C&I Retailing Magazine October-November 2020 by The Intermedia Group

OCTOBER/NOVEMBER 2020

Now available in Singles!

FASTEST GROWING MAINSTREAM WET CAT FOOD BRAND (32.1% MAT*)

*Source: Nielsen Scan Grocery Data MAT 2/08/2020

FELIX NOW AVAILABLE IN SINGLES Â®

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ITEM CODE

METCASH CODE

12458392

991036

1245841 1 12458766

1 Additional Single Serve Wet Cat Product to shopper basket is worth $6M

PRODUCT DESCRIPTION

SIZE

BARCODE

RRP*

FELIX® AS GOOD AS IT LOOKS Beef 85g

85g

9300605097162

$1.30

991028

FELIX® AS GOOD AS IT LOOKS Tuna 85g

85g

9300605097117

$1.30

992118

FELIX® AS GOOD AS IT LOOKS Kitten Chicken 85g

85g

9300605097261

$1.30

*Recommended retail price only. **Source: Nielsen Scan Grocery Data Australia MAT To 03/2020 / Nielsen Australia Homescan Data MAT to February 2020/ US 2018 Product Concept Research.

CONTENTS

EDITORIAL

OCTOBER/NOVEMBER 2020

16 A cautious return to normal fueling a renewed optimism

08 FACE TIME

Coral Grace, Nestlé

12 STORE REVIEW Ampol, Concord

16 CATEGORY FEATURE: CARBONATED BEVERAGES How brands keep sales popping in P&C

20 CATEGORY FEATURE: FOOD ON THE GO The category is evolving with changing consumer preferences

24 CATEGORY FEATURE: GADGETS AND GIFTS

How P&C stays a step ahead of consumer needs

28 SPECIAL FEATURE: ELECTRIC VEHICLES Why they are the future and why petrol retailers shouldn’t fear

32 PRODUCT RANGING

here’s no getting around the challenges the pandemic continues to throw at all industries. No doubt for many of us, for a range of reasons, 2021 can’t arrive soon enough. However, outside of Victoria – for obvious reasons, a sense of cautious optimism is beginning to creep into the general consensus. Be it the warmer weather adding a renewed gratitude for the freedoms still allowed, or a reminder we will get through this, there has been a recent uplift in sentiment. It is in this spirit of looking forward that we bring you this issue of C&I. Inside, we explore the summer-staple of carbonated beverages and how the food on the go category has evolved to meet changing consumer preferences. We also speak with distributors to see how P&C keeps one step ahead when it comes to stocking essential gadgets and gifts for the road and business trips we hope will soon resume. Not to be missed, too, is our special feature on the growing demand for electric vehicles in Australia. As we found, it is more a question of when, not if, market demand will drive these into the mainstream and look at the opportunities this presents for petrol retailers.

Also embracing a new chapter is Ampol, whose first rebranded store in Sydney’s Concord is covered in our Store Review. While Nestlé’s Coral Grace walks us through a day in the life – and how she finds the boundless energy for her side gig as a fitness instructor. I would also like to take the opportunity to thank Jeff Rogut for his valuable contributions to C&I throughout his tenure as AACS CEO. Mr Rogut, who last month announced he would be retiring from the role in November, has been a tireless champion for the industry and a pillar of knowledge and his positive impacts on P&C can not be underestimated. A small sample of his achievements can be found in industry news, as well as a summary of the AACS State of the Industry Half Yearly Report. From all of us at C&I, we wish Mr Rogut all the best for the future. Stay safe and bring on 2021, Kind regards, Naomi White

Our revamped section brings you the latest npd

48 OPINION

Skye Jackson, Darren Park and Jeff Rogut

52 INDUSTRY NEWS

AACS, Optus and Pacific Optics’ new partnership and vaping news

60 PETROL NEWS

Dan Armes and the latest updates

64 SUPPLY FIND 4 October/November 2020 | C&I | www.c-store.com.au

Safa de Valois

James Wells

Keith Berg

Ben Curtis

Jeremy Gough

PRIME TIME

Uncle Tobys Oat Slices Shake up your daily oats with Uncle Tobys new Oat Slices. The new range of perfectly portioned 70g, single serve Oat Slices are a new and delicious way to enjoy the nutritious superfood while on the go. The ‘deliciously satisfying’ snack is available in two flavours, oven baked to perfection: Apple & Cinnamon and Choc Chip. Delightfully soft and crumbly and full of Uncle Tobys Oaty goodness, they are hunger busting, guilt free snacking that pair perfectly with a coffee. Made with more than 50% wholegrains, they are also high in fibre and contain no artificial colours or flavours. Even better, you can help support local and Australian manufacturing and farmers with every bite. The slices are available in 7-Eleven, Coles Express, BP, EG, Night Owl, Puma, NSG, IGA Express and through all major wholesalers, RRP $3.50.

Paddle Pop Koala Choc Caramel There’s a tasty new way to help out a koala this spring, with Paddle Pop supporting wildlife rescue organisation WIRES through its latest release. The recently launched koala-shaped stick ice cream is a delicious mix of chocolate and caramel flavours, made with Australian dairy. Not only is it fun and tasty, but as part of the brand’s recently announced two year deal with WIRES, it will also help support the organisation’s efforts to protect koala populations across Australia, which have been significantly impacted by bushfires, as well as threats to their habitat and ongoing health issues. Three key areas supported through the partnership, including WIRES work with a koala rehabilitation facility, a health hub at the University of Sydney and a water project. The ice cream is available now in petrol retailers, Coles and IGA stores nationally.

Published by C&I Media Pty Ltd (A division of The Intermedia Group) 41 Bridge Road (PO Box 55) Glebe NSW 2037 Tel: 02 8586 6292 Fax: 02 9660 4419 E: magazine@c-store.com.au

Publisher: C&I Media Pty Ltd Safa de Valois Commercial Director: Safa de Valois Editorial Director: James Wells

The Intermedia Group takes its Corporate and Social Responsibilities seriously and is committed to reducing its impact on the environment. We continuously strive to improve our environmental performance and to initiate additional CSR based projects and activities. As part of our company policy we ensure that the products and services used in the manufacture of this magazine are sourced from environmentally responsible suppliers. This magazine has been printed on paper produced from sustainably sourced wood and pulp fibre and is accredited under PEFC chain of custody. PEFC certified wood and paper products come from environmentally appropriate, socially beneficial and economically viable management of forests. The wrapping used in the delivery process of this magazine is 100% biodegradable. DISCLAIMER This publication is published by C&I Media 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.

Violet Crumble Chocolate Honeycomb Milk

Robern Menz and Bickford’s have teamed up for a tasty collaboration, releasing a Violet Crumble Chocolate Honeycomb flavoured milk. The 500ml milk is the only nationally available choc honeycomb milk. Produced in Bickford’s Salisbury South plant, it also uses locally sourced milk from South Australian based Golden North. Robern Menz CEO Phil Sims said it was sure to be a hit with fans. “Violet Crumble is an iconic Australian brand and flavoured milk is part of Australian pastime, so we knew that chocolate, honeycomb and milk would make sense.” It’s available now in Coles Express, Caltex stores, Drakes and IGA supermarkets nationally, as well as Romeo’s and Foodland supermarkets in SA.

Level Lemonade now in Raspberry Level Lemonade is back with a new flavour, set to shake up the ‘better for you’ drinks sector. The premium carbonated lemonade range, launched last year, has already sold more than 700,000 bottles and is proving popular thanks to its formula of boosted nutrients. Each bottle contains 160mg of magnesium and 100% of the RDI of Vitamin C, while also being 97.5% sugar free. The new Lemonade & Raspberry addition joins existing flavours Lemonade Original, Lemonade & Pineapple and Lemonade & Orange. Sports Dietitian and exercise physiologist Caitlin Read said both nutrients were important for fighting fatigue. The new Lemonade & Raspberry is available nationally now at Caltex and Eurogarage stores and will launch online this month.

Editor at Large: Keith Berg

Features Editor: Jeremy Gough

Editor: Naomi White

Graphic Designer: Adrian Tipper

Account Manager: Ben Curtis

Contributor: Simon King

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 © 2020 - C&I Media Pty Ltd.

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October/November 2020 | C&I | www.c-store.com.au 5

11-12

AUGUST 2021

Melbourne Convention & Exhibition Centre C&I Expo brings retailers and suppliers together over two big days of business. The retailer audience consists of owners and operators of convenience stores, service stations, independent supermarkets, corner stores, newsagents, mini marts and foodservice stores that have a convenience offer. Suppliers and wholesalers are also more than welcome to exhibit and attend. Visitors experience the latest in convenience products, services and merchandising.

For more information visit www.candiexpo.com.au

RESCHEDULED DATES For Australiaâ&#x20AC;&#x2122;s largest and most important trade event for Convenience retailers

Media pty. LTd.

ORGANISED BY: Interpoint Events Pty Ltd in conjunction with C&I Media Pty Ltd and the Australasian Association of Convenience Stores 41 Bridge Road Glebe NSW 2037 Ph: 1300 789 845 | Fax: 02 9660 4419 Email: exhibition@c-store.com.au www.c-store.com.au

FACE TIME Coral Grace says her current role is her most rewarding yet.

BOUNDLESS ENERGY

How dual passions for business and fitness help Nestlé Senior Business Manager, Coral Grace kick goals

was born in England but we moved to Australia in 1994 because my Dad was in the Navy. We were posted to Sydney then Perth two years later, where I did most of most of high school and university. I studied a double major in marketing and PR at Edith Cowan University – it’s funny because I’m not in either now – I’m in sales! I worked on the shop floor of Coles for 10 years during school and uni and while there I struck a chord with a Gillette area manager and became a Gillette sales rep. After about six months an assistant brand manager job for Gillette opened up in Melbourne and I went for it. Perth is lovely, but from an FMCG career standpoint in marketing there are not a huge amount of opportunities available. So at 21, I moved to Melbourne and seven months in, Procter & Gamble announced they were buying out Gillette. A year later they moved us to Sydney, where I worked as a brand manager for Gillette for a few years before they announced they were moving marketing to Singapore. I didn’t want to go to Singapore, as much as it was a great opportunity, I felt like I’d moved a lot already. I was single and really wanted to plant some roots in Sydney and try and make a go of it here. 8 October/November 2020 | C&I | www.c-store.com.au

I work at Fitness First and teach spin and body pump classes most mornings and some evenings.”

- Coral Grace, Nestlé Senior Business Manager

P&G offered me a job in sales and I just fell in love with it. They put me in a more junior role to see if I’d like it. I moved up the sales ladder really quickly. Within about four years I went from state to national to channel manager, predominantly looking after indies, Costco, non-traditional trade and discounters like ALDI. After serving 10 years at Gillette/P&G combined, working in field and marketing, category and sales, I got a call from Nestlé saying they were looking for someone who knew Metcash really well. They said ‘it’s a big role, their coffee business, seeking to get growth and challenge the customer on their thinking in this space and we need someone who knows Metcash really well and can get things done’. P&G is a great company and I learnt a lot, you get a lot of responsibility at an early age but I felt I needed a change and I’d heard great things about Nestlé. I did three years in the coffee division as a business manager for Metcash and I’ve spent the last three years in Nestlé Purina Petcare, where I helped establish our ALDI, Costco and Amazon businesses. For the past two years I’ve been the channel manager for Indies and Impulse. Nestlé Purina Petcare has not only exceptional Petcare

FACE TIME FEATURE brands, but has a wonderful culture and the people I work with are outstanding in talent, experience and engagement. It’s the work I’ve done in the last two years growing Purina’s presence in the independent grocery and convenience network that I’m really proud of. We’re on a really good growth trajectory at the moment. Petcare is in a really interesting place as we see the humanisation of pet care take over the category. Australians love their pets and we are seeing an increased desire of pet owners to spend more on their fur-babies than they do on themselves and the category is growing exponentially. More households in Australia have a pet than they do kids. The pet population of Australia is booming, plus 6% on MAT and accelerating. My role as a channel manager is ensuring my team of two very high performing senior account managers who run the daily operations of the business and I are working together towards an aligned joint vision and getting support from the business on strategies to meet our objectives. A lot of my day is making sure I’m communicating the right information from the leadership team and that we’re making sustainable investment decisions. A lot of ‘aligning’… my eyes hurt with most of my day recently on video conference calls! Purina has really supported its people in the new virtual working environment and I’m proud that the team are working very collaboratively cross functionally… remotely! I’ve definitely stepped out of the operations side of things in the last couple of years and focussed my energy on people. I gained

She is also enjoying mentoring her team and growing their skills.

some experience in people management at P&G, but I was 24 (now 37). I don’t think I really knew what people management was back then. I probably thought it was telling people what to do “managing for a result”. Whereas now, I hope my team today see me as their leader, I identify opportunities in my team, I’m seeing areas where they want to grow and develop, or I’m seeing a barrier to them achieving their next step or next role. I’m having some really nourishing career and development conversations which is great as you hope to see your team progress. I find it very rewarding helping people. I think that’s why I also enjoy my second, part time job. I completed a diploma in exercise science at college while I was studying at uni and for the past 14 years when not selling razors, coffee or pet food I’ve been teaching group exercise. It’s really awesome to see people get stronger and feel better about themselves.

It’s the work I’ve done in the last two-years growing Purina’s presence in the independent grocery and convenience network that I’m really proud of.” - Coral Grace, Nestlé Senior Business Manager

I work at Fitness First and teach spin and body pump classes most mornings and some evenings – so my days start at 5am and finish about 6.30pm before I come home to my family. My Nestlé colleagues roll their eyes often, as I’m quite high energy early in the day. The first team meeting of a morning I’m jumping out of my chair and everyone is still looking like ‘I haven’t had my coffee yet’. I’m very lucky that Nestlé supports my passion and I think they know it helps get the best out of me. Most recently my life has evolved further when I met my partner three years ago and he has two gorgeous sons aged 14 and 10 who love their dad and they all love sports too! So we are very active and busy household! I’m not sure how I filled what felt like long days before we moved in together two years ago, with now school drops offs, extra meal prep, grocery trips and seemingly endless washing of sports uniforms! Being an honorary step mum has brought so much joy to my busy life and I can’t imagine life without them.

She is also a part time fitness instructor

I’m very proud to work for Nestlé Purina Petcare and I look forward to my future with the company and whatever life has in store. Bring it on! C&I October/November 2020 | C&I | www.c-store.com.au 9

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FEATURE STORE REVIEW

The new Ampol site features Amplify Premium Fuels.

AMPOL RETURNS TO THE FORECOURT O

The first rebranded Ampol site has opened in Sydney

n a busy stretch of Sydney’s Parramatta Road, as the motorway snakes east towards the city, commuters have recently been treated to the first taste of Ampol’s return to Australian forecourts.

The site, in the inner west suburb of Concord, was chosen as the first to feature the new Ampol signage, as the company works to transition 1,900 sites nationally following the termination of a licensing agreement by US company Chevron for the use of the Caltex name in Australia. It’s the first time the Ampol brand has been seen in Australia in 25 years. As a flagship Foodary site for Ampol and given its prime position at 87-89 Parramatta Road, it was a natural fit as the inaugural site, said Executive General Manager, Retail, Brand and Culture, Joanne Taylor. “Concord was one of the first flagship Foodary stores and it’s also a great site in Western Sydney representing our heartland.” 12 October/November 2020 | C&I | www.c-store.com.au

Concord was one of the first flagship Foodary stores and it’s also a great site in Western Sydney representing our heartland.” - Joanne Taylor, Ampol

Ms Taylor said Concord represents the new look and feel of the brand and, combined with Ampol’s Foodary offer, makes for an unbeatable retail experience for customers. Beyond the signage, the 1756sqm site also boasts a sleek forecourt design with wide bays and ample space for refuelling, as well as Ampol’s fresh petrol and diesel offer in Amplify premium fuels. Convenience shoppers will also find abundant parking, a rare distinction for the area. Inside, the store has a bright and appealing modern design, with an ordered display of offers that is easy for shoppers to navigate. On offer is a wide range of ready-made food options, covering everything from Big Crunch Sushi to hot pastries, salads and wraps. There’s also food for later and fresh, barista made coffee using 100% Arabica beans, as well as motoring and tech accessories, grocery staples and treats such as ice cream, a dairy fridge, confectionery, snacks and more.

STOREFEATURE REVIEW The store will also feature an area of outdoor stools for commuters to enjoy their goods, but this area is currently not in use for Covid safety reasons. “At Concord, we have a Boost shop in-store, which provides another great alternative for customers looking to grab something quick and fresh on the run. “We have recently expanded our range to include even more grocery items, as well as non-food essentials, making sure that our customers have all the essential items that they need. This includes our grab-and-go sandwiches, salads and other items to top up, whether it be a loaf of bread or a carton of milk, to take home while you’re on the run.” Another distinction for the Concord site is the change in demographic that has been brought by changes to the surrounding road infrastructure, including the recently completed WestConnex motorway. Locals, too now, are frequenting the store for grocery top-ups and refuelling.

Ms Taylor said early indications from the Concord site, as well as the nearby Granville site, which was rebranded around the same time, has reaffirmed the strong sentiment for the Ampol brand, which was first established in 1936. “Feedback from customers has been great, both from customers who know of Ampol and would have shopped at an Ampol store in the past, as well as new customers. We’ve had a lot of great feedback about the look of the brand, that it’s modernised and really steering our company into the future. “The fact that the A leans to the right is all about us symbolising the progress that we have made and will continue to make as our company evolves.

The fact that the A leans to the right is all about us symbolising the progress that we have made and will continue to make as our company evolves.” - Joanne Taylor, Ampol

“There is a lot of positivity around the rebrand, as well as Amplify, our premium fuels. Even from our customers who may not have known Ampol, there’s excitement around being an Australian-owned petrol and convenience company that’s really part of and supports the local community.”C&I

“The interesting thing about the Concord site is some of the changes to the road transport there with the motorways being built. We now are able to communicate to commuters who are using Parramatta Road and therefore it’s an important site for us,” Ms Taylor said. “The new Ampol signage, it’s a beacon for travelling consumers to look and see the change, but also the Concord site is increasingly becoming a local place to shop and refuel the car and the body with the great offer that we have in the Foodary, and really that is a result of the change in traffic given the development that has occurred around that area.” The store will be one of a handful transitioned this year, before the company accelerates its rebrand from next year, when stores will be rolled out metro area by area and state by state, with the aim of completing all sites by the third quarter of 2022. It boasts a large forecourt with ample space for refueling.

The store is also a flagship Foodary site.

October/November 2020 | C&I | www.c-store.com.au 13

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SAVE THE DATES ADMISSION IS FREE! ORGANISED BY: Interpoint Events Pty Ltd in conjunction with C&I Media Pty Ltd and the Australasian Association of Convenience Stores 41 Bridge Road Glebe NSW 2037 P: 1300 789 845 F: 02 9660 4419 E: exhibition@c-store.com.au W: www.c-store.com.au

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CARBONATED BEVERAGES

WHY SALES ARE POPPING IN P&C

Changing consumer habits during the pandemic has boosted sales in P&C.

How COVID-19 has continued to help sales pop in petrol and convenience. Since COVID-19 we have seen improved performance in bigger pack formats such as 1.25L Carbonated Beverages.”

- Carolyn Baveystock, PepsiCo

arbonated beverages is one of the strongest performing categories for petrol and convenience. It’s also one that crosses almost all consumer segments and consistently sells well across seasons.

IBISWorld found the two major players in the category are CocaCola Amatil and Asahi Holdings, who together accounted for an estimated 55.4% of industry revenue in 2019-20 – CCA at 40.2% and Asahi at 15.2%.

This success is down to more than simply fulfilling a consumer need. The category has faced significant challenges in recent years, notably from consumers shying away from high-sugar products and the move towards reducing single-use plastic packaging. But manufacturers are continuing to stay on the front foot, engaging consumers through innovative and betterfor-you NPD, as well as adapting their packaging to incorporate more sustainable options. And P&C is proving a crucial channel for helping drive awareness for both among consumers.

No other player, they found, held more than 5%. However, both companies were also found to have decreased their overall market share in the last five years, due to pricing competition and falling sales volumes.

The Australasian Association of Convenience Stores’ half yearly report, complied by Convenience Measures Australia, found carbonated beverages had experienced a MAT growth of 3.2%, compared to the overall packaged beverages category at a more modest growth of 0.1%.

Innovation is also expected to grow over the next five years, especially in healthier beverages with reduced sugar and those featuring low to no artificial colours, flavours or preservatives.

While research company IBISWorld’s Soft Drink Manufacturing in Australia report, published in May, found the category was worth $4 billion in Australia. It also forecast an annual growth for 2015-25 of 12.9%, or $513.1 million and an estimated profit margin of 0.2%. The report also found that drink sales volumes had slowed over the last five years, largely due to rising health concerns over high-sugar drinks. To combat this, it found, manufacturers had undertaken ‘aggressive’ discounting strategies. At-home carbonated systems, such as SodaStream, has also disrupted the market, largely due to their appeal to greenconscious consumers. 16 October/November 2020 | C&I | www.c-store.com.au

The increase of private label products, which is expected to grow significantly in the next five years, has further hampered this industry concentration, especially in supermarkets, with chains such as ALDI stocking 95.0% private label products.

Convenience stores and supermarkets were also forecast to remain the main markets for category sales. Coca-Cola Amatil General Manager, Petrol and Convenience, David Burton, said CCA’s NARTD portfolio performed well across all channels, but P&C was an especially important channel for the category. “It is the opportunity for consumers to experience and engage with our great products while they are on the go. Beverages are a significant part of the channel, being present in 68% of shopper missions (Source: AACS SOI 2019),” Mr Burton said. “Packaged beverages enjoyed a strong resurgence in the P&C market in 2019 and have been a strong part of the channel more

CARBONATED BEVERAGES recently, as shoppers seek take home options in the COVID-19 impacted market.” CCA’s strong presence in the category is also driven by a mutually beneficial relationship with its retail clients. “In the Carbonated Soft Drink category, we partner with our P&C customers for a circa 75% share of the channel sales value, with Coca-Cola Trademark products at the forefront,” Mr Burton added. For CCA, consumer purchases tend to peak mid-morning and drinks are often combined with other products and sale spikes correlate with meal accompaniments. A continued trend in the category is consumer preference for lower sugar options. A peer reviewed study, Sales of SugarSweetened Beverages in Australia: A Trend Analysis from 1997 to 2018, published in Nutrients, found that Australians are consuming 30% less sugar per capita from non-alcoholic, waterbased drinks than we were in 1997; equating to 32 teaspoons of sugar per person, each year.

“Low sugar and no sugar options are certainly growing in popularity. Coca-Cola No Sugar is twice as large in P&C as its nearest competing brand. It has gone from strength to strength and is bigger than Coke Zero, which it replaced.” “77% of Coca-Cola Amatil’s soft drink brands have a low or no sugar option. These products form an important part of our strategy to offer consumers the choice and variety that they want. “Amatil measures the amount of sugar per 100ml in its nonalcoholic beverage portfolio in all countries of operation and aims to reduce total sugar per 100ml by 10 per cent in Australia and New Zealand by 2020. Amatil has joined with industry peers in Australia to set an industry-wide pledge of a 20 per cent reduction in sugar per 100ml across the non-alcoholic beverage portfolio by 2025.”

Beverages are a significant part of the channel, being present in 68% of shopper missions.” - David Burton, CCA

The carbonated drinks category also has a strong distinction in brand loyalty, which has helped steer CCA’s brands through the unpredictability the pandemic has thrown at once entrenched consumer purchase patterns.

While in 1997 we consumed an average of 83L of sugary drinks per person, per year, by 2018 we had cut back to 61L per person. In contrast, in 2018 Australians consumed 88L of no/low sugar options, such as water or sugar free drinks.

“Consumers in the Carbonated Soft Drink category are highly loyal, and we know we are entrusted to maintain the love for the brands we have in this category, which includes the most recognised brands in the world.”

The industry is taking note. In 2018, The Australian Beverages Council ushered in a pledge for the (non-alcoholic) beverage industry to commit to an industry-wide 20% sugar reduction by 2025.

“In P&C, value offers are important to shoppers but that doesn’t have to mean price. Our channel and the products in it will need a solid proposition in coming months as the economy continues to tighten due to the ongoing impacts of COVID-19.”

Mr Burton agrees lower sugar options is an important consideration for consumers and one CCA is addressing through their offerings.

Another consumer trend has been a rising environmental consciousness and a move away from single-use plastic

Pepsi Max has launched a summer-friendly Mango flavour. October/November 2020 | C&I | www.c-store.com.au 17

CARBONATED BEVERAGES

The P&C channel has been critical in driving our onthe-go business continuity through COVID-19.” - Carolyn Baveystock, PepsiCo

bottles, which CCA has been pro-active in addressing by adapting their packaging. “We continue to be focused on achieving our 2020 sustainability goals including our sustainable packaging targets. We are already producing seven out of 10 of our plastic bottles in Australia from 100% recycled plastic, and in June this year reached our 50% recycled PET target on an annualised basis in Australia.” “Coca-Cola Amatil was the first bottler globally to produce 600ml (#1 CSD pack format in the P&C channel) in commercial quantities from fully recycled PET. All of our bottles in all brands, 1lt and under, are now fully produced from recycled PET, reducing tens of thousands of tonnes of virgin plastic from the environment.”

CCA has made sustainable packaging a focus.

Marketing Manager for PepsiCo Carolyn Baveystock agreed the channel was crucial for driving sales and had been a particularly important tool for keeping consumers engaged with their brands throughout the pandemic. “The Petrol and Convenience channel is very important for us particularly for our major brands, Pepsi Max and Gatorade. The Petrol and Convenience channel is highly impulsive and lends itself to cater for unique brand activations in-store, which is crucial for driving visibility of our brands and new products,” Ms Baveystock said. “P&C has been critical in driving our on-the-go business continuity through COVID-19. During the pandemic, many on-the-go channels effectively closed, and supermarkets were overrun with panic buying. “The channel performance remained stable and consistent. A report commissioned by Convenience Measures Australia at the peak of the pandemic detailed that 47% of supermarket shoppers were using P&C stores for non-fuel items during this period,” she said.

AT A GLANCE • Consumers are opting to shop in P&C outlets rather than larger supermarkets. • They are also shifting to larger pack sizes. • Lower sugar options continues to be a strong focus in the industry. • Consumers are demanding more sustainable packaging and moving away from single use plastic.

starting to consume what they can. Is it for comfort, is it COVID-19? Who knows. But we have seem an increase in sales in our CSG range,” Mr Xenos said.

A recent consumer trend PepsiCo identified was the move towards larger pack purchases, as more people opted to consume these in the home, rather than on-the-go. And C-stores were now becoming a preferred channel option for these sizes, which have typically been the domain of grocery.

Olympian imports the popular Greek soda LOUX, which contain a percentage of natural juice, helping to naturally flavour the drink, lending it a different taste profile to that of traditional soft drinks, which are often reliant on sugar, sweeteners or artificial flavours. LOUX also has a sugar free range, however the move towards comfort purchases has temporarily shifted consumer preferences from this to their core LOUX range.

“Since COVID-19 we have seen improved performance in bigger pack formats such as 1.25L Carbonated Beverages (AU Convenience scan MAT to 02/08/20) as consumers are choosing to purchase products from the P&C channel that they would have typically bought in their grocery shop.”

“We have a sugar free version of Loux that’s low in GI, it has a certificate from the Diabetes Foundation, but again what we’re seeing is consumers right now are still going towards the traditional rather than sugar free. Although the sugar free is a good option, the traditional soft drinks are outselling it at the moment.”

Executive Director of Olympian Products and Distribution, Tim Xenos, agrees the pandemic has disrupted many once-predictable buying patterns. Mr Xenos also noted the trend towards larger pack and multi-pack options, as well as a recent return to more traditional offers.

“We do a lot of work in the US and European markets, and sugar free is not as big of an issue as I thought it would be.”

“In the carbonated drinks category, COVID-19 has changed it. Where it was looking like the category was going as healthy as possible, people are now taking what they can from the shelf and consuming it at home,” he said.

“Packaging that is environmentally friendly and sustainable is growing across the board. We also bring in bottled water and have moved into glass bottles in the smaller sizes and we’re finding that is making a difference, the move to glass is an advantage over PET,” he added. C&I

“Where sugary drinks were suffering a decline they’re now gaining, and finding a way back into the market. People are

18 October/November 2020 | C&I | www.c-store.com.au

Another point of difference for the brand is its glass bottles, a hit with consumers looking for more sustainable options.

C&I would like to thank Coca-Cola Amatil, PepsiCo and Olympian Products for their contribution to this article.

*No. 1 Canned Coffee brand in Japan based on 2019 sales volume. Source: Intage.

CONTACT YOUR FRUCOR SUNTORY REPRESENTATIVE ON 1800 237 727

FOOD ON THE GO

THE RISE OF READY MADE MEALS How the category’s evolution in offers has ushered in a new wave of consumers

hen it comes to eating on the run, consumers today are spoilt for choice. Once limited options have broadened to include all tastes and nutritional considerations and now cater for all day parts.

From breakfast through to late night snacks, eating on the go has never been a more satisfying experience. And the evolution is bringing in a new wave of consumers to the category, who are prepared to pay a premium for products which meet their need for convenience and taste. According to Statistica, revenue in the convenience food segment is worth an estimated AU$4.9 million in 2020. According to their figures, the average per capita consumption is 18.2kg per person and per person revenue is $194, while the average price per unit is $10.68. The Australasian Association of Convenience Store’s 2020 State of the Industry Report, compiled by Convenience Measures Australia, puts it as the second fastest growing category in convenience and grew at 11.5% last year. Petrol and Convenience is an important channel for brands not just in terms of sales, but for engaging with consumers. For The Handmade Sandwich Company the channel is a way to link with consumers seeking a satisfying meal without sacrificing time, says General Manager, Sales and Marketing, Sally Brown. “The Handmade Food Co consumer is typically ‘out and about’ looking for a premium quality lunch and/or snack with punchy flavours. “There are two types of consumers, those that have time to sit down in a café and relax and others that are on the go. Our range caters to both of these occasions, with the consumer's experience always top of mind when we develop products,” Ms Brown said. The brand services both metro and regional areas nationally, ensuring through a strong network of major distributors that regional sites also have the opportunity to stock a variety of products, which gives the brand an edge.

Youfoodz are a market leader in ready made meals.

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Another distinction is the brand’s gluten free range, introduced to reflect the increasing awareness of Coeliac disease and people choosing to eschew gluten for lifestyle reasons.

FOOD ON THE GO However their strongest performing lines are more traditional offers.

The Handmade Sandwich Co. offers convenient and nutritious options.

“Within the P&C channel the classic flavours are still the top sellers. These include the classic Everyday Café Ham, Cheese & Pickle, Chicken, Cheese & Mayonnaise and Roast Beef, Cheese & Relish Sandwiches. Not only are they great flavours but the sandwich range also has user-friendly packaging that makes it easy to eat on the go. P&C is also strong in our Everyday Café Toastie lines.” Traditional flavours are also the strongest sellers for Mrs Mac’s range of pastries, with pies and rolls driving the majority of volume and its core line of Famous Beef, Steak & Cheese and Beef, Cheese & Bacon flavours consistently big sellers. However the brand has also been at the forefront of consumer trends with its NPD. This has been seen with its new Plant Based range, developed to entice a new health-conscious consumer base into the category, said Brand Manager Sam Tomeo. “Mrs Mac’s is always mindful of continuously evolving our offer to align with emerging trends, consumer expectation and enabling our retailers to build value and entice new customers to the category,” Mr Tomeo said. “The new Plant Based range has been developed to capitalise on the growing trend of consumers reducing meat in their diets. Research shows one in three Australians are actively reducing meat consumption and Mrs Mac’s has responded by launching an innovative range to excite this consumer not engaged within category. “We are aiming to attract new customers who will get exactly what they want: a tasty and meaningful plant based pie and roll with exciting and delicious flavours.” Consumer expectations in the category have also evolved, Mr Tomeo said, with a growing demand for snacking options and a preference towards clean products. Mrs Mac’s is addressing

this, he said, through their soon to launch Special Bath Range, a premium line of pies and rolls with gourmet flavours that are free of artificial colours or flavours. This is in line with the brand’s typical consumer base in P&C, which tends to be a mostly younger demographic, who are seeking products that serve the need for both convenience and ‘better-for-you’ options. Patties Foods is another company focussing their NPD on delivering convenient meal options catering to a variety of dietary requirements in the grab-n-go sector, without compromising on taste. “We offer a delicious variety of plant-based and meat free options across our branded portfolio, including Ruffie Rustic Foods, Four’N Twenty, Patties and Herbert Adams, to cater for vegetarians, flexitarians and in some cases even vegans. This includes our firstever Four’N Twenty Meat Free Pie, which has been a great success. Australia is changing, and we’re listening!,” said General Manager of Marketing and Innovation, Anand Surujpal. “We are committed to evolving and growing our range to ensure we are keeping up with social shifts and providing options for all Australians. We will continue to offer a range that meets consumer needs and keeps our categories and products interesting.”

Demand for vegetarian and vegan options continues to grow.

Patties has also been a driver of growing the range of breakfast offers in P&C, such as their recently launched Herbert Adams breakfast range. October/November 2020 | C&I | www.c-store.com.au 21

FOOD ON THE GO Mrs Macs is tapping into the meat reduction trend with its npd.

Consumers now expect a strong food offering today not only on their commute, but also in their suburb.” - Mathew Devine, Youfoodz

“Breakfast and the morning rush are key opportunities for driving growth, with 50% of customers agreeing that breakfast is the most important meal of the day,” Mr Surujpal said. “A recent P&C consumer study also identified a new opportunity for on-the-go food, including food for now and food for later. Food for later speaks to a new audience, with consumers craving restaurant-quality, ready-made meals that are packed with fresh ingredients you can see and taste which they can buy now and eat later.” Patties is servicing this need through its Ruffie Rustic Foods range. However, its strongest performers continues to be its Four’N Twenty range. “Four’N Twenty is the branded market leader for hot, on-thego savoury food within the convenience sector. Our well-loved products draw people into stores.” “The Four’N Twenty King-Size Sausage Roll remains the number one branded product in hot on-the-go food category. Another top seller is the Four’N Twenty Traveller, with the Traveller format seeing a +40% increase in sales year on year.” “We are anticipating that Ruffie Rustic Foods will become one of our best-selling brands. This innovative new brand produces delicious, ready-made gourmet meals in the freezer category, standing out from other options when it comes to enjoying restaurant quality meals at home.”

AT A GLANCE • Consumers are willing to pay a premium for products that are both convenient and nutritious. • Vegetarian and vegan options continue to grow in popularity. • Traditional meat pies and sausage rolls continue to perform strongly. • Consumers expect a variety of options to be available across all dayparts.

Patties said their consumer insights had shown a higher demand for frozen and on-the-go products during the pandemic and were working to develop products to meet these needs. “We’re in unprecedented times, so monitoring insights during the changing climate is key to responding to consumer needs.” It’s a trend ready made meals brand Youfoodz has also noted since the onset of the pandemic, said Head of Retail Mathew Devine. “What COVID-19 has shown us, with petrol visits and volumes well down, is that getting the shop offer right is the key to driving foot-traffic, basket spend and loyalty. Consumers now expect a strong food offering today not only on their commute, but also in their suburb.”

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Aimed at the time poor and health conscious consumer, Youfoodz has carved out a niche in P&C and their core ready made meals are consistently strong performers, servicing dual needs of nutrition and convenience. “Consumers on the go are looking for healthy convenience, like the mid-week, female commuter, looking for a portion controlled, clean meal for lunch. As a leader in ready meals, the channel looks to us to innovate. We have increased category value recently by launching a Large/High Protein range, targeting the high value tradie shopper.” Mr Devine said consumers were seeking variety in the category that fit their active lifestyles. And they were prepared to pay a premium for it. “Our recent innovation has shown us that with the right offer we can grow category penetration and address more shopper missions. We recently launched 16 Breakfast lines, across subsegments of meals, smoothies, snacks, chia and granola. And in time for summer we are launching a line of chilled, eat now Power Bowls. Both category innovations are likely to be add incremental value to the category.” C&I C&I would like to thank The Handmade Sandwich Co, Youfoodz, Mrs Mac's and Patties Foods for their contribution to this article.

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For sales enquiries contact foodservice@chobani.com.au @chobaniau

GADGETS AND GIFTS

GADGETS AND GIFTS How stores maintain consumer interest in a sometimes overlooked category

A lot of work goes on behind the scenes to ensure stores are stocking the right products.

e’ve all been there – you set out for a family road trip and lose your sunglasses at a rest stop or your phone battery drops on the way to a business meeting, but you didn’t pack your charger. In these circumstances, petrol and convenience stores are failsafe, reliable saviours, providing a quick replacement without the hassle of venturing into a shopping centre, or acting as a portal on a long stretch of highway. While the majority of consumers may only consider the category when they are in need, it's important stores consistently have the right products in stock when that need arises. What customers don’t see – the careful planning, merchandising and product curation of store owners, are crucial to ensuring both these essential items are stocked and in a prominent, easy to find place. One of the biggest considerations for stores when ranging gifts and gadgets is product placement. This not only helps to disrupt shopper missions and divert attention towards the display, but also makes it easy and convenient for shoppers seeking a desired product in a hurry, said PeleGuy Distribution Operations Manager Natasha Marycheva, who said quick, easy transactions were among the most important factors for consumers.

stock for top-ups in between the visits. We rotate the stock for products with expiry dates, clean the shelves when necessary and consult retailers on product placement for better sales.”

In P&C we only have a small window of opportunity to grab consumers’ attention while they are paying for petrol or getting milk.” - Natasha Marycheva, PeleGuy

This also requires PeleGuy to be across the differing needs of stores based on their location and main consumer base. What sells well in Queensland may be a poor performer in Tasmania. “There are products that sell better in some states than the others. For example, sunscreens and sunglasses sell all year around in Queensland, even during the winter months. In Victoria and New South Wales there is a huge demand for hay fever remedies in spring and cold and flu relief medication in autumn and winter,” she added. “Items such as torches and power banks sell more in the regional areas, and it has a lot to do with people going camping and those things become essential to them. One of the products that is a best-seller in regional areas is a Fast Vibe solar power bank with a wireless charging option. It charges devices with use of a cable or wirelessly, and the solar panel receives and stores energy, so the power bank is always ready to recharge any device. The ability to always have a source of power on the go is what makes this power bank so popular. And it comes at a very competitive price.”

“This is extremely important. In our main retailers, P&C, we only have a small window of opportunity to grab consumers’ attention while they are paying for petrol or getting milk, and that’s when we have to make sure that the product is not only visible to them, but is also attractive,” Ms Marycheva said.

According to their consumer insights, sales spike in the afternoon with after school traffic and continues into the evening on the commute home from work and peak on Friday and Saturday nights. This fits with the distributor’s strongest performers, such as novelty lighters and camping accessories.

“Our Sales Reps make sure they visit all of our customers at least monthly to refill display stands and make sure there is enough

“There are products in each category that have selling numbers way above similar products. For example, Bic lighters are a huge

24 October/November 2020 | C&I | www.c-store.com.au

GADGETS AND GIFTS seller in its category, but the Tiko Jet Lighters are not far behind. Tiko’s versatility make them a perfect gift for anybody and they are perfect for any outdoor activities as all the Jet Lighters are weatherproof. Pâtissiers use it in dessert making, for that crunchy crème-brûlée top, tradesmen find them useful for welding, and many people can’t go camping without it. It’s not easy to light a fire without a help of a Jet lighter when it’s windy!” “Phone accessories, too are great sellers in P&C. We have a range of Vibe Funky charging cables that are an absolute best seller in its range. They definitely attract a lot of attention and bring huge volumes in sales. FM Transmitters are a very popular too, despite all the latest technologies of modern cars, as well as phone holders with wireless charging function.”

In summer, we can see sunglass sales grow by up to 200% during December and January, compared to the baseline,”

- Harry Phillipou, Pacific Optics

General merchandising solutions company Pacific Optics agrees that tech accessories are some of the strongest category performers, both in retail sales and growth. And supporting these products with marketing and merchandising is paying off for stores who choose to range them, said National Sales Manager, Harry Phillipou. “Our market leading brands Walk n Talk and Fuse Audio have experienced very strong growth over the last several years – as a result of product innovation, packaging updates, best in class merchandising solutions and a very strong social and digital campaign. “We are experiencing over 20% growth, driven by changing consumer patterns directly linked to the work from home requirements of COVID-19. “Our Fuse Audio Airbudz (released in July 2019), continue to be one of the highest growth SKUs across all categories in the shop. Additionally, our Aerial UV400 and Aerial Polarised sunglasses are the next best performing categories in terms of retail sales and gross profit dollar contribution to retailers, delivering very strong percentage and dollar margins.” Consumer insights from Pacific Optics show the category brings a steady stream of consumers into stores. While phone accessories appeal to all consumers, Pacific Optics has carved out a niche in their range of Aerial sunglasses, serving both those buying on a needs base and repeat consumers. “Aerial satisfies the consumer who ‘needs it now’ to help get through the day, as well as a very strong loyal eyewear consumer base who know and trust the brand, so repeat purchase by tradies is very high, given they trust the quality,” Mr Phillipou said. Pacific Optics also works with stores to maximise sales through seasonal peaks in the category, to drive sales through the busy summer and winter periods. “In summer, we can see sunglass sales grow by up to 200% during December and January, compared to the baseline. This is also reflected across all summer related items, including thongs and straw hats.”

Pacific Optics' Aerial sunglasses are strong performers in the category.

They also invest time and money into ensuring stores are giving their stock the best merchandising and display, to ensure the category stands out to shoppers. October/November 2020 | C&I | www.c-store.com.au 25

GADGETS AND GIFTS

Hats are in demand year-round.

Thongs are in high demand in warmer weather.

Airbudz are another strong seller in P&C.

“Pacific Optics invests significant funding into the design and development of display solutions, that we provide to retailers free of charge. The rationale behind this is that we know how to best merchandise and display our range to maximise consumer view and accessibility of the products.

“Make sure you have quality shelving and display units and organise your products logically. Let customers know about in-store bargains with clear and attractive signage and encourage them to make a purchase by advertising how cheap your items are. It works wonders for stores like JB Hi-Fi and Costco.”

“A number of retailers have bespoke solutions for their network of stores, and we work with the merchandising teams to develop these, ensuring alignment with their overall merchandising standards.”

Going beyond stocking the essentials to offer an extended product range was also key to boosting margins, Mr Avrahami added.

It’s not just how products are stocked, it’s also what products are on offer and Mr Phillipou said the company was passionate about driving new product development in the category to ensure offers are consistently refreshed. Within their tech lines, they see a minimum of four new lines each year and monthly new lines for eyewear, more during the September to January peak.

AT A GLANCE • It's not just what stores stock, but how the products are displayed that helps to drive sales. • Sales in the category peak in the warmer months as more families hit the road. • Camping gear such as lighters and torches are also popular. • Consumers seek convenience above all in this category.

“We continually research and improve all of our categories. We have a motto that we live by, which is ‘progress through innovation’. Our team of product managers own the entire end to end process when it comes to product development. Our designs are exclusive to Pacific Optics. This means that we don’t simply purchase from a catalogue, we design our products to be state of art and guarantee stringent quality standards.” Smooth Wholesales also supply petrol stations, convenience stores and supermarkets with products for the gadgets and gifts category. Managing Director Tal Avrahami said their goal was to shift the perception that P&C was overpriced or had limited stock availability, saying the sector had untapped potential in the category, given its wide shopper demographic. Presentation, merchandising and logical displays all helped to drive sales, as did signage, he said. “It might seem like an obvious suggestion, but presentation is key to attracting customers and improving sales. Too often do we see customers who haven’t made the effort to set up their stores in a way that attracts customers,” Mr Avrahami said.

26 October/November 2020 | C&I | www.c-store.com.au

“Through our own experience, we know that in-store sales are the life-blood of the business – whether you’re a service station, convenience store or a post office, the essentials get people through the door, but the extended range of products is where you make your margins. “Our product range has been developed to offer our customers more competitive pricing across the board because it’s our job to source them as cheap as possible. We hate seeing stock sit on shelves for months collecting dust and the main reason for that is price. A lot of wholesalers charge too much and expect their customers to sell at unrealistic price-points. We are positioning ourselves as a cost-effective alternative to your usual wholesale channels.” While Mr Avrahami said the pandemic had shifted sales towards at-home activity products, core lines continued to perform well. “Some of our all-time best sellers include car jumper cables, our LED lighting range, plush toys, kid’s books and phone accessories. “Summer staples such as sunglasses, hats and outdoor activity sets are always good performers as we approach the warmer months. With every hot day, we see the demand for these products increase and we capitalise on that by including additional products such as electric fans, drink bottles, outdoor sporting goods and kid’s beach activity sets.” C&I *C&I would like to thank PeleGuy, Pacifc Optics and Smooth Wholesales for their contribution to this article.

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ELECTRIC VEHICLES

It's a question of when, not if, electric vehicles will become mainstream options in Australia.

THE RISE OF EV IN AUSTRALIA What’s driving the uptake of EVs and why petrol operators should embrace the transition

For it to become mainstream, the parity gap has to be bridged in terms of price, range, ease of ownership and value.” - Suraj Ghosh, IHS Markit

here is no middle road, so to speak, when it comes to electric vehicles and opinion is split firmly into two sides. Those in favour see it as the future: a cleaner, cheaper and more efficient technology. Those against view them as inferior and costly and are holding onto petrol cars with fervour. But love or loath, there’s no denying they are becoming a more viable and mainstream option among consumers. While once on the outer fringes of car choices, today’s EV owners are as likely to be suburban families as green-conscious, Elon Musk aficionados. There three main types of EVs, each with varying reliance on electricity to run. The first is a BEV – battery powered EVs that are 100% run on electricity and which require charging through either a power grid or other source. The second, plug-in hybrids (PHEV), use batteries similar to BEVs, but also have an internal combustion engine. The last and most common form is a HEV, or hybrid vehicle, which operate similarly to BEVs, but can’t be plugged in for charging. These models currently have a higher up-front purchase price – the NRMA estimates HEVs start from $26,500, PHEVs from $42,500 and BEVs from $47,500, however prices are expected to reach parity with petrol cars within a decade.

28 October/November 2020 | C&I | www.c-store.com.au

According to the Australian Electric Vehicle Study, commissioned in partnership with the Clean Energy Finance Corporation and prepared by Energeia, Australia could see a swift uptake of EVs among motorists. The study forecasts that by 2030, sales of EVs will reach 615,000 vehicles per annum, which will jump to 1.89 million each year by 2040, representing 49% and 100% of all new vehicle sales, respectively. Within the next six years, close to a third (28 per cent) of new car sales are expected to be EV models, driven by a mix of reduced vehicle and battery prices and an increasing disparity between electricity and fuel prices. Sales over the next five years are set to rapidly spike and could jump from 3,100 to as high as 70,700 vehicle sales, the report says. It’s not just the private sector embracing the technology. In NSW, the state government earlier this year announced a Net Zero Plan, which outlines its support for the technology and commitment to rolling out fast-charging infrastructure, incentivising purchases and ensuring new builds are set up for EV. Under the plan, the government will also look at improving access to off-street charging. It has also pledged that 30% of its fleet will comprise of either fully electric or hybrid vehicles by 2023, with at least 10% to be fully electric. They also flagged

ELECTRIC VEHICLES potentially rolling out electric bus fleets and hybrid diesel-electric passenger trains on regional lines within three years. The AEV report also crunched the numbers and found that EV cars could save motorists up to $1,300 in fuel and $300 in maintenance costs each year. The recently released State of Electric Vehicles 2020 report by the Electric Vehicle Council found EV sales had jumped by 200% last year. While petrol/diesel vehicle sales fell by 7.8% in 2019, Australians purchased 6,718 EVs, accounting for 0.6% of all new sales and three times the 2,216 EVs sold the previous year. In contrast, EVs account for between 2.5-5% of all new vehicle sales in developed countries – with the very notable exception of Norway, where EV sales made up 56% of all new cars. More than 2.6 million plug-in vehicles were sold last year.

The ACT is electrifying its own car fleet and bus fleet while VIC, SA, WA and the NT are expected to release their EV strategies later this year. Companies like Uber are already transitioning, announcing last month it plans to ensure 100% of rides in the US, Canada and Europe will be in EVs by 2030 and by 2040 for the rest of the world. BP too has pledged to rapidly increase its charging points from 7,500 to 70,000 within 10 years. CEO of the Australasian Association of Convenience Stores Jeff Rogut believes it’s only a matter of time before we see a bigger uptake of EV in Australia, which he said lags behind other developed countries in the transition.

Factors influencing consumer sentiment in favour of EVs are environmental concerns, cheaper running and maintenance costs and vehicle performance. The biggest barrier for consumers is the (relative) higher up-front purchase price.

“Of course, charging infrastructure is essential to support takeup, and leading providers are already investing in their networks. For instance, Evie Networks is building Australia’s largest fast and ultra-fast charging network. Australia now has over 2,000 public charging points of which over 350 are fast charging. This represents a 40% increase year on year,” Mr Rogut said.

Of these, eight cost less than $65,000 and the Electric Vehicle Council expects to see six new models to be introduced into Australia by the end of the year, of which two will be under $50,000.

“With Federal Government support in the form of an EV policy comparable to mature global markets, the transition to electrification will accelerate.

The council also ranked efforts across the states and territory governments to encourage EV uptake. NSW was found to have made the most progress last year, and is now ranked alongside the ACT and QLD, following NSW’s recent commitments to invest in public charging networks, transition vehicles within its fleet to EV models and electrify its bus fleet.

“If we look at the US as an example, according to NACS, EVs are expected to increase their market share of new vehicles sold, because some of the challenges to owning an EV such as range anxiety, recharging time and purchase price, are being resolved in new models.

The QLD government also scored points for their investment in public charging infrastructure along its Electric Super Highway.

Our channel innovates and evolves, and the increased takeup of EVs will call on our ability to innovate and evolve in the future.” - Jeff Rogut, AACS

“At the same time, policies like zero-emission vehicle programs continue to spread throughout the US, creating a strong incentive for manufacturers to bring more EVs to market. Dozens of new

EVs are surging in popularity in Australia and becoming more mainstream.

October/November 2020 | C&I | www.c-store.com.au 29

ELECTRIC VEHICLES

Most petrol station operators are currently waiting to see how the market develops.” - Dan Armes, ServoPro

models are expected to become available in the next few years,” he said.

longer while charging, therefore opening up significant new opportunities for stores.”

Mr Rogut cautioned there were considerations for operators, and that there would need to be a balance between integrated charging stations and traditional fuel operations, but C-stores would become an important option for recharging as the uptake increases. This presents stores an opportunity to engage customers who will be on-site for 20-30 minutes and the successful integration would largely depend on the offers available.

Principal Analyst IHS Markit, South Asia Powertrain Forecasts Suraj Ghosh, however, argues there are barriers to the imminent uptake of EVs, describing it as a chicken and egg situation – we won’t see more charging stations until we see more EVs. As there is currently no government support either for manufacturing or purchase incentives such as customer tax subsidies, he said, the market was currently reliant on organic demand and was not reaching its uptake potential.

“It might be the provision of eat-in options, car-wash services, café-style ambience or other alternatives. The convenience channel has innovated around the in-store experience in recent years and the offer is understood to be more comfortable and engaging. The transition to EV will most likely elevate the importance of this experience further.” However Mr Rogut noted as with any shift of this significance, it would also come with challenges, such as the potential for fewer fuel destination trips. “There will be changes along the entire value chain and operators will need to be prepared. Our channel innovates and evolves, and the increased take-up of EVs will call on our ability to innovate and evolve in the future. But the prep work starts now, if it hasn’t already.” The technology also carries the potential for healthy profit margins and stores should be energized, not threatened by the opportunities, Mr Rogut said. “According to Evie Networks, more mature international EV markets demonstrate increased profitability for stores which have capitalised on the transition. We believe a similar opportunity exists in Australia, with customers remaining on-site for 30 October/November 2020 | C&I | www.c-store.com.au

“Though EVs are hyped up and captures a lot of media attention, there are challenges to it becoming mainstream. For it to become mainstream, the parity gap has to be bridged in terms of price, range, ease of ownership and value,” Mr Ghosh said. Founder of ServoPro, Dan Armes said petrol operators were watching the market closely and positioning themselves to harness the technology, but many were reluctant to commit to installing stations until consumer demand picked up. “In the current market EV charging stations are the most attractive option for petrol station operators but there are very few that have been installed. Most petrol station operators are currently waiting to see how the market develops. I do work with some operators who have installed EV charging stations but their use is very limited,” Mr Armes said. “Those building new petrol stations are putting in the infrastructure for an EV charging station like the electrical wiring and allocating space on their forecourt, but few are installing the charging stations at this stage.” C&I *Thanks to Geoff Brady at Evie Networks for providing AACS data, AACS CEO Jeff Rogut, Principal Analyst HIS Markit, South Asia Powertrain Forecasts Suraj Ghosh and ServoPro Founder Dan Armes for contributing to this article.

PRODUCT RANGING

Gold Just Got Chunky! What is the key selling point of this product?

Capitalising on the success of KitKat Gold that consumers know and love, introducing new KitKat Chunky Gold Krisp 45g. Designed for those that like to add a little excitement to their break, each bar contains three layers of crisp wafer, topped with gold choc and waffle pieces, all on a gold choc base.

What is the product size?

KitKat Chunky Gold Krisp is available in a 45g bar.

What was the idea behind this NPD?

KitKat is the #1 chocolate brand in the Australian convenience market* and the Chunky sub brand has been critical to this, growing +12.5%*. New lines play a crucial role in driving growth of core SKUs, with the 2019 NPD KitKat

Vodafone Prepaid Data Banking What is the key selling point?

No more wasting your unused data every time you recharge! With Vodafone Prepaid Data Banking, you can now rollover any unused data (up to 200GB) when you recharge on any $10-$60 Combo Plus plan before expiry, giving you peace of mind that if you have a month of heavy data usage, you won’t run out of data before your plan expires. With people now spending more time at home, this feature has never been more important to our customers.

Which plans/ products does this apply to?

You can now get data banking on any $10, $20, $30, $40, $50 or $60 Vodafone Prepaid Combo Plus plan.

What drove this NPD?

We put our customers at the centre of everything we do. Our new 'You Rule' brand refresh is all about empowerment; empowering our customers to rule their own lives and that they are in control of their plans and services. They are in the driver’s seat and we are here to support them; whether that’s through knowing they are in control of their plans and services, or knowing that their unused data will now never go to waste.

Which customer segment is this product aimed at?

This incredible offer is available to both new and existing customers.

How can retailers get involved?

From 1st November 2020, all orders will need to be placed via the Lebara sales team. 32 October/November 2020 | C&I | www.c-store.com.au

Chunky Cookie Dough being the 11th largest medium bar in terms of value*, while KitKat Chunky 50g grew +26.0%*.

Will it bring a new customer base into the store?

KitKat Gold has played a very important role for KitKat, by bringing new users into the brand and category, as it appeals to a different demographic versus other core SKUs.

Is there any consumer marketing planned?

The launch is supported by an extensive out of home campaign to drive awareness through mass reach, while a compelling social campaign will further drive excitement of the NPD. PR will also help to drive engagement. *AC Nielsen Scan: AUS Convenience Year 2019

PRODUCT RANGING

The Distributors: Sully’s Juice and Blends What is the key selling point of this product?

Sully’s Juice and Sully’s Blends are Australian made and owned products, with no added sugar or preservatives offering a ‘better for you’ product and fuel for the soul.

How many SKUs per product?

Sully’s Juice comes in six delicious flavours: Orange, Pineapple, Apple, Orange Mango, Apple Blackcurrant and Mango Banana and Sully’s Blend has three unique juice blends: Mango Blizt, Green Warrior and Tropical Blast.

What is the product size?

Sully’s Juices range can be enjoyed in a 350ml screw top glass bottle.

What was the idea behind this NPD?

Sully’s Juices was created to offer a premium product with a high end look and feel and quality ingredients, all at a highly competitive price point.

Which consumer demographic is this product aimed at?

With the health conscious buyer leading growth, trends have shown these informed consumers look for 100% fruit juice over artificial sugary fruit based beverages.

Who is the major wholesaler?

The Distributors are the official wholesaler for Sully’s Juices. With 35 locally owned warehouses nationally, The Distributors are Australia’s leading national independent wholesaler distributors to petrol and convenience, corner stores, pharmacies, newsagents, schools and the route market. Contact The Distributors on 1800 989 022 for your local warehouse.

Coco Vio Energy What is the key selling point of this product?

Coco Vio Energy combines the goodness of coconut water and real juice with ginseng, taurine and caffeine for a high-performance boost you can feel good about.

How many products in the range?

This is the fifth product from the Vio range of Coconut and Aloe Vera beverages.

How many SKUs per product?

There are three energy variants at the moment: Passion Juice, Mango Juice and Lemon Juice – with more in development.

What is the product size?

Coco Vio Energy comes in 355mL slimline cans.

RRP? $2.50 each. What was the idea behind this NPD?

To give consumers a healthier option in the energy drink market.

Which consumer demographic is this product aimed at?

Who are the major wholesalers?

People who want a beverage boost but care about their health.

Coco Vio Energy is made by Bevpax Pty Ltd and distributed by Olympian Products & Distribution and Mosman Futures.

Will it bring a new customer base into the store?

Will there be any promotion in store? And if so, what will this be?

Yes, because there hasn’t been a natural option before to compete with the synthetic based energy beverages.

We’re waiting for the rest of the range before embarking on an instore campaign.

October/November 2020 | C&I | www.c-store.com.au 33

Safe+Touch anti-pathogenic tape prevents high touch surfaces from being transmission points for viruses and bacteria. Developed by a Korean company that provides comprehensive infection control solutions to hospitals, nursing homes, medical labs and other primary care facilities around the world, Safe+Touch is proven to destroy 99.9% of bacteria. The patented technology uses a non-toxic, naturally antimicrobial material in a unique structure that gives it a semi-permanent lifespan. Its radical design kills germs on contact, and then refreshes to its original condition upon exposure to natural or artificial light. Contact Valois SciPharm for further info on how Safe+Touch can improve the safety of your workplace.

+61 (0) 405 517 115 valoisscipharm.com enquiries@vcmedia.net.au

Safe+Touch can be applied to almost any surface, is highly durable and has excellent persistency.

PRODUCT RANGING

Purina Felix: As Good As It Looks What is the key selling point of this product?

FELIX As Good As It Looks is a range of delicious cat food meals specially prepared with tender meaty pieces in a succulent jelly. They look and smell so meaty it looks like food you might have cooked yourself. Felix is the fastest growing mainstream wet cat-food brand growing at 32.1%*. FELIX has previously only been available in multipacks, however to meet the demand of more and more shoppers looking for top up purchases in the convenience channel, it is now available in convenient single purchase packs!

What was the idea behind this NPD?

FELIX singles plays a very important role by encouraging trial in order to drive premiumisation in mainstream wet cat food.

Which consumer demographic is this product aimed at?

The engaged wet cat food shopper who is looking for a convenient wet cat food pouch option in the impulse channel.

Will it bring a new customer base into the store?

FELIX singles have launched in three irresistible flavors – Adult Beef, Adult Tuna and Kitten Chicken.

Yes! Purina and Kantar Shopper Study in 2017 showed that 68% of pet owners are looking for relevant, premium pet food in convenience, but have been unable to find it! FELIX As Good As It looks a step towards addressing this need.

What are the pack options?

Who are the major wholesalers?

How many products in the range?

While FELIX has only just launched in singles, 12 packs are available in most retailers today.

What is the product size?

All three FELIX singles are available in an 85g pouch.

RRP? All three FELIX 85g pouches retail for $1.30. 36 October/November 2020 | C&I | www.c-store.com.au

Metcash and The Distributors.

Is there any consumer marketing planned?

Yes, the launch will be supported with ongoing TV and online video media to drive awareness through mass reach. The launch will also be supported on social media to drive further excitement. *Source: Nielsen Grocery Scan Data MAT 2/08/2020

Refresh your Summer sales with

Refreshing fruit drink

With it ru f l a re juice

To order or for more information contact your Lion Dairy & Drinks sales representative or call 1800 000 570.

PRODUCT RANGING

Shine+ New Range What’s the reason for Shine’s growing popularity?

The biggest trends in the industry are all focused around brain health, healthy ageing and nootropics. Consumers are getting smarter, they’re becoming more wary of what they put into their bodies; and with no added sugar, artificial colours or flavouring and packed full of natural, age-old functional ingredients (known as ‘nootropics’), Shine+ energises and awakens the mind and helps consumers think, feel, and do better.

How many products in the range?

In addition to our 100ml shots and 400ml range, we’ve just launched our new sparkling 330ml range in four delicious flavours: Tropical Coconut, Blueberry Lemonade, Peach Passionfruit and Watermelon Mint. Two additional flavours will also join the range by early next year.

RRP? $4.95 Is there any consumer marketing planned?

We have some exciting things coming, we’ve set ourselves a mission to help people think, feel and do better and rid the world of bad energy and we have some exciting things happening in marketing for social/digital, PR, influencer, OOH/in-store and POS. 38 October/November 2020 | C&I | www.c-store.com.au

What was the idea behind this NPD?

The new range was developed in response to the growing popularity of Shine’s original 100ml shot and 400ml sparkling range and is designed to appeal to customers searching for better sources of energy and greater varieties in size and flavours. The new range has a lower RRP which will encourage trial and serve as an entry to the category and brand.

Which consumer demographic is this product aimed at?

The Shine+ 330ml range is designed for anyone seeking a better energy source; from the health-conscious consumers (those seeking ‘better-for-you’) as well as consumers who are looking to make a change from traditional energy drinks to a better energy boost on the go.

Will it bring a new customer base into the store?

Absolutely! Nootropics is a fast-growing category and The Shine+ 330ml range provides a fantastic opportunity for retailers to engage shoppers who are looking for a healthy, better energy boost with nootropics, not offered by traditional energy drinks – delivering incremental sales and capturing new customers.

Who are the major wholesalers?

The wholesalers for the Shine+ range are The Distributors and PFD.

PRODUCT RANGING

Barista Technology Perfect Moose What is the key selling point of this product?

Perfect Moose is the smartest automated milk steaming technology available today. Designed to assist baristas during busy times, the Moose will turn any untrained staff member into a barista whilst decreasing customer waiting times during those busy periods. Best of all the Perfect Moose requires no user input as all of your milk recipes are programmed into the milk jugs. Simply fill the jug, place the jug on the base plate and let the Moose do the rest.

How many products in the range?

There are two versions of Perfect Moose: ‘Greg’, who plumbs directly into your coffee machine and ‘Jack’, who has his own boiler and can be positioned anywhere you have a water tap available.

What is the product size/are multiple sizes available?

Perfect Moose has a small footprint, it’s only 120mm wide and fits neatly next to your coffee machine or on any benchtop. The system is supplied with five ‘Smart Jugs’ which are programmed with your milk temperature and texture recipes. The jugs come in three different colours so that staff can easily choose the right jug depending on milk type. Black jugs are for dairy milk, cappuccinos and lattes. White jugs are for flat whites and green jugs are for plant-based milks. So there is no chance of cross contamination. 40 October/November 2020 | C&I | www.c-store.com.au

RRP? Contact us and we will connect you with your local Perfect Moose distributor to discuss pricing.

What was the idea behind this NPD?

The explosion of barista coffee in the P&C market has resulted in greater choice for consumers and with that comes higher expectations around quality. Perfect Moose was designed for retailers whose staff are required to multitask and may not necessarily be skilled baristas. Perfect Moose delivers consistent results for every jug of milk, ensuring that the quality in the cup is always achieved.

Which consumer demographic is this product aimed at?

Perfect Moose is aimed at any café environment where consistency and quality in the cup is important. It delivers exceptional milk texture and temperature, improves workflow and productivity and reduces the incidence of injury risk.

Will it bring a new customer base into the store?

Perfect Moose is proven to produce excellent quality milk every time, so the overall quality of coffee being served will improve. When customers have a great experience, they will come back again.

Who are the major wholesaler?

For all sales enquiries please contact Anthony Warthold on 0414 685 729 or email at Anthony@baristatechnology.com.au

PRODUCT RANGING

Tiko Lighters What is the key selling point?

In just a few short years Tiko lighters have made a significant impact to the current market and have quickly become a leader in USB and Jet lighters. The sole motivation behind the Tiko lighter concept is to deliver customers the latest and greatest products. Each Tiko lighter is made from high quality materials with top of the line components, ensuring reliability and consistency throughout each lighter, whilst being environmentally friendly. Tiko delivers high-quality, innovative lighters to ensure every style is catered to and prides itself in the use of high-grade technology, unparalleled to any other on the market. The Tiko USB lighters use coil technology similar to that of a car lighter and a newer dual Arc technology throughout its more premium ranges. They also have a long battery life. Tiko USB lighters are expected to have around 350 uses before needing to be recharged, once charging takes place you can expect your lighter to be fully functional after two hours of consistent charging.

How many products in the range?

Currently, Tiko has over 100 varieties of lighters. In the Tiko USB line alone there are almost 20 different variations available. Both Jet and USB varieties come in standard and premium ranges.

What are the pack options?

When purchasing Tiko USB lighters you can expect each model to be displayed in an ‘inner’ of 12-24 lighters depending on the particular style and size of the lighter variation. Each ‘inner’ is packed with care to ensure that the display of the Tiko lighters is an absolute show stopper when viewed on

the counter. Some of the premium Tiko lighters also have a single pack option and are well packaged in a convenient gift box.

RRP?

RRP for Tiko standard USB lighters is from $10.95. Tiko premium USB lighters start from $19.95.

Which consumer demographic is this product aimed at?

Tiko USB lighters appeal to all, with their unique fashion designs, premium styles and high-quality feel. Tiko USB lighters will find their way into the hands of all those who find themselves needing a lighter, from the friendly camper to motivated entrepreneur, Tiko USB appeals to them all.

Will it bring a new customer base into the store?

Tiko USB lighters absolutely have the ability to attract new and existing customers into purchasing one or many of the vast exciting varieties of Tiko USB lighters.

Who is the major wholesaler?

Peleguy Distribution Pty Ltd is the exclusive importer and owner of the Tiko USB range. Peleguy assumes sole responsibility for all research and development. However, there are a few selected, independent distribution companies.

Vibe USB Cables What is the key selling point?

Vibe USB Cables have been the top selling charging cable for many years. Vibe cables are available in a range of classic and funky designs that will be sure to accommodate everyone. Vibe cables come in a huge variety of colours and designs. This is what attracts the customer’s attention in store and makes Vibe cables a unique, desirable product on the market. Vibe cables are made from top quality components that prevent the cables from breaking or snapping easily.

How many products in the range?

Vibe cables currently have four types of cables within their range. The most popular being the 1m cable, it’s the perfect length for on the go use. Vibe also has a shorter version of the 1m cable (25cm) which is ideal for the use of laptops and power banks. Last but not least, Vibe also have a 2m and 3m length cable long enough for the most ambitious of projects. All of Vibe’s cables are quality made, fast charging, equipped with lightning connection for Apple users, USB-C or micro USB connectors to suit a variety of devices currently on the market.

What are the pack options?

All Vibe cables come pre-packed with on the counter display stands. The Vibe 1m cables come on a 42 October/November 2020 | C&I | www.c-store.com.au

45-piece stand and the 2m/3m cables are presented mixed on a counter display of 20 pieces. The short cables are showcased on a counter display of 24 cables. All cables are smartly packaged to ensure perfect visibility for the customer.

RRP?

Vibe 1m cables retail for $14.95; Vibe short cables retail for $9.95; Vibe 2m cables retail for $18.95; Vibe 3m cables retail for $20.95.

Which consumer demographic is this product aimed at?

Vibe cables are widely admired by people of all ages, with the diverse variety available the cables are a hit for everyone!

Will it bring a new customer base into the store?

Most definitely. Customers have had enough of poor-quality standard cables. Customers are looking to flaunt their personality and character through expression. Both the classic and funky designs have the ability to do this.

Who is the major wholesaler?

Peleguy Distribution is the exclusive distribution company for the Vibe cables.

Glycaemic Index (GI) value = 44

PRODUCT RANGING

The House of Robert Timms Coffee Bags What is the key selling point for this product?

Established in 1951, The House of Robert Timms has a range of roast and ground and soluble coffee to suit everyone’s needs. The House of Robert Timms Coffee bags are ideal for those who are looking for a convenient, hassle free solution without having to compromise on the quality and flavour of the coffee. The blends are expertly crafted and roasted in Concord, an inner west suburb of Sydney. The coffee bags are individually sealed, ensuring freshness to give you a 100% barista coffee experience no matter where you are. The perfect cup, From Our House to Yours.

How many products in the range?

There are a total of four variants: Gold Colombia, Italian Espresso, Mocha Kenya and Decaffeinated.

What are the pack options?

They are available in retail pack sizes of 8s, 18s and 28s.

RRP? The 8s retail for $4.50; the 18s retail for $7.50; and the 28s retail for $10.50.

Which customer segment is this product aimed at?

These are targeting consumers who have a preference for fresh, high quality coffee and convenience, with a quality taste and ease of use. 44 October/November 2020 | C&I | www.c-store.com.au

Will it bring a new customer base into the store?

Coffee bags positively contribute to the category as it adds incremental sales. In major retailers on a MAT basis it is growing strong double digits. Coffee bags are driving growth in a large and high value category through a premium offering focused on freshness in a convenient single serve.

Who are the major wholesalers?

For more information, contact: NSW: Rita Succar on 0416 185 098 or via email at Rita.Succar@freshfood.com.au QLD: Simon Dempsey on 0414 780 773 or via email at Simon.Dempsey@freshfood.com.au VIC / TAS: Andrew Campbell on 0427 215 190 or via email at Andrew.Campbell@freshfood.com.au SA: Kari Stoker on 0414 749 317 or via email at Kari.Stoker@freshfood.com.au WA / NT: Gavin Radford on 0427 241 345 or via email at Gavin.Radford@freshfood.com.au

Is there any trade marketing planned?

We’re focusing on trade for now for the purpose of generating awareness among the buyers. For the consumers we are continuing our strong social media presence via Facebook and Instagram.

PRODUCT RANGING

New Pepsi Max Mango What is the key selling point of this product?

The delicious new Pepsi Max Mango is bringing the taste of summer to Australian consumers early this year, with all of the taste and none of the sugar – Pepsi Max Mango is a fun way to mango this summer.

What is the product size/are multiple sizes available?

Pepsi Max Mango is available now in stores across Australia in 600mL and 1.25L bottles, as well as 375mL and 440mL cans.

What was the idea behind this NPD?

Pepsi Max Mango brings together the bold, refreshing taste of Pepsi Max with the delicious taste of juicy mango to make summer that little bit sweeter and give Aussies another way to enjoy the taste of their favourite fruit. The newest addition to the Pepsi Max flavour range joins pre-existing favourites – Pepsi Max Vanilla, Pepsi Max Raspberry and Pepsi Max Creaming Soda. The expanding range of flavours demonstrates PepsiCo’s commitment to transforming its portfolio to meet changing consumer tastes and needs.

Which consumer demographic is this product aimed at?

Everyone. The Pepsi Max team commissioned research into just how passionately Aussies feel about their favourite summer fruit and the results reveal that nearly half (46%) of Aussies are obsessed with mangoes, saying it is their favourite fruit and they can’t get enough of them.

Danone’s Two Good Yoghurt Range What the key selling point of this product?

Two Good has 70% less sugar than the average yoghurt. This is achieved by utilising a special product development process to remove sugar from milk, leaving each yoghurt cup with only 2 grams of naturally occurring sugar. The new yoghurt servings offer 0g added sugar, 0g artificial sweeteners, 0g preservatives, 11g of protein and just 75-76 calories per cup, depending on the flavour.

How many products in the range? Two Good flavours include

Mixed Berry, Vanilla, Salted Caramel, Mango, Peach and Cherry.

What is the product size?

It is available as a 150g tub.

What was the idea behind this NPD?

The delicious yoghurt range was developed to meet the increasing demand from millennials and Gen Z consumers for low sugar options without artificial flavours, preservatives or colours.

Which consumer demographic is this product aimed at?

It has been designed to appeal to Millennials and Gen Z consumers.

Lion Dairy & Drinks Shake to Win What is the key selling point for this product?

The key selling point is the promotion we’re running for this product. We always look for popular promotions that have a cash or cash equivalent prize, are easy to enter, have lots of chances to win and where the consumer finds out instantly if they have won. A chance to win a $1000 prize every day in the unprecedented COVID-19 climate is great for consumers. We have done our research and know these sorts of instant prizes are really important to them.

What products will be included?

Dare Iced Coffee (including Dare Cold Brew) 750ml or less, Farmers Union Iced Coffee 750ml or less, Feel Good 600ml or less, Dairy Farmers Classic 750ml or less, Dairy Farmers A2 Goodness 300ml, Big M 750ml or less, Masters 750ml or less, Daily Juice 500ml, Mildura 500ml, Mildura Quencher 500ml, The Juice Brothers 500ml or less and Vitasoy Whole 330ml.

vs benchmark of 25%) and strongest brand fit (84%). We think it is a winner!

Will it bring a new customer base into the store?

Yes, these are our brands across iced coffee. Our research shows consumers react to this type of instant promotion. Also, we have a strong media plan with social platforms ready to roll out from launch day on 12 October, and we have OOH booked as well, which will start in late October and run for two weeks.

Will there be any promotion in store?

There are more than 170 SKUs across 12 of our blockbuster brands, so this will drive promotions across impulse range of drinks.

We are planning lots of different promotions including price promotions and point of sale which will see the forecourt, store entrance and fridges dressed up with Shake to Win messaging, helping to drive sales across the range of participating products.

How did you come up with the idea?

When will this run and for how long?

How many SKUs per product?

It follows on from the success of previous promotions such as Grand In Your Hand and Dare’s Daremergency promotion last year, after seeing how these really drove sales. In the Impulse channel we saw an average sales uplift of 5% or more throughout the promotional period so we know that these work. This time we did something different. We tested Shake to Win with a panel of consumers to see how likely consumers would be to enter. We put six concepts into testing and Shake to Win had the strongest purchase intent (44% 46 October/November 2020 | C&I | www.c-store.com.au

Shake to Win starts on October 12, 2020 and runs until December 6, 2020. It is an on-pack consumer promotion, where we are giving away up to $1 million in prizes, with prizes of up to $1000 to be won instantly! It offers Australian consumers over the age of 16 the chance to win up to $1,000 in the daily prize draw and instant win prizes of $5-$100. Consumers simply purchase any participating product, head to shaketowin.com.au and watch their phone or computer fill up with liquid.

PRODUCT RANGING

Level Beverages - Level Lemonade Range What is the key selling point of this product?

Level Lemonade is unique because it is in the better-for-you segment, but also appeals to those people who really don’t like better-for-you products. Level Lemonade doesn’t look like healthy drink or taste like one because it tastes like a fizzy drink. This gives it an edge in the ever cluttered space of kombucha and coconut waters, which are my competitors. I source my volume from people who enjoy drinking soft drinks, but who are feeling a bit guilty for it. What also makes it unique is it is high in magnesium and vitamin C, which many Australians are deficient in and which are both very good for boosting your immune system, which is a topic people are very interested in. It’s also low in sugar, it’s 97.5% sugar free. It’s something that’s good for you but still has a delicious tangy lemon taste.

a soft drink enthusiast, I love a soda and take magnesium supplements. The category is flooded with so many protein boosted, probiotic rich and coconut hydration products, but not something that makes the devil happy while paying tribute to the angel. Level Lemonade satisfies both.

Which consumer demographic is this product aimed at?

There are four flavours in the range. The first three, Lemonade Original, Lemonade & Orange and Lemonade & Pineapple were launched in Q2 2019 and have already sold 750,000 units. We’ve just also launched our fourth flavour, Lemonade & Raspberry.

I think Level Lemonade’s consumer base is very broad. It’s aimed anyone above 15, it’s not another soft drink, it’s technically a formulated sports food and people appreciate magnesium. Many older people take magnesium supplements, but also anyone who plays sport. So 60% of the population should be able to like this drink. People like sour fizzy drinks, and now they have one that is low in calories and good for them.

What is the product size?

Who are the major wholesalers?

RRP? I advise stores to sell below $4 to maximize sales.

Will there be any promotion in store?

How many products in the range?

They are all 300ml PET bottles. Pack features include colourful packaging, a resealable bottle and a large lid which makes the product stackable.

How did you come up with the idea for this product?

It was the idea of the devil and the angel, which is my inner dialogue. I am

The Distributors, Kelly’s Distributors, Socrates, Bonfect, Bullseye Trading and Socrates.

We will focus on a ‘try for $3’ promotion to begin with and in November we will have a few hundred store displays featuring all four flavours in high traffic outlets to run on a trial price. We’re already ranging a six pack promotion, too.

Chobani Oat Barista Edition What is the key selling point of this product?

While oat milk has taken the coffee world by storm, we know that for baristas, it can come with its difficulties. That’s why we set out to create the ultimate oat drink with all the aspects needed to create a top-notch coffee every time: creamy texture, superior taste and amazing versatility. We did this by taking time with our craft, using whole organic oats and crafting each batch individually for added richness and flavour. The result is not only coffees which taste amazing, but ones that look amazing too.

What is the product size? 946ml. RRP?

Chobani Oat Barista Edition is currently exclusively available through the Foodservice channel. Buyers in the café and hospitality industry can get in touch by contacting foodservice@chobani.com.au

What was the idea behind this NPD?

Our mission at Chobani has always been about bringing better food to all people, and we couldn’t be more excited to share that for the first time in Australia, we’re setting our sights beyond yoghurt with the launch of Chobani Oat Barista Edition. We’ll never abandon our dairy roots – yoghurt is and always will be an important part of the Chobani story, but it’s only the first chapter. When we say better food for all people, that includes those looking for non-dairy options, and that’s exactly what Chobani Oat is all about.

Will it bring a new customer base into the store?

People have great taste, they just need better options – and that’s exactly what we aim to deliver with Chobani Oat. Sure, Chobani Oat is plant-based and suitable for vegans – but most importantly, it’s delicious! Chobani Oat been specifically crafted with baristas in mind to deliver a rich, creamy and crave-worthy oat coffee every time.

Who can retailers contact?

Chobani Oat is currently exclusively available through the Foodservice channel. For all enquires, please contact Foodservice@chobani.com.au October/November 2020 | C&I | www.c-store.com.au 47

OPINION

SKYE JACKSON Head of Merchandise Planning Caltex Australia Limited

Marketers spend a great deal of time trying to delve into the consumer psyche to influence their motivations.” – Skye Jackson

INFLUENCING CONSUMER BEHAVIOUR

’ve been thinking a lot lately about customers and their decision making. How much of their purchasing habits are planned versus impulsive? What can we do in our stores to make purchasing decisions easier for customers? How are their behaviours changing in the evolving world we live in today? I recently attended a webinar on consumer behaviour and it talked about consumer behaviour being driven by two key elements: motive and ability. Motivation is made up of individual motives and social context. Marketers spend a great deal of time trying to delve into the consumer psyche to influence their motivations. I think the ‘good mood food’ campaign we’ve recently seen is a great example of trying to stimulate consumer motivation by promoting that people will feel better when they eat healthier foods. Given the timing with COVID-19, this would have resonated with consumers even more. The social context impact on motivation is also important. What are the social norms that exist that may impact behaviour? A great example of how social norms can impact the success of a new product is the ‘Breakfast Chips’. Yes, chips made of cereal-type ingredients served up in a bag just like chips. A super convenient breakfast on-the-go that didn’t require milk! Sounds like a great way to target that on-the-go customer, so why aren’t breakfast chips sitting in our stores today? Think about the social

48 October/November 2020 | C&I | www.c-store.com.au

norm aspect here. Who wants to sit on a train at 7am looking like they’re eating chips for breakfast? Given the product no longer exists, it seems not many people! Ability is where influencing consumer behaviour starts to get more relevant for us retailers. Ability is made up of skills and opportunity. And opportunity is about the environment and how easy it makes the behaviour. We know people in a rush on a hot day are highly likely to be motivated to get a cold drink, so putting a fridge at the front counter is creating an environment where these customers can easily make the purchase. It makes me think about our utilisation of space and how much thought we put into the likely motivations of our customers. What are some of the new or changing motivations that may exist? I think we would all agree that hand sanitiser and masks are an easy one! We do have some highly motivated customers that walk through our doors with a plan to purchase. We need to think about these common shopper missions and make sure we’re making it easy for them to navigate our stores and find what they’re after. The impulsive customers are those that are motivated but more likely tipped to purchase by seeing the things they didn’t think they needed until they’ve seen it. We all know our impulse zones; and this is where retailers should be very considered about their space utilisation. This zone is a high value area. When was the last time you analysed performance of products in this area, are you using it well? C&I

OPINION

DARREN PARK CEO United Convenience Buyers

Each day I deal with some of the smartest and most resilient business leaders. I can see the changing of their behaviours since March.” – Darren Park

IT’S TIME TO GET BACK TO BUSINESS

ustralia’s shared mainland state and territory land borders exceed almost 19,000 km. Add Tasmania’s total main island border and you have just over 21,000 km of borders. That’s almost like flying from Australia to the United Kingdom and then half the way back again. Australia’s state border history is rich with issues. The definition of where state and territory boundaries lie has been constantly reviewed, sometimes causing fierce rivalry. Border disputes have occurred between several states over the course of Australian history and although we should be a more mature country today, I’m not so sure this is accurate. Queensland hospitals are for Queenslanders! Melbourne, Victoria in Lockdown! Western Australia Borders are Closed! Headlines scream at us, with border politics stopping us from seeing friends and families. Funerals, weddings, anniversaries and just the freedom to travel in our own country for a holiday are also off the agenda. In Melbourne, venturing out after 8pm without good reason, could find you $1,600 poorer. And please, no Facebook posts. Handcuffs are only for criminals, or so I thought. In the business of Convenience and Petroleum we need mobility of people to thrive. Of course, the current circumstances are emotional and it’s difficult to make 100% correct decisions around people and safety. But as a community and Industry, we have a job to do. We have to think about today and the longer-term sustainability of our Industry and our people. These should be put above personal or short-term decisions such as upcoming state elections or football competitions. Who would have thought in 2020 we would have any state premier unable to have another take their phone call? Gladys said it straight out in a recent press conference: that the Queensland Premier wouldn’t take her call. We are being led by health professionals who suddenly have their five minutes of fame, appearing on our TV every morning. Do they ever want us to get back to normality? If normal comes they disappear back into obscurity. In Melbourne we had 100 doctors sign a petition to relax lockdowns – they are concerned that people are too scared to go to the doctor for a cancer diagnosis. To top that off I heard on Sky News a report from the US Centers for Disease Control and Prevention, which confirmed that only 6% of US deaths had Coronavirus as the ONLY cause of death. Yes only 6% of all recorded Coronavirus deaths were solely attributed to COVID-19.

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The balance had pre-exiting or underlying issues. One such coronavirus death in North America was a motorbike accident. Guess what. That too was listed as Coronavirus related. What do we want? Just honesty from our politicians and our media. My question to those politicians, public servants (state medical officers) and political commentators (media) that keep repeating ‘keep the borders closed’, ‘stay in lockdown’… you go on JobKeeper or you cut your salary to three or four days per week and see if you have the same sentiment to the border closures and lockdowns. People will lose their houses, businesses will close forever and there are kids who will transition from school to the workforce and miss many valuable rites of that transition. Bottom line is somebody has to pay for all of this, and it will be our grandkids! Please don’t think I am saying open slather. I’m saying we are smart enough to be able to live with many diseases and manage them, we should be able to do the same with Coronavirus. Each day I deal with some of the smartest and most resilient business leaders. I can see the changing of their behaviours since March. If you haven’t seen your colleagues face to face, heard the laughter of a team joke, felt the passion of differing opinions, then your attitude, energy and optimism are not fed. But I think one thing that has shown through this crisis, if we communicate regularly and are transparent about what we are doing and how we are feeling, we might not make everyone happy all the time, but we can maintain a sense of trust, unity and teamwork. I call it humanity. It’s humanity that we now expect to see from our leaders. Scaring the population into believing that the only way to deal with a threat is to all hide in our own homes, is not leadership. We must care for our vulnerable. We must also care for those that we think are strong but are privately fighting hard to maintain their mental wellness. Their vulnerability is just as real. The pathway to human engagement and being open for business is not via Zoom or Teams or Google Duo. It’s through trusting good people to act sensibly. It’s through people engaging. It’s through open borders. We must get back to business, it will be healthy for everyone. Until next time, Darren Park C&I

OPINION

JEFF ROGUT

SIGNING OFF AFTER 10 YEARS A

fter almost 10 years as CEO of AACS, I recently informed our members that I would be resigning from the position, effective at the end of November, 2020. It has been a true privilege and a highlight of my long career in retail and has therefore been a difficult decision to make. However, as our industry – and all industries, face new challenges in a changed operating environment, I believe it is the appropriate time. I am extremely proud to have led the Association on behalf of, and in support of, the amazing retailers, suppliers, business owners, operators and teams that make up this dynamic industry. The last 10 years have been eventful. It has been an especially dynamic time for the convenience industry. During this time the AACS has: • Redefined and reinvigorated the Association’s vision, mission and strategy as well as its operational pillars of Advocacy, Connection and Knowledge. • Achieved solid and loyal membership growth as well as a strong revenue and financial base that bode well for the future, enabling AACS to extend memberships by six months during the pandemic. • Become established as ‘the voice’ of the industry nationally by media and government and served on numerous government working groups, always advocating for the industry. • Facilitated numerous successful events including annual leadership summits, gala and awards dinners, training programs and nine overseas study tours to countries such as the USA, Canada, Japan, Korea, UK, China, Ireland and France. • Initiated the AACS Down Under Study Tours, which have proven very popular. • Significantly increased the profile of the Association in the media, social media and with politicians and governments, both state and federal. • Conducted political lobbying on significant issues that could either positively or negatively impact the industry. • Collaborated with C&I Retailing on the AACS Convenience Leaders Summit and C&I Expo initiatives, and been a

regularly contributor in C&I Retailing magazine, for which I sincerely thank the C&I Retailing team. • Published industry articles and appeared in media in Australia, France, UK, Ireland, NZ and Canada. • Coordinated the first ‘AACS Convenience Innovation Challenge’ for uni students focusing on the industry, with the take-up and strength of submissions seeing it become an annual fixture in the AACS calendar. • Led the redevelopment and improvement of the annual ‘AACS State of the Industry Report’, which has continued to evolve to ensure it best meets the needs of members. • Conducted the first major research into the industry in 2011 titled ‘Convenience 2020’, with an update undertaken in 2017, ‘Convenience 2030’. This research has proven to be of lasting importance to members and an important reference tool. • Commissioned new research into convenience customer attitudes and usage in 2019 and updated this during the COVID-19 pandemic, to ensure members understand and are prepared for the new challenges and opportunities they face. • Participated in a TV program on convenience retail in Japan by Asahi TV in February 2016. • Coordinated the first ‘businesses against crime’ forum, bringing together industry, police and politicians. • Quickly mobilised when COVID-19 hit to lobby government to ensure the industry could remain open.

CEO Australasian Association of Convenience Stores

It is critical that when a sense of normality returns, that those small businesses willing to dust themselves off and compete again are provided the proper support.” – Jeff Rogut

AACS has always emphasised that convenience is a dynamic industry and 2020, to date, has certainly reinforced this point. Obviously, the future will look different, further evolution will be required, and AACS is well-positioned to evolve as well. The future for the industry is still bright and filled with opportunity. And while it will be with a degree of sadness that I officially leave the post, and a role I have thoroughly enjoyed for the last decade, I also feel excitement and anticipation for the future. Both as an interested observer of the industry and a regular customer of my local convenience store. C&I October/November 2020 | C&I | www.c-store.com.au 51

INDUSTRY NEWS

STRONG HALF YEAR RESULT

The AACS State of the Industry Half Yearly Report shows the industry in good shape, despite the pandemic

Despite the challenges presented this has presented, the industry is performing well.

he Australian convenience industry’s performance data is in after the most tumultuous half year in the nation’s history and on balance, the numbers are encouraging.

The AACS State of the Industry Half Yearly Report 2020, prepared for AACS by Convenience Measures Australia, shows the industry achieved sales growth of 0.8% for the half, helped by a 2% quarterly sales increase in the June quarter. Nevertheless, just as the pandemic has impacted states differently, so has the convenience channel varied in performance across state borders. Over the year-to-date, Victoria recorded a 3.7% decrease in total sales, while New South Wales was down 1.0%. On the flipside, Western Australia achieved significant growth of 9.3% for the half, while South Australia was up 3.4% and Queensland convenience stores recorded sales growth of 3.3%.

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“The first half result for the convenience channel, particularly given the circumstances, is very strong and a testament to the quality of service, safe store environment and consistent hard work of the operators and employees in our industry,” AACS CEO Jeff Rogut said. “Growth has been maintained in many categories and even though people are staying home more, meaning fuel destination visits are down, those categories which have been the subject of innovation and which are the future of our industry, including fresh food and coffee, are well-placed to rebound once a sense of normalcy returns. “The work AACS has done with government to ensure convenience stores continue to be deemed an essential service has been an important comfort to customers who have relied on our channel for the items they need. In fact,

INDUSTRY NEWS many consumers prefer the convenience store experience in the current climate because of the safe and clean shopping environment on offer, and because stores are less crowded,” Mr Rogut added.

Food on the go was the second highest category in terms of both dollar and percentage growth in 2019, but declined over the June quarter by 4.4%. However, reflecting the unique circumstances, Take Home Food was up 7.8% in the last quarter.

“Obviously, challenges remain and the full year result for the industry – like every industry – is likely to be further impacted by the pandemic. But those who work in the industry can be confident that the value proposition the convenience channel provides to consumers is clear. If anything, the important role we play in local communities across Australia has been reinforced in these unprecedented times.”

Hot dispensed beverages, the fastest growing category in 2019, was impacted by COVID-19 in the first half with MAT growth of 18% in 2019, down to 5.9% MAT in the first half of 2020.

AACS STATE OF THE INDUSTRY HALF YEARLY REPORT 2020: PERFORMANCE HIGHLIGHTS Growth in the Packaged Beverages category was subdued at 1.0%, with Energy Drinks and Carbonated Beverages being the bright spot, having maintained strong growth on a moving annual turnover (MAT) basis of 3.8% and 3.2% respectively. The Tobacco category is now growing at 1.7% in MAT however last quarter’s growth of 10.3% stands out, as the trend towards consumers seeking cheaper options continues to play out. KPMG released its latest report on illicit tobacco in Australia during the first half which shows illegal products make up approximately 20% of the total tobacco market; a highly concerning development for the community.

Confectionery has had a tough start to the year with MAT now -0.9% after a June quarter decline of 10.6%, with the Gum and Medicated category reporting a 29.8% decline over the last quarter. Chocolate blocks picked up some of the slack, growing at 5.8% over the same period.

FURTHER INFORMATION: Jeff Rogut Chief Executive Officer Australasian Association of Convenience Stores Ph: +61 467 873 789

MEDIA ENQUIRIES: Stephen Naylor Wise McBaron Communication Ph: +61 (2) 9279 4770

The Snackfoods category had its strongest growth in years in 2019 at +4.1% however, on a MAT basis, that growth is now 0.1%. The Ice Cream category has continued to grow off the back of strong 5.2% growth in 2019, slowing only slightly to +3.6% MAT as at the end of the first half. In the June quarter however, the growth rate lifted to +8.2% to be the strongest performer of the Impulse Snacking categories.

The full AACS State of the Industry Half Yearly Report 2020, prepared for AACS by Convenience Measures Australia, is available free to AACS members and is available for purchase by non-members for $299.00 [inc. GST].

Energy drinks and carbonated beverages continue to perform well in P&C.

This is the time for retailers and suppliers to collaborate and present a clear value proposition in non-impulse categories while the market is captive.” - Jeff Rogut

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INDUSTRY NEWS

Obviously, challenges remain and the full year result for the industry – like every industry – is likely to be further impacted by the pandemic.” - Jeff Rogut

Shopper missions are shifting from buy for now, to buy for later.

SATISFYING NEW CUSTOMER MISSIONS AACS members recently tuned in to an exclusive online presentation from Jackie Campbell of IRI who provided some new perspective to the industry’s results thus far through the pandemic, and some interesting considerations for the future. Taking a deep dive into the recent performance of the P&C channel, Jackie shone a light on the rebound in performance since the lows of April and May. Interestingly, with many unethical and dodgy retailers unable to trade, the legal tobacco category has been a major driver of the turnaround, along with general merchandise in the nonfood category. But another perhaps unexpected trend has emerged. There’s evidence in the numbers of a shift in shopper missions from immediate consumption to buy now, consume later.

offers stores a window of opportunity to increase their grocery market share. “This is the time for retailers and suppliers to collaborate and present a clear value proposition in non-impulse categories while the market is captive,” he said. Nevertheless, for every opportunity, as Jackie pointed out, there’s a challenge. With so many jobs affected by the pandemic, and financial insecurity an increasing concern for people, a ‘recessionary mindset’ will continue to affect shopping behaviour and spending habits. “A new emphasis on price is evident, as consumers are demonstrating less willingness to pay a premium for quality and, potentially, convenience,” Mr Rogut said.

Over the course of 2020, categories such as Food-on-the-Go and Ready-to-Drink beverages – both key growth categories in recent years – have been overshadowed by Take-Home-Meals and TakeHome-Beverages.

“But the other important variable driving consumption at the moment is simple joy. Lockdowns, restrictions on travel and other lifestyle inconveniences have seen people look to simpler comforts to bring a smile to their faces. In a convenience sense, this is reflected in renewed growth in categories such as ice cream, salty snacks, chocolate and biscuits.

“The notion that convenience stores are overly-dependent on generating impulse sales, capitalising on fuel destination visits, is being challenged. We are seeing more consumers visit stores as part of their planned shopping missions, and this opens up new opportunities,” AACS CEO Jeff Rogut says.

“Looking ahead, as restrictions are slowly wound back, local holidays and family road trips are likely to boom over coming months, unlocking considerable opportunities for convenience stores. Now is the time for operators to prepare Christmas orders and ensure sufficient stocks of key items.

“The clean, uncrowded, safe environment on offer is contributing to this shift away from convenience stores being viewed primarily as places to service impulse needs. While we don’t necessarily view it as a permanent shift in use, this trend

“There are attractive demand opportunities for the channel and, given the economic emergence from the pandemic will be a protracted, long-term prospect, it’s these kinds of opportunities that will need to be captured,” Mr Rogut said. C&I

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INDUSTRY NEWS

OPTUS AND PACIFIC OPTICS TEAM UP OPTUS and Pacific Optics partnership set to take the telco to new heights in P&C A new retailer management partnership between OPTUS Pre Paid and Pacific Optics in petrol and convenience is already proving to be a great success. The deal, which followed months of negotiations, was announced last month and has seen Pacific Optics assume responsibility for the retail management of OPTUS’ Pre Paid accounts, including capturing orders and merchandising.

September this year. They add a breadth, depth and frequency of coverage that is second to none, added to this is their telecommunications knowledge – and collectively I think we are set up for mutual success. Not surprisingly the early dealings with Theo Foukkare and his team have been outstanding. He, along with Ryan and Harry, have made the transition as seamless as possible and we look forward to the relationship only strengthening into the near future.”

Pacific Optics will look after national and state based account management, in-store merchandising, POS execution and planogram maintenance, promotional planning, capturing of replenishment orders and daily operational management. It will also manage orders and offer in-store support.

OPTUS will continue to maintain its own team of experience Territory Executives in each state, who will manage other channels while supporting field partners, including Pacific Optics and Retail Safari, which Mr Bailey said will ensure the telco was well placed to deliver for customers, retailers and consumers.

OPTUS will maintain any direct relationships with customers, issue invoices and deliver physical goods and has retained its account management and field management teams. There will be minimal changes for retailers.

The enthusiasm is shared by Mr Foukkare, who believes the partnership, which arose from a conversation at a function late last year, could drive OPTUS to become the number one telco in P&C. Describing the relationship as one built on passion, open communication, shared goals and collaborative planning, he said great things were ahead for both.

According to OPTUS Pre-Paid Associate Director John Bailey and Pacific Optics General Manager Sales, Theo Foukkare, who were both instrumental in striking the deal, it’s already proving a successful endeavour. As Mr Bailey explained, Pacific Optics has opened up new horizons for OPTUS in P&C and the partnership will be instrumental to helping OPTUS reach their short to midterm goal to win in the channel.

When it became apparent that Pacific Optics would have an opportunity to represent OPTUS – we jumped at it.” - John Bailey, OPTUS

“From the start we were interested in gaining access to a successful field process, business model and reach that we ourselves were never able to fully emulate, so when it became apparent that Pacific Optics would have an opportunity to represent OPTUS – we jumped at it. For a long time they have set the benchmark in the petrol and convenience industry, winning countless awards off the back of consistent coast to coast delivery of account and sales management,” Mr Bailey said. “After many months of negotiating, planning and preparing, we are thrilled to be underway with Pacific Optics from the start of

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“I personally worked on this new agreement over an eight month period, and I can only say that I have been impressed with every interaction with the OPTUS team every step of the way. The entire team at OPTUS, led by John Bailey, has been a pleasure to deal with. I wanted to say a massive thank you to Rob Shelton and Jess Evans for all of their hard work to bring this to life.” The partnership will also allow Pacific Optics to pair its award winning service and account management, great product range, supply chain expertise and strong promotional offers with the OPTUS network, Mr Foukkare said, which will further strengthen the position of both companies in the channel. “We have enjoyed a very successful nine year history in the Pre Paid Telco category to date, and this new partnership will only allow us to build on these successes and take OPTUS Pre Paid to number one in the Australian convenience channel.” C&I

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INDUSTRY NEWS

TGA DRAFT RULING SLAMMED BY INDUSTRY AS ‘ABSURD’

The TGA’s proposal would see pharmacies exclusively sell e-cigarettes containing nicotine.

Leading figures say the proposed policy is bad news for consumers and small businesses alike.

The Therapeutic Goods Administration is one step closer to allowing the sale of e-cigarettes containing nicotine and nicotine fluid for vaping – with a doctor’s prescription.

retailing vaping products in line with regulations. He added the additional costs involved in visiting a GP would be a deterrent to people seeking alternatives to tobacco.

The TGA last month announced it had reached an interim decision which, if finalised, would allow prescriptions for the products to be filled by community and online pharmacies.

“The process is obviously too expensive and inconvenient for people. It makes access to safer products more difficult, which defies logic. Instead, it encourages them to continue their habit and abandon their efforts to quit.”

The decision would also see a ban enforced on imported products, unless ordered with a valid prescription and imported under the TGA Personal Importation Scheme. Sales of nicotine e-cigarettes and fluids, as well as their possession or use is currently illegal in all states and territories, bar South Australia. In a statement on the decision, the TGA said the move was to encourage and support smoking cessation. “…The requirement for a prescription would provide an opportunity for patients to consult with their medical practitioner as to whether e-cigarettes or other products containing nicotine are right for you as an aid to stop smoking,” it said. “Medical practitioners are well placed to support smoking cessation and advise on how to reduce the risks associated with nicotine use.” However AACS CEO Jeff Rogut, who has been vocal in his opposition to the proposal, argues if consumers have to visit a GP to get a prescription, and have this filled at a pharmacy, it will both ‘fail in a health sense’ and be a ‘slap in the face’ to small businesses.

It makes no sense to make it harder for people to access products that are safer for them.” - Jeff Rogut, AACS

“This absurd proposal can be revised. It must be, if our health authorities are serious about helping people looking for a safer alternative to tobacco,” Mr Rogut said. “It makes no sense to make it harder for people to access products that are safer for them. There is a positive health outcome that is simply being ignored.” Mr Rogut added that as convenience stores are responsible sellers of legal tobacco, they had proven themselves capable of

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Pointing to NZ, where vaping products can be sold through retailers who hold a specialist license, he deemed the decision ‘short sighted’ and urged the TGA to reconsider. National Retail Association CEO Dominique Lamb also criticised the draft ruling, describing it as ‘ridiculous and inconsistent’. “This outcome is not only the worst of both worlds for small retailers who will be locked out of selling smoke-free nicotine but still able to sell more harmful tobacco, but it’s also the worst of both worlds for consumers who want to quit cigarettes,” Ms Lamb said. “It also makes no sense that the Federal Government would lock out small business owners from this market when so many of them are already struggling to stay afloat. A far better option would be to allow the sale of smoke-free nicotine in the same places and with the same legal restrictions as currently apply to cigarettes and tobacco. This would be a far more sensible and consistent outcome, which would help both smokers and small businesses to give up cigarettes.” The interim decision is open to public consultation until November. A final decision is expected to be announced in December, which would become effective mid-next year. It follows Federal Minister Greg Hunt’s delay of a ban on imports of nicotine-based e-cigarettes. Initially set to be introduced in July, this has now been pushed back until early next year, following a backlash from both the public and government MPs. Under the proposed ban, imports would only be authorised for those with a doctor’s prescription and fines of up to $222,000 could be handed to anyone in breach of the ban. C&I

PETROL NEWS ROUNDUP DAN ARMES Founder of ServoPro

What actions should you take if you find you are not compliant in a certain area? The answer is simple, ask for help.” – Dan Armes

IT’S TIME TO GET COMPLIANT!

How to get a handle on the many and varied compliance and regulations in P&C.

don’t know of any other retail business that has to deal with the number of rules and regulations as the fuel industry. Not only do we have an expansive set of compliance areas to adhere to, but the regulations constantly change. However, we are not here to complain because this is the business landscape we find ourselves in. What we need to focus on is both understanding the compliance regulations and putting systems into place to ensure we are all over it. Fuel retailers not only find it difficult to fully understand compliance areas of their business, but have trouble keeping up to date with constant changes as well. Compliance checks can come from a variety of sources, including government departments such as the Environmental Protection Agency (EPA), Fair Work, Safe Work Australia, National Measurement Institute and local councils. Representatives from these organisations sometimes provide notice they will be conducting a compliance check but also, in many instances, they turn up unannounced.

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In the past three to five years we have seen a focus on employment conditions and wages. Many fuel retailers have been fined for not complying with award wages, in many cases because they didn’t understand the award. In the last two years, we have seen the regulators focus their attention on staff training with many of our members receiving audits into staff training compliance. The Australian government wants employees to be fully trained in all the areas of work relating to petrol stations. Auditors want to see proof employees have been trained and that the employer is keeping proper records. This is fair enough, too. A petrol station is a dangerous place to work and the last thing anyone wants to see is someone getting injured, or worse. ServoPro’s online training platform has identified the key areas of staff training required by government departments. These include armed robbery safety, fire safety, food safety, respect in the workplace, LPG safety, selling tobacco and general safety. These are some of the main areas of staff training you should be considering.

PETROL NEWS Environmental compliance is another very important area for petrol station operators to understand. There have been some major changes in recent times with environmental compliance. For example, the NSW EPA recently delegated environmental compliance to local councils who have been very proactive in making contact with petrol station operators to communicate their requirements. Safety areas in petrol stations can easily be forgotten about or missed. For example, is your first aid kit fully stocked and up to date? Are high-vis vests available? Is there an intrinsically safe torch for use on the forecourt available? Are protective gloves and other PPE available for handling dangerous goods such as LPG? Are you compliant in the legal and licensing areas of running a petrol station? Do you have the correct signage required for selling tobacco products? Is your license for preparing and selling food valid? Is your dangerous goods license up to date and accessible? Many petrol stations are not just selling pre-packaged food, but also preparing and selling food products on site. If this is the case, it is imperative that you comply with a range of regulations. Does your staff know the correct temperatures for storing hot and cold food? Is a fire blanket available near fryers, stoves and ovens? Are cleaning and sanatising chemicals accessible and clearly labeled? Don’t wait for an audit, in which case you may be shut down for not complying! Are you regularly checking compliance areas in your shop? Areas that I often see forgotten are electrical cables undamaged, tested and tagged. Do cigarette cabinets comply with legislation? Are storage areas for oils and chemicals on shelving below food and beverage products? There should be no risk of chemicals leaking onto food products. LPG decanting and cylinder exchange is another area where there are a lot of legal requirements that can be missed. Are your decanting cylinders located the correct distances from building entry ways, drains, footpaths, fuel dispensers or ignition sources? Does your LPG cylinder exchange cage comply with regulations? The petrol station forecourt has the most areas of compliance. Do you have the correct warning signs displayed at the dispensers? Are dispenser hoses regularly checked for cracks and leaks? Are fuel tanks and dispensers clearly labeled so customers, staff and other visitors to the site can easily see the type of fuel they are working with? Are tank vent pipes the correct distance away from buildings and ignition sources? If we were to list all the areas of compliance in a petrol station we would probably fill this entire magazine. The key to getting and staying compliant is to identify all the areas of compliance and then regularly check them. Have systems and procedures in place so compliance areas are not forgotten about. You can create your own monthly manual site audits by creating paper checklists. You could also pay for an external source to come in and check your compliance. The easiest way to check you are compliant is to use an online platform such as the Site Audit App, which is provided to all ServoPro members. It is an easy, comprehensive and cost effective way to check your ongoing compliance.

Whichever method you choose, it is important that you have evidence that audits have been done through written documentation and images. Government auditors will undertake their own site inspections as well as assessing whether regular compliance checks have been completed by the petrol station operator. You have a legal responsibility to understand the various laws, rules and regulations that govern running a petrol station. Taking steps to ensure your petrol station is compliant will give you peace of mind that you are not only doing the right thing but also that you won’t get any nasty surprises from a government auditor. By being fully compliant you have the ability to let customers know in your advertising and marketing that you are a responsible fuel retailer and that staff and customer safety is important to you. What actions should you take if you find you are not compliant in a certain area? The answer is simple, ask for help. At ServoPro we have identified the three main areas of compliance that fuel retailers struggle with. These are human resources, workplace health and safety and legal requirements. ServoPro members have access to a Help Desk for each of these areas where they can speak with an expert in each particular field. We also provide help and advice on all other areas of compliance, including food safety, environmental and more. Take compliance seriously. With some robust systems and procedures in place compliance doesn’t need to be a complicated and confusing area of running a petrol station. Remember, if you need help, reach out and ask. C&I

With some robust systems and procedures in place compliance doesn’t need to be a complicated and confusing area of running a petrol station.” – Dan Armes

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PETROL NEWS

Government announces plans to bolster domestic fuel supplies The federal government has moved to secure domestic fuel reserves as the Australian Workers’ Union has warned that low supplies leaves Australia in a precarious position. Prime Minister Scott Morrison has pledged to invest $211 million to build 780 million litres of new onshore domestic fuel storage and to support local refineries to remain operational. A minimum of onshore stockholding for jet and petrol stocks will also be introduced as a ‘safety net’, while diesel stockholdings will be increased by 40%. Minister for Energy and Emissions Reduction, Angus Taylor, acknowledged refineries were experiencing financial strain and said the support will give the industry added security, while ensuring sectors reliant on fuel, such as mining and farming, would continue to access adequate supplies. Government estimates put the flow on savings to consumers through price suppressions – made possible by having a domestic refinery capability, at $4.9 billion over a 10 year period. Government modelling found Australians would pay 1 cent per litre more if all refineries in Australia were to close. “It is critical that Australia has control over its fuel security arrangements and the Government is making sure of that,” Mr Taylor said. The government will also work to ‘modernise’ online fuel reporting systems and remove application fees for fuel standard variation requests. It follows the government’s $94 million spent in April to secure fuel reserves in the US to bolster Australia’s fuel stockpile. However National Secretary of the AWU Daniel Walton said this was not a long term solution and without significant action Australia could see potential shortages. A new report released by the Australasian Refineries Operative Committee and the AWU recommended adding 1.12cpl to petrol prices to shore up domestic fuel reserves. Releasing a statement on the findings, the AWU said together with the AROC they were calling on the government to develop a national action

plan to secure supplies, claiming the country has the lowest reserves of any member of the International Energy Agency. It put the average consumption days of fuel for the last financial year at 23 for petrol, 20 for diesel and 25 days for aviation fuel. The AWU has warned global supply disruptions would both ‘cripple’ the Australian refining industry and greatly impact industries reliant on fuel, saying “Australia would grind to a halt within days”. “COVID-19 has served as a warning. Any disruption to the global energy supply chain would leave Australia very isolated especially as we have very low reserves already. The knock-on effect would be catastrophic and affect every single part of our economy, as well as our national defence,” Mr Walton said. “The positive news is this has been a wake-up call to industry and our political leaders who now understand the threat and are taking it seriously.”

Fuel security arrangement between oil refiners and AIP to continue until March The Australian Competition and Consumer Commission has approved an extension for major oil refiners and the Australian Institute of Petroleum to continue to cooperate to secure fuel supplies until at least March next year. The decision was made due to the ongoing impacts of the pandemic on both domestic fuel supply, the drop in fuel demand and the potential for ‘major disruptions’ to both domestic and international supply chains. It will allow the AIP, Caltex Australia, Mobil Oil Australia and Viva Energy to coordinate and review the capacity for both refining and fuel storage. The extension follows feedback collected by the ACCC on its interim authorisation of the arrangement, granted in April. It does not allow for any price agreements. “We believe that allowing fuel companies to coordinate fuel delivery, processing and storage if there is a critical supply disruption as a result of the pandemic, will support the fuel sector to ensure the supply of fuel products in Australia is secure and reliable, and reduce the risk of shortages,” ACCC Commissioner Stephen Ridgeway said. Mr Ridgeway added the benefits of ensuring a secure fuel supply to Australian businesses and consumers through the arrangement outweighed any concerns over reduced competition. “While we acknowledge there are some risks the conduct may reduce competition, the limited scope and duration of the authorisation, and the reporting conditions mean the risk is low.” The watchdog did, however, only authorise the arrangement for six months, rather than the 12 months sought by the applicants, stating it believes the impacts will lessen within six months and a full year would risk exacerbating any potential long-term impacts. 62 October/November 2020 | C&I | www.c-store.com.au

PETROL NEWS

Two-decade petrol price low spark retailer margin hikes, report finds Petrol prices fell to their lowest level in more than two decades for the June quarter due to the pandemic and resulting restrictions, a report released last month found. The Australian Competition and Consumer Commission’s latest petrol monitoring report found the average retail price for the quarter across Sydney, Melbourne, Brisbane, Adelaide and Perth was just 109 cents per litre (cpl) – a significant 28.8cpl drop from the March quarter. In response, retailers hiked up their retail margins across the five largest cities, the report found, with the annual average gross retail margins for 2019-20 at their highest recorded in the 17 years the watchdog has been calculating them. Annual gross indicative retail differences (GIRDs) – the difference between retail and terminal gate prices, for 2019-20 were also found to be 2.7cpl higher than the previous year across the five cities, at an average of 14.7cpl. ACCC Chair Rod Sims said the watchdog was concerned petrol retailers appeared to be holding on to higher gross margins, but noted this may be due to the pandemic’s significant impact on dropping petrol demand, which was 27% lower for the quarter, compared to 2019. “There are some fixed costs involved in petrol retailing and it’s likely that businesses have increased gross retail margins, to some degree, to offset lower sales volumes,” Mr Sims said. “While less petrol being sold during COVID-19 restrictions may be a contributing factor to the record high gross retail margins, we’re not convinced that this fully explains the levels we’re seeing.”

Average fuel recovered slightly to finish the June quarter at an average of 119.3cpl, however this is still down on the annual average. In regional areas, prices were an average 7.5cpl more than the five largest cities, at 116.5cpl for the quarter. Price differences between city and regional areas were found to be lessening, with the annual average gap down 2.5cpl on last year.

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Petroleum equipment and services

Gallagher Fuel Systems

Gascorp Pty Ltd – Budget Petrol

Gallagher Fuel Systems is a designer, manufacturer and supplier of quality fuel dispensing systems. The innovative PULSE fuel dispenser range combines advanced electronics, corrosion resistant metal work, the highly accurate Tatsuno meter and a modular design. All Gallagher PULSE dispensers are internet capable. With the Data Centre application, each dispenser's performance can become visible, via any internet enabled device. This powerful tool with its automated configurations and tools can fix issues remotely and reduce site visits. It brings pro-active servicing to the industry and significantly reduces overall servicing costs. Gallagher Vapour Recovery solutions fully comply with environmental regulations, provide comprehensive compliance reporting and reduce forecourt pollution, creating a healthier working environment and community. Gallagher’s latest edition to the PULSE range are the 5 product dispensers. The pressure only model offers one of the smallest footprints at only 2100mm. Mixed pressure and suction models are available with integrated LPG as an option.

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. We can help independents looking to: • Lease their property to a reputable company • Sell their property freehold • Reimage and brand their site • Change fuel supplier and retain their independent brand

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

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

Shipman King Pty Ltd

ELGAS SWAP’n’GO®

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 • Monitoring Wells and Ground Boxes Cap Assemblies • Durapipe PLX Polyethylene • Upflow Vents, Pressure Piping System Vacuum Vents • Underpump Containment Sumps • Dip and Fill Product Markers and Browning Spill Safe Boxes • Vapour Recover Equipment, Stage • Adblue Equipment 1 and 2 • Sloan-LED Canopy Lights • Overfill Prevention Valves • Cim-Tek Spin-On Filters complete with aluminium tube • Husky Fuelling Products ready for retro fitting • Aboveground Tank Equipment For their complete product range, please visit Shipman King’s website.

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

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

64 October/November 2020 | C&I | www.c-store.com.au

SUPPLY-FIND

Other suppliers

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 22,795 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

0405 517 115 safa@c-store.com.au

Ben Curtis

0415 404 264 bcurtis@c-store.com.au

Abacus Stocktaking Services Accor Action Installation & Services Active Eye Advanced Lighting Technologies Australia Inc Aitken Rowe Testing Laboritories Augusta Properties AusSport Australian Enviro Services B&B Industrial Benchmark Business Sales & Valuations BP Australia Capricorn Society Cavvanba Consulting Coffey Environmental Services Commercial Indemnity Compac Sales Conservelec Douglas Partners Earth Air Water Consulting & Monitoring Energy Action Environmental Monitoring Solutions

Envirotank Envirowest Consulting EquipCo ETP International F&M Supplies Fuel Data Solutions Fuelgear Geo-Logix Gilbarco Australia HMC Intertek Testing Services Jeffery & Katauskas Jon Jen Trading Leighton O'Brien Liberty Oil Liquip International Metro Petroleum Mobil Oil Australia MPHP Architects MTAA Superannuation Fund North Cross Australia Northern Petroleum Equipment Services Pacific Guage Park Perich Constructions

Perisale Australia Petroleum Tank Technology Precision Stocktaking Services Puma Energy RCA Australia SGS Australia Spill Station Australia Tank Solutions Tennco The Remediation Group Trans Tasman Energy Group Trax Retail Solutions Unigas United Petroleum Urth Energy Valvoline Wayne Fuelling Systems

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