Quench® Pint Bottle—filled with approximately 25 chunks of Quench Gum. Reuseable BPA-free water bottle contains assortment of Orange, Fruit and Lemon flavors. It’s an eye-catching way to tell the mouth quenching story of Quench® Gum. Kids Love It. Athletes Demand It.™ Complement the “On The Go” water bottle with the Quench Gum water bottle sidekick/ countertop display. Waterbottle is a great way to merchandise Quench 10-stick packs. Mueller Sports Medicine Inc. Phone: 608-643-8530, ext. 376 sarah.stout@muellersportsmed.com www.muellersportsmed.com
July/August 2009
ConvenienceRETAILER
17
new products
YoCream introduces new Tremor™ flavors under their Rancher™ Beverage brand: Wild Berry, Mango, Fruit Punch and Green. The exciting new beverages are boldly flavored, less sweet, a little tart and intensely colored. Available for frozen carbonated and uncarbonated applications.
5-Hour Energy is the original two-ounce energy shot and outsells the No. 2 brand over 11-to-1, and outsells all other brands combined by nearly 2.5-to-1. The top four selling energy shot SKUs are 5-Hour Energy. Do your stores carry all four?
Yo-Cream International Inc. Phone: 800-YOCREAM (800-962-7326) www.yocream.com
5-Hour Energy Phone: 248-960-1700 www.5hourenergy.com
For more than five decades, BAERO has been the European leader in market lighting. In 2006, BAERO North America Inc. introduced the same German engineered luminaires and lamps to the United States and Canada. Included in BAERO’s line of lighting products is the Canopus Batwing which provides both unmatched product display and incredible energy efficiency. BAERO North America Inc. Phone: 314-692-2270 www.baerousa.com
The only clear, fruit-flavored, protein-based nutrition drink on the market, Isopure Plus Nutritional Drink is excellent for adults of all ages, shapes and sizes who don't have time to eat properly. It's also ideal for seniors, chemotherapy patients and people receiving anti-retroviral therapy who often have difficulty getting enough protein into their diets. Packed with 15 grams of high-quality ion-exchange whey protein isolate, Isopure Plus Nutritional Drink has the highest protein content per eight-ounce bottle in its category. It also contains all eight essential amino acids in a fat-free, cholesterol-free formula. With two great-tasting fruit flavors to choose from—Alpine Punch and Grape Frost—Isopure Plus is the clear alternative to thick or milky nutrition drinks.
Meet the newest member of the Dot Foods premium individually wrapped brownie product line made with branded ingredients. These moist and rich brownies are topped with real OREO® Cookie Pieces and baked to perfection. Sleek, upscale packaging and a beautiful, full color shipper/pop-up display merchandiser holding 12 individually wrapped treats are guaranteed to get your customers’ attention. Love and Quiches Desserts’ quality will keep them coming back for more. These super premium three-ounce bars contain zero grams trans fats and are kosher dairy.
The Isopure Company LLC Phone: 800-345-2378 www.isopureplus.com
Dot Foods Inc. Phone: 800-366-3687 www.dotfoods.com
Kellogg Company Phone: 269-961-2000 www.kelloggcompany.com
Republic Tobacco’s TOP Tobacco brand is giving adult smokers relief from high cigarette prices with its new TOP Superoll Tobacco, which is specially blended to provide more cigarettes for the price than other pouch or canned tobaccos, the company stateds. Top Superoll is blended from premium tobaccos, and is available in three styles—Full Flavor, Menthol and Light. The new product will be available in small, medium and large bags, along with pouch and canister packages.
The snack fanatics and makers of popchips™, the pioneering allnatural popped chip company, announce the two newest popstars in their all-natural line of popped potato chips: sour cream & onion, and cheddar. Fellow snackers who have enjoyed spoiling their dinners with popchips can now savor the creamy dip-within-a-chip taste of sour cream & onion, or the savory cheesy boldness of cheddar popped potato chips. Or better yet, both, now that they have two new delicious (and still healthier) flavors to try.
Republic Tobacco Phone: 800-288-8888 www.andromedan.com/republic/
popchips Phone: 866-217-9327 www.popchips.com
Launching a new C-store product? 18
The Kellogg Convenience Store Team is announcing another exciting addition to the channel—Special K® Chocolatey Drizzle Cereal Bar! Every bite of this delicious, 90-calorie snack bar is full of rich chocolatey drizzle. The combination of Kellogg’s® Special K cereal and lightly sweetened icing is one reason this bar is the fastest growing Special K bar flavor. And, with health-conscious consumers wanting delicious, low-calorie, on-thego snacks, this bar is just what consumers are looking for.
ConvenienceRETAILER
July/August 2009
Email Jenna Crisostomo at editor@oser.com with “Convenience Retailer” in the subject line for a list of what to include and deadlines.