POWERFUL. TRUSTED. FAST.
FEBRUARY/MARCH 2023
Welcome to the February/March issue of Convenience & Impulse Retailing magazine.
2023 is off to a flying start with the UCB Conference just around the corner on the Gold Coast, and the AACS Connect 23 Summit also quickly approaching. It’s so wonderful to be able to reconnect with the industry at events like these to engage with our peers, learn about new release products and industry trends, and celebrate retail excellence.
We were fortunate enough to join the Dib family and Metro Petroleum team in the Hunter Valley at the end of 2022, and we’d like to congratulate the entire team on putting on such a fantastic event, filled with education, networking opportunities, as well as plenty of fun and games. We’ve put together a few of the highlights, so turn to page 54 to see what we got up to.
Speaking of Metro, in this issue we look at an innovative partnership between Metro Petroleum and Frucor Suntory, who have unveiled an Australian first V Energy concept store at Greenacre. The new store features vibrant V Energy branding both inside and outside the petrol station with the impressive brand experience starting as soon as customers pull into the pumps.
Also in this issue, we take a look at how global supply chain disruptions have caused countless headaches for retailers and suppliers alike, and we ask how we as an industry can navigate these murky waters.
We also examine the vibrant categories of confectionery and general merchandise and take a look at the growing plant-based milk category.
As always, we are grateful to have our regular columns from Theo Foukkare, CEO, AACS and Darren Park, CEO, UCB Stores, and Dan Armes, Founder, ServoPro, along with a special opinion piece from Marianna Idas, Principal at eLease Lawyers. We also share our first opinion piece from Andrew Poore, General Manager Sales ANZ, Pacific Optics, who will become a regular contributor to C&I moving forward.
To our readers, the team at C&I had a ball putting this issue together, and hope that you get as much joy out of reading it.
Cheers, Deb
Jackson
54
06 FACE TIME Glenys Tristram, National Marketing Manager, NightOwl Convenience 10 STORE REVIEW Metro Greenacre 14 CONFECTIONERY Accessibility, visibility, and excitability are pivotal in driving consumer engagement 18 SUPPLY CHAIN Global supply chain disruptions have caused countless headaches for retailers and suppliers alike 22 GENERAL MERCHANDISE A less traditional approach to retailing general merchandise 26 PLANT-BASED MILK Australians are making the switch from dairy to plant-based milk in their droves 30 PRODUCT RANGING We bring you all the latest new product launches 46 OPINION Theo Foukkare, AACS;
Park, UCB Stores; Andrew Poore, Pacific Optics; Marianna Idas, eLease Lawyers 54 INDUSTRY NEWS Metro Petroleum; Morsl; NightOwl; OTR; Coles; Sugar Tax, Ampol 60 PETROL NEWS Dan Armes, ServoPro; Caltex; Chevron; Ampol; bp 14 EDITORIAL CONTENTS February/March 2023
Darren
Safa de Valois
Keith Berg James Wells
4 February/March 2023 | C&I | www.c-store.com.au
Thomas Oakley-Newell
Jelly Belly launches new flavours
Jelly Belly is excited to introduce two brand new flavour mixes to the Australian range of 70g Pouches.
Cocktail Classics is sure to be a hit with every at home barista, and features crowd favourites such as Gin & Tonic, Margarita, Mimosa, Pina Colada, Strawberry Daiquiri, and Moscow Mules.
American Classics delivers some deliciously recreated flavours from the USA, ready to ride the wave of sweet lovers looking for US Candy. The mix includes S’mores, PB&J, Lemon Meringue Pie, Choc Covered Banana, and Blueberry Muffin.
Please contact your local The Distributors partner for more details or call 1800 989 022.
M&M’s new limited edition flavour
Mars Wrigley has released a new limited edition flavour of coconut M&M’s in an homage to the classic Bounty chocolate bar.
The new M&M’s Coconut sees a delectable coconut flavoured chocolate housed in M&M’s signature crispy coloured candy shell.
Ben Hill, Marketing Director at Mars Wrigley, said they saw how passionate the Australian market is about Bounty and all things coconut, so decided to create the bitesized, chocolate-covered love note to Bounty.
Made in Mars Wrigley’s Ballarat factory, M&M’s coconut is available in leading supermarkets and independent retailers for RRP $5.
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IPL introduces new tech range
IPL Retail Group has recently unveiled its new IPL TECH MFI Fast Charge and Sync Cable 1.2m, designed to provide a robust connection for all tech needs. This state of the art cable supports iOS devices with max output up to 2.4A, allowing for data transmission up to 480 Mbps. The high durability nylon braided construction offers outstanding reliability and longevity, with the ability to withstand more than 10,000 bend tests and 10,000 plugging and unplugging tests. Don’t worry about tangled or broken lines either as the 1.2m tangle free durable tough braiding ensures the cable will have a long lifespan. Enjoy 200mm more length with better value than other competitors. For more information visit iplretail.com.au.
Nick Kyrgios takes on soft drink market
Nick Kyrgios has partnered with Gen U Brands to enter the beverage market with the launch of Australian-made nosugar soft drink, Alive.
Each can of Alive contains one billion live probiotics and prebiotics and is available in eight flavours –blood orange and passionfruit, ginger, lemonade, lemon lime and bitters, orange, passionfruit, and pink grapefruit and raspberry.
Kyrgios, 2022 Wimbledon finalist, said he wanted to make a difference to people’s health with a product that tastes great and delivers.
Alive is currently available in selected IGAs and Coles Express’, with distribution set to expand significantly in Australia and overseas in coming months.
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As part of our company policy we ensure that the products and services used in the manufacture of this magazine are sourced from environmentally responsible suppliers. This magazine has been printed on paper produced from sustainably sourced wood and pulp fibre and is accredited under PEFC chain of custody.
PEFC certified wood and paper products come from environmentally appropriate, socially beneficial and economically viable management of forests.
DISCLAIMER
This publication is published by C&I Media Pty Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by Australian and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials.
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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.
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February/March 2023 | C&I | www.c-store.com.au 5
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Nick Kyrgios has launched no-sugar soft drink, Alive.
MEMBERS
PRIME TIME
A POSITIVE FORCE MAKING AN IMPACT
Glenys Tristram is the National Marketing Manager at NightOwl Convenience. She’s a passionate musician, marketer, animal lover, and mother of two teenage boys living in Queensland. This is her story…
Ihave nothing but fond memories of my childhood. I was born in Brisbane and went to a private high school in Ipswich along with my younger brother and sister. At home, my parents always made sure we had one or two dogs around to complete our happy family.
Always an extrovert, my two great loves in high school were music and Girl Guides. I spent an inordinate amount of time camping, going on excursions, and working towards my badges. As I’ve grown, my love of camping has dimmed slightly, but my love of music has stayed with me my whole life, even now, I’m looking to join a local choir.
Throughout my school years, I tried my hand at the piano, violin, and even flute for a while, but it was singing that gave me the most joy. Encouraged by Mum, in Year 11 I auditioned for, and was accepted into, the Queensland Youth Choir and followed that with a Bachelor of Music at the Queensland Conservatorium of Music after finishing high school.
Once I graduated, I spent some time travelling through parts of Africa and backpacking around much of Europe, eventually coming home to work as an audio engineer touring Australia and New Zealand with musicals through the 90s.
It was a calling and career that I loved, but when it came time to start a family of my own, the semi-chaotic life of a travelling freelancer didn’t seem to fit anymore, so I had to rethink my next move.
I descend from a couple of generations of soft drink manufacturers and the family business, Trisco Foods, played a big part in my life growing up. The original company was called Tristram’s Soft Drinks and Trisco and still manufactures wet food products today.
It was only natural to go to work for the family business after I decided to leave my audio engineering career. I started looking after various elements of marketing there and took to it immediately.
Marketing quickly became my new passion, so I enrolled in a Master of Business (Marketing) at the Queensland University of Technology. Then, moving on from the family business, I started at NightOwl when I graduated in 2020.
Starting out just as the disruptions of COVID-19 set in was a challenge. Still, I thrived in the company and about a year and a half after starting as the Marketing Coordinator at NightOwl, I was offered, and gladly accepted, the role of National Marketing Manager.
6 February/March 2023 | C&I | www.c-store.com.au FACE TIME
One of my proudest career moments came to fruition just recently with NightOwl’s first ever wall token donation program, through which we were able to donate more than $36,000 to the Children’s Hospital Foundation.”
– Glenys Tristram
One of my proudest career moments came to fruition recently with NightOwl’s first-ever wall token donation program, through which we donated more than $36,000 to the Children’s Hospital Foundation.
It’s a cause I passionately championed to actively bring to life the core NightOwl value of community-mindedness. I’m very proud of the execution and results we achieved as a team.
In today’s business environment, it’s more important than ever to show your customers, through concrete actions, who you are as a company and what steps you’re willing to take to back your values.
Customers have high expectations regarding company values, and it’s a career highlight for me to have introduced this level of social responsibility to our franchise.
Outside the office, I love to spend my time with friends, singing, reading, hanging out with my sons, and relaxing with our extended furry family. I grew up with dogs, so when we started fostering animals through the RSPCA during the pandemic, I wasn’t expecting to end up with a cat.
However, due to the kids, we had a massive foster failure with a cat called Mouse, now a permanent and well-loved family member. I’ve always been a big dog person, so this new life with a cat still makes me laugh.
Regarding my career, it’s hard to say what the future holds. If the pandemic has taught us anything, it’s that nothing is certain, but still, having a solid direction is important to me.
Leadership roles are of interest to me, as it’s an area where I can make a positive impact. I completed the Australian Institute of Company Directors (AICD) ‘Company Directors’ course in early 2022, and I aim to put everything I learned to good use.
One thing I know for sure is that I absolutely love the franchise business model, so when I’m ready for a new challenge, it’s likely I’ll move sideways into another franchise-based company in some capacity. C&I
“
Glenys with Owlando, NightOwl’s company mascot at the 2022 NightOwl Conference.
Leigh Bartlett, Head of Partnerships, Children’s Hospital Foundation with Glenys Tristram.
February/March 2023 | C&I | www.c-store.com.au 7 FACE TIME
Glenys Tristram and her sons on holiday in Tasmania in 2021, taken at Ocean Beach, Strahan while watching the sunset.
B NEV a It’s our
BETTER VER
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METRO BRINGS THE ENERGY
Frucor Suntory and Metro Petroleum have partnered to create Australia’s first V Energy Concept store in Greenacre.
Featuring a vibrant green exterior, synonymous with V Energy cans, Australia’s first ever V Energy Concept store at David Street, Greenacre is hard to miss.
In a first-of-its-kind partnership, Frucor Suntory has teamed up with Metro Petroleum to create the impressive new store, featuring prominent V Energy branding both inside and out.
Once customers have passed through the vivid forecourt, they’re greeted with dynamic digital signage, which is exclusive to V Energy products, that wraps around the perimeter and advertises the different varieties and promotional offers available across the V Energy range.
Deborah Cooper, Head of P&C at Frucor Suntory, said the idea came about following a collaborative planning session with Metro at the start of their three-year partnership.
“The Metro team were opening a new store, so it was an opportunity for us to partner with a new store opening in an area where we sell a high volume of V Energy.”
Currently within P&C, energy drinks make up 35 per cent of beverage sales*, with that number expected to increase to 40 per cent by 2026, which makes it an attractive category for retailers.
“From a P&C perspective, we know beverages are really important to retailers. So when you think about what’s driving growth in petrol and convenience, beverage is one of the key categories.”
Cooper explains that since the opening of the store, initial month sales are up in both energy and beverages as a whole.
Chris Burgon and David Fullerton, Frucor Suntory.
10 February/March 2023 | C&I | www.c-store.com.au
V Energy branding is visible as soon as customers pull into the forecourt of Metro Greenacre.
STORE REVIEW
“
“Metro would be really pleased with that. There’s really great momentum behind the beverage category and of course energy where we’re continuing to find growth. It’s great to see different ways we can partner with our customers in this area and the early signs are proving to be really successful.”
Green tick of approval
The thought process behind the store is also impressive, recognising the strong performance of beverages in the channel and tapping into that consumer demand.
Energy continues to lead total beverage growth and has experienced 12.3 per cent growth in the latest MAT, with V Energy performing even better than the category average with growth of 14.4 per cent.
This growth has been fuelled by a rise in energy drink consumption among consumers, boosted by the launch of new product lines including V Energy’s low-calorie, sugarfree V Refresh line.
V Refresh has achieved the highest level of trial of any energy drink NPD during the past 12 months since its launch in August and has demonstrated to be 30 per cent incremental to the overall energy category.
John Dib, Managing Director of Metro Petroleum, said he cannot wait to see how their customers connect and embrace with the V Energy experiential execution.
“As the energy category continues to grow and expand within the petrol and convenience sector, Metro Petroleum is proud to be partnering with Frucor Suntory on a first of its kind concept store for both businesses.”
Speaking at the opening of the store, Chris Burgon, Sales Manager – Australia, Frucor Suntory Oceania, said it’s an exciting time to put their vision of a concept store into reality.
“The V Concept store is a testament to the strong relationship and shared values that Frucor Suntory has with Metro Petroleum.”
Cooper agrees with Burgon on the success of the collaborative partnership with Metro and said that they will continue to explore opportunities together.
“From having an idea in a meeting room to seeing it come to life probably about three months later is a great success story of two businesses working really closely together.” C&I
As the energy category continues to grow and expand within the petrol and convenience sector, Metro Petroleum is proud to be partnering with Frucor Suntory on a first of its kind concept store for both businesses.”
- John Dib, Managing Director, Metro Petroleum
Chris Burgon and David Fullerton, Frucor Suntory with Lola Dib, Metro Petroleum.
The Frucor Suntory and Metro Petroleum teams officially opening the Metro Greenacre site.
February/March 2023 | C&I | www.c-store.com.au 11 STORE REVIEW
Chris Burgon, Frucor Suntory with Elie Dib, Metro Petroleum.
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THE SWEET TOUCH
Accessibility, visibility, and excitability are pivotal in driving consumer engagement of the confectionery category within P&C, writes Thomas
One category that continues to excite and delight consumers is confectionery. You’d be hard pressed to find a category that has such a broad customer base, from parents with kids on the way home from school, city workers at lunch time, to tradies at knock off, there aren’t many consumers that don’t like a sweet treat.
Despite the category’s overwhelming popularity, it suffered a slight drop in performance in the first half of 2022, revealed in the AACS 2022 State of Industry Half Yearly Update, which showed a decline of 1.3 per cent.
This drop was on the back of strong growth of 11.4 per cent in the first half of 2021, with several factors including record fuel prices slowing down the co-buy of confectionery with fuel purchases and the 10 per cent decline of gum and mint.
Guy Bennett, Brand Manager at GC Brands, capitalised on this shift in consumer behaviour and identified that across the Covid period, they saw a stagnation of the gum and mints category as consumers opted for flavour and sweet afternoon rewards over fresh breath, leading to the launch of Hi-Chew.
“Launching in Australia in 2020, having swept Asia, USA, and New Zealand, Hi-Chew has been perfectly placed to fill a need as a gum alternative bursting with flavour. Hi-Chew has
Oakley-Newell.
enjoyed enormous growth of 68 per cent MAT vs LY in 2022 with another national petrol retailer the latest to jump on board with ranging of Cola and Grape kicking off in Q1 2023.”
The growth of Hi-Chew isn’t the only high-performing brand at GC, with Bennett revealing that the company’s entire confectionery portfolio enjoyed exceptional growth in 2022.
“As a supplier of international products, we anticipate this to accelerate in 2023 with Nerds and Hi-Chew in particular expected to grow significantly within P&C on the back of strong supply and significant brand investment into the Australian market.”
For CTC Australia, Lisa Pushkin, Brand Manager, says that their best performing product is the Aussie Drops 70gm Eucalyptus.
“The Distributors Group (TDG) supplied us sales data, which showed the Aussie Drops 70gm as our number one SKU. Even outside of the winter months, this product continues to sell well and is appealing all year around to comfort and sooth.”
Although depending on the retailer, Pushkin has also seen CTC’s Fini Pencil and Cups ranges perform well due to the brand offering something different and unique.
14 February/March 2023 | C&I | www.c-store.com.au CONFECTIONERY
Kevin Pan, Channel Manager – Convenience and Impulse at Nestlé, said their best performing SKUs include KitKat Share Bar 65g, KitKat Chunky Share Bar 70g, Allen’s Snakes Alive 200g, Allen’s Party Mix 190g, and KitKat Medium Bar 45g, but they have also seen growth elsewhere.
“The medicated category has grown significantly in 2022 compared to previous years, impacted by a strong flu season.”
Skye Jackson, General Manager of Merchandise at Ampol, said the snacking and confectionery categories are showing a strong compound annual growth rate (CAGR) of four per cent, and identified the trends behind this.
“Trends that are driving this growth are continued innovation within flavour and texture profiles combined with strong collaborations across trusted brands and traditional sensorial tastes and flavours.”
Sweet innovation
Even with the growing health and wellness trend, confectionery still occupies a large amount of prime positioning, but Pushkin has noticed an emerging trend amongst independent P&C retailers.
“Independent P&C accounts are offering more unique lines and moving away from the major brands, such as offering bigger novelty bays, plus USA lines.”
Pushkin believes it is important that retailers be openminded when looking at what to range and that they offer unique confectionery products to both drive new sales opportunities and as a point of difference to competitors.
“Many of the majors are all so similar and lack any creativity. It’s good when retailers are open to trying new products and offering off location opportunities to smaller brands. Once given an opportunity, CTC products, sell very well.”
This heightened interest in unique and foreign products has been recognised by Bennett, who says he has seen an explosion of international novelty confectionery, and in particular, US candy.
“Brands such as Jelly Belly and Nerds are becoming the centrepiece of very broad ranges. GC enjoys exclusive partnerships with some of America’s largest candy companies and will be significantly broadening the range of US candy we distribute in Australia in 2023 with the guarantee of compliant packaging we provide on our entire portfolio.”
In addition to expanding the US candy range, in 2023 GC will also commence supply of chocolate in the P&C channel with Nomo Vegan and Free From (which contains no nuts, dairy, gluten, soy) chocolate.
“The brand is the UK’s number one in the category and is built to bridge the gap between specialty health and a mainstream audience as the market develops. Being able to distribute the brand cost effectively with temperature-controlled freight within a fractured channel will be a significant challenge until we can bring scale to the brand, however, leading national accounts have already shown great interest with health becoming more of a focus in convenience ranges.”
“ Trends that are driving this growth are continued innovation within flavour and texture profiles combined with strong collaborations across trusted brands and traditional sensorial tastes and flavours.”
– Skye Jackson, General Manager of Merchandise, Ampol
CONFECTIONERY February/March 2023 | C&I | www.c-store.com.au 15
When looking at category decisions, Jackson said Ampol reviews who the customer is and what product is engaging, connecting, and exciting them to pick up and add to their basket while fuelling up at an Ampol site.
“We also review what the supplier support is for the activation in the market, but also what differentiated support plan we can execute with Ampol. Overall asking — do we have the right product range to drive total category growth and profit?”
Convenience still king
The accessibility of P&C makes it one of the most desirable channels for the confectionery category, allowing suppliers to test the waters with NPD.
Bennett said that the channel makes up a large percentage of revenue for GC’s confectionery portfolio, making it a significant factor in top line results.
“Aside from sales results, the fragmented nature of the channel means that there are significant opportunities to partner with retailers of all sizes to build brands incrementally and seed new products to consumers to demonstrate their potential. This is often not possible in other channels dominated by a small number of large retailers.”
Nestlé also sees the benefit of selling certain products primarily in P&C, which is evident in the recent introduction of KitKat Gold Cookies in a 65g share bar format, a twist on fan favourite KitKat Gold, which was the number one
“The P&C channel is a focus for Nestlé. We’ve recently launched KitKat Gold Cookies available exclusively in a share bar (65g), which will primarily be ranged in this channel,” said Pan.
CTC views P&C as extremely important to its brand, as it is their second biggest channel behind major retail.
“It offers us space with plenty of walk-in traffic and loads of opportunities for our unique range of products,” explained Pushkin.
Despite Pushkin recognising the benefits of having space on the P&C shelf, she says arriving at that outcome can often prove challenging.
“It is difficult in major P&C, as their ranging is predominantly from the major suppliers who offer more rebates and spend more on promotions and off locations.
“Future opportunities will include offering products that are not mainstream so they can give their consumers a unique experience in-store. Things like our Pencils and Fini Gum range 60gm fall into this. Also, we need to tailor our offer to each customer. They are all looking for something different and to stand out from their competitor.”
Jackson identified that customers in the channel are not compromising experience and flavour, with continued love and purchases in trusted brands.
“Suppliers are focusing on fewer launches and making them have bigger impact, this is due to all the supply challenges and inflation pressures over the last 12 months.” C&I
“ Independent P&C accounts are offering more unique lines and moving away from the major brands, such as offering bigger novelty bays, plus USA lines.”
– Lisa Pushkin, Brand Manager, CTC Australia
16 February/March 2023 | C&I | www.c-store.com.au CONFECTIONERY
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SUPPLY AND DEMAND
Global supply chain disruptions have caused countless headaches for retailers and suppliers alike, but how do we as an industry navigate these murky waters? Asks Thomas
The past few years have seen massive disruptions to the global supply chain, from shifts in consumer demand to labour shortages to geopolitical situations such as the war in Ukraine and lockdowns in China.
These factors have impacted the day-to-day running of businesses across Australia and the world and have forced companies to pivot and re-evaluate the way their business operates.
Looking at the P&C supply chain, Darren Park, CEO of United Convenience Buyers (UCB), said that across the value chain we collectively expect to buy products ondemand, through preferred partners and suppliers.
“This challenges supply chains to have the right product, in the right place, at the right time, and at a competitive price. This has been generally a stable platform for quite some time, but the world has changed. Australia is part of a globalised supply chain, that includes finished products and raw materials. COVID-19, natural disasters, cybersecurity breaches, inflation, trade disputes and many more events and behaviours continue to take their toll on our supply chains.”
Oakley-Newell.
While these are the obvious and well-known contributors, Park says that what people aren’t talking about is the existing and new market entrants that have accelerated their growth over the past 24-36 months, which have retrained consumers and shoppers to expect on-demand access.
“So, not only have we as retailers been dealing with massive supply chain vulnerability, but we also have shoppers that still behave like every item, is just one click away. That continues to be a challenge to manage.”
Theo Foukkare, CEO of the Australian Association of Convenience Stores (AACS), points to the current labour shortages as being one of the most significant factors affecting the supply chain.
“The challenges from the last two years are still with us and are affecting us all the way through from manufacturing, logistics, and warehouse management. Leading into Christmas, suppliers were constrained by how much they could physically get out the door to customers based on available staff. This is slowly addressing itself, however, I believe that it will still be an issue for at least the first six to nine months of 2023.
18 February/March 2023 | C&I | www.c-store.com.au SUPPLY CHAIN
Above: Supply chain disruptions make it difficult to achieve consistency in store execution and customer availability.
“Supply chain disruptions make it difficult to achieve consistency in store execution and customer availability, not only causing frustration for everyone, but also letting customers down. It also presents retailers with compliance challenges to their planogram range and promotional.”
Kristie Davison, Vice President Sales Asia Pacific, RELEX Solutions, a company that helps retailers improve planning in all functional areas, from forecasting and replenishment to planogramming and workforce optimisation, believes that we’ve had a series of challenging years and that 2022 was no different.
“While the pandemic began releasing its grip somewhat, Russia’s invasion of Ukraine flung us into a wartime economy, bringing steeply rising energy costs, inflation, and materials scarcity, unlike anything we’ve seen in decades.
“These challenges have become more acute within the retail and consumer goods industries, as shown by the rapidly shifting consumer behaviour we’ve seen in many markets. Retailers aren’t alone in feeling the pinch of increased commodity prices and have seen a reduction in consumer buying power as a result.”
This new challenge of reduced buying power as a result of record-setting inflation has imposed a new challenge on business following the years of supply chain disruption.
“Decreased buying power has forced retail customers to make hard decisions about the goods and brands they spend their money on. This need to adhere to a stricter budget comes at a poor time for retailers who find their margins shrinking as the cost of products rise.
“Even though it may be possible in some categories to raise prices and pass along the increases in raw material costs to consumers, it would be unfeasible in many categories. The retailers able to refrain from raising consumer prices seem to be winning in their markets across geographies.”
Dealing with difficulties
While it may seem like there is a perpetual parade of problems affecting businesses across the country, Park believes that recovery will happen, but it will take time, perhaps another 12 to 18 months.
“We need to see normalisation of labour availability (both domestically and internationally) and even though sea freight for example is slowly trending back from its highs, raw materials are still hard to access especially via China, where at the time of writing lockdowns are still in force, impacting manufacturing capacity. There are some other complex issues in play now too such as interest rate increases in Australia, which ironically may impact demand too.”
Looking at UCB, Park says that supply chain difficulties have affected their business through such things as “visible” as not being able to find your favourite energy drink, potato chip, or confectionery snack on shelf, to “less visible” but keenly felt increases in the P&C industry’s cost of goods sold (COGS).
“There are multiple actions we have taken and will need to take into 2023. We must, and we have, adjusted price, it’s a reality. But we need to temper that with the other reality, which is our UCB members are not large multinationals, UCB members make money from buying and selling merchandise and to keep competitive in their local communities, they may not always be able to extract the maximum profit from their merchandise.
“We will need to be more aligned with our trade partners about how we help them sell more, reduce cost, and share fairly in those jointly gained benefits.”
Addressing concerns over disparities between how different retail sectors have been favoured during supply chain disruptions, Park says that if you asked 100 people what they thought, then many will say Retailer X seems to be getting an advantage over Retailer Y, but for Park the answer is a little more sensible.
“If you can track inventory, manage shipping, and keep updated on which items are moving the fastest, in real time or as close to, it can appear that you have an advantage over a retailer that might not have some of that capability.
“ Not only have we as retailers been dealing with massive supply chain vulnerability, but we also have shoppers that still behave like every item, is just one click away. That continues to be a challenge to manage.”
– Darren Park, CEO, United Convenience Buyers
Russia’s invasion of Ukraine flung us into a wartime economy.
February/March 2023 | C&I | www.c-store.com.au 19 SUPPLY CHAIN
Decreased buying power has forced retail customers to make hard decisions about the goods and brands they spend their money on.
“What I will say though, is that many in convenience rely on many trade partners who are logistics experts, and my message is that I will be expecting to see more visibility from them across their business on my members’ supply chain positions in 2023.”
Foukkare acknowledged that he has heard the stories around how some retail channels, particularly organised grocery, are favoured ahead of others, but is not close enough to the supply chain to comment further.
“I believe that all retailers should be entitled to access stock proportionately to their sales and planned activities to ensure fairness.”
Davison believes that until recently a convenience store’s main competition was simply another c-store, but that has now changed.
“Quick commerce businesses have made aggressive moves into the convenience space, promising delivery of small baskets, as we saw this year with the ramp up of Metro60 in Australia. Quick commerce faces very unique supply chain challenges as consumers are increasingly looking for fresh food and food-to-go.”
Retailers looking to stay relevant must improve, streamline, and automate in-store operations to elevate the customer experience, claims Davison.
“C-stores have unique challenges related to their small footprint and high cost per square foot. They must balance high availability with the ever-present risk of waste and lack of backroom space to hold safety stock. They also need to ensure that their customers can find exactly what they want and quickly make a purchase.”
Offering advice to retailers, Davison says promotional planning is more relevant than ever as customer shopping patterns change and that many retailers still use a “copy and paste” method using the previous year’s data to develop their annual promotional plans.
“Considering how quickly customer demand and shopping patterns have changed these days, it is easy to understand why this approach is not the most cost-effective. As such, we found an opportunity in the market to improve how retailers and consumer brands use data and analytics to predict the impact of their promotional plans.”
Looking ahead
While the challenges we’ve faced of late are likely to continue into 2023, Davison says that companies that can react quickly and nimbly are the ones who will make it through challenging times the best.
“I’m confident our solutions will continue to help retailers and consumer goods brands reduce their costs through improved efficiency, accuracy, and transparency throughout their supply chains in the coming year and into the foreseeable future.”
For Foukkare, he believes that great communication with partners will allow stock to flow into their most needed areas.
“While some suppliers can afford to bulk up their stock to satisfy their customer demand, other suppliers aren’t able to be given the shelf life. Some partners are looking at multiple supply/manufacture options and looking at more production locally, however this comes with its own set of challenges.”
Echoing Foukkare’s sentiments, Park agrees that having effective communication between all involved parties is one of the most important aspects of navigating supply chain difficulties.
“For too long, supply chain has operated as an important but rarely spoken about function. Very few trade partners bring supply chain to our table. UCB is a valuable and complex network with a supply chain that mirrors that.
“What can we do together to focus on consistent optimisation? What benchmarks are feasible to aspire to? How do we jointly share savings and also build efficiency and security for all? This is not a trade partner only problem, it’s a joint one and it needs to be treated in a way that supports mutuality of understanding.”
The importance of the power of communication as a vehicle to jointly share issues and look for sensible ways forward is important to Park and UCB.
“From my perspective, I want myself and my team to be involved and aware early, so we can help to decide if we solve issues or live with them.” C&I
We want to hear from you
Are you a retailer who has experienced difficulties in acquiring stock? Have disruptions in the supply chain caused you to change the way you run your business? Reach out to Thomas at tom@c-store.com.au to take part in an article on the challenges currently facing P&C retailers.
“ I believe that all retailers should be entitled to access stock proportionately to their sales and planned activities to ensure fairness.”
– Theo Foukkare, CEO, AACS
20 February/March 2023 | C&I | www.c-store.com.au SUPPLY CHAIN
Raw materials are still hard to access especially via China, where at the time of writing lockdowns are still in force, impacting manufacturing capacity.
©2021 Energizer. Energizer, Energizer Character, and certain graphic designs are trademarks of Energizer Brands, LLC and related subsidiaries.
COMPLETING THE PACKAGE
The general merchandise category helps round out the P&C channel as a one-stop-shop for consumers, writes Thomas Oakley-Newell.
Cementing convenience stores as a one-stop-shop wouldn’t be possible without the availability of the general merchandise category. From sunglasses to toys, to smoking and auto accessories, making shoppers aware of the products available is paramount.
As consumers drifted away from heavily populated areas such as supermarkets and shopping centres during the pandemic, they came to the less crowded P&C channel to purchase their everyday items, and in turn witnessed the wide variety of general merchandise available.
Ben Coleman, General Manager of Commercial and E-Commerce at Pacific Optics, said this is a huge opportunity to service customers that have migrated to the channel over the past 12 months, from grocery in particular.
“The challenge with this is making sure they get repetitively led to the channel through above the line marketing, the other challenge is in making sure what they see in advertising comes to life in-store.”
Yaniv Peleg, Director of Peleguy Distribution, has also recognised that consumers are visiting smaller, local stores more often instead of big supermarkets and shopping centres.
“We’ve noticed that buyers are exposed to a much wider range of products at P&C stores these days. There’s also a trend of customers spending money happily on things they would not normally get from a convenience store or a petrol station, such as phone chargers with wireless charging technology, bluetooth earphones and gifts, which are usually more expensive than your everyday range.”
22 February/March 2023 | C&I | www.c-store.com.au GENERAL MERCHANDISE
Over the summer, Coleman has noticed an uptick of eight per cent in the sale of sunglasses, most likely off the back of marketing investment and better weather as opposed to previous years.
“During summer, sunglasses and headwear are the best performing products given the season and the sunshine we have had this year. The colourful ‘dopamine inducing’ shades have been really well received, particularly by party and festival goers.”
Also noticing a change in consumer preferences over the summer months is Tal Avrahami, Managing Director at Smooth Wholesales, who said they’ve also seen an unprecedented demand for sunglasses.
“We have been inundated with orders, which I guess comes down to quality and price. The last time I checked, our sunglasses were probably one of the best priced in the market without compromising on quality. So, it’s no surprise they’re popular.
“Other products like USB-powered fans, drink bottles, sunscreen, and beach toys are also proving to be incredibly popular with our customers. The busy bees in the office are already putting together some great deals for when the weather gets colder in the coming months, so I’d keep an eye out for that.”
Avrahami believes that as a wholesaler in the P&C channel it is Smooth Wholesales’ job to understand the styles that shape the industry, while also trying to be trend-setters.
“Consumers aren’t as close-minded to new products as some may believe, with a number of non-traditional categories performing well over the last 12 months such as toys and novelty giftware. The demand for Select Footy Cards is also showing that these timeless collectables are more popular than ever.”
Changing landscape
As the cost of living continues to increase, consumers are looking to tighten their purse strings and while this has no doubt led to changes in purchasing habits, it’s the job of wholesalers and suppliers to attempt to offer value where they can and maintain interest in their products.
“With the cost of living going up and up, consumers are becoming more price conscious with their shopping. This aligns to our core mission at Smooth Wholesales, to help our P&C customers meet the demands of their customers. We go above and beyond to find the best deals, from the best manufacturers to bring the best value to the Smooth Wholesales network,” explains Avrahami.
While offering value is critical, it is also important to understand the consumer and Avrahami says that insights are what help drive their business decisions, and by sharing them with the customer they can help them make better choices.
“We base all our recommendations on observed results, like an approximate increase of 145 per cent of disposable vapes suggesting that P&C consumers are shifting away from traditional tobacco products to newer options.
“Additionally, we’ve also seen an increase of over 40 per cent in the sales of toys and games around seasonal buying periods, which presents as a great opportunity for stores to be convenient locations for consumers to now buy gifts for friends and family.”
For Peleg, their best performing products are phone accessories such as the Vibe USB cables, but he also recently noted an increase in the sale of IGET vapes.
“IGET vapes have picked up pace recently, demonstrating that customers have had enough of traditional cigarettes. Consumers desire a funkier, cheaper, and healthier alternative to cigarettes. IGET vapes are the number one choice by consumers.”
Having effective communication with retailers is important to Peleg, and they spend time educating store managers about which products sell the fastest and advise them to carry back-up stock.
“ The mission we have at Smooth Wholesales is to help store operators and small business owners in P&C by supplying affordable, highquality stock and sharing our vast experience and knowledge to maximise their earning potential.”
– Tal Avrahami, Managing Director, Smooth Wholesales
February/March 2023 | C&I | www.c-store.com.au 23 GENERAL MERCHANDISE
“Some clients are running out of things only a week or two after receiving them, which is rather impressive. We are aware because when clients run out, they call to let us know and then purchase more.”
A trend that Coleman and Pacific Optics have noticed is the introduction of non-MFi (Made for iPhone) products and cheaper technology products into the market, which may be limited in the amount of scrutiny it receives before making its way to a shop shelf.
“We hope this doesn’t devalue the category as a whole for our trade partners or harm the reputation for quality that consumers have learnt is available in the channel. We are also seeing increased demand and acceptance of fast charge and magnetic charging technology as the newer phone models become more common.”
A convenient offer
For Avrahami, P&C is in his blood. His family have been in the industry since the 70s, so it is something he has grown up with his entire life.
“As a company, we pride ourselves on the fact that we’ve been in the same position that a lot of our customers are experiencing, and we understand the difficulties and pain points with running these businesses. It’s the reason we started Smooth Wholesales, because we understand that independent operators and even larger organisations are conscious of the bottom line – that amount that keeps their business going.
“The mission we have here, at Smooth Wholesales, is to help store operators and small business owners in P&C by supplying affordable, high-quality stock and sharing our vast experience and knowledge to maximise their earning potential.”
Avrahami’s father’s words of wisdom; “You don’t know, what you don’t know” are what he would say when he was trialling products at his Liberty sites, and this phrase still rings true for Avrahami.
“He believed that if you bring the right products, at the right prices, then you’ll always find a customer for them. That is something we see time and time again within our
network of customers who are willing to take calculated risks on products they’ve never tried and seeing remarkable outcomes. P&C customers don’t want to see boring stores with the same old stock, they want to see exciting products at reasonable prices and that’s why our customers trust us to help them boost store sales.”
At Peleguy Distribution, the P&C channel is extremely important to them, as it is the largest sector of their business.
“This industry is where we excel and we aim to help our customers make thousands of dollars in revenue every month. We achieve this by having regular store visits and supplying a large range of products that are in high demand,” says Peleg.
Offering advice to retailers in positioning and selling Peleguy products in-store, Peleg said that retailers must make the shelves attractive and eye-catching, while keeping the products neat and visible.
“Make sure you have reasonable prices to be able to become that regular local store that the customers are happy to come back to. Shelves must be full, always stock up on the more popular products to avoid the shelves looking empty. Don’t be afraid to over-stock on fast moving items, you don’t want to be left without stock and having customers asking for sold out items.”
Avrahami believes that the P&C industry is witnessing a dynamic shift in the design and layout of stores.
“I have seen it at a few of Jasbe Petroleum’s new sites in Victoria, which have successfully merged functionality with aesthetics. This raises the question of how to effectively display and sell products. I believe that a key strategy to boost sales is positioning products in prominent spaces and utilising captivating signage to draw customers’ attention. Additionally, making sure prices are clearly visible will inform customers of potential bargains which, in turn, will keep them coming back to your store.” C&I
“ This industry is where we excel, and we aim to help our customers make thousands of dollars in revenue every month.”
– Yaniv Peleg, Director, Peleguy Distribution
24 February/March 2023 | C&I | www.c-store.com.au GENERAL MERCHANDISE
Above: Having eye-catching, neat, and visible shelves is the key to making more sales of general merchandise, according to Peleguy. Bottom right: Peleguy advises stores to keep display shelves attractive and fully stocked.
ORDERNOW! AVAILABLE MARCH 2023 1300 180 770 smoothwholesales.com.au CONTACT US TO SECURE YOURS TODAY STARTER PACK OPENING ORDERS 2 x CARD 36PK CDUs 2 x ALBUM 10PK CDUs INCLUDES Note that 2023 packaging may be different to what is displayed above. *
MILK FOR THE MASSES
Whether for health, the environment, or simply for taste, Australians are making the switch from dairy to plant-based milk in their droves, writes
Where once soy was dairy milk’s solitary competitor, now, there are a plethora of options like oat, almond, rice, coconut, macadamia, pea, potato and even hemp to satisfy a growing demand for dairy alternatives.
Perceived as healthier and greener, data from the Australian Bureau of Statistics (ABS) supports what many companies already know, that demand for animal-free alternatives across the board is growing by the minute.
Paul Atyeo, a health statistics spokesperson from the ABS, said the average apparent consumption of dairy and meat substitutes has risen 29 per cent since the 2018-19 financial year.
“About 17 grams of apparent consumption per person per day came from dairy milk substitutes like soy milk or almond milk. This is equivalent to about half a metric cup per week.
“Consumption of dairy milk substitutes rose four grams per day between 2018-19 and 2020-21, mirroring a four grams per day fall in dairy milk over the same two-year period.
Rachel White.
“Almond milk had a particularly rapid increase in apparent consumption, up 31 per cent in the last two years. Soy milk increased by 16 per cent over the same period,” Atyeo said.
Lauren Chapman, Founder of h.alt, an innovative company bringing hemp milk to the market, says the take-up of dairy alternatives is multi-faceted, with consumers making the change for various reasons.
“Plant milk as a category is growing massively with a generational shift away from dairy. We know that public consciousness and the need for more sustainable options have led to more people choosing to drink plant-based milk.
“Another common and growing reason to believe people are making the switch to plant-based milk is due to allergens, lactose intolerance and digestive issues that often arise from dairy milk,” she said.
Andrew May, Co-CEO of Unigrain, a B2B oat milk supplier, agrees. He said the reason consumers are buying plantbased milk is varied dependent on the individual.
26 February/March 2023 | C&I | www.c-store.com.au PLANT-BASED MILK
“Everyone’s decisions are slightly different. It could be lactose intolerance, it could be environmental sustainability, it could be that it just tastes good. I think there is a whole range of factors,” he said.
Oat on the rise
The newest kid on the block, oat milk, although not the most popular choice currently, is widely predicted to be the plant milk that will overtake other varieties within the next few years.
Appealing for its mild flavour and dairy milk-like qualities, including its pleasing pairing with coffee and ability to be frothed without splitting, many producers are adding oat milk products to their offering.
Sanitarium, manufacturer of Australia’s first dairy milk alternative, So Good, is jumping on the oat milk bandwagon with its newly launched Toatl range designed for the convenience channel.
“Oat milk is the plant milk on the rise,” said a Sanitarium spokesperson. “Our local oat milk manufacturing capability and our successful oat milk launches in grocery and café, meant creating a great-tasting grab-and-go oat milk for convenience customers was a clear opportunity.”
Tim Clarke, Shopper Strategy Manager at Sanitarium, said the flavoured milk segment is an ever-evolving market that thrives on innovation.
“With more consumers at the fridge looking for a plantbased option, Toatl provides the opportunity to convert these shoppers with a great tasting offer. This will bring new consumers into the segment and drive incremental sales. It’s a must have,” he said.
May says at the core of demand for any food or beverage offering is taste, and despite health or environmental concerns, at the end of the day, for a consumer to make repeat purchases, a product has to taste good.
“We can’t forget the fundamentals of food and beverage demand, which is it has to taste good and that’s I think, ultimately where the market has really found its place.
“As a consumer, [a plant milk] has to fit those categories really well, so it tastes good and it works in all the applications you would expect dairy to,” he said.
Above all other plant-based milks, May said the rapid rise in the popularity of oat is because it is a familiar and wellreceived ingredient in Western countries like Australia.
“Oats are a really well-accepted ingredient in Western countries, and I think that makes a real difference in terms of take up of the product, relative to a product such as soy milk,” he said.
Where to next?
Associate Professor Nitika Garg, a researcher in consumer behaviour from the School of Marketing at the University of New South Wales (UNSW), said it’s possible that, in time, plant milk will take over dairy milk in popularity.
“Much of the growth to date appears to be consumer-driven, so I would expect the trend to continue to grow.
“As these brands continue to scale up their manufacturing and marketing efforts, there’s a huge opportunity for a true milk substitute to emerge and compete with dairy,” she said.
One possible roadblock is cost, as plant-based milk is generally sold at a higher price point than regular dairy milk, making it unrealistic to assume it will take over completely any time soon.
“ Plant milk as a category is growing massively with a generational shift away from dairy. We know that public consciousness and the need for more sustainable options have led to more people choosing to drink plantbased milk.”
– Lauren Chapman, Founder, h.alt
February/March 2023 | C&I | www.c-store.com.au 27 PLANT-BASED MILK
“We do have an issue with making products such as plant-based milk accessible for everyone. They are more expensive, and some consumers who might want to switch can’t, especially with the cost of living right now where every dollar counts.
“It might be something governments need to explore, to help subsidise in the same way they subsidise the dairy industry,” said Associate Professor Garg.
Professor Johannes le Coutre from the School of Chemical Engineering at UNSW notes another challenge with plant-based products, including milk, comes from the manufacturing process.
“There are challenges when it comes to plant-based products in that they usually destroy a lot of nutritional goodness and require a lot of resources just to mimic a product [milk] that isn’t intended for human consumption in the first place,” he said.
May agrees and said there’s still progress to be made in the manufacturing process of plant-based milk to optimise taste and nutritional value.
“I certainly think there is a long way to go in terms of specific product development,” he said, especially regarding oat milk, which is highly geared towards creating the best experience possible for the coffee consumer.
“Innovation will also be important in terms of other kinds of plant-based mixes whether that be oats, or oat milk produced in combinations with other plant-based ingredients, so there’s certainly still a long way to go,” he said.
Taking things a step further, Professor le Coutre says plant-based milk is just the beginning of a new global food system that will give consumers a wider variety of choices than ever before.
“Plant-based products, existing animal-based materials and, someday soon, cell-based and blended products improve our food choices.
“As we expand our portfolio of products, it enriches the spectrum of offerings in the market to everybody’s benefit,” he said. C&I
“
Everyone’s decisions are slightly different. It could be lactose intolerance, it could be environmental sustainability, it could be that it just tastes good. I think there is a whole range of factors.”
– Andrew May, Co-CEO, Unigrain
28 February/March 2023 | C&I | www.c-store.com.au PLANT-BASED MILK
Alka Power a ‘game changer’ in the water category
With its ultra-hydrating properties, its immunity boosting benefits, and its crisp, refreshing taste, it was hard to go past Alka Power as our latest C&I Choice product, as it leads the charge in the better for you bottled water space.
Alka Power, which is ranged through a variety of channels including grocery, health, and wellness, and at WHSmith nationally, has recently expanded through the convenience channel including at Ampol and will soon be available in Ezymart stores. Managing Director Steve Pettaras explains that Alka Power has a bottling facility located in the Southern Highlands of NSW, with natural spring water drawn directly on-site. The result is the first and only naturally-raised high pH 9-10 alkaline spring water on the market.
“Alka Power is channelling into the mainstream bottled water segment as we believe Alka Power is the best tasting and better for you bottled spring water on the market,” he says.
“We infuse our spring water with unique active ocean sourced minerals, which also have a smooth crisp refreshing taste. Other high pH 9-10 alkaline waters are artificially raised using electrolysis (electrocuting the water molecule).
This method is unstable as once the bottle has been opened; oxidation causes the pH to drop to its original pH value.
“Of course, there are a number of other naturally raised alkaline spring waters on the market, but these are only slightly alkaline and will commonly be found to have a chalky after taste.”
Alka Power has national distribution in Coles, Woolworths, and WHSmith, as well as independent grocers such as IGA, Harris Farm, and is experiencing growth in health food, supplement stores, cafés, wellness centres and many more small retail outlets.
Pettaras concludes: “We’re pretty proud of what we have achieved and the feedback from our loyal customers. Even all our retailers and distributors are so happy with our growth in such a competitive price driven commodity such as bottled water.
“One driving force is brand loyalty and continued growth in major national retailers. The main functionality is how customers are repeat buyers of Alka Power and the feedback from them through socials and emails is how they see results by regularly drinking Alka Power. This gives us great pride.”
Nestlé Purina’s most convenient cat food is now available in P&C
Perfect for fast paced living, Nestlé Purina’s single serve Felix Sensations Jellies are now available at various petrol and convenience (P&C) retailers nationally.
One of the most popular cat food products on the market, Felix Sensations Jellies are individually portioned meals packed with vitamins, minerals and omega 6 fatty acids for a happy and healthy cat. Ready in seconds, Felix 12-pack and bulk varieties are available in multiple flavours featuring tender meaty and fishy pieces encased in a flavourful jelly to satisfy even the fussiest feline critic.
Fan favourites include salmon in tomato flavoured jelly, beef and tomato in jelly, chicken, spinach in jelly and ocean fish in prawn flavoured jelly, mackerel and spinach in jelly and turkey in game flavoured jelly.
The meal-sized portions are designed to be irresistible, while offering a balanced diet that meets all a cat’s daily nutritional needs in a quick and convenient format.
Wet cat food is a fast growing category, accord to Nestlé Purina, which has noted a general shift away from multi-serve cat food products and simultaneous uplift in single serve meal portions.
In line with shopper insights, Nestlé Purina has made its popular Felix Sensations Jellies available in both grocery and P&C channels to cater to busy professionals looking for quick and nutritious meals for their beloved companions.
Nestlé Purina has a longstanding commitment to helping pets live long, happy and healthy lives through proper nutrition.
PRODUCT RANGING 30 February/March 2023 | C&I | www.c-store.com.au
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Peroni delivers superior Italian taste with zero alcohol
In July 2022, Peroni relaunched Peroni Nastro Azzurro 0.0% under the Masterbrand of Peroni Nastro Azzurro, continuing to deliver the same Italian passion and flair to customers.
Launching in Europe in April 2022, Peroni Nastro Azzurro 0.0% is crafted using the signature Nostrano dell’Isola maize, grown exclusively for Peroni in the north of Italy, creating the same uplifting Italian taste.
Birra Peroni has implemented technology in its Rome brewery to enable Peroni Nastro Azzurro 0.0% to match the flavour profile of signature beer, Peroni Nastro Azzurro, which has been brewed since 1963. This technology allows the signature base recipe and ingredients of Peroni Nastro Azzurro to be used, and only after the characteristic aroma and taste profile of Peroni Nastro Azzurro is fully developed, is the alcohol gently removed to deliver the crisp and refreshing Italian taste.
Australians still love a drink but are consuming beer in an increasingly responsible way, with Australian alcohol consumption at historic lows. Peroni Nastro Azzurro 0.0% caters to Australia’s evolving tastes, allowing lovers of premium beer to moderate their alcohol consumption while still enjoying the full and distinctive Peroni flavour.
Introducing the ultimate refreshment: Level Lemonade & Cola
Level Beverages, founded by Chrish Graebner, is shaking up the beverage world with its range that seamlessly blends deliciousness and goodness. No more sacrificing one for the other, the Level range has something for everyone. The newest flavour, Level Lemonade & Cola, is the perfect solution for cola fans. Packed with essential vitamins and minerals, this drink is not just refreshing, but nourishing too. And it’s 100 per cent Australian made and owned.
Graebner acknowledges the lack of innovation in the carbonated soft drink market, but Level Lemonade & Cola is here to change that. With its unique blend of flavour and nourishment, this drink will satisfy your cravings and leave you feeling refreshed.
Say goodbye to bland and uninspiring drinks and hello to the ultimate refreshment. Level Lemonade & Cola will be available through leading wholesale partners, including Ampol, EG, Coles Express, New Sunrise, OTR, and Ezymart. Get ready for a new level of refreshment.
32 February/March 2023 | C&I | www.c-store.com.au PRODUCT RANGING
Manufacturing in Australia, can we come back?
What has happened to Australian manufacturing in the 21st century?
Tonik is proudly owned by Halo Food Co, one of the largest, and last major manufacturers of health, sport and diet companies in Australia. Having produced product as a contract manufacturer for more than 20 years, recently the company has stepped into the brand ownership space.
The challenges of operating a profitable manufacturing company are clear; labour costs, increasing ingredient costs, having an experienced team to maintain and run a well-oiled machine costs a lot of money.
This is why manufacturing over the past 20 years in Australia has been dwindling away year on year.
‘Buy Aussie Made Products’, is the call out we hear, but in a market flooded with imported products, how does the consumer clearly define what is Australian made and Australian-owned? These are the questions that Lisa Schilling-Thomson, National Sales Manager for Tonik asks.
Tonik is here now
That’s why Halo entered the market with its own brand Tonik, which produces protein bars, and protein RTDs all made right here, by the hands of Australians. As the call out says, ‘Made by Australians, for Australians’.
“Being the manufacturer, we have complete control over the quality of the final product, which is why we developed our own Proprietary Protein blends for our bars and RTDs, and only select the highest quality ingredients available,” says Schilling-Thomson.
“Our bars and RTDs are without doubt the best tasting in the Australian market, all due to the quality of our products. But without the support of retailers and gaining new ranging we are at risk, just like any other Australian brand.”
Tonik flies the Aussie flag proudly and loudly, and is gaining more, and more success in recent months, notably achieving new ranging in bp, Chevron, Metro Petroleum, New Sunrise Group, UCB, OTR, 7-Eleven, Foodworks, Romeos IGA, and Lloyds IGA.
Watch this space in 2023, Tonik is coming…
R E T A I L USB A - LIGHTNING TYPE C - LIGHTNING Unit 1, 22 Rowood Road, Prospect NSW 2148 Tech F O O T W E A R 1300 176 078 ABN 28632453135 support@iplretail com au www iplretail com au PRODUCT RANGING
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Mars Wrigley releases a world first Maltesers innovation
Mars Wrigley has launched the new Maltesers Gold, bursting with flavours of caramel and white chocolate, with Australians the first to try it globally.
The world first innovation for Maltesers sees the classic crisp malt centre coated in an indulgent gold white chocolate, adding a decadent twist to the iconic treat.
Ben Hill, Marketing Director, Mars Wrigley, said the product innovation has been consumer-led and the team expects Aussies to be excited by the launch.
“Australians are the first consumers in the world to enjoy our new Maltesers Gold, and we’re really proud to have designed and formulated the recipe and manufactured the product locally in Australia at our Ballarat innovation hub. It’s been a full team effort and we’re incredibly excited to have this product on shelves,” Hill said.
In recent years, Mars Wrigley has invested more than $25 million into its Ballarat site with the ambition to bolster consumer-led product innovation within its Bitesize portfolio.
“Maltesers Gold is not only one of the first product innovations for us this year, it’s a great example of where we’ll be taking the brand over the next 12 to 24 months, so there is a lot for us to be excited about.”
Maltesers Gold sits alongside the full Maltesers range offering, including Milk and Dark, and Honeycomb, Caramel, and Popcorn.
Maltesers Gold will RRP at $5 and will be available from Coles, Woolworths, and leading independent retailers.
The new Smith’s Taste Icons range features iconic restaurant flavours
The Smith’s Taste Icons range will feature five new flavours derived from three iconic restaurants – Subway, Red Rooster, and Mad Mex.
Launching in January, the new range features the following flavours: Subway Crinkle Meatball Sub, Subway Crinkle Pizza Sub, Subway Crinkle Chicken Teriyaki Sub, Red Rooster Crinkle Reds Fried Chicken Burger, and Mad Mex Double Crunch Hot Sauce.
Sam O’Donnell, Marketing Manager at Smith’s, said they are excited with the partnerships and the launch of what is their biggest brand collaboration to date.
“Smith’s is famous for its flavours, so of course we jumped at the opportunity to bring a unique range of flavours to life on our iconic crinkle cut chips.”
Ashley Hughes, Marketing Director at Red Rooster, said when the opportunity to partner with Smith’s came up, they couldn’t refuse.
“To us, nothing sums up the rooster’s call better than our iconic Reds Burger and we can’t wait to share our flavours with Aussies in a new and very craveable way by joining forces with Smith’s and their Taste Icons range.”
Rodica Titeica, Head of Marketing at Subway ANZ, said like Subway, Smith’s has been in the hearts of Aussies for many decades.
“Our freshly baked subs are a delicious and filling meal option for breakfast, lunch and dinner but we know there can be key snacking periods in between and partnering with Smith’s allows Aussies to access the Subway flavours they know and love in another form – in potato chips.”
Clovis Young, CEO and Founder of Mad Mex, said when they were approached by Smith’s to partner on the Mad Mex Hot Sauce infused chip, they jumped at the opportunity.
“We knew that by combining Smith’s product development expertise and our world-famous Mad Mex hot sauce, we would come up with something truly special for our amigos. The end result will impress even the toughest of food critics.”
The Taste Icons range has been available to purchase from Coles, Woolworths, and other independent retailers from January, with Smith’s Subway Meatball Sub flavour available exclusively at Coles.
36 February/March 2023 | C&I | www.c-store.com.au PRODUCT RANGING
Did you know…?
KitKat Gold Cookies is produced locally at Nestlé’s factory in Campbellfield Victoria, where 100 per cent of the electricity is sourced from wind power as of 2021. This same factory has been sourcing 100 per cent sustainable cocoa certified by the Rainforest Alliance® and supplied by the Nestlé
Plan since 2013, supporting cocoa farmers and their communities.
Caramelise your break with KitKat Gold Cookies
KitKat Gold Cookies is available exclusively in a 65g share bar and is sure to be a fan-favourite with KitKat lovers.
KitKat Gold Cookies is a delicious combination of crisp KitKat oven baked wafer fingers, fan favourite KitKat Gold chocolate and dark cookie pieces. By combining two hugely successful and popular flavours that work well in chocolate, KitKat Gold Cookies is a match made in heaven.
In 2018, Gold was the number one innovation launch and has been sustainable in the KitKat range ever since, while cookies continue to be a top performing flavour in the chocolate category year on year. KitKat Gold Cookies is the combination of these two fan-favourites and is available exclusively in a share bar (65g).
Cocoa
38 February/March 2023 | C&I | www.c-store.com.au PRODUCT RANGING
“ KitKat Gold Cookies is a delicious combination of crisp KitKat oven baked wafer fingers, fan favourite KitKat Gold chocolate and dark cookie pieces.”
Get ready to go NUTS!
KitKat’s smooth new flavours feature a spin on a fan favourite and are the first KitKat with real nut filling.
The KitKat team is taking Aussie ‘breaks’ to the next level by launching two new indulgent flavours, KitKat Smooth Hazelnut and KitKat Mint Cookies and Cream.
Set to satisfy all chocolate lovers, KitKat Smooth Hazelnut features KitKat’s iconic oven-baked wafer, filled with delicious, fudge-like hazelnut praline coated in irresistibly smooth chocolate. The new mouth-watering flavour is available in a KitKat block and the much-loved four finger bar.
Pulling out all the stops, the new KitKat Mint Cookies and Cream is a delicious combo of two fan favourite flavours – filled with creamy mint and crunchy cookie pieces, combined with the iconic KitKat wafer and smooth milk chocolate. KitKat Mint Cookies and Cream is available in a block, perfect for sharing.
Nestlé Marketing Manager Confectionery Shannon Wright said: “We’re excited to bring our KitKat fans this new range – to create truly indulgent ‘breaks’. The new Smooth Hazelnut marks the first Aussie KitKat with real nuts and delicious praline filling.
“We know chocolate lovers are seeking more indulgence and these new KitKat flavours offer just that. But don’t worry – we’ve kept the classic KitKat snap fans know and love from the number one chocolate bar*.”
KitKat Smooth Hazelnut Block (170g, RRP $5.50), KitKat Smooth Hazelnut Bar (45g, RRP $2) and KitKat Mint Cookies and Cream Block (170g, RRP $5.50) are now available in-store across supermarkets and convenience retailers nationwide.
*Nielsen Total Australian Grocery Report MAT 6/12/22
“ We know chocolate lovers are seeking more indulgence and these new KitKat flavours offer just that. But don’t worry – we’ve kept the classic KitKat snap fans know and love from the number one chocolate bar*.”
– Shannon Wright, Marketing Manager Confectionery, Nestlé
40 February/March 2023 | C&I | www.c-store.com.au PRODUCT RANGING
Allen’s relaunches a fan favourite taste of summer
Bringing back a fan favourite, this take on a range of classic Aussie ice-block and ice-cream flavours is only here for a limited time.
Frosty Fruits and Drumstick lollies
Allen’s and Peters have partnered once again to bring back the popular Allen’s Frosty Fruits and Drumstick range.
Originally launched in 2018, the range was one of the most popular in Allen’s history. Featuring flavours such as Tropical, Summer Sunset, and Watermelon Slice from Frosty Fruits, and Classic Vanilla, Super Choc, and Boysenberry Swirl from Drumstick, there was something for everyone.
Sapphira Nolan, Marketing Manager at Nestlé, said nothing says summer more than ice-cream.
“So, it makes sense to partner with the experts in this space, Peters Ice Cream, to offer a delicious twist on the popular Aussie treats you love.”
Carla Spadafora, Ice Cream Marketing Manager at Peters, said when they were given the opportunity to bring back these fan favourites, they had to say yes.
“Our collaboration with Allen’s Lollies was so popular when we first launched it back in 2018.”
The Allen’s Frosty Fruits and Drumstick range comes in a 170gm pack at RRP $3.60 and is available at convenience retailers, independent supermarkets, and Coles.
Allen’s Frosty Fruits
flavours include:
Tropical Summer Sunset (Tangy Orange and Pink Grapefruit)
Watermelon Slice (new)
Allen’s Drumstick flavours include:
Classic Vanilla Super Choc
Boysenberry Swirl
PRODUCT
42 February/March 2023 | C&I | www.c-store.com.au
RANGING
Kick goals with Select AFL Footy Stars
AFL is the most popular sport in Australia, so it’s no wonder that the demand for collectable cards is skyrocketing. With a release date set for March 2023, the Select AFL Footy Stars is the number one choice for footy fans and avid collectors.
Printed on high-quality card stock with full-colour images, Select cards feature the game’s most popular and iconic players from the AFL and AFLW.
“We saw an unprecedented response to the Select Footy Stars in 2022 from our P&C customers,” says Smooth Wholesales Managing Director, Tal Avrahami.
“They don’t require a big investment to get them on shelves and they bring customers in-store and coming back for more.”
With the 2023 season fast approaching, Avrahami anticipates an even bigger demand this year as more stores recognise that collectable cards are hot sellers and must-haves.
Avrahami continues: “I remember when I was a kid, nagging my parents
for another pack of cards so I could build my collection and trade with my friends. Judging by what our customers have told us, I don’t think much has changed today.”
Each packet comes with nine collectable cards, some of which might be ‘special’ edition cards, which can be rare. Each countertop display has 36 individual packets and can be paired with collector card albums which come as 10 in a display.
“The collector card albums are a good addition to help keep the cards in good condition and to keep them organised,” says Avrahami.
Don’t miss out on this opportunity to offer your customers a unique and exciting product. Stock up on the 2023 Select Footy Stars cards and albums today and see the difference they can make to your sales.
If you’re interested in ranging the 2023 Select AFL Footy Stars cards then get in touch with Smooth Wholesales on 1300 180 770 or visit smoothwholesales.com.au.
Cadbury’s new initiative to support local clubs
Cadbury’s ‘A Cheer & A Half’ campaign celebrates famous sporting icons and moments in an effort to encourage Aussies to support their local sports clubs.
Ten special edition designs will adorn Cadbury’s iconic Dairy Milk blocks and feature stars Adam Goodes, Ash Barty, Daisy Pearce, The Wallabies and Commbank Matildas.
With almost half of all local sports clubs in Australia needing either voluntary or financial support to remain viable, Paul Chatfield, Vice President, Marketing ANZ, Mondelēz International, said now more than ever, sports clubs need help to fuel the future of sport in Australia.
“Through our specially designed Limited Edition Cadbury Dairy Milk Block packs, we are celebrating some of Australia’s most inspiring and generous moments in sport. By sharing these stories with Australian families,
we hope to inspire generosity amongst the community, show the power of connection through sport and encourage people to get more involved with their local sporting clubs,” he said.
Cadbury Australia has a long-standing connection with sports, including a partnership with the Australian Olympic Committee, a five-year partnership with the Wallabies and Wallaroos, as well as partnerships with the Hobart Hurricanes, Commbank Matildas and AFLW.
Tying in with the theme of giving, Cadbury said the athletes featured were chosen because they embody the spirit of generosity both on and off the field.
As part of the ‘A Cheer & A Half’ campaign, Cadbury will also launch a $150,000 grant program to assist community sports and volunteers further.
44 February/March 2023 | C&I | www.c-store.com.au PRODUCT RANGING
CONVENIENCE RETAILS BIGGEST EVENT
OF 2023
Want to hear from Convenience Retail Industry Leaders on the latest Global & Australian Trends?
This event is for you!
WED 29 MARCH
The Crown Melbourne Summit: 9am to 4.15pm Awards: 6.30pm to late
AACS Connect 23 event will feature our Industry Summit, with the launch of the 2022 State of Industry Report, along with a host of international & leading industry speakers sharing their insights on the convenience retail environment & how it impacts convenience retail.
The Summit will also showcase the 2023 Peter Jowett Award Supplier & Retailer winners, demonstrating our commitment to promoting our future industry leaders. Our Awards night will be a celebration of excellence with the Supplier & Retailer of the Year Awards, combined with our Store of the Year Awards.
REGISTER & PURCHASE TICKETS HERE: https://www.ewmevents.com.au/ aacsconnect23/general/Site/Register
Overhauling broken vape laws
The new year has seen some discussion – finally –of practical, workable solutions to controlling the black market in vaping products that is targeting Australian kids.
It’s something of a pity it is taking place after the closure of the government’s consultation period on future policy in the area, which is of great concern to millions of parents around the country.
The Therapeutic Goods Administration (TGA), the agency that currently oversees the regulation of nicotine vaping products (NVPs), closed its doors to public submissions on 16 January.
Those submissions will include the proposals from the Australian Association of Convenience Stores (AACS), which triggered widespread and welcome discussion on national and state television as well as radio coverage.
In contrast to so much of the commentary on vaping that is driven by medical lobby interests who warn about the risks of vaping products, our position is focused on controlling the black market via the introduction of legal, regulated, controlled sales to adults.
To be clear, we are aligned with advocates on wanting to control youth vaping. Young people should not be using these products. Where we differ significantly from the medical lobby is in what will actually achieve that goal. The incessant calls for doubling down on the existing failing policy are, quite simply, divorced from reality.
To explain why, it’s worth recapping some of the facts.
First, there are some 1.2 million adult consumers that are using nicotine vape products (NVPs) in Australia. It is a mainstream consumer product.
Second, around 90 per cent of those adults do not buy NVPs through the narrow legal channel, which requires them to seek a prescription from a GP. Federal Health Minister Mark Butler has repeatedly said that the previous government “dropped the ball” on vaping policy – an admission that the policy is failing.
Third, the complexity of legal access to NVPs has driven illicit street demand. In response, reckless operators have flooded the country with unregulated products that are the source of much of the reasonable objections from parents
and medical professionals. Many of these NVPs have colourful packaging, flavours that appeal to youths like bubble gum and fairy floss, and absolutely no controls on nicotine content or ingredients.
Having watched the current prohibition regime fail, there are many loud voices proposing even tougher measures. As retailers, we do not profess to be health experts, but we do have a great deal of expertise in consumer behaviour and effective, responsible delivery of controlled adult products.
Demand for the product is going to continue growing. The question is whether it will continue to be met by rogue dealers selling unregulated products, or by responsible, tax paying businesses selling regulated products.
The former will continue to sell to youths. The latter will not.
This is the choice that the TGA and ultimately the Health Minister must now answer when they announce their preferred response.
Allowing regulated sale to adults who are choosing to use NVPs will bring clarity and ease of enforcement, allowing authorities to focus their enforcement efforts.
In contrast, enforcement of the tougher restrictions proposed elsewhere will require a mass mobilisation of Border Force and policing resources. This will not just be costly but as we see with other illicit products that are freely available on the streets – ultimately futile.
Following the model proposed by retailers will achieve the public policy goal of strangling the black market supply to consumers and youth. It will allow the government to raise taxes, pursue effective enforcement, and give consumers confidence about the products they are using.
A policy decision that doubles down on the current system, that everyone knows is failing, will simply lead us back here again wondering how we prevent youth access.
Our proposed alternative follows the effective policies of other OECD nations where vaping doesn’t create nearly as much angst as a policy issue. It is the reasonable, practical, and workable path – and it will support everyone’s shared policy goal of cutting off the current easy access for Australia’s youth. C&I
“ Our position is focused on controlling the black market via the introduction of legal, regulated, controlled sales to adults.”
– Theo Foukkare
THEO FOUKKARE
CEO AACS
46 February/March 2023 | C&I | www.c-store.com.au OPINION
Theo Foukkare, CEO, AACS, discusses the most effective route to strangling the black market supply of nicotine vapes to consumers and youth.
AUSTRALIAN CONVENIENCE – the role of the local independent
As I write, the broader Australian retail sector is feeling uncertain, with evidence of interest rate rises beginning to be felt. Not to mention the challenges that corporations like Amazon, large company-owned retail, and even home delivery companies provide. It can seem at times that the deck is stacked against the independent retailer. While the challenges retailers face are undeniable, as an industry, we have a group of retailers who continue to adapt and thrive in the face of many challenges – our Australian convenience independent retail community.
The many benefits of passionate independent convenience retailers are visible both socially and economically right across Australia. The AACS State of the Industry 2022 Report indicated that independents represent approximately 45 per cent of all convenience stores across Australia, with a high share of those being regional and country sites. There’s no doubt these sites are the backbone of many Australian local economies, delivering jobs, community based purchasing and services.
I have a deep respect and appreciation for all convenience retailers, and maybe I’m ‘slightly’ biased but I want to celebrate our independent retailers. Local independent convenience retailers not only contribute significantly to our economy, but they also play an integral role in their local communities as just mentioned. They contribute to community spirit through sponsorships and other forms of support and form a part of many daily shopper rituals from fuel to food and to coffee. And because they are local and community centric, they have a good chat with many shoppers too, which for some shoppers is all they really want.
While they might not be able to mirror chain stores in terms of resources, Australia’s independent convenience retailers are sharp in other areas such as store cleanliness along with speed, service, and friendliness of service. Australians can be very loyal local shoppers, who understand the value of supporting independent retailers in their communities, and this has benefits that are far reaching. On the other hand, retailers understand what motivates and appeals to their local shoppers, keeping ranges of products that suit, along with delivering shopping experiences with a personal touch.
Many times we have read and spoken about how our demographics are changing, particularly among younger shoppers who are moving away from big brands and towards locally-owned and staffed shopping options. We’ve seen these changes rapidly influence store design, with many independent retailers now looking and operating like cafes or QSRs. In many cases, independents are leading the charge here too.
We shouldn’t underestimate the contribution independent convenience retailers make. They’re part of the fabric of our local communities, while also delivering innovation that is seen globally as world class. The Australian convenience retail landscape would be a very different place without independents – so the more we do to support all our retailers, but most importantly our independent ones, the more Australian shoppers benefit.
Until next time, Darren
Park
DARREN PARK CEO
United Convenience Buyers
“ Local independent convenience retailers not only contribute significantly to our economy, but they also play an integral role in their local communities.”
– Darren Park
Darren Park, CEO, United Convenience Buyers, discusses why independent retailers are the backbone of Australian communities.
48 February/March 2023 | C&I | www.c-store.com.au OPINION
The many benefits of passionate independent convenience retailers are visible both socially and economically right across Australia.
ANDREW POORE
General Manager Sales ANZ Pacific Optics
FUELLING GROWTH
Andrew Poore, General Manager Sales ANZ, Pacific Optics, discusses the key to sustained growth in the petrol and convenience channel.
Firstly, I would like to wish all the readers a Happy New Year and encourage everyone to jump into 2023 with open eyes as the convenience channel continues to evolve at significant pace.
I am old enough to have been a consumer in the ‘chocolate bar and cola’ era and when loyalty started to be created with collectibles in the late 1970s in the UK. I got to experience national petrol stations (owned by bp) launching Smurf Figurines (Smurf comic characters) as the first kid friendly collectables. This was early ‘pester power’ and the market went crazy for these little figurines. Family driven fuel brand loyalty had arrived in the UK and the traditional gift with purchase (GWP) of branded drinking glasses had been challenged.
Now being part of the convenience channel for more than 20 years, I am charged with helping create brand loyalty around the products that we supply at Pacific Optics and driving loyalty into all energy and convenience retailers.
The grocery channel has done a great job with collectables around loyalty. Last year, we saw both ‘FixEms’ and ‘Magical Builders’ and I expect we will see more this year. How will the likes of metaverse and TikTok be used in the next campaigns? Can convenience be that blend of ‘real’ and ‘virtual’ and stay relevant? I certainly believe we can.
As these lines between grocery and convenience get more blurred, how do we stay relevant and create stronger loyalty, not only to each banner but to the channel? We must remind ourselves that convenience is still convenient, that is ultimately our ticket to sustained growth. Convenience is the largest channel in Australia
with more than 7,000 outlets, we serve gourmet food, great coffee, grocery items and a great selection of general merchandise. Many of our sites offer 24/7 service and even support delivery. We offer many forms of energy from retail automotive fuels and oils, electricity, LPG, and hydrogen.
We are now in an era where staff shortages will be common. Will the ever-changing face behind the counter effect customer loyalty? Can interactive customer automation help or hinder engagement? What do Gen Z and Alpha expect from this channel? So many questions and very little answers. We still don’t know if we could power the targeted amount of EVs in the planned timeline of federal governments. What does the future of the service station look like? Personally, I believe we will see noncorner energy sites disappearing and corner sites truly becoming the satellite collection of groceries, dry cleaning, parcels, pharmaceuticals, and alcohol, in addition to energy for transportation. Non-fuel stores will offer these, obviously without the fuels.
How do suppliers play their part? I expect to see a greater expectation on suppliers in their education to retailer staff and automation systems as well as purchased data driven decisions to improve shopper experience. Ultimately, we are convenient, we are local, we offer loyalty through discounts and memberships. These have helped the channel become more value driven and become the retail offer of choice. The opportunities are expansive, and I look forward to being part of the transformation.
Andrew Poore is General Manager Sales for Pacific Optics in Australia and Signature Marketing New Zealand. He is also a committee member of NZACS. C&I
“ We must remind ourselves that convenience is still convenient, that is ultimately our ticket to sustained growth.”
– Andrew Poore
50 February/March 2023 | C&I | www.c-store.com.au OPINION
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Overpriced outgoings in retail leases
Marianna Idas, Principal at eLease Lawyers, describes what to look out for with outgoings in retail leases.
Don’t overpay for outgoings under your retail lease. It is important to understand what the landlord is charging and if they can charge these costs.
Just because a lease states a tenant must pay for certain outgoings does not mean the landlord can claim these costs. Each state has legislation in place to protect the retail tenant including what outgoings the tenant can be requested to pay and which are prohibited.
Outgoings can include:
• Expenses attributable to the management, operation, maintenance or repair of the retail shop building or land.
• Charges, premiums, levies and rates or taxes payable by the landlord.
MARIANNA IDAS
• Fees charged by a landlord for services provided by the landlord in connection with the management, operation, maintenance or repair of the retail shop building or land.
• GST paid by the landlord.
Prohibited outgoings
In most states, a tenant is not required to pay for the following items:
• Contribute to outgoings not specifically referrable to the shop. That is, the shop must receive a benefit resulting from the outgoing.
• Cost of any finishes, fixtures, fittings, equipment or services in or for the shop unless the tenant’s requirement to contribute was disclosed in the landlord’s disclosure statement.
• Capital expenditure.
• Interest and charges incurred by a landlord on borrowings.
• Rent and other costs associated with land not used by or for the benefit of the shopping centre.
• Land tax (variable depending on the state).
• Management fees (variable depending on the state).
• Contributions to a depreciation or sinking fund.
• Insurance premiums for loss of profits.
• Excess payments in relation to a claim on the landlord’s insurance policy for the centre or building.
• Payment of interest and charges on amounts borrowed by the landlord.
• Landlord’s contributions to merchants’ associations and centre promotion funds.
What should the lease state about outgoings?
The lease should specify the following:
• What outgoings are payable.
• How the outgoings will be determined.
• The apportionment to the tenant; and
• How the outgoings may be recovered.
How is the proportion of outgoings determined?
The proportion of outgoings payable by a tenant is determined based on the tenants who enjoy or share the benefit resulting from the outgoings.
Estimate and statement of outgoings
The requirement for each state varies but, in most cases, the landlord must provide the tenant with the following:
1. A disclosure statement before the lease is entered into which specifies the outgoings payable.
2. They must also give the tenant an annual estimate of the outgoings.
In most cases, the written outgoings statement must be accompanied by a report prepared by a registered company auditor confirming whether the statement correctly states the landlord’s expenditure and whether or not the total amount of estimated outgoings exceeded the total actual outgoings.
Adjustment of outgoings
An adjustment for outgoings must be made within a specified period (which varies in each state) after an outgoings statement is issued to the tenant. That is, the tenant pays for the gap, or the tenant is reimbursed for overpaid outgoings.
Promotion and advertising outgoings
This can only be charged if the landlord makes available to the tenant its marketing plan and shows where the costs have been spent.
In conclusion, it is advisable for tenants to have a lawyer specialising in retail leases review their lease so that they can be informed of what outgoings are payable and which are prohibited so that they avoid paying more than they should. C&I
Principal eLease Lawyers
“ It is advisable for tenants to have a lawyer specialising in retail leases review their lease so that they can be informed of what outgoings are payable and which are prohibited.”
– Marianna Idas
52 February/March 2023 | C&I | www.c-store.com.au OPINION
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METRO HITS THE HUNTER
Held over three fun-filled days at The Crowne Plaza Hunter Valley, Metro Petroleum’s 2022 End of Year Conference was not to be missed. The event, which ran from 6-9 December 2022, featured plenty of opportunities for retailers and suppliers to mingle and network with head office, while also offering a plethora of fun-filled activities, with everything put together wonderfully by the Metro team and the Dib family.
The first day of the conference saw speakers from Asahi Beverages, Madison Marcus, Till Payments, Frucor Suntory, Impulse Retailing, Bega, Vend Data Media Solutions (VDMS), Metcash, and Gilbarco, who provided business updates and solutions.
Attendees were then treated to an address from keynote speaker, former captain of the Australian cricket team, Steve Waugh. Waugh spoke about his life, both during and after his cricket career, and discussed what went into the making of his photography book, The Spirit of Cricket – India.
Ending the conference was an auction of a selection of Waugh’s personal memorabilia, including signed cricket bats and match-worn gloves.
Following a casino-themed dinner on the first night, the second day included a visit to local Metro Petroleum sites, in which site owners provided insights into the running of their stores.
The second night was capped off perfectly with a live band and a sidesplitting comedy routine by Tahir Bilgiç and Rob Shehadie, stars of shows such as Pizza, Housos, and Swift and Shift Couriers.
The third day commenced with team-building activities, sponsored by Frucor Suntory, in which participants were split into groups to complete various activities, record funny videos, and show their wits with IQ tests.
Activities included archery, cornhole, puzzles, and digital skeet shooting, before the decider in which teams had to attempt to build the tallest structure possible using just short lengths of bamboo and sticky tape.
Winners of Metro Petroleum’s Retailer and Supplier Awards were announced at a gala dinner later on that evening.
The dinner, which was sponsored by Asahi Beverages, provided the perfect opportunity for retailers and suppliers to come together, enjoy a meal, celebrate the successes of Metro over the past year, and of course congratulate the winners of the Retailer and Supplier awards.
Metro Petroleum headed to the New South Wales Hunter Valley for its 2022 End of Year Conference.
The group at Metro Petroleum in the Hunter Valley.
54 February/March 2023 | C&I | www.c-store.com.au INDUSTRY NEWS
Attendees enjoyed addresses from Asahi Beverages, Bega, Frucor Suntory, Gilbarco, Impulse Retailing, Madison Marcus, Metcash, Till Payments and Vend Data Media Solutions.
Retailer of the Year Awards:
NSW Store:
Metro Petroleum Punchbowl
VIC Store:
Metro Petroleum Braybrook
QLD Store:
Metro Petroleum Greenbank
WA/ACT Store:
Metro Petroleum Fyshwick (Barrier St)
Supplier of the Year
Awards:
Beverage Supplier
Asahi Beverages
Snack Supplier
Smith’s
Confectionery Supplier: Nestlé
Food Supplier:
Vili’s Pies
Direct to Store
Distributor:
Asahi Beverages
General Merchandise Supplier: G&L Wholesalers
John Dib, Managing Director of Metro Petroleum, addressed the group, thanking everyone for their support over the past year, before Andrew Sylvester, Group Buying Manager of Metro Petroleum, thanked those in attendance and gave special mention to supplier partners.
“Our supplier partners have reacted very quickly to our urgent needs. When a new site comes up, or we take over another business, you guys are always there to help us. On behalf of our team, I’d like to thank all the support you give us.”
Sylvester then announced the 2022 Metro Petroleum Retailer Award winners. Winner of NSW Store of the Year was Metro Petroleum Punchbowl, with the Tura Beach and Croydon Park stores the other two nominations.
Winner of Victorian Store of the Year was Metro Petroleum Braybrook, while Broadmeadows and Truganina were the two other nominees. Winner of Queensland Store of the Year was Metro Petroleum Greenbank, with Fernvale and Eagleby rounding out the nominations.
Metro Petroleum Fyshwick (Barrier St) was announced as winner of the WA/ACT Store of the Year, with Geraldton and Mitchell the other two nominees.
Moving on to supplier of the year, Asahi Beverages won Beverage Supplier of the Year; Smith’s took home Snack Supplier of the Year; Confectionery Supplier of the Year was won by Nestlé; Food Supplier of the Year was Vili’s Pies; GM Auto Supplier of the Year went to G&L Wholesalers; Direct to Store Distributor of the Year went to Asahi Beverages.
Finally, winner of the Account Manager of the Year went to Dean Sultana from Vili’s Pies. C&I
“
Our supplier partners have reacted very quickly to our urgent needs. When a new site comes up, or we take over another business, you guys are always there to help us.
”
– John Dib, Managing Director, Metro Petroleum
Steve Waugh.
Adam Exposito, Asahi Beverages.
Tahir Bilgiç.
Delegates had a great time at the casino themed dinner.
Digital skeet shooting was one of the activities attendees participated in during the team building activities, sponsored by Frucor Suntory.
February/March 2023 | C&I | www.c-store.com.au 55 INDUSTRY NEWS
Julia Maskell, Thomas Oakley-Newell, Deb Jackson and Lisa Schilling-Thomson.
Ampol’s ‘Glampol’ campaign launches to support LGBTQIA+
Ampol has launched its ‘Glampol’ campaign to help raise awareness of LGBTQIA+ inclusion and drive donations for its Foundation Charity Minus18.
The campaign took place throughout February with Ampol Coogee and North Bondi getting a rainbow makeover and playing host to key Glampol activities, including a ‘Drag Baes Window Wash’ in which Ampol employees were joined by drag queens to wash customers’ windows.
Matt Halliday, Managing Director and CEO of Ampol, said Ampol is dedicated to inclusion across its workforce, operations, and broader community as part of its established diversity strategy.
“I would like thank members of our Rainbow Alliance employee networking group for their ongoing support of our work in this space, including supporting our brand and retail teams to bring this campaign to life.
“We encourage all of our loyal customers to get involved and experience the fun at our Glampol activations and to help us raise funds for Minus18, an organisation that provides vital support to improving the mental health and wellbeing of LGBTQIA+ youth across Australia.”
A drive for in-store donations for Minus18 were put in place across 10 Sydney CBD Ampol Foodary or Ampol Woolworths MetroGo locations: Coogee, North Bondi, Alexandria, Lane Cove West, Manly, Neutral Bay, Randwick, Rosebery, South Coogee and Woollahra.
Ampol will also be sponsoring the Australian Queer Aquatics (AQuA) Festival happening across Sydney throughout February and March.
The festival, which commenced on 11 February, will take place across three different pools in Sydney’s inner west and city as well as Manly Cove, and comprises of five sporting competitions, including swimming, water polo, ocean swimming, beach water polo and a finals festival.
Viva Energy gets green light for $300m Coles Express acquisition
In a bid to create Australia’s largest fuel and convenience network, Viva Energy has approval to proceed with the $300 million deal to acquire 710 Coles Express sites nationally.
Given the green light from the Foreign Investment Review Board and the Australian Competition and Consumer Commission (ACCC) in January, the deal will see Viva take over the operation of the retail convenience business, with the Coles Express brand to be phased out over the next 3.5 years.
Scott Wyatt, CEO of Viva Energy, said the acquisition would allow the fuel giant to extend its reach to create an integrated fuel and convenience network built to grow with demand.
“This is an exciting step for Viva Energy that will enable us to further extend our network, invest in new and innovative convenience offers across our stores, and enhance our loyalty and digital programs to simplify the way our customers transact with us.
“In the future, customers will also be looking for convenient electric vehicle recharging options while they are on the road, and in time we can also expect to see hydrogen refuelling facilities at major highway service centres,” he said.
Steven Cain, CEO of Coles Group, said the deal is a positive one for Coles, Viva, the public and Coles Express employees and shareholders.
“Viva Energy is well placed to make the most of opportunities to grow the Express business into the future, while we will strengthen our focus on our omnichannel supermarket and liquor businesses and our ambition of becoming Australia’s most sustainable supermarket group,” he said.
Approximately 6,000 Coles Express team members and support centre staff will be offered roles with the Viva Energy retail business as part of the deal.
The acquisition is due to be finalised in the first half of 2023.
56 February/March 2023 | C&I | www.c-store.com.au INDUSTRY NEWS
Australia’s leading self-service micro market raises $5 million
Morsl has announced it has raised $5 million in a series A capital raise, with the funds to be used to accelerate the company’s expansion plans.
The new funding raises Morsl’s valuation to $14.4 million and will be used to execute its current pipeline of over 20 new sites across Australia, hire key management positions, and to accelerate its growth nationally.
Since launching in 2018, Morsl has offered its curated range of over 1000 fresh food, better-for-you snacks and drinks via a fully automated, self-checkout marketplace at 13 sites across NSW and Victoria in warehouses and logistics companies, including Amazon and Officeworks.
Karla Borland, CEO of Morsl, said when the pandemic hit, they had to change business focus from the corporate to the industrial sector, which remains Morsl’s priority today.
“Health and wellbeing are significant issues with blue collar workers often facing long, physical work shifts, and limited access to healthy food options in and around their workplace.
“Our significant pipeline shows there is high demand from organisations looking to improve their employee productivity, satisfaction, engagement, and retention in a tight labour market. This new capital will allow us to further raise awareness amongst Australian employers to show how Morsl can provide them with a workable wellness solution for their people.”
The company now offers over 5000 employees access to healthy and fresh food options, and recently signed a lease to an office/warehouse in Marrickville, Sydney to accommodate the planned business growth.
The raise includes an investment of $4.3 million from Cairns-based family investment office The Chapman Group, led by Chairman George Chapman AO and Director Dr Ken Chapman.
The Chapman Group has active businesses in tourism, real estate, and agriculture, and a diverse investment portfolio including listed and private equity and venture capital.
NightOwl raises more than $36,000 for the Children’s Hospital Foundation
NightOwl’s inaugural fundraising campaign has raised $36,826 for sick kids across its 80 stores nationwide.
The funds raised will go to helping kids like six-year-old Patrick Fleming, who suffers from multiple joint deformities.
Since he was six months old, Fleming and his family have been travelling to Brisbane every three months to undergo torso plaster castings and regular surgical procedures.
Temporarily relocating to Queensland in January 2021, Fleming’s family have come to rely on the Children’s Hospital Foundation for support while they’re away from home.
Lyndsey Rice, CEO of the Children’s Hospital Foundation, said the funds raised by NightOwl would help the not-for-profit organisation continue to change the lives of sick children requiring hospitalisation.
“Each breakthrough in research, investment into new equipment or day brightened by our patient and family support team – that is because of the support of our partners like NightOwl, who allow us to continue to help sick and injured kids get better.
“We are thrilled to receive this generous donation from the NightOwl community and know the funds will make a huge difference for sick kids like Patrick both today and into the future,” said Rice.
Glenys Tristram, National Marketing Manager at NightOwl Convenience, said that NightOwl is passionate about supporting the communities it’s a part of.
“As an organisation, we are extremely passionate about supporting and adding value to the communities we live in and serve.
“We are so thankful to each and every customer who donated across the last few months and allowed us to live up to this value –we look forward to continuing to build the legacy of OwlGood well into the future,” said Tristram.
February/March 2023 | C&I | www.c-store.com.au 57 INDUSTRY NEWS
Patrick Fleming suffers from multiple joint deformities and will benefit from NightOwl's donation.
OTR creates 70 new local jobs by opening new site in Virginia, South Australia
OTR has opened a new 24-hour store in Virginia, South Australia, creating almost 70 new local jobs and ensuring premium bp fuel is available to locals, day and night.
The new OTR Virginia store offers locally roasted barista-made C Coffee, Krispy Kreme doughnuts and New York-style hot dogs –Moe’s Dog & Shake is also available through the drive-through.
The store has a specially curated range of supermarket essentials, fresh fruit and vegetables, BBQ gas, and OTR brands OhJ! and EAT providing fresh drinks, pastries, and sandwiches. A Hungry Jack’s drive-through will also operate daily from 6am to 11pm.
The opening of OTR Virginia has created nine new OTR jobs and more than 60 Hungry Jack’s jobs.
Mark Smith, Convenience Chief Operating Officer, said OTR aims to give guests the highest quality in convenience retailing with its award-winning fuel and food offers.
“A new OTR store in Virginia affirms our commitment to investing in South Australia, and creating new local jobs, and becoming an integral part of the local community,” he said.
As an Australian family business operating for more than 30 years, OTR has more than 178 stores and employs 6,500 people across South Australia, Victoria, and Western Australia.
Proposed sugar tax slammed by the Australian Beverages Council
The Australian Medical Association’s (AMA) proposal for a tax on sugary drinks has been met with opposition from the Australian Beverages Council (ABCL).
The AMA has recommended the federal government implement a tax of 40 cents per every 100g of sugar that manufacturers add to drinks, meaning a 16 cent increase to the price of a regular can of soft drink.
Dr Danielle McMullen, Vice President of AMA, said that over a 25-year period they estimate this would result in 16,000 fewer cases of type 2 diabetes, 4,400 fewer cases of heart disease, and 1,100 fewer cases of stroke.
“It would also generate revenue of up to $814 million annually which we say should be spent on preventative health measures.”
Geoff Parker, CEO of the ABCL, said that dietrelated disease is complex and caused by many factors, and all sectors of the shopping trolley must play their part in helping Australians make healthier choices.
“In 2023, we need innovative, real-world evidence-based solutions to address lifestyle health challenges rather than slapping another tax on the weekly shop of Australians. The drinks industry urges other categories in the shopping trolley to make their own commitments and play their part in helping people choose healthier options.”
Parker said that the recent 2022 Sugar Reduction Pledge report found that for the first time in Australia, no and low sugar options account for half of all sales, up from 47 per cent on the previous year.
“This reinforces previously published research on more than two decades of drink consumption in Australia, which revealed a long-term shift in
Australians’ non-alcoholic drink choices over the period, including that Australians now drink almost five times more bottled water than they did two decades ago.”
McMullen claimed that Australia was becoming the odd one out in the world by not adopting a tax on Sugar-Sweetened Beverages (SSB).
“It’s no wonder 85 governments across the globe are choosing to tax sugary drinks and other products this way, because the evidence is showing it’s effective at reducing consumption of these products and raising revenue, so why not in Australia?
“Australians drink enough sugary drinks to fill 960 Olympic swimming pools each year. We need something to help people choose water instead.”
Parker pointed to the UK and other countries as evidence that their beverages have not significantly lowered obesity levels, and the UK’s sugar tax has made a difference of only three calories per person per day.
“A University of Cambridge-led study found no reduction in weekly household purchases of sugar sweetened beverages, with consumers seeking out cheaper, non-taxed beverages. The study also identified a key outcome of the sugar tax being a 10 per cent reduction in the sugar content in taxed drinks – an outcome already vastly exceeded in Australia by ABCL’s Sugar Reduction Pledge.”
58 February/March 2023 | C&I | www.c-store.com.au INDUSTRY NEWS
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Dan Armes Founder of ServoPro
COMMON PETROL STATION RISKS (and how to mitigate them)
Insurance is one of those aspects that petrol station owners often don’t think about until they need to make a claim. Quite often, it is then too late to update your insurance, check you are adequately covered and that all policies have been paid and are up to date.
We have found that many ServoPro members are not covered for the right type of risks, their policy doesn’t suit their business, or they are paying too much in premiums because they are over-insured. As all petrol station operators would know, we do business in a highly regulated and complicated industry with unique risks.
Many insurers don’t understand the industry and therefore provide policies that aren’t up to scratch. One example of this is dangerous goods. Many insurers don’t understand the risks associated with businesses that sell dangerous goods. This results in insurance policies that don’t cover the risks associated with running a petrol station.
I always advise our members to speak with an insurance broker who understands the industry to check they are covered for all the risks associated with their business. It makes good business sense to check your policies every year because if the worst-case scenario happens, you want to ensure you are covered. After all, that’s why we all have insurance.
The top three areas we see ServoPro members needing to make claims on their insurance are impact damage, fuel contamination, and theft/burglary.
Impact damage can range from cosmetic surface damage to more serious damage where staff and customers are at risk. Most petrol station operators have had customers who have run into a fuel pump or driven off with a nozzle still in a vehicle. This can cause thousands of dollars’ worth of damage, and without the right insurance cover, the petrol station owner can be left to cover the costs.
Fuel contamination is every petrol station operator’s worst nightmare. It is best practice to check the integrity of your fuel regularly. Fuel can become contaminated for a variety of reasons. We have seen occurrences of customers filling their vehicles with contaminated fuel and breaking down in the driveway or down the road. In some cases, there have been up to 30 vehicles affected before the contamination is detected. The cost of this can run into hundreds of thousands of dollars. Petrol station operators must be covered for this risk under their insurance policy.
Theft and burglary are a major problem for petrol stations. With large amounts of cash being held on premises and the value of products such as cigarettes, petrol stations are an easy target for theft. Many ServoPro members have realised
Dan Armes, Founder, ServoPro, offers advice on how petrol and convenience operators can ensure that they are adequately insured.
60 February/March 2023 | C&I | www.c-store.com.au PETROL NEWS
they are not covered for the theft of cigarettes after we have examined their insurance policies.
At ServoPro, 95 per cent of the insurance policies we look at need to be reviewed because they either don’t cover the risks associated with a petrol station or the business owner is paying excessive premiums for insurance they don’t need.
Unfortunately, armed hold-ups are becoming more and more frequent in the petrol and convenience industry. We have seen it many times where petrol stations are not covered for the theft of cash. The theft of cash is not included in a generic insurance policy and is a separate section that must be included.
Business owners need to be aware that they must also follow certain steps to make sure they are complying with their insurance policy. For example, fire extinguishers needing to be tested every six months by a licenced fire company. They must be in good working order because if there is a fire and a claim needs to be made without the fire extinguishers having been regularly checked, your insurance claim may be void under the fire section.
When insuring a petrol station, it is important to cover both internal and external glass, which also falls under a separate section of your policy. Keep in mind there is usually an $8,000 limit to cover signage.
Environmental insurance is very important for petrol station owners. Many of our members have reported that the EPA in conjunction with local councils, are conducting site audits to check on policies and procedures. In recent figures contained in a NSW Auditor General report, it was revealed that 770 petrol stations were actually or potentially contaminated. One of our ServoPro members has had to close his business for six months while contamination issues are rectified.
With environmental insurance, petrol station owners should check their policies to ensure this is included. In Australia, we have many old sites with old fuel tanks, which could be leaking. If contamination occurs, the cost to fix the issue and the impact of the business being closed is a risk that must be insured against.
It’s also important to lodge any claims as soon as an incident occurs. The quicker the claim is lodged, the quicker the insurer can work to pay your claim.
So, should you organise your insurance directly with an insurance company or use a broker? I always advise our members to use a broker as they do all the heavy lifting for you. They not only help you find the best deal, check you are adequately covered, and choose the best insurance products, but they will process any claims that need to be made on your behalf. The best thing is that this costs you nothing. When choosing a broker, make sure you use one that understands the unique risks associated with the petrol and convenience industry.
Make it a priority to check your insurance policies. Check you are covered for all the key areas of your business, including fire, theft, money, business interruption, glass, liability, and machinery breakdown. If something happens and you need to make a claim, you don’t want to find that you have been paying for an insurance policy that doesn’t cover you. If you are confused by your policy or are having trouble comparing policies, feel free to reach out to ServoPro for free advice. C&I
“
The top three areas we see ServoPro members needing to make claims on their insurance are impact damage, fuel contamination, and theft/ burglary.”
– Dan Armes, Founder, ServoPro
Many insurers don’t understand the industry and therefore provide policies that aren’t up to scratch.
February/March 2023 | C&I | www.c-store.com.au 61 PETROL NEWS
If fuel contamination occurs, the cost to fix the issue and the impact of the business being closed is a risk that must be insured against.
Ampol announces industry first partnership with SEA Electric
Ampol has partnered with Australian electric vehicle (EV) manufacturer SEA Electric to support the transition to zero-emissions commercial EV technology.
Through the partnership, SEA Electric and Ampol will work together to develop flexible, sustainable, and seamless charging options to support the uptake of lower emissions commercial vehicles in key parts of the transport sector.
The partnership will also focus on building an integrated charging solution for SEA Electric customers on the road at Ampol forecourts, at destinations and solutions at the workplace.
James Myatt, Ampol’s General Manager, Energy, said Ampol is committed to developing an open access national charging network as well as home and business charging solutions to ensure vehicles can be on the road whenever needed.
“Ampol is evolving to provide a range of fast and reliable charging solutions. We know our business customers are looking for lower emissions solutions and want to ensure their investment in commercial electric vehicles can be supported with efficient and reliable charging technologies,” he said.
For SEA Electric, the partnership provides flexible charging options for electric truck owners, with many Ampol customers moving into the EV space in cars and now with light trucks.
Bill Gillespie, SEA Electric President, Asia Pacific Region, said that both companies are leading the country in the transition to sustainable transport.
“Through this collaboration, we are shining a light on the fact that electric powered truck fleets can be operationally flexible by accessing convenient charging infrastructure through the AmpCharge network.
“At SEA Electric, we are building an entire customer led ecosystem to simplify the transition to electrification, with an SEA Electric trained
national dealer network for sales and service, full factory warranty, 24/7 support and roadside assistance, and a range of charging options at base or on the road.
“Ampol should be applauded for taking the lead with its future energy and mobility strategy, and we look forward to working together into the future on expanding the initiative.”
Caltex named as Co-Major Partner of the Brisbane Lions AFL team
Caltex has announced it has signed on as the new Co-Major Partner of the Brisbane Lions for at least the next two years.
To celebrate the new partnership, Caltex hit the road with new star midfielder Josh Dunkley, to win the hearts of footy fans in Queensland by giving away five free tanks of fuel to unsuspecting drivers at Caltex’s new service station at Crestmead in Brisbane.
Dunkley, who will wear the number five jersey for the Brisbane Lions, took the opportunity to speak to the media about the partnership and his new place on the team.
“It’s fantastic to have a brand like Caltex on board with the Club, and a special feeling to be joining the Lions together at the same time as the Lions enter a new era,” he said.
“I am really focused on becoming a big game player for the Lions in 2023 and really adding to the great list the Club has put together of experienced and emerging talent.
“The boys are working hard this pre-season at our new facility (Brighton Homes Arena in Springfield Central) I can’t wait to take the field representing this great Club, Caltex and all of our partners.”
Caltex, a global brand owned by Chevron, has a long and proud history in Australia.
Chevron Australia Downstream General Manager, Lorne Chambers, said it was exciting
to partner Caltex with the Brisbane Lions as they look to build on their 2022 success.
“The Lions are an integral part of the Brisbane community and much like the Club we have big growth plans for the Caltex brand in 2023,” Chambers said.
“I look forward to an exciting and successful relationship that brings together two great brands in the Lions and Caltex.”
Brisbane Lions Chairman, Andrew Wellington, said the partnership was important for both Caltex and the Lions, and opens the door for potential future opportunities.
“We are delighted to have the Caltex brand joining the Brisbane Lions at a pivotal time for the Club, as we continue to evolve on and off the field,” he said.
“A Co-Major Partner plays such an important role for any Club, and we look forward to working closely with Caltex for at least the next few years.”
L-R: Andrew Wellington, Josh Dunkley and Lorne Chambers.
62 February/March 2023 | C&I | www.c-store.com.au PETROL NEWS
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Ampol’s Lytton Refinery set for upgrade to deliver cleaner fuel
Ampol’s Lytton Refinery in Brisbane is set to be upgraded to deliver lower fuel emissions and improve fuel security.
The Ampol Future Fuels Desulfurisation Project was declared by Acting Premier Dr Steven Miles as a prescribed project and crucial infrastructure project on the recommendation of the Co-ordinator-General.
Dr Miles said that this upgrade will improve fuel security and efficiency in Queensland and nationally, fuelling our industry.
“Importantly it will help deliver cleaner, lower emissions fuel, which is better for the environment.
“This will ensure the Lytton Refinery continues to operate long into the future, enabling retention of high-skill manufacturing jobs in Queensland.”
The project will create around 300 construction jobs and safeguard the ongoing jobs of approximately 450 employees and 400 contractors.
Andrew Brewer, Executive General Manager, Fuel Supply Chain, Ampol, said Ampol is eager to get the Ampol Future Fuels Desulfurisation Project finalised and underway so they can move to the next stage of the refinery’s life.
“I know approvals associated with the project are complex and need to be obtained within tight timeframes. We would like to thank the Queensland Government for their ongoing support, and we look forward to working with them as we finalise our own approvals and commence work on this project.”
Joan Pease, Member for Lytton, said the project will include plant upgrades, expansion and associated works on land owned by Ampol, within and adjoining the existing refinery.
“The refinery has been operating in Lytton for over 50 years, supporting jobs and industry in our community.”
Tritium receives record-breaking order of EV chargers from bp
Tritium has revealed that bp has placed the largest ever order of EV chargers from a single customer in Tritium’s history.
The chargers will be used for fleets and the general public in Australia, the UK, USA, and Europe, and forms part of a multi-year contract between the two companies for chargers and related services to support bp’s growth in electrification.
Richard Bartlett, CEO at bp pulse, said as bp’s infrastructure grows worldwide, Tritium is a natural choice.
“Tritium has a global presence and industry-leading DC fast charging technology – we’re looking forward to putting these chargers to work across three continents.”
The order includes a mix of Tritium’s 50kW RTM and 150kW PHM chargers, with the RTM charger being one of the most advanced DC fast chargers on the market, and the company’s first modular charger.
The chargers for bp’s Australia markets are expected to be manufactured in Tritium’s Brisbane factory, which has a capacity of 5,000 units per year.
Jane Hunter, CEO of Tritium, said Tritium is grateful to the bp team for their order and looks forward to working together to support bp pulse as its builds a reliable, accessible fast charging network around the world.
“As a result of bp’s order, Tritium’s industry-leading fast EV chargers will make it easier than ever before for commercial and everyday drivers to join the e-mobility transition.”
64 February/March 2023 | C&I | www.c-store.com.au PETROL NEWS
Image credit: Tritium DCFC Limited.
Bp makes $20 million investment in solar provider 5B Holdings
Bp ventures has made a $20 million investment in 5B Holdings, an Australian renewable company with technology that enables rapid deployment of solar power at scale.
Bp ventures was set up more than 10 years ago to identify and invest in private, high growth, game changing technology companies, accelerating innovation across the entire energy spectrum. Since then, bp has invested more than $1 billion in technology companies with more than 250 co-investors.
Bp ventures makes strategic equity investments across a portfolio of relevant technology businesses including advanced mobility, low carbon and digital.
The $20m investment in 5B will support bp’s renewable energy transition growth engine and is another strand of its multi-energy vector country strategy that will support the decarbonisation of energy in Australia.
The deal closes 5B’s $55 million Series B funding round, which was co-led by existing investors The AES Corporation and Artesian.
5B’s leading solar technology, the 5B Maverick, consists of up to 90 solar panels mounted on specially designed frames that can be unfolded and installed at speed. To date, 5B has deployed its technology across more than 100 sites worldwide with total generating capacity of over 60MW.
The capital injection from bp ventures will support 5B’s technology development and growth. It will also accelerate 5B’s international expansion, and its plans to establish a manufacturing and assembly hub in North America.
Johnathan Stone, Principal at bp ventures, who will join the 5B board of directors said 5B’s innovative solar technology can deliver low-cost power generation at speed, helping to meet rising electricity demand.
“We are delighted to be making an important contribution to 5B’s Series B funding round and look forward to helping them accelerate their expansion through collaboration with various parts of our business.”
Bp’s gas and low carbon energy business and 50-50 joint venture, Lightsource bp, together with 5B will explore the best opportunities to collaborate on the deployment of 5B’s Maverick technology on future bp and Lightsource bp projects. All three companies will continue to work on deploying solar energy to meet the rising demand for reliable, accessible, and affordable electricity.
Chris McGrath, 5B Co-Founder and CEO, said it’s encouraging to see bp’s transition to renewable energy and 5B looks forward to helping accelerate that effort.
“Collaborating with bp ventures and the broader bp businesses offers us a wealth of global commercial and operational expertise. It presents a great opportunity to deploy our 5B Maverick technology across a range of global markets. The backing of such an active and experienced venture capital team is a powerful validation of our technology and ability to support bp as it transitions to an integrated energy company.”
Chevron Australia donates $1 million to Kimberley flood relief
Chevron Australia has donated $1 million to emergency flood relief and recovery efforts in Western Australia’s Kimberley region, following severe flooding caused by ex-Tropical Cyclone Ellie.
The company has also pledged to match employee donations dollar-for-dollar with all money raised supporting communities in the region who have experienced destruction and significant property damage.
Chevron Australia’s Acting Managing Director Kory Judd, said Chevron Australia is committed to supporting Australian communities, particularly in times of need.
“We have all seen the devastation that has occurred in the
Kimberley from the flooding, and our thoughts are with the community members who have been impacted, especially the regional, remote, and indigenous communities who have been severely affected or become isolated.
“On behalf of the company and our workforce, I would also like to send my gratitude to the community members and emergency workers who have courageously battled treacherous conditions to protect lives and property.
“We hope our contribution can aid in the provision of immediate emergency relief as well as support what is expected to be a significant recovery for the region as communities seek to rebuild and reconnect with country.”
February/March 2023 | C&I | www.c-store.com.au 65 PETROL NEWS
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