ConvenienceRETAILER Volume 2, Number 6
THE NACS SHOW 09 WRAP-UP ISSUE
November/December 2009
M&M’S PRETZEL CHOCOLATE CANDIES HEADLINE AT VEGAS SHOW Mars Snackfood U.S. Unwraps Six New Real Chocolate Items and Exciting Consumer Promotions at NACS Show What happens in Vegas usually stays in Vegas…except when you introduce a delicious new addition to America’s favorite candy brand. At the NACS Show, Mars Snackfood U.S. unwrapped crunchy, salty, sweet M&M’S® Pretzel Chocolate Candies, as well as five other tempting new real chocolate treats, including three previous limited edition Continued on Page 20
CONAGRA FOODS, AMERICA’S FOOD GIANT Bob Biddlecomb, VP Sales Convenience Store Channel, ConAgra Foods, Inc., talks economics, recovery and new products! CR: What is ConAgra Foods’ main line of business? BB: ConAgra Foods is a leading branded foods company and is the trusted name behind many leading snacks, frozen, refrigerated and shelf stable brands, including: Slim Jim, Healthy Choice, Chef Boyardee, Hebrew National, Orville Redenbacher’s, DAVID’s, Hunt’s, and Banquet, among others. Continued on Page 20
OBERTO MAKING CHANGES & HISTORY 2009 marks a historic time for Oberto— full of changes and new alliances. Oberto is proving its commitment to growing the category and retailer profits with substantial investment in what matters most to the trade: improved margins, enhanced penny profit, a high velocity SKU line up and consumer investment. As a company, Oberto is dedicated to “investing for success” and has a renewed focus on product quality, assortment, true innovation, promotional programming and consumer marketing. This translates to understanding the end meat-snack consumer and speaking to him in a relevant way. In January Continued on Page 18
contents nov/dec 09
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6 news briefs 21 16 NACS highlights 18 top news 21 21 new products
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ConvenienceRETAILER Lee M. Oser CEO and Editor-in-Chief
Steve Cox Kim Forrester Kate Seymour
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Associate Publishers
Lorrie Baumann Business Affairs Manager
JoEllen Lowry Senior Associate Editor
Chris Bonney Associate Editor
Valerie Wilson Art Director
Yasmine Brown Graphic Designer
Michael Harris National Director of Sales
Enrico Cecchi European Sales 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
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European offices located at Lungarno Benvenuto Cellini, 11, 50125 Florence, Italy.
news briefs LIVEWIRE ENERGY DELIVERS LONG-LASTING, COMPACT AND TASTY ENERGY CHEW
KRETEK INTERNATIONAL INC. BRINGS THEIR LATEST VERSION OF CLOVE CIGARS TO MARKET
Those looking for a boost of energy without the bulk of a can or the sugar, carbs and often unpleasant taste of a shot need look no further than LiveWire Energy. Developed out of the need to enhance the energy market with a more compact boost of energy, LiveWire Energy has created a series of chews that provide long-lasting energy when you need it most.
Kretek International Inc., exclusive importer of Djarum brand tobacco products, has announced the introduction of Djarum Filtered Clove Cigars in six separate styles, three of which will carry the popular Black brand name with its distinctive red triangle and an adaptation of its black package. The six styles are Classic Black, Vanilla Black, Cherry Black, Special Box, Splash and Bali Hai.
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Two more styles—Mild and Menthol— are scheduled for the end of the year. Djarum Filtered Clove Cigars are packaged in 12-pack flip top boxes, shipped to retailers in cartons of 10 packs. The cigar-sized stick is the latest iteration of Djarum clove cigars dating back to the mid-1990s. The 12-count pack size was developed in response to stated consumer preference for a smaller pack with fewer cigars, and a longer lasting smoke, with the familiar clove aroma preferred by clove smoking adults for more than 25 years. “On average, clove smokers consume fewer than six smokes a week, and they share their packs,” states John Geoghegan, Kretek Product Development Manager. “Almost all clove smokers have a major brand of regular cigarettes they smoke most of the time. They save their cloves for special occasions or a brief escape. The new 12-pack is a better fit for their limited usage and lifestyle.” In development for more than two years, Djarum Clove Filtered Cigars are made with a blend of Sumatra and Java cigar tobaccos, air-cured for smoothness and rich taste. Djarum’s superfine sliced cloves blended with other natural ingredients make each style distinctive. Djarum designed the new products to meet the cigar standards of the Tobacco Tax and Trade Bureau for cigar category content and packaging. Kretek International Inc. submitted sample products and tobacco materials to The Department of the Treasury—Alcohol and Tobacco Tax and Trade Bureau for analysis, inspection and testing. Aircured cigar tobacco has a much lower sugar content than cigarettes. The bureau determined that the product samples and materials submitted by Kretek meet the legal definition and standard for a Cigar in 26 USC 5702(a) and 27 CFR 41.11 in that they are made with air-cured cigar tobacco filler different in taste and aroma from cigarettes, use HTL wrapper consistent with the TTB standard, weigh more than 3 lbs/1000 sticks and are packaged and labeled in 12-packs (versus cigarette 20-packs) in a size that is not likely to be offered to, or purchased by, a consumer as a cigarette. “SCHIP tax rates created an entirely new consumer value proposition for tobacco products,” notes Joel Myden, Corporate Director of Sales for Kretek International Inc. “The new product’s smaller pack count and larger stick lets us offer adult consumers a clove smoke that delivers their expected taste, at a cost that works for our retailers.” Due in part to their high price and strong clove taste and aroma, newly banned clove cigarettes were smoked much less frequently than regular cigarettes. With the ban, distributor attention has turned to the latest cigar product from Djarum. To learn more about new Djarum Filtered Clove Cigars, call 1-800-358-8100 or ask for information at salesinfo@kretek.com.
news briefs PASCO CORPORATION OF AMERICA REVEALS INGREDIENT PHILOSOPHY Established in Portland, Ore. in 1995, Pasco Corporation has established a reputation for producing exclusive bakery, deli and food service products. The combination of scrupulous recipe development, the finest local and regional ingredients and Pasco’s state-of-the-art Quality Assurance Program enables them to deliver a wide range of unrivaled product lines. Every product that rolls out of their 68,000 square foot facility is manufactured to standards that exceed industry norms.
Recipe Development Meticulous care is taken with all recipes they develop and produce. Pasco’s signature recipes are not only tested in their product labs, but also at an off-site independent certified food laboratory. This results in consistently delicious products, whether it is with their signature recipe or a client’s formulation. They’re proud to provide incredible tasting baked goods and no one speaks more highly of their company and its products than the people
IONLITE INTRODUCES NEW CONCEPT IN PERSONAL LIGHTING miniMax Fingertip LED Flashlight Has Safety, Functional Applications IonLite introduces miniMax, a new concept in personal lighting that helps parents keep children and animals safe—and light up dark and cramped spaces. In flashing mode, the miniMax fingertip LED flashlight allows instant visual identification of a child or pet over long distances. In continuous mode, miniMax is a useful tool for home repair, auto repair, and many other uses.
“We designed miniMax with multiple modes for both safety and function,” says Bill Kinsey, President of IonLite. “Attach a flashing miniMax to your child’s finger, or to your dog’s collar, and you’ll be able to see instantly where they are, even in a large park or play area. Or set it to continuous mode and put it on your own finger so you can change that fuse in the basement, wire some video gear, or change a flat.” miniMax offers two flashing modes and four different colors for safety appli-
who know them best: Pasco customers. Pasco’s Ingredient Philosophy Pasco’s standards for raw ingredients are exceptionally high, as they incorporate only the best natural ingredients available in the Pacific Northwest. Their ingredient suppliers have developed exclusive processes and formula for their “clean label” specifications. They source local custom-milled flour from the Cascade Mountains, Montana and Alberta, Canada. Other raw materials they use include locally grown Oregon fruits, berries, nuts and dairy products. cations, allowing fast visual identification of more than one child or pet. The high-intensity LED is visible over long distances, and its long-life batteries provides several days of continuous use. At the same time, miniMax’s bright white high-intensity LED is ideal for work in dark or cramped areas. Delivering the brightness of many conventional two-cell flashlights, its beam can be directed exactly where needed, or it can flood a room with light. Now, reading panel labels, identifying loose or broken wiring or seeing the terrain ahead is easy and convenient. miniMax is retail priced at $19.95 for a package of four different colored flashlights. Introductory television offers will offer three
High Volume Manufacturing Capability Inside their 68,000 square-foot Pasco facility, you will see the advanced technology, high volume production capacity and sparkling production lines that produce the high quality products enjoyed by their clients’ customers every day. Pasco excels in high volume production: the bagel production line produces up to 16,000 pieces per hour. Besides bagels, the facility also runs a Danish and pie sheet line along with a bread line. Combining their state-of-the-art technology with a 40-plus Continued on Page 14
packages for the price of one, or 12 lights including three convenient head bands for $19.95. This brings the cost per flashlight under $2 each. This TV promotion can be seen/purchased on buyminimax.com miniMax’s integrated hook-and-loop strip allows easy attachment to a finger or a pet collar. At 0.8 x 0.8 x 1.5'' in size, it is small and convenient to use. miniMax is powered by three small, replaceable coin-sized batteries and offers up to 50 hours of continuous operation. About IonLite IonLite is a leading manufacturer of innovative lighting and health products. For more information, e-mail mini max@ionlite.com or visit www.ionlite.com.
news briefs KEEP YOUR EYE ON AMERICAN LICORICE CO’S NEW PRODUCTS! In 2009, American Licorice Company launched Extinguisher®—the brand with three levels of sour chewy candies and an extinguisher to take the super sourness away. In addition to Extinguisher continuing to gain distribution in convenience stores, American Licorice Company is launching other new items in the next couple months: Sour Punch Bits American Licorice Company’s Sour Punch® brand is adding Sour Punch Bits to its line-up of exceptional sour candy products. Bite sized pieces covered in
cheek-pinching sour crystals are perfect for sharing and eating on the go. Ready to grab the attention of any teen to young adult in the candy aisle, the bold colored hanging bags and theater boxes are sure to fly off the shelves. New mouthwatering blended flavors include StrawberryWatermelon, Tangerine-Lemonade, and Lemon-Lime all available in 3.5-ounce theater boxes. Extremely versatile, the theater box can be displayed horizontally or vertically depending on shelf availability. In addition to the theater boxes, the new line will also have two 5-ounce hanging bags in Lemon-Lime and
SWEETENERS COME NATURALLY TO NUTRASWEET Natural NutraSweet® is the latest zero calorie alternative to join the family of NutraSweet, the brand that has been sweetening foods worldwide for over 25 years. Natural NutraSweet is a pure, sweet tasting sweetener extracted from the herbal Stevia plant. The plant’s leaves produce a naturally potent, sweet flavor without any calories. NutraSweet captured that sweetness, created a granular texture for sprinkling
and brought it to tabletops everywhere. Craig Petray, CEO of The NutraSweet Company explains how through innovation NutraSweet has been able to expand their sweetener line to include this unique Stevia-based sweetener: “All over the globe, the sweetener world is changing from single sweeteners to sweetener blends. You see most diet products now with sweetener blends to
Strawberry-Lemonade as well as two 8ounce hanging bags in StrawberryWatermelon and Lightnin’ Lemonade™. The uniqueness of the hanging bags allows consumers to see the actual vibrantly colored candy and encourages purchasing. Sour Punch, the sour candy that teases taste buds with a sweet chewy center and secret sour crystals on the outside, offers an array of products including Straws, Bits, Bites®, Ropes and Twists. These products are available in five popular flavors including Strawberry, Green Apple, Cherry, Blue Raspberry and Watermelon.
to ship in January 2010, the 5-ounce Grape Vines will be in the classic tray in purple packaging. With improved flavors and consumers anxiously awaiting its return to the shelves, Grape Vines should be on any buyer’s list!
Red Vines Red Vines® will be introducing an improved Grape Vines to its line-up of tray items as a result of strong consumer interest for this popular flavor. Available
About American Licorice Company An industry leader in the manufacturing of extruded candy products, the American Licorice Company is one of the original licorice manufacturers in the U.S. candy industry. Since its establishment in 1914, American Licorice has brought happiness to consumers with Red Vines, Snaps, Sour Punch, Super Ropes® and Extinguisher brand candy. For additional information, call 800220-2399 or visit on the Web at www.americanlicorice.com.
create more sugar-like tastes. It is also very common to see sugar and non-nutritive sweeteners being blended to create better tasting, more cost-effective sweetener blends. You will see an example of sweetener blending in the new natural Steviabased sweeteners—they all consist of blends of Stevia and other sweeteners. Since by itself Reb A Stevia extract has an aftertaste, by blending in other sweeteners you can create better tasting choices. Our 100 percent Natural NutraSweet sweetener is a blend of a pure cane sugar and Reb A Stevia extract. The touch of sugar we use helps create a better tasting sweetener—
and it’s 100 percent natural. At NutraSweet, our priority has always been taste, which is why we made sure Natural NutraSweet has a sweet taste—as pure as can be. Consumers will enjoy the straightfrom-nature flavor, as they sweeten foods and beverages without the added calories.” Natural NutraSweet is the latest sweetener from NutraSweet to join their One Stop Sweetener Shop, which includes New NutraSweet, NutraSweet New Pink and NutraSweet Cane. For more information or to order, contact Domino Foods Inc. at 800-4432767, ext. 25203.
news briefs PUREOFLOW LEADS THE PURE REVOLUTION Mike Paice, President & Chairman of Pure Revolution discusses PureOFlow.
with a reclaim system, which ensures zero waste.
CR: Tell our readers a little about your company. What’s your main line of business?
PureOFlow’s products, powered by GE, represent the best solution to address today’s economic and environmental concerns related to greener, cleaner water solutions, as well as offering a valuable solution to water softener bans and lead bans.
MP: After spending more than 30 years selling water softeners, I realized that water softeners weren’t the “magic bullet” in water treatment. So I teamed up with another water industry veteran Tom Cartwright to fill the void of affordable reverse osmosis systems for residential and commercial applications. While the technology behind water softeners has not changed at all in 40 years, our systems are revolutionary in efficiency ratio as well as in its environmental impact; hence the company is appropriately named Pure Revolution. With Pure Revolution’s PureOFlow whole-house-whole-business reverse osmosis water purification system, bottled water, household water softeners and at-sink filters become unnecessary, saving end-users money and reducing waste. CR: What makes your company unique? MP: Sustainability is an overriding theme in all our innovations and product development. As a result, we maintain our leadership position by focusing on water purification technologies that protect the environment and maintain the water footprint while generating immediate savings for our customers. With an almost 1:1 ratio, the PureOFlow product line provides the highest efficiency output. And, we are the only manufacturer
CR: What was the most significant event or series of events affecting your company in the past year? MP: After we experienced initial success with Royal Farms, a C-Store in the midAtlantic region and Terrible Herbst based in Las Vegas, we changed our market focus and strategy to expand significantly into the C-Store segment as well as grow our share of the food & beverage segment. With the emphasis on corporate and social responsibility, many commercial and residential customers are focusing on green technologies. The PureOFlow products meet the needs of our customers at many levels—costsavings, consistency, convenience and clear beverages. We have expanded our product line to accommodate various gallon requirements of our customers and so has our market share. CR: Are you new products?
introducing
any
MP: Yes. Innovation is a cornerstone of our company’s vision. With higher than a 90 percent satisfaction rating, PureOFlow products maintain its market leadership position with consistent
NCR Corporation launched its first outdoor DVD-rental kiosk, the NCR LiveWire Energy (Con’t. from p. 6)
From pomaberry to mint chocolate, LiveWire Energy Chews are available in a variety of flavors and come in a small, compact case that’s about the size of a pack of gum. Delivering up to three hours of energy, the chews dissolve in a mater of seconds and have about three grams of sugars and four grams of carbs per serving, with eight servings per pack. Tasty, chewy and desirable, LiveWire Energy Chews are perfect for
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We will continue to innovate and revolutionize the industry to provide our customers the most effective and costefficient solution. CR: Please assess the marketplace as it relates to your product line. MP: In today’s economy, businesses are facing a three-pronged dilemma. Consumers are looking for more perceived value forcing businesses to offer more for less. And, the universal concern for global warming and its prevention often competes with a businesses’ need to operate cost-efficiently. From a C-Store operators’ perspective, tobacco and gasoline are no longer high profit categories so they are looking to food service to replace the lost gross margins. With 44 percent of consumers stopping at a C-Store for breakfast, hot dispensed beverages are poised to flourish. Water is the most important ingredient in food service. By providing a better, consistent taste with purified water, Pure Revolution can help build loyalty and make the C-Store the destination stop for travelers on their route.
In addition to enhancing beverage taste and providing a consistent flavor profile, the PureOFlow product line including the IceOPure system uses 75 percent less filters, significantly reduces the cost of maintenance, extends the life of equipment and uses less electricity. These are critical not just to a company’s profitability, but sometimes essential to its survivability. The PureOFlow product line allows our customer base to go green while saving money and helps them increase profit margins in the beverage category. CR: To what do you attribute your company’s success? MP: One of the many factors contributing to our success is the in-depth understanding of the water industry that Tom Cartwright and I bring from being involved in the industry from all levels over a period spanning almost four decades. This unparalleled insight into how a water treatment solution should perform without harming the environment and how it should help the end-user guides our product development and enhancement. Our technological advancements such as highefficiency ratios, reclaim systems and reducing the environmental impact have garnered the attention of many distributors who are interested in forming strategic partnerships. As we grew exponentially and expanded further into the commercial market, RNK Capital, an environment investment firm with more than $1 billion in assets under management, became our funding partner. The additional financial backing has allowed us to compete more on a national scale as well as expand into international markets.
SelfServ Entertainment 2381. Able to hold as many as 950 DVDs, this weather-protected outdoor kiosk is the most secure and highest-capacity outdoor DVD-rental kiosk in the industry. Through its new outdoor kiosk, NCR will be able to extend its deployment of Blockbuster Express-branded DVD-rental kiosks to
more convenience store and smallerfootprint, 24-hour retail locations. Beyond its Blockbuster Express deployment, the SelfServ Entertainment 2381 can be used by retailers and operators to automate cased rental and packaged sell-through of media titles in a 24-hour, outdoor setting. The SelfServ Entertainment 2381 features the latest self-service technology from NCR, including a 19'' touch screen display that is specially designed for viewing in sunlight. An optional 26''
LCD screen at the top of the unit can be used as digital signage for inventory promotion or brand advertising, and all units are fitted with ATM-grade anti-skimming magnetic stripe reader (MSR) to help prevent fraud. Beyond these standard features, the SelfServ Entertainment 2381 is built with the future in mind, as its flexible architecture enables NCR to easily upgrade units with new technologies when they are ready to be
athletes or those on the road, who need a boost of energy but don’t have time to take continual bathroom breaks. “Anyone who needs a boost to meet the demands of an active lifestyle,” says Bill Hodson of LiveWire Energy, of customers who would benefit from LiveWire Energy. “Athletes, people with demanding jobs, busy mom’s and weekend warriors, the list goes on...” LiveWire Energy Chews are unique because of their triple functionality: • Instant energy—ideal before or during
physical activity. • Sustained Energy—to help you get through prolonged periods of work or play without mental & physical fatigue. • Nutrition—a benefit not found in many energy-enhancement products. LiveWire Energy Chews are also: • Fast acting—Within minutes you feel alert & focused and ready to take on the day. • Long lasting—They provide 100 percent natural, long-term sustainable energy (no “crash” like other highstimulant products).
• Have no can to dispose—they are small, convenient and fit perfectly into a purse or pocket…plus no refrigeration. • Tastes great—People absolutely flip over the delicious taste. You will too! • Contain no liquid—People will not find themselves constantly running to the restroom. This is especially important for busy, non-stop people who want the energy—without the constant pit stops.
NCR LAUNCHES NEW OUTDOOR DVD-RENTAL KIOSK NCR SelfServ Entertainment 2381 will broaden Blockbuster Express deployments, offering enhanced access to convenience store and smaller-footprint store locations.
new product releases. Our latest innovations are a reclaim system, the compact Point Of UseIceOPure system, and a fully enclosed cabinet system for residential and commercial. The IceOPure product is the first direct feed, non-electric system that can connect to a single or multiple units at a location. We featured this in the Cool New Products Room at the NACS show and received a lot of interest from attendees.
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For more information about LiveWire Energy, please call 714-777-7873 or visit www.livewireenergy.com.
news briefs SPEEDWAY SUPERAMERICA EXTENDS CONTRACT WITH EBY-BROWN Eby-Brown Company today announced that Speedway SuperAmerica LLC (SSA) has extended its long time service and supply agreement with Eby-Brown. Under the agreement, Eby-Brown will continue to provide service to all of SSA’s approximately 1,500 convenience stores. The two companies have enjoyed a successful partnership that dates back more than 15 years. Eby-Brown has made major investments in facilities and technology and is positioned to facilitate SSA’s continued growth well into the future. SSA also has made significant investments in resources and technology
Snyder’s of Hanover announced its acquisition of Utz Quality Foods Inc., pending clearance from the Federal Trade Commission.
About Speedway SuperAmerica LLC Speedway SuperAmerica LLC (SSA), headquartered in Enon, Ohio, is one of the nation’s largest company-owned and operated convenience store chains and the largest in the Midwest with approximately 1,500 stores located in nine states. Most of the stores are operated under the Speedway and SuperAmerica brand names. SSA is a wholly owned subsidiary of Marathon Oil Corporation they have loved from both companies,” says Carl E. Lee Jr., President and CEO of Snyder’s, in a press release. “We’ll be playing on the strengths of both companies as we move forward,” says Mike Rice, Utz Quality Foods chairman and CEO. “Our two companies have a lot of similarities: we are both privately held, family owned and operated businesses, and we have tremendous community involvement and support local initiatives for the
betterment of our community.” Rice will serve as a director on Snyder’s board of directors. Snyder’s will continue operations in all four of the Hanover Utz plants, as well as the Snyder’s plant. No jobs will be lost, Lee says. “As we develop our expanded portfolio of brands, we believe this will lead to additional sales and manufacturing jobs over time as we grow both brands and expand the new company.”
director Tsuneo Goda as the mascot for Japanese public television station NHK in 1998, Domo has a unique look and personality that quickly catapulted the character into one of the Internet’s biggest sensations. Domo has achieved pop culture super-status through usergenerated content and thousands of viral videos on popular websites like YouTube, Facebook and Flickr. “Fuji Frost has a sweet red-apple taste, which is a tongue-in-cheek choice since apples are the one food Domo doesn’t like,” says Jay Wilkins, 7-Eleven Category Manager for proprietary cold
beverages. “Because Domo loves Slurpee drinks and appears everywhere in our stores, theoretically Fuji Frost Slurpee drinks are Domo-proof.” Fuji Frost is named for Mount Fuji, Japan’s most well-known landmark. A new three-part webisode, which can be viewed exclusively online at and www.domonation.com, tells the story of Domo and his friends on a quest for a Slurpee beverage. Each of the 30-second segments debuted weekly on the two websites back on Oct. 1. The stop-action animated Domo video was created and produced exclusively for 7-Eleven by Dwarf Inc., the Japanese animation company that originally created Domo and all his friends. Collectible cups feature Domo and
his furry sidekicks enjoying Slurpee drinks and one showing Domo experiencing a Brainfreeze™. For Domo fans, a tiny flocked Domo character is affixed to premium Slurpee straws, selling for $1.99. From hip-hop to wrestling themes, each of the four Slurpee straws features Domo sporting a different costume and accessories. Coffee and Big Bite hot dogs, two of 7-Eleven’s best-selling proprietary items, also get ‘Domo-nized’ as a limited offering through Nov. 15. To reach younger coffee drinkers, 7-Eleven is offering coffee in a special brown Domo cup for just 99 cents. Store signage promoting the coffee deal urges customers to “Obey the Domo.”
DVD-rental kiosks to new locations, including convenience stores and gas stations. Consumers will benefit from easier access to their favorite new release and classic DVDs in accessible, 24-hour locations,” says Alex Camara, Vice President and general manager, NCR Entertainment.
NCR expects to invest as much as $60 million in 2009 to build out its DVDrental kiosk operations. The company expects to deploy more than 2,500 kiosks in 2009 for a total of 10,000 kiosks by mid-year 2010. Consumers can rent new release and classic DVD titles from Blockbuster
Express kiosks for $1 per night at conveniently located retail locations, including grocery stores, convenience stores and other retailers. Recently, NCR announced it was bringing Blockbuster Express to Tedeschi Food Shops, a 188 convenience store chain located in New England.
trained by the American Institute of Baking and bring years of hands-on experience to their work. Collectively, their Quality Assurance Program has helped them earn the American Institute of Baking’s superior rating, their highest award.
increased, so has their development of new products. Pasco has a network of customers who are instrumental in helping to identify consumer trends for new products in all developmental areas: baked goods, deli and savory products. Pasco takes pride in partnering with their customers to develop products their consumers demand. Pasco Corporation has established a
leadership position in their field because of dedication, enthusiasm and pride. They are delighted that their products continue to be recognized for superior flavor, texture and quality. Their continuing success is directly attributable to exceptional and consistent product quality, state-of-the-art capabilities for the most demanding orders and responsive, world class customer service.
“We are pleased to announce that two market leaders will be combining forces to create a stronger company that will strengthen our position in the marketplace, serve our retailers and vendors better, and continue to give consumers the brands and products that
7-ELEVEN STORES FACE TOTAL DOMO-NATION Furry Brown Japanese Sensation Stars in Storewide, Online Promotions this Fall Domo, the fuzzy brown creature with a trademark enigmatic open-mouth expression, takes 7-Eleven® stores by storm this fall. From collectible Slurpee® cups filled with Fuji Frost by Fanta, and flocked Slurpee character straws to Big Bite® hot dog containers, coffee cups and even an exclusive Domo Attack! energy drink, Domo will have 7-Eleven customers seeing brown, interrupted by red and sharp white teeth. Created by Japanese illustrator and NCR Corporation (Con’t. from p. 12)
deployed—such as the digital download of video files and a barcode scanner for age verification using a driver’s license. “This new technology will enable us to work with even more partners as we roll out our Blockbuster Express-branded Pasco Corporation (Con’t. from p. 10)
employee staff and two shifts means a capacity of up to 40 tons of dough a day. Quality Assurance Pasco’s Quality Assurance Program includes documented hourly self-audits, on-going employee training and “Strict Process Control.” Pasco employees are
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(NYSE:MRO). For further information about SSA, visit the company’s Web site at www.speedway.com. About Eby-Brown A privately held company, Eby-Brown, with headquarters in Naperville, Ill., is one of the largest distributors in the United States, providing consumer goods and other products to retailers in the convenience channel of trade. Small and large retail chains, as well as independent retailers throughout the eastern United States have come to depend on Eby-Brown for an array of distribution services, flawless execution and flexibility in program design. To learn more about Eby-Brown, please visit www.eby-brown.com, contact Ron Coppel at 630-536-3903 or e-mail ron.coppel@eby-brown.com.
aimed at delivering a more efficient and effective replenishment model. To that end, SSA needs vendor partners willing to embrace these changing supply chain requirements in order to continue to satisfy its customers. Tony Kenney, SSA President, states, “As a retailer, we understand that in order to deliver a consistent exceptional customer experience, we need business partners who are willing to adapt and move forward with us. We believe Eby-Brown demonstrates a sincere conviction to meet our supply chain initiatives.” Tom Wake, Eby-Brown Co-President
SNYDER AQUIRES UTZ QUALITY FOODS, COMBINE FORCES The company plans to continue operations at all four Utz Pennsylvania plants.
adds, “The fact that Speedway SuperAmerica has decided to continue our long-standing relationship means they appreciate our dedication to superior customer service. We at Eby-Brown look forward to honoring our commitment to assist with SSA’s continued growth and success.”
Research & Development As demand for Pasco’s product line has
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highlights
THE NACS SHOW 2009:
POST-SHOW HIGHLIGHTS
Thanks to great exhibitors like those pictured, the 2009 NACS Show was phenomenal with 66 workshops, 10 professional tracks and unbeatable connections. The new M&M’S Pretzel Chocolate Candies stole the show, and though it may take everyone a while to recover from a great event in Vegas, it’s never too early to start planning for next year. The 2010 NACS Show will be held Oct. 5-8 in Atlanta, and will provide another dose of informative workshops, endless networking opportunities and more ideas for improving your business. So as you’re updating your contact lists for this year and reviewing our post-show issue, don’t forget to mark your calendar for 2010. We’ll see you there!
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top news CONVENIENCE STORES WILL CONTINUE TO PROSPER NACS Chair Sonja Hubbard delivers a passionate overview of the industry’s engagement, diversity and strength at the NACS Show general session “Despite our many challenges, our opportunities are even greater,” notes 2008-2009 NACS Chairman Sonja Hubbard, CEO of Texarkana, Texasbased E-Z Mart Stores Inc., at the NACS Show opening general session. Hubbard cited several unique traits of the convenience and petroleum retailing industry that allow it to prosper. “We innovate, seize opportunities and use our engagement and diversity as our strengths,” she says, adding that the industry is about ideas. “Think about the everyday things, just taken for granted, that were either developed or popularized in our stores — all in the name of convenience. Selfservice gasoline, 24/7 operations, pay at Oberto (Con’t. from p. 1)
2010, Oberto will launch its Alphasized activation platform, complete with motivating advertising, consumer promotions and sweepstakes. It is evident that Oberto strives to achieve a level of excellence with retailers and consumers alike; therefore, a complete range of quality meat snacks, coupled with integrated marketing programs
the pump, ATMs, self-serve fountain and coffee and so much more,” she says. In fact, the industry’s ability to quickly adapt has allowed it to top more than $600 billion in sales—an astounding one of every 23 dollars spent by American consumers in 2008. However, this doesn’t mean that the industry isn’t without its challenges, especially on the legislative front. “I cannot think of another industry that faces more tax and regulatory challenges than convenience stores,” she said. “Constant excise tax increases, pending FDA regulation [of tobacco], expanding labor laws and new fueling mandates…The poorly thought-out, irrational legislation that is pouring out of Capitol Hill today is a huge threat to our business.” She urges retailers to engage Congress, to “Tell them our story, defend our business and demand a level playing field.” Above all, she says, “Stand up for creates an unbeatable program that will drive category sales. Oberto plans to reach its target market through a College Sports focused media platform. This advertising campaign features programming on both regional and national networks. Television advertising on stations like ESPN, Fox Sports and CBS Sports will quickly build reach and awareness while a heavy online presence maintains conti-
Centrally located with 25' banners that reminded attendees to “Eat Like Alphas,” the Oberto booth was designed with an open and inviting layout enabling show attendees to comfortably relax and learn about what’s new with Oberto.
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what you believe in and support NACS advocacy efforts.” Hubbard mentioned that the retailers are not only fighting for their businesses, but also for their customers. A prime example is the outrageous credit card interchange fees the industry pays—$8.4 billion in 2008 alone. “I want you to know that NACS is not taking this lying down. We are fighting so that fair and normal business practices prevail for our customers,” she says. Hubbard also says that the industry’s openness and engagement makes it unique. “I’ve heard this from our suppliers—and I saw it all year on the road. We share experiences, we mentor and value our relationships and we engage. That’s why I love this industry so much,” she says, adding that the industry’s diversity gives way to better decisions, experiences and opportunities for growth. Hubbard concluded by discussing how the industry—even in times of adversity—has remained viable and successful by drawing comparisons between today and 1993, the year that her father, Jim Yates, served as NACS Chairman.
“Those were tough economic times, too,” Hubbard says. In fact, there was a workshop at that year’s NACS Show that addressed the top issues facing the industry—a war, a credit crunch, challenging environmental regulations and a recession—some of the same issues we are facing today. “But my dad knew it was a cycle— that we were resilient—that we would be just fine, and he said so at that year’s NACS Show,” says Hubbard. While there are similarities, plenty has also changed since 1993. “Back then, our sales were about $130 billion. Today, they are five times that. Our stores used to be thought of as the last option for many items, but today we are a destination. And back then, our big effort on Capitol Hill was simply to get our foot in the door. It took a lot of hard work by a lot of people, but today we’re invited in. “So today, I’m here to tell you that not only are we going to be just fine, we are going to be even better,” Hubbard says. For more information, visit the National Association of Convenience Stores online at www.nacsonline.com.
nuity, engagement and creates message reinforcement. This robust media plan provides in-program exposure, not only with regular commercial spots, but with an array of additional spotlights. College sports fans will view Oberto messaging through presenting sponsorships, online features, custom in-game features, on-set signage and co-branded promo spots. With college sports having a reach of more than 177mm people, Oberto’s 2010 media plan is sure to speak to its target demographic. In addition, Oberto announced the launch of the most exciting meat snack innovation in recent years—Steak & Cheese. This new twist on meat and cheese intensifies premium steak with real cheddar, bacon and jalapeño—real stuff that guys crave. Available in 3.25-ounce bite size bags and 1.4-ounce single serve sticks, Oberto is delivering true innovation that will bring new consumers to the category. Available in three bold flavors: Cheddar Bacon, Queso Jalapeño and Original Cheddar…Oberto’s new Steak & Cheese lets guys eat like Alphas! Steak & Cheese was introduced to the public for the first time at the 2009 NACS tradeshow and proved to be a convention hit. Sampling of the product at the Oberto booth had attendees and fellow vendors begging for more. Steak & Cheese will be shipping to wholesalers, distributors and retailer nationwide this January. Any true Alpha would feel at home in the 2009 NACS Oberto booth. Mimicking a favorite sports bar, the booth was equipped with flat-screen TVs
that streamed ESPN2 College Sports, free beer and posters that encouraged attendees to “Wash that drink down with some meat.” An Innovation Station stocked with Steak & Cheese Bites, Pepperoni, Original and Spicy Sausage Sticks kept visitors full of game day grub. Oberto even had Jerky Girls adorned in sporty attire for a real game day feel, distributing product samples. Centrally located with 25' banners that reminded attendees to “Eat Like Alphas,” the Oberto booth was designed with an open and inviting layout enabling show attendees to comfortably relax and learn about what’s new with Oberto. As if the Ultimate Alpha Booth was not enough, Oberto also held a contest for guests to win a 52'' Alpha-sized LCD flat screen TV. Oberto will be announcing the lucky winner this November. Oberto takes care of Alphas at home and abroad, so after the show, left-over product was donated to the U.S. military for care-packages and to local food banks. Being a family-owned company since 1918, Oberto has given back to its community for over 90 years. For more information about Oberto, visit www.eatlikeanalpha.com.
top news Mars Snackfood (Con’t. from p. 1)
candies that were brought back by consumer demand. All six new confections combine unique flavors with real chocolate, from the new MUSKETEERS® Truffle Crisp Bars and MILKY WAY® Simply Caramel Bar, to returning favorites M&M’S Coconut Chocolate Candies, M&M’S Wildly Cherry Chocolate Candies and TWIX® Java Chocolate Cookie Bars. “Starting at the end of this year, we are excited to roll out various new real chocolate products from our M&M’S, 3 MUSKETEERS, MILKY WAY and TWIX brands,” says Jim Murphy, Vice President of Sales, Mars Snackfood US. “From introducing sweet new offerings like 3 MUSKETEERS Truffle Crisp to bringing back winning limited edition products like TWIX Java and M&M’S Coconut, we’re providing Americans with additional great options from brands they’ve known and loved for years to satisfy their chocolate palette.” At the NACS Show, the country’s largest candy company launched the following enticing treats: • Introducing M&M’S Pretzel Chocolate Candies—new M&M’S Brand flavor that combines sweet and salty in every bite size piece. Launching in May 2010, M&M’S Pretzel Chocolate Candies have a crunchy, salted pretzel center covered in delicious M&M’S Milk Chocolate and coated in a colorful candy shell. • At 170 calories and available in January, 3 MUSKETEERS Truffle Crisp Barsare a sensible snack featuring a whipped up chocolate truffle on a crisp layer enrobed in real milk chocolate. • In January, consumers seeking a total caramel experience will find euphoria in the new MILKY WAY Simply Caramel Bar, tempting with rich, creamy caramel surrounded by real milk chocolate. • TWIX Java Chocolate Cookie Bars, moving from a 2008 limited edition to a permanent offering in April 2010, feature coffee-flavored caramel paired with irresistible chocolate cookie and covered in delicious TWIX Brand chocolate. • Back by popular demand after a limited edition run last summer, M&M’S Coconut Chocolate Candies will be on shelves
again in December. Featuring signature M&M’S Brand Milk Chocolate, these delicious candies will be available in a special, coconut-only blend of green, brown and white crunchy candy shells. • M&M’S Wildly Cherry Chocolate Candies will be available in December, with signature M&M’S Brand Milk Chocolate and rich cherry flavor. • M&M’S Peanut Butter Chocolate Candies, with a peanut butter creme center, surrounded by signature M&M’S Brand Milk Chocolate and a colorful, crunchy candy shell, are now available in “Tear ‘N Share” size. In addition to new products, Mars Snackfood U.S. unveiled exciting consumer promotions at the trade show, including: • Consumers will choose their favorite colorful M&M’S Brand Character in the M&M’S Brand Character Vote. Beginning Apr. 1, 2010, a M&M’S Brand vote-themed packages will contain messages from one of the characters urging consumers to vote at www.mms.com for their favorite “candydate.” Lucky consumers can win prizes, and those who vote online will be eligible to win the $50,000 grand prize in a sweepstakes drawing July 15.
• In a partnership between COMBOS® Brand and Habitat for Humanity®, consumers will have a chance to win “The Perfect Zone for Your Home.” Brand will donate $100,000 to Habitat For Humanity® as part of the sweepstakes, launching in February at COMBOS.com. Consumers can enter to win their favorite “zone”—tailgating, media room or game room—each with an estimated value of $25,000. • Snackonomics from SNICKERS Brand will encourage consumers to collect letters from specially marked packages to win valuable prizes January through March 2010. The person completing the word SNACKONOMICS will have their mortgage paid (up to $225,000) while other winners will receive cash prizes such as a year’s salary or car. • Through Dec. 15, consumers can participate in the SNICKERS Brand NFL™ Be A Super Bowl® Chompion Sweepstakes, they’ll have the chance to instantly win a trip to Super Bowl XLIV in Miami. Consumers also can enter the game code from a SNICKERS Bar wrapper at SNICKERS.com for a chance to win the trip and other NFL prizes. For more information about Mars products and proMars Snackfood U.S. unwrapped six new real chocolate items motions, contact your Mars and exciting consumer promotions at the NACS Show. For more photos from the show see page 16. representative or distributor.
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ConAgra (Con’t. from p. 1)
a vehicle for growth to the customer.
CR: What makes your company unique?
CR: What is the status of the Slim Jim recovery?
BB: No other manufacturer covers all meal occasions, tastes by lifestage, or products by temperature state. ConAgra Foods has 26 brands in frozen, refrigerated, and shelf stable that are either No. 1 or No.2 in growing categories—including the category growth driver, Slim Jim (the No.1 meat stick brand). This portfolio helps us help our customers capitalize on the growing consumer demand for convenient, frozen and shelf stable meals at C-Stores—especially among younger women seeking a healthier lunch or dinner meal option in a hurry. Since launching Healthy Choice Café Steamers and Healthy Choice Fresh Mixers last year, C-Stores in areas with high concentrations of office complexes and college campuses saw growth with these brands rivaling that of traditional grocery stores. In the right setting, these categories can drive major incremental growth for C-Stores. CR: Are you new products?
introducing
BB: Since Slim Jim production was disrupted in June as a result of an accident at our Garner, N.C. plant, we have relied on existing inventories to service customer needs, although shipments have been at reduced levels. We are on track in our efforts to reestablish production capacity for the brand and expect the business to achieve acceptable service levels very soon. Through this, Slim Jim remains America’s No. 1 meat stick thanks to the overwhelming support of our retailers in retaining shelf space and our strong brand equity and leadership within the category. We look forward to further growth once our exciting brand re-launch goes live in early 2010. For more information www.conagrafoods.com.
visit
any
BB: In December, we will be launching an exciting new flavor for DAVID® Seeds—Chili Lime. With flavored seeds up 14.4 percent, in the C-Store channel, this is a great opportunity to capitalize on a winner. CR: How are you helping C-Store retailers drive growth, given the current economic recession BB: No doubt these are challenging times, but we have programs in place to help the customer attract new consumers to categories we compete in. For example, the shared rack program we launched three years ago has been very successful in providing 7-Eleven (Con’t. from p. 14)
Likewise, the Big Bite hot dog also will retail for 99 cents and be served in a cardboard “clam-shell” carrier resembling Domo’s face, with the mouth opening to reveal the food. “You won’t be able to go to a 7Eleven store in October and miss Domo,” Wilkins says. “We’ve let Domo fans know he’s coming with notices on Facebook and Twitter, and the online buzz about his 7-Eleven debut has already been building.” A larger-than-life Domo candy display will feature Snicker’s and Reese’s candy bars in the open mouth of the character as well as a shelf to display Domo DVDs ($15.99), where available. Collectibles like Domo Qee* miniature action figures in cup-like packaging ($9.99), Domo Manga comic books ($3.99), plush characters and apparel, like caps and Tshirts are also available. 7-Eleven has even emblazoned special-edition gift
cards with Domo’s likeness. Domo is also front and center on much of the in-store product signage and storefront banners. Big Tent Entertainment, the marketing and licensing company behind Domo, helped broker the deal with 7Eleven. “Because Domo has such a hugely devoted, cult-like following among kids, teens and young adults, we believe he’s a perfect match for 7Eleven and its iconic Slurpee brand,” said Big Tent Chief Executive Officer Rich Collins. “7-Eleven has created some very cool collectible items that will have Domo fans and Slurpee drinkers alike coming back for more.” *Qee (pronounced “key”) is a collection of designer toys created by Hong Kong-based company Toy2R. Qees are produced in limited numbers and are highly collectible. Many contemporary artists and designers from Asia, Australia, Europe, North America, and South America have designed figures.
new products
Johnsonville®, America’s No. 1 sausage brand, is shaking up the sandwich menu with the introduction of new hand-held sandwiches. The two popular and mouth-watering flavors of these easy-to-eat sandwiches, Smokey Cheddar and Smoked Brat, are enrobed in a soft baked roll and are sure to Flavor Up™ any sandwich program. Johnsonville—Gordon Hanrahan Phone: 888-556-BRAT (888-556-2728) www.johnsonville.com
Nature Valley® has brought natural goodness to snacking using wholesome ingredients for over 30 years and now Nature Valley enters the nuts and seeds category with new Nature Valley Granola Nut Clusters. A sweet and salty combination of premium whole roasted nuts rolled in Nature Valley granola with just a touch of honey. Nature Valley Granola Nut Clusters are available in the Roasted Almond and Nut Lovers varieties. General Mills Inc. Phone: 832-524-3026 www.generalmillscstore.com
This new twist on meat and cheese intensifies premium steak with real cheddar, bacon and jalapeño— real stuff that guys crave. Available in 3.25-ounce bite size bags and 1.4-ounce single serve sticks, Oberto is delivering innovation that will grow the category and retailer profits. Three bold flavors— Cheddar Bacon, Queso Jalapeño and Original Cheddar. Tearing into Steak & Cheese is not only your birthright, it’s your duty as an Alpha.
WARHEADS® Sour Chewy Cubes are the latest innovation from the leader in sour candy. These cube shaped chewy candies in six fruity flavors have a tangy sour coating that will get your pucker on.
Engineered Service Products is currently developing an upgrade feature for Vendo-XTM Versatile Marketing Containers to ensure compatibility with popular Energy Shots. Introduced at NACS 2009, Vendo-X units are stackable and configurable for a wide variety of products, thereby maximizing valuable counter space.
Impact Confections Phone: 877-770-7677 www.impactconfections.com
Engineered Service Products Phone: 734-417-1145 www.vendo-x.com
The combining forces of the amazing Cinnabon® taste and Kellogg’s® products only sounds too good to be true! The Kellogg Convenience Store Team is excited to introduce Kellogg’s Cinnabon Snack Bars! Each single-serve bar is packed with rich cinnamon filling, sweet melting frosting and are available in both Original and Caramel. At just 150 calories per bar, it just doesn’t get any better!
Trident®, the good for your teeth gum that also tastes great, introduces new Trident LayersTM— new sugar-free, delicious dual-flavor combinations. Layers is uniquely formulated with a very visible middle flavor layer, allowing each bite to deliver a double taste sensation of fruitiness that will delight all taste buds! Layers are available in two taste bud popping flavors: Wild Strawbery+Tangy Citrus and Green Apple+Golden Pineapple, both with real fruit flavors.
The BYO Ethanol Program shows you how to put the groundbreaking ethanol blender pump technology to good use in what is a rapidly expanding market, letting your customers choose the ethanol blend that best fits into their budget and vehicle. The possibility for financial incentives for retailers is substantial, depending on the location. Contact the Renewable Fuels Association for more information on the Blend Your Own (BYO) Ethanol Program.
The Kellogg Convenience Store Team Phone: 888-289-5554 www.kelloggsconvenience.com
Cadbury North America Phone: 973-909-2506 www.cadbury.com
Blend Your Own (BYO) Ethanol Program Renewable Fuels Association www.BYOethanol.com
Oberto Phone: 469-814-1647 www.eatlikeanalpha.com
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ConvenienceRETAILER
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new products
Slim Jim / TABASCO® Spiced Jerky is the fifth flavor launched in Slim Jim’s jerky family. The sweet smoked mesquite flavor with a fiery TABASCO spice makes this a great snack choice for consumers looking for a tasty, spicy treat. This great flavor continues to leverage the brand equity of Slim Jim and TABASCO brand. Slim Jim / TABASCO brand partnership has been successful in the stick segment. TABASCO brand is clearly a strong flavor profile. TABASCO Spiced Giant is Slim Jim’s No. 3 flavor and No. 5 ranked SKU in sticks per IRI. TABASCO Spiced Monster, No. 7 ranked stick SKU, is growing +29.6 percent vs. YA (August 2009) since its January 2007 launch. TABASCO is a registered trademark and servicemark exclusively of McIlhenny Company, Avery Island, LA 70513. ConAgra Foods Inc. www.tabasco.com www.conagrafoods.com
Use the miniMax fingertip flashlight to put light exactly where you need it: in your purse, in a cabinet or even in your car. Better yet, use it as a safety light for kids and pets—it’s visible from miles away! As seen on TV, this tiny multi-functional flashlight is great for motorists and travelers. IonLite Phone: 877-788-8466 www.ionlite.com
EnergyRush PocketBoosters™ are available in unique, patentpending packaging that allows PocketBoosters to be taken as shots or used as water boosters. For on-the-go use, they are easy to carry and easy to use on the fly. Just shake them, snap them open and squeeze them out. Available in three delicious flavors—Mixed Berry, Kiwi Strawberry and Tropical Fusion—each EnergyRush PocketBooster is surprisingly sweet without containing sugar, aspartame or calories. Also, coming soon is the Vivenza BlueRush PocketBoosters for all-natural male enhancement.
AirTight Networks Phone: 877-424-7844 www.airtightnetworks.com
Finding an elusive four-leaf clover is considered an omen of good luck…now Zippo ups the odds of good fortune with a real four-leaf clover encased in an epoxy dome. The clover is mounted on a gleaming Zippo chrome lighter. A lucky charm, this lighter was the top-seller in a recent convenience store test.
Sunny D is one of the most recognized brands in the juice drink category and enjoys a strong and growing presence in convenience stores across the country. Sunny D's 16-ounce PET bottle has been warmly received by retailers and is now available in eight exciting flavors, including new Orange Carrot, Orange Pineapple and Orange Cherry from Sunny D's DSD distributor network.
With over five million Snuggie™ blankets sold in its first year, America’s favorite blanket with sleeves is back and better than ever! The Snuggie blanket is more than a fun idea, impulse buy or kitschy cool TV advertisement; it is an innovative product that really delivers and consistently flies off retailers’ shelves. The Snuggie blanket is the comfiest, coziest way to keep warm, and still have hands free to channel surf, snack, sip…the list goes on. Available is the Snuggie Wild Side, Snuggie Luxury Microplush, Snuggie for Dogs, Snuggie for Kids, Snuggie Breast Cancer Pink and the Original Snuggie Blanket! “The Snuggie blanket answered a basic need for millions of people last year, bringing warmth, comfort and convenience to homes across the country,” says Anne Flynn, Director of Marketing for Allstar Products Group. “We’re thrilled to expand the line for our convenience retailers, providing new colors, fabrics and features to match any customer’s needs.” To see the new Snuggie blanket styles and learn more about Allstar Products Group, visit their Web site.
ZIPPO Manufacturing Company Phone: 814-368-2700 www.zippo.com
Sunny Delight Beverages Co. Phone: 800-395-5849 www.sunnyd.com
All Star Products Group Phone: 914-347-7827 www.allstarmg.com
Jay’s Import & Wholesales Phone: 877-568-9280 www.jayspharma.com
Launching a new C-Store product? 22
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ConvenienceRETAILER
November/December 2009
Email editor@oser.com with “Convenience Retailer: New Product” in the subject line for a list of what to include and deadlines.