C&I Retailing Magazine December 2017 - Jan 2018

CONVENIENCE

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IMPULSE RETAILING NATIONAL CIRCULATION 26,896

DECEMBER 2017/JANUARY 2018

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+RS 0 13XHIBITO

1500+

VISITORS

IN PARTNERSHIP

15-16 AUGUST 2018 MELBOURNE CONVENTION & EXHIBITION CENTRE

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+ 0 RS O T 3HIBI X

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SAVE THE DATES

In partnership

EXHIBITOR EXPRESSIONS OF INTEREST ARE NOW OPEN C&I Expo 2018 will be held at the Melbourne Convention & Exhibition Centre on 15 to 16 August 2018.

Once again, the Australasian Association of Convenience Stores has embraced the event and will be presenting a comprehensive educational program plus staging its glittering Gala Awards Dinner.

WHY EXHIBIT? C&I 2018 and the AACS Gala Awards Dinner are the only FMCG based events that deliver: • Professionally staged and managed large scale events focused on convenience and impulse retailing and sponsored by the Australasian Association of Convenience Stores (AACS) • Access to independent operators who may not be receiving adequate representation • Access to the major corporate and independent chains • An opportunity to mix socially with some 600 suppliers and retailers at the AACS Gala Awards Dinner • Industry-wide saturation advertising for six months beforehand To find out why you should exhibit at C&I 2017 and to inspect the floor plan get in touch with Safa de Valois.

DON’T MISS THIS WORLD-CLASS NETWORKING EXPERIENCE FOR CONVENIENCE AND IMPULSE RETAILERS ACROSS ALL BANNERS AND BRANDS. Safa de Valois - Publisher & Commercial Director, C&I Media Phone: 02 8586 6172 Mobile: 0405 517 115 Email: safa@c-store.com.au

www.candiexpo.com.au

CONTENTS

EDITORIAL

DECMBER 2017/JANUARY 2018

24

The future of convenience

32 A 08 FACETIME

Drew Fairnham, General Manager of Sales & Marketing at Mrs Mac’s

12 STORE REVIEW

Victorian town of Horsham

16 AACS

Is the future ‘Foodvenience’?

20 ENERGY DRINKS A burst of energy

24 SUGAR-FREE CONFECTIONERY

Are alternatives to sugar taking over the market? Or are they just a fad to scare health conscious consumers?

28 NON-DAIRY MILKS

Is the era of dairy-free drinks upon us?

32 SPECIAL FEATURE: KOMBUCHA Kombucha? You betcha!

s the end of the year draws near and we await the next with bated breath, there’s a lot of talk about the future of convenience stores and how they will look in both the near and far.

In our October/November edition, Jeff Rogut wrote a piece on how trends and advancements in technology will shape the industry. Mr Rogut said that as long as the industry continues to innovate, then the landscape could look very different within the next 10 years.

In this issue, Brett Barclay’s opinion piece also speaks to the future.

“The next 10 years will see a very different shopper coming through with a significantly different view to the previous generation,” he said.

“The reality is that if you don’t have or haven’t acted on current trends by now, you are playing catch up.” You can read more of Mr Barclay's thoughts on the matter on pg 46.

And, speaking of trends, the sugar free confectionery sector is heating up with

suppliers responding to the health conscious consumers who are continually aware of the negative effects of sugar on the body. But is it possible that sugar alternatives such as sweeteners, could actually be causing more harm than good? Find out on pg 24.

As usual we have heaps of new products in the Product News Section and an entire feature piece dedicated to the newest trend in beverages: Kombucha. We spoke to both Remedy Kombucha and Liquefy to find out what they thought about the industry and how Kombucha fits into the market.

We also take a very small trip overseas, as scattered amongst the features are snippets of what the American convenience industry looks currently like and how it is influencing us down under.

Lucy Marrett Editor

38 PRODUCT NEWS

All the latest products releases

46 OPINION

Brett Barclay, Charles Watson, Sara Salter, Craig Matthews

54 INDUSTRY NEWS

UCB, MotorMouth, EzyMart, AACS, Kollaras

60 PETROL NEWS

In the news, Dan Armes, Gallagher

Safa de Valois

James Wells

Keith Berg

Lucy Marrett

Jeremy Gough

PRIME TIME

Luv’em — now and always Introducing Luv’em mini donuts, the original cinnamon cake mini-donuts are now available in a convenient take-home pack.

Hot or cold, cinnamon donuts are a family favourite, loved by generations both young and old, and now Luv’em is bringing them to consumers in a new, portable format.

Thanks to the brains and efforts of the Luv’em team, the donut world is about to be taken over by a brand new innovation that is being rolled out (!) in convenience stores all over the country to the delight of retailers.

Donuts are a popular category in the convenience channel, but until now there weren’t any options for the traditional cinnamon cake donuts let alone 'Mini’s’.

Luv’em will be available either direct from the company, or nominated distributors. To stock Luv’em in your C-store, contact us on either 1 300 885 512 or 0426 667 664.

‘Luv’em- now and always.’

TM

Probiotics just got a whole lot tastier PERKii uses a world-first technology developed at the University of Queensland (UQ) to encapsulate their probiotics allowing them to survive through the stomach and safely to the gut, where they do their best work. But the real tasty part is this.

PERKii’s technology controls the fermentation allowing for a noncarbonated, low sugar, low calorie and a bitter free taste. Meaning new consumers to the health category and incremental sales.

The team at PERKii promise more than one billion living probiotics, and utilising LCasei431® they have one of the highest regarded digestive and immunity supporting probiotics on the market.

Available in five flavours including strawberry and watermelon, lime and coconut and mango and passionfruit, PERKii is sold as a 300ml single serve.

For more information, head to www.perkii.com or contact sales@perkii.com

Majors Group professional refrigeration

High Protein Oak Plus

Majors Group Australasia have been importing and maintaining refrigeration equipment throughout Australia for over 24 years.

ISA, one of the exclusive brands in the stable, are the world leader in the shop furnishing, retail, supermarket and professional refrigeration.

ISA products are high performance with cutting-edge technology, set apart by a unique design and functionality, specified for the Australian market.

ISA in collaboration with Majors Group, have introduced the Infinity Smartflex, specifically for convenience and supermarket retailers.

The revolutionary system of self-opening doors open on demand, detecting when a customer moves towards the unit.

Up to 45% less energy use is the result of the patented door mechanism, compared to an open faced ' air curtain' system.

Call Majors Group to discuss how to revolutionise your business. Ph: 1800 625 677

Consumers can now get their hands on OAK PLUS, a delicious new sports recovery drink from the makers of Australia’s number 1 flavoured milk brand, OAK. Specially formulated for sports recovery*, OAK PLUS kills postworkout Hungrythirsty dead with a 30gram punch of dairy protein. It’s also low in fat with reduced sugar.

Packing the trademark OAK flavour punch that really hits the spot, OAK PLUS is available in Chocolate, Iced Coffee and Vanilla.

Since launching in early 2017, the OAK PLUS range has attracted 33% of new users to the category, and a total 55% re-purchase rate; totalling $1.4m in RSV*. The results speak for themselves.

RRP is $3.90 for a 500ml bottle.

For more information, visit the OAK Facebook page: www. facebook.com/oakmilk

Published by C&I Media Pty Ltd (A division of The Intermedia Group) 41 Bridge Road (PO Box 55) Glebe NSW 2037

Publisher: Simon Grover

Editor at Large: Keith Berg

Commercial Director: Safa de Valois

Editor: Lucy Marrett

Tel: 02 8586 6292 Fax: 02 9660 4419 E: magazine@c-store.com.au

Editorial Director: James Wells

Features Editor: Jeremy Gough

*With protein as part of a healthy diet from a wide variety of foods. Data sourced from Quantium Group Pty Ltd. 11/10/17.

Graphic Designer: Adrian Tipper

DISCLAIMER This publication is published by The Intermedia Group Pty Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by Australian and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials.

The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information.

All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded save for those conditions and warranties which must be implied under the laws of any State of Australia or the provisions of Division 2 of Part V of the Trade Practices Act 1974 and any statutory modification or re-enactment thereof. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication.

Copyright © 2017 - The Intermedia Group Pty Ltd.

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December 2017/ January 2018 | C&I | www.c-store.com.au

5

Creating a better shopping experience in confectionery & snacks.

TM

Why not merchandise your entire category using our NEXT pusher trays?

Not only will they increase the number of facings, leading to increased sales, they can also merchandise almost any product whether bagged, boxed or packeted!

Adding more impact and delivering increased sales!

There are many ways to create differentiation and increase your category sales and one is simple and easy to do. Research has shown that by adding light to a category it increases sales by up to 20% and improves the shopper journey!

Other opportunities include introducing bulk bins to the category, allowing customers to personalise their purchase by dispensing the exact amount they want to purchase, creating that all important point of difference.

HL Display Australia Pty Ltd. Suite 432, Level 4,14 Lexington Drive, Norwest Business Park, Bella Vista NSW 2153 Australia ABN: 59142957373 PH: +61 2 8883 1157 EMAIL: adminanz@hl-display.com WEB: www.hl-display.com

The better shopping experience

FACE TIME

DREW FAIRNHAM

MRS MAC’S

A conversation with Drew Fairnham, General Manager of Sales & Marketing at Mrs Mac’s

I

was born and bred in Sydney, NSW. Bankstown Hospital to be specific. So little wonder and I was dragged by my parents to Bulldogs games in the bassinet.

I grew up out Campbelltown way, in a suburb called Bradbury with my parents and sister. A brilliant upbringing and I am so thankful for the head start I was offered as a result of this. My parents built a house there when it was basically farm and bushland. A far cry from what it is today. I lived in the area until I was 21 years old and post finishing my studies at Wollongong University I took the step to move to Melbourne. The move to Melbourne was to pursue my career, though after a stint of around 10 years in Melbourne I am so grateful for the experience of having moved to a new state.

I am married to Dianna. We met in Melbourne despite Dianna being a Kiwi. One of the best exports to come out of New Zealand!

Fast forward to today and we have two boys, Zac who is 14 and Luke is 11. Certainly no text book as to how to be a parent, though an experience that is the most rewarding I have taken on in life.

8 December 2017/ January 2018 | C&I | www.c-store.com.au

My first job our of University was as a Territory Sales Manager with L’Oreal. I actually found the letter of offer recently, $27,500 per year and a company car. I thought I was King Kong”

At present we live in Glenhaven, a small suburb in the Hills District of Sydney. We have resided in this region since we made the decision to shift to Sydney. Fond memories of our time in Melbourne, though our base is truly now in Sydney.

Growing up, I wanted to be a sports star, as almost every sport crazy kid does at some stage, though when the reality kicked in around absence of talent I wanted to follow a path similar to my Dad. My Dad was a qualified Accountant operating as a Finance Director at the time.

So on the back of the fact I loved numbers, and felt comfortable in my schooling days in that area; I pursued a Commerce Degree with a Marketing specialisation at Wollongong University.

University was a great transition. You shift from being part of a small network through High School to one at University that is on such a large scale, plus the shift in terms of expectation around workload. I commuted daily to Wollongong from Campbelltown, and balanced my studies with some part time work at Clint’s Crazy Bargains. Now trading in Australia as The Warehouse Group.

All along my journey, including the present day, I have always relished the opportunity to connect with people, and the relationships that come from that. Whether High School, University, part-time work, my career post study, or even the place where I have lived, I have always responded best to environments that have been grounded in great connection to people.

My first job out of University was as a Territory Sales Manager with L’Oreal. I actually found the letter of offer recently, $27,500 per year and a company car. I thought I was King Kong.

The funny story as to why I applied for that job was that my Mum had cut out a newspaper advert for the role as it was the company that made the hair products she used. A few interviews later and next thing you know the products were in plentiful supply in the Fairnham household. Quite humorous if you consider I was going bald at a young age and was now in charge of selling hair styling products and hair colourants to pharmacies across NSW. Outside of the obvious challenges around personal use of the products, it was an amazing start to my career. L’Oreal is an incredible business, and I was lucky to have great colleagues and mentors in my early career.

“I worked at L’Oreal for five years, occupying three different roles in this time. The opportunity then arose to expand my experience with Warner Lambert Consumer Healthcare.

Better known for selling brands such as Codral, Benadryl, Sudafed, Mylanta and Listerine. This business now operates as Pfizer post acquisitions several years ago. My time with Warner Lambert was across three years, continuing my focus on the Pharmacy channel of business.

I had the opportunity to take on a role with PepsiCo in early 2000. This was as State Sales Manager – Victoria & Tasmania, for the Grocery division.

I remember being in interviews with PepsiCo in late 1999 around the time that there was all the panic about the millennium bug. People who interviewed me had to pull themselves out of project team meetings as all the efforts were merging in late December to ensure they averted any issues.

I started with PepsiCo in Melbourne in 2000, then transitioned to Sydney in 2002. I worked across the PepsiCo system until departing in late 2016. Seven different roles, but

FACE FEATURE TIME more importantly I had more experiences that one could ever hope for to shape a career.

PepsiCo was a massive part of my life; I was at PepsiCo before I met my wife Dianna, hence certainly before I became a father. PepsiCo was at the core of who I was through many of my key life experiences. My two sons Zac and Luke only ever knew me as Dad the Chip salesman or Dad who sells Pepsi Max. It was a big decision to depart PepsiCo in 2016, though a fantastic opportunity to embark on a change in my career.

One thing I did know was that I would seek to stay as a core part of the Convenience industry. I was introduced to the Convenience industry through my roles at PepsiCo. Whether this was managing the National Field Sales team who service sites up and down the street, through to developing the Convenience Strategy with the Account & Category team. I developed a passion for Convenience retailing and a desire to work closely with key partners to drive success. Plus living in the size of the country we do, the multiple ways to market for products, whether through a direct route system, or harnessing the Distributor partners that service key geographies around Australia.

The role I credit for cementing my passion for Convenience and Independent Retailers was the Senior Sales Director – Traditional Trade, at PepsiCo. In this role I become more involved with the key retail & buying groups in convenience.

Plus with the size of the Field Sales team that PepsiCo operated, respecting that the best laid plans are only possible though the execution within and service to the stores up and down the streets of Australia.

On the back of that particular role I became far more involved within the industry, and developed relationships with key individuals who shape our industry. A number of those individuals occupy current roles on the Board of the Australasian Association of Convenience Stores (AACS).

Through these connections I was invited approx. three years ago to be a part of a Supplier Forum through the AACS network, and have enjoyed being able to feed into all interactions and industry issues since that time Hence when the opportunity come up to join the Mrs Mac’s business as their General Manager – Sales & Marketing in March 2017, it felt like an incredible opportunity.

Mrs Mac’s presents me with a business who operates with a core customer focus of Convenience & Independent Retailers. A family owned business for all of its 63 years, presenting a great chance to shape the future of a smaller agile business. Plus selfishly the chance to remain within a channel of business which I love and enjoy each day.

Most exciting since starting at Mrs Mac’s has been the opportunity to shape our future plans, and unlock the true capability of the business. The business has so much to offer in the future in terms of product quality, and innovation streams to drive growth. I lead the sales and marketing team, and operate as part of the executive leadership team.

Confident I can make a difference in the years ahead.

From a career perspective, the step to Mrs Mac’s has fed into my desire to build my skills. It’s given me the opportunity to use my Marketing Degree first hand.

Before this role I’d never physically had responsibility for a Marketing agenda, so within Mrs Mac’s it’s a combination of Sales and Marketing so I’m taking the opportunity to learn. I am hopeful I never stop learning. I

Zac and Luke

Luke and Dianna

Advice for suppliers • Make Convenience a priority.

• Suppliers need to devote appropriate time, energy and capability to the Convenience channel of business. Strategic planning needs to prioritise differentiation through products and execution.

• The Convenience channel serves such a different shopping occasion to the one that has shoppers walk the aisles of a large Grocery retailer. As a result those suppliers who take a cookie cutter approach to innovation within their business, and each individual retailer, will fail to capitalise on the growth opportunities that exist.

• Customer centric plans combined with doing the basics right will go a long way to driving success in Convenience.

Advice for retailers • Remain open to change, and invite key supply partners along this journey.

• With the rapid changes across the marketplace, and the changing way people shop and use technology to communicate, change is inevitable.

• Those retailers who are embracing change are leading the way.

know I’m learning on the job each day and taking hold of reshaping the Mrs Mac’s organisation. Whilst respecting everything that has made the company and the Mrs Mac’s brand great.

More broadly I’ve been involved with AACS for about three years. I was lucky enough to be invited to be a part of the supplier forums, and will continue to pursue such opportunities in the future. The ultimate goal would be to occupy a role as one of the Supplier Board members in years to come. As a Supplier representative I have enjoyed the opportunity to discuss key topics within the industry. I know that my passion and appreciation for the industry has grown from this involvement, feeding into a desire to play a broader role in terms of shaping our destiny and to take on some of the challenges within the industry.

Even if I can’t make a difference, to at least get a greater appreciation of some of the challenges that are confronting some of our customers I am so much more educated about the Convenience channel.

If through my current role with Mrs Mac’s or future involvement in Convenience channel forums I can play a role to inspire others to invest time and energy into the Convenience channel trade, then that is what I want to be able to do.

It is an exciting period of change on the way for the Convenience industry, and I look forward to being at the forefront of shaping the future. C&I

I developed a passion for Convenience retailing and a desire to work closely with key partners to drive success.”

December 2017/ January 2018 | C&I | www.c-store.com.au 9

The peak body for the Australian Convenience Store industry, celebrating over 25 years of working for the industry.

STORE REVIEW

OPPORTUNITY KNOCKS It all happened pretty quickly and, to be honest, it is not something that I ever imagined I would do.”

W

From a part-time job to two stores of her own.

hen single mum Hollie Winfield took a part-time job at her local service station as a way of getting out of the house again, she could never have dreamed that a decade later she would own the business and a similar one down the road.

While she may have taken a different route to petrol and convenience success, Hollie shares with all the best operators a passion for what she does, an incredible work ethic, and the ability to seize an opportunity when it presents itself.

The former supermarket ‘checkout chick’ spent five years at home looking after her two young boys before she went back to work at what was then a Mobil service station in 2004. She started off just doing weekend shifts but was soon promoted, at the age of 22, to manager. Two years later, she was also managing a similar business nearby.

“I sometimes had to step back and think ‘wow, I’m actually the manager',” said Hollie. “But I loved the business and the challenges it brought and I treated it as if it was my own.”

Then, almost overnight, it really was her own.

In early 2014, Hollie received notification that the businesses she worked at in the country Victoria town of Horsham were to be sold to Caltex and, as a manager, she was being offered the chance to buy them.

“It all happened pretty quickly and, to be honest, it is not something that I ever imagined I would do,” she said.

“But the truth is I don’t like change and didn’t really want to have a new company coming in with all of the disruption that would bring.”

12 December 2017/ January 2018 | C&I | www.c-store.com.au

With her own properties behind her, Hollie was lucky enough to be in a financial position to be able to seize the opportunity but there were other considerations.

“As a single mum I was concerned about the effect it would have on my family but my children were old enough to look after themselves a bit more,” she said. “And they encouraged me to take on the challenge.”

And the rest, as they say, is history.

“It was a big jump as I have never done things like the payroll but I was lucky to have people around who put in countless hours helping me,” Hollie said. “I think it took me a year of working 18-hour days to truly find my feet but I am gaining confidence now, and have even squeezed in a few holidays.”

Caltex Baillie St is open 24/7 for 365 days a year. It sits on the Western Highway around half way between Melbourne and Adelaide in Horsham’s CBD, and it is surrounded by both homes and businesses.

“It is in a perfect location with a lot of locals coming in who we know by name,” Hollie said. “And, due to our location, we also get a lot of highway traffic.”

The business’s forecourt is well laid out to allow for an easy flow of traffic from all directions and three fuel types – Vortex Diesel, Unleaded and Vortex 98 – are available at each pump. There is also an LPG dispenser with two pumps.

Inside the compact store, the hot food offering includes the likes of hot pies and sausage rolls as well as locally made sandwiches, a coffee machine, chips and confectionery, a small grocery

STORE REVIEW offering, auto supplies, and magazines. It also sells ice and locally-sourced wood and kindling.

“This shop is only small at 100 square metres but we make the most of what we have to work with,” Hollie said. “I love dealing with customers and I love the freedom of making my own decisions, and my mind is always ticking with ways to enhance the store, products, and how to motivate my staff.”

Future plans may involve looking at introducing a new hot food area, finding more local suppliers, updating hardware, and potentially expanding the store itself.

Having seamlessly made the rapid transition from stay-at-home mum, to part-time worker, to business manager, to business owner, Hollie says she may not be finished yet.

“To be honest, I am getting to the point where I am more comfortable with being a business owner and am starting to get itchy feet again,” she said. “As well as becoming more the face of the business, I am also thinking about starting to have a look around to see if there may be another store in the Horsham area that I could look at buying.” C&I

It is in a perfect location with a lot of locals coming in who we know by name”

“We are in such a great location here that we could sell more stock but we simply don’t have the space,” said Hollie.

“However, we did pre viously have a workshop behind us so it is in the pipeline that we might be able to extend there at some stage.”

The business currently serves around 1,200 customers a day, and that rises to around 2,000 at Christmas. Hollie has a roster of 22 staff working across her two businesses, generally on sixhour rotations. Along with an assistant, she still manages the businesses directly and carries out tasks such as ordering, herself.

“I am getting help from people but I am the sort of person who likes to know how things are done,” she said. “I am very handson and day-to-day involved.”

With two other service stations within sight of the Baillie St site, Hollie is keenly aware that one of her key competitive advantages is that her store is locally owned.

“The competition are corporate and, going forward, I really want to put more focus on our localness and the fact that that we can really give customers what they want,” said Hollie. “I have just been finding my feet and getting my confidence up so I really haven’t made a big deal of the fact I own the store yet, and most people actually think I am still the manager.”

Hollie Winfield behind the counter.

The store and its staff are already very involved in the community and give to local charities, volunteer at events, run in-store promotions, and raise money for local organisations.

December 2017/ January 2018 | C&I | www.c-store.com.au 13

IS THE FUTURE

‘FOODVENIENCE’?

There’s little point in convenience stores focusing on products that customers don’t visit our channel to shop for, and in categories in which we cannot effectively compete.”

M

By Jeff Rogut, CEO, Australasian Association of Convenience Stores (AACS)

any people working in the convenience industry would think of the typical Australian convenience store as being a service station with a food offer.

While recent innovations have seen that food offer vastly improve, typical customers would probably think the same thing: convenience stores are a place to fill up first, and get something to eat second.

But if our industry is to follow in the footsteps of the US convenience industry, this perception could be about to flip.

On the recent AACS study tour of the US, which included an eye-opening visit to the NACS Show in Chicago, one of the more interesting buzz words I came across was “Foodvenience”.

Visiting various stores on the tour, the meaning of the term became clear. It is all about food – food and beverages for now or for later. Customers being served efficiently and pleasantly in modern, bright, clean stores.

There was very little evidence of those products that typical convenience stores used to stock, but not really sell in any meaningful volumes. The kinds of products that largely just contributed to the perception that convenience stores were expensive compared with supermarkets that sold the same items.

The Convenience 2030 research commissioned by AACS reinforced this point. The report highlighted that people today operate on a short-term cycle. When they are hungry or thirsty, or if they need to collect a parcel or pay a bill, they value

efficiency. Though they have more disposable income, they also want value for money.

There’s little point in convenience stores focusing on products that customers don’t visit our channel to shop for, and in categories in which we cannot effectively compete.

The US experience proves that food is – or at least can be – our major competitive advantage.

In the stores we visited it’s all about fresh meals, salads, bakery goods, healthier options and beverages of all types, including alcohol. Tobacco is still a major category, though prices are still well below those in Australia.

The lessons for the Australian market? Many of our stores are well on the road to improved food offers; however the potential that still exists is enormous. In the US, a number of well known brands now see themselves as food stores that happen to sell fuel.

Foodvenience stores and judging from reports, customers also see them in this light.

According to a recent report from Nielsen on the US convenience industry: “One third of convenience shoppers expect to purchase

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December 2017/ January 2018 | C&I | www.c-store.com.au

Customers behave differently in each one. In the dine-in zone, customers look for a choice of dining environments, depending on whether they are lingering, meeting as a group, or just want to eat and run.”

fresh food in the convenience channel in the future. And when it comes to food service, convenience retailers should focus on differentiating the destination by offering fresh ready-toeat/healthy foods, as quality is the biggest claimed barrier for purchasing fresh food in c-stores.”

It makes sense for Australian convenience stores to heed these lessons. If, as an industry, we are seeking an avenue in which to focus our efforts for the future, food service presents as the best option.

Howland Blackiston, Principal at King-Casey and presenter at the 2017 AACS Convenience Leaders Summit and Gala Awards, is not surprised that Aussie convenience stores are focused on food service.

One of the world’s most progressive retail voices, Blackiston goes one step further, asking whether convenience stores in Australia can evolve their offer to compete for market share with QSRs. In a recent address, he provided an interesting case study on US convenience chain American Natural, which engaged KingCasey to help it create a next generation convenience store that optimises the sales of freshly prepared food and beverages.

The 14-store American Natural chain was built on the vision, in the words of CEO Jennifer Pomerantz, “you shouldn’t have to sacrifice what is important to you and your family. Better food.

Better service. Better choices.”

King-Casey’s approach began by tackling the low hanging fruit.

Blackiston notes: “the company’s identity (trade dress) was distinctive, but skewed to a male image and was low on projecting fresh food and a female focus. King-Casey eliminated the male cues.”

King-Casey utilised its proprietary Customer Operating Zone Improvement (COZI) methodology, which recognises that “stores are not just branded boxes”.

Blackiston continues: “Customers behave differently in each one. In the dine-in zone, customers look for a choice of dining environments, depending on whether they are lingering, meeting as a group, or just want to eat and run. So American Natural offers choices that respond to these needs. There is a fast dining zone with counter seating for customers on the go.

For groups, there is a socialising dining zone with 4-top tables.

For those who want peace and quiet, there is a relaxation dining zone with overstuffed chairs. There is even an outdoor café for alfresco dining.”

It’s an interesting concept and it offers a glimpse of what the future convenience – or foodvenience – stores in Australia could look like.

Is it therefore out of the question that our industry, instead of focusing on fighting the efforts of the major grocery chains encroaching on our turf, should encroach on the traditional market share of QSRs? Truth is, Australian convenience stores have always had a competitive advantage. With a focus on food, we have the chance to flex our muscle in a new competitive arena. C&I

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December 2017/ January 2018 | C&I | www.c-store.com.au

Find the best news in store at

www.c-store.com.au

Convenience and impulse retailing is fast paced and exciting, and staying up to date with the latest news, trends and products is crucial for the success of your business. Subscribe to C&I’s free weekly e-newsletter C&I Week to have the latest news delivered to your inbox every Thursday at www.c-store.com.au

ENERGY DRINKS

BURST OF ENERGY

The oldest new kid on the beverage block shows little sign of running out of steam

E

nergy drinks have been a convenience store sales juggernaut since they first exploded onto the scene a couple of decades ago, giving the beverage fridge an almighty shake-up as they did so.

Having achieved what at first seemed unimaginable – relegating carbonated soft drinks from the top spot in the chiller- it seemed inevitable that, in time, energy drinks themselves would eventually run out of sales steam. However, despite growing competition from other beverages and despite persistent healthrelated questions, the category continues to deliver.

The secret to this ongoing success story has been a combination of strong marketing, consistent product innovation, and a commitment to maximise the potential at store level.

Convenience stores eager to reap maximum benefits from this reliable profit source have focussed on allocating the category appropriate space, stocking the right brands, and doing so in the right place.

As it has matured, the energy drinks category has not surprisingly been unable to sustain its levels of early growth, but it remains a consistent high performer and it returned to growth 20

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A 2015 Research Trial and Awareness Study from Red Bull showed energy drinks was very reliant on heavy users (25% of energy drinks users) that drive the majority (75%) of volumes.�

in 2016. According to the most recent State of the Industry report from the Australasian Association of Convenience Stores (AACS), energy drinks accounts for nearly 23% share of total ready-to-drink (RTD) dollar sales.

In a category in which the customer base has remained relatively flat for some time, one of the keys to maintaining and improving sales is to find ways to bring in new users. A 2015 Research Trial and Awareness Study from Red Bull showed energy drinks was very reliant on heavy users (25% of energy drinks users) that drive the majority (75%) of volumes. Innovation and the introduction of new flavours, variants and packaging will then continue to be absolutely critical to the success of the category.

Shopper Tracker Convenience 2017 data shows that 45% of shoppers are seeking improvements in innovation, so stores that continually support new products and variants will bring in new shoppers or increase the repertoire of existing energy drinkers.

The Australian energy drinks market is dominated by brands such as Red Bull, V, Rockstar, Monster, and Mother and all pride themselves on their innovation as they respond to the challenges of changing consumer demand and seek to keep the

ENERGY DRINKS FEATURE category fresh and exciting. Red Bull says it saw around one in five incremental sales come from the Red Bull Kiwi edition when it launched, and it has similar high hopes for its recently introduced Red Bull Ruby Grapefruit.

Last year, Frucor also enjoyed great success after releasing Rockstar Energy Drink in Lime Freeze flavour, and its Rockstar Energy Drink in guava flavour was also a hit with consumers.

The company has also recently launched V Pure, an all-natural energy drink, which directly addresses the concerns being raised in some quarters about the ingredients of the beverages. Frucor hopes that V Pure will help consumers overcome the perception that energy drinks are artificial.

In its State of the Industry report, the AACS identified that delivering energy drinks growth had been made more challenging by the fact that some consumers had health concerns, and were showing a preference for products that are naturally functional and/or naturally lower in sugar.

Sugar content is another of the main barriers to energy drink consumption and so it is important that convenience stores always provide a sugar-free/zero offer to capture shoppers who are mindful of their calorie intake. Red Bull says diet continues to have considerable relevance in energy drinks, and this is being reflected in double digit annual sales growth in sugar-free variants.

Coca-Cola Amatil released Monster Energy Zero Ultra last year, a zero sugar and lighter tasting energy drink option, with the brand’s lighter packaging colour also helping to attract female consumers.

Since securing a 20-year distribution contract for the Monster Energy brand in Australia and New Zealand in April last year,

Coca-Cola Amatil has said it is eager to capitalise on the strong global profile of the brand to further reinvigorate the category.

Innovation isn’t just about flavour and ingredients, however.

Mother remains an innovative brand due to its experimentation with the larger 500ml can size and offering of extension products such as Mother Big Shot, a previous product which included both guarana and taurine for added energy in a smaller 150ml can.

There are four key pack groups within energy drinks: small; medium; large singles and multipacks. According to IRI AU Convenience Scan data, large singles sell the most in convenience, making up 39.5% of total sales. Small cans are also important as they are a perfect size to enable people to enter the category and make up 23.7% of sales, while medium singles are an important pack to uptrade shoppers and make up 17.5% of total energy sales.

As market research company Euromonitor International notes, the category will continue to benefit from consumer demand for a fast energy hit in line with today’s busy lifestyles. It says it will be innovative flavours and functional ingredients, as well as new packaging, coupled with strong promotional activity, that will ultimately encourage growth.

Understanding energy drink customers and what they are looking for and when is a critical part of convenience stores being able to increase sales. Energy drinks are a natural fit with convenience customers who tend to be on the move and commonly seeking a lift to keep them going through their busy days. Whether consumers are studying, driving, exercising or simply socialising, they expect to be able to get their favourite

AT A GLANCE • Energy drinks account for nearly 23% share of total ready-to-drink (RTD) dollar sales.

• Energy drinks are best to be brand blocked, as shoppers will primarily shop by brand.

• Some 65% of energy drink shoppers purchase their product from the main fridge, but around 34% of shoppers purchase from a secondary display near the counter.

• Stores that continually support new products and variants will bring in new shoppers or expand the repertoire of existing energy drinkers.

Innovation isn’t just about flavour and ingredients”

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21

ENERGY DRINKS energy drink at the local convenience store.

The AACS says that the success of energy drinks and other growthgenerating beverages reflect today’s ‘24/7 society’. It points out that three of the four leading growth generating beverage formats in Australian petrol and convenience provide a physical/ mental boost to consumers.

“The ‘pick-me-up’ potency of energy boosters function as an insurance policy for individuals who are anxious about underperformance (and not feeling mentally-switchedon) in a competitive society characterised by high levels of fatigue and stress,” it said.

Supermarkets are increasing energy drink representation in front of store fridges in a clear effort to capitalise on the impulse occasion and the small shop mission. Grocery has also been achieving some growth in energy through discounting and through its multipack offer.

The ‘pick-meup’ potency of energy boosters function as an insurance policy for individuals who are anxious about underperformance (and not feeling mentallyswitched-on) in a competitive society characterised by high levels of fatigue and stress.”

22

According to ShopperTracker Convenience 2017 data, energy drink shoppers are generally male (54%), with 18-34 year olds being the largest group of shoppers. Energy drinks although consistent in purchases, show two peaks during the day – both morning and afternoon, in line with the consumer’s need for a pick me up. They are mainly buying to consume between meals (51%), however may also be purchasing as part of breakfast, lunch or dinner.

Red Bull sees bundling energy drinks with food products as a clear way to lift sales. It says, for example, that 8% of shoppers will buy an energy drink to go with their breakfast. Additionally, 51% of shoppers will purchase to consume between meals – so it believes there is also the opportunity ‘for later’ when buying as a combo with food/snacks.

Frucor agrees that bundling can be a great sales driver but it cautions that it can be limiting if the deal is only for a certain type of food which only some people eat. However, it says promotions are certainly an important and effective way to bring some excitement on the floor and grab shoppers’ attention.

The real key to convenience stores maximising their market share of energy drinks sales though is to focus on getting their ranging right. With the six highest selling SKUs represent 41% of total energy sales, Red Bull says operators should always ensure that these SKUs are ranged and available.

Out of stocks pose a huge risk to retailers in lost energy drinks sales and, with energy drinks making up around a quarter of total

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beverage sales, the fridge should ideally have at least one in four doors of energy. Similarly, each energy drink brand should have its fair share of space to reflect its sales. Energy drinks are best to be brand blocked, as shoppers will primarily shop by brand. All the best sellers should be highly visible and priced correctly.

Frucor warns that if customers find their favourite energy drink is unavailable, they may leave without making a purchase at all or possibly look for something other than energy, which in most cases will deliver a lower value sale. Operators need to be aware of the sales peaks in their store and ensure they have enough stock on hand. Frucor says the fact that energy drinks have a relatively long ‘best before’ date makes stock management easier and limits the risk of write offs.

Another key way to boost sales of energy drinks is to offer them at multiple locations in store. Research shows that 65% of energy shoppers purchase their product from the main fridge, but around 34% of shoppers purchase from a secondary display near the counter. (IRI AU Convenience scan data dollar MAT to 1/10/2017, Shopper Tracker Convenience 2017 Path to purchase).

The secondary placement is a good idea in order to remind people who are not walking to the fridge of what is on offer. The second display can be ambient, but a secondary fridge near the checkout will drive the impulse buy even more.

Having worked so hard to earn its spot as king of convenience store fridges, there is no way that energy drinks are going to easily surrender sales to any of a host of young pretenders. With the continued efforts from manufacturers and strong in-store support and clever management, the sales phenomenon that is energy drinks shows no sign of running out of energy any time soon. C&I Convenience and Impulse Retailing would like to thank Red Bull, Frucor, IRI Shopper Tracker and Euromonitor International for supplying information for this article.

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SUGAR-FREE

SUGAR-FREE CONFECTIONERY

Are alternatives to sugar taking over the market? Or are they just a fad to scare health conscious consumers?

There are two types of sugar alternatives: non-nutritive sweeteners which are artificial, and nutritive sweeteners which are made from plants.”

S

uggesting that a sugar-hit can get you through the day, or provide some new taste sensation is a very simple and enticing way to advertise.

Up until the mid-1970s, sugar was being advertised as a useful food for losing weight and in the preceding years, Australia established itself as a contender for the highest, global obesity rates. In 2016, the World Health Organisation produced data from 2014, stating that Australia was the 13th most obese country in the world, with 69.9% of people aged over 15-years old, being obese.

SUGAR ALTERNATIVE There are two types of sugar alternatives: non-nutritive sweeteners which are artificial, and nutritive sweeteners which are made from plants.

The appeal of sugar alternatives is that they cater to consumer demand and the market for sugar-free alternatives is steadily growing.

All-Fect Distributors’ Arnaz Ardi said All-Fect's products attract consumers who opt to go sugar-free as a lifestyle decision.

There is also evidence that as Australia learns of the continued negative effects on health caused by a high sugar intake, that the levels of sugar consumed, have seen a decline.

“The absence of sugar alone in a product is good enough to attract consumers,” he said.

So, what is the alternative? Sugar-free confectionary, sweetened by artificial sweeteners.

The challenge he said, is how to formulate it into good tasting products at a reasonable price.

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SUGAR-FREE While it is still seen as a niche product, the market for sugar-free alternatives is growing.

As it meets a different need to sugar confectionery, sugar-free confectionery is a particularly convenience-friendly option to stock.

Ferndale also produce sugar-free confectionery and have been doing so for 22 years.

According to the Australasian Association of Convenience Stores (AACS) State of the Industry Report 2016, sugar-free new product developments (NPD) will exert a greater influence on the segment as suppliers continue to embrace and make use of natural sweeteners.

Ferndale general manager Leigh Edward said the company was focussed on building a new segment in the confectionery market by offering consumers high-quality products to be enjoyed without health or guilt concerns.

“Understanding that consumers wanted healthier confectionery options, which were also convenient and portable, suitable for pockets and handbags, was fundamental in our brands quickly achieving strong consumer acceptance and popularity which continues to this day,” he said.

Mr Ardi suggested that while sugar-free confectione ry is a niche market, it is still growing and this should be used to a retailer’s advantage.

Understanding that consumers wanted healthier confectionery options, which were also convenient and portable, suitable for pockets and handbags, was fundamental.”

Mr Edward said the company’s primary objective has always been to offer consumers superior, consistent, quality goods, offering exceptional value for money.

HEALTH AWARE A reduction in sugar consumption can have many benefits to an individual. As consumers become aware of the negative impacts of a high-sugar diet, concerns about health, weight control and tooth decay can lead them towards sugar-free options.

Mr Edward noted that sugar-free confectionery is also a suitable product for diabetics.

“Nutritionists were involved in the formulation of Ferndale’s products and advised the importance of sugar-free and fat-free products for diabetics,” he said.

Dietician Joel Feren said artificial and natural sweeteners such as Stevia, didn’t have any kilojoules so they wouldn’t affect blood sugar, making it a much healthier option than sugar.

“It’s what we call a non-nutritive sweetener. So that means it doesn’t have any kilojoules or any carbohydrates,” he told Bodyandsoul.com.au.

“A lot of the studies have shown that these foods and drinks sweetened with non-nutritive sweeteners instead of sugar actually do result in weight loss,” he said.

“Based on my research, it’s certainly safe for most people to consume Stevia and it’s actually more tooth friendly than sugar, which is an important consideration after looking at the rates of tooth decay in Australia.”

FITTING INTO THE MARKET Sugar-free products are generally manufactured and packaged in convenient packs, and target consumers who are purchasing on-the-go.

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SUGAR-FREE

“Ideally, it should be displayed in its own section, displayed with a clear message and signage that it is sugar-free highlighting both its features and benefits,” he said.

A sugarsweetened beverages (SSB) tax will encourage people to shift to a healthier diet by reducing their consumption of sugary beverages, and shifting to untaxed healthier substitutes.

It might also incentivise industry to reformulate to reduce the sugar content of SSB products,”

Mr Edward said sugar-free brands represent important sales opportunities within the petrol and convenience industry. “[It] provides an impulse purchase option for a large number of health conscious customers not interested in traditional confectionery lines,” he said.

“Ferndale has numerous case studies which clearly demonstrate that the sales of its sugar-free range from the cash register are entirely incremental, as purchases made by customers who otherwise would have purchased nothing.”

Ferndale found that sugar-free products are usually purchased by “health conscious females” aged 15-39 years old. However, as consumer preferences change the company is trying to reach a new audience.

Mr Edward said sales figures dictate sugar-free products are well displayed and stores should continue to embrace sugar-free innovation.

“Like all confectionery, sugar-free confectionery is highly impulsive and therefore shelf position is critical,” he said.

“If people can’t see it, they won’t buy it.”

SICKLY SWEET Despite the fact that recent studies conducted at the George Washington University suggest that low-calorie sweeteners may actually be more detrimental to obese individuals, the shift away from sugar is still strong.

New research has been released that suggested the sugar alternativethe low-calorie sweetener might be doing more harm than good.

George Washington University Associate Professor of Medicine Sabyasachi Sen, Doctor of Medicine (M.D) said that many

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health-conscious people consume low-calories sweeteners as an alternative to sugar.

“We believe that low-calorie sweeteners promote additional fat formation by allowing more glucose to enter the cells, and promotes inflammation, which may be more detrimental in obese individuals,” he said.

Mr Sen and his colleagues tested sucralose, a low-calorie sweetener, on stem cells to observe their reaction.

A 0.2 millimolar dose was added to the human fat tissue stem cells, revealing an increased expression of genes that were the markers for fat production and inflammation.

The University of Sydney’s Professor Colagiuri said he strongly supported a sugar tax.

“A sugar-sweetened beverages (SSB) tax will encourage people to shift to a healthier diet by reducing their consumption of sugary beverages, and shifting to untaxed healthier substitutes.

It might also incentivise industry to reformulate to reduce the sugar content of SSB products,” he said.

Despite this, Mr Edward said sugar-free confectionery sales will continue to grow as the focus on obesity and ‘better for you’ options remain at the forefront of health concerns.

“Australia is traditionally three-to-four years behind the European market in terms of trends – currently sugar-free confectionery is booming in Europe, especially non-traditional impulse lines such as Sugar-Free Pastilles,” he said.

“Whilst already having been universally accepted across Australia, the category is yet to ‘boom’ or be as dominant as its sugar laden counterparts, however, it is only a matter of time.

“The retailers that adapt to this trend the quickest will ultimately see the greatest rewards.”C&I C&I would like to thank All-Fect Distributor's and Ferndale for their contributoons to this article.

NON-DAIRY MILK

MILKING THE MOMENT Is the era of dairy-free drinks upon us?

T

he dramatic growth in the popularity of non-dairy milk in recent years is forcing convenience and impulse outlets to really sit up and take notice.

While alternatives such as soy milk and almond milk may not threaten the fridge dominance of traditional fresh milk any time soon, the figures are nonetheless startling. According to recent Nielsen Scan Data, dairy free milk has seen growth of more than 150% in the past five years and all the forecasts suggest this upward trend will continue.

The relative nutritional qualities of the various ‘milks’ may be a matter of some debate, and dairy farmers may argue that dairy-free milks are not technically milks at all, but what cannot be disputed is that there has been an extremely steep rise in demand for them.

Many consumers are attracted to dairy-free milks by the perceived health benefits. Most alternative milks are lower in energy, or kilojoules, and can contain a lot less fat than cow’s milk. However, a lot are also considerably lower in protein and calcium, and some are therefore fortified with key nutrients.

OPPORTUNITY IN CONVENIENCE For convenience and impulse retail operators who are still coming to terms with the impact of supermarkets slashing milk prices a few years ago, the rise of dairy-free milk does offer some encouragement. Firstly, it has the benefit of higher margins than fresh milk, and the products also have a significantly longer shelf life making them easier to manage.

While many supermarkets now stock a significant range of plantbased milks – including soy, almond, coconut, hazelnut, rice, oat, and macadamia milk – most convenience stores are yet to properly embrace the opportunity. While shelf space and fridge space will always be a huge consideration for the convenience and impulse operators, the trend both in Australia and globally suggests that it 28

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NON-DAIRY MILK would be a mistake not to more enthusiastically seek to maximise the category’s potential.

Dairy-free milk producers say the most important thing that C-stores can do to capitalise on the growth is to simply improve ranging of dairy-free milk products and to better alert shoppers to the offer.

In Australia, companies like Australia’s Own Organic which is part of the Freedom Foods Group of brands that specialises in food focused on health and nutrition have been enjoying enormous success in this space. Leading the way is its Almond Milk product which contains organic almonds with the benefits of no added cane sugar, no gluten and no lactose. It is available in a 1-litre carton and in 250ml cartons in a three-pack. The company also sells unsweetened almond milk, a coconut almond milk blend, rice milk, and unsweetened soy milk.

Similarly, Sanitarium has been seeing sales of its dairy-free milk under the So Good brand soar. Its So Good soy milk products are available in the long life milk aisle of supermarkets and come in a range of regular, light and flavoured variants. Other big sellers are So Good Coconut Milk Unsweetened which is made from coconut cream, and So Good Almond & Coconut Milk which is made from almonds and coconut cream and is low in fat and saturated fat. The brand has also introduced a range of flavour variants to add interest to the category, and these include Almond Milk Dark Chocolate Flavoured, Almond Vanilla Coconut, and Almond Milk Date & Caramel Flavoured, all of which come in 375ml packaging.

AT A GLANCE • Convenience can lift sales of dairy-free milk by improving ranging.

• Key consumers of non-dairy milks include health-conscious people, those who avoid dairy products due to ethical or environmental concerns, those with lactose intolerance, and those with a milk allergy.

• The most effective way for convenience stores to lift sales of dairy-free milks is to display them next to, and with, fresh dairy milk in the dairy cabinets.

• Euromonitor International sows that milk alternatives, largely driven by almond milk, have seen growth of 6% in 2017… and are expected to continue to grow at a 5% compound annual growth rate (CAGR) until 2022.

While Sanitarium’s So Good Almond Milk has been selling exceptionally well, the fact that it has mainly been doing so through supermarkets indicates the enormous potential dairy-free drinks still have through other channels. Nielsen Scan data shows that So Good Almond Milk has seen growth of more than 40% in grocery, but remains a largely untapped opportunity in convenience.

MARKETING THE MILK The most effective way for convenience stores to lift sales of dairyfree milk is to display them next to, and with, fresh cow’s milk in the dairy cabinets.

Non-dairy drinks are bought by a range of consumers, including those convinced by the better-for-you message, and those who choose to avoid dairy products due to ethical or environmental concerns.

According to data from market researcher, Euromonitor International, Australia is now the third-fastest growing vegan market in the world.

There is also an increased demand from those who do not want to commit to a full vegan or even vegetarian lifestyle, but would rather pick and choose to suit their lifestyle, social life or health conditions.

A growing number of consumers identify themselves as flexitarian or lessitarian, meaning that they’ve cut back on their consumption of animal-based foods and beverages.

There are also those who have a lactose intolerance and therefore struggle to digest lactose, a type of sugar found in dairy milk. Other people may have a milk allergy so they experience an immune reaction to the proteins in dairy milk.

The rise of dairy-free milk then can be attributed to a number of factors. The market research company Innova Insights says that, across the globe, half of recently launched dairy alternatives were positioned as lactose-free, nearly 40% as vegan, and just under a quarter as Genetically Modified Organism (GMO) free.

The most effective way for convenience stores to lift sales of dairy-free milk is to display them next to, and with, fresh cow’s milk in the dairy cabinets.”

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NON-DAIRY MILK

Leading dairy-free milks SOY MILK

Contains more protein than most dairy free milks. Most soy milk brands are also fortified with similar levels of calcium to dairy milk. Some also contain vitamins D, B2 and B12.

ALMOND MILK

Lower in kilojoules than dairy milk, and also low in saturated fat. It has lower amounts of protein than soy and not all brands contain similar levels of calcium to dairy milk. Varieties with no added sugar are also available.

COCONUT MILK

Has higher amounts of saturated fat (from the coconut) and compared to many other dairy free milks, is lower in calcium and protein.

RICE MILK

Most brands are fortified with calcium. Rice milk is low in saturated fat, but also low in protein. It also tends to have a high level of natural sugar, almost double that of soy milk.

OAT MILK

Low in saturated fat but it also has lower protein. Not all oat milks are calciumfortified and may not be suitable for those sensitive to gluten.

Consumers are demanding almonds and other nuts as a healthy protein snacking option, which has had flow-on effects to demand for nut based milks like almond milk.”

“The dairy alternatives market has seen rising levels of interest in recent years, spurred mainly by consumers increasingly looking for lactose-free, dairy-free and plant-based/vegan options as healthy lifestyle choices, rather than regarding them as simply for those with allergies or intolerances,” said Lu Ann Williams, Director of Innovation at Innova Market Insights. “The category has been further boosted by the growing availability and promotion of plantbased options to traditional dairy lines...particularly beverages.”

Alice Yu, a research analyst at Euromonitor International, agrees that the driving force behind the trend is not hard to see.

“This has really been driven by consumers looking to reduce animal fats in their diets,” she said.

“In addition, consumers are demanding almonds and other nuts as a healthy protein snacking option, which has had flow-on effects to demand for nut-based milks like almond milk.”

While the base of dairy-free milk consumers is constantly expanding, Nielsen Homescan data indicates the segment currently skews slightly toward health-conscious females. The data also reveals that around one third of Australian households have at least two types of milks in their fridge. This ties in with recent research carried out in America by Mintel last year which suggests that it isn’t necessarily an ‘either or’ situation when it comes to dairy milk and dairy-free milk.

“Our research reveals that nearly all non-dairy milk drinkers also drink dairy milk,” said Elizabeth Sisel, Beverage Analyst at Mintel.

“Revealing that consumers are turning to non-dairy out of preference as opposed to necessity.”

America is, of course, a very different market to Australia but the trends there do contain lessons and perhaps indicators of what the future here might hold. According to Dairy Australia figures, the average Australian still consumes around 105 litres of fresh milk per year, one of the highest rates in the western world. In the United States there has been a far sharper decline in traditional milk and Mintel research shows that 49% of

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Americans do, on occasion, consume non-dairy milk, including 68% of parents and 54% of children under age 18.

And, according to just released data from market research firm, Packaged Facts, plant-based dairy alternatives will come to represent 40% of the combined total of dairy and dairy alternative beverages in the US in 2022, up from 25% in 2016.

The firm said that, in recent years, the plant-based dairy beverage alternatives category in the United States has seen an expansion of several nut- and legume-based milk alternatives beyond soy, rice, coconut, and almond to include varieties made from cashews, hazelnuts, macadamias, peanuts, pecans, and tiger nuts.

In addition, there are non-dairy milks being offered made from bananas, cassava, oats, and potatoes, among others.

While there is a long way to go to reach the sort of penetration seen in the United States, all the indications are that demand for, and sales of, non-dairy milks will continue to grow here in Australia, as well. According to research from Euromonitor International, the retail value of Milk Alternatives in Australia at current prices was $173.3 million back in 2012 and this had soared to $276.2 million by this year. The company forecasts that, at constant 2017 prices, the retail value of the category will have risen again to $315.8 million by 2022.

“Although fresh cow’s milk is still the largest in terms of actual sales,” said Alice Yu from Euromonitor International. “Other milk alternatives, largely driven by almond milk, have seen the strongest value growth of 6% in 2017 to reach AUD$276 million … and are expected to continue to grow at a 5% compound annual growth rate (CAGR) until 2022.”

Fresh dairy milk then has been at the heart of Australian convenience stores’ profitability and personality for many, many decades. While it may not be about to be pushed out of the convenience store milk fridge any time soon, the rapid rise of a variety of dairy-free alternatives suggests that dairy may at least have to get used to the idea of having some very interesting company. C&I * Convenience & Impulse Retailing magazine would like to thank Sanitarium and Euromonitor International for supplying information for this article.

KOMBUCHA

KOMBUCHA? YOU BETCHA! Kombucha is the newest ‘health’ drink being offered to consumers, so what is it about this fermented beverage that has caught the attention of so many?

I spend a lot of time in America and it’s definitely much bigger there already. It was started by the cafes and the hipsters but it is going mainstream.

There’s a big trend in looking backwards in order to find the way forward.”

K

ombucha isn’t new, in fact it’s an ancient, fermented, tea-based drink that originated in China and is ofte alcohol and the bacteria in the drink, converts the alcohol to organic acids. What’s left is the sour drink with a hint of vinegar; depending on the flavour, the vinegar can be a welcome and refreshing taste.

“We started making kombucha at home many years ago as part of a wider obsession with crafting and nurturing a whole range of fermented food and drinks for ourselves and our kids,” he said.

Due to its recent spike in popularity, there are many Australian brands that have begun to make and distribute their kombucha products.

“Around this time, we found ourselves increasingly frustrated with the food industry and the number of misleading so-called ‘healthy’ products on shelves. Rather than focus on the negative, we decided to pour that energy into good, and make something that was truly natural and good for you.”

OK Kombucha co-founder Trent Butler said he found kombucha to be an interesting space.

“I spend a lot of time in America and it’s definitely much bigger there already. It was started by the cafes and the hipsters but it is going mainstream,” he said.

“There’s a big trend in looking backwards in order to find the way forward.”

Remedy Kombucha co-founder Emmet Condon said he, along with his co-founder Sarah, started making kombucha at their home.

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“We loved how they tasted and how they made us feel.

A HEALTH PHENOMENON In a poll run by Choice.com.au, 79% of voters said that they drank kombucha for the health benefits. A Choice community member commented that it is appealing for its “sherbet-y taste” and probiotics.

Kombucha’s live culture of bacteria and yeast can act as a probiotic offering health benefits including improved digestion function, protection against some diseases and strengthening the immune system and its function.

KOMBUCHA Scoby, is the acronym for ‘symbiotic culture of bacteria and yeast’. A scoby is the living conglomerate of bacteria and yeast that transforms the tea and sugar combination into the final kombucha product. It sits on the top of the liquid and seals it off from air while it ferments.

CSIRO senior research scientist Dr Michael Conlon specialises in diet and gut health. He told Choice.com.au: “The health potential of probiotics more generally can vary depending on the number and type of microbes, what you consume them with, and the composition of your own gut microflora. It’s likely the number of microbes in kombucha would be much lower than what you might see in a commercial probiotic product.”

“Fermentation generates certain types of acid and other bioactive compounds that can be beneficial, but whether they get through to the large bowel so that a benefit can be gained is unknown,” he said.

Mr Condon said there is a broad target market of both existing and potential customers.

“Remedy drinkers include both men and women, aged from around 18 to 60, although there are also plenty of fans in age brackets either side of this, too,” he said.

think that a lot of disease can be linked back to how heathy your gut flora is.

“The people who discovered it feel a difference when they have it, it’s not just a gimmick these beverages really do make you healthier,” he said.

“We’re all about health drinks; it’s about things that can promote health for you.”

MARKET TO THE MARKET Due to its appeal across all age groups, kombucha is a drink that is ideal for retailers to stock in convenience stores.

Mr Condon said kombucha has no age restrictions.

Like water, all age groups should and can drink Remedy, We see a lot of parents buying Remedy Kombucha for children as a healthy alternative to sugary soft drinks.”

“Like water, all age groups should and can drink Remedy,” he said.

“We see a lot of parents buying Remedy Kombucha for children as a healthy alternative to sugary soft drinks.”

For merchandising and marketing purposes, Mr Condon recommends the beverage be placed alongside other healthy food products.

“The consumer is the same customer who will select a wrap or salad or other healthy food option.” he said.

“They are generally middle to high income earners who are health conscious and care about what they put into their body, but they still like to enjoy a tasty beverage.”

“Trial is the key to recruiting new drinks, once people taste it they are convinced.”

Mr Butler said: “I read a study that said 90% of all illness can be traced back to your gut. That’s a pretty big statistic when you

According to Mr Condon, another important factor is: “Driving awareness of the health benefits of kombucha.”

Remedy's Co-Founders Emmet and Sarah Condon December 2017/ January 2018 | C&I | www.c-store.com.au 33

YOUR DAILY

ESSENTIAL GOODNESS 2.5

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LE AT A

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Each 350mL bottle contains the equivalent of at least 2.5 serves of fruit and 25% of your daily requirement of Vitamin C and Fibre.

Furthermore, Supa Essentials is made from ‘super ingredients’ such as kale, spinach, coconut water, cherry, lemongrass and ginger!

Nourish your body as well as your taste buds with the essential goodness of Supa Essentials!

To place an order or for further information, please contact Tru Blu Beverages on (02) 9912 6700.

KOMBUCHA new found love on social media, it seems obvious that kombucha has not even hit its peak.”

Mr Butler said it was his job to track and understand trends in health and nutrition, and that OK Kombucha are experts in shelf stable products.

“Traditionally kombucha has been relegated to the fridge, but that is changing,” he said.

“What we’re seeing with the big players in America, is the move from refrigerated kombucha to kombucha that is sold ambient.

“The probiotics in kombucha are actually much healthier at a room temperature than they are when they’re refrigerated.

“We’re going to see more and more shelf stable kombucha but there’s a bit of understanding and education to go with it. In Australia we’re going to see a lot of shelf stable kombucha pop up.

“It makes it easier for convenience stores to have their deliveries arrive ambient in cartons.”

According to Kombuchabrewers.org the industry is thriving and is showing no signs of slowing down.

There are whole large fridges dedicated to kombucha in some US supermarkets, like what you see for milk here [in Australia], and it’s even available in Target”

Remedy Kombucha has an offering for the convenience sector which includes 250ml cans at a lower price point to encourage consumers to trial the product, as well as 330ml glass bottles.

Mr Butler said: “The way I think it’s going to go mainstream is through actually being a health alternative to soft drink by actually mimicking the flavour profiles to a large extent of the “traditional” soft drink. We have a cola flavour that tastes a lot like the red label stuff.

“Especially for convenience stores, it’s about making it easier for people to transition to health,” he said.

KOMBUCHA FUTURE According to a report published by Zion Market Research in June 2017, the global kombucha market was valued at around $1062 billion USD in 2016 and is expected to reach a value of $2457 billion USD by 2022.

Mr Condon said: “You only need to look at the kombucha market in the US as a guide, where kombucha is the fastest growing market in the functional beverages category.”

“There are whole large fridges dedicated to kombucha in some US supermarkets, like what you see for milk here [in Australia], and it’s even available in Target.”

Remedy Kombucha is currently ranged in a number of convenience stores and continues to roll out its product to other branded convenience stores.

Mr Butler said: “As consumers continue to vote with their dollars for products that support a healthy organism, and share their

36 December 2017/ January 2018 | C&I | www.c-store.com.au

“With continued 30% growth in the natural channel and 50% growth (or more) in the conventional channel year after year, kombucha is the fastest growing functional beverage category,” the site said. C&I C&I would like to thank Trent Butler and Emmet and Sarah Condon for theor contributions.

Ok Kombucha from Liquefy

PRODUCT NEWS

Yogurt on the go Safai’cse •

o • Ch

When anyone mentions yogurt my mind immediately thinks of Australia’s No 1, Greek Style Farmers Union Natural Yogurt. My family has been buying this brand for over 20 years, usually two or three 500g tubs at a time!

Now Farmers Union has harnessed the goodness of what they do best and simplified it to create the perfect on-the-go yogurt snack in a convenient, portable, easy to eat resealable pouch. A great healthy snack that is good for you, has no artificial colours or flavours, no artificial sweeteners and all the goodness of calcium.

This is the snack yogurt lovers have been waiting for.

My family is just one of millions across Australia that enjoys the simple delicious goodness of Farmers Union Greek Yogurt. I’ve been scooping it into small containers for years to carry to work as a snack, but now they’re doing it for me. With on-the-go pouches, consumers can say goodbye to spoons and plastic containers, and hello to convenience.

These resealable 130g pouches are a game changer for on-the-go snacking.

Farmers Union are giving us four delicious flavours to be eaten anywhere.

They come with a hint of honey, a hint of vanilla, a hint of coconut, or the

original plain Greek yogurt. Enjoy them at your desk, on the way to work, on the way to the gym. And let’s not forget the kids! These are the healthy dairy snack option. With no artificial colours, flavours, or sweeteners there’s no need to feel guilty about the kids tucking into these delicious, wholesome yogurt treats.

These beauties have a RRP between $2.25 and $2.50. To get them into your fridges and into the hands of your customers visit the Farmers Union website to find out more. www.farmersunionyogurt.com.au

KITKAT Mint 2 Ways and KITKAT Caramel Pretzel 2 Ways.

Two exciting ways to enjoy one delicious flavour Chocolate lovers are in for a treat with the launch of the new KITKAT Mint 2 Ways and KITKAT Caramel Pretzel 2 Ways.

The new KITKAT provides an exciting twist on the always popular mint and caramel, allowing consumers to enjoy their favourite flavour in two different ways.

KITKAT Caramel Pretzel 2 Ways: Sweet or salty? Now you can have both.

Each finger features a delicious baked pretzel wafer. On one side of the finger you can experience a salty caramel pretzel flavour, while on the other, enjoy a sweet caramel pretzel flavour. KITKAT Caramel Pretzel 2 ways will 38 December 2017/ January 2018 | C&I | www.c-store.com.au

be sold in a share bar format 65g (RRP $2.49) focused on distribution in the convenience and impulse channel.

KITKAT Mint 2 Ways: Offering two distinct mint flavour experiences, one side of the finger offers a crisp mint, while the other side provides a delicious smooth mint. KITKAT Mint 2 Ways will come in a medium bar 45g (RRP $1.99).

To support the launch, KITKAT is spending $16.3M* in marketing investment in 2018 in digital, out of home and TV advertising (*Rate Card).

KITKAT 2 Ways will be available in store from January 2018.

PRODUCT NEWS

iPhone X: most expensive Apple phone is also easiest to break The long anticipated iPhone X, “the future of smartphone” has just been released and sold out within just two hours of its launch! This Apple tenthanniversary iPhone looks classy and super slick with a near bezel-less screen, and can probably handle your everyday wear and tear but dropping it without a case is not ideal!

The all glass design may look sleek but it’s a fingerprint magnet and cracks on the first drop. Consumer electronics site CNET ran a drop test from a height of three feet, the glass at the corner of the phone cracked on the very first test, which dropped the phone on its side. A second test dropped the phone on its face, leading to even more fractures. CNET concluded that dropping the phone without a case is “out of the question”.

Adding to fragility concerns, the iPhone X’s OLED screen is more expensive to replace than the LCD screens on other iPhones.

Getting a case is definitely a must for all iPhone X users. The ESONIC premium embossed litchi series iPhone X case is the antidote to life’s inevitable phone-destroying challenges of the new glass and stainless steel iPhone.

This case is specifically made to overcome all the concerns of an iPhone X user. The scratch and fingerprint resistance means you can place your phone anywhere without worrying about it being scratched on hard surfaces. Shock and drop resistant is a must to address the biggest issue for iPhone X. The comfort grip helps by making sure you don’t drop your phone as often. This all includes a two year warranty for an amazingly low RRP of $19.90.

HL Display – The better shopping experience We help our customers around the world to create attractive and profitable in-store environments that strengthen the consumer’s shopping experience.

Present in 50 countries, we provide retailers and brands with merchandising and communication solutions that drive sales, save labour costs, create differentiation and reduce waste.

It all started in 1954 when the travelling salesman Harry Lundvall saw a problem. Products were badly displayed and there were no prices in stores. This was during the time when groceries were evolving into self-service. So, Harry took matters into his own hands. Armed with an iron and sheer enthusiasm, he started manufacturing label holders and merchandising stands in his basement.

Today our solutions are installed in 265,000 stores. Our near global reach and world class manufacturing capabilities enable us to deliver on both very local needs as well as large scale roll-outs. We lead the development in innovative and sustainable solutions, creating a better shopping experience for people all over the world.

Convenience retail has a high demand for innovative, proven solutions that HL is ideally suited to support. Take, for example, our Roller Track CONTACT US TODAY: System™ which is a universally accepted solution HL Display Aust. Pty. Ltd. for shelf merchandising in the beverage category.

432/14 Lexington Drive Bella Vista It offers a range of benefits from increased sales to NSW 2153 reduced labour costs to maximise profitability within +61 2 8883 1157 the category.

Louis George +61 425 467 774 Already installed in a number of stores across Tony Hall +61 408 855 567 Australia why not make an enquiry about how it can adminanz@hl-display.com benefit yours.

December 2017/ January 2018 | C&I | www.c-store.com.au 39

PRODUCT NEWS

Lion delivers healthy snacking to convenience Healthier categories are #1 for driving spend in store within Convenience outlets, and this has increased by 12% in just two years*.

Lion Dairy & Drinks is on a mission to make it easier for consumers to make healthier choices for themselves and their families. It is what Lion calls ‘Our Goodness Promise’. Nine out of 10 Australians don’t get their recommended daily intake of dairy[1] and more than 80% are not getting their recommended daily serves of fruit[2].

Lion Dairy & Drinks Marketing and Innovation Director Darryn Wallace said: “We hear this need from our consumers and our mission is to provide options to help them balance what they eat and drink.”

“We also want to provide more information about the products they are consuming. It is particularly challenging for consumers seeking healthy on-thego snacking options within the Convenience channel, with 65% saying they aren’t satisfied with the current snacking options available and 35% saying that by improving the snacks available they’d buy more often[3],” he said.

To deliver on this consumer promise Lion is launching two healthy on-thego snacking solutions Farmers Union 130gram yogurt pouches, and a range of specialty juice and drinks products. Real wholesome and rejuvenating blends are healthy flavours blended with surprising fruits, vegetables, herbs and spices.

Lion Dairy & Drinks Impulse Customer Director Felicity Needham said: “The specialty juice segment is exploding with 25% growth vs last year within grocery[4], meaning consumers are actively seeking these products in-store.”

40

December 2017/ January 2018 | C&I | www.c-store.com.au

“With 60 days shelf life and an easy on-the-go convenient 300ml size, Real Wholesome & Rejuvenating Blends offer retailers the opportunity to trade up existing shoppers into a more profitable sub-category, whilst driving incremental sales for their stores,” she said.

To deliver on the emerging snacking occasions Lion Dairy & Drinks is launching Australia’s No 1 grocery Greek Style yoghurt[5] brand, Farmers Union into a convenient, portable, on-the-go resealable 130g pouch.

“Our blockbuster brand Farmers Union will soon be available in a convenient 130g pouch format. With no artificial colours or flavours, no artificial sweeteners and the goodness of calcium this wholesome, nutritious snack is what yogurt lovers have been waiting for,” Mr Wallace said.

“Both products will be supported with an integrated trade and retail marketing campaign featuring digital and sampling to build awareness and drive trial.”

Real Wholesome & Rejuvenating Blends are available now, and Farmers Union pouches are available to order from 18 December. For more information contact your Lion representative or call 1800 000 570.

Sources; * Field Agent, Petrol & Convenience Food & Snacking Options, June 2017 [1]ABS; 2016. Australian Health Survey: Consumption of Food Groups from the Australian Dietary Guidelines, 2011-12. Cat 4364.0.55.012. Available: http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/4364.0.55.012main+features12011-12 [2] Hendrie, GA et al (2015). Consumption of fruit juice in the Australian population. A secondary analysis of the Australian National Nutrition and Physical Activity Survey 2011-12. CSIRO, Australia [3] Field Agent, Petrol & Convenience Food & Snacking Options, June 2017 [4] Aztec Scan 6m to 14/5/17 vs YA $ Value Growth MAT 4/6/17 [5] Source: IRI, AU Grocery Scan; Total Yogurt, Dollars, MAT to 22/10/17

Coming Soon!

To mark this special occasion, the 2018 April/May edition will be packed with highlights from the past 30 years.

INDUSTRY NEWS

INTERCONTINENTAL TOBACCO ADVERTORIAL Ramine Roshank, Founder and CEO

An insight into the family business of InterContinental Tobacco and how they are working to make purchasing and sales easier for customers.

I

nterContinental Tobacco Pty Ltd (ICT) is a family run business based in Sydney. The owners have been involved in the sale of tobacco products throughout Australia for the past 15 years.

ICT understands what it means to be a part of a family business, working on the same level as other family and small business owners. Successfully making their way into the convenience retail market, ICT offers a competitive range of tobacco products. With ambitious plans to revolutionize the market, they have produced their own branded tobacco products that deliver on quality, taste, consumer value and higher retailer profit margins compared to their competitors.

Since the introduction of plain packaging back in December 2012, the Australian tobacco industry has seen dramatic changes for consumers, retailers and the major tobacco companies. Brands can no longer rely on their branding to maintain market share and the category has become an even playing field as a result. As premium packs lose dominance, sub-value products are gaining a foothold. Being an independent small business, ICT is agile and moving quickly to respond to the market.

Data shows that on average 53% of the time, tobacco is one of the main reasons why consumers visit a convenience retail store.

The Australian government raises taxes on the category every year, and has announced they will continue to do so for the next four years. With these compulsory price hikes and plain packaging, it has created a climate ripe for disruption.

ICT has listened intently to the market over the years and are ready to address the problems retailers face head on. A lot of the issues stem from government regulations and strict laws that govern the production and 42

December 2017/ January 2018 | C&I | www.c-store.com.au

distribution of tobacco products. ICT’s offer provides convenience store owners with the opportunity to take back control.

Taking a holistic approach, ICT has engineered a fresh, new offer that ticks all the boxes.

• Cost efficient: Reliable and consistent every day low pricing.

• Top quality: All products use high-quality Virginia blend tobacco.

• Compliant: Strict quality control process whereby all products, including packaging, are checked and approved by solicitors before each production run.

• Reduced risk: Low, 5-carton minimum order with free shipping.

• Fast service: Orders delivered direct from warehouse to store within 24 hrs.

• Convenience: Order over the phone or 24/7 online.

• Support: Sales and marketing team provide ongoing support for the retailers.

All ICT products use high-quality Virginia blend tobacco and are comparable to the quality of premium products that are currently in the marketplace.

Unlike other well-known competitors, ICT is able to genuinely relate to the convenience market. They understand the challenges that lie ahead and have rolled up their sleeves to help small businesses succeed. They may be new, but they’re here for the long run.

To start stocking Top Smoke and Wild Spirit Shift, visit www.ictorders.com.au 1300 859 962

NEW Simple, 

wholesome nutritious Greek Style yogurt

Perfect 

on–the-go snack

Drives NEW  occasions

™

#1

Distinctive 

Greek Style taste

Farmers Union Greek Style 1kg is the #1 selling yogurt SKU in grocery*.

22%

Wholesome and nutritious Farmers Union Greek Style Yogurt is now available in pouches. Also available in Hint of Honey, Hint of Vanilla and Hint of Coconut flavours. A delicious and nutritious snack that is perfect for on-the-go.

We are in growth in grocery! Farmers Union continue to grow year on year.

We are up 22% vs. YAGO#.

*Source: IRI AU Grocery Scan; Total Yogurt, Dollars, MAT to 22/10/17.

#Source: IRI AU Grocery Scan; Units (000) growth % YA; MAT 22/10/17.

YOGURT WITH A HINT OF REAL COCONUT

ALL NATURAL YOGURT

YOGURT WITH A HINT OF REAL VANILLA BEAN

YOGURT WITH A HINT OF REAL HONEY

Product Code: 8557

Product Code: 8561 Pack size: 130g Units per ctn: 12

Product Code: 8560

Product Code: 8558

Pack size: 130g Units per ctn: 12

Pack size: 130g Units per ctn: 12

Pack size: 130g Units per ctn: 12

Available Now!

Introducing

a

beverage range Our Real Wholesome and Rejuvenating blends are great tasting and healthy flavours blending surprising fruits, vegetables, herbs and spices – it’s a perfect dose of real goodness.

Why range Real?

Attract new consumers to the growing impulse juice category.

Consumers are seeking healthy on-the-go products, 65% aren’t satisfied with the current snacking options1.

Premiumise existing shoppers into a more profitable sub category.

Drive incremental spend within your store.

REAL CUCUMBER

60 days shelf life.

Product Code 7800

25%

The impulse juice and drinks sub category is driving overall value growth at 25% MAT & 10% volume growth, meaning volume consumers are actively seeking these products in-store.2

$ growth

No artificial colours, flavours, or preservatives.

Source: Field Agent, Petrol & Convenience Food & Snacking Options, June.

2 Source: IRI Grocery Scan, Total Juice and Drinks, Dollars vs. YA 05/17.

1

Pack size 300mL

Units per ctn 8

Pack size 300mL

Units per ctn 8

Product Code 8318

Units per ctn 8

Product Code 8317

Pack size 300mL

Pack size 300mL (8)

Units per ctn 8

REAL APPLE CUCUMBER

REAL RED CAPSICUM Product Code 7803

No artificial colours, flavours, preservatives or concentrates.

REAL ACTIVATED CHARCOAL

REAL BROCCOLI Product Code 7804

No added sugar.

Pack size 300mL

Units per ctn 8

To order Farmer Union Pouches or Real Blends today contact your Lion representative or call 1800 000 570 www.realblend.com.au

@realblend

www.farmersunionyogurt.com.au

farmersuniongreekyogurt

PRODUCT NEWS

Supa Essentials filled with essential super goodness According to Mintel’s Global Food & Drink Trends Report for 2017, aspiration for healthier and cleaner lifestyles is motivating consumers to prioritise fruits, vegetables, nuts, seeds, grains and botanicals in their diets.

As a result, plant-based foods and beverages have gained momentum in the last few years.

On the other hand, sales of traditional fruit juices and drinks have declined, partly due to their fruit sugar content, but also because of their perceived low nutritional value. In their place has been the growth of premium fruit and vegetable juices/drinks containing super foods such as berries, coconut water, kale, spinach, ginger and many other unique and exotic ingredients. Furthermore, these juices are focused on providing the consumer with essential vitamins and minerals which can assist with their daily intake of these e.g. Fibre, Protein, Vitamins C etc.

With this is mind, Tru Blu Beverages is proud to announce the launch of an exciting range of premium juices called ‘Supa Essentials’.

Made from 99% fruit juice and all natural ingredients, as its name suggests, Supa Essentials is juice filled with essential super goodness! Each 350mL bottle contains the equivalent of at least 2.5 serves of fruit and 25% of the daily requirement of Vitamin C and Fibre.

Vitamin C is sourced from the camu camu berry – a super fruit from the Amazon jungle with one of the highest Vitamin C contents of any fruit! Fibre is sourced from acacia – a plant from northern Africa famous for its high fibre

44

December 2017/ January 2018 | C&I | www.c-store.com.au

content. Furthermore, Supa Essentials contain super foods such as kale, spinach, coconut water, cherry, lemongrass and ginger.

Supa Essentials come in six mouth-watering flavours, each with its own specific purpose: • Berryoxidant: containing antioxidant super fruits such as blueberry, raspberry and cherry, along with the goodness of green tea.

• Coco Power: a delicious mix of mango and pineapple blended with the electrolyte goodness of coconut water and enhanced with lemongrass for a touch of zing!

• Mango Magic: a magical concoction of pineapple, mango and passionfruit blended with the cleansing properties of ginger.

• Green Recharge: recharge your body with the green goodness of kiwifruit, spinach and the Vitamin A & K benefits of kale.

• Apple +: a crisp, delicious apple juice with the added goodness of Vitamin C and Fibre.

• Orange +: a delicious blend of orange and apple juice with the added goodness of Vitamin C and Fibre.

Supa Essentials come in a portion-controlled 350mL PET bottle, perfect for people on the go and for any time of day.

Want to enhance your fridge with a unique on-trend juice range which appeals to your consumer’s needs? Then call Tru Blu Beverages today on (02) 9912 6700, to order or find out more about the exciting new Supa Essentials range.

PRODUCT NEWS

It’s all about gravity

Every convenience store has a cool room and drinks fridge, from which they sell drinks and if your system involves a flat shelving system then you experience one or all of the below: • You incur a lot of labour costs (staff have to continually face up product as it sells) • Your staff double handle products (touch each product numerous times) • You cannot guarantee proper stock rotation (FIFO, first in, first out) • Your fridge will never look full (as customers buy product throughout the day) There is also a trend to reduce staff numbers which limits the time that your staff can spend ‘facing up’ products, as their priority is to deal with the continuous stream of customers in the store.

There is a famous saying – you cannot see the forest for the trees.

To put this simply, sometimes we are all guilty of being so busy that we can forget the basic business principles so we lose sight of what is real.

There are a number of proven cost/value formulas and they all agree on the basics of value, quality, service and cost Getting all these factors right ensures a high customer perception of overall value and we should always strive to increase our quality and service

Which group does your business belong to?

• Gravity, it has been around for millions of years • Gravity, it was recognised and named by Sir Isaac Newton over three hundred years ago • Gravity, why is your business not using it?

• Flowsell provides a retrofit bottle slide kit that converts your flat shelving into a gravity feed system • Flowsell can customise the retrofit bottle slide kit to fit any size shelf • Flowsell can provide either a supply only or a supply and fit option • Flowsell is a 100% Australian owned and operated company Contact Flowsell: sales@flowsell.com.au, 03 9708 2276.

SO WHAT IS THE SOLUTION?

Flowsell’s flat shelving is all about cost reduction, and smart innovation.

We should continually explore options and opportunities to reduce costs and maximise staff time at the coal face (serving customers).

Businesses who understand and adopt proven systems that enhance their customers perceptions will always “just do it” whilst others ponder and procrastinate.

Call us today to find out how Flowsell can increase your profitability.

T: (03) 9708 2276 E: sales@flowsell.com.au

ELIMINATE DOUBLE HANDLING

REDUCE LABOUR COSTS

ALWAYS FACED UP FIRST INFIRST OUT

OPINION

ACT NOW, OR BE LEFT BEHIND Changing shopper habits, the future of current fuel offers, technology and the millennial.

A

BRETT BARCLAY Director - Convenience Measures Australia

Whether you are a believer in all the publicity around electric cars or not, what we do know is no matter what, cars will become even more fuel efficient in the future.”

s I have discussed in past articles, the convenience channel is evolving by broadening offers and creating destination occasions outside of the traditional fuel category. I have been fortunate to present at several conferences this year and feel that the message of ‘investing in your future’ is getting through.

This goes for both retailers and suppliers because as retailers, you need to own your future and suppliers need to adapt your offerings/products to meet that future.

There are several factors forcing the hand of retailers and suppliers to change and to look at how you can develop offers that drive foot traffic. The reality is that if you don’t or haven’t acted on current trends by now, you are playing catch up. I see three things that are driving the current investment by retailers into new store formats: -changing shopper habits -the future of current fuel offers -technology and millennials

CHANGING SHOPPER HABITS

very different shopper coming through with a significantly different view to the previous generation. Millennials are the most diverse culture, often being first generation Australians, that are demanding more in terms of offers.

To be relevant to this generation, technology will play a key role in your success, whether it be communication through apps or social media, it is something that must be implemented. We are also seeing the best retailers use LED screens and interactive media to drive occasion based offers and even upselling.

As we see the Convenience channel at the forefront of changing shoppers needs, it remains extremely important to remain relevant, as other retailers will be looking at ways to capture this market.

If you haven’t planned or implemented your future strategy you need to act now or in the words of the outgoing Nokia CEO when the business was sold to Microsoft you will be thinking “we didn’t do anything wrong, but somehow, we lost”. C&I

The investment by retailers in Hot Coffee and Food as well as equipment to support the growth of these categories has been happening for many years now; however it particularly has a real momentum at the moment. We are seeing a category like Hot Coffee continue to grow in acceptance and sales from the shopper and it remains the fastest growing category for retailers with varying offers in the market. The retailers that have invested in this are reaping the rewards and so too is the broader channel. The fact that Hot Coffee shoppers visit on average 3.5 times per week or more than 25% more than any other category shows that implementing a great Hot Coffee offer will drive foot traffic. Doing this on its own will be limiting so you need to continue to look at how to broaden the Food category with both on the go and ready to eat meals. This will take time and some of the offers will fail however, from what we have seen globally it is worth the effort and complements the Hot Coffee strategy.

THE FUTURE OF THE CURRENT FUEL OFFERS

Whether you are a believer in all the publicity around electric cars or not, what we do know is no matter what, cars will become even more fuel efficient in the future.

A number of car makers have already publicly stated that within the next two years their fleet of cars will be mainly Hybrid and Electric. What this will do is change the frequency that shoppers will need to come onto the forecourt, meaning that you must develop other reasons for shoppers to come. You can create an occasion for when electric charging stations are required as your customers will need to spend 10 -15 minutes on your forecourt.

TECHNOLOGY AND MILLENNIALS

While the average age of the convenience shopper is a little under 40 years of age, the next 10 years will see a 46 December 2017/ January 2018 | C&I | www.c-store.com.au

Brett Barclay speaking at the UCB Conference on the Gold Coast.

OPINION

RIGHT TO REFUSE WHEN CUSTOMERS ARE WRONG

W

alking into a retail outlet the other day I was reminded that the customer is not always right. Several customers were verbally, and loudly, berating another customer for having behaved inappropriately towards one of the female staff members. As the ‘oik’ left the premises having been soundly castigated, my faith in humanity was strengthened, but it reminded me that retail staff not only have difficult customers at times, but can work in situations where they may also suffer unacceptable harassment from customers.

A bit of research on this subject (thanks to the University of Sydney) has found cashiers, waitresses and shop assistants in retail outlets experience harassment by customers on a regular basis. It appears customers regularly misinterpret, or deliberately, cross boundaries of appropriateness in response to friendliness by retail employees. This crossing of the line can result in sexual harassment. Further, a percentage of customers also cross boundaries by displaying hostility towards retail staff in relation to ethnicity or perceived national origin as well as workers with disabilities which is also harassment.

If similar conduct was displayed by one work colleague to another it would result in legal exposure to the company, could result in legal exposure to its directors and management and should result in disciplinary action against the employee, if proven. So what is the situation when it’s a customer?

YOUR LEGAL DUTY

As a legal issue harassment in the workplace is dealt with in various pieces of legislation, including criminal laws. Unless perhaps if you work in law enforcement workers should not expect to go to work and suffer harassment from anyone. Generally speaking harassment in the workplace occurs when a person is directly or indirectly subjected to conduct which is unwelcome or offensive. Harassment can take numerous forms and relate to various issues including race, religion, age, and gender Sexual harassment in the workplace might best be described as any unwelcome sexual advances or other unwelcome conduct of a sexual nature which makes a person feel offended, humiliated or intimidated, and where that reaction is reasonable in the circumstances.

All business owners have legal obligations to provide a healthy and safe work environment for workers free of harassment, intimidation and bullying. The scope of that duty is not limited. Workers who suffer as a result of such unacceptable behaviour have various avenues to sue their employer. These include workers compensation claims, the Fair Work Commission, state and territory government agencies such as WorkSafe and

WorkCover, as well as the Human Rights Commission and various state and territory courts and tribunals.

FINES AND CONSEQUENCES

Such claims will be made against the employer and may also name directors, senior managers and company owners as respondents in such litigation. If it is found that the conduct occurred and that the employer is responsible for it not occurring, well let’s just say you should probably dust off the cheque book. Employers may likely have to pay damages to the employee, fines to the prosecuting agency, as well as suffer public humiliation and reputational damage. Depending upon the gravity of the conduct and the consequences of the suffering, decisions have been handed down costing employers millions of dollars. Oh yes, and I almost forgot to add your legal bill into the outcome whether you win or lose!

The internal consequences of harassment in the workplace, whether by a work colleague or a customer are proven again and again, and are beyond doubt. In addition to possible fines and damages payout, harassment in the workplace has a detrimental effect on the workplace generally, employee productivity, and to the reputation of your business. No potential employee wants to work for an organisation that allows its staff to suffer harassment that goes unchecked. No existing staff member is going to be interested in putting their shoulder to the wheel for a company that doesn’t clearly and strongly take action against such conduct.

CHARLES WATSON Senior Adviser Workforce Guardian

Charles.watson@workforceguardian.com.au

It appears customers regularly misinterpret, or deliberately, cross boundaries of appropriateness in response to friendliness by retail employees.”

DEAL WITH IT

Now I may be more risk averse since I graduated from law school and feel that every foreseeable workplace issue needs to be considered, but at the very least it is common sense for businesses to have processes in place for dealing with unacceptable conduct such as harassment. As business owners you cannot expect employees to just tolerate inappropriate behaviour from customers and know how to deal with it. From a business perspective, it is part of your risk management and should be addressed. The implementation of straightforward policies and procedures for managing related situations should be the minimum.

While we good people at Workforce Guardian are always happy to represent and defend a business client in a tribunal or court, we would rather you contacted us for advice and the undertakings you can implement to have a great workplace culture and to minimise your exposure to what could have been an otherwise avoidable claim.

Oh, and from a customer’s perspective, I have a lot of respect for businesses who stand up and won’t tolerate awful behaviour directed towards their staff and I am sure your staff will also. C&I December 2017/ January 2018 | C&I | www.c-store.com.au 47

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OPINION

MILLENNIALS AND CONVENIENCE One day soon, millennials will hold the majority of the spending power. What’s the key to marketing to them and meeting them where they’re at?

O SARA SALTER Managing Partner and co-founder Saltmine Design Group

What we do know about millennials is that they can be characterised by more than just their age. Their attitudes and influences span the generation.”

ften accused of having a penchant for extortionately priced barista made coffees and smashed avocado on toast, rather than saving for their first home, the generation known as the ‘Millennials’ are time and again referred to as ‘entitled’ and ‘lacking in social graces’. But have the Millennials got the rough end of the stick? Have other generations just failed to understand who they are and what makes them tick?

In Australia, there are approximately 5.5 million Millennials and by 2018 they’ll have the most spending power of any generation. Sounds like an important demographic for brands to start understanding and speaking to in their language.

The generation we call ‘millennials’, a term widely thought to be coined by authors William Strauss and Neil Howe, were born in the early 1980s through to the mid-1990s, and are currently aged between 18-34. The exact range of birth years is slightly lenient, depending on whose research you read, but the definitions of the generation hold true.

As with many generations, behaviours may vary within the group, due to the large age range and life-stage and we know that the motivations and behaviours of an 18-year-old are very different to those of a 34-year-old. For the purpose of their research, Nielsen breaks millenials into two smaller subgroups ‘Younger Millennials’ (aged 18-27) and ‘Older Millennials’ (28-mid 30s). “The younger millennials are more likely students or newly out of college and may be living at home, whereas the older group is more established in their careers and starting families.”

What we do know about millennials is that they can be characterised by more than just their age. Their attitudes and influences span the generation. The millennial generation is more ethically and racially diverse than their predecessors due to the access to affordability of transport and international travel. They’ve lived through the Global Financial Crisis (GFC) of 2008 and come out optimistic with a resurgence of young entrepreneurs. They’ve not only invented social media and the technology to support it, but wholeheartedly embraced it to the point where a smartphone is an extension of the person – and they average 177 minutes a day on it.

FOOD AND BEVERAGE

When it comes to convenience food and beverage, we do know that the formative years of Millennials' lives are shaping their purchasing motivations and behaviours. Despite a reputation for being over-confident and self-centred, they’re becoming more conservative and when asked who their hero is, many answer ‘Mum’ or ‘Dad’. Parents also feature high on the list of those people millennials trust, along with their family, themselves and their friends – all who become trustworthy spokespeople for brands.

This notion of truth, that is so important to millennials, is key to marketing to millennials. The way we speak 50 December 2017/ January 2018 | C&I | www.c-store.com.au

to millennials needs to change – brands need to stop interrupting millennials because this switched on generation can easily sniff out bullshit and value truthfulness above all else. They have technology at their fingertips and can source information on brands, ingredients, benefits and price at the swipe of a touch screen.

So how should we speak to them? First of all, forget the hard sell. Successful brands tell and share their stories. They stop interrupting what people are interested in and be what people are interested in. Millennials demand the truth from brands and the words “I don’t trust you” are the most damaging words a brand could hear from this generation.

Truth is a true millennial movement. They value truth over anything else and are quick to comment, review and share through their social networks. They are digital natives, so make your campaigns share-worthy, through social media and word of mouth. This generation are connected, they love sharing and collaborating. Listen to them, they’re an educated bunch who have been encouraged to question and challenge the norm.

At Saltmine Design Group, one of our longstanding clients, beverage manufacturer Frucor Suntory, spends a lot of their marketing budget targeting millennial consumers.

Earlier this year, we created a consumer promotion for Frucor Suntory’s Isotonic Sports Drink Brand, Maximus, which targeted convenience and impulse shoppers to engage with the brand, with the ultimate chance to win $1,000,000. Knowing that Millennial consumers love to share via social media, we created a campaign that prompted consumers to choose from a range of on-pack labels that best described them (such as Dad-Bod Lord, Buff Lord, Sweaty Lord and Dating Lord), to purchase that bottle and upload a photo of themselves with the product and the promotional hashtag #AwardALord. This entry mechanism was not only their way to gain an entry into the promotion, but also to generate a hive of activity about the brand on social media.

So back to the smashed avocado and coffee, well, we also know that millennials collect experiences rather than material assets. Gone are the days of a house and a car being priority purchases, this generation wants experiences, like eating out, trying new places, sports and ultimately buying things that they can share and tell others about. It’s good for their social status and alleviates their fear of missing out.

Millennials are anxious about this world of global uncertainty we live in – terrorism, global warming, politics.

Millennials want to make an impact – they want to step up. Find their truth and sort it out. The winners will be the brands that help them find it. C&I Saltmine Design Group specialises in the creation of visual identity, brand activation and communication for challenger brands. They are a collective of expert designers and marketers who together, form a powerhouse of enthusiasm, spirit and determination. They are passionate about developing and differentiating challenger brands to achieve commercial success.

OPINION

WHY SOCIAL MEDIA IS IMPORTANT TO UNDERSTAND

M

usical.ly, a video-based social network popular with teenagers in the United States and Europe, is being sold for between $800 million and $1 billion to Bytedance, the company that controls the Chinese news aggregator Toutiao, according to a person familiar with the matter.

Musical.ly is not something even my 20 and 25 year old daughters use, so I don’t pretend to be an expert on it, as I am not their target audience. But here is what I do know: Started by Chinese entrepreneurs Alex Zhu and Luyu Yang as an education social network, the pair quickly found instructional videos were not hot. What was: clips that combined music and social media.

They swiftly relaunched as a music video service and slowly started to sign up users. “Every Thursday evening, there was a spike in downloads,” Zhu told FORBES last year. "We found out that Spike TV was airing Lip Sync Battle on Thursday evenings and after the show people used ‘lip sync’ to search on the app store, and found us.”

The company doubled down on lip syncing with design tweaks that made the feature more prominent and quickly rose to the top of the app store.

Musical.ly users create short looping videos that are stamped with the Musical.ly logo and shared in the app and across social media sites including Facebook, Instagram and Twitter. Though the company declined to disclose active monthly users, it said over 13 million videos are uploaded daily. The number of registered users has more than tripled in the last year.

You might ask yourself so what? How does this relate to me and my business?

Well, no matter at what level of the FMCG industry you play in, you need to understand that today’s social media consumers are tomorrow’s business owners.

Most of the businesses that I talk to when it comes to marketing their products or business is based on history and what is tried and true. What is working for you now, will not work for you in the future if we are to take what is happening here seriously. Attention is the asset that we are all chasing, because you cannot sell anything if you don’t have the attention first.

Apart from a small percentage, most businesses are playing the short game, because that is where they can make the biggest impact, get the most wins and the biggest returns for their shareholders. But it is not

sustainable and amounts to treading water, and in the long run it will be your undoing.

Take Toys ‘R’ Us in the US, who fundamentally failed to understand or appreciate the impact the internet would have on their end customers, when in the early 2000s they outsourced their online business to Amazon. At the time I am sure pundits were spruiking the short term benefits to the bottom line, and 17 years later their stores have become irrelevant to the end consumer.

Toys ‘R’ Us failed to innovate and turned their Toys ‘R’ Us customer into an online customer for Amazon.

Fundamentally they failed to respect the market and where it was heading, and they thought they were the market until one day they were not.

The speed at which the market is moving will trip you up, and while you may think that all of this will be after your time in whatever you do, you couldn’t be further from the truth.

May I remind you that Facebook wasn’t around 14 years ago, Instagram is only 7 years old and Twitter has only been with us since 2006. The speed at which the market is moving is stunning, and while most businesses are making decisions based on historical data and the short term, what they should be looking at and understanding better, is the trends and where the market is going in the long term.

So if you think these trends are not going to have an impact in your business over the next 5 years you couldn’t be more wrong. And when it starts to impact what are you going to say? That you thought that all of this was just a fad, that traditional engagement strategies were the future, that all of these social platforms were of little consequence to our business? What will you say?

Time is the asset that we value the most, and the underlying appeal of all of these trends wether it be Musical.ly, or UBER or Netflix is time.

I mean do you understand that we now pay more for a movie on Netflix than we used to pay at the Video store, so why is this the case and why did the video store die? It’s time.

If you can save your audience time, you will have their attention and if you have their attention you have a chance of connecting with them. If you take nothing else away from this article it should be this: The way you are marketing your products or brand are not keeping pace with the way consumers are now being engaged. If your business or product gives me back time, you will have my attention and you will win! C&I

CRAIG MATTHEWS Principal of Alcamat Pty Ltd and Managing Director of Stock Box

Today’s retailing is all about the marriage of traditional values and modern technology.”

December 2017/ January 2018 | C&I | www.c-store.com.au 51

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INDUSTRY NEWS

UCB 2017

NATIONAL CONFERENCE T The UCB 2017 National Conference was the biggest yet!

Paul Clithero

Chris Helder

Brett Barclay

54

Attendents to the conference dancing at the Coca-Cola Amatil Dinner

December 2017/ January 2018 | C&I | www.c-store.com.au

he annual UCB National Conference was held on the Gold Coast at Royal Pines Resort. The conference kicked off with coffee and finger food on Monday afternoon as delegates arrived and checked in.

Everyone involved was keen to get involved with the activities offered to them; there was the option to participate in the Schweppes Golf Classic, Barista Bros Go Kart Challenge, The Distributors Winery Tour or Lipton Hydration Water Day Spa. Tuesday evening saw the attendants treated to a spectacular dinner sponsored by Coca-Cola Amatil and held poolside. The dinner made for the perfect backdrop to watch the fireworks display. The entertainment included a performance by Funk N Stuff and a special guest star appearance from Jennifer Hawkins courtesy of Coca-Cola Amatil.

Wednesday morning was for thinking in-depth about convenience with the business session kicking off the day.

UCB CEO Darren Park stressed the importance of good customer service to ensure customers feel appreciated while the rest of the day’s agenda included presentations from Brett Barclay of Convenience Measures, finance commentator Paul Clithero and motivational speaker Chris Helder.

The doors opened to the much anticipated trade show on Wednesday afternoon where delegates were able to strike deals and continue to strengthen relationships with trade partners. To end the conference, the Halloween Ice Break Gala dinner was held with a record attendance of over 500 guests and saw all members and trade partners dressed in their scariest outfits in true Halloween spirit. Members and trade partners sat together to enjoy the night and listen to awards being announced. The Rockstar Nightclub drew the 2017 UCB Conference to a close, where a good time was had by all.

INDUSTRY NEWS ICE BREAK GALA DINNER

This year’s theme Halloween had the delegates dressed up as their favourite Spooks; there were witches, wizards, zombies, ghosts and of course the terrible IT clown` character made an appearance.

Amazing participation from both trade partners and members meant that the best dressed awards were highly contested.

The Parmalat prize draw giving members a chance to win $100,000 was won by Tim Wilson from Monkland News & Convenience in Gympie. Tim took home $10,000 courtesy of Parmalat.

UCB presented 16 awards to trade partners based on the survey sent out to UCB members earlier this year, congratulations to all the winners and to Grand Champion Trade Partner of 2017 Coca-Cola Amatil!

The night’s entertainment was jam packed with outstanding performances from talented dancers.

The dinner ended with a bang and the incredible Bon Jovi Tribute Band performance had people up on their feet dancing the night away. What a way to celebrate the 2017 UCB National Conference. Thank you to Parmalat for sponsoring such a fantastic night. C&I

Coca-Cola Amatil Dinner entertainment

TRADE PARTNER OF THE YEAR 2017 Carbonated Soft Drinks & Sports Drinks – Coca-Cola Amatil

TRADE PARTNER OF THE YEAR 2017 Energy Drinks – Frucor Suntory

TRADE PARTNER OF THE YEAR 2017 Functional Drinks & Water – Schweppes Australia

TRADE PARTNER OF THE YEAR 2017 Confectionery – Mondelez International

Winners of best dressed at the Ice Break Gala Dinner

TRADE PARTNER OF THE YEAR 2017 Snacking – Smiths

FOOD MANUFACTURER OF THE YEAR 2017 Mrs Macs UCB CEO Darren Park

TRADE PARTNER OF THE YEAR 2017 Flavoured Milk and Iced Coffee – Parmalat

TRADE PARTNER OF THE YEAR 2017 General Merchandise – Pacific Optics

TRADE PARTNER OF THE YEAR 2017 Cigarettes – Philip Morris

TRADE PARTNER OF THE YEAR 2017 Communications – Telstra Pacific Optics

WHOLESALER/DISTRIBUTOR OF THE YEAR 2017 Jennifer Hawkins

The Distributors

NEW PRODUCT OF THE YEAR 2017 Pepsi Max Vanilla – Schweppes Australia

TRADE STAND OF THE YEAR 2017 Parmalat

TRADE PARTNER REPRESENTATIVE OF THE YEAR 2017 Jacinda Lythgo – Frucor Suntory

OVERALL TRADE PARTNER OF THE YEAR 2017 Coca-Cola Amatil

December 2017/ January 2018 | C&I | www.c-store.com.au

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INDUSTRY NEWS

REDEFINING CONVENIENCE FOR C-STORES

These exercises were all engaging and well worthwhile and each participant representing their company was challenged to think in ways that they perhaps, hadn’t in the past.”

Director of SIT Rachel Audigé

R

ecently, AACS held a workshop that focused on innovation within the industry and how companies and brands can think “inside the box” to make more effective, feasible and inventive use of their existing resources.

The workshop was run by the Director of Systematic Inventive Thinking (SIT) Australia, Rachel Audigé. SIT is both a method and a company based in Tel Aviv that has been working with Fortune 500 companies for over 20 years to bring business impact through innovation.

Having highlighted the WHY of innovation in our industry, Rachel’s focus was on the HOW; the mindset and the toolset for getting it right. Through a series of exercises, Rachel took the small group of brand representatives from within the convenience industry through the myths that surround innovation.

One of the myths busted was that it was limited resources that stopped us innovating when in fact a cognitive bias, “fixedness”, is very much to blame. Fixedness is our tendency to get stuck on certain patterns of thinking, structures, relationships between things – and our inability to imagine alternatives. Rachel explained that this was a real obstacle to innovating with what you have.

Rachel showed participants how we reverse that 80% of the best ideas actually draw on 5 patterns (or algorithms).

The thinking tools derived from these patterns are used in a counter-intuitive way; from a solution to a problem – rather than the other way round. This helps us to unearth ideas that we might otherwise miss.

One of the patterns the group worked with is called “Attribute Dependency”. This is where a dependency is created between two variables that would otherwise not

Lucy Marrett of C&I and Joshua Hoevenaars of BP

56 December 2017/ January 2018 | C&I | www.c-store.com.au

be connected. Examples of this include pink taxis (there were previously no connections between the gender of the driver and the gender of the customer) and coffee lids that change colour according to the temperature. An example of this in the convenience industry would be connecting an internal variable such as the number of brands for sale per product, to an external variable such as the age of customers. The idea being that when you begin to explore opportunities as a retailer and/or a brand, you begin to uncover new and innovative ways to do things that you hadn’t thought of before.

The second SIT tool shared by Rachel was called ‘Division’. The example and interactive experience for the workshop participants involved listing the steps of a customer journey to a C-store (one group worked on tradies and another on young mums after school) and randomly shuffling the order to explore alternative ways. It was fascinating to see that even if the new process felt odd, there was often a benefit to be found!

These exercises were all engaging and well worthwhile and each participant representing their company was challenged to think in ways that they perhaps, hadn’t in the past.

Feedback by participants was very good: “I will start to use the new tools and learnings.”

“The structure was easy to follow and methodological.

I can easily translate this into my own world.” “Very well presented and easy to digest.

This AACS workshop covered both skills and topics that were highly relevant and revolutionary for all those in the convenience industry. We look forward to the next one! C&I

INDUSTRY NEWS

TIC Adds New Tobacco Brand To Portfolio The Tobacco Imports Company (TIC) proudly announced the newest addition to their portfolio, Cleveland Gold and Blue.

In its king size format, Cleveland will be available to retailers in the coming weeks, in both Blue and Gold varieties.

Having quickly made a name for themselves after their 2015 inception, TIC is recognised as a leader in the distribution of proprietary tobacco products.

Managing Director, John Kollaras commented: “we were quick to identify the need for highly competitive products that offered a point of difference, and delivered retailers above industry standard margins. Cleveland is a sound addition to our portfolio, and delivers just that.”

With the sub value segment seeing exceptional high category growth, Cleveland’s full sized 84mm stick and 21mm filter aims to give consumers exceptional value for money.

Cleveland launched in late November and will be available direct, to all retailers and major buying groups.

Data – lots of it around, but what do you need?

Big data. Real-time data. Geographical data. Open data. Crowdsourced data. Smart data. Data mining. Data science. BI (business intelligence).

Cloud BI. Analytics. Predictive analytics. Dashboards. Cognitive computing.

Machine learning. AI (artificial intelligence).

These are just some of the terms used today to refer to various types of data or data activities, and that’s without mentioning the tools and platforms now available to access it. All of which have evolved as part of our insatiable desire for data – the more the better.

But what exactly do you need?

Much of the information you require is already contained within your business. However, there is also a need for external data to help fill knowledge gaps, ensure compliance, provide an ‘independent assessment’, refine your business strategies, improve your negotiating position and assist you to maximise profits.

Before embarking on your data discovery, clearly define the question/s you want answered.

The importance of being able to rely on accurate and timely information is paramount. The array of data available is increasing every day, so avoid taking up ‘interesting but unactionable’ data.

You can’t make the right decision using the wrong data!

The ability to collate and join disparate data into a single, cohesive dataset is where the true usability lays and it is from this that real business intelligence is generated.

Using data correctly is very powerful and a pivotal factor to success... but incorrect data, too much data and/or data delivered poorly not only clouds your vision, it is a massive time waster, and these days’ time is an expensive commodity.

The good news is you don’t need to navigate your way through this data minefield alone. Informed Sources has been working with businesses of all sizes for over 30 years, providing effective business intelligence solutions that best fit the needs and budget restrictions.

Informed Sources Accurate, Reliable, Timely (07) 3858 0000 www.informedsources.com

December 2017/ January 2018 | C&I | www.c-store.com.au 57

INDUSTRY NEWS

EZYMART CONFERENCE

It’s a symbiotic relationship – retailers can’t survive without merchandise and suppliers need other retailers other than the major supermarkets who are so focused on just price.”

T

he annual EzyMart conference and trade show was held at the ANZ Stadium in Sydney Olympic Park on Friday the 17th of November.

The trade show started in the middle of the day with well known brands and suppliers putting their best on offer.

The trade show was followed by a tour through the stadium, change rooms and out onto the field where drinks were served to guests while a violin duo played.

Guests were then walked back through the stadium and inside to where the conference dinner had been set up.

There were a few special guests in attendance including Nicole Webb, NRL player Benji Marshall and taekwondo Olympic silver medallist Daniel Trenton, who all shared from their own experiences and challenges in life.

EzyMart founder and CEO Maher Magableh said he was thankful for everyone who attended the event.

“I want to express my great appreciation to our loyal suppliers who have joined us tonight,” he said.

Mr Magableh went on to say he wanted to highlight EzyMart’s vision and focus for 2018.

“We are going to introduce more grocery items, fresh food and coffee,” he said.

Australasian Association of Convenience Stores (AACS) CEO Jeff Rogut also spoke on a recent study conducted by AACS about how convenience might look in the year 2030.

“There’s been enormous work done between retailers and their suppliers and manufacturers,” Mr Rogut said.

“It’s a symbiotic relationship – retailers can’t survive without merchandise and suppliers need retailers other than the major supermarkets who are so focused on just price.”

“The future for our industry is incredibly bright,” Mr Rogut said. “It’s bright around the world, but it really is in our hands as to how successful we want to be.”

Guests were treated to a three course meal and a performance from musical duo, Strings on Fire before the EzyMart 2017 Awards were announced. C&I

Jeff Rogut AACS CEO (centre), EzyMart founder and CEO Maher Magableh (centre right) and a selection of deligates

EzyMart Awards dinner

ESONIC at EzyMart trade show

Naked Beverages setting up a product display

2017 EzyMart Awards EZYMART 2017 SUPPLIER OF THE YEAR AWARD Beverages – Lion Dairy & Drinks Confectionery – Nestlé Australia Ltd Telco – Optus PPS Snacks & Ice-Cream – The Smith’s Snack Food Company Pty Ltd

EZYMART 2017 ACCOUNT MANAGER OF THE YEAR AWARD Stuart Alexander & Co

EZYMART 2017 SHOP OF THE YEAR AWARD EzyMart 568 Collins Street, Melbourne

EZYMART 2017 BEST CUSTOMER SERVICE AWARD EzyMart 551 Swanston Street, Melbourne

58 December 2017/ January 2018 | C&I | www.c-store.com.au

Gallagher Data Centre - Released!

Sparking the industry with true innovation

Changing the game is not about taking risks, it’s about taking on technology that comes from a reliable, leading industry player, that advances the industry, has positive business benefits and it’s platform is the future.

Any new site build or site enhancements must consider the Data Centre first as a through life management plan for dispensers.

• No new boxes on the wall - just connect your dispensers to the internet • Every pump/hose has 24/7 intelligent sensing with dynamic status and alert emails • Every dispenser can be assessed remotely – reducing site visits in multiple ways • Service contracts can now be built around Data Centre - driving fact based ‘sites-wide’ servicing • All authorised users see dashboards, live deliveries, transactions, prices, totes, flow rates and issues • Simple reporting gives specialised flow rate analysis and smart sales filtering across all assets on site.

The future is the Data Centre platform - it’s here now!

For more information regarding piloting Gallagher Data Centre Derek Hjelm | Business Development Manager | Fuel Systems Australia MOB +61 424164814 | E: derek.hjelm@gallagher.com

PETROL NEWS ROUNDUP Petrol and service station safety

There has never been a more important time to focus on safety in petrol and convenience. Every day in the news there has been occurrences of armed robberies, fires, explosions, food contamination, chemical spills and workplace injuries in petrol stations.

Safety is important because of the nature of the petrol station business. Dangerous goods including motor spirits, diesel and LPG can cause serious injury and even death to both staff and the general public.

Dan Armes, Founder of ServoPro Like any business owner, petrol station operators have a duty of care to ensure the safety of everyone who enters their business.

It is important that checklists and procedures are developed as site level to identify risks and hazards. Control measures can then be documented to ensure the safety of everyone at the Petrol station, because safety is not tangible, it often gets forgotten about until it is too late. A proactive approach to safety is the only option for those business owners serious about their obligations as a retailer.

As part of the induction process, employees should be provided with information on potential risks and hazards that exist in the workplace.

In order to communicate safety to employees and customers, signage should be clearly visible. Important signage to have includes no-smoking, use of mobile phones, wet floors etc.

It is also important that emergency stops are clearly marked. Pumps and dispensers should have bollards around them to protect damage from vehicles.

All states are different when it comes to notifying relevant authorities that dangerous goods are kept at the premises. In NSW it is required that petrol stations complete a Notification of Dangerous Goods with Workcover. This notification contains information around what is stored along with a site map.

Most Petrol stations store and handle LPG and thus employees should be trained in the procedure of filling gas bottles which in most cases is provided by the supplier of the LPG. Safety valves and pressure gauges should be in good working order. There have been previous occurrences of fire where the gas bottle has not been earthed, while it was being filled.

Before filling the gas bottle, it is important to remove it from any container and place it on the ground or metal stand to reduce the chances of a static spark.

Where exchangeable LPG bottles are stocked they should be stored far enough away from buildings and roads as set out by the relevant states legislation.

A spokesperson from Serious on Safety, a company who specialise in advising on all things safety in Petrol stations said that safety is not just about meeting the requirements under the legislation; it is a good investment in your business.

“By making your store safe and training your employees you are also looking after your customers. By having a safe store to work and shop in petrol station operators can save in unwarranted costs from fines and workers compensation if there was an injury to employees or public liability if a customer is injured,” the spokesperson said.

Serious on Safety recommend making safety a priority by starting every day with a walk around the store and forecourt to identify any hazards that could be 60

December 2017/ January 2018 | C&I | www.c-store.com.au

a risk to customers and employees. Many petrol station operators forget this simple yet effective strategy for keeping the store and forecourt safe.

Armed robberies are one of the biggest threats to the physical safety of employees.

“The chances of an armed robbery occurring can be greatly reduced through the communication of information and training. Examples include setting minimum cash limits, good quality and reliable CCTV systems and employee awareness” the spokesperson said.

There are requirements around fire safety that need to be adhered to in petrol stations. It should be clearly communicated through signage, the location of the emergency assembly, housekeeping kept up date, and a current manifest box installed. Fire extinguishers should be regularly maintained and in locations which are easily accessible.

Chemicals are needed for the day to day running of a petrol station. It is important that these chemicals are clearly labeled so that staff know what the chemical is, why they are needed and where they have come from. Examples of chemicals kept in Petrol stations include cleaning chemicals and fuel additives. It is the responsibility of the employer to provide suitable protective equipment for employees who will be handling the chemicals.

Food safety is a great example of an area where business owners have a duty of care but also making it a priority makes good business sense. In Australia there are food safety standards which place obligations of food businesses to produce food that is safe and suitable to eat. The main aspects are around hygiene and health obligations for food handlers and aim to lower the occurrences of food related illness.

Sanki Australia MD Lewis Hoad said that fuel retailers must make safety a priority. Lewis, through his various roles in the fuel industry has seen far too many close calls due to complacency.

Mr Lewis said: “The biggest risk I see for petrol station operators is knowing what rules and regulations they are responsible to comply to and what service providers e.g. pump installers, signage installers should be complying to working on their site. Bottom line is if any damage is caused or an injury to a customer has occurred on site, the business owner is at risk from a liability perspective.”

PETROL NEWS “They need to ensure all visitors to site are trained, licensed, insured, and they have Safe Work Method Statements (SWMS) for the works. You would be surprised how many contractors I come across do not do this. Most sites I visit for a start do not have sign in book to demonstrate who has approval to be on site to do any works, and a lot of fuel retailers are not aware of what the overall regulations are.”

“An example of this is if a contractor visits a petrol station to repair a broken fuel line cutting the concrete on the forecourt area between the pumps, this is a hazardous zone. The contractor hits a fuel line, it explodes, the operator of the concrete cutter receives 2nd and 3rd degree burns and is hospitalised. If the contractor doing these works was not licensed or insured or had not requested or provided a safe work permit to carry out the works, the site operator would be responsible for all costs and liability for the injuries. This happened at a petrol station last year in Brisbane and in 2015 in another petrol station, you would be surprised at how often this happens,” said Lewis.

One of the major risks in a petrol station is fire. Fuel vapour is highly flammable and can be ignited from a variety of sources. Lewis has visited hundreds of petrol stations and is constantly surprised at the unidentified risks he sees. Many petrol station operators are not aware of what can be an ignition source.

“I have seen numerous ice boxes and power points installed in a designated hazardous zone either beside a LPG bottle storage cage or under a vent pipe. Being aware of what a hazardous zone is and the risks associated is the biggest process I see not understood,” Mr Lewis said.

Employers have a duty of care to ensure their staff are working in a safe environment. As part of this business owners must have an up to date workers compensation insurance policy.

Arthur J Gallaher Work Health and Safety specialist Mario Machado is experienced in the fuel industry from an insurance perspective. Mr Machado said that legislation around petrol station safety varies widely depending on which state they are in. The legislation is also changing rapidly and it can be difficult for business owners to stay up to date with all the changes in their particular state.

“The management of work health & safety is complex and there is no single method to ensure it is managed appropriately. Employers should have policies and procedures in place which follow the broad structure of AS 4801 (AS/ NZS 4801 Occupational Health and Safety Management Systems),” he said.

“A strong focus should be in place on risk management ensuring there is a process to ensure hazards are identified and risks are well understood. In addition, critical risks that are identified should then be addressed to ensure workers, customers and visitors are not at risk of injury.”

More often than not petrol station operators don’t understand the importance of having an up to date workers compensation insurance policy and are not clear on exactly what they are covered for, when they should make a claim and what the differences are in the wide variety of policy providers.

Mr Machado said that the most important issue when selecting a worker’s compensation agent is to ensure the agent is proactive in managing claims.

“Many of the workers compensation agents around Australia offer exactly the same services. Whilst the premium models in each state vary, in general premiums are influenced by the cost of the claims and the industry rates applicable to the operations of the business. So the onus should be on preventing injuries and then when they do occur, the focus should be on managing the injury quickly and returning the worker back to work on a gradual basis to ensure they return to pre injury duties effectively,” he said.

“To ensure premiums are kept as low as possible, it is critical employers work with their broker to ensure premiums are kept as low as possible.’

As with any specialised area of your business it is important to get advice based on your businesses specific needs. Safety in petrol stations is a specialised area and with rapidly changing rules and regulations it is important that you consult a safety specialist to make sure you are covered.

Petrol price apps can save millions

Consumers can save money by buying petrol at the peak of the price cycle.

The Australian Competition and Consumer Commission (ACCC) September quarterly report on Australia’s petrol industry revealed motorists can save money by buying petrol at the peak of the price cycle.

ACCC chairman Rod Sims said: “Motorists who fill up weekly can make substantial savings by avoiding the six most expensive days in the price cycle.”

“Motorists that can fill up less frequently, however, and therefore buy petrol when prices are falling can save much more,” he said.

“For example, avoiding buying petrol on the 10 days around the price cycle peaks would see motorists save 3.8–6.1 cpl in the capital cities.

This would see annual savings of $141 million in Sydney, $124 million in Melbourne, $68 million in Brisbane and $55 million in Adelaide.

“For those seeking to save money a little effort can see large savings.

“Our advice for those looking to save even more, say 15–20 cpl, or $9–12 a tank, is to time your purchases by using the price cycle advice on the ACCC website, then use fuel price transparency apps or websites to find the most competitive fuel price near you.

“There can be significant price differences between sites at different points in the price cycle, so motorists that shop around can save themselves a lot of money.”

Darwin petrol station keen to re-open

The independently owned petrol station ‘Platinum’.

Source: NT News, picture: Katrina Bridgeford.

The owner of a petrol station that was previously known as ‘the cheapest petrol station in Darwin’ said he wanted to re-open the station.

Mark Garner owned the independent petrol station ‘Platinum’, said he would be “very keen” to get the store open again and sell fuel.

“I am more than keen to reopen, however, Blue Taxis has acted independently to shut the power off,” he said.

Mr Garner said he had spent a lot of money and time negotiating with the landowner Terry Pacos of Blue Taxis but was unsure as to why the site had been shut down.

“It was a profitable business and I don’t know why he’s done what he has done,” he said.

“If we were to reopen, we’d be able to sell fuel for about 10c/L less than everywhere else, which would surely help his taxi company.”

Mr Garner said it was his goal to get the business back up and running.

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PETROL NEWS

7-Eleven opens 500th fuel store at Burpengary

Petrol prices set to soar The price of petrol is expected to hit a two year high over the Christmas period as oil prices spike.

According to the Sydney Morning Herald, the Organisation of Petroleum Exporting Countries cartel has slashed production levels, at the same time as American and Russian producers have slowed their production.

NRMA spokesperson Peter Khoury said: “If these reports of continued cuts in productions hold true then unfortunately that’s what we’re going to have to brace ourselves for.”

“But the reality is this is such a volatile industry,” he told the Today show.

Analysts from the National Australian Bank said: “Higher [oil] prices, combined with our expectations for a lower Australian dollar, are likely to lead to higher fuel prices for Australian motorists.”

“The September quarter saw petrol average around $1.23 per litre [nationally], but we see petrol in the December quarter around 3.9 per cent higher at $1.28 per litre.

“Our forecasts point to petrol being above $1.30 per litre for most of 2018.”

Car crashes into petrol station fence

Fire fighters attending the crash site.

Source DailyLiberal Picture: Belinda Soole

A car driven by a 70-year-old man crashed into some gas tanks and a fence at a Caltex service station on Cobra and Brisbane Streets in Central Dubbo.

No one at the scene was injured including the staff and customers of the Caltex branded store.

Police officers, ambulance and HazMat crews attended the scene shortly after the accident took place however, the site was back to working condition by 9.30am.

Orana Local Area Command duty officer Inspector Jason Pietruszka said the incident wasn’t as bad as it sounded.

“The driver became distracted by something and ended up where he shouldn’t have.

“While he did go through some gas tanks there was never really the danger of anything exploding, and the staff on the scene did a really good job.”

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7-Eleven celebrated opening its 500th fuel store at Burpengary in Queensland recently, bringing its total network size to more than 670 stores across Victoria, New South Wales, Australian Capital Territory, Queensland and Western Australia.

7-Eleven’s GM retail operations Braeden Lord said that the new store was one of 40 new stores the company will open before the end of 2017, including 20 in Queensland.

“We are experiencing solid growth in our network with 40 stores opening this calendar year, about half of those in Queensland,” he said.

“We have approximately another 40 stores planned for 2018. The combination of our customer-focused convenience offer, quality Mobil brand fuels, and the wonderful team members in our stores, positions us well to continue to grow our network.”

Mr Lord said that the company continues to innovate to ensure it meets the needs of its customers and giving consumers choice was critical to achieving that.

“Our customers want choice and convenience, and we will continue to provide it for them. As a business we are investing to develop new products and services, and we also look for opportunities to work with our suppliers to bring new offers and innovations to the channel. It’s a real focus for us to not only offer the products and services consumers expect from us today, such as snacks, drinks and quality fuels, but also to be looking to what they might want from us in the future, such as food on the go including healthy options, and in-store services such as parcel lockers and digital products,” he said.

The new Burpengary store’s offer includes the innovative 7-Eleven Iced Coffee which lets customers make their own drink with freshly ground coffee and fresh cold milk, and the new 7-Eleven sushi range.

The company’s focus on providing choice in its quality food on-the-go offer will mean Burpengary locals can enjoy 7-Eleven’s handmade sandwiches and Krispy Kreme doughnuts delivered fresh every day, hot pastries, sweet treats and fruit, the famous $1 coffee offer which freshly grinds the beans for each cup, the iconic Slurpee and Slurpee Zilched, and the brand’s full fresh food and convenience range.

Customers will also be able to take advantage of the company’s fuel app to save when they fill up with quality Mobil brand fuels which are engineered to work harder and improve fuel economy for the consumer. The fully additised fuels include Supreme Plus 98, Extra 95, Special E10, Special Unleaded 91 and Special Diesel.

The 7-Eleven fuel App lets customers lock in 7-Eleven’s best local price, and then redeem it at any 7-Eleven store Australia wide within the next 7 days. Approximately 700,000 consumers have downloaded the 7-Eleven Fuel App and in the 18 months since its launch have saved more than $2 million.

“With so many innovation opportunities to explore to provide our customers with more choices, it’s a pretty exciting time to be part of the petrol and convenience industry,” Mr Lord concluded.

The 7-Eleven team celebrating the 500th fuel store opening.

PETROL NEWS

Gallagher announces Data Centre ACCESS TO INFORMATION PREVIOUSLY LOCKED AWAY IN A DISPENSER HAS HUGE BENEFITS

Gallagher Fuel Systems have just released a product that makes visible, via any internet enabled device, real-time transaction information from any dispenser.

CEO Richard Coxon said Gallagher saw the opportunity to lead the industry in the migration to cloud based data management systems.

“We see the future where business is managed with facts and data,” he said.

“These days, customers have great expectations of integration, and to be connected to the world via a portable device. We see our transition into making a dispenser part of the Internet of Things as a crucial element in enabling us to create a variety of solutions into the future.

“An authorised service provider (ASP) can access diagnostic information directly from the dispenser regarding the state of an “out of order” dispenser. This will better utilise individual skill-sets and tools of our ASP, and question the typical hose contract concept.

“Data Centre will challenge the status quo by reducing overall maintenance costs with a planned and pro-active approach to the existing service model.

“It’s about getting both parties working together to use the Data Centre as a platform for a pre-emptive, fact based, service contract.

“Dispensers will no longer be mysterious things that pump fuel from the ground as their status becomes visible to our customers. With a secure login, users can easily see the status and operating level of every dispenser in their network, from anywhere.

“The shifting of traditional computing based products into the cloud base has brought a whole new language into our workplace, and a major shift in the software skills required.

“I believe we will see a strong uptake of the product. It will be a challenge to prioritise customisation ideas generated once the product becomes second nature.”

Gallagher CEO Richard Coxon

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Petroleum equipment and services

Action Installation & Services

ELGAS SWAP’n’GO®

Action Installation & Services was formed in 2006 when Michael Mintilakis and Ron van der Meer decided to create an installation and service company that was second to none. Over 50 years of combined fuel industry experience and knowledge has enabled them to build a business which continues to lead change in the downstream petroleum industry.

Action Installation & Services continually strive to achieve the highest standards of environmental and safety performance, through the use of well informed, highly trained people. Action currently employs 40 staff across admin, installation, pump and electronic service.

Action Installation & Services strives to satisfy the requirements and expectations of every client every time in a professional and cost effective manner. Regular reviews ensure the quality of all products and services and business operations; and that all employees have appropriate job skills training; and quality management, contractual obligations and ongoing process improvement is maintained.

Elgas SWAP’n’GO® is the leading BBQ gas exchange program brand in Australia. The program offers your business the opportunity to increase sales and profits with a very well-known and respected brand.

SWAP’n’GO® also provides your customers with fast, safe and easy transactions. Out-of-date bottles are accepted at no extra charge.

You can add to or replace your declining refill sales, and low margins, with a reliable, convenient and secure swap program that has low labour costs for you.

SWAP’n’GO® maintains a record of excellence in safety, with comprehensive staff training in the safe handling of LPG. Elgas SWAP’n’GO® is backed by a national network of refilling plants and branches to ensure that your business receives quality service. SWAP’n’GO® also creates a massive summer stockpile to provide uninterrupted service during the seasonal peak periods.

Contact Elgas today to become a SWAP’n’GO® dealer.

Contact: Steve Crispin Brown Phone: 1300 785 425 Email: stevecb@actioninstall.com.au Web: www.actioninstall.com.au

Phone: 1300 652 003 Email: swapngo@elgas.com.au Web: www.elgas.com.au/swapngo

Cardtronics

Gallagher Fuel Systems

When you see an ATM in a supermarket, convenience store or Petrol location, there’s a good chance it’s from Cardtronics, a proud supporter of the convenience, café and fuel industries.

Cardtronics understand the needs of a variety of establishments and the commercial environments that retailers in the P&C channel face.

Cardtronics know that you need your ATM up and running without any issues to service your patrons and provide them with safe and easy access to cash.

For your business premises a Cardtronics ATM will mean more customers with cash to spend in store, reduced eftpos fees, 24-hour service and support.

It is a fact that a percentage of the cash withdrawn from a Cardtronics ATM is spent on the premises, which will improve your revenue streams.

At Cardtronics we know from proven experience that an ATM can deliver more sales to your business. If you want to create more foot traffic in your business, an ATM does that.

Cardtronics is Australia’s largest independent ATM provider and part of the global Cardtronics brand. We operate a real 24 hour service: We operate our own technically trained help desk, offering nationwide support with a national network of spare parts warehouses and dedicated in-house technicians.

Gallagher designs, develops and supplies leading fuel dispensing systems, making fuel systems simpler, smarter, safe and more cost effective.

Gallagher’s innovative PULSE fuel dispenser range combines advanced technologies with stringent Vapour Recovery Compliance in an intelligently designed modular pump to meet your needs.

Gallagher offers reliable products, remote monitoring and product serviceability to solve the daily challenges of forecourt owners. Designed with current and future needs in mind and employing innovative electronics, corrosion proof metal work, Gallagher utilises Tatsuno’s world leading accurate metering systems.

Experts in Vapour Recovery, Gallagher has achieved world-first TUV certification for a centralised vacuum VR system and is the only company offering both Centre and In-Pump systems.

With a true understanding of the Australasian market, Gallagher is on the spot and working collaboratively to create the right solution for each customer, be it a customised ‘one off’ tailored product or a full production run.

Phone: 1300 305 600 Email: sales@cardtronics.com.au 64

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Contact: Derek Hjelm, Business Development Manager Australia Phone: 0424 164 814 Email: derek.hjelm@gallagher.com Web: www.gallagher.com

SUPPLY-FIND

Flowsell Flowsell, providers of an innovative gravity-based drink merchandising system, say that when it comes to saving staff time, managing stock and increasing sales, “it’s all about gravity”.

Cool rooms with flat shelving, incur a range of ongoing and unnecessary costs.

By comparison, Flowsell’s drink merchandising system, reduces labour costs removing the need to double handle products and continually face up product.

The system also ensures proper FIFO (first in, first out) stock rotation, reducing product wastage and – better still – fridges maintain an attractive, fully stocked appearance as customers buy throughout the day.

The Flowsell full rack drink system is used extensively in all areas that retail drinks from a cool room.

This includes service stations, convenience stores, bottle shops and function centres. Other options available from Flowsell include a specialised Retrofit Bottle Slide Kit. This kit enables a customer to convert an existing flat shelf into a gravity feed system.

This system has been successfully used in convenience stores, bars, sporting clubs, cafes, bakeries, fast food outlets and anywhere that has a fridge with flat shelves.

Flowsell also supplies a gravity feed milk trolley for use in supermarkets with a dedicated cool room.

Free your staff to deal with customers in store and let gravity do the grunt work. Contact Flowsell on www.flowsell.com.au or Ph: 03 9708 2276 to find out how you can start saving today.

10 Sonia Street, Carrum Downs, VIC 3201 Phone: (03) 9708 2276 Fax: (03) 9708 2279 Hours: Mon - Fri: 9am - 5pm http://www.flowsell.com.au

Advertisement -13- C&I Dec-Jan 2018.pdf 1 14/11/2017 4:37:11 PM

Gascorp Pty Ltd – Budget Petrol Budget Petrol, established in 1985 is one of the oldest and largest groups of independent service stations in NSW, with over 60 locations in the Sydney Metropolitan area. Our Retail stores strive to provide our customers with Quality Fuel at Budget Prices.

Our Wholesale arm – Gascorp Pty Ltd offers Independent operators a business model which enables them to run their own business without interference, while utilising the backing of a competitive, professional and reliable brand.

We offer competitive Mobil supplied fuel prices, Valvoline Oil, LPG Supply, In Store Programs, ATMs, Banking Partners and Environmental Regulation Support. We also operate our own Fuel transport company which allows us to offer the highest levels of service for fuel deliveries and logistics.

Global Data Solutions for the Retail Petroleum Industry

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Contact: Diann Melas Phone: (02) 9564 2355 Email: fuels@gascorp.com.au Web: budgetpetrol.com.au

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To be listed here, please contact Safa de Valois on 0405 517 115 or email safa@c-store.com.au

www.informedsources.com December 2017/ January 2018 | C&I | www.c-store.com.au

65

PRODUCT NEWS SUPPLY-FIND

North Cross Australia Pty Ltd North Cross Australia Pty Ltd is a multi-disciplinary firm that has offered a wide range of services to the Service Station Industry since 1990.

Our body of work is impressive and ranges from design, construction, civil, environmental, specialist petroleum services, demolition and local & statutory authority compliance.

We have worked with property owners and site operators for: • Underground Petroleum Storage System (UPSS) compliances.

• Fuel System Modifications.

• Design, Installation and Commissioning of new Fuel Systems.

• De-commissioning and Demolition (Unrestricted Licence) of existing fuel systems (incl Tank Removal or Abandonment).

• Asbestos Removal.

• General Construction Work.

• Civil Work.

• Environmental and Remedial.

North Cross Australia Pty Ltd ABN 30 130 834 329 Unit 14, 54 – 60 Links Rd, St Marys NSW 2760 Phone: (02) 9673 4004 Fax: (02) 9623 5823 Mobile: Norman Badaoui 0401 564 566 Email: norm@northcross.com.au Web: www.northcross.com.au

Other suppliers Abacus Stocktaking Services Pty Ltd Accor Action Installation & Services Pty Ltd Active Eye Advanced Lighting Technologies Australia Inc Aitken Rowe Testing Laboritories PtyLtd Augusta Properties AusSport Pty Ltd Australian Enviro Services B&B Industrial Benchmark Business Sales & Valuations BP Australia Caltex Australia Capricorn Society Ltd Cavvanba Consulting Pty Ltd Coffey Environmental Services Commercial Indemnity Pty Ltd Compac Sales Pty Ltd Conservelec Pty Ltd Douglas Partners Earth Air Water Consulting & Monitoring P/L ECL Group Energy Action Environmental Monitoring Solutions Pty Ltd Envirotank Pty Ltd Envirowest Consulting Pty Ltd EquipCo ETP International Pte Ltd F&M Supplies Fuel Data Solutions Fuelgear Geo-Logix Pty Ltd

Gilbarco Australia HMC Pty Ltd Intertek Testing Services Jeffery & Katauskas Pty Ltd Jon Jen Trading Pty Ltd Leighton O'Brien Pty Ltd Liberty Oil Liquip International Pty Limited Metro Petroleum Mobil Oil Australia MPHP Architects Pty Ltd MTAA Superannuation Fund Pty Limited North Cross Australia Pty Ltd Northern Petroleum Equipment Services Pacific Guage Park Pty Ltd Perich Constructions Pty Ltd Perisale Australia Pty. Ltd. Petroleum Tank Technology Precision Stocktaking Services Puma Energy RCA Australia Pty Ltd SGS Australia Pty Ltd Spill Station Australia Pty Ltd Tank Solutions Pty Ltd Tennco Pty Ltd The Remediation Group Trans Tasman Energy Group Trax Retail Solutions Unigas Pty Ltd United Petroleum Urth Energy Valvoline Wayne Fuelling Systems

Shipman King Pty Ltd Shipman King Pty Ltd is an Australian designer, manufacturer and distributor of equipment for the service station forecourt industry.

Under their ESKAY brand, Shipman King’s long history has enabled the company to become a major supplier of this equipment throughout Australia, New Zealand and the Pacific region.

With an extensive product range and ability to service the whole of Australia, Shipman King is truly your one stop shop. Australian owned, Shipman King’s product range includes: • Fill Adaptors and Caps, Dip Cap Assemblies • Upflow Vents, Pressure Vacuum Vents • Dip and Fill Product Markers • Vapour Recover Equipment, Stage 1 and 2 • Overfill Prevention Valves complete with aluminium tube ready for retro fitting • Monitoring Wells and Ground Boxes • Durapipe PLX Polyethylene Piping System • Underpump Containment Sumps and Browning Spill Safe Boxes • Adblue Equipment • Aluminium and Composite Manway Covers • Aboveground Tank Equipment For a complete product range please visit Shipman King’s web site.

Contact: Nigel Howlett Phone: (03) 9459 9900 Email: sales@shipmanking.com.au Web: www.shipmanking.com.au

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Petroleum equipment and services C&I Supply-Find is a detailed listing of suppliers of products for resale, business services, maintenance providers, and manufacturers and suppliers of capital equipment for shop and forecourt. It is included in every issue of C&I Retailing Magazine, six times per year to a circulation of around 27,000 businesses.

The rate for posting in C&I Supply-Find is $2,950 + GST for one full year (six print issues and 12 months on our website). Bookings are a minimum of one year. For a 1/2 page, the rate is $5,900 + GST per year.

For all advertising enquiries with C&I Media, please contact

Safa de Valois

Mobile: 0405 517 115 Email: safa@c-store.com.au

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ESPECIALLY COFFEE! Luv’em is NOW available nationally, contact us directly to place your order. Stock code 10011.

To stock Luv’em Mini Donuts in your C-store, contact Liz Hamilton on: sales@theminidonuts.com 1 300 88 55 12 0426 667 664

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