DECEMBER 2019/JANUARY 2020
CONTENTS
EDITORIAL
DECEMBER 2019/JANUARY 2020
26
56 Season’s Greetings!
A
08 FACETIME
Phil Sims, Robern Menz
12 STORE REVIEW Good2Go, Sydney
16 AACS
Championing Convenience at the AACS Annual Awards
22 CATEGORY FEATURE: NON-DAIRY MILK Milk of all varieties except from a cow is in focus inside this issue
26 CATEGORY FEATURE: WATER, STILL AND SPARKLING Still and sparkling water are both still strong performers in the convenience channel
30 CATEGORY FEATURE: HEALTHY SNACKS 'Better for you' snacks are still exceeding expectations in terms of consumer demand
s 2019 draws to a close and we welcome 2020, it’s the perfect time to reflect on the challenges faced in the year that has passed and it’s also the time to look ahead to the future at the opportunities before us. If 2019 is anything to go by, it’s sure to be another interesting time to be working in our industry. Inside this edition, we head to South Australia and get up close and personal with Phil Sims of Robern Menz in our FaceTime profile. He tells the story of his experience in the family business and how he came to lead one of Australia’s most loved companies. We hit the streets with Mohammed Sayed in our Store Review and discover some of the reasons the Good2Go group is making such a bold impression. The availability of fresh water is rapidly changing all over the world. Thankfully here in Australia we have an abundance of
manufacturers and brands delivering the life source. In this issue, we find out the trends emerging in still and sparkling water. Milk is another hot topic. What constitutes milk? Is milk only what comes from a cow? Or are other drinks also milk? We all know that there are all kinds of milk these days and many of the brands on the market are not from any animal at all. We check out what’s new in non-dairy milk. Healthy snacks continue to be a very strong category in convenience. We discover the new products and emerging trends in the ‘good for you’ class. Finally, we bring you all the fun and festivities from the UCB and New Sunrise conferences. Enjoy the holiday period, and may you have a happy and safe festive season. Warmest, Enjoy the issue,
Joan-Maree
32 PRODUCT NEWS
C&I CHOICE, and all the latest NPD
44 OPINION PIECES
Darren Park, Charles Watson
48 INDUSTRY NEWS
UCB and New Sunrise conferences
60 PETROL NEWS
Dan Armes, 7-Eleven, Chargefox
64 SUPPLY FIND 6 December 2019/January 2020 | C&I | www.c-store.com.au
Safa de Valois
James Wells
Keith Berg
Ben Curtis
Jeremy Gough
PRIME TIME
Waterfords now Available for Kids!
Majors introduces Smartflex
The successful Waterfords 'Lite & Fruity' Mineral Water range is about to be launched in an exciting new 'Kids' 300mL pack. Waterfords Lite & Fruity Kids is a better-for-you range of sparkling drinks made from mineral water and boasting the following features which parents will love: • Only 240kJ per serve (standard 300mL Carbonated Drinks are around 580kJ per serve!) • Natural Colours & Flavours • Made from real Fruit Juice The Kids range comes in two flavours – Raspberry and Blackcurrant and is packed in a convenient, portion-controlled 300mL PET bottle. Both flavours will be available in January 2020, just in time for back to school! To stock the range or to find out more information, call Tru Blu Beverages on (02) 9912 6700.
Majors has introduced Smartflex professional refrigeration, the exclusive technology patented by ISA that enhances product visibility but significantly lowers power consumption. Thanks to its revolutionary system of mobile wings that open ‘on demand’, Smartflex technology introduces a new concept of display units into the world of professional refrigeration. Taking a conventional wall-mounted display unit as a reference, with the Smartflex technology, depending on use, it can obtain energy savings of over 40%. The door opening speed has become even more intelligent. When customers get close to the unit, the Smartflex will open and close the doors quickly and efficiently without wasting time. Therefore, it is possible to customise the distance and the automatic opening time of the doors. Smartflex combines the advantages of accessibility of a refrigeration counter without doors with the necessity to reduce consumption and environmental impact, that is guaranteed by the doors.
Not All Lighters Are Created Equal – There Is A Difference
LeVelling up!
Pocket lighters are different from other consumer goods and pocket lighters sold in Australia are required to be safe. They are only presumed safe if they comply with two International standards: ISO 9994 (Safety Standards) and EN 13869 (Child Resistance). The International standard ISO 9994 requires the resistance of lighters to various critical tests, whilst EN 13869 requires BIC DIFFERENCE lighter resistance to ignition by at least 85% of children under 51 months old. Lighters are considered inherently hazardous since they produce a flame and contain gas. That’s why BIC ® manufactures its lighters to a much higher standard, to er withstand more severe conditions than the T he only lige.ht ng ra to standard requirements. All BIC ® lighters meet or exceed the ISO 9994 safety standard specifications and are child resistant. OUR QUALITY, YOUR SAFETY.
BIC Australia, level 4, 574 St Kilda Road, Melbourne VIC 3004, (03) 9533 3500 † (Consumer Product Safety Standard) (Disposable Cigarette Lighters)
*Source: Aztec Data Total Lighter to 10/12/2017.
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
AU.BICWORLD.COM
It’s no surprise that LeVel Lemonade is in a period of strong growth. The company has shipped more than a third of a million bottles. In October alone, LeVel Lemonade was sold to more than 80,000 thirsty consumers. According to LeVel Beverages Director, Chrish Graebner, the company is fast approaching 4,000 stockists. The drink is hard to miss with signage on the back of inner-city buses as part of its national poster and transit campaign commenced in the lead up to Christmas. For more information contact Chrish.graebner@ LevelBeverages.com. LeVeL Lemonade is advertising in all major Australian cities on Buses, Trams and Digital billboards all the way throughout summer!
Editor at Large: Keith Berg
Features Editor: Jeremy Gough
Editor: Joan-Maree Hargreaves
Graphic Designer: Adrian Tipper
Account Manager: Ben Curtis
Contributor: Simon King
DISCLAIMER This publication is published by The Intermedia Group Pty Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by Australian and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials. The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded save for those conditions and warranties which must be implied under the laws of any State of Australia or the provisions of Division 2 of Part V of the Trade Practices Act 1974 and any statutory modification or re-enactment thereof. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. Copyright © 2019 - The Intermedia Group Pty Ltd.
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December 2019/January 2020 | C&I | www.c-store.com.au 7
FACE TIME A family affair: Richard (brother), Grantley (father) and Phil Sims
A FRUITFUL BEGINNING Phil Sims was 25 when his family fruit business, Robern, bought the Menz confectionery business from Arnott’s Biscuits in 1992. Sims is now CEO and Director of Robern Menz.
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hil Sims was born in Adelaide and raised with his brother and sister amongst the stunning nature and thriving fruit fields of Riverland. “We’re a fourth-generation family business, and since our ancestors first moved to South Australia, we’ve been passionate about the people and produce of this state. I have many fond memories of growing up in the Riverland, and when I was old enough, I helped out in the factories, which specialised in fruit production. Those hot summers we spent a lot of time jumping in the irrigation channels to cool off! I do remember a lot of conversations about the family business around the dinner table so it was always on my radar that it was likely to be the path I would follow. I even have a distant memory of a time when my father and 10 December 2019/January 2020 | C&I | www.c-store.com.au
grandfather were actually in competition with each other, selling similar fruit products to the same customers. But they soon got back together again! I’m fortunate to work closely with my brother, Richard who is Robern Menz’s GM Operations. We both fell into distinct paths which has made our roles in the business quite distinct. Rick went into industrial engineering, which naturally set him up for the operational side, whereas I specialised in business development and marketing. Our skills complement one another, and lead to a natural balance. I went to school in Adelaide, and sport was a big part of my life, both participating and watching. AFL and cricket were – and still are – favourites. I completed University studies (a Bachelor of Business major in Marketing) at University of SA. I competed
FACE TIME FEATURE professionally in the SANFL in the 1980s before the AFL teams were established in Adelaide. Upon leaving University I joined multinational Schwarzkopf personal care business in their grocery sales division. It has always been important from a family business point of view that we all developed a strong educational background to bring knowledge into the business. In hand with this, I was always encouraged to get some experience within the broader business world, working for someone else, to bring knowledge and experience to Robern Menz when and if the time was right. I came to the business when the opportunity arose – when our family fruit business Robern bought the Menz confectionery business from Arnott’s Biscuits in 1992. This was a step change for the business and led to a period of growth. Further studies for me included an import/export certification, a AICD Company Directors course, an MBA from Adelaide University and more recently, I’m a graduate of Oxford University’s (UK) advanced management and leadership course. I’m a bit of a believer in the importance of continuous learning and investing in personal growth and development. When I graduated from university I interned in Portland, Oregon for three months in the US at a food mail order
Advice for retailers We are fully appreciative of and strive to exceed our key retail partners expectations and add value to their business’ through our brands, long term heritage Australian brands (Violet Crumble, FruChocs and soon to include Polly Waffle) that Australians have grown up with and are a part of our culture. • Don’t underestimate the value and connection your customers will have with Australian iconic brands – their childhood memories and their wishes to pass these onto their children as well as new Australians wanting to connect with their new home. • Chocolate and confectionery are impulsive treat foods that will always reward and excite people • The opportunity is how retailers can capitalise on brands such as Violet Crumble to enhance greater floor traffic and grab the add on impulse sale. This is a brand that has proven this over time and history.
Advice for suppliers We value our suppliers and view them as being critical in a partnership to achieving our growth aspirations. We are proud to have had many long term and enduring relationships. • With a rapidly changing world around saving the planet and building sustainable communities we seek to tap into our suppliers’ knowledge to learn and to help us be a leader in these fields. • We appreciate and support supply partners whom share the core values that we do as a business. • A key component of our continued success will come from the quality, reliability and timeliness of the ingredients that make up our products and build our brands.
business, which was a tremendous learning curve and a great opportunity to learn all aspects in this business operationally to business development and finance. With a growing family and their activities around sport there doesn’t leave a lot! Time remaining would usually involve personal exercise. When I have the time, I’ve kept up my interest in sport by coaching in the community, I’ve coached an AFL junior team, and have been an Auskick coach for a number of years. We’re proudly South Australian, and our business is active in programs to support both the planet and growing communities such as taking part in community events such as by example participating in local events, donating time and funds to clubs and charities and focusing on green energy solutions. My family includes my wife, three children and a dog that rules the house! My brother Richard also has teenage children, and they are beginning to think about their career aspirations, and we provide them the support they need. They’ve helped out with the business, working in the retail shops, at the Royal Adelaide Show and as part of our mascot program, ‘Mr FruChoc’ – giving them a taste for the business at a young age. We have what we call a ‘Family Constitution’, ensuring the family ethos is at the heart of the business which provides guidance as to family matters such as pathways into the business. Ultimately, it’s their future, however we’ll support them with whatever path they choose to take. Where would I like to be in 5 years? Doing what I’m doing now – the continued development of and investing in iconic Australian brands for the local and International marketplace. We’ve had a lot of growth in the past year since we acquired the Violet Crumble brand and we’ll continue to invest in this as a priority brand. Innovation is key for us, for Violet Crumble, Polly Waffle and Menz FruChocs and others, in terms of product development, new formats, occasion products, and investing in broader market channels locally and internationally.” C&I
Where would I like to be in 5 years? Doing what I’m doing now – the continued development of and investing in iconic Australian brands for the local and International marketplace.”
December 2019/January 2020 | C&I | www.c-store.com.au 11
FEATURE STORE REVIEW
A BRIGHT FUTURE
Just like the city of Sydney itself, Good2Go stores are young, colourful and just a little bit cheeky
Mohamad Sayed outside his Park Street store
We hope that our branding will help add some colour to the City and to people’s lives in the process.” – Mohamed Sayed
S
tand outside Good2Go’s Park Street, Sydney store and you can’t help but notice two things that would be the envy of any c-store retailer: heavy foot traffic and a seriously prime location.
Led by founders, Mohamed Sayed, Nora Sayed and Mohamed Zreika, Good2Go started in 2017 and has been expanding since. The first two Good2Go stores opened at 1/368 Sussex St Sydney and 60 Park St Sydney. The most recent Good2Go store is a kiosk that opened its doors this month at 816 George St Chippendale – right across from Central train station.
Good2Go's diverse product offering
The company plans on adding another two stores to the Good2Go family soon: one in Pyrmont near the Star Casino and another in Green Square in the Infinity Towers.
LOUD AND PROUD It’s not only the stores’ positions that attract attention, it’s their obvious youthful, colourful and optimistic vibe that draws you in. When Nora Sayed, Mohamed Sayed and Mohamed Zreika first established Good2Go, they realised Sydney city was missing a youthful energy. 14 December 2019/January 2020 | C&I | www.c-store.com.au
Good2Go’s Park Street, Sydney store is located opposite the city’s iconic Hyde Park
STOREFEATURE REVIEW “As entrepreneurs, seeking to create change in such a dormant industry, change has been met with open arms as the public perception was that a breath of fresh air is on the scene,” said Sayed. “With a combined background in management, marketing and law, we are three entrepreneurs trying to make an impact for the better.” Mohamed Sayed, said the group were trying to change how onthe-go stores are marketed and operated. “Too many convenience stores look the same, sound the same and stock the same products. We’re here to shake things up!” “Some of our earliest memories are those of sticky fingers from candy bought from our local corner shop; of cold beverages on hot days and hot pies on cold nights,” said Sayad. “Our vision is to preserve that childhood essence while introducing a modern and energetic feel.” The company’s most recent store is a stand-alone kiosk – the first store in the Good2Go network that isn’t a part of a building.
Good2Go stores so far have included cafe-style sandwiches, pies and coffee. They are expanding their range to include pastries and other baked goods as well as hot and cold beverages. “We have love for everyone and anyone is welcome into our store! If you ever need something while you’re on the go, then our Good2Go stores are the place for you,” said Sayed. “Feel free to come in at any time just for a chat or help navigating the City and the events happening around.” The future looks bright for the group with further expansion into the petrol channel likely on the horizon, according to Sayed: “We definitely want to keep expanding so maybe one day in the future, Good2Go will be at a petrol station near you!”
We are a tight-knit group of young entrepreneurs who are trying to change how on-the-go stores are marketed and operated.” – Mohamed Sayed
According to Sayed, business is good. “Of course, everyone is feeling the effects of a sluggish economy but we’re doing our best to stay on top of it,” said Sayed. “Our attitude will always be to remain competitive by updating our branding, customer service and product-range to stay at the forefront of the industry.” “We are a very young company, so our history is still in the making.” C&I
The store stands like metaphors for the city itself. Bright, bold and brash. “Our Good2Go branding guidelines are very bold and involve the use of vibrant and bright colours,” said Sayed. “We’ve had to experiment with a few looks and feels to stay true to our brand while complying with the City of Sydney requirements for the kiosk. We hope that our branding will help add some colour to the City and to people’s lives in the process.” “We want our customers to feel welcomed and refreshed when they’re in our store,” Sayad added.
Preserving the 'childhood essence'
Bright, bold and brash
The company has created a following online as well as in store, with its distinctive look and feel carried through on its social media platforms. “You can find us on Instagram and Facebook at good2gosydney,” said Sayed. “Be sure to follow us and be part of our journey.”
A DISTINCTIVE OFFERING The bold branding is attention-grabbing, but it’s Good2Go’s distinctive product offering that Sayed believes is the most exciting thing about his stores. “We are going to be fitting in as many unique and sought-after products into our store,” Sayed said. “From best-sellers to niche favourites, everyone will be able to find something just for them!” With a focus on being open to improving for the better, the company encourages its customers to give feedback and suggestions on how they can do better. “We will do our best to take care of them and make sure that their needs are being accommodated for. Our customers can expect the latest products in-store and they will be able to take advantage of our ever-changing weekly specials,” Sayed said.
Customers satisfation is always a priority December 2019/January 2020 | C&I | www.c-store.com.au 15
The peak body for the Australian Convenience Store industry, celebrating over 25 years of working for the industry.
THE AACS 20-20 VISION... AND BEYOND Celebrating three decades championing the convenience industry Jeff Rogut AACS CEO
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he Australasian Association of Convenience Stores (AACS) is the champion of the convenience industry and in 2020 we celebrate our 30th anniversary. We have a long history serving retailers and suppliers; we’ve witnessed seismic changes, game-changing innovations, shifts in consumer behaviour, new regulations and much more. As we highlighted some years ago when we produced our AACS Convenience 2020 report important elements to success remain collaboration, innovation and differentiation. Looking ahead to the new year and new decade, our path is clear: we’re focused on helping our members understand where we are, where we’re going and how we’ll get there. Our vision is 20-20.
CONVENIENCE IN OZ: WHERE WE ARE
We have already carved out a reputation for being a viable meal option, but we still see the opportunity for ‘better for you’ food and beverages.” - Jeff Rogut, AACS CEO
Our industry is dynamic and as lines between retailers increasingly blur, new competitors emerge and trading conditions present new challenges, the fast-paced evolution which defines convenience will only speed up more. By virtue of our key reason for being – to offer a convenient service – we are at the cutting edge of retail change. We need to understand our customers if we are to go on the journey with them. We need to know who they are, who they will be in the future, and who we want to shift across. As consumers age, socio-economic backgrounds change and ethnicities diversify, we need to ask ourselves if we’re prepared for the changes. The AACS Convenience Usage & Attitudes research we undertook in 2019 is a valuable member resource in this regard. Members can contact jeff@aacs.org.au for a copy. In 2019, new and different competitors have emerged and more invariably will, so we need to be clear on our value proposition. We must take the time to understand why some customers shop with us, why some don’t, what we offer that no-one else can, and what new entrants are attempting to compete with us on. Food, for one. We have already carved out a reputation for being a viable meal option, but we still see the opportunity for ‘better for you’ food and beverages. Perhaps part of the solution lies in collaborations. Food is still the future for our industry, but whether the focus is on proprietary ranges developed specifically for retailers, or through collaborations with known brands, is a question for operators. Collaborations might be achieved through franchised operations run side by side, incorporated in stores or, like we saw with the partnership between BP and David Jones, fully branded offers. Consumers will determine the success of these strategies but we need to offer them choice. Just as we must continue
18 December 2019/January 2020 | C&I | www.c-store.com.au
to offer customers the choice to buy legal products like tobacco, sold responsibly. Despite the long-term trend in the decline of tobacco sales, our channel continues to do well. Yet Governments continue to pocket exorbitant taxes from consumers on legal tobacco, systematically increasing excise, while largely ignoring the illicit tobacco flooding communities at street level. Illicit tobacco sales account for around 15% of the total tobacco market according to KPMG, with these products potentially more harmful to consumers given their unknown origins and ingredients. Government and health bodies like the Cancer Council still remain very quiet on this issue, instead focusing on responsible retailers of legal tobacco. This needs to change. As for e-cigarettes, the landscape shifted in 2019. Developments in the USA give us cause to pause and consider, and we will need to be guided by experts on this score, although Public Health England still maintains through its research that e-cigarettes are 95% safer than traditional tobacco. The changes we’ve experienced in 2019 set the scene for more challenges and opportunities ahead.
WHERE WE’RE GOING
We have recently seen the first pilot frictionless stores open. How we do this as needs and expectations shift will define our success. Beverages – particularly hot beverages – will continue to grow as new developments in flavours and equipment emerge. Fresh food on-the-go will continue to draw customers in. Quality, freshness, availability and value are the key drivers. You could argue we’ve got lunch covered but convenience is still not capitalising on breakfast and dinner, so these present growth opportunities for savvy retailers. Technology will keep moving the goalposts so we must keep up. Product delivery is an area undergoing change. For instance, drone delivery experiments are already taking place while mobile ordering is here, but are retailers really exploiting this growing opportunity? Similarly, how long before the first frictionless store opens in Australia? Judging by the acceptance, use and growth of this concept in the USA, and while it may not be suitable in every location, it has both potential and appeal in Australia. The savings in terms of labour costs and time for consumers make it a trend to watch and for retailers to experiment with, as costs of implementation reduce and technology improves. Even small format unstaffed stores present opportunities, as was highlighted during the recent AACS Overseas Study Tour to the USA this year and to China in 2018.
It’s clear that convenience must continue to evolve, both inside and outside the store, to ensure we keep pace with what’s happening around us. And we will.
HOW WE’LL GET THERE
We have a reputation for innovation and the runs on the board. Our industry’s recent efforts to innovate, particularly in food, have changed perceptions as to what the convenience offer is. Now is not the time to rest on our laurels. Instead we must ramp up our commitment to innovating and embracing change. By listening to the cues that research gives us, mining international trends and integrating new offers, programs and experiences based on our understanding of our customers, we will grow and flourish in the new decade. We encourage all AACS members to get involved in our full calendar of events and conferences, designed with real practical applications in mind to ensure we all stay at the cutting edge. For membership details contact jeff@aacs.org.au. Our industry will have to embrace – and that means plan for and invest in – artificial intelligence (AI). Ideally, convenience operators are already mobilising in this space. The applications and scope for AI and robotics in convenience, in many areas, is impossible to ignore and hopefully retailers and their suppliers are actively investigating the possibilities here, from supply chain to customer loyalty and interactions. Partnerships will also influence our future success. For example, despite the slow growth of electric vehicles (EVs), there remains only a few operators investing in charging facilities for consumers. Now is the time to flag that we understand the potential future needs of our customers and to start accommodating those needs. Consumers who do drive EVs will need charge points so we should partner with leading providers of this service at appropriate sites. Then there are the impacts of driverless cars to consider, with the potential growth of these vehicles possibly bypassing service stations. How do we continue to offer these consumers value? Our industry, indeed our world, will be vastly different ten years from now. Our challenge and our opportunity are to recognise the writing on the wall, and ensure we not only respond to what’s happening, but lead the way.
AN ASSOCIATION FOR EVERYONE IN THE INDUSTRY
The AACS will continue to serve as the proactive voice and agent for change for the Australian convenience industry. Some of our focus areas as we embark on a new decade are familiar. We will continue to rally against the rising cost of doing business by seeking a more level playing field for our retailers and small businesses generally, calling out anti-competitive tactics, and lobbying Government about the issues on which we are being let down. Crime, including but not limited to petrol theft, is perhaps the most critical issue we’re facing. We will continue to work with other industry bodies and our members to implement new programs and initiatives to protect our people, while advocating for a zero-tolerance approach from law enforcement authorities, the judicial system and legislators. We’ll also keep our foot on the pedal in seeking new opportunities and avenues for growth. We’ll keep working to elevate the Australian convenience range up to the level of the
rest of the world. We are lagging in many respects and Government needs to be constantly reminded that we’re getting left behind. Packaged alcohol is a key potential growth category and the reasons we are prevented from competing in this space are wearing increasingly thin. Unfortunately, and unethically, we know that the reason we continue to be denied the opportunity to compete in the alcohol category is votes. The majority of politicians we speak to agree, when we meet one-on-one, that our commercial argument for convenience stores to sell alcohol, subject to the same trading hours as local competitors, makes sense. But State Governments are reluctant to change to meet convenience needs and retailer opportunities out of fear of a negative headline and repercussions at the ballot box. Ideals of increased competition and convenience are being held back, but we will continue this long battle for retailers and their customers. The provision of pharmaceutical products through convenience stores is another area that consumers would support, but on which Government refuses to engage, with the powerful pharmacy lobby flexing its muscle. Our proposed model is robust: qualified pharmacists in-store selling medicines responsibly, potentially as part of a separate business merely sharing premises, to provide more consumers access to medicines they need for longer periods of the day. Yet Governments are prioritising a lobby group’s interest over customer needs and convenience. It’s not right and we will continue to pursue this opportunity. The October 2019 AACS Overseas Study Tour to the USA showed a retail environment free of many of the burdens imposed by Governments like ours. For instance, cannabis infused products, some claiming health benefits, were sold openly and with full disclosure, empowering consumers with information to help them make informed choices. Given our conservative approach to these matters, the road to legal cannabis sales may be some way off, but this is nonetheless a trend to watch. In the meantime, we need to make sure the legal products our customers rely on us for are still able to be legally sold, like tobacco. This is especially important when the alternative is black market criminals pocketing untaxed profits while selling products of unknown ingredients to people of any age. The AACS is the Association for convenience and it’s our mandate to maintain our focus on the areas important to the industry. With 20-20 vision, we will. C&I
Packaged alcohol is a key potential growth category and the reasons we are prevented from competing in this space are wearing increasingly thin.” - Jeff Rogut, AACS CEO
A vibrant calendar of AACS events keeps members ahead of the game. Here are the 2020 highlights. February
AACS PJ Convenience Challenge - launch AACS Store of the Year - launch
April
AACS 2019 State of the Industry Report launch, April 28/29/30th [Bris/Syd/Melb]
May
AACS Downunder Study Tour, May 28-29: Sydney
August
AACS Convenience Leaders Summit, August 25 - Melbourne AACS Gala & Awards Dinner, August 25 - Melbourne Winners announced: AACS PJ Award, AACS Store of the Year AACS State of the Industry Report 2020 Mid-Year Review released
October
AACS Overseas Study Tour, October 5-9: Destination TBC
Dates TBC
AACS Women in Convenience events
December 2019/January 2020 | C&I | www.c-store.com.au 19
25-26
AUGUST 2020 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
SAVE THE DATES For Australia’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
NON-DAIRY MILK
MILK SHAKE-UP
Non-dairy is causing quite a sales stir
We see a huge opportunity for convenience to grow plant-based milks from their current low base.” - David Tyack, Vitasoy
T
he rise of non-dairy milk in recent years has been nothing short of spectacular, and it is having an evergrowing impact in the convenience store fridge.
indicates that the preferences of health-conscious Australians are changing from the perceived healthier varieties of dairy milk to non-dairy alternatives.”
While traditional milk will no doubt remain central to overall profitability long into the future, convenience operators simply cannot afford to ignore the rapid emergence of plantbased alternatives such as soy milk and almond milk.
Plant-based milks then represent a clear opportunity for convenience stores, particularly when these products have higher margins than cow’s milk and have significantly longer shelf life making them far easier to manage.
According to industry research firm IBISWorld, revenue for the Soy and Almond Milk Production industry – which also includes other alternative milk varieties such as coconut and rice milk – is expected to grow at an annualised 8.3% over the five years through 2019-20.
However, the convenience channel has been alarmingly slow to seize the moment. In grocery, plant milk retail sales exceed $327 million annually and are growing at 7.7% (Aust Grocery iRi MAT 17/2/19). By contrast, convenience sales are just $1 million per annum.
“A rising perception that alternative milk products are healthier than dairy milk has boosted sales over the past five years,” said IBISWorld Senior Industry Analyst, Matthew Reeves. “As a result, the industry’s success over the period has largely come at the expense of the dairy sector.” In a recent statement, IBISWorld said plant-based milk now accounts for approximately 7% of all milk consumed in Australia. “The greatest decline in per capita milk consumption has come from reduced and low-fat milk,” said Mr Reeves. “This trend 22 December 2019/January 2020 | C&I | www.c-store.com.au
Companies like Vitasoy say it is obvious that the total plant milk category is hugely under-developed in the convenience channel, but it believes that could change quickly. “The plant milk category in grocery enjoys sales figures 300 times higher than in convenience,” said David Tyack, Managing Director, Vitasoy. “We see a huge opportunity for convenience to grow plant-based milks from their current low base.” Vitasoy says there are three key portfolio opportunities for nondairy drinks in convenience, all of which are under-represented in the channel.
NON-DAIRY MILK • Hot Coffee occasion: It says hot coffee is now the number one shopper mission in convenience and yet there are still few plant-based milk options (Source: CMA Convenience Shopper Report 2019 – Convenience Channel.) Vitasoy says it now has a range of plant-based milks crafted to pair harmoniously with coffee every time. • Chilled Take Home 1L plant milks: Vitasoy says that with more than one in three households buying into 1L plant milk (Source: National Panel MAT to 13/10/19, 37.8% of households that purchased Soy/Grains beverages), it is surprising how little representation 1L plant milk has in the fridge within convenience. Vitasoy has a range of chilled 1L Almond and Soy 1L products which it says it is perfect for that top-up shop on the way home. • On the Go flavoured plant milks: Vitasoy say this is an emerging segment which is addressed by its Vitasoy Whole 330mL flavoured plant milk offer, with flavours like Double Espresso and Chocolate, blended with almond milk. Drinks giant Bickford’s has also recognised the potential of plantbased flavoured milks and also believes that convenience has so far missed out on realising the segment’s full potential. It says the better for you credentials associated with dairy alternatives are clearly starting to draw more consumers into the flavoured arena which has been traditionally dairy dominated. “Convenience is still very much dairy focussed in terms of layout and so dairy alternatives have perhaps been a little slow to trend in this environment in comparison to supermarket retail and restaurants and cafes,” said Bickford’s Senior Brand Manager, Beverley Reeves. “Stocking our Almond Coffee has the potential to attract new consumers to the impulse purchase of drinks on the go, and can act as a great meal deal element that is different to the traditional soft drink or dairy pairing.”
Bickford’s says the customer motivation for dairy alternative choices is multi-layered. For many it is a lifestyle choice which is about an aspiration, a perceived healthier option, or a vegan or vegetarian diet. However, many consumers are now adopting a flexitarian approach, where they move between dairy and dairy alternatives depending on the occasion, environment or wellness feeling or because they genuinely enjoy the variation. And, of course, lactose intolerance remains a driver. Vitasoy agrees that the consumer profile for non-dairy milk has really broadened over time to become more mainstream and it is appealing to consumers for a raft of different reasons. It says consumers who enjoy plant-based milk are typically adding it to their dairy consumption rather than replacing dairy, which means overall purchase and consumption is increasing.
Convenience is still very much dairy focussed in terms of layout and so dairy alternatives have perhaps been a little slow to trend in this environment...” - Beverley Reeves, Bickford's
The company says that, given plant milk is under-represented in the convenience channel, there are a couple of key ways to improve performance. Broaden the range of plant-milk: By offering a range across the three key occasions of On to Go, Hot Coffee and Chilled Take Home, retailers put themselves in the best position to satisfy consumer needs. Improve in-store visibility: As most people don’t expect to find a full plant milk offer in convenience, it is important to interrupt the shopper to drive awareness that plant milk is now available. Things like dual locating can be very effective, as can crosspromotion and inclusion in healthy meal combo offers. “Consumer choice and range is really important for the convenience sector as it moves to compete with grocery as a destination for everyday purchases,” said Vitasoy’s David Tyack. “This includes stocking a good variety of plant-based milks for a range of consumption occasions… the category’s growth and prevalence
December 2019/January 2020 | C&I | www.c-store.com.au 23
NON-DAIRY MILK
in Australia’s changing dietary choices means it’s important for convenience to stock, or miss an opportunity for growth.” While shelf space and fridge space will always be a huge consideration for convenience and impulse operators, offering a good range is important to present customers with the opportunity to find their favourites and perhaps to sample something different.
AT A GLANCE • In grocery, plant milk retail sales exceed $327 million annually and are growing at 7.7% (Aust Grocery iRi MAT 17/2/19). By contrast, convenience sales are just $1 million per annum. • Plant-based milk now accounts for approximately 7% of all milk consumed in Australia. • Convenience store operators who broaden the plant-milk offers they range will put themselves in the best position to satisfy consumer needs. • Things like dual locating, and crosspromoting as part of a healthy meal combo are a great ways to drive plant-based milk sales.
Besides Vitasoy and Bickford’s, there are a number of other big companies catering to this emerging market. The Freedom Foods Group offers plant-based milk brands including Australia’s Own Organic, Almond Breeze, and MilkLab, while Sanitarium has been seeing sales of its dairy free milks under the So Good brand soar. While many supermarkets now stock a significant range of plant-based milks including soy, almond, coconut, hazelnut, rice, oat, and macadamia milk, most convenience stores are not in the fortunate position of having the space to carry such an extensive range. IBISWorld says soy milk is the largest product segment in the Soy and Almond Milk Production industry, accounting for over 47% of industry revenue. However, it says soy milk has faced rising competition from other varieties, particularly almond milk and coconut milk. It says almond milk, which now accounts for approximately 44% of industry revenue, is lower in carbohydrates than soy milk and is therefore seen as a superior alternative to dairy milk than soy milk. Vitasoy says new product development is crucial to driving sales, and it points to the early success of its Vitasoy Whole 330mL range to illustrate the point. “Customers are increasingly looking for products that are better suited to on-the-go consumption, an area in which plant-based milks have traditionally lagged, but which Vitasoy Whole offers,” said Mr Tyack. “Equally, popular milk beverage flavours married to popular plant-based milks seems obvious but was a very effective innovation.”
24 December 2019/January 2020 | C&I | www.c-store.com.au
The company says that with plant-based milks rapidly entering the mainstream, it makes sense for them to be merchandised prominently and in the higher traffic areas. Bickford’s says that dairy alternatives are generally located in the dairy chiller which is an area that many non-dairy shoppers bypass as not relevant. It says clear segmentation and signposting is a must to lift awareness and to drive engagement and uptake. “With more than half of consumers engaging in dairy alternatives, a lack of range or visibility means that half your shoppers don’t have a reason to do something different in store,” said Ms Reeves from Bickford’s. “Shoppers in this area are generally early adopters and actively looking for new products to complement or enhance their regular brand and lifestyle choices, so it’s important for retailers to take some risks with their range to ensure that they maximise basket spend.” Things like dual locating, and cross-promotion such as the inclusion to healthy meal combos are a great opportunity to drive plant-based milk sales. However, communication that includes a suggestion of meeting a consumer occasion that satisfies or creates a need can be equally effective. “Promotional activity for these consumers is not always relative to absolute low price, however is more around the perception of value,” said Ms Reeves. “How does this product add something to my day, help me make a healthy choice, provide something I can’t get elsewhere which makes me keep coming back to this store?” There is no doubt then that convenience stores which don’t react to changing customer preference around traditional milk and non-dairy milk risk missing out. The emergence of ready to drink flavoured variants and increased consumer interest has ensured plant-based milks will become an ever more important sales contributor for convenience. Getting the range right and giving these products prominent positioning in high traffic store areas is likely to deliver healthy profits until the cows come home. C&I * Convenience & Impulse Retailing magazine would like to thank Vitasoy and Bickford’s for supplying information for this article.
WATER
WONDERFUL WATER H2O is still making a big splash in convenience
A
fter many years of strong growth, bottled water sales have levelled off slightly in convenience but the category remains one which is rich with opportunity for the channel.
According to the most recent state of the industry report from the Australasian Association of Convenience Stores (AACS), total water has declined for the second successive year after a 3.3% growth in 2016. However, the AACS also notes that water is still the number three cold beverage in terms of basket penetration and is represented in 14% of convenience beverage baskets. Market research company IBISWorld says the bottled water industry has faced several challenges over the past five years, some of which have negatively affected its performance. “Industry competition has increased and the rising prevalence of private-label products has driven prices down, putting downward pressure on revenue,” it said in a recent report. “Growing concerns regarding the environmental effects of bottled water have also negatively affected the industry.” However, IBISWorld says rising disposable incomes, growing health consciousness, and ongoing consumer preferences for 26 December 2019/January 2020 | C&I | www.c-store.com.au
Industry competition has increased and the rising prevalence of private-label products has driven prices down, putting downward pressure on revenue,” - IBISWorld Report
convenience are likely to continue to see bottled water sales remain strong long into the future. The health and wellness trend, of course, is the major driving force behind the impressive rise of bottled water. Drinking adequate amounts of water is crucial to staying healthy and, according to the Australian Beverages Council, about four in 10 of Australians still don’t drink enough water each day. While consumers have responded to the functional and flavour benefits attributed to the likes of energy drinks and sports drinks, the natural hydration qualities of water need no explanation. Australia’s tap water is basically safe to drink, but many consumers enjoy drinking bottled water because they like the taste and the consistent quality and, of course, the sheer convenience. A significant part of bottled water’s growth is due to consumers turning away from carbonates and juice due to concerns about sugar intake. Bottled water provides a refreshing and convenient no-sugar, no-calorie option. Bottled and packaged waters can come in still, sparkling and flavoured varieties. The Australian Beverages Council says ‘packaged water’ applies to a number of different water products,
WATER including spring water, purified water and mineral water. According to data from IBISWorld released earlier this year spring water represented 50% of the water market, mineral water 25%, purified water 12.5%, and bulk water 12.5%. The Australian Beverages Councils says sparkling water and still water are great for both refreshment and hydration. There is also a range of flavoured and infused waters, most of which do not contain any sugar. Many consumers prefer the taste of carbonated, infused or flavoured water, and these products are a great healthy and low or no kilojoule alternative to plain still or sparkling water for thirsty consumers. Water customers then come to convenience stores on a variety of drinking occasions. These may include single-serve on-thego hydration, meal accompaniment, a healthy treat via a lightly sparkling water, hydration with a hint of natural flavour, or a multi pack of bottles to share on the job site or in the office. Although bottled water as a whole is consumed by people from all demographic groups and professions, certain waters clearly appeal more to more distinct groups within that broad customer base. Their preference may be based on packaging, perceived functionality, or on the water’s source. The convenience store operator needs to think long and hard about getting the range right in order to satisfy all consumer need states.
“To boost volumes and drive profit within convenience stores and drive impulse purchase ensure visibility and push trial by leveraging on-counter displays and other branded point of sale materials such as wobbler for shelf, stickers for fridge,” said the spokesperson. “Make sure products are always available on both shelves and chillers.” Health-conscious consumers do sometimes prefer to buy water at ambient temperature so offering a non-chilled option in off-location displays as well as chilled water in the fridge offers an additional opportunity to pick up incremental sales. Adding prominent water displays next to the checkout line is a great reminder to hydrate and can boost sales. Petrol stations can lift sales by creating prominent displays next to the entry to allow customers to conveniently load them into their vehicles. Operators should also try to merchandise water at eye level, and block and merchandise the category together.
Two historical Italian classics, the success stories of these brands lie in their appealing values and their elegant balance of taste.” - S.Pellegrino spokesperson
The effective use of point of sale materials can help communicate brand personality and functionality, drive trial, and ultimately influence the decision to purchase. Water is seasonally sensitive
The companies holding the largest market share in bottled water in Australia include Coca-Cola Amatil which boasts brands such as Pump, Mount Franklin, Mount Franklin Lightly Sparkling, Deep Spring, Neverfail, Peats Ridge and Glaceau Smart Water, and Asahi Lifestyle Beverages, which sells bottled water brands, Cool Ridge, Voss, G-Active and the more groceryfocussed Frantelle. There are, of course, a host of other manufacturers which are seeking to offer something different in the marketplace. The sparkling natural mineral water S.Pellegrino and its still mineral water counterpart Acqua Panna are very much premium offerings. S.Pellegrino says the two brands are known as the fine dining waters on tables worldwide, both in restaurants and in the home. “Two historical Italian classics, the success stories of these brands lie in their appealing values and their elegant balance of taste,” said a company spokesperson. “They are widely appreciated by the leading figures of the culinary scene and convenience store operator’s benefit from S.Pellegrino and Acqua Panna’s strong brand equity and awareness.” Both S.Pellegrino and Acqua Panna come in 250ml, 500mL, 750mL and 1L glass, as well as 500ml PET for the fill-in shopper mission and on the go consumption, and 1L PET to satisfy the stock-up shopper mission. S.Pellegrino water will also soon be available in a 330mL slim can to provide the consumer with an additional on-the-go offering. S.Pellegrino says operators can make the most of the immediate consumption shopper mission by pairing its water brands with casual food or snacking items, and by pushing trial with sampling activities. December 2019/January 2020 | C&I | www.c-store.com.au 27
WATER
AT A GLANCE • Water is still the number three cold beverage in terms of basket penetration and is represented in 14% of convenience beverage baskets. • Health-conscious consumers do sometimes prefer to buy water at ambient temperature so offering a non-chilled option in off-location displays as well chilled water in the fridge offers an additional opportunity to pick up sales. • Stores can drive impulse purchase, boost volumes and drive profit by ensuring visibility and pushing trial by leveraging oncounter displays and other branded point of sale materials such as shelf wobblers and fridge stickers. • Water has strong copurchase with hot coffee, snacks and fuel, so effective bundling deals offer opportunities to lift average value transaction.
and sells most strongly in the warmer months, so summer is a great time for convenience and impulse operators to increase promotional activity and drive sales. As well as working well in a bundle deal with food or a snack, water has strong co-purchase potential with hot coffee and many retailers are also benefitting from co-locating water alongside hot beverages. This can lift average value transaction, basket penetration of key categories, and overall sales. Another innovative company, ãlkalife, says its naturally alkaline mineral water – which is sold in 600ml and 1.5L sizes – is becoming increasingly popular as consumers start to appreciate the health benefits of alkaline water. “While most bottled waters in the market are highly acidic, alkaline water has many purported health benefits and we have seen these first hand from our customers for over 17 years, said ãlkalife General Manager, Thomas Cho. “Convenience stores that don’t stock a healthier bottled water are missing the opportunity to capitalise on this fast growing trend.” Mr Cho says that offering a natural alkaline water with a stand out pack such as ãlkalife satisfies the needs of consumers seeking healthier options, and helps stores keep revenue that they may otherwise have lost to a competitor. In terms of ranging, ãlkalife believes stores needs to offer enough variety to cater to different customer needs but not to over-do it. “For instance, ranging a brand for the price sensitive, brands that cater to the health conscious, and brands that cater to the premium market,” said Mr Cho. “Each of these consumer types have different needs so it doesn’t make sense to carry five different
28 December 2019/January 2020 | C&I | www.c-store.com.au
brands of spring water… someone who is health conscious is not satisfied with a regular spring water and vice versa.” ãlkalife believes that, as the water market matures, consumers will become increasingly discerning. “The rate of increase of waters with a health or functional component is where we’ll see the greatest growth,” said Mr Cho. “While the alkaline water market in Asia Pacific is showing a modest growth rate of 3%, in North America it is exploding at 37.5% and western Europe is seeing 50% growth.” Water typically comes in plastic bottles, but it is also found in other containers, such as glass bottles, boxes (with a bladder), pouches, cartons and cans. Water in convenience is fundamentally an impulse purchase whereas supermarkets sell to shoppers buying larger quantities to share with the family or simply to consume later. Single-serve packs are therefore more popular than multipacks in convenience. The different bottle sizes offer consumers variation in their water needs, with the best-selling pack formats in the channel being one litre and below. Convenience stores can also do quite well in the sales of larger bottles such as 1.25l and 1.5l, which some customers choose to pick up on their way home, or to take to a social event. Bottled water has been around for a few years now but it is clear innovation is ongoing, and consumers concerned about sugar intake are still turning away from carbonates and juice as they seek out healthier beverages while on the go. Convenience store operators who offer a full range of well-displayed water options supported by strong point of sale will see their efforts well rewarded. C&I * Convenience & Impulse Retailing magazine would like to thank ãlkalife and S. Pellegrino for supplying information for this article.
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SUGAR-FREE SNACKS
BACKING SNACKS
A healthy treat focus can bring rich rewards While traditional snacking products experienced 2% growth, ‘better for you’ brands grew in sales by 5%.” - Alistair Leathwood, IRI
A
s the health and wellness trend continues to bring rapid change to the convenience landscape, the snacking category has found itself front and centre of the ongoing transformation.
Healthy snack foods with a high nutritional value, such as muesli bars, protein bars, and dried fruit and nuts, are quickly growing in importance as some of the more traditional offerings lose favour with consumers. Alistair Leathwood, the Chief Commercial Officer, Asia Pacific, of market research company, IRI, said Australian shoppers were still indulging, but they were doing so in a more considered way. “In the snack foods category, ‘better for you’ brands are growing at more than twice the rate of traditional crisps,” he said earlier this year. “While traditional snacking products experienced 2% growth, ‘better for you’ brands grew in sales by 5%.” According to the most recent State of the Industry Report from the Australasian Association of Convenience Stores (AACS), chips grew 0.5% after a slight decline in 2017, while nutritional bars continued
30 December 2019/January 2020 | C&I | www.c-store.com.au
a strong three-year growth trend with category improvement of 17%, and nuts also maintained a strong growth of 8.5%. While traditional snack foods remain an intrinsically important part of all convenience stores’ offering, operators need to be alert to changes in consumer preferences and adapt range accordingly. In order to maximise the potential of the category, it is therefore vital to properly understand the customer. According to the AACS, snack shopper missions revolve strongly around a beverage purchase, with 67% of customers who buy a snack also buying a beverage. This represents a clear opportunity for stores to engage customers by using promotional tools such as bundling a healthy snack with a healthy drink. Some manufacturers suggest an on-trend beverage such as kombucha as the perfect accompaniment to a healthy snack. Promotional offers are important drivers for both chips and healthy snack shoppers but the AACS says flavour is significantly more important for healthy snack shoppers, highlighting the importance of stores having a broad range on offer.
SUGAR-FREE SNACKS The State of the Industry Reports also reveals that snack food shoppers generally visit a store twice a week, and the average spend with snack foods in the basket is $9.90 per visit. Besides the rise of healthy snacks, it says the other really notable change is the swing of the gender split with males now constituting 56% of snacking customers, up five points on last year. Market research firm Convenience Measures Australia reported that last year healthy snacks increased penetration of total snacking category by 27%. It said that 19% of healthy snack shoppers buy more items than planned which is more than double the channel average. According to its data, the highest basket penetration of healthy snacks is between 6am and 11am. In terms of display, leading market insight company, Nielsen, says the use of off-shelf space for driving incremental purchases is particularly effective with healthy snacks.
CONSUMER GROUPS: • Tradies and young men who are looking for snacks that help support their active life and provide functional benefits beyond just tasting great. • Female office workers who live an active and social life, so are often looking for convenience without compromising on nutrition. • High school and uni students who want a breakfast replacement or healthy snack that isn’t loaded with calories but still tastes delicious. What is also happening is that sports nutrition products are developing much wider appeal, and becoming far more mainstream.
Health consciousness has risen over the past five years, and that trend is expected to continue in Australia.” - Kerin O'Brien, Purabon
The Brand & Partnerships Manager – Musashi Sports Nutrition, Ross Webb, says this broader group of healthy nutrition
A recent Nielsen Scantrack analysis in the UK concluded that using this critical off-shelf space in store for categories that meet an important and growing shopping need will help to encourage bigger basket sizes. Nielsen’s Retailer Services Client Business Partner, Amie Parrott, said operators had an opportunity to lift basket size even more. “A Nielsen HomeScan analysis has identified that spend per lifestage differs on a weekday to a weekend, so understanding which of your shoppers shop at different times of the week, and flexing your promotions and off-shelf space accordingly, will yield the best results,” she said. “But why not go one step further, and use the off-shelf space flexibly according to the specific day of the week?” Purabon, which is riding the health and wellness wave with a range of popular snack products, agrees that visibility in such an on-trend category is critical. Purabon’s leading healthy snack products are its protein balls, which include salted caramel, peanut butter, and choc brownie flavours. “We provide retail floor stands for stockists that really help drive that impulse buy, like the ones you can see in Fitness First gyms around Australia,” said Purabon CEO, Kerin O’Brien. “For our food service range that you can find in cafes all around Australia, we provide labelled café jars which act as both point-of-sale marketing, as well as keeping our balls fresh.” The company says that when customers see the Purabon jars listing the natural ingredients and dietary attributes on the counter, they have an irresistible impulse and this makes for an easy add-on sale for any outlet. “Australians are more and more seeking out natural and/or organic food options so that means when consumers are looking for a snack, they are looking for products that identify as being healthy… that is additive free, with natural ingredients and low/ no added sugar,” said O’Brien. “Health consciousness has risen over the past five years, and that trend is expected to continue in Australia.” Purabon says there are three main consumer groups in the convenience segment looking for healthy snacks. December 2019/January 2020 | C&I | www.c-store.com.au 31
SUGAR-FREE SNACKS
AT A GLANCE • Nutritional bars have continued a strong threeyear growth trend with category improvement of 17%, and nuts also maintained a strong growth of 8.5% • Higher nutrition levels in protein bars has helped them to gain greater prominence among healthconscious consumers • Snack shopper missions revolve strongly around a beverage purchase, with 67% of customers who buy a snack also buying a beverage • It pays to give the healthy snacking better visibility at the point of purchase as, given the option, most people would prefer to take the option perceived as healthier
advocates are drawn less to the traditional mix of whey-based protein powder and amino acids and more to on-the-go or snack-based options such as sports protein bars. “Over the last decade, sports nutrition has ceased to be exclusive to a small core of consumers interested in muscle building,” he said. “Instead, a larger grouping of casual users and healthy living enthusiasts interested in broader active nutrition goals have emerged as a critical class of consumers that continues to drive trends in this space.” He said this expansion of sports nutrition around new consumer groups had proved to be enormously successful in recent years. Musashi says the nutritional benefits of protein bars means they are gaining prominence among the health-conscious consumers. It says a nutritious protein bar can provide the ideal protein balance for a busy and healthy lifestyle. “Protein bars have been positioned around practically every active consumer group, from men and women to children,” said Mr Webb. “Legacy sports nutrition brands such as Musashi are getting in on the action by releasing a range of bars as more snack-like and fun with the introduction of their ‘Deluxe’ range, while maintaining all the desired macronutrient profiles of a functional protein bar.” The company says these fitness trends are expected to augment the demand for protein bars, as they play a major role in providing essential nutrients and proteins, increase energy levels, and enhance muscle mass.
We will be expanding on the organic bar range on the back of its current success.” - Glenn Borchard, Annex Foods
“It generally works to target displays for high turnover lines to create an in-store presence,” he said. “And it pays to give the healthy snacking better visibility at the point of purchase as, given the choice, most people would prefer to buy a perceived healthier option." Change then is afoot throughout the snacking world and most analysts suggest that this trend towards more healthy snacks in one that is going to continue for some time yet. In its recent report into Health Snack Food Production in Australia, market research company IbisWorld said the category was being lifted by increased participation in gyms and fitness centres, as well as a generally more health conscious public. “The health snack food production industry is forecast to continue growing its revenue over the next five years,” the report said. “A projected rise in disposable incomes and the ongoing emphasis on healthier lifestyle choices are likely to continue supporting the uptake of healthy snacks as alternatives to traditional snacks.” While convenience stores face the usual challenges in finding enough space to allocate to the many competing categories, particularly the emerging ones, it is clear that healthy snacks are here to stay and need careful management if they are to deliver on all of their clear profit potential.
Another company, Annex Foods, says its range of organic muesli bars is also performing well as consumers become more aware of the clean food chain and seek to understand where their nutrition is coming from.
Offering excellent margins, healthy snacks are certainly worth a bit of extra effort but the fundamentals of success remain the same. These include: understanding the customers’ changing needs; choosing the right range; displaying prominently in off shelf space; and looking at engaging promotional mechanisms such as bundling with a healthy beverage to drive sales and lift basket size.
“We will be expanding on the organic bar range on the back of its current success,” said the company’s National Account Sales Manager, Glenn Borchard. “It is driving higher margins as people are willing to pay a premium for a healthy alternative.”
The health and wellness trend has been in full swing for a long time now but it continues to re-shape categories such as healthy snacks, and to throw up exciting new profit driving opportunities for convenience and impulse store operators.C&I
Mr Borchard believes that a strong focus on marketing is absolutely key for the continued development of the healthy snacks category.
* Convenience & Impulse Retailing magazine would like to thank Purabon, Musashi, and Annex Foods, and the Australasian Association of Convenience Stores for supplying information for this article.
32 December 2019/January 2020 | C&I | www.c-store.com.au
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PRODUCT NEWS
Robern Menz launches Violet Crumble DARK Following its acquisition of the iconic Aussie Violet Crumble chocolate bar last year, family-owned confectioner Robern Menz has launched a new take on the bar – Violet Crumble DARK. Capitalising on the growing popularity of dark chocolate variations, the new bar is the first to pair a cocoa-rich choc coating with honeycomb. The South Australian-based business is known for creating and reviving beloved chocolate products, having recently also acquired the recipe for the fondly remembered Polly Waffle. The new Violet Crumble format follows Robern Menz’s recent reintroduction to the Australian market of the Violet Crumble bag, featuring bite size versions of the treat.
This news was received welcomed by fans, who have been calling for the return of the shareable Violet Crumble format since it was withdrawn by previous owners a decade ago. “The response we’ve had from consumers since bringing Violet Crumble back into Australian hands has been phenomenal. We know there’s a huge appetite for this iconic Aussie honeycomb treat, and that’s why we want to deliver it in a variety of formats to suit different tastes,” said Phil Sims, CEO of Robern Menz. “We’re having a lot of fun playing with different iterations of this classic product and the dark choc pairing is something we think a lot of Australians will enjoy.” The new product is available now at Caltex locations nationally.
FEB/MAR 2019
Lemonade on a new LeVel
C&I Choice Creamery and Co For this edition of C&I Choice, we couldn’t get past the new edition from Dairy Farmers, Creamery and Co. Launched in November, the new range offers three creamy and delectable flavours including Raspberry Pavlova, Murray River Salted Chocolate and Great Southern Caramel. Each flavour is an experience in itself and not unlike a milkshake, but not just any milkshake, a fancy and specially curated milkshake that has been made just for you. Each beverage is a combination of thick and creamy flavours, made with full cream Australian milk with added cream. Inspired by Australia’s generous terrain and stunning landscapes, the luxurious collection takes customers on an indulgent taste journey across the country. The generous flavours excite the tastebuds and are a simple way to indulge, with delicious and quality ingredients. 34 December 2019/January 2020 | C&I | www.c-store.com.au
*FUN FACT*
You may not have known it, but around half of all Australians are deficient in Magnesium, and more than 25% of Australian males are Vitamin C deficient, and this leads to a host of health issues that no one wants to have to deal with. That's where the newest offering from Level Beverages come in – enter LeVel Lemonade, a new take on a classically loved original. LeVel Lemonade is a special kind of lemonade as it provides high levels of both Magnesium and Vitamin C in every bottle. The ‘better for you’ carbonated beverage is also low sugar and 97.5% fat free. Not only does LeVel Lemonade have a light texture and a refreshing fizz that tastes great, it also leaves you comforted in the knowledge that your beverage of choice is beneficial to your health and overall wellbeing. The lemonade is available in three delicious flavours: • Lemonade Original • Lemonade & Orange • Lemonade & Pineapple Offering the following key benefit: • Full RDI of Magnesium • Full RDI of Vitamin C • 97.5% sugar-free • Only 30 calories per bottle • Above all, a great refreshing taste
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The best part of LeVel Lemonade (aside from the obvious health benefits) is that it’s Australian made as well as gluten and lactose free!
PRODUCT NEWS
Un-tangle your life JUN/JUL 2019 with True Wireless Sound Airbudz A biccie in a block Arnott’s Chocolate Blocks are a combination of five of our favourite Arnott’s classic biscuits and chocolate. Imagine dipping a row of chocolate into tea and getting your chocolate and biscuit fix all at once... well wonder no more.
FLAVOUR NOTES
• Iced VoVo Milk Chocolate Block Irresistible milk chocolate, playfully blended with crunchy biscuit bits, coconut & raspberry flavoured jellies and pink fondant pieces. • Scotch Finger Milk Chocolate Block Crunchy, buttery biscuits mixed into delicious milk chocolate, a classically indulgent bite. • Wagon Wheel Milk Chocolate Block Creamy milk chocolate packed
with crunchy biscuit bits, raspberry flavoured lollies and fluffy marshmallows, a totally unique chocolate experience. • Ginger Nut Dark Chocolate Block Decadent dark chocolate mixed in with spiced ginger biscuit pieces for a sophisticated chocolate experience. • Jatz Milk Chocolate Block A sweet and savoury blend, combining rich milk chocolate with slightly salty cracker pieces.
Arnott’s five new chocolate blocks & four new bars are made in Australia using sustainably sourced cocoa. (NB. Arnott’s Chocolate Ginger Nut is not available in bar form).
It’s time to free yourself from wires and getting tangled up. With Fuse True Wireless Sound Airbudz comes ease, style and simplicity. Produced in a similar style and format to the most popular wireless earbuds on the market, the Airbudz are everything you need in a headphone. Fuse Airbudz are compatible with both Apple and Android giving you the power to enjoy your music and podcasts on-the-go, in true style and with clear sound. Added convenience comes in the form of a super compact charging case to keep your Airbudz charged and protected on the go, with a combined listening time between the Airbudz and case of 8 hours plus these little guys will keep with you all day long. Ignite your ears and free yourself.
AUG/SEPT 2019
OCT/NOV 2019 Karats of KitKat Gold Slurpable snacks: Yoplait’s new yoghurt smoothie Popular yoghurt brand Yoplait is raising the stakes when it comes to snacking with its new range of bottled yoghurt smoothies. With 90% of teenagers failing to consume their recommended serves of dairy or alternatives, these bottled smoothies in delicious flavours are the perfect way to include essential nutrients like protein and calcium that are found in milk. They can get a taste of the tropics with flavours including Passionfruit & Mango, Strawberry With a Hint of Banana, Mango & Peach or a burst of brilliance with Mixed Berry. Yoplait is excited to enter the drinkable yoghurt space, tapping into this global trend of healthy and convenient snacking with this new product. Darryn Wallace, Marketing & Innovation Director, Lion Dairy & Drinks said Yoplait was thrilled to be making healthy, drinkable snacks more accessible. “Finding a snack that’s nutritious, filling, and makes you feel good can be really challenging – and finding one that your teens like too is almost impossible. We’ve created this range to meet that need, offering a tasty, fuss-free option that shoppers can easily pick up at their local grocery store”, said Wallace. For more information, visit yoplait.com.au.
The C&I choice for December/January is the smooth and luscious, KitKat Gold. This limited edition KitKat contains the unique wafer fingers known to the Nestlé brand, covered in a golden, caramelised chocolate. While caramelised white chocolate is not new, it’s recently shot up in popularity and has resulted in many happy customers. Caramelised chocolate occurs when white chocolate is cooked/baked for a period of time, until it caramelises. While the initial packaging said the product was limited edition, Nestlé said if it received enough positive feedback that it could potentially become a permanent fixture. The flavour reportedly came about from the company’s development work in Australia. “We have a lot of fun exploring different flavour profiles, and when we tasted this one, we knew we were on to a winner,” Nestlé said. “We’ve ensured we’ve got the taste of the wafer in the finger right with the right chocolate flavour to go with it. “This one is distinct because it’s made by caramelising the butter to give it its distinct flavour.” KitKat Gold is available in a 170gram block and a 45gram block.
DEC/JAN 2018-19
December 2019/January 2020 | C&I | www.c-store.com.au 35
PRODUCT NEWS
KitKat goes for GOLD GOLD GOLD! C&I Choice of the Year! After much deliberation, we’re pleased to announce Nestlé’s KitKat Gold as the 2019 C&I Choice of the Year! Last year, KitKat Gold delighted consumers with the rich golden caramelised flavours combined with the snap of a KitKat wafer. Only available as a Limited Edition in the Impulse channel, stocks of the Gold variant sold through quickly with shoppers clamouring for more. In 2019, the Gold platform returned – with a twist! KitKat launched new KitKat Gold Whirl! Nestlé has decided to keep KitKat Gold in its product portfolio for Australia following phenomenal demand from consumers. The company launched the product of the unique flavour by hosting a mouth-watering edible installation, featuring a wall covered in KitKat Gold alongside a dedicated 'break zone' for chocolate lovers. Popping up in Sydney on 30 August and Melbourne on 3 September, 8,000 golden KitKat bars were available in each location. Visitors were able to pick their very own KitKat Gold straight from the wall, and potentially find the ultimate Gold Ticket, with two amazing breaks worth up to $5,000 up for grabs. Since its launch last August, the chocolate maker has seen overwhelming demand for the limited edition white chocolate covered wafer fingers. Crisp wafer fingers covered in swirls of golden white & milk chocolate, all on a golden choc base. Consumers have been delighted to see their favourite caramelised break is back! With a Twist. KitKat Gold Whirl is available in a 65g Sharebar, 45g Medium Bar along with a 170g block. The Original KitKat Gold 170g Block and 45g four finger medium bar are now also available in the Impulse channel. Delighting consumers again with their favourite Gold Choc, KitKat continues to give it a (Golden) Whirl!
WINNER
36 December 2019/January 2020 | C&I | www.c-store.com.au
PRODUCT NEWS
BIDI STICK: a premium luxury disposable vaping device The Bidi Stick is a cutting-edge disposable, all-in-one, pod device. It is small, extremely easy to use straight out of the box and can be utilised discreetly. One of the benefits of this product is that there is no need for pressing any buttons, priming, charging or refilling. The Bidi Stick is ready to go with immediate flavour that lasts. It comes fully charged, out of the box. Created with only pure and natural USA-made ingredients and with carefully selected flavour profiles, the Bidi Stick is a premium luxury choice. This is an ultra-convenient and pocket-friendly disposable product. The Bidi Stick pod was created for those who are seeking a minimalistic solution to vaping. It is a very small disposable pod device with a low wattage battery. The Bidi Stick is made to be extremely easy to use and convenient for those seeking a solution for a healthier lifestyle. For this reason, Bidi Stick does not have any buttons, does not require charging or filling. It is an on-draw activated device that has a pre-charged battery and is filled with 1.2 ml of SaltNic’s nicotine blended e-liquid formula. No maintenance is required and when the Bidi Stick is depleted of its liquid, it can simply be thrown away. Bidi Stick is the ultimate solution to a carefree vaping experience for those who are transitioning from smoking cigarettes. The Bidi Stick can be held like a cigarette and the on-draw mouth feel when using the Bidi Stick replicates the action of smoking. In keeping with the regular routine of what feels like smoking, the Bidi Stick is of tremendous assistance to anyone making a transition. For more information visit bidivapor.co.nz
Low GI Soft Drinks Are Here People who are watching their weight or managing health issues such as diabetes have long been limited in the beverages they can safely consume. Artificially sweetened soft drinks might have zero calories but their chemical additives can have other undesirable effects, which further reduces their options. Recognising the need for a healthier alternative for consumers, Greek superbrand LOUX has developed LOUX Plus N Light – the first naturally sweetened soda certified as Low GI, with added Vitamin C and less than half the calories. LOUX has been making beverages and natural juices in the city of Patras since 1950, their success making them one of the strongest companies in modern Greece. Now they’ve created a new range for healthy lifestyles, LOUX Plus N Light. Maintaining all the sweet and sour appeal of the original carbonated juices, LOUX Plus N Light sodas have 60% less calories! Naturally sweetened LOUX Plus N Light is available in three popular flavours of Cola, Orange and Lemon. To range LOUX Plus N Light or for more information, contact Olympian Products & Distribution on 1800 413 711 or info@olympianproducts.com
38 December 2019/January 2020 | C&I | www.c-store.com.au
PRODUCT NEWS
When water isn’t ‘just’ water, try THEONI With so many bottled waters on the market it is difficult for consumers to make informed choices about which is the best, and why. Taste and texture (still or sparkling, madame?) would seem to be the only two necessary considerations, but your H2O of choice could also be harbouring loads of invisible nasties, or bountiful unseen benefits. Recently the spotlight has fallen on the mineral content of our water and the role naturally occuring magnesium and calcium carbonate have on our wellbeing. The World Health Organisation explains that the ‘hardness’ of water is determined by the presence of dissolved polyvalent metallic ions, which are absorbed from sedimentary rocks, through seepage and as run off from soils. Concentrations of up to 100mg per litre are common in natural sources, over 200mg is rare. Why does that matter? According to WHO, a number of studies focused on large populations have found there may be a link between the hardness of water and cardiovascular disease. It’s early days and conclusive studies need to be done but, even anecdotally, it's information worth considering. ‘Soft’ water, on the other hand, can be very high in sodium. You may have experienced that, when
you’re super thirsty but endless tap water just doesn’t seem to be quenching your thirst? That’s why. Okay, so which water should you be drinking? Well luckily, sometimes nature gets it just right. Flowing from an ancient spring high on Mount Agrafa in Greece is a natural artesian water that has taken more than 2000 years of natural filtering to reach balanced hardness (113mg/L), low sodium (one of the lowest ever recorded from a natural source), an ideal high alkaline level of pH8, and a total absence of heavy metals. This incredibly rare balance of composition and flavour has seen THEONI awarded more than 19 International trophies for taste and quality since 2015, a triumphant confirmation for a product that has only been bottled for the last six years. THEONI is available in Australia through Olympian Products and Distribution, a company committed to bringing the finest Greek products to the world. Now you know that water isn’t ‘just’ water, make sure THEONI is your first choice. For more information call Olympian Products & Distribution on 1800 413 711 or email info@ olympianproducts.com
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PRODUCT NEWS
Energizer® introduces a powerful new look! Iconic character Mr. Energizer™ takes centre stage in new standout packaging, instore displays and advertising designed to help consumers navigate product options. Energizer®, makers of Energizer® Ultimate Lithium™, the world’s longest-lasting AA battery, have announced a re-energized look for the brand, including new packaging, in-store displays, logo and advertising for its battery product lines, as well as an even more prominent role for Mr. Energizer™, the brand’s beloved charismatic character. The new visual treatments which launched in Australia this year will provide a contemporary look with a lighter, brighter presentation and a helpful new approach, with distinct colours deployed to help consumers more easily and intuitively find the best product to suit their needs. Whether it’s the world’s longest-lasting Energizer® Ultimate Lithium™ AA battery, a lithium coin battery or an Energizer Recharge® rechargeable battery, the new packaging and colour schemes will help consumers quickly identify the right choice and be on their way “We spent three years developing our new look, talking with consumers and researching their preferences to deliver an experience that’s both powerful and fun,” said Lori Shambro, Vice President, Global Marketing at Energizer Holdings, Inc. “They told us they want bright, clear and helpful packaging that will stand out in a cluttered aisle. And we know they love Mr. Energizer™, so we’ve made sure consumers will get more of him and his larger-than-life personality everywhere, from in-store to our advertising.” Mr. Energizer™ is the embodiment of physical energy, a living Energizer® battery who’s quick with a wink and a smile and always up for a new challenge or a friendly competition. His lasting endurance and fun-loving personality reflect the spirit of the Energizer® brand.
Reef Moisturising Sun Tan Oil Sprays The moisturising oil formulation glides on, is fast drying and absorbs quickly to leave skin feeling moisturised. Available in 4 different levels of protection: NO SPF, SPF6, SPF15+ & SPF30+. Infused with Reef's signature coconut fragrance.
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Your favourite sun tan oil in a convenient spray bottle. It means there’s less chance of spilling or over-pouring, which equals less waste so it will last longer! Always read the label. Follow the directions for use. When using sunscreen always wear a hat, protective clothing and sunglasses. Avoid prolonged high-risk sun exposure. Reapply sunscreen frequently or use in accordance with directions.
40 December 2019/January 2020 | C&I | www.c-store.com.au
PRODUCT NEWS
Waterfords Goes Premium
Launched almost 40 years ago, Waterfords has become synonymous with quality and sophistication in the Sparkling Mineral Water category. It was a trailblazer for its time, having launched the first 'Diet' or low-joule flavoured sparkling mineral water range. This became an instant hit and paved the way for future development in the 'betterfor-you' beverage space, including the recent launch of Waterfords Lite & Fruity Mineral Waters. In 2019, Waterfords is proud to launch a range of Premium 'Bitters' Mixers made from sparkling mineral water. Fueled by the growth in specialty/premium sparkling drinks, this new range is an exciting addition to the Waterfords family and one that will have instant appeal with consumers due the fact that Bitters drinks are very much on-trend right now! Furthermore, it allows the Waterfords brand to expand its repertoire into new beverage terrain, whilst remaining true to its core positioning as a Sparkling Mineral Water brand. Available in Lemon Lime & Bitters and Blood Orange & Bitters, both variants exhibit a zesty citrus flavour, finished off with a spicy bitters note. Lemon Lime & Bitters continues to be a popular and much-loved pub/ bar drink and Blood Orange & Bitters is a unique, but equally refreshing twist on the original. The Waterfords Premium Bitters Mixer range comes in a 330mL glass bottle and is available now! To stock the range or to find out more information, call Tru Blu Beverages on (02) 9912 6700.
Colourful Vacformed Trays by Bindweld Bickford’s releases RTD coffee range Bindweld can now create your Vacformed trays in any colour. That’s right, even matching a PMS brand colour if that’s what’s required. Using our 100% recyclable manufactured polypropylene, we can form various sized trays, shapes or other point of sale in any colour. There is no need to print over the units or worry about the additional cost of printing the material. The process is simple. We custom extrude and manufacture the polypropylene to a stock colour or PMS colour you require, then form it directly onto our machine, cut it and you are done. We can then add a decal if required and pack into shipper boxes ready for distribution. Best of all, polypropylene is 100% recyclable. For further information or to receive a sample please visit our website to find your nearest sales office. www.bindweld.com.
Bickford’s Australia has launched a new ready to drink (RTD) iced coffee range. “As we enter the centenary year of our Iced Coffee syrup, a ready to drink coffee option was an obvious flavour to start with on our fantastic new production line,” said Bickford’s group marketing manager, Chris Illman. The family owned business already has a strong coffee history through the award-winning Iced Coffee syrup, which was first produced in November 1919. Created in a post war Adelaide when coffee was in short supply, the addition of chicory to the recipe provided the bitterness that consumers were looking for and the icon was born, quickly winning awards both at home and overseas in the early 1920s. The range delivers two dairy options in Classic Coffee and Extra Shot made with locally sourced milk alongside an Iced Coffee almond milk made using Australian grown almonds. “The response from consumers has been fantastic,” said Illman. “In particular, the Almond version has been given a resounding thumbs up. When we spoke to consumers, the feedback was that many almond products are thin and watery, so we worked hard to achieve the right mouthfeel as well as flavour and it seems we did a pretty good job!” He added, “We wanted to recognise that Iced Coffee drinkers are a diverse demographic hence we created both dairy and dairy free choices.” The new range rolls out in South Australia with launch partners Foodland, Drakes and On The Run before extending out nationally through its distributor network. December 2019/January 2020 | C&I | www.c-store.com.au 41
PRODUCT NEWS
Glad launches new ‘green’ range
Glad has launched an eco-friendlier bin liner solution, as part of its Glad to Be Green range which aims to help consumers make more sustainable choices in the home. The new Glad Plant Based Bags are made from 100% petroleumbased plastics, 20% of the bag is made using a renewable source – sugarcane – which reduces the carbon footprint when compared to a standard bin liner. The launch of the Glad Plant Based Bags marks the first in Glad’s new Glad to be Green range, developed to provide Australians with more sustainable waste options. Joy Delis, Marketing Director of Clorox ANZ said of the launch, “The Glad to be Green range and the launch of our Plant Based Bags marks the start of our journey to transform our business and provide consumers with more sustainable product solutions. “We are developing products that reflect our sustainability vision. The future will see our Glad to be Green range grow to include more products made using plant-based materials, more recycled plastics, and products that are reusable, compostable, and recyclable.” The new Glad to be Green Plant Based Bags are available at Woolworths and independent retailers nationwide. The Plant Based Bags are available in three sizes, including: • 35 Small 18L bags (RRP $4.00) • 30 Medium 27L bags (RRP $4.00) • 25 Large 35L bags (RRP $4.00)
Spring into summer and supercharge your celebrations With the festive season and a typical Australian summer upon us, Hemp Oz HEMP Infused water is the perfect addition to any fridge. Deliciously refreshing, this sparkling spring water is sourced exclusively from the naturally flowing Hepburn Springs area in Victoria. With the added flavours of Ginger and Lemon, it is ideal for those seeking a refreshing, non-alcoholic beverage this Christmas season. For those wanting to be a little bit naughty and a lot more nice, Hemp Infused water is great mixed with your favourite spirit. According to Hemp Oz, the Hemp Oz sparkling water is perfect for those seeking health benefits from their drinks. With the added infusion of hemp, the latest superfood, its sparkling spring water provides consumers with an amazing nutritional profile that includes Omega 3 & 6, iron, zinc, magnesium, calcium, Vitamin B and Vitamin E. Best of all, it contains no natural or artificial sweeteners, making it Australia’s only zero calorie Hemp beverage. The drink will compliment with your favourite salad or simply serve it in a tall glass with lots of ice, a twist of lemon and a spring of mint to liven up the taste buds. Hemp Oz Hemp infused sparkling spring water is a must have on this year’s Christmas and Summer celebration menu. It’s the perfect allrounder for the creative cocktailer, the designated driver and the festivities fanatic! For more information contact kerrief@ozmedicann.com
42 December 2019/January 2020 | C&I | www.c-store.com.au
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OPINION
BUSINESS LEADERSHIP TOP 7 POINTS OF FOCUS DARREN PARK CEO United Convenience Buyers
Nobody goes to work to do the wrong thing and it’s a fact that sometimes things go wrong.”
W
e live in rapidly changing times. In a single generation, businesses leaders and team members have had to adapt to entirely new marketing channels, considering how to invest in and adopt new technologies, and deal with fast moving industry economics such as global sourcing, exploding data and private label growth. As a consequence of these rapid changes, I know for certain that no single CEO or any team member, can be an expert in everything. As a CEO, I do find that people ask me lots of questions about the business I lead and what I look to manage on a day to day basis. This is a position I take great pride in. From an Industry perspective if I can help with connecting people’s experiences together in a meaningful manner, it might build and strengthen our Industry talent. We all benefit from that. So what are the questions that appear more than others? I really like the “Top” question format, it’s not an exhaustive list and I think it’s easy to read and discuss. I’d be interested in reading about your Top 7 too.
RECRUITING THE RIGHT TALENT
Finding the right people and developing the right skills and competencies, is the key to a sustainable future. The Convenience & FMCG industries are great training grounds, and for good reasons we focus a lot these days on financial performances. At the end of the day, we are and will always be a people business. Building skills in empathy, concern, interest and being able to debate big issues without hurting relationships are very important.
UNCERTAINTY ABOUT THE FUTURE
Being able to predict with a good degree of accuracy, future customer trends and market trends is vital. The best way I’ve found to deal with this uncertainty, is to remove as much doubt as I possibly can. I’m certainly not Nostradamus, but I can work with Trade Partners and Industry bodies such as NACS to create a future that suits my business. Most importantly, approaching your future with optimism is crucial. Optimism keeps us going when things are challenging. It helps us to maintain a healthy outlook on the objective, being dark and gloomy can make creating your future harder to achieve.
FINANCIAL MANAGEMENT
Many of us are ideas people, which that means we are good at the big picture thinking, but less good with things like profit margins, contract terms, DIFOT and accurate pricing. In sporting language, most great teams win games 44 December 2019/January 2020 | C&I | www.c-store.com.au
through starting with a great defence. Strong financial management is my team’s best defence, it allows them to think big picture knowing that they do so off a sound decision making framework.
TECHNOLOGY
Technologies are changing practically overnight and it’s vital for companies to innovate in this space or be left behind. Technologies that reduce or removes re-work, speeds up cycle times and improves accuracy is my kind of technology. Interestingly, we have many generations in our workplaces now, some are comfortable at adopting new technologies, others are challenged in this area. I see in my workplace, early career team members coaching senior leaders with technology. It’s a cultural behaviour that I’d like to see adopted more broadly.
MASSIVE EXPLOSION IN DATA
So much data is created each day in our Industry. Thousands of invoices, thousands of scanned transactions, all with multiple items in each basket. Managing, keeping safe and secure and extracting insights from the data your company produces needs to be in the hands of talented people, who can help you get the most return from that data. More importantly, we all need to become familiar about how we use data to lead us to new opportunities.
CUSTOMER SERVICE
In a world of instant gratification, customers expect instant customer service at a level, that matches the best experiences they’ve ever had! And if you get it wrong, there’s a website where they can shout about it from the digital rooftops. Nobody goes to work to do the wrong thing and it’s a fact that sometimes things go wrong. I care about the engagement people have with me and my business and I expect that same care in return. We are a service based Industry, when you find people that care deeply about customer service, grab them and keep them!
REPUTATION MANAGEMENT
Similar to customer service, reputation is crucial. Customers can voice their view about your business or even yourself so much more publicly and loudly than ever before. Businesses have to monitor and maintain their online reputations, they also need to manage their service reputations too. It’s an important task and for me, it’s not the last in the list because it’s the least important. It’s last so we remember it as being the sum total of all doing the above points incredibly well. C&I
OPINION
CHARLES WATSON GM, Workforce Guardian
If this decision stands employers will need to consider the risk of possible backpay claims by effected workers.”
THE CADBURY DECISION LEAVES A STRANGE TASTE
S
ince the commencement of the Fair Work Act (the “Act”), questions have been asked as to how sections of the legislation were to operate. Although there was an extensive Explanatory Memorandum and much debate at the time, when governments revise and redraft industrial relations legislation, they generally do it pretty quickly. Over time this will result in some cross referencing, application of custom and practice, head scratching, and a little guesswork. Related cases affected by the legislation will be lodged before relevant tribunals to clarify what judges thought the politicians meant. Sometimes those tribunals will have to clean-up or define terms as a result of poor legislative drafting. Recently we have had a decision handed down by the Federal Court giving an interpretation on an issue that has remained relatively untested but continually questioned.
The company and the relevant union had been duking it out on the issue and ended up in the Federal Court. Siding with the company held ‘historical’ views on accruals, the federal government threw its hat in the ring under its right to intervene in such matters. Throw in a wiggery of barristers, and a quarrel of solicitors and the end product was not going to be enjoyed by everyone.
THE ISSUE
At the time of writing this article, it is unclear whether an appeal will be lodged against the decision. Given the decision is inconsistent with widespread industry practices, it is likely that an appeal will occur. Similar Court proceedings in relation to other companies are on currently on foot with decisions pending. Nonetheless, given how the cards have currently fallen, employers should review their systems and methods for the accrual and payment of leave. Employers should also consider any related obligations in relevant Awards, enterprise agreements and contracts of employment. Where entitlements are currently accrued and deducted in hours, employers will need to consider whether this approach is consistent with the number of days required under the Act having regard to the pattern of hours worked. If this decision stands employers will need to consider the risk of possible backpay claims by effected workers. C&I
The Act provides a minimum entitlement for employees to accrue and accumulate up 10 days of personal/carers leave per annum. Generally, a work “day” has been viewed and interpreted as a “notional day” based on an employee’s ordinary hours per week. Under the Act, employees are to only work a maximum of 38 ordinary hours per week. Spread that across a 5-day week that is a 7.6-hour day. Over the course of a year this results in an accrual of 76 hours personal/carers leave per year. But what about an employee who performs lengthier shifts, maybe 10 or 12 hours across 3 or 4 days? How many actual hours of personal leave should they be accruing …76 hours ...120 hours? This was the issue under review by the Federal Court in relation to shiftworkers at a Cadbury factory in Tasmania. 46 December 2019/January 2020 | C&I | www.c-store.com.au
THE DECISION
By a 2:1 majority the Court held that the Act entitles workers to accrue ten working days of paid personal leave per year, rather than notional days based on their average weekly hours. This decision means that for those workers at the Cadbury factory, the yearly personal leave accrual for a 12hour shift worker equates to 10 days at 12 hours or 120 hours, not 10 days at 7.6 hours or 76 hours.
EMPLOYER CONSIDERATIONS
INDUSTRY NEWS
La Freak Gala Dinner held at the Royal Pines Resort on the Gold Coast The circus-themed extravaganza!
Darren Park was joined on stage by the team from UCB to cut the cake!
Race car simulator on the Red Bull stand
I&J Fish In Chips was one of the most popular stands at the UCB Expo
UCB CELEBRATES 25 YEARS OF TRADE PARTNERSHIPS
The UCB National Conference was held at Royal Pines Resort on the Gold Coast (14-16 October) and the industry was out in force.
U
CB CEO Darren Park said the 2019 National Conference and Trade Show was not only for UCB members and Trade Partners, but also provided the entire industry an opportunity to connect.
“The UCB National Conference and Trade Show continues to focus on one thing, bringing members, trade partners and broader Convenience industry participants together in the one location for knowledge, celebration and some great trade show deals,” said Park. Park said the fact that the whole industry loves being together is an added bonus: “That we simply enjoy ourselves so much, is for me the icing on top,” he said. “Being our 25th anniversary is something really special and we are grateful for our members and industry support, business can be tough and we know that our longevity has been built on Optimism, Confidence and Trust,” said Park. “A point I regularly make is that a rising tide lifts all boats, we are all in this together,” said Park. 48 December 2019/January 2020 | C&I | www.c-store.com.au
“Our 2019 Conference was the biggest we’ve every delivered and our goal is to have even more trade partners and convenience industry delegates in 2020, giving our members and trade partners greater opportunities to improve their businesses,” Park said. “We were fortunate to have Peter West, Managing Director CCA, Australia attend this year as our special guest. And whilst I can’t put words in his mouth, I’m hopeful he was proud of the way our members embrace and respect BIG BRANDS,” Park said.
UCB ‘CIRQUE LA FREAK’ GALA DINNER AND TRADE PARTNER AWARDS The UCB Gala Dinner, sponsored by Lactalis Australia was held at the Royal Pines Resort on the Gold Coast as part of the National Conference. “It’s our Gala Night, where the we simply celebrate success and have some fun,” Park said. The night was themed ‘Cirque La Freak’ and it was an all-out affair with a circus-style extravaganza complete with fireworks and amusement rides and sword-swallowers. The full list of 2019 UCB Trade Partner Award winners are on page 53. C&I
INDUSTRY NEWS
Kris Francis, Laura Ronan and Michael Quilter from Nestle
The Distributors won two major awards at the UCB Conference for Trade Partner of the Year 2019 – Wholesaler/ Distributor and Mike Bendle was awarded Trade Partner Representative of the Year 2019.
Lactalis prize giveaway
Richard & Laura Stockwell from Prefect Agencies
The Bowser Bean team
Trade Partner of the Year – Communications – epay
The Frucor Suntory team
Coca-Cola won three of the major awards at the UCB Conference for Carbonated Soft Drinks and Sports Drinks Trade Partner of the Year, Overall Trade Partner of the Year and Trade Stand of the Year.
The Asashi Schweppes Team
Olivia Goulter & Lauren Purtill from Remedy Drinks
Taking an Ice Break playing Xbox on the Oak stand December 2019/January 2020 | C&I | www.c-store.com.au 49
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As the modern day landscape allows us to swap and change between jobs and careers and as businesses open and close each and every day, holding onto a dream and building it with great people becomes crucial. It is for this reason, and so many more, why you should celebrate company milestones. Let’s face it, everyone loves an excuse to celebrate! Back in 1994, current UCB Chairman Reg Johnston built his then business Super 24 Systems into a new entity called United Convenience Buyers. With the support of a group of Petroleum Distributors as early Members, UCB quickly established a new way of helping these Members and Trade Partners grow together. Many will remember the Wetherill Park site that was for many years, the location that tested and trialled the many innovations that UCB have brought to market. It was a location for Trade Partner meetings and the saying, “if it didn’t work in Wetherill Park, it probably wouldn’t work anywhere” was born. It’s a little forward to say UCB were early innovators, and judged against today’s standards, this 1990s merchandising standard appears basic. But how innovative is the positioning of food and beverages together? If you look closely, you will even see an open air deli cooler and an impulse cooler too!
Image: Wetherill Park owners Warren Ghisla, David Fox and Reg Johnston.
Fast forward to the Year 2000, the year Sydney hosted the Olympic Games and Reg welcomed Warren Ghisla along with a young and dynamic retailer called Darren Park, as partners in UCB. And with that, UCB grew in leaps and bounds, continually focused on the mission that has become the guiding principles of UCB, whatever we do must be good for our Members, good for Trade Partners and good for UCB. We win together. In 2011, Darren Park became CEO of UCB and continues to work tirelessly with passion, to highlight the importance to everyone in the FMCG trade, of building great brands in Australian Convenience. Darren also regularly shares his views on the crucial contributions that Independents make, to a vibrant and shopper friendly retail trade.
Image: Food and Beverage Section, UCB.
UCB Stores celebrate their 25th Anniversary in 2019. We all take joy in the enduring partnerships with Members and Trade Partners and how together we have all contributed to a bold, outward looking and confident Australian Convenience Industry. Darren and the entire UCB team, celebrate the role of the Independent and believe that they are more important today, than ever before. UCB’s 25th Anniversary is dedicated to the early pioneers of Australian Convenience, our Members who support UCB today, including foundation Members who have been with UCB from the beginning and those retailers who have been members and we hope will be members again one day soon, and of course all our UCB Team Members who help deliver the UCB values, each and every day.
Image: Darren Park, CEO UCB Stores.
INDUSTRY NEWS
Carlin and Alex from Four Seasons Condoms
The Mrs Mac’s team
Lion was presented with the UCB 2019 New Product of the Year Award for Dare Triple Espresso.
The Lactalis Team
The Metcash Team
The Smith’s Team
Troy Richard, Wayne Vohland and Sam Osboldstone from Stuart Alexander
Trade Partner of the Year – General Merchandise – Pacific Optics
The Amaysim team
Handmade Food Co with Eddie Nader
52 December 2019/January 2020 | C&I | www.c-store.com.au
Trade Partner of the Year – Cigarettes – Philip Morris
The Streets Team
UCB CEO Darren Park with the CCA team including Peter West – Managing Director, Australian Beverages.
INDUSTRY NEWS Darren Park cuts the cake at the UCB Gala Dinner on the Gold Coast
2019 UCB Trade Partner Awards
The full list of winners for this year's 2019 UCB Trade Partner Awards are as follows:
CARBONATED SOFT DRINKS & SPORTS DRINKS
GENERAL MERCHANDISE Finalists: Pacific Optics Repco
Finalists: Coca-Cola Amatil Frucor Suntory Asahi Beverages Red Bull
The winner is Pacific Optics
CIGARETTES
The winner is Coca-Cola Amatil
Finalists: Philip Morris Imperial Tobacco British American Tobacco Smokemart Freechoice
ENERGY DRINKS Finalists: Coca-Cola Amatil Frucor Suntory Asahi Beverages Red Bull
The winner is Philip Morris Limited
COMMUNICATIONS
The winner is Frucor Suntory
FUNCTIONAL DRINKS AND WATER Finalists: Coca-Cola Amatil Frucor Suntory Asahi Beverages Red Bull
Finalists: Epay Australia Telstra Optus Vodafone Touchcorp The winner is Epay Australia
The winner is Asahi Beverages
SNACKING Finalists: Unilever – Streets The Smith’s Snackfood Company Peters Ice Cram Snack Brands JC’s Nuts The winner is The Smith’s Snackfood Company
CONFECTIONERY Finalists: Mondelez Nestle Mars Wrigley Stuart Alexander Ferrero The Repco Team spinning their Wheel of Fortune
The winner is Mondelez
FOOD MANUFACTURER Finalists: Mrs Mac’s Patties The Handmade Food Co Priestlys Ingham Simplot Don Smallgoods The winner is Mrs Mac’s
FLAVOURED MILK & ICED COFFEE Space Cowboy – the multiple Guinness worldrecord holder known for juggling a chainsaw while on a unicycle, was one of the entertainers during the Cirque La Freak Gala Dinner concluding the UCB Conference on the Gold Coast.
Finalists: Lactalis Lion Brownes Coca Cola Amatil The winner is Lactalis
WHOLESALER/DISTRIBUTOR Finalists: Metcash PFD The Distributors The winner is The Distributors
NEW PRODUCT OF THE YEAR 2019 The winner is Lion Dare Triple Espresso
TRADE PARTNER OF THE YEAR 2019 Finalists: Coca-Cola Amatil Lactalis The Smiths Snackfood Company Frucor Suntory Asahi Beverages Mondelez Mrs Mac's Philip Morris Limited Pacific Optics Lion The Distributors The winner is Coca-Cola Amatil
TRADE PARTNER REPRESENTATIVE OF THE YEAR Finalists: John Konidis – Repco Mike Hendle – The Distributors Joseph Lanzafame – Coca-Cola Amatil Lachlan Browne – Coca-Cola Amatil The winner is Mike Hendle The Distributors
TRADE SHOW STAND OF 2019 The winner is Coca-Cola Amatil
December 2019/January 2020 | C&I | www.c-store.com.au 53
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Offer ends 31.01.20. Data for use in Oz. Extra Data for new and existing customers on all Automatic Recharges made between 17.09.19 – 31.07.20. Prepaid Combo Plus customers only. Terms and Conditions: For $30 Combo Plus all inclusions expire after 28 days or upon next recharge, whichever occurs first. Not for commercial or resale purposes. Personal use only. Starter Pack Offer: Available where advertised. Limit 2 per customer. Discount on full price only and is applied at point of purchase. Not transferrable or redeemable for cash. All offers subject to change. Once data inclusion is used, you will need to purchase a data add-on or recharge to continue using data. Vodafone $30 Starter Pack/Recharge terms apply – see packaging/voucher for info. Recharge costs additional. Extra Data: Extra Data available to prepaid customers (‘Eligible Customers’) who purchase and activate a Prepaid $30 and above Combo Plus Starter Pack (‘Eligible Recharge) and opt in to Automatic Recharge between 17.09.19 and 31.07.20 (inclusive) unless extended. Extra Data is available on the Starter Pack plus on every Automatic Recharge made by 31.07.20 (‘Eligible Recharge’). Extra Data: 15GB on $30 Prepaid Combo Plus Starter Pack (10GB included, total 25GB). Applied within 72 hours following successful activation of Starter Pack. When you activate your Vodafone SIM you accept the Vodafone Standard Form of Agreement. A summary and the full agreement are available at vodafone.com.au/sfoa. All offers subject to change. Recharge costs additional. Not transferrable or redeemable for cash. For new customers prescribed ID and user details must be provided. To find out more about Automatic Recharge head to vodafone.com.au/atr.
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INDUSTRY NEWS
BUSINESS BY THE BOATLOAD New Sunrise’s I.C.E.WORKS conference was a huge success
N
ew Sunrise’s conference, I.C.E.WORKS ‘19 in San Francisco, California (29 July – 2 August) was a great success according to New Sunrise’s Managing Director, Steve Cardinale.
“Each year, we always aim for retailers and suppliers to come away with a greater understanding of the changes in both the C-Store and food and beverage industries and how New Sunrise will support and drive growth across our retail network,” said Cardinale. “I believe we have delivered on this in San Francisco.” The business session was broken into four key sessions of: Learning, Inspire, Network and Connect. During the 'Learning' session, attendees heard from industry experts, sharing their views, results and predictions for future. The 'Inspire' sessions featured an array of speakers, presenting short ignite topics, designed to challenge ways of thinking with actionable initiatives that can be effected immediately. 56 December 2019/January 2020 | C&I | www.c-store.com.au
INDUSTRY NEWS
Each year, we always aim for retailers and suppliers to come away with a greater understanding of the changes in both the C-Store and food and beverage industries...� - Steve Cardinale, New Sunrise
December 2019/January 2020 | C&I | www.c-store.com.au 57
INDUSTRY NEWS
As Independents, we are successful because we are fast to act, we are agile, careful and above all caring.” - Steve Cardinale, New Sunrise
'Network' sessions featured insight into some New Sunrise retail members, to understand their business and share best practices. And finally, during the 'Connect' sessions, attendees had time to engage and connect with all delegates, both retailers and suppliers, to share information and stories. At the business session, Cardinale outlined his views on a changing industry, and how the independents are leading the charge. “I believe that Independent business always expect the unexpected. We are the first to step off a secure path and search for new and different ways. As Independents, we are successful because we are fast to act, we are agile, careful and above all caring. This is our advantage”. C&I
58 December 2019/January 2020 | C&I | www.c-store.com.au
AVAILABLE TO ORDER NOW. CONTACT YOUR FRUCOR SUNTORY REPRESENTATIVE ON 1800 237 727
PETROL NEWS ROUNDUP DAN ARMES Founder of ServoPro
Taking the time to learn allows you to remain dynamic and continue to offer value to your customers.”
KNOWLEDGE IS THE SECRET TO SUCCESS
F
or those who were at the 2019 C&I Industry Symposium you would have heard Jeff Griffiths from Endeavour Petroleum give an honest assessment of the petrol and convenience industry. There were many points that Jeff made which will stick in the minds of those that heard his speech. For me, Jeff gave two very insightful comments that have stuck with me since. These comments ring true for myself in my own business and also act as a reminder for those building a successful petrol station. The first significant point Jeff made was "knowledge is everything when growing a business". Through my consulting work and the ServoPro membership, of the 2000+ petrol station operators I work
60 December 2019/January 2020 | C&I | www.c-store.com.au
with, the ones that are the most successful make time to grow their knowledge base. Petrol Station operators need to understand their customers’ needs, products, business environment, compliance areas, tax implications and the skills required of staff, to name a few. To build your knowledge base you need to take time away from your business to read, talk, and listen to both internal and external sources. Owning and running a petrol station can be very time-consuming. Many of our members work more than fourteen hours a day and in some cases six to seven days a week. When you are running a petrol station, it is easy to get caught up in the day to day tasks of running the
PETROL NEWS business and not have any time to think and learn. I have been there. The ServoPro members I work with that are really kicking goals, realise that they need to work smarter not harder. They realise that if they get stuck in the daily grind of running their business they burn out and become unproductive. Key areas of their business get forgotten and they miss out on new opportunities. Taking time out to think and learn is integral to running a successful business. Successful service station operators make a conscious effort to take themselves out of their business so that they can grow their knowledge base. For example, taking the time to check on their competitors or others in the industry to see what they are doing. They take time to read the news and attend industry events to see what new opportunities are available to grow their business. This type of proactive management can give business owners a fresh perspective as well as motivation to improve or change. I have seen first hand the impact knowledge can have on improving the profitability of a petrol station. It is a privilege for me to be able to pass on valuable information through the ServoPro network to members. Seeing members implement new strategies on how to reduce costs and increase sales changes lives. A great source of valuable information can be found in the people you employ. After all, they are the ones who spend the most time with your customers. From informal discussions about customer feedback to planned meetings where brainstorming can be done – it all helps to build knowledge and gain information that helps to better serve your customers. It is also important for your employees, who are the face of your business, to be equipped with industry knowledge and key information. Employees who are well informed and up to date in implementing best practice can set you apart from your competitors. To get this knowledge you need to be able to ask great questions. Great questions provide great answers. This leads me to the second point from Jeff Griffiths’ talk that
stuck in my mind... "Show enthusiasm for wanting to learn and doors will open". I hear from some petrol station operators who say they have been in the industry for a long, long time and they have seen it all. Nothing surprises them. Not many people have been in the industry as long as Jeff Griffiths and Jeff acknowledges the importance of learning to access new and lucrative opportunities. Through ServoPro I am always learning new things about our great industry. It is this accumulation of knowledge which allows me to provide great value to independent petrol station operators through the ServoPro membership. Knowledge is highly valuable. Our members who are growing their businesses the fastest, constantly ask me questions. If I don’t have the answer I find out for them. I make sure I have access to resources which can provide me with the most up to date information and answers to questions that are relevant and appropriate. Those that are hungry to learn, make the most progress and adapt to change which is crucial in our fast paced industry. There are huge changes happening in the petrol and convenience industry and if you don’t adapt to change, you will be left behind. Taking the time to learn allows you to remain dynamic and continue to offer value to your customers. There are constant challenges in running a petrol station. Asking questions, learning, and making sure you are at the forefront of best practice will give you confidence to take on those challenges and find opportunities. During the business strategy sessions I have with ServoPro members it is amazing how many new and great ideas people come up with to implement in their business. By asking questions about the industry and learning what others are doing, people start thinking outside the square and come up with new opportunities and innovations to improve their own business. I encourage you to always be asking great questions. Try and learn something new every day and the opportunities will come to innovate and stay ahead of your competitors. C&I
I have seen first hand the impact knowledge can have on improving the profitability of a petrol station.”
December 2019/January 2020 | C&I | www.c-store.com.au 61
PETROL NEWS
7-Eleven fuel app saving Australia drivers $16.8 million
7-Eleven Australia’s fuel app has hit two million downloads and Australian drivers have collectively saved more than $16.8 million on their fuel since January 2017, according to the company. 7-Eleven Australia CEO, Angus McKay, said the company’s customers have benefited from locking in when prices are lower and redeeming over the following 7 days when it is convenient for them to do so. “Our customers have saved $16.8 million since January 2017, an average of $5.25 per fill (14 cents per litre). By locking in when fuel pricing is lower in the market and filling up when it suits them over the following 7 days, the app makes saving on fuel purchases convenient for customers,” McKay said. “Use of the app continues to grow as consumers take advantage of the potential savings by locking in their fuel prices. In the last week of September 2019 consumers saved in excess of $330,000, with an average saving of $7.27 per fill (20 cents per litre).” The 7-Eleven Fuel App uses a customer’s current location and fuel price data to allow motorists to find the best local fuel price at their five closest 7-Eleven stores. They can ‘lock in’ that price and redeem it at any 7-Eleven Australia fuel store within the next 7 days. If the price of petrol at the store is lower than what customers have ‘locked in’, then they pay the lower price. “7-Eleven aims to be competitive in our everyday fuel pricing, but the app gives customers the opportunity to take control when petrol is cheaper, and use that price lock when it’s convenient for them that week and maximise their savings per fill,” McKay said.
Viva Energy announces new appointment Viva Energy has appointed Amanda Fleming as Chief People and Technology Officer, effective October 2019. Fleming brings over 20 years’ experience across Retail, Fast Food and FMCG leading business-wide transformations, as well as Human Resources, Merchandise, Operations and Commercial functions. Chief Executive Officer of Viva Energy, Scott Wyatt, said the company was delighted to welcome Amanda to the team. “As a member of Viva Energy’s Executive Leadership Team, Amanda will lead the company’s effort to build world class talent and digital capabilities which are critical to achieving the company’s retail, commercial and operational strategies,” said Wyatt. “We have exciting plans and I am looking forward to Amanda helping us deliver on these.” Fleming said she was excited to have such a unique opportunity to drive innovation and create value through the company’s people and technology. “Viva Energy’s extensive Retail Network provides the perfect platform for innovation, digital transformation and value creation,” said Fleming. “I’m looking forward to working with Viva Energy’s talented team as we build the strategic foundations of our future together.” Prior to joining Viva Energy, Fleming was the Chief Transformation Officer (CTO) and Managing Director, Commercial, for Super Retail Group, the owners of Super Cheap Auto, rebel, Boating, Camping, Fishing (BCF) and MacPac. Previously Amanda has held executive roles including Director of Human Resources for Coles Group in the Wesfarmers organisation, Chief Operations Officer and Chief People Officer for Pizza Hut USA, and Human Resources Director for Mars in Australia (where she also served as European Organisational Development Manager for Mars in the UK and Europe).
Shell installs Australian-designed EV chargers in US
Shell has expanded into the US, installing its first electric vehicle (EV) chargers under the Shell Recharge brand at Boston’s Logan airport, choosing chargers from Brisbane-based Tritium. Installed by Shell member and EV charging provider Greenlots, the units are 50kW Veefil-RT DC fast-chargers from Tritium which can add around 150km range to an electric vehicle in about 30 minutes. Tritium is expanding globally, in 30 countries worldwide including in Europe through the Ionity charging network and in Australia.
62 December 2019/January 2020 | C&I | www.c-store.com.au
BP and David Jones open first store BP and David Jones have opened their first co-branded store in Bayside, Melbourne. The new store aims to deliver fresh, high-quality products, innovative convenience offers and shape the way Australian consumers shop for food. Brooke Miller, BP Australia vice president sales and marketing said, “Our Bayside BP and David Jones Food Store offers customers a glimpse into the future of shopping on our Australian forecourts – aiming to deliver an outstanding retail experience with the highest quality fresh food at great value. “The store design has been carefully planned to cater to the expectations of busy, urban customers while still providing BP’s usual high-quality offers such as the Wild Bean Café,” Miller said. BP Bayside, on the corner of North Road and Nepean Highway, showcases the new dual-branded look and feel, alongside BP’s quality fuels offer. BP and David Jones Food will offer more than 400 products at Bayside, with food-for-now and food-for-later options, pre-prepared meals and groceries. The store also stocks the usual favourites customers expect to find at any BP store, including the Wild Bean Café.
PETROL NEWS
7-Eleven earns $78m for 15 petrol stations Fuel and convenience retailer, 7-Eleven Australia has netted $78 million in its one-day auction extravaganza of 15 petrol stations around the country. Nearly 350 turning up at live-linked auction events in October in Sydney and Melbourne conducted by portfolio specialists Burgess Rawson. The 7-Eleven stores were spread across New South Wales, Victoria, Canberra and Western Australia. A spokesperson from 7-Eleven said: “The sale results reflected the pentup demand for 7-Eleven properties, reflecting the voracious demand for assets leased to Australia’s number one convenience retailer. “The buyers were a mix of existing 7-Eleven landlords who knew the quality and underlying value of the assets they were purchasing, and firsttime purchasers who were determined to own a 7-Eleven. In doing their due diligence in the lead-up to the auction, investors fell in love with the business, and that sentiment was reflected in the incredible results achieved,” they said. The properties sold for more than $10 million above their collective reserve prices, proving that there’s a great deal of urgency from investors for good quality properties. Each of the properties was offered with a renewed 12-year lease with fixed 3% rent increases, with many sites also offering development potential or space to expand. The stores included a 7-Eleven leased fuel site at Clyde on Sydney’s Parramatta Road which sold for $3.9 million.
Another with a drive-through service station with a McDonald’s onsite in Campbellfield on Melbourne’s northern outskirts netted $8.52 million. A site in Sydney’s Liverpool earned $5.75 million, while a fuel outlet Canberra’s Braddon went for $7.1 million. Other sites included Mornington, Rockbank, Croydon and Ferntree Gully in Melbourne, Seven Hills, Colyton, Toongabbie and St Marys in Sydney, Holt in Canberra, Ellenbrook in Perth and Marks Point in Newcastle. The convenience retailer had signed new 12-year leases for all 15 properties and covers all rates, repairs, maintenance, building and public liability insurance. Mornington 7-Eleven
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Petroleum equipment and services
Action Installation & Services
ELGAS SWAP’n’GO®
Action Installation & Services was formed in 2006 when Michael Mintilakis and Ron van der Meer decided to create an installation and service company that was second to none. Over 50 years of combined fuel industry experience and knowledge has enabled them to build a business which continues to lead change in the downstream petroleum industry. Action Installation & Services continually strive to achieve the highest standards of environmental and safety performance, through the use of well informed, highly trained people. Action currently employs 40 staff across admin, installation, pump and electronic service. Action Installation & Services strives to satisfy the requirements and expectations of every client every time in a professional and cost effective manner. Regular reviews ensure the quality of all products and services and business operations; and that all employees have appropriate job skills training; and quality management, contractual obligations and ongoing process improvement is maintained.
Elgas SWAP’n’GO® is the leading BBQ gas exchange program brand in Australia. The program offers your business the opportunity to increase sales and profits with a very well-known and respected brand. SWAP’n’GO® also provides your customers with fast, safe and easy transactions. Out-of-date bottles are accepted at no extra charge. You can add to or replace your declining refill sales, and low margins, with a reliable, convenient and secure swap program that has low labour costs for you. SWAP’n’GO® maintains a record of excellence in safety, with comprehensive staff training in the safe handling of LPG. Elgas SWAP’n’GO® is backed by a national network of refilling plants and branches to ensure that your business receives quality service. SWAP’n’GO® also creates a massive summer stockpile to provide uninterrupted service during the seasonal peak periods. Contact Elgas today to become a SWAP’n’GO® dealer.
Contact: Michael Mintilakis Phone: 1300 785 425 Email: michael@actioninstall.com.au Web: www.actioninstall.com.au
Phone: 1300 652 003 Email: swapngo@elgas.com.au Web: www.elgas.com.au/swapngo
Cardtronics
Gallagher Fuel Systems
When you see an ATM in a supermarket, convenience store or Petrol location, there’s a good chance it’s from Cardtronics, a proud supporter of the convenience, café and fuel industries. Cardtronics understand the needs of a variety of establishments and the commercial environments that retailers in the P&C channel face. Cardtronics know that you need your ATM up and running without any issues to service your patrons and provide them with safe and easy access to cash. For your business premises a Cardtronics ATM will mean more customers with cash to spend in store, reduced eftpos fees, 24-hour service and support. It is a fact that a percentage of the cash withdrawn from a Cardtronics ATM is spent on the premises, which will improve your revenue streams. At Cardtronics we know from proven experience that an ATM can deliver more sales to your business. If you want to create more foot traffic in your business, an ATM does that. Cardtronics is Australia’s largest independent ATM provider and part of the global Cardtronics brand. We operate a real 24 hour service, we operate our own technically trained help desk, offering nationwide support with a national network of spare parts warehouses and dedicated in-house technicians.
Gallagher Fuel Systems 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 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.
Phone: 1300 305 600 Email: sales@cardtronics.com.au 64 December 2019/January 2020 | C&I | www.c-store.com.au
Contact: Derek Hjelm, Business Development Manager Australia Phone: 0424 164 814 Email: derek.hjelm@gallagher.com Web: www.gallagher.com
SUPPLY-FIND
Flowsell Flowsell, providers of an innovative gravity-based drink merchandising system, say that when it comes to saving staff time, managing stock and increasing sales, “it’s all about gravity”. Cool rooms with flat shelving, incur a range of ongoing and unnecessary costs. By comparison, Flowsell’s drink merchandising system, reduces labour costs removing the need to double handle products and continually face up product. The system also ensures proper FIFO (first in, first out) stock rotation, reducing product wastage and – better still – fridges maintain an attractive, fully stocked appearance as customers buy throughout the day. The Flowsell full rack drink system is used extensively in all areas that retail drinks from a cool room. This includes service stations, convenience stores, bottle shops and function centres. Other options available from Flowsell include a specialised Retrofit Bottle Slide Kit. This kit enables a customer to convert an existing flat shelf into a gravity feed system. This system has been successfully used in convenience stores, bars, sporting clubs, cafes, bakeries, fast food outlets and anywhere that has a fridge with flat shelves. Flowsell also supplies a gravity feed milk trolley for use in supermarkets with a dedicated cool room. Free your staff to deal with customers in store and let gravity do the grunt work. Contact Flowsell on www.flowsell.com.au or Ph: 03 9708 2276 to find out how you can start saving today.
10 Sonia Street, Carrum Downs, VIC 3201 Phone: (03) 9708 2276 Fax: (03) 9708 2279 Hours: Mon - Fri: 9am - 5pm www.flowsell.com.au Advertisement -14- C&I Dec-Jan 2019_.pdf 1 12/11/2018
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Gascorp Pty Ltd – Budget Petrol Budget Petrol, established in 1985 is one of the oldest and largest groups of independent service stations in NSW, with over 60 locations in the Sydney Metropolitan area. Our Retail stores strive to provide our customers with Quality Fuel at Budget Prices. Our Wholesale arm – Gascorp Pty Ltd offers independent operators a business model which enables them to run their own business without interference, while utilising the backing of a competitive, professional and reliable brand. We offer competitive Mobil supplied fuel prices, Valvoline Oil, LPG Supply, In Store Programs, ATMs, Banking Partners and Environmental Regulation Support. We also operate our own fuel transport company which allows us to offer the highest levels of service for fuel deliveries and logistics.
Strategic Price Management C
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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: Diann Melas Phone: (02) 9564 2355 Email: fuels@gascorp.com.au Web: budgetpetrol.com.au
To be listed here, please contact Safa de Valois on 0405 517 115 or email safa@c-store.com.au
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Be informed of what you need to know when you need to know it and make decisions that will improve your bottom line. Access the latest pricing data Receive alerts Informed Sources provides solutions that will help you achieve your business goals www.informedsources.com
Accurate, Reliable, Timely December 2019/January 2020 | C&I | www.c-store.com.au 65
SUPPLY-FIND
Shipman King Pty Ltd Shipman King Pty Ltd is an Australian designer, manufacturer and distributor of equipment for the service station forecourt industry. Under their ESKAY brand, Shipman King’s long history has enabled the company to become a major supplier of this equipment throughout Australia, New Zealand and the Pacific region. With an extensive product range and ability to service the whole of Australia, Shipman King is truly your one stop shop. Australian owned, Shipman King’s product range includes: •F ill Adaptors and Caps, Dip Cap Assemblies •U pflow Vents, Pressure Vacuum Vents • Dip and Fill Product Markers •V apour Recover Equipment, Stage 1 and 2 • Overfill Prevention Valves complete with aluminium tube ready for retro fitting
• Monitoring Wells and Ground Boxes • Durapipe PLX Polyethylene Piping System • Underpump Containment Sumps and Browning Spill Safe Boxes • Adblue Equipment • Sloan-LED Canopy Lights • Cim-Tek Spin-On Filters • Husky Fuelling Products • Aboveground Tank Equipment
For their complete product range, please visit Shipman King’s website. Contact: Nigel Howlett Phone: (03) 9459 9900 Email: sales@shipmanking.com.au Web: www.shipmanking.com.au
Other suppliers Abacus Stocktaking Services Pty Ltd Accor Action Installation & Services Pty Ltd Active Eye Advanced Lighting Technologies Australia Inc Aitken Rowe Testing Laboritories PtyLtd Augusta Properties AusSport Pty Ltd Australian Enviro Services B&B Industrial Benchmark Business Sales & Valuations BP Australia Caltex Australia Capricorn Society Ltd Cavvanba Consulting Pty Ltd Coffey Environmental Services Commercial Indemnity Pty Ltd Compac Sales Pty Ltd Conservelec Pty Ltd Douglas Partners Earth Air Water Consulting & Monitoring P/L ECL Group Energy Action Environmental Monitoring Solutions Pty Ltd Envirotank Pty Ltd Envirowest Consulting Pty Ltd EquipCo ETP International Pte Ltd F&M Supplies Fuel Data Solutions Fuelgear Geo-Logix Pty Ltd
Gilbarco Australia HMC Pty Ltd Intertek Testing Services Jeffery & Katauskas Pty Ltd Jon Jen Trading Pty Ltd Leighton O'Brien Pty Ltd Liberty Oil Liquip International Pty Limited Metro Petroleum Mobil Oil Australia MPHP Architects Pty Ltd MTAA Superannuation Fund Pty Limited North Cross Australia Pty Ltd Northern Petroleum Equipment Services Pacific Guage Park Pty Ltd Perich Constructions Pty Ltd Perisale Australia Pty. Ltd. Petroleum Tank Technology Precision Stocktaking Services Puma Energy RCA Australia Pty Ltd SGS Australia Pty Ltd Spill Station Australia Pty Ltd Tank Solutions Pty Ltd Tennco Pty Ltd The Remediation Group Trans Tasman Energy Group Trax Retail Solutions Unigas Pty Ltd United Petroleum Urth Energy Valvoline Wayne Fuelling Systems
SI Retail SI Retail is an Australian owned family business that has been operating since 1974. With extensive technical knowledge, their professional team have developed a range of versatile shop fittings and point of sale solutions to suit a variety of retail industries. With the petrol and convenience industry in mind, SI Retail has created a range of displays for retailers to showcase their products in the most costeffective and efficient ways. This will assist your business by driving product sales, whilst decreasing operational costs and maintaining a neat and attractive environment to promote a positive shopping experience for your customers. Whether you require signage, shelving, shelving accessories (such as roller gravity shelves, LED lighting or shelf management), shopping baskets, hooks or data strips, SI Retail have the solutions for you!
Phone: 1300 434 775 Email: info@siretail.com Hours: Mon - Fri (8.30am - 4:30pm) Web: www.siretail.com
66 December 2019/January 2020 | C&I | www.c-store.com.au
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 Mobile: 0405 517 115 Email: safa@c-store.com.au
Available in Lemon Lime & Bitters and Blood Orange & Bitters, the new Waterfords Premium Glass range exhibits a zesty citrus flavour finished off with a spicy bitters note. The result is a sophisticated, refreshing drink that can be enjoyed at any time of the day!
To stock the Waterfords Premium Glass range, or for more information, please contact Tru Blu Beverages on (02) 9912 6700, or visit the website www.trublubeverages.com.au