Convenience Retailer Nov/Dec 2011

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NEW FEATURE: PRODUCTS FROM THE NACS SHOW 2011

OPERATIONS:

INDUSTRY CALENDAR

NACS WRAP UP COVERAGE

Research and Markets Offers Insights Into Convenience Retailing Changes

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BUYERS GUIDE SEE PAGE 24-25

ConvenienceRETAILER

Volume 4, Number 6

November/December 2011

Shoplifting, Fraud, Errors Cost Billions in Retail Industry

Nearly Half of U.S. Retailers Surveyed Report Increased Losses From Organized Retail Crime

the clothing retailer was left with more than $1 million in fines for violations of the Immigration and Nationality Act, which requires employers to verify employment eligibility of its employees. The audit uncovered numerous technology-related deficiencies in Abercrombie & Fitch’s electronic I-9 verification system, according to ICE. “Employers are responsible not only

If you don’t think sticky fingers really concerns you, think again. Shoplifting, employee or supplier fraud, organized retail crime and administrative errors have increased 6 percent in the U.S., and 6.6 percent worldwide, costing the retail industry $119 billion in 2011 or 1.45 percent of sales, according to the Global Retail Theft Barometer. This represents the highest percentage recorded by the survey since it began in 2007. Not only is this a cause for concern to retailers, but consumers, too. The cost of theft to U.S. shoppers averages now $435 per family. The study, underwritten by an independent grant from Checkpoint Systems Inc., monitored the cost of shrink loss from shoplifting, employee theft and administrative errors in the global retail industry between July 2010 and June 2011. It found that shrink increased in all regions surveyed. Customer theft, including shoplifting and organized retail crime, up 13.4 percent, was the primary cause in most countries, costing retailers $51.5 bil-

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ICE Crackdown on I-9 Compliance Increases; Smaller Retailers Coming Under Scrutiny Companies Develop Software So Employers Don’t Have To Sweat Audits

Never before has it been more important to make sure every new hire is eligible to work in the United States as the federal government’s pressure on employers increases. Last year, after the U.S. Immigration and Customs Enforcement’s Office of Homeland Security Investigations conducted an audit of clothing retailer Abercrombie & Fitch’s Michigan stores, BY A.J. FLICK

New C-Store Stock Should Recognize Healthy, Tech-Connected Lifestyles, NACS Show

Trendspotters Say Today’s Smartphone-toting, 24-7 college-age young people want more from a convenience store than just grab-and-go. They want health. They want humor. They want food they can eat while they multitask. Finally, of course, they want it all at a good price. These were some of the expectations voiced by a panel of three college-aged Chicago trendspotters with locally popular Twitter accounts, organized by show management at the recent National Association for Convenience and Fuel Retailing (NACS) show. Given the run of the show floor, the young convenience store shoppers had these BY ROCELLE ARAGON

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SURE BETS ■

FEATURES ■

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TPE 2012: Two Full Days of Buying & Networking Power Profiles: John Lounsbury, Director of Marketing for Terra Environmental Technologies; Robert Denholtz, CEO of Creative Serving Inc.; and Vic Kennett, Founder and CEO of Kerruso

TOP TECH ■

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BeBevCo’s Koma Unwind Lands C-Store Distributor, First Nationwide Chain Jackie Chan Energizes New V8 Ads

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Online Advertising Lifts In-Store CPG Brand Sales, Studies Show

Customer Satisfaction Stays High for Beverages, Cigarettes and Cleaning Products

Soft drinks, beer and cigarettes—three nondurable goods industries—continue to please their American customers, even though the U.S. sales continue to decline. But at same time, these industries are looking toward the Asian markets to boost balance sheets, according to a new report by the American Customer Satisfaction Index (ACSI). Continued on Page 12

PRODUCT FEATURES ■

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SEE PAGES 28-29

Balance Calorie Intake with Dole Fruit Smoothie Shakers Power Crunch Protein Cookie Award-winning Healthy Olive Snacks from Olove’s

www.convenienceretailer.net

NEXT ISSUE: Tobacco Products BUYERS GUIDE:

Electronic Cigarettes

Nicotek: “Electronic Cigarettes Done Right”




sure bets BeBevCo’s Koma Unwind Lands C-Store Distributor, First Nationwide Chain Bebida Beverage Co., a developer, manufacturer and marketer of relaxation and energy drinks, has made an agreement with Sledd Distribution of Wheeling, W.Va. Sledd now becomes part of an everincreasing portfolio of distribution partners for BeBevCo. The announcement comes on the heels of news that BeBevCo.’s flagship product, Koma Unwind, will be carried in 90 7-Eleven convenience store locations in western Pennsylvania and West Virginia. This represents the first nationwide chain store distribution in BeBevCo’s history. Sledd has more than 70 years in the distribution business and serves convenience stores in Pennsylvania, West Virginia, Kentucky, Virginia and Ohio. Sledd Distribution will be responsible for the roll out of Koma Unwind relaxation drinks to the 90 7-Eleven locations. In addition, Sledd will offer Koma Unwind product line to hundreds of other locations throughout its distribution network. “Sledd serves a large market with respect to the number of convenience stores and we are pleased to be working with them,” said Brian Weber, CEO of BeBevCo. “Their distribution to 7-Eleven stores in Pennsylvania and West Virginia is just the beginning. They will offer our products to many other stores in their network. “At this point, we are literally signing new distribution deals every day. Just a

Dr Pepper TEN

Designed specifically for men who prefer the full-flavor experience of regular Dr Pepper but want a lower-calorie option without the diet imagery, Dr Pepper TEN features a distinctly masculine package design, complete with a gunmetal gray color scheme, industrial rivets and bold new font. Consumer feedback and research showed that many men between the ages of 25 and 34 are not completely satisfied with the taste or image of diet sodas— although they understand the need to make healthier beverage choices. Responding to this insight, Dr Pepper Snapple Group (DPS) developed a unique blend of sweeteners to achieve a like-reg-

Jackie Chan Energizes New Ad Campaign to Remind People That They ‘Could’ve Had a V8’

few months ago, the trucks were leaving our facility about once a week; now they are leaving every day with our products to take them to locations in the U.S. and abroad,” said Weber. Koma Unwind has become the leader in the new and rapidly growing relaxation drink category of beverages. Brand recognition and marketing efforts on behalf of Koma Unwind has led to the company’s achievement of linking territories with major retailers. Koma Unwind is the premium choice for those suffering from stress anxiety and poor sleep that inundate Americans on a daily basis. The Koma Unwind brand and its multidemographic marketing, coupled with its fantastic taste and functionality, is why so many retailers are looking for a relaxation product that is not just a passing fad or novelty or carry controlled substance innuendos or other questionable marketing tactics used by some competitors. “This is obviously a huge development for us, but it’s actually just the beginning of what we see clearly as a much larger rollout of our products over the coming weeks and months,” said Weber. “Requests for our products are rolling in so fast that we have had to set up a ‘situation room’ to keep track of all the leads, requests and enquiries. We are ecstatic about the success of our brand but again, this is only the tip of the proverbial iceberg.” ■

Campbell Soup Co. has launched a new V8 brand advertising campaign that taps action legend Jackie Chan to go head-to-head with other beverages. The advertisements feature Jackie Chan swooping into everyday life scenarios using his amazing athletic abilities—and his energetic charm—to switch an unsuspecting person’s drink to a veggie-powered V8 beverage. The commercials underscore the switch by closing the spots with the iconic “Could’ve Had a V8” tagline. “It’s time for people to take another look at the V8 portfolio,” said Dale Clemiss, Vice President, V8 Beverages. “This year we’re introducing a variety of new and innovative products for V8, so there is no better time to encourage people to make the switch to our beverages. We believe this campaign’s refreshing, fun and lighthearted approach, and the charisma of Jackie Chan, will help drive awareness and energize the brand.” The campaign began airing in October with two new spots: “Balcony,” which features Chan sliding down a drain pipe, leaping onto a woman’s balcony, and deftly replacing her cranberry juice with V8 juice; and “Sidewalk,” where Chan jumps out of a window, bounces off an awning, lands in front of a woman drinking a smoothie and switches her drink for a V8 V-Fusion Smoothie that not

ular beverage experience—ultimately delivering the full flavor of original Dr Pepper with fewer calories. Six test markets got an early taste of Dr Pepper TEN in early 2011, complete with a full marketing campaign, including TV commercials, radio and out-of-home advertising and in-store displays—all featuring a bold, yet tongue-in-cheek, “It’s Not for Women” message. Results in the test markets far exceeded expectations, with Dr Pepper TEN representing nearly 6 percent of Dr Pepper sales throughout the test period in like packaging. With high consumer awareness, the product quickly grew to become a fan favorite, and now men nationwide will have the chance to experience the 10 bold calories of Dr Pepper TEN.

The national launch of Dr Pepper TEN is supported by an integrated marketing campaign, extending the “It’s Not for Women” theme through national television, print and online media. Consumers will also see a new, provocative social media campaign—including a bold Dr Pepper TEN Facebook application that only men can access. Dr Pepper TEN is just one of the many beverage innovations helping DPS meet its goal to focus at least 50 percent of the products in its development pipeline on health and wellness by 2015. This includes reduced-calorie products, smaller portion sizes and improved nutritional offerings. For more information, please visit Dr Pepper.com or Facebook.com/DrPepper. ■

Wines That Rock Releases Grateful Dead Red Blend Expanding Its Iconic Rock-Themed Varietals

Wines That Rock, innovators of rockinspired wines, has launched the Grateful Dead “Steal Your Face Red Blend” to join the brand’s four established rock-n-roll varietals: Rolling Stones “Forty Licks Merlot,” “Woodstock Chardonnay,” The Police “Synchronicity Red Blend” and 4

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Pink Floyd’s “The Dark Side of the Moon Cabernet Sauvignon.” Wines That Rock began releasing the labels in 2009 and a portion of the proceeds from every bottle sold are donated to the T.J. Martell Foundation. Grateful Dead Productions and

November/December 2011

Rhino Entertainment have partnered with Wines That Rock to create the “Steal Your Face Red Blend. “Wines That Rock is a partnership between legendary rock business managers RZO and award-winning winemakers Mendocino Wine Co., Continued on Page 6

only includes fruit but vegetable nutrition. These commercials will be followed by three additional spots. The entire campaign is supported by a fullyintegrated marketing effort including print and online advertisements that compare V8 beverages to other drink options. “Jackie Chan’s amazing creative talent combined with his mindboggling physical comedy give this campaign vitality and instant likeability,” said James Caporimo, Creative Director, Y&R. “Only Jackie Chan could suddenly switch your drink and have you love him for it, which is one of the reasons we believe this campaign will resonate with people and encourage them to choose V8 beverages instead of other drinks.” The campaign was created by Y&R New York. The production was shot on location in Los Angeles by MJZ and directed by Craig Gillespie, who is best known for directing “Lars and the Real Girl” and the “Fright Night” remake. Media planning services were provided by the New York office of The Media Edge: cia. For more information on V8 beverages, visit www.v8juice.com. ■

ConvenienceRETAILER Lee M. Oser CEO and Editor-in-Chief Steve Cox Lyle Sapp Kate Seymour Senior Associate Publishers Kim Forrester Associate Publisher Rhonda Baker Paul Harris James Martin Bill Morris Deborah Yarbrough Account Managers Lorrie Baumann Editorial Director A.J. Flick Editor Rocelle Aragon Lorrie Brownstone Associate Editors Valerie Wilson Art Director Kelly Hess Graphic Designer Selene Pinuelas Traffic Manager Enrico Cecchi European Sales Convenience Retailer is published by Oser Communications Group ©2011. BPA Worldwide Member since June 22, 2009. All rights reserved. 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.



sure bets Hunt Brothers Pizza Launches Philly Cheesesteak Pizza

Limited-Time Offer Pizza Available Now In Participating C-Stores

Hunt Brothers Pizza is offering, for a limited time, Philly Cheesesteak Pizza, which fea-

Grateful Dead Continued from Page 4

to capture the quality and spirit of rock-nroll mythology in its portfolio of great tasting wines, iconic album art for labels, earth-friendly production and great consumer value. Wines That Rock are crafted from the hands and vision of Mendocino Wine Co. winemaker Mark Beaman, whose talent and passions are quality, sustainability and pure rock-n-roll. The process for making “Steal Your Face” began by listening and discovering the vibe and intricacies of the band during their legendary multinight performance at San Francisco’s Winterland Ballroom in 1974. “To capture the essence of the live energy for Grateful Dead’s ‘Steal Your Face,’ we chose to meld several varietals into one,” said Beaman. “Just as the band members would segue through various musical styles, this wine’s far reaching fla-

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tures creamy white cheddar cheese sauce, tender slices of beef steak, green peppers, onions and mozzarella cheese—all on Hunt Brothers Pizza’s famous original crust. It’s the great taste of Philly’s classic sandwich transformed into a pizza that everyone will love. “Hunt Brothers Pizza is seeing a lot of demand for new combinations of flavors, so our Philly Cheesesteak Pizza really delivers

vors melt seamlessly from one to the next. In honor of the Grateful Dead’s famous improvisational concerts that have brought joy to so many, this wine celebrates diversity and freedom of experimentation.” Wines That Rock takes its respect for music very seriously, with founders that have been at the forefront of bringing rock-nroll to millions of fans for decades. Co-founders Ron Roy and Howard Jackowitz originally partnered with RZO and David Bowie in 1997 to create UltraStar Entertainment, the world’s largest online fan club company pioneering fan club ticketing and online artist communities. UltraStar’s clients range from the New York Yankees to AC/DC, Madonna and The Who. “As Wines That Rock continues to

November/December 2011

on giving consumers something new and interesting to try,” said Keith Solsvig, Vice President of Marketing for Hunt Brothers Pizza. “The Philly Cheesesteak Pizza did extremely well in our test markets, so we’re excited to roll this out to all of our consumers to enjoy for a limited time.” The Philly Cheesesteak Pizza will be available in stores through November. To

grow its portfolio of wellpriced, award-winning wines and expanding retail distribution throughout North America and Europe, we felt it was only appropriate to introduce a varietal that represents one of the most important moments in our music history and celebrate one of that era’s most influbands,” said ential Roy. “Grateful Dead encompass so much of what the ‘60s and ‘70s meant to our culture through music, and were truly the first band to establish a worldwide sense of community through their live shows—they were really all about the experience. With Grateful Dead, we have found the perfect partner.” “We love the idea of using the Grateful Dead’s music to guide the winemaking process,” said Mark Pinkus, GM of Grateful Dead Properties at Rhino

meet growing demand for more unique pizza flavors, Hunt Brothers Pizza plans to develop more limited-time offer pizzas. With more than 6,000 locations in 28 states, Hunt Brothers Pizza is the nation’s largest brand of made-to-order pizza in the convenience store industry. Perfect for today’s on-the-go lifestyle, Hunt Brothers Pizza offers regular, thin crust, and breakContinued on Page 12

Entertainment. “Wines That Rock’s passion for the band really shows in how hard they worked to reflect the mood and essence of the recordings.” The Grateful Dead “Steal Your Face Red Blend” made its official public debut Oct. 6 and is available for order at www.winesthatrock.com and at more than 1,500 retail locations worldwide. Available directly from its website, Wines That Rock offers variety packs of all current varietals and a collectors T-Shirt ($69), as well as three-bottle packs ($49). Wines That Rock will offer the Grateful Dead “Steal Your Face Red Blend” in three, six and 12-bottle packs at around $16.99 per bottle. Individual bottles are competitively priced at your local retailer. For more information, please visit www.winesthatrock.com. For more information on consumer products and brand licensing opportunities with Grateful Dead Properties, contact Sara Nemerov at sara.nemerov@wmg.com. ■



features Metro E-Cigarettes: Quality, Value Far Above Competition

“Our mission is to provide the best, most cost-effective alternative smoking experience on the market. Our staff works continually to provide our customers with the highest quality products available at a price below our competitors: Nicotek® With hundreds of electronic cigarette, or e-cig, companies out there on the market today, it’s hard to determine which one provides the highest quality and best value for the customer. Many distributors and retailers, still feeling the effects of the recession, are forced to make a decision based on

sheer value and profitability when bringing in a new product or a competing product. In any economy, this is definitely a smart decision, but is becoming more of a trend in today’s economy. That is why Nicotek felt it was very important to bring an e-cig to the market that provided the customer with a price point that was affordable and a product that was profitable. Introducing their solution: Metro® Electronic Cigarettes. Metro has been on the market since January and has quickly developed a supe-

rior reputation because of its affordable price and exceptional quality. While every ecig company offers a starter kit, Metro stands above the rest with a starter kit much more affordable than even the leading competition. But quality is not compromised with the affordability. Metro prides itself in being the only competitor that offers a hard-covered tin carrying case in their starter kit, while still keeping the MSRP at $19.99. Now that is a value you can be proud to display in your store. Any leading competitor that offers starter kits below the $20 price point will

typically only include a flimsy paper box―not very reusable at all―while other competitors charge upwards of $100 for their lowest-priced kit! Nicotek’s trademarked motto is Electronic Cigarettes Done Right, and with a price like that, one can definitely agree that they have done it right. Nicotek has successfully created a product that is visually appealing, of the highest quality and affordable for everyone in today’s market. Metro also offers one of the most affordable deluxe kits on the market, while including everything a consumer might be looking for to begin their alternative smoking experience. With two rechargeable batteries, 10 cartridges, home, car and USB chargers and their stylish tin case, Metro has truly designed a package that really gets the consumer started off right―all starting at only $74.99. The leading competitor’s comparable packages are upwards of $130. Nicotek is rapidly growing in popularity around the nation and excited to include you in this expansion. They invite distributors and retailers attending the show to stop by their booth to learn more about their impressive products and services. For more information about Nicotek’s products and services, visit their website at www.nicotekecigs.com. ■

TPE 2012: Two Full Days of Buying & Networking

The Tobacco Plus Expo International, the most comprehensive tobacco show in the U.S., will be held Feb. 1-2 at the Las Vegas Convention Center. The not-to-bemissed event promises to be the year’s best opportunity for retailers, manufacturers, distributors and wholesalers to see new products, share insights, do business and learn about industry news and trends.

The Expo will feature more than 100,000 square feet of exhibits and networking areas that showcase tobacco products and accessories. Increased numbers of international exhibitors and buyers are expected to participate. With over 90 percent or more of those exhibitors offering show deals exclusively to TPE attendees, the show is a must-see industry event. For the fourth year running, TPE 2012 will host the Cigar Bar & Lounge, a comfortable retreat where visitors can gather for informal meetings or to simply enjoy a complimentary beer, wine or soft drink. Registrants will also have an opportunity to attend two informative educational seminars on Feb. 1. Seth Mailhot, Special Counsel in the food and drug law group Sheppard Mullin Continued on Page 11

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November/December 2011



features through something as simple as a T-shirt.

POWER PROFILE

Kerruso Tailors Christian-Themed Product Rotating Floor Displays for C-Stores Vic Kennett, Founder and CEO of Berryville, Ark.-based Kerruso, discusses how his company grew from a humble T-shirt business in his home to selling Christianthemed products worldwide.

CR: Tell our readers a little about your company. What’s your main line of business?

VK: Kerusso specializes in inspirational Christian-themed apparel, jewelry, gifts and accessories. It began as a simple operation in the upstairs room of my home in 1987, printing Christian T-shirts with a dream of seeing them used to share the Gospel. What started with me driving a few Tshirt designs to local stores has expanded

into a diverse product line available in 100 countries. To date, we have produced more than 13 million T-shirts. CR: What would you say makes your company unique?

VK: “Proclaiming the Good News to the world through products about Jesus,” is not just our mission statement, but our entire purpose. Our team here at Kerusso puts forth an effort to create a cutting-edge line of products to grasp peoples’ attention long enough to read the message each product portrays. According to Newsweek, 8 out of 10 people in the U.S. say they are Christian. We help them share their faith

POWER PROFILE

TerraCair Vital to 80% of Diesel Trucks on the Road

John Lounsbury, Director of Marketing for Terra Environmental Technologies, recently spoke to Convenience Retailer about key reasons why convenience stores should carry TerraCair® Ultrapure Diesel Exhaust Fluid. CR: Why is it necessary to have Diesel Exhaust Fluid (DEF)?

JL: As of Jan. 1, 2010, the Environmental Protection Agency has mandated a strict

Mars Brands, NFL Root for Sweet Success in Super Bowl Contest

Consumers and retailers will score big this season when Mars Brands and the NFL team-up for the 2012 Super Bowl sweepstakes and instant-win game “Celebrate on the Field.” Consumers will have the chance to win one of 5,000 instant-win prizes a day from Dec. 19 to Feb. 5. When consumers purchase participating Snickers, M&M’s, Twix, 3 Musketeers and Milky Way brand singles and sharing sizes, they have the chance to win one of 5,000 instant-win prizes a day including coupons redeemable for Mars Brand items, NFL and Visa gift cards, Snickers brand/NFL tailgate coolers and more. By entering the sweepstakes at www.BeOnTheField.com, participants also are eligible for the grand prize: a VIP trip for four to Super Bowl XLVII in New Orleans in 2013 to “Celebrate on the Field” with the winning team. Complementing the sweepstakes offer on immediate consumption items, and mak10

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emissions standard for NOx gas. NOx is oxides of nitrogen, which contribute to acid rain, smog and respiratory issues. Most new diesel engines will power down without DEF.

CR: What is the benefit for a convenience store to carry TerraCair?

JL: TerraCair is dosed at 2 percent to 4 percent of diesel fuel. Eighty percent of diesel ing it easier to tackle the spread at Super Bowl viewing parties, a future consumption element provides consumers with 10 percent more product free with bonus bags from Snickers, M&M’s, Twix, Minis Mix and Dove Chocolate. Highlights of the marketing campaign include a heavy media investment, plus eye-catching in-store displays with bold graphics and coupon tear pads will stimulate retail purchases. Other upcoming promotions include: • In January, Mars will showcase a “Take Your Peanut Butter Pick” cross-brand event featuring flavors from M&M’s, Snickers and Twix brands. The Mixed Singles Shipper and Mixed Singles Counter Unit will encourage consumers to taste a variety of Mars brands. • Mars Chocolate North America is shifting its NASCAR sponsorship into high gear with a full year of M&M’s Makes Race Day More Fun, giving M&M’s Brand fans numerous opportunities to connect with the brand from January to November. The sweepstakes promotion “When We Win, You Win!” engages NASCAR fans by linking the victorious performance of the

November/December 2011

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CR: Do you have a program specifically for convenience stores? VK: We do—it’s called the Tru Witness program. It features a rotating floor display stocked with 10 T-shirt designs and eight jewelry panels. It’s a risk-free program, 100 percent guaranteed, and comes with free in-store merchandising, free inventory service and the free display. CR: What is the nature of your sales and distribution?

VK: We sell and distribute in multiple ways: directly, through distributors and through brokers. CR: Please assess the marketplace as it relates to your product line.

VK: Eight out of 10 of the customers that walk into any convenience store consider themselves Christian. We help stores cap-

trucks on the road will require this fluid.

CR: How can convenience store retailers protect the customer’s vehicle by selling the right DEF?

JL: TerraCair DEF is the only brand with a dispensing nozzle built it into the side of every bottle. The customer’s vehicle will be protected because they will use the supplied nozzle and not an oil-contaminated filter, which will harm their truck. CR: Convenience store retailers want to make sure their customers keep purchasing their DEF from them. How does TerraCair help them enhance their experience with this new technology?

italize on this demographic by providing a product that reaches out to these existing customers. We continually update designs to keep the products fresh and give repeat customers something new on a regular basis.

CR: To what do you attribute your company’s success?

VK: I had a dream to glorify God with whatever I did. Almost 25 years ago, the Lord revealed his purpose for me and I began printing Christian T-shirts. Philippians 1:6 states that he who has begun a good work in you will complete it. Kerusso is blessed because its mission serves to glorify God’s name. And we know that all things work together for good to those who love God, to those who are the called according to His purpose. (Romans 8:28) For more information on Kerusso and its products, please visit www.kerusso.com or call (870) 423-6242. ■

JL: TerraCair’s vented 2.5 gallon bottle drains in less than 30 seconds. The customer’s experience with TerraCair will be enhanced because they can fill their DEF quickly and get back on the road. CR: How does TerraCair “make the grade” and who else uses this product?

JL: TerraCair is API certified and is the No. 1 choice of leading diesel truck manufacturers. For more information about TerraCair, please visit Terra Environmental Technologies at www.terracairdef.com or call (866) 940-3003. ■

Americans Snacking More Than Ever, Updated Packaged Facts Report Shows Despite the lingering effects of global recession, American consumers are snacking more than ever, thanks to less frequent restaurant dining, frenzied lifestyles that encourage on-the-go eating and a growing tendency to replace meals with several smaller snacks. Additionally, marketers have responded to concerns about the growing impact of obesity on the health of the nation and have made great strides in developing healthier snack foods that still taste good. While value is still one of the primary drivers of snack purchases, the economy has recovered to an extent that consumers are once again making health, convenience and even indulgence top priorities as well. U.S. retail sales of packaged snacks rose to nearly $64 billion in 2010 and Packaged Facts projects sales to approach $77 billion by 2015, a total market increase of more than 20 percent. “Snack Foods in the U.S., 4th Edition,” a fully updated Packaged Facts report, examines the market for packaged

sweet and salty snacks within the context of broader food industry trends in new product development and marketing. To accommodate the complexities of the U.S. market within shifting socioeconomic contexts, the report investigates not only the sales data, new product introductions and market positioning strategies, but also the lifestyle patterns that contribute to the rise and fall of snacking trends. This completely revised edition provides an omnibus approach to the market, examining snacks via two broad classifications, sweet and salty/savory, while providing greater detail for dozens of categories and segments in which market activity dictates closer inspection. A new feature of this study is data from Packaged Facts’ new Food Shopper Insights Survey, conducted in March. Gauging the shopping patterns and attitudes of adults who have shopped for groceries within 24 hours of being Continued on Page 11


features POWER PROFILE

Creative Service Foodservice Equipment Line Continues to Grow for Durex Inc.

Robert Denholtz, CEO of Creative Serving Inc., discusses the expanding foodservice equipment line for Durex Inc. CR: How did you get into this business?

RD: Durex Inc., founded in 1946, manufactures point-of-purchase displays, store fixtures and other precision sheet metal assemblies for convenience stores and found it a good segue into foodservice equipment. I was looking to develop our own product line. In 1981, we started a consumer kitchen appliance company, and from there it was an easy transition into foodservice equipment. While the consumer electrics business was recently sold, we continue to grow and develop our foodservice equipment line known as Creative Serving.

RD: Our line of energy-saving roller grills achieve consistent cooking temperatures and require less amperage than any other grill on the market today. In addition to saving energy, our roller grills feature Ruff Rider coating, which will prevent any type of food product from stalling on the grill. Another example is our new Double Decker, which allows retailers to “stack” two unlike products in one footprint. Finally,

our Dog House, which stacks under our roller grill and takes the place of two additional grills for the equivalent of three roller grills in one footprint. CR: What new products can we expect to see from Creative Serving in 2012?

RD: We will launch a heated version of our very popular Cookie Monster bakery display case. Also, we will unveil a revolutionary new sandwich bar concept in conjunction with a major provider of quality foods. For more information, please visit www.durexinc.com. ■

Americans Snacking Continued from Page 10

surveyed, these data paint a detailed picture of U.S. snack trends by broader consumer health goals and nutrition concerns, ingredient concerns such as lowsugar and gluten-free, purchase motivators such as “family favorite” and “product looked appertizing,” snack occasions and timing (e.g., “between meals,” weekday vs., weekend, at home vs. away from home), brand loyalty by product type, store-brand appeal, and coupon usage. For more information or to buy the report, please visit www.reportlinker.com. ■

CR: What separates you from your competition?

RD: Our greatest strength is our flexibility and willingness to build quality, innovative products to meet the demands of our customers.

CR: What are some of these product innovations?

TPE 2012 Continued from Page 8

Richter & Hampton, will present “A Lot of Smoke But Is There Really a Fire? FDA’s Enforcement of Tobacco.” Mailhot’s session will be followed by a Premium Cigar Panel that will share insights and knowledge of the premium cigar business. This session will be moderated by Cigar Rights of America’s Glynn Loope. The opening day of the show will culminate with a Super Bowl-themed Opening Night Reception in Ballroom A at the Las Vegas Hilton Hotel. This ticketsonly event will be a huge tailgate party featuring a festive rock-n-roll band as well as giveaways, games, drinks and food. All of this excitement takes place against the vibrant backdrop of Las Vegas, where you’ll find plenty to enjoy during your downtime—from exploring its world-famous casinos and restaurants to enjoying spectacular shows. The Las Vegas Hilton is the headquarters hotel of TPE International. The Flamingo Hotel also offers a room block at discounted rates to exhibitors and show attendees. For reservations, please contact VIP Meetings at (800) 926-3976 or (310) 459-0060. Don’t miss this opportunity to learn about and experience innovative tobacco products and accessories and to explore ways to grow your business in 2012 and beyond. Visit www.tobaccoplusexpo .com to get up-to-date information along with the current list of exhibitors. On-line registration will be open in November. ■

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features THIS ISSUE’S FOCUS: I-9 Compliance ICE CRACKDOWN / CONTINUED FROM PAGE 1

for the people they hire, but also for the internal systems they choose to utilize to manage their employment process and those systems must result in effective compliance,” said Brian M. Moskowitz, Special Agent in Charge of ICE HSI for Ohio and Michigan in an ICE press release. “This settlement should serve as a warning to other companies that may not yet take the employment verification process seriously or provide it the attention it warrants.” “Up until about three years ago, compliance with the federal government primarily focused on employees, illegal immigrants,” said Blake Helppie, Chief Executive Officer of the Bloomberg Hills, Mich.-based JobApp Network, Inc. “There were a lot of brazen raids that went on with ICE going into meat-packing facilities and restaurants to arrest any individuals working there without the proper authorization.” Sometimes, fines were assessed on the employers, but the focus still was on rounding up illegal immigrants. “Starting with the Obama administration, ICE changed in orientation from the employee to going after the employer,” Helppie said. “Since then, ICE has been going in and auditing employers’ I-9 forms.” “Over the last couple of years,” said John Fay, Vice President of Products and Services and General Counsel at the Phoenix-based LawLogix, “ICE has audited more than 6,000 employers with $76 million in financial sanctions. “The I-9 used to be something that someone would just stick in their desk drawer, but now, it’s super important,” Fay said. Complying with I-9 regulations is

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In addition, personal care and cleaning products, a fourth-measured industry, stabilized after a rare drop last year as companies seek the right combination of quality and value to suit customers aiming to stretch their dollars. Overall, consumers are upbeat about their favorite soft drink brands, as the ACSI score for the industry ticks up 1.2 percent to 85 (on a 0 to 100 scale) and ties electronics (televisions and disc players) as the highest scoring among 47 measured industries. “A wide variety of product offerings, product reliability, low unit price, and minimal buyer switching costs keep customers highly satisfied with their soft drinks,” said Claes Fornell, ACSU Founder and author of “The Satisfied Customer: Winners and Losers in the Battle for Buyer Preference.” “Add to this the fact that purchasing and consuming these products hardly requires any customer service assistance, and soft drinks come out on top.” The industry’s score is strengthened by small gains for the two cola giants— Coca-Cola and PepsiCo improve 1 percent each to share the lead at 85—as well 12

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especially important for retailers with high turnovers as well as high rehiring rates, which can compound one error into multiple fines, Fay noted. “The other thing we’ve seen recently is that Immigration and Customs Enforcement was first going after namebrand employers,” Fay said. But now that ICE has formed its Form I-9 Audit Fusion Centers, where forensic auditors examine I-9s with improved information-sharing technology, Fay predicted that employers with 1,000 or fewer employees will come under more scrutiny soon. It’s no surprise that companies including JobApp and LawLogix have stepped in to fill a void and help employers through the process. While the I-9 appears to be a simple, one-page form, it comes with almost 70 pages of federal regulations that employers must follow or face fines. And, as the federal goverment uses technology to nab offenders, these companies are using the same technology to prevent errors and instil organization where, in some cases, there was none to avoid or lessen fines. Pat Zik, HR Coordinator for Hudson, Wis.-based Erickson Oil Products, said automating the hiring process with JobApp’s hiring system has made her job easier. “We have 65 different stores in four different states and the managers aren’t all HR people,” Zik said. “Using an automated program does help them complete the information correctly, because they are not all experts at filling out the right forms or knowing what has to be done.” In the past, if a manager asked for an employee’s documentation, such as a as a big boost for the category of smaller brands (store brands plus labels such as Faygo and Shasta). Following last year’s 7 percent plunge to 79, customer satisfaction with smaller brands bubbles up 5 percent to 83. For Dr Pepper Snapple Group, the opposite occurs—its score sinks to 82, down 4 percent from an industry-leading 85 in 2010. ACSI results show that customers are becoming more sensitive to price at a time when the company has raised prices. Customer satisfaction with breweries is stable at 82 for a second year. This is lower than soft drinks, but stays at a very high level. Two years ago, the industry hit a high point of 84, but a sizeable downturn for market-share leader Anheuser-Busch InBev dampened customer satisfaction overall in 2010. This year, Miller grabs the lead at 84 (plus 1 percent), edging out the aggregate of all smaller brands (Corona, Heineken, Samuel Adams and assorted microbrewery labels) at 83 (unchanged). A-B holds almost steady (minus 1 percent to 81), but anchors the low end along with Molson Coors (unchanged). Customer satisfaction with tobacco products picks up for a second consecutive year, rising 2.6 percent to an ACSI score of 78. This year’s increase com-

November/December 2011

driver’s licence, and put the wrong proper expiration date in or wrong birthdate, the form would bounce back and forth between the store and Erickson’s payroll coordinator until it was corrected. Now, JobApp’s automated system won’t let the form leave the manager’s office until it has been filled out correctly, Zik said. “It really has helped the payroll coordinator, who’s much happier with forms completed correctly the first time,” Zik said. “People get their paycheck on time, we get the information done right a lot more quickly and if there’s an audit, I’m sure we will pass it.” “We also help companies address the paper skeletons in their closet,” Helppie said. JobApp’s Retro 9 converts historic I-9 forms to digital form and audits them for compliance. If an error is found, Helppie said, managers can address it—not erasing the error, but explaining it or if the employee is still with the company, correcting it— so if there is an ICE audit, damage can be minimized. “When there is an ICE audit, a retailer has three days to produce all I-9 forms for all current employees—plus three years’ backlog,” Helppie said. “That’s an incredible challenge even for the most organized retailers.” Digitizing I-9s also can be a safety net as identify theft increases, said LawLogix’s Fay. “Rather than having all this paper sitting around, getting lost and not managed properly, why not get it all in one system that’s controlled and protected?” Fay said. “Even though the I-9 itself is one page, it’s identity thieves’ most favored form. Think pletes the cigarette industry’s recovery from a sharp downturn in customer satisfaction reported two years ago by the ACSI, when new tobacco taxes drove up retail prices. “The quality of tobacco products has never been much of an issue for smokers,” comments Fornell. “Their satisfaction, instead, is highly tuned to changes in price, which is why the industry’s ACSI score is the weakest among nondurables.” Both major U.S. tobacco players reap customer satisfaction rewards from their ongoing emphasis on price promotions. Philip Morris emerges as the industry leader, up 4 percent to an ACSI score of 80—the company’s best in 16 years. Reynolds American makes progress as well, up 3 percent to 77, but lags significantly behind Philip Morris. The ACSI measures a wide array of products for personal use in the home— from shampoo, soap and toothpaste to detergents and cleaning products. A year after declining for the first time since 2004, the industry’s score holds steady at 83. Former customer satisfaction stalwart, Clorox, is back on top in 2011, regaining the lead in the personal care and cleaning products category at the superior level of 88 (plus 2 percent). Trailing behind leader

about it: It’s got your name, date of birth, Social Security, driver’s license—all of the sensitive information you don’t want other people to have. And many companies don’t realize they’ve got these sitting around in unlocked cabinets.” LawLogix’s paper-to-digital migration system, Guardian, has built-in controls that marks who’s seen the form and what changes have been made. Once the information is verified, the originals can be shredded, Fay said. “Most clients wind up doing that once they move forward into electronic forms,” Fay said. Most systems, including LawLogix and JobApp, also have checks in place that protect the employer from going too far into documenting an employee’s work status—something that ICE could consider as discrimination. “Oftentimes, an employer is put between a rock and hard place,” Fay said. “What you have is the I-9 and 70 pages of rules that are hard to follow. You have antidiscrimination concerns. You cannot discriminate based upon citizenship status or natural origin and an employer can go too far sometimes. Someone can be a legal permanent resident with a green card and the employer says, ‘I want you to show me three forms of identification,’ when the I-9 calls for two. The Justice Department can come after you for that.” “There are a total of 185 potential errors on the I-9 form,” Helppie noted. “With electronic checks of I-9s, it’s almost impossible to complete them incorrectly,” Helpie added. “We can do a lot of very cool things with all of the advances in web-based technology.” ■ Clorox, Colgate-Palmolive (minus 1 percent), Dial (plus 1 percent) and the aggregate of all smaller manufacturers (plus 2 percent) are all tied at 84. ■

Hunt Brothers Pizza Continued from Page 6

fast pizzas with All Toppings No Extra Charge, plus the Hunt Brothers Wings in Southern Style and Hot ‘n Spicy flavors. Family owned and operated for over 40 years and headquartered in Nashville, Tenn., the company provides all of the food products, marketing programs, equipment and training for convenience stores to operate their own turnkey pizza program. For more information, please visit www.huntbrotherspizza.com. ■

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M&M’s Racing Team with chances to win great prizes, including new cars and instantwin prizes, from January to November. Marathon brand will be the Official Energy Bar for the 2012 Rock ‘n’ Roll Marathon Race Series, gaining brand exposure at 25 race events, reaching more than 2 million consumers. ■





NACS coverage Post Guard Helps Cover Up Those Unsightly Bollards Photoshopped Print Draws Attention to Products at Company’s First NACS Show

Customers may not know what a “bollard” is by name, but chances are, they have (or nearly have) run into one of them—and that’s not good for convenience stores. So, what a great idea to cover up those ugly, short veritical posts used at convenience stores, gas stations and other locations with car and truck traffic and prevent vehicles from bumping into property. The idea is the brainchild of Bruce Liebowitz, whose Post Guard products brighten traffic posts with good-looking, protective sleeves. Its high density polyethylene (HDPE) post covers fit easily and securely over existing posts to improve property appearance, visibility and safety. While bollards direct traffic and protect areas from vehicle damage, bollard posts must be repainted frequently. Bollard covers slip over steel pipes, steel poles and cement bollards to improve appearance and eliminate repainting and maintenance costs. “We launched Post Guard bollard covers in 2002 to be the most attractive and well-priced product in the market.

Here in Motown (Detroit), we know a few things about cars and trucks and extreme weather conditions, so our product is very durable, too,” Liebowitz said. Post Guard covers eliminate the need for scraping and painting every six to 12 months. The covers fit easily and securely over bollards and posts and are available in many fade-resistant colors in combination with highly reflective striping. The colorful bollard covers also help food sales since customers like cleanlooking stores. It wasn’t surprising that Liebowitz founded the company. In fact, he wasn’t surprised at all. Liebowitz’s father, Izzy Liebowitz, opened his first gas station in 1947 in Detroit’s busiest thoroughfare. Over the next 44 years, he would successfully own six more stations around Detroit and the suburbs until he retired in 1991 and sold his last station. Several years later, his youngest son, Bruce, who spent his boyhood working at his father’s business, found a photograph of his dad standing at the pump in 1948.

Mobile Wallet Payments at Gas Pump Brings New Opportunities for Convenience Retailers

Gilbarco Veeder-Root’s Encore fuel dispenser line now features mobile wallet payments, which was demonstrated at this year’s National Association of Convenience Stores Show. The company’s new technology is based on Near Field Communications (NFC) standards. Mobile payments are expected to significantly alter the payment landscape in the U.S. Customers will experience unparalleled convenience by accessing their credit, debit

and loyalty cards through mobile phone applications. Retailers will be able to provide further value to consumers and drive customer loyalty and sales with enhanced loyalty programs, couponing and targeted promotions and offers. “Convenience stores and gas stations represent a large market,” said Jaymee Johnson, head of marketing at Isis. “Isis and NFC will unlock new levels of functionality to help retailers improve their businesses and

Tea, Everyone? C-Store Customers Crave It, Market Research Says

Convenience store customers continue to thirst for ready-to-drink tea, according to a new market research report by Reportlinker.com, “Tea and Ready-toDrink Tea in the U.S.” Tea continues to be a star in the U.S. beverage market. Bolstered by consumers’ thirst for tea’s variety of flavors and healthy qualities, tea has shown resilience in the economic downturn. The category has experienced solid growth in the last year, with double-digit gains from refrigerated tea. This report takes a comprehensive look at the retail market for packaged tea in the U.S., with reference to foodservice tea trends for additional perspective. The report examines the factors driving growth in the category. Readers will learn about critical merger and acquisition activity that is changing the distribution landscape for niche organic brands; the diverse range 16

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of tea offerings; teas’ functional benefits and the regulatory challenge in promoting them; the embrace of tea by fast food giants, coffeehouses, specialty retailers and tea rooms; trends in new product claims; purchasing patterns,demographics and psychographics of the tea consumer; and the new ways in which tea marketers are connecting with customers, including through social media and apps. This report examines the U.S. market for ready-to-drink (RTD) tea, leaf (bagged and loose) tea, refrigerated tea and instant tea. The report segments and quantifies the market by channel and product type, providing historical sales figures and projections through 2016. The report examines market drivers and trends, retail sales-tracking data from SymphonyIRI and SPINSscan, new product trends based on data from Datamonitor’s Product Launch Analytics, and national consumer survey

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The original photo had two ugly bollards in front of the pumps. “When I saw that picture, I knew I was destined to get into the bollard cover business!” he said. “Since this was our first year as an exhibitor at the NACS Show, I thought attendees would get a kick out of my connection to their business. So we magically added a couple of our Post Guard bollard covers to the old photo and we mailed it out to folks who pre-registered for the show,” he said. “People also smiled when they saw the enlarged photo at our display booth. Over the years, our product line expanded to include bollards, clearance bars, parking curbs speed bumps and rack and corner guards.” Post Guard customers are impressed by our quality products, price and dedication to personal service and customer satisfaction. It’s easy to see why Post Guard covers are an ideal solution at connect with consumers in new and exciting ways.” Convenience store revenues account for more than 4 percent of the country’s GDP, according to the NACS. “Google, Isis (a joint venture of Verizon, AT&T and T-Mobile), PayPal, VISA and others have announced plans to launch mobile wallet products,” said Richard Browne, Gilbarco Veeder-Root’s Vice President of Marketing for North America. “Adding the advantages of the mobile wallet to both the forecourt and in-store point of sale, positions convenience store retailers to enhance the consumer experience.” Gilbarco Veeder-Root is the worldwide

data from Experian Simmons data, as well as a proprietary consumer survey on beverage and tea trends conducted by Packaged Facts. The report thoroughly maps out the competitive situation at the marketer and brand levels, with detailed profiles of AriZona, Bigelow, Celestial Seasonings, Coca-Cola (Gold Peak, Honest Tea and Nestea), Lipton (from Unilever and the Pepsi Lipton Partnership), McDonald’s sweet tea, Nestea, Snapple, Starbuck’s Tazo, Teavana, Turkey Hill and others. Retail channels covered include supermarkets and grocery stores, convenience stores, supercenters/mass merchandisers, warehouse clubs, drugstores, gourmet/specialty food stores, supplement chains, direct-sales channels including catalogs and Internet, and alternative channels such as department stores, kitchenware stores and bookstores. Foodservice channels include restaurants, coffeehouses, tea rooms and tea retailers, cafés and bars and other foodservice establishments. To order the report, please visit www.reportlinker.com. ■

thousands of sites, Liebowitz said. Post Guard is the first product by Encore Commercial Products, Inc., based in metro Detroit. The company’s experience with cars and trucks and extreme weather conditions shaped its expertise with parking products. Ever since Encore was launched in 2002, its goal has been to create top quality items that are attractive, install easily and securely and pay for themselves with maintenance savings, Liebowitz said. After Post Guard, customers kept asking for more products, so Encore began developing and offering additional quality products including Height Guard Clearance Bars, Guard Pipe (steel bollards), bolt-down bollards, Media Bollard, Light Pole Guard, Gorilla Post, Park-It parking curb, Easy Rider Speed Bump and Safety Rider Mini Speed Hump. These protection products can be found around banks, fast food restaurants, schools, hospitals, airports, gas stations, self-storage facilities, shopping centers, car washes, parking garages and virtually every type of facility imaginable. Post Guard products are offered in every U.S. state plus Canada, Mexico and Puerto Rico. To learn more about Encore and its products, please visit www.postguard.com. ■ technology leader for retail and commercial fueling operations. We offer the broadest range of integrated solutions from the forecourt to the convenience store and head office. For almost 150 years, Gilbarco has earned the trust of its customers by providing long-term partnership, uncompromising support and proven reliability. In fact, we help manage the business and maximize the bottom lines for 19 of the top 20 convenience store operators in the U.S. Gilbarco Veeder-Root. Technology with a human touch. For more information, please visit www.gilbarco.com. ■

Sheetz Adds Blu E-Cigs One of the most-talked about products at the NACS show was blu’s e-cigarettes. Now, consumers can purchase their favorite blu products in more than 400 Sheetz convenience store locations throughout Pennsylvania, West Virginia, Maryland, Virginia, Ohio and North Carolina. Customers can choose from menthol and classic tobacco disposables, highstrength cartridges available in cherry, java, tobacco and menthol, and the product that started it all: the original blu Starter Kit, equipped with everything customers need for their first blu experience. On the heels of a successful retail store launch earlier this summer, e-cigarette company blu Cigs has expanded its in-store presence via a partnership with Sheetz. “I’m very excited to be involved with Continued on Page 18



NACS coverage NACS Trendspotters comments on what caught their eye: “I was surprised to see a lot of healthy food. I try not to eat junk―though I do fast food once in a while―and I found a lot of new stuff here.” “Make me smile.” “Five ingredients or less, and you’ll definitely get my attention.” “You want something that’s easy to eat.” “Our schedules are full, we don’t have time to work out and sometimes we skip breakfast.” “If you can throw it in your backpack, that helps.” Among the products that met the panel’s approval was Hot Can, a selfheating can that delivers hot soup or drinks in 30 seconds from opening―no water required. (They tried it onstage and gave it the thumbs-up.) Other favorites were coconut water in a variety of new flavors and shelfstable soft croissants―already baked so they could be eaten from the box. Technology and packaging were also differentiators. One panelist pointed out blu e-cigarettes, which makes a version that lights up in the proximity of another person using a blu. Instant social networking, no Internet required! On-pack QR codes linking to video content are another way to get a second glance from this audience, which

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constantly carries Smartphones when shopping and enjoys tweeting about their new discoveries. An audience member commented, “These must be the three healthiest teenagers in the world.” While they may not yet represent the mass market of candy-loving young adult convenience store customers, like true trendspotters, they show us where that mass is headed. Their wishes may yet come true. A surprising number of both premium and healthy food manufacturers were also at NACS, gauging interest for products not traditionally considered part of the convenience store assortment. Natural snackmaker KIND was promoting its gluten-free fruit and nut bars, which have an SRP of $1.99 compared to mass-market granola bar SRPs below $1. Cured meat producer Daniele exhibited picnic packs of premium deli meat, cheese and crackers, presumably aimed at the same customers driving the upward trend in convenience store wine sales. You come in for something for the kids, but maybe Mom, who’s trying to eat healthy, needs a snack too, said a company representative. ■

November/December 2011

ALSO CATCHING OUR EYE AT NACS: - s u sta in e d lines at the Coca-Cola Freestyle machines - ex c i tem e nt around both frozen drinks and bottled sodas from candymaker Jelly Belly - hea t and serve Chinese, Indian and Thai boxed meals, from Canadian company Olida - beverage innovation: retro-packaged and vitamin-enhanced sodas, cocktail mixes in soft pouches, coconut water and fruit burst drinks, oolong tea shots and a huge variety of iced teas and ready-to-dr ink iced coffee - Hot Hot Hotter, an extremely spicy candy f r o m H o t Ta m a l e s - nj o y ! oatmeal kits, a foodservice-friendly version of the individual oatmeal cup that is a strong seller at Starbucks a n d M c D o n a l d ’s . B u r g e r King and Chick-Fil-A have both introduced oatmeal w i t h i n t h e l a s t ye a r.

Sheetz Sheetz since we are both so passionate and dedicated to our brands. We complement each other well,” said Jason Healy, President of blu Cigs. “I’m particularly excited to offer the full line of blu products to Sheetz’s loyal customers, and pleased to drive even more traffic into their stores.” “We chose blu because we saw firsthand the clear difference in quality between their products and other ones in the e-cig market,” said Jerry Weger, director of core product sales for Sheetz. “As a familyowned business, we’re incredibly selective about the brands we choose. We went with blu because they’ve clearly captured consumers’ trust, so we feel confident we’re delivering a high quality product to our faithful customers.” Blu Cigs mimic the experience of smoking, without the tar, ash, smell or smoke—instead emitting a smoke-free “puff” that evaporates in seconds. In addition to blu’s original products, consumers can now purchase blu’s industry-leading Smart Pack exclusively online. The pack features a bevy of tech-savvy enhancements including a homing device to locate other blu users, automatic cartridge re-ordering and longer lasting battery life and flavor. For more information, please visit www.sheetz.com and www.blucigs.com. ■

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new products operations

Tully’s Coffee Selects NCR Point-of-Sale Technology

Research and Markets Offers Insights Into Convenience Retailing Changes

NCR Corporation has announced that Tully’s Coffee, a leading specialty coffee retailer, has selected the NCR RealPOS 70XRT point-of-sale (POS) workstations. This investment is part of Tully’s enterprise technology initiative to improve the checkout experience for customers and gain greater business insight into its store operations. NCR will also provide depot repair services for Tully’s through its services organization. Through this POS upgrade, Tully’s can decrease customer wait times through faster transaction speeds and an easy-touse touchscreen cashier interface. The POS workstations will integrate with Tully’s Microsoft Dynamics NAV ERP and LS Retail POSsoftware, providing the retailer greater insight into its day-to-day store operations. Tully’s chose NCR after a comprehensive competitive review, selecting the RealPOS 70XRT workstation due to its high serviceability, lower total-cost-of-

A new report, “Convenience Retailing 2011: Market Drivers, Challenges and Opportunities,” provides an overview of the opportunities and challenges offered by grocery convenience retailing. It evaluates how convenience stores perform in relation to competing channels and analyzes the key strategies of major global convenience store operators to maintain growth, covering their main format innovations and their expansion potential. It also gives insights into changes in the product assortment of convenience stores and how these impact product manufacturers. The “Convenience Retailing: Market Drivers, Challenges and Opportunities” report’s global briefing offers an insight into the size and shape of the retailing industry, highlights emerging trends, its effects on retailing in markets around the world, on the development of channels

New cashier workstations will help specialty coffee retailer enhance customer experience and improve operational efficiency ownership (TCO) and component-based design, which facilitates faster and simpler upgrades and service. “The high degree of reliability, performance and serviceability of the NCR workstation, combined with its depot maintenance offering, provided the best value for our investment,” said Tully’s Chief Financial Officer, Cathy Campbell. “This implementation is a key milestone in our ongoing technology initiative to enhance the experience for our customers and drive operational excellence.” “NCR looks forward to helping Tully’s advance its business goals through the superior value, innovative componentbased design and lower total cost of ownership of our solution,” added Bill Campbell, vice president, Retail and Hospitality, NCR. “We are delighted to be part of Tully’s initiative to drive a superior customer experience.” Suited for both front-counter and drive-thru service, the NCR RealPOS

70XRT reduces energy costs up to 50 percent over previous generation systems, thanks to energy efficient Intel processors and a high-efficiency power supply. The workstation includes a reliable and bright touchscreen interface with full-tilt capability to enhance cashier ease of use. An integrated biometric fingerprint reader is available for secure and fast cashier login, manager overrides and other POS applications. NCR offers comprehensive depot services including standard return and repair as well as advanced exchange. This provides a flexible and cost effective maintenance alternative to on-site maintenance and offers a single point of accountability for repair, shipment and inventory management. For more information, please visit www.ncr.com, follow on Twitter at @NCRCorporation, log on to Facebook at www.facebook.com/ncrcorp, LinkedIn at http://linkd.in/ncrgroup or YouTube at www.youtube.com/user/ncrcorporation. ■

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operations MoneyGram International, Cumberland Farms to Launch MoneyGram Xpress In-lane Money Transfer Service

MoneyGram International has signed an agreement with Massachusetts-based Cumberland Farms to launch the first locations of the MoneyGram Xpress service. This new in-lane money transfer service allows consumers to buy pre-packaged money transfers in $50, $100 and $200 denominations and redeem them online or by telephone to complete the transaction. Cumberland Farms has almost 600 convenience stores in 11 states throughout New England, the Northeast and Florida. “Cumberland Farms’ focus on convenience and giving great customer service mirrors the values of MoneyGram,” said Stu Kiefer, MoneyGram Vice President of Product Management. “The company’s 50-year history of providing its customers with quality products and services and its network of stores makes Cumberland Farms a perfect venue for our MoneyGram Xpress service.” Bob Skiba, InComm Executive Vice President, said the new MoneyGram Xpress prepaid money transfers allow consumers to pay for the transfer amount and fees at the same time as they make other retail purchases, and then actually make the transfer when convenient for them—online or by phone. Consumers using the service can send money to any MoneyGram agent location around the world. “MoneyGram Xpress broadens ways to access money transfer services, and—for many consumers—assists with time and money management,” Skiba said. Cumberland Farms Category Manager Mike Esposito said, “As the newest agent for MoneyGram, we look forward to marketing this safe, efficient, and cost-effective money transfer service to our loyal base of customers. We fully expect this innovative MoneyGram Xpress service to appeal to our customers throughout the regions where we operate.” Cumberland Farms is the first national in-lane prepaid money transfers rollout with MoneyGram and its processing partner, Ceridian Stored Value Solutions. The MoneyGram and SVS arrangement gives MoneyGram core processing capabilities in more than 40 countries, including Canada, Hong Kong, Russia, the United Kingdom, the United States and countries in the European Union. ■ 22

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DaniMer Scientific Aids Petroleum and Oil Field Industry in Pursuit of Environmental Preservation Environmentally friendly corporation uses biopolymers to aid oil services

DaniMer Scientific, best known internationally for biopolymers in the plastics and resins industry, has moved into the oil field services sector through the development of a series of new biodegradable polymers that can be used in the oil and gas extraction process. DaniMer’s knowledge and expertise in the biopolymer field has made the firm a sought-after manufacturer of innovative, renewablebased polymers that are designed to create value from their ability to degrade naturally. production of a DaniMer’s biodegradable coating to shield a sand control screen is being used to preserve

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lion or 43.2 percent of shrink. Dishonest employees were responsible for $41.65 billion or 35 percent of shrink. Employee theft in North America surpassed shoplifting and was responsible for 44.1 percent of shrink. The average amount admitted stolen by employees was more than eight times the average stolen by shoplifters. “Although there are commentators who view retail crime as a harmless or intriguing social phenomenon or simply as a cost of doing business, this ignores the impact of criminal gangs, growing levels of violence against employees and customers, and the links between retail crime and drugs, fraud and extortion,” said Prof. Joshua Bamfield, Director of the Centre for Retail Research and author of the study. “Moreover, retail crime on average cost families in the 43 countries surveyed an extra $200 on their shopping bill, up from $186 last year. “The 2011 study also found that while retailers increased their spending on loss prevention and security by 5.6 percent over 2010 to $28.3 billion globally, loss prevention equipment’s share of total loss prevention expenditures actually declined slightly. This may be why fewer thieves were apprehended globally,” he said. “Of the top 50 global retailers who responded to the survey, the ones which reported a decline in shrink from the previous year did not construe loss prevention merely as a matter of theft, but worked

the screen’s ability to function as designed after it is inserted into an oil well. The natural coating fully covers and protects the screen while it is positioned in the well and then dissolves naturally as it is exposed to the elevated temperature and wet environment inside the well. The biodegradable coating’s dissolving effect leaves the filter clear and undamaged for the purpose of separating sand from oil. “The opportunity to aid the oil field industry with the creation of a biopolymer sand control screen coating has been inventive and worthwhile. We are enthusiastic about the prospect of expanding the markets we serve in our mission to supacross their operations to systematically combat shoplifting, employee theft, vendor loss and administrative errors. Ninetysix percent of these retailers’ stores used audit programs to monitor the use of loss prevention policies and above all, the retailers increased their loss prevention spending almost twice as much as the global average,” Bamfield said. The countries suffering the highest rate of shrink included India (2.38 percent of retail sales), Russia (1.74 percent) and Morocco (1.72 percent). The lowest rates of shrink were found in Taiwan (0.91 percent), Hong Kong SAR (0.95 percent), and Japan and Austria (both 1.04 percent). The U.S. rate was 1.59 percent. Shrink varies according to business type, vertical market and country. In 2011, some of the highest average shrink rates were found in apparel/clothing and fashion/accessories (1.87 percent) followed by cosmetics/perfume/health & beauty/pharmacy (1.79 percent). Among the highest shrink items was cheese (3.09 percent). Shrink for health and beauty items such as mascara, eye liner and eye shadow increased globally by 30 percent to 2.14 percent and outerwear shrink increased by 15.3 percent to 2.94 percent. Meanwhile, footwear shrink increased by 1 percent to .99 percent globally. “As global economic growth stalled in the past year, retailers did not increase capital equipment expenditures at the same rate as the rest of their loss prevention expenditures,” said Farrokh Abadi, President Shrink Management Solutions, Checkpoint Systems. “The result, unfortunately, may be seen in higher shrink numbers. As illustrated by Professor

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and consumers’ shopping patterns. It identifies the leading companies and brands, offers strategic analysis of key factors influencing the market—be they the developments of new store types, the importance of non-store retailing, economic/lifestyle influences, private label or pricing issues. Forecasts illustrate how

November/December 2011

the market is set to change and criteria for success. The report gives a detailed picture of the retailing market; pinpoints growth sectors and identifies factors driving change; gives insight to understand the competitive environment, the market’s major players and leading brands; and uses five-year forecasts to assess how the

port renewable resources,” says Blake Lindsey, President of DaniMer Scientific. “This advancement has also led to our development of additional biodegradable products that can be used in shale and dense rock oil extraction methods.” DaniMer’s biodegradable product offers oil and gas production companies and companies who are involved in the oil and gas well service industry an opportunity to more efficiently extract oil and gas from the ground in a more cost efficient manner while at the same time, assisting the industry in their continuous pursuit of reducing environmental impact. ■

Bamfield, the retailers who most successfully combated shrink last year invested judiciously in comprehensive loss prevention solutions.” Loss prevention solution is such a hot topic that the Retail Industry Leaders Association (RILA) welcomed a select group of senior level asset protection executvies, product manufactorers and renouwned academic researchers to the 2011 Asset Protection Leaders Council (APLC) meeting in Minneapolis in October to launch the APLC processdriven shrink initiative. At the meeting, the Best Buy asset protection team led a walk through of a local store, highlighting Best Buys’ 360degree approach to loss prevention. The day’s events also included presentations by Target’s asset protection team that focused on the role of upstream partnerships and operational excellence in driving down shrink and Dr. Mark Barratt of Arizona State University’s W.P. Carey School of Business, who challenged the current views on shrinkage and the approach most companies adopt when trying to control Inventory Record Inaccuracy. RILA members also attended Target’s Investigations Center for RILA’s Crimes Against Business Committee meeting. Retailers slated to give presentations on a broad range of topics include CVS, Lowes, Publix, Target, The Home Depot and Walmart. Attendees also heard from a Florida prosecutor who has successfully prosecuted ORC cases using the RICO statute. For more information on Checkpoint services, visit www.checkpointsystems.com. ■

market is predicted to develop. Key topics include “Key Drivers of Convenience Retailing,” “How Do Convenience Stores Fare Against Other Channels?” and “Key Opportunities and Threats for Convenience Retailers.” For more information, please visit http://www.researchandmarkets.com/res earch/6b8802/convenience_retail. ■



buyers guide

BUYERS GUIDE PRODUCTS FROM THE NACS SHOW This listing is compiled from a survey of products conducted by Convenience Retailer.

CarChip Datalogger CarChip is a “mechanic in a chip” that plugs into (no tools required) any 1996 or later model vehicle sold in the U.S. CarChip is a datalogger, the size of a 9-volt battery that can record up to 300 hours of continuous driving data, track how the vehicle is performing and help owners diagnose on-the-road driving problems. Small business owners can use CarChip Fleet to track how their fleet of service vehicles is performing and being driven. CarChip can be used to reset the “check engine” light and will report the reason the light comes on through a trouble report using any standard PC. CarChip can be set using a computer to record up to 23 different engine parameters using the desktop software. CarChip costs $99. Davis Instruments 800-678-3669 www.davisnet.com

Crunchies Food Co., LLC

D & S Car Wash Equipment Co.’s IQ Soft-Touch Smarter. Cleaner. Greener. The new, intelligent “IQ” Soft-Touch by D&S Car Wash Equipment Co. is a state-of-the-art, in-bay automatic. The industry’s first 3D vehicle profiling software produces a smart, efficient, and safe wash. A 3D computer scan captures each vehicle’s unique shape while “mapping” details including luggage racks and spoilers. The result is a custom wash for every vehicle—Hummers and Duallys included! The Invisible Treadle™ vehicle positioning system and voice announcer work flawlessly together to enhance the total customer experience. The Invisible Treadle produces the clean, “open bay” look that many consumers prefer. The voice announcer gently guides customers in and out of the wash bay. The 3D scan, coupled with contouring logic, translates into optimum force on every surface. The top brush is 90 inches wide and has counter-rotating action to ensure top-of-vehicle coverage. When combined with brush counter-rotation and front and rear swapping side brushes, the IQ Soft-Touch produces a new standard of clean. The IQ Soft-Touch features Pro Gloss™ closedcell foam brushes. Pro Gloss brushes produce a consistent, yet gentle contact with the vehicle surface. The Tire Cannon™ is a powerful wheel and tire cleaner! The innovative, heavy-duty scissor extender finds the center of the wheel. The extender device allows for optimal high pressure force application and complete coverage. The IQ is a completely new design. It is not just an “improved” version of older technology. The IQ is built to be extremely efficient by optimizing pumps and motors in order to reduce power, water and chemical usage. Each and every movement is guided by VFD motor controllers. For noise reduction, inside the car and outside the bay, the IQ Soft-Touch is whisper quiet during a wash cycle. You simply have to hear it to believe it! Plug and play installation. Low costof-ownership. Smarter, cleaner, greener. D & S Car Wash Equipment Co. 800-844-3442 www.dscarwash.com

Crunchies Food Co., LLC, the leading producer of all-natural freeze-dried vegetable and fruit snacks, is announcing the new single-serving packaging for some of its most popular Crunchies® flavors. These individual-serving pouches of allnatural, freeze-dried fruit, otherwise known as the Munch Pak, are perfect for a snack on the go or to put right into a lunchbox as a healthy and tasty treat. They are available in six different flavors: Strawberry, Mixed Fruit, Mango, Pear, Cinnamon Apple and Pineapple. Nutritious and delicious replacements for highcalorie sweets or chips, Crunchies contain no fat, cholesterol, sodium or added sugars. The convenient single-serving size makes fitting in the recommended five servings of fruit and vegetables easy as crunch! Crunchies are made in the U.S. through a unique freeze-drying process in which individually frozen fruits are placed in a refrigerated vacuum chamber that removes up to 97 percent of the moisture. This special process gives Crunchies their crunchy texture and a great concentrated flavor that explodes in your mouth. This process also allows them to retain a high percentage of the nutritious enzymes that are invariably lost through traditional heat drying, making Crunchies both a tasty and wholesome snack. Crunchies 888-997-1866 www.crunchiesfood.com

Crunch Pak Disney Princess Foodles Amish Pie Co. Fry Pies Amish Fry Pies have all of the mouthwatering taste of an afterdinner pie condensed into a hand-held delicacy! These pastries are deep-fried and sealed with a dripping glaze that contains your preference of tasty filling: Blueberry, Peach, Cherry and Apple. The Amish Fry Pies are very popular at concession stand/sporting events, convenience stores and gourmet, specialty food markets. The convenience of a slice of fruit-filled pie, held in your hand, makes it the ultimate grab-and-go food, attractive to all of us living in this busy on-the-run lifestyle. Unlike some snack pies made with a fruit flavored filling, Amish Fry Pies are packed with only the best fruit; sweet pitted cherries swimming in a sweet glaze, apples that are firm and crisp, the enchantment of peach slices that pack a punch; and blueberries all but lost in the dark richness of their flavor packed filling. A bite of these irresistible pies can be like visiting a fresh farmers market in Holmes County’s Amish Country of Ohio. Made with only the finest, quality ingredients, the Amish Fry Pies are a family favorite; that take you back to a simpler time.

Crunch Pak, the industry leader in fresh sliced apples, introduced to the October NACS Show an addition to its Disneyinspired Foodles line with a Disney Princess edition featuring a carriage-shaped tray. The portable snack that is fit for a princess will feature packaging in the shape of a carriage and an assortment of nutritious snack food options including apples, grapes, cheese and pretzels that meet the USDA’s dietary guidelines for children and Disney’s commitment to nutritional standards for better-for-you products. Foodles launched in the grocery, mass and convenience store channels in 2011 with a Mickey Mouse-shaped tray; the addition of Disney Princess themed will grow incremental sales in the fresh cut fruit snack category. In addition to the carriageshaped tray, the Disney Princess-themed Foodles line by Crunch Pak will include favorite Disney Princess characters such as Ariel from “The Little Mermaid”; Aurora from “Sleeping Beauty”; Belle from “Beauty and the Beast”; and Tiana from “The Princess and the Frog.” Disney Princess-themed Foodles from Crunch Pak are available to retail customers nationwide.

Amish Pie Co. 866-919-5956 www.amishpie.com

Crunch Pak 509-782-7753 www.crunchpak.com

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buyers guide D&P Custom Lights & Wiring

Partners’ Get Movin’ Cookies, Crackers

For companies interested in energy savings and the environment, D&P Custom Lights & Wiring Systems offers cost-efficient LED-lit interior signage for convenience stores, grocery stores and other retail settings including mass merchandisers, discount stores, warehouse clubs and department stores. LED signs are available in various shapes, sizes, thicknesses, colors and configurations (including 3D) to suit any need, and are completely customizable for each client. Their long life, durability, high-efficiency and reduced maintenance needs make them a cost-effective choice, with energy savings of more than 80 percent easily attainable. Using the latest design hardware and software, D&P’s staff of graphic designers works with retail clients to achieve just the right customized design for LED signs as well as standard seasonal, holiday and directional signs. All signs, including LED and conventional back-lit self-contained signs, are delivered “ready-to-hang” with all necessary hardware included.

Get Movin’ cookies and crackers from Partners, a tasteful choice company, are perfect for healthy and delicious snacking on the go. Packed in colorful, single-serving bags and available in seven flavors, these snacks are all-natural, preservativefree and contain no hydrogenated oils or artificial flavors. For the sweet tooth, Get Movin’ cookies are available in three scrumptious flavors: cinnamon crisp, chocolate vanilla swirl and lightly lemon. Unlike most sugary treats, Get Movin’ cookies are light and crispy and satisfy the sweet craving without the excess calories. They are delicious alone, but also complement ice cream, sorbet, tea and coffee. For the customer looking for a wholesome treat, Get Movin’ crackers are available in four savory flavors: roasted garlic & rosemary, olive oil & sea salt, four cheese and honey wheat. With less than 90 calories per bag, these crackers are excellent alone or are a great accompaniment to spreads, meats and cheeses. Get Movin’ cookies are packed in 1-ounce bags with a suggested retail price of $0.99 cents per bag. Get Movin’ crackers are packed in 0.75-ounce bags with a suggested retail price of $0.89 per bag.

D&P Custom Lights & Wiring Systems, Inc. 800-251-2200 www.dandpcustomlights.com

Partners 800-632-7477 www.partnerscrackers.com

DeMet’s Candy Co.’s Flipz Lips love salty. Lips love sweet. Lips love the perfect saltysweet combination that fits any snack occasion. DeMet’s fresh bakes its own pretzels in an old-world brick oven and then smothers them in delicious milk chocolate, decadent white fudge, irresistible peanut butter and other favorite flavors. If you’re licking your lips right now, it’s because Lips Love Flipz! DeMet’s Candy Co. takes great pride in making Flipz candy-coated pretzels. Its fresh-baked brick-oven pretzels are crafted in the heart of Pennsylvania. Each golden pretzel is slow-baked to perfection and then enrobed in one a delicious coating. DeMet’s dedication to highquality ingredients and a traditional manufacturing process continues to make Flipz the No. 1 brand of chocolate covered pretzels. Enjoy all the fabulous Flipz flavors: Milk Chocolate, White Fudge, Dark Chocolate, Milk Chocolate Peanut Butter and Chocolate Swirl Yogurt. Now in the 2-ounce grab-and-go size introduced at the recent NACS Show. DeMet’s Candy Co. 203-329-4555 www.demetscandy.com

Just Born’s Mike and Ike RedRageous For the second year in a row, candy maker Just Born has won the non-chocolate candy category of Best New Products Award—this year for its new Mike and Ike RedRageous!—at the NACS Show (National Association of Convenience Stores) in Chicago. Mike and Ike Lemonade Blends won in 2010. RedRageous! is a sweet new collection of Mike and Ike reds exploding with chewy fruit flavors, which include cherry, watermelon, raspberry, strawberry and fruit punch. Mike and Ike Red Rageous! is packaged in a 6-ounce theater box, 2.12-ounce count goods bag, and .78-ounce changemaker box. Just Born, Inc. is a privately-owned company founded in 1923 and headquartered in Bethlehem, Pa., where it manufactures Peeps, Hot Tamales, Mike and Ike, Mike and Ike Zours and Teenee Beanee Brand Candies. All Just Born candies are made in the U.S. Just Born, Inc. 800-445-5787 www.mikeandike.com

Monster Fly Trap’s FliesBeGone traps

Power Crunch™ Protein Cookie Take award-winning taste, a crunchy texture and mix in high protein and low sugar and you have what industry buyers call the right recipe for success. Kevin Lawrence, CEO of Irvine, Calif.-based BNRG, will tell you his philosophy is much simpler: “The challenge today is to offer nutritional snack products that not only provide authentic and nutrition, but deliver a ‘knockout taste’ that has consumers second-guessing the nutritional validity. We hear this every day. Consumers continually comment to our sampling teams, ‘There is no way that Power Crunch™ is good for you.’ If you can deliver a ‘candylike taste’ with a solid nutritional profile, you can have a hit in the nutritional bar business.” With more than 2,000 bar SKUs now on the market, the category has naturally segmented into subcategories ranging from bars designed to fuel athletic performance to products for nutritious snacking. In 2003, nutrition bar category sales figures skyrocketed to approximately $600 million, making nutrition/energy bars the fastest-growing segment of the snack bar industry. Today, sales figures are approaching the $2 billion mark. BioNutritional Research Group, Inc. 714-427-6990 www.bnrg.com

Twang’s Caliente 86 Hot Lime Beer Salt Introducing Caliente 86: a premium hot lime beer salt from Twang. In celebration of Twang’s 25th anniversary, Caliente 86 is its boldest and most unique profile yet! Caliente 86 could drive impulse purchases and give your business the boost you’ve been looking for. With eye-catching packaging and innovative merchandising options, paired with the unique hot lime flavor that has just enough heat to make your beer scream and beg for more, you will see your profits heat up. Twang Partners, Ltd. 210-477-2392 www.twang.com

ZICO Premium Chocolate Coconut Water

Flies are dangerous. In addition to being carriers of filth, flies aid in the transmission of over 65 harmful human diseases, including typhoid fever, dysentery, anthrax and tuberculosis. Unfortunately, pesticides used to control fly populations can often be more dangerous than the insects themselves. Flies Be Gone, new to NACS this year, is more effective than pesticides in controlling fly populations in these areas, without the dangers that pesticides can pose, and at only a fraction of the cost. Flies Be Gone traps flies outdoors using a safe, bio-degradable biomass bait (exclusive to Flies Be Gone). The bait in each trap is effective for up to four weeks and can catch up to 20,000 flies, making it perfect for high-infestation areas. It is just as effective even for flies that have become pesticide resistant. Since they use natural biomass as a bait, Flies Be Gone traps are non-toxic and safe to use around humans and animals. They are completely self-sufficient, requiring no power source, and are disposable. Flies Be Gone has been a successful fly control method since 1981, and is used in 27 countries worldwide.

ZICO Pure Premium Coconut Water introduced its latest flavor addition and most innovative to date, ZICO Chocolate. The first and only chocolate coconut water on the market, ZICO Chocolate coconut water tastes amazing with only 110 calories per 14-ounce bottle and has more than 30 percent less sugar than fruit flavored coconut waters from other leading brands. As with all ZICO products, ZICO Chocolate is an ideal choice for athletes and health conscious consumers as it is loaded with electrolytes for superior hydration and replenishment. According to BevNet, ZICO Chocolate has a very “addictive flavor” and was awarded 4.5 out of 5 stars. They liked that the product’s package is “both easily recognizable as a coconut water and a chocolate drink, giving it two places that it can compete.” They also stated they enjoyed ZICO Chocolate “both for its innovative qualities and its high-quality execution of a tough flavor maneuver.” ZICO Chocolate is available in the brand’s resealable, recyclable, on-the-go bottles, making it easy to merchandise and easy to drink anytime, anywhere. As with all ZICO varieties, ZICO Chocolate can currently be found at national retailers including Amazon, Target, Safeway and others.

Combined Distributors, Inc. 866-359-3948 www.pestwholesale.com

ZICO Beverages LLC 866-SAY-ZICO www.zico.com

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top tech Online Advertising Lifts In-Store CPG Brand Sales, Studies Show Consumers are paying attention to online display ads and that’s translating into offline retail sales, according to results from multiple studies released by comScore Inc. The studies measured offline sales impact of online display advetising for consumer packaged goods advertisers. Retail sales were measured by analytically linking the permission-based comScore panel of 1 million U.S. Internet users to their anonymous loyalty card in-store purchase data provided by dunnhumbyUSA; no identifiable personal information was disclosed. By comparing the in-store brand buying of households exposed to online advertising with that of households not exposed, it was possible to determine the impact of online advertising campaigns. The results of the studies indicate that exposure to online display ads can lead to improved in-store sales for CPG brands. “Effective advertising has always been about increasing awareness, favorability and purchase intent in order to increase in-store conversion,” said comScore Chairman Gian Fulgoni. “After several years of conducting advertising effectiveness research for CPG brands, we are learning how digital campaigns can lift sales in retail stores. It’s now clear that online ad campaigns should be an integral part of any CPG marketer’s integrated communications strategy.” “The comScore dunnhumbyUSA research highlights the potential impact of an integrated, customer-driven approach across channels,” added Matthew Keylock, Senior Vice President, New Business Development & Partnerships at dunnhumbyUSA. “With these results, we are one step closer to a more comprehensive understanding of what motivates shoppers to buy and how online advertising can play a significant role along the path to purchase.” An analysis of multiple CPG online ad campaigns that involved comparing the offline buying of households exposed to

advertising with the buying behavior of households who were not exposed revealed a median in-store sales lift of 21 percent among the exposed households, with 5 out of every 6 campaigns generating a positive sales lift. Approximately 70 percent of campaigns generated a double-digit sales lift, and more than 40 percent generated lifts of at least 30 percent. ComScore also analyzed the offline sales results of a limited set of ad effectiveness campaigns that leveraged a new advertising product called Microsoft CPG Online Effect. This solution uses sophisticated predictive targeting algorithms powered by anonymous in-store buying data from dunnhumbyUSA coupled with online browsing data from comScore. These targeting algorithms are deployed by Microsoft Corp. across its network of sites. The results showed an in-store sales lift of 42 percent, double the lift from campaigns that were not targeted using this approach. These results demonstrate how targeting algorithms can help improve efficiency and effectiveness in display ad delivery, providing more relevant ads to consumers, improved ROI for advertisers and higher CPMs for publishers. Dr Pepper Snapple Group is one of more than 20 CPG advertisers that has used this purchase-based targeting solution. “Based on these results, the power of purchase-based ad targeting is clear,” Fulgoni said. “By delivering a relevant and persuasive message to the appropriate consumer segment, brand buying at retail stores can be increased substantially. It’s clear that the level of accuracy in reaching a brand’s consumer target that is possible with the Internet can drive ROI several times higher than what can be obtained using traditional media channels.” ■

New Mobile App From Emerson Climate Technologies Helps HVACR Contractors Diagnose System Problems

Emerson Climate Technologies, Inc., a business of Emerson, has added a new application to its growing list of HVACR mobile resources. The HVACR Fault Finder™ mobile app provides on-site compressor troubleshooting for air conditioning and refrigeration systems. The app allows contractors to easily access product specifications for compressor electronics products, along with the ability to interface with and diagnose the system. Contractors can choose to enter the flashing “alert” code from the electronics module or use a tap feature to help identify the code, gaining them access to troubleshooting tips as well as an interactive flow chart to aid in diagnosing system problems. HVACR Fault Finder offers a 26

ConvenienceRETAILER

number of features designed to help contractors use their smart phones as a tool to quickly identify and address system issues. The app includes both interactive troubleshooting tools like LED descriptions and module alert code status, plus resources including electronic product manuals, videos and application engineering guides. The app provides valuable information for diagnosing and treating fault codes in HVACR equipment, including systems with technology such as Comfort Alert, CoreSense technology and the Copeland Scroll Digital Controller. Information on this and other Emerson Climate smart phone apps is available at http://www.emersonClimate.com/mobilea pps. ■

November/December 2011

Eaton’s Highly Efficient 9E UPS Delivers Simple Power Management for Complex IT Environments

Diversified industrial manufacturer Eaton Corp. has launched the Eaton 9E uninterruptible power system (UPS), a highly efficient backup power device designed specifically with the information technology (IT) manager in mind. Integrated with Eaton’s award-winning Intelligent Power Manager software, the 9E delivers affordable data center power management in a small footprint. The 9E’s sleek, compact tower configuration delivers superior power protection for expanding loads in space-constrained data centers while operating at up to 98 percent efficiency, making it the most efficient UPS in its class. The 9E is the first UPS in its class to offer internal batteries up to 60 kVA, which saves significant floor space when compared to external battery cabinets. Further addressing the IT manager’s growing energy management and efficiency concerns, the 9E’s physical footprint is up to 35 percent smaller than competing models, which allows better space utilization for revenue-producing equipment and materials, in turn, saving costs to build, protect, insure, heat and cool the data center. The unit further curtails total cost of ownership by minimizing energy, space, installation and maintenance costs, offering a potential lifetime savings of more

than $85,000. “The 9E UPS was created to help IT managers, whether in a small data center or complex IT environment, address typical data center problems head on,” said Louis Pinkham, Vice President and General Manager, Critical Power Solutions, Eaton. “The 9E provides a simple solution for common data center concerns such as return on investment, energy costs, remote management and efficiency, so the user has more time to focus on other mission critical operations.” The 9E comes complete with Eaton’s complimentary Intelligent Power Manager supervisory software, which allows quick and easy management and monitoring of multiple power devices across a network from any personal computer with an internet browser. The 9E also boasts a range of seamlessly integrated accessories to maximize runtime options, meet unique location requirements and allow for planning expansion. The 9E is accompanied by best-in-class service and one year parts and labor warranty with startup. To learn more about and interact with the new Eaton 9E, visit www.eaton.com/9E. To learn more about Eaton’s power quality products and services, visit www.eaton.com/powerquality. ■

RedPrairie Demonstrates Continued Focus on Supply Chain in Cloud

RedPrairie Corp., a global supply chain and retail technology provider, has announced the launch of RedPrairie OnDemand Supply Chain, an operating business unit dedicated to delivering supply chain solutions in the cloud. As part of the company’s on-demand product roadmap, RedPrairie On-Demand Supply Chain will support advanced functionality for warehouse management (WMS) and transportation management (TMS) delivered in both a single and multitenant model. After acquiring on-demand WMS provider SmartTurn and on-demand TMS provider Shippers Commonwealth, RedPrairie became the only provider to offer a complete supply chain solution in the cloud. According to Brian Schoenbaechler, General Manager of IntegraCore, a thirdparty logistics provider and RedPrairie customer, “Supply chain visibility is at the heart of our client-driven business, and RedPrairie’s supply chain in the cloud has been our cornerstone. Because RedPrairie’s innovative thinking has removed the barriers tied to inaccessible data, we’ve enhanced supply chain excellence with customers and prospects alike. Not only have we expanded our business because of RedPrairie, but our clients have benefited highly with better collaboration and accountability.” RedPrairie offers supply-chain solutions that address the operations of any

supply chain operation, from the smallest facility to the most complex shipping center, to the broadest supply network or distribution chain. During its annual user conference RedShift earlier this year, RedPrairie announced its on-demand product strategy to its customers outlining its plans to support multitenancy for TMS and fully integrate its on-demand product portfolio. Phase 1 of the rollout of its product roadmap, which includes the support of multi-tenancy for TMS, will be completed by the end of the year. “RedPrairie is the only company that can offer a mix of solution functionality, delivery model and price that can accommodate any business, no matter how big, small, simple or complex their supply chain operation may be,” said RedPrairie President of Global Operations Doug Braun. “Whether you are looking for a low-cost solution to manage inventory and shipments in a small warehouse, production facility or even a construction yard, to a uniquely customized combination of WMS and TMS to run multiple mega-DCs, the suite of on-demand software solutions complements RedPrairie’s ability to address those needs.” To learn more about how RedPrairie solutions can optimize your inventory, improve employee productivity, or increase sales, visit RedPrairie.com or email info@redprairie.com. ■



product features

The integrated pay-at-the-pump platform of Gilbarco Veeder-Root’s Encore 700 S fuel dispenser line, which was unveiled at the NACS show, is EMV and Payment Card Industry Unattended Payment Terminal (PCI-UPT) certified and offers a rich multimedia platform, enhanced security and mobile payment ready technology. Gilbarco Veeder-Root has the cstore industry’s largest population of EMV-compliant pay points. The company was first to market with EMV-compliant dispensers for Canada, installing over 90 percent of compliant dispensers. The company was also first to market with modular PCI-compliant Encrypting PIN Pads and Secure Card Readers for fuel dispensers in the U.S. and is recognized globally as a leader in fueling payment technology. Enhanced multimedia performance means Encore 700 S works with Gilbarco’s Applause Media System to implement forecourt merchandising to boost in-store sales and customer loyalty. The product is available with larger 10.4inch color screens to also run Applause TV with Outcast.

Convenience store cashiers may not remember their customers by name or recall their favorite soft drinks, but fuel dispensers soon will—thanks to the enhancements announced today by the industry’s leading forecourt merchandising provider, Gilbarco Veeder-Root. The company’s Applause™ Media System and Applause™ TV with Outcast will help retailers differentiate themselves by personalizing the customer experience–and boost site profits by tailoring content, promotions, and ondemand coupons based upon loyalty status and purchase history. Using the Applause loyalty interface, the POSindependent solution will also allow retailers to easily combine mobile couponing and social media promotions directly from the pump. Gilbarco VeederRoot is partnering with top loyalty providers Excentus, Kickback Points and Outsite Networks to design a generic interface to allow retailers to work with their preferred loyalty partner. Gilbarco Veeder-Root will offer retailers this new functionality through the Applause digital media platform, which utilizes large color screens integrated in the dispenser to drive customer loyalty and in-store sales.

Gilbarco Veeder-Root 336-547-5607 www.gilbarco.com

Gilbarco Veeder-Root 336-547-5607 www.gilbarco.com

Franklin Fueling Systems is pleased to introduce the latest addition to its line of XP Pipe fittings with the release of new XP Quick Release Fittings. XP Quick Release Fittings bring a new level of ease to XP pipe installation and servicing. These installer-friendly fittings combine the clamping system found on the original XP clamshell fittings with the capability to connect seamlessly to flex connectors utilizing the connector’s clamp and gasket. Installations are made easier than ever with the removal of additional threaded connections. The flange and clamp also allow for quick disconnection of the pipe from a submersible pump for easy servicing.

Award-winning healthy olive snacks Oloves are ideal for convenience store operators who are interested in healthy, nutritious alternatives to their current mix of food and snacks. Suitable for vegans and vegetarians, kosher approved and with an 18-month shelf life, Oloves have proved popular in travel catering and are stocked on several airlines, too. Each 30gram, liquid-free, foil-fresh pack contains 12 to 14 naturally tasty pitted olives. They are available in two flavors: Tasty Mediterranean and Light Hearted Vinaigrette. Two new flavors—Lemony Lover and Hot Chili Mama—will be available soon.

Franklin Fueling Systems 608-838-8786 www.franklinfueling.com

Oloves info@oloves.com www.oloves.com

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PT Coupling’s Secure-Lok™ features a new cam-and-groove locking system that secures your couplings and prevents tampering of cam groove couplings and theft of media. Secure-Lok can be used for pollution prevention, as it improves the current industry method of securing the coupling with tape or wire, can be used for lockout/tagout system and prevents removal of coupler cam pins by concealing the coupler cam pin area. Made of 12 gauge 316 stainless steel for strength and corrosion resistance, it’s designed to fit most brands and configurations of camand-groove couplings. Secure-Lok features a welded hinge pin for added tamper resistance and comes with additional lugs used for lanyard or ID tags. SecureLok™, which is made in the U.S., now available in 2, 3 and 4 inches. PT Secure-Lok 800-654-0320 www.ptcoupling.com

Finally, a petroleum piping solution that’s as healthy for your bottom line as it is for the environment. Introducing a revolutionary new product in petroleum piping—DoubleTrac from OmegaFlex. This environmentally friendly flexible petroleum piping system offers a zero permeation double wall system that is listed under UL 971A and because it is flexible, it makes it the easiest product to install. DoubleTrac has zero permeation, making it an industry leader in safety and is the most cost effective solution for underground storage tank systems for all fuel applications. The DoubleTrac system passed Praxair’s Tracer Tight, CGRS iota VaporTite V005 and Leak Technologies’ MDleak test methods. The MDleak test resulted in a tightness leak rate standard of 0.000001 gph. This rate exceeds California’s leak rate by 1,000 times. DoubleTrac gives the owner and installer a highly reliable system while providing the most cost effective solution to the industry—resulting in a petroleum piping solution as healthy for your bottom line as it is for the environment. OMEGAFLEX INC. 800-355-1039 www.doubletrac.net

The unique combination of half tea and half lemonade was made famous by legendary golfer Arnold Palmer. His namesake beverage is now available in a “spiked” version: Arnold Palmer Hard. Arnold Palmer Hard is a malt beverage, produced by the Mississippi Brewing Co. and distributed by Hornell Brewing Company, parent company of AriZona Beverages. It is made with AriZona brand iced tea and lemonade and contains five percent alcohol by volume. Launching in 24 oz. cans from Rexam, this refreshing, non-carbonated beverage has 110 calories per 8 oz. serving. Arnold Palmer Hard is available in Arizona, Hawaii, Illinois, Indiana, Kentucky, Massachusetts, Michigan, Nevada, New Mexico, New York, North Dakota, Ohio, Oregon and Pennsylvania and will continue to roll out nationally. Hornell Brewing Co. 800-832-3775

Dole Fruit Smoothie Shakers can help Americans balance their calorie intake and follow the 2010 Dietary Guidelines, which encourage eating more healthy foods like fruits and vegetables, and consuming less sodium, saturated and trans fats, and added sugars. Plus, real yogurt containing the benefits or pre- and probiotics (live and active cultures) in Dole Fruit Smoothie Shakers provides additional nutritious value. Dole Fruit Smoothie Shakers are available now in the frozen aisle of select retail outlets and select Wal-Mart stores, and will be available at major food and mass retail outlets nationwide in April. Suggested retail price is $2.19. Dole Food Co., Inc. 800-356-3111 www.dole.com


new products product features

Slim-Fast, the weight-loss brand that has helped millions of people experience “wow” moments for more than three decades, has announced a makeover of its own. Slim-Fast is introducing the brand’s richest, creamiest and best-tasting shakes ever in new, convenient on-the-go bottles. A recent taste test conducted by SlimFast revealed that both current and nonSlim-Fast users prefer the taste of the new, bottled shakes to the brand’s canned shakes. Slim-Fast’s balanced and proven approach to weight loss is supported by more than 45 published, clinical studies. The all-new Slim-Fast shakes are part of the Slim-Fast 3•2•1 Plan and product line, a proven method to meet weight-loss goals quickly, conveniently and safely. The plan includes three snacks, two shakes or meal replacements bars and one nutritious, balanced, 500-calorie meal of your choice. Flavors of the new Slim-Fast shakes include: Creamy Milk Chocolate, French Vanilla, Rich Chocolate Royale, Cappuccino Delight and Strawberries N’ Cream. The new 10-ounce bottles will be sold in packs of four, eight and 20 and are lighter, re-closable and more versatile than the previous Slim-Fast canned shakes— making it easier to reach weight-loss goals anytime and anywhere. Suggested retail price is $6.49 for a four-pack, $11.99 for an eight-pack and $22.49 for a 20-pack. Unilever U.S. www.unileverusa.com

YummyEarth, the No. 1 organic candy company in the U.S., has launched a new line of all-natural candy, YumEarth Naturals. The line premieres with YumEarth Naturals Sour Beans, now available and in time for bunny season. Fantastic tasting candy made with all-natural ingredients, YumEarth Naturals contains no artificial colors or flavors and no major allergens such as gluten, nuts and dairy. The launch of YumEarth Naturals Sour Beans celebrates YummyEarth’s newest flavor: Perfectly Peach, the 22nd variety of fabulous and award-winning flavors, including Pomegranate Pucker, WetFace Watermelon and Too Berry Blueberry. YumEarth Naturals Sour Beans comes in mouth-watering sour flavors: Perfectly Peach, Pomegranate Pucker and Mango Tango. YummyEarth 201-857-8489 www.yummyearth.com

CandyRific announces M&M’S Brand Rockstars, an entertaining new line of candy novelties that make beautiful music beginning Jan. 1. Prior to taking the stage with Rockstars, CandyRific and M&M’S Brand have teamed up with seasonal items and the hot-selling “Star Wars” novelties featuring the M&M’S Characters. Rockstars are sure to be a hit with music and candy lovers of all ages. These entertaining novelties are available in two choices—Red playing the guitar and Blue playing saxophone. Each Rockstar plays music and contains a FUN SIZE (.53 oz.) bag of M&M’S Brand Chocolate Candies in the base. Suggested retail price is $5.99; wholesale price is $3.89. CandyRific 502-893-3626 www.candyrific.com

The makers of Johnnie Walker announce the launch of Johnnie Walker Double Black, a new limited edition Scotch whisky debuting in the U.S. Imagine your favorite song; now turn up the volume. Double Black amplifies the signature style of Black Label, including its hallmark smokey flavor, to produce a bold blend of extraordinary depth, richness and character. Johnnie Walker Black Label has withstood the test of time. Over the past 100 years, this iconic brand has grown from a grocer’s blend to a whisky enjoyed around the world. Year after year, the liquid inside a bottle of Black Label honors the legacy of its creators. The heart of the whisky is the pioneering spirit of innovation passed down by John Walker and his sons, and Double Black is the product of this legacy. By reaching deep into some of the House of Walker’s most distinctive—and unparalleled—single malts reserves, Master Blender Jim Beveridge has created a powerful whisky that stands tall when placed shoulder to shoulder against its brethren blends and stands apart from all other whiskies on the market. Rich peaty single malts are combined with whiskies matured in deeply charred oak barrels. The result is a powerful intensity of flavor that is undeniably Johnnie Walker, and undoubtedly drawn from the signature style of Black Label. Johnnie Walker Double Black has a suggested retail price of $40. The limited supply is expected to last just until the holiday season.

LifeAID Beverage Co. has announced the launch of GolferAID, an innovative new entry in the functional beverage category. GolferAID contains 2,691 mg of active ingredients in the form of vitamins and supplements targeted at enhancing the array of functions required while playing a round of golf—power, focus, balance, endurance and flexibility. Today’s golfers are more educated, demanding and health conscious than ever before, and the GolferAID team believes their golf drink is at the forefront of the golf fitness movement. Developed by doctors, GolferAID is 100 percent natural and contains no artificial sweeteners, HFCS, artificial colors, or caffeine. Each 12-ounce can contains a mere 45 calories and only nine grams of sugar from its sweetener—organic blue agave. “GolferAID is not another energy drink or a one-size-fits-all sports drink,” says company Co-Founder and CEO Orion Melehan. “Our effective golf beverage has been designed for one mission only: to improve golf performance from the inside out. It is a new type of golf aid, one that happens to be in liquid form. From your golf swing to putting and even the enhancement of mental performance, regular consumption of our golf drink may be the best golf tip you’ll ever get. Some players live for the game. Well those who are on a steady golf diet now have a unique beverage to call their own.” LifeAID intends to improve golf in another way as well. Charitable giving plays a large part in LifeAID’s corporate philosophy. Five percent of the company’s net profits from the golf beverage are earmarked for charitable giving which align with its corporate mission—to aid the body, aid the causes and aid the life of its customers. LifeAID Beverage Co. 888-558-1113 www.golferaid.com

Supporting your immune system just got a whole lot easier: Introducing convenient and great-tasting new chewable tablets from Airborne Inc. (Airborne), the maker of innovative immune support supplements. Available in berry and citrus flavors, new Airborne Chewables can be consumed on-the-go. Just pop them in your mouth. No water needed. It’s that easy. “Your immune system’s got a big job to do and supporting it is now even more convenient thanks to Airborne Chewable tablets,” said Airborne spokesman, the Airborne Guy. “We’ve packed our same great formula with a powerful blend of 14 vitamins, minerals and herbs—including Zinc, Echinacea, Ginger and a blast of vitamin C—into great-tasting, easy-tochew tablets.” In scientific studies and medical journals, the key ingredients in Airborne products have been shown to help support a healthy immune system. One Airborne Chewable tablet provides a blast of vitamin C—as much vitamin C as in three 8ounce glasses of orange juice. In addition to new chewable tablets, Airborne immune support supplements are available in original effervescent tablets which, when dissolved in water, offer fast-acting absorption, and are available in Zesty Orange, Lemon Lime, Pink Grapefruit and Very Berry flavors; and on-the-go powder packets. Airborne Chewables are sold in 32 count bottles at drug, grocery, club and mass merchants nationwide. The retail price is $6.99. Airborne chewable tablets are free of caffeine, wheat, gluten and lactose. One to four tablets can be taken at a time, not to exceed 12 tablets daily. Airborne products are for adults and children ages 12 and older. AIRBORNE www.airbornehealth.com

Johnnie Walker www.johnniewalker.com

November/December 2011

ConvenienceRETAILER

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UPCOMINGEVENTS WHEN

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WEBSITE

November 6-9

Retalix Synergy 2011 Conference & Expo

Dallas, TX

http://retalix.com/synergy.cfm

November 7-9

Retail Law Conference 2011

Chicago

http://www.rila.org/events/conferences/ retaillaw/Pages/default.aspx

November 8-9

Kosherfest

Secaucus, NJ

www.kosherfest.com

International Council of Shopping Centers New York Conference

Hilton New York, NYC

www.icsc.org

January 2-6

Promotional Products Association International Expo

Mandalay Bay Convention Center, Las Vegas

theppaiexpo.com

January 15-18

NRF 101st Annual Convention & Expo

Javits Convention Center, NYC

http://events.nrf.com/annual2012/Public/ MainHall.aspx?ID=11628

January 23-26

Vision 2010 Consumer Products Conference

Hotel Inter-Continental, New Orleans

www.inda.org

January 26-28

OASIS Gift Show

Phoenix Convention Center, Phoenix, AZ

www.oasis.org

February 12-15

NGA Show

Mirage Hotel, Las Vegas

www.thengashow.com

February 15-17

AWMA Show - The Convenience Distributor Conference & Expo

Paris Hotel, Las Vegas

www.awmashow.com

February 18-22

NATSO Show

Caesar’s Palace, Las Vegas

www.natsoshow.org

February 21-23

Western Petroleum Marketers Association National Convention & Convenience Store Expo

Mirage Hotel, Las Vegas

www.wpma.com/national-convention

February 24-25

PACE 2012

Kansas City Convention Center, Kansas City, MO

www.paceshow.com

February 29 - March 1

Southeast Petro-Food Marketing Expo

Myrtle Beach Convention Center, Myrtle Beach, FL

www.sepetro.org

March 4-7

Refrigerated Foods Association Annual Conference & Tabletop Display

La Quinta Resort and Club, Palm Springs, CA

www.refrigeratedfoods.org

March 8-11

Natural Products Expo West

Anaheim Convention Center, Anaheim, CA

www.expowest.com/ew12/public/enter.aspx

March 13-15

Midwest Petroleum and Convenience Tradeshow

Indiana Convention Center, Indianapolis, IN

www.m-pact.org

NOVEMBER 2011

DECEMBER December 5-6

JANUARY 2012

FEBRUARY

MARCH

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ConvenienceRETAILER

November/December 2011




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