C&I Retailing Magazine June - July 2018 by The Intermedia Group

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CONTENTS

EDITORIAL

JUNE/JULY 2018

44 Y 12 FACETIME

Felicity Needham, Impulse Director at Lion

16 STORE REVIEW USA Foods

20 AACS

AACS 2017 State of the Industry Report

24 ROUNDTABLE

How the industry is looking from a variety of voices

36 FLAVOURED MILK

More than just white milk

40 POINT OF SALE

New Point of Sale technology can give stores a serious competitive advantage

44 CHOCOLATE BLOCKS/BARS

Chocolate continues to lead the way in confectionery

48 PRODUCT NEWS

30 years and industry innovation

ou may have noticed that this publication has been around for a while, 30 years actually. We take our hats off to a Mr Keith Berg who started this whole thing back in 1988 and has stuck by it in various capacities over the years. ‘Innovation’ is the buzz word of the industry at the moment, and while we are all busy trying to be innovative we need to make sure we don’t neglect other trends within the industry. Trends such as health food, grab-andgo and coffee are all at the forefront of customer demand. With the release of the Australasian Association of Convenience Stores (AACS) State of the Industry Report (SOI), 2017 we now have a close up of how the industry is performing in each area. The data put together by IRI for the SOI revealed that the Australian convenience industry is valued at $8.4 billion, based on in-store sales and excluding petrol. An

additional $85 million has been generated in revenue over the course of the year. You can read more about the SOI report and AACS CEO Jeff Rogut’s insights on page 14. In this edition of C&I Retailing, we have welcomed a personal opinion and insight from those high-up within the industry. C&I spoke to suppliers and retailers to see how their companies have been travelling over the past year, what they’re most proud of and some predictions for the future. You can read all this from page 24 onwards. This is an exciting edition filled with insights and reflections both near and far, it’s been 30 years in the making so we hope you enjoy it!

Lucy Marrett Editor

All the latest product releases

54 OVERSEAS US REPORT Howland Blackstone

62 OPINION PIECES

Brett Barclay, Charles Watson, Darren Park

68 INDUSTRY NEWS

The Distributors, Caltex partners with the Socceroos

72 PETROL NEWS

Dan Armes, In the news

Safa de Valois

James Wells

Keith Berg

Ben Curtis

Jeremy Gough

PRIME TIME

Kinder Choco-Bons

Vodafone announces shake up

Kinder Choco-Bons are the newest addition to the Ferrero family. The Choco-Bons come in bite-sized pieces with a smooth milky centre containing moreish hints of hazelnut, hidden beneath a fine milk chocolate coating. Each chocolate is individually wrapped and is a delicious treat for the whole family to enjoy. There are three different pack sizes available- Pillow bag 46g, Pouch bag 104g and a 200g bag. The deliciously fun, bite -sized Kinder Choco-Bons have been successfully enjoyed by European families for the past 20 years and are now available in the Australian market. Kinder Choco-Bons are available throughout the convenience and impulse sector.

We are excited to announce that as of June 8th, we are shaking up the market with our new Vodafone Prepaid plans offering customers up to 25GB of data per recharge on the $40 Data Combo with 35 day expiry. This offer is available to new customers only until 14th August 2018. Customers must opt in after their first recharge to be eligible for recurring bonus data on three recharges. Make sure you keep an eye out for half price SIMs and other offers in selected retailers. Vodafone greatly values customer support and looks forward to discussing these offers in more detail. If you are an independent store or wish to re-order stock, please contact YES Distribution on 1300 730 343.

Supa Essentials

Petrol Services Australia

Tru Blu Beverages has an exciting range of premium juices called ‘Supa Essentials’, made from 99% fruit juice and all natural ingredients. Each 350mL bottle contains the equivalent of at least 2.5 serves of fruit and 25% of the daily requirement of Vitamin C and Fibre. Furthermore, Supa Essentials contains super foods such as kale, spinach, coconut water, cherry, lemongrass and ginger. Supa Essentials comes in six mouth-watering flavours, each with its own specific purpose.

Petrol Services Australia are pleased to announce the opening of their latest branch at Prestons in Sydney. Established in 1998 the business has grown and expand into Australia’s largest privately-owned fuel equipment specialist with branches in South Australia, Victoria, Queensland and most recently New South Wales. With over 30 years’ experience Petrol Services Australia offers a complete design, installation and maintenance solution for retail and commercial petroleum and LPG storage and dispensing systems. Petrol Services Australia service all major oil companies and independents throughout the Australian Market providing a vast array of services including 24/7 help desk, highly skilled technicians fully trained in fault finding & diagnostics and servicing to all makes and models including Gallagher/PEC, Gilbarco, Compac, Wayne, Red Jacket and FE Petro. Contact us today to discuss your specific service requirements. Contact Sharyn Wright, Chief Development Officer. 1300 052 847 sales@petrolservices.com.au www.petrolservices.com.au

• Berryoxidant • Coco Power • Mango Magic • Green Recharge • Apple+ • Orange+ Supa Essentials come in a portioncontrolled 350mL PET bottle, perfect for people on the go and for any time of day. Call Tru Blu Beverages today on (02) 9912 6700, to order or find out more. Published by C&I Media Pty Ltd (A division of The Intermedia Group) 41 Bridge Road (PO Box 55) Glebe NSW 2037 Tel: 02 8586 6292 Fax: 02 9660 4419 E: magazine@c-store.com.au

Publisher: C&I Media Pty Ltd

Editor at Large: Keith Berg

Features Editor: Jeremy Gough

Commercial Director: Safa de Valois

Editor: Lucy Marrett

Graphic Designer: Adrian Tipper

Editorial Director: James Wells

Account Manager: Ben Curtis

DISCLAIMER This publication is published by The Intermedia Group Pty Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by Australian and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials. The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded save for those conditions and warranties which must be implied under the laws of any State of Australia or the provisions of Division 2 of Part V of the Trade Practices Act 1974 and any statutory modification or re-enactment thereof. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. Copyright © 2018 - The Intermedia Group Pty Ltd.

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June/July 2018 | C&I | www.c-store.com.au 7

15-16 AUGUST 2018 MELBOURNE CONVENTION & EXHIBITION CENTRE

EE TO FR END T AT

In partnership with

Sponosor

Kanguru is set to redefine the energy drink market with a sophisticated product, combining clean, effective ingredients and a great taste.

FIRST 750 ATTENDEES EACH

DAY GET A

FREE SHOWBAG

www.candiexpo.com.au

1300 789 845

Back to Melbourne in

2018

C&I IS HEADING BACK TO MELBOURNE C&I is heading back to Melbourne, and in 2018 will again partner with the Australasian Association of Convenience Stores to bring retailers and suppliers together over two big days. The retailer audience consists of owners and operators of convenience stores, service stations, corner stores, community stores, newsagents, mini marts and food service stores that have a convenience offer. Suppliers and wholesalers are also more than welcome. Visitors will be treated to an impressive line-up of quality local and international presentations at the AACS Convenience Leaders Summit. When the Expo doors open visitors will experience first-hand the latest in convenience products, services and merchandising. Total attendance at the Expo is expected to exceed 2,000, representing 8,000 retail outlets and numerous suppliers, along with 150 companies that will be exhibiting. More than 400 visitors will book to attend at least one of the AACS Convenience Leaders Summit sessions and several overseas delegations are expected.

THE CALENDAR Wednesday 15 August 8.30am – 12pm

AACS Convenience Leaders Summit and AACS PJ Award finals presentations

12pm – 5pm

C&I Expo Day 1

Thursday 16 August 8am – 10am

AACS Convenience Leaders Summit continues

10am – 3pm

C&I Expo Day 2

From 7 pm

AACS Gala Awards Dinner

CONVENIENCE & IMPULSE EXPO Wednesday 15 August 12pm - 5pm Thursday 16 August 10am - 3pm

LARGEST convenience industry trade show in Australia

Now in its 27th year and with around 150 companies taking part, this is the largest and most popular specialist convenience industry trade show held in Australia. And it’s open to retailers and suppliers from all banners and brands. See the latest in merchandising, foodservice, all kinds of major brand and lesser-known products for resale as well as retail store and forecourt equipment. This is an event that no switched-on convenience or impulse retailer should miss. A few hours spent strolling the exhibition hall will bring you up to date with all of the new products, new suppliers and, most importantly, new ideas. If you own or work in a convenience store, corner store, newsagency, community store, retail cafe or mini mart, this event will bring you up to date and with new products and ideas that will help you grow your business. Anyone planning to enter the industry is also welcome to attend.

VENUE Melbourne Convention & Exhibition Centre 1 Convention Centre Pl, South Wharf VIC

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MCEC is located on the banks of the iconic Yarra River in South Wharf. BY TRAM: Catch any of the following trams and exit at the stop opposite the Clarendon Street entrance of MCEC: • Route 96 – St Kilda to East Brunswick • Route 109 – Port Melbourne to Box Hill • Route 12 – Victoria Gardens to St Kilda Alternatively, catch tram number 48 or 70 and exit at the Flinders Street stop. Then take a short (25 minute) walk towards the Yarra River, across the Seafarers Bridge. Visit www.ptv.vic.gov.au for further information. BY TRAIN: Take any train that goes to Southern Cross Station. Exit at Southern Cross Station and catch tram number 96, 109 or 12 as above. Visit www.ptv.vic.gov.au for further information. BY BUS: The SkyBus transports visitors directly from Melbourne Airport to Southern Cross train station. Bus route 237 operates from Queen Victoria Market, via Southern Cross Station to Lorimer Street South Wharf from Monday to Friday. Lormier Street is approximately a five minute walk to MCEC. There is also a coach pick up/drop off point at Bay 1, Convention Centre Place (closest to DFO South Wharf). Visit www.ptv.vic. gov.au for further information. TRAVELLING BY CAR: Parking is available at the venue. Parking fees apply.

CHURCHILL AVE

CONFIRMED EXHIBITORS FOR 2018 INCLUDE:

• • • • • • • • • • • • • • • • • • • • • • • •

Airtec Corporation Balfours Beacon Bindweld Cardtronics Carman’s Kitchen Cobs Commonwelath Bank Country Fried Chicken Services Cowin Global Dover Fueling Systems Eastrade International Elaflex Pacific Elgas Swap’n’Go Energizer Australia Envirotank Ltd FFGLE Flowsell Gallagher Gilbarco GM Solutions Hatcher HL Displays Imperial Tobacco

• Inside Out Nutritious Goods • J&M Communications • JCC Suntech • Justine’s Cookies • KanGuru • Kez’s Kitchen • LionCo • Liquefy Health • Majors • Metcash Food & Grocery • Mrs Mac’s • Nestle • Nippy’s • Norwood • Pacific Optics • PeleGuy • Philip Morris • Pre Paid - Optus • Prefect Agency • Prosegur Australia • Quick Fuel • Remedy Kombucha • Robert Menz • Sanitarium

Admission to the C&I Expo is

FREE

• • • • • • • • • • • • • • • • • • •

Schweppes Australia Shine + Drink Si Retail Supagas Tank Solutions Tasmanian Bakeries TechCentre Smartphone Accessories The Blue Pod Coffee The Distributors The Handmade Food Co Trident Sales TS & B U-Haul Australia UCB Val Morgan Outdoor Vend Data Media Solutions Vitaco Vodafone Washtec

AACS SUMMIT Wednesday 15 August 8.30am - 12pm Thursday 16 August 8am - 10am AACS will once again collaborate with C&I so that the Expo will open each day after the AACS Summit. We have assembled an amazing line up of presenters that you will not want to miss including: MATT THORNHILL Managing Partner, Institute for Tomorrow USA Matt Thornhill is founder and managing partner of the researchbased think tank, SIR’s Institute for Tomorrow, based in Richmond, Virginia. Matt is a futurist, author, and provocateur. He helps leaders in the convenience and fuel retail categories learn what’s coming and what to do about it today. For over 50 years SIR has researched and studied the key trends that are shaping the future. And the people who are making it happen. NICOLAS GEORGES Director, Food and Agriculture Innovation, Industry Professor In the decade prior to working at Monash, in addition to expanding category channels and driving efficiency transformations from manufacturing areas through to head office functions, Nicolas has led many breakthrough innovations, launching more than 500 new products in four countries whilst working for companies such as Nestle, Mondelez, Godfreys and Vitasoy – some of these include Cadbury Marvellous Creations, Drumstick Loaded, Hoover Range and Vitasoy Café for Barista. Uniquely experienced across all functions (manufacturing to sales, marketing, strategy and R&D) in FMCG and Retail, including general management and P&L responsibility in both industries, he focuses on expressing people’s potential and creating new paths. DYLAN ALCOTT OAM One of Australia’s most recognised Paralympians He was the winner of the 2017 Australian Open quad wheelchair title for the third year running. In 2016 Dylan was awarded Paralympian of the Year, the Newcombe Medal (the first wheelchair athlete to win the highest individual award in Australian tennis history) and GQ Sportsman of the Year. Dylan was a Gold medal winner of both the wheelchair singles and doubles tennis at the 2016 Rio Paralympics and won basketball gold medal at the 2008 Beijing Paralympic games. He is ranked 1 in the world as a quad competitor in wheelchair tennis and is a four times Grand Slam winner. ANGUS MCKAY CEO – 7-Eleven Australia Angus McKay joined 7-Eleven as CEO in 2016, and is responsible for leading the 7-Eleven team, growing the 7-Eleven brand in this market, and maintaining the company’s position as Australia’s first choice in convenience. Angus’ former roles include MD and CEO of The Skilled Group, MD of Pacific National Rail, CFO for Asciano Limited, and various senior roles at Foster’s Group, including CFO. BRETT BARCLAY Director, Convenience Measures Australia Brett Barclay is the founding Director of Convenience Measures Australia a business focussed on providing research, insights and support to the Convenience Channel in Australia. This is done through the delivery of 2 main programmes: CMA Shopper Report - providing insights into the Convenience shopper, in which he uses his 12 years of Shopper Research experience; and Covin 360° - a relationship benchmarking programme liaising with both Retailers and Suppliers in the Channel. Brett has been a Director of the Australasian Association of Convenience Stores (AACS) since 2008. …and of course the ever popular finalists in this year’s AACS PJ Convenience Award who will win a trip to China as part of the AACS Overseas Study Tour. The AACS Summit is free to attend for members, and $50 (inc GST) for nonmembers. To reserve your seat now go to www.candiexpo.com.au.

Awards AACS 2018

Thursday 16 August 7pm till late This is the one night of the year when the industry lets its hair down to celebrate excellence. The very best suppliers and retailers are recognised for the contributions they have made to the industry over the previous year. Then the two lucky Peter Jowett Scholarship winners are announced as well as the winners for the following award catergories: RETAIL STORE AWARDS • Company Operated AACS Store of the Year • Franchise/Independent AACS Store of the Year SUPPLIER OF THE YEAR AWARDS • Beverage & Dairy • Ice Cream and Snacking • Confectionery • Food on the Go • Tobacco • GM/Publications/Telecommunications • Service Provider • Distributor AACS PJ INDUSTRY AWARD • Retailer • Supplier AACS RETAILER GRAND CHAMPION 2018 AACS SUPPLIER GRAND CHAMPION 2018 This is wonderful opportunity to network with the industry’s leading retailers and suppliers. Book your tickets when you pre-register for C&I 2018. Tickets are $380 per person including GST and include an excellent three course meal, beverages and entertainment. All guests are also invited to attended the official AACS after party proudly sponsored by ‘The Distributors’ at the amazing ‘Club 23’ at Crown. Dress code is cocktail.

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

FACE TIME

FELICITY NEEDHAM - FROM THE UK TO OZ AND BACK AGAIN (AND AGAIN) From decisions about the future to moving across the world, Felicity has remained passionate about the industry.

12â&#x20AC;&#x192; June/July 2018 | C&I | www.c-store.com.au

FACE FEATURE TIME

was born in Cambridge in the UK in 1981 where we lived for a few years. Due to my father’s job, we travelled around a lot, and while I was still young ended up moving to Gainesville in Florida. My younger brother James was born in America. We lived there for a few years before eventually going back to Cambridge and then onto Scotland. We ended up in Oakham, which is in the smallest county in England but remarkably it has the largest number of pubs, and my parents decided to settle there. My childhood was fantastic as I had the opportunity to live in many places and experience some great things. We were lucky in the places we lived it was really balanced on both the outdoor lifestyle such as skiing in Scotland, playing county hockey in Oakham and the academic side of things. I always had two thoughts about my future and what I’d like to do—either be a midwife (you may laugh if you know me!) or go into business, I clearly chose the latter! I studied in the UK at Oakham School and then went onto Oxford Brookes University to study business management over a four year course (called a sandwich course). This involved spending the third year of the course in a business and then writing a dissertation on the business and the experience. I spent my third year at Mars in Australia and it was a great experiences. My first job out of University was with PepsiCo (Walkers Crisps) where I drove a van around North London selling crisps (potato chips to Aussies). This role really set me up for success and taught me true hard work – it certainly gave me some interesting life experiences! When I was in London working as a regional sales manager, I went out with one of my reps on a work with. We went into a store and the owner wanted some credits toward product and we couldn’t do it (due to him not buying them from us!). It got a bit heated and the retailer became very agitated and upset and ended up bolting the door so that we couldn’t leave. We tried to negotiate our way out but we were stuck in there for three hours trying to negotiate with him. We weren’t able to call the police or anyone else for help because our handbags and phones were in the car. Eventually we were allowed to leave to get him some product samples—he let my rep out of the store to retrieve the samples from the car and kept me in there until they came back.

We did go to the police afterwards but it was a life experience in terms of how life in London was at the time. It wasn’t funny at the time, but it is a good laugh now looking back on it. I have actually only worked at two companies in my career—PepsiCo and Lion Dairy & Drinks – I was at PepsiCo for 14 years across both the UK and Australia. I was really lucky in my career where I was given the opportunity to move through account management and people management in various roles. I then moved to Lion nearly 18 months ago in 2017, which has been a great company and role to move into. I started with Lion in January 2017 as a customer director for convenience which essentially was looking after the petrol and convenience customers with a team of account managers. That roll has evolved to pick up QSRs (quick service restaurants) and also the HORECA channel (hotels, restaurants and cafes) which is now classed as the impulse channel. I’ve been in convenience essentially throughout my whole career, it’s the area that I’m passionate about and it’s a fast paced industry. Every day is different, we have 100s of customers and it’s all very exciting. The Impulse channel is a key growth driver and it’s exciting to constantly have the opportunity to work and develop on ideas. My husband Richard and I have been together since I was 17; you could say we’re childhood sweethearts. He’s originally a farmer from Oakham and when I got offered the opportunity to move to Australia I asked him to come with me, luckily he did. He proposed on my 30th Birthday (Jan) at the Melbourne botanical gardens and we went back to the UK and got married 6 months later in June 2011. I currently describe my life as a juggling act! I have two beautiful yet crazy children – Amelia, aged four and Harry, aged two. My life revolves around Lion and Peppa Pig essentially (any maybe a glass of wine at the end of the day). My family certainly keep me busy outside of work but love every minute of it. 2018 and beyond is a really exciting time at Lion and I am looking forward as to how we continue to develop our brands, teams and innovation. I enjoying testing and learning in any role I am in and occasionally (!) pushing the boundaries and I don’t see this changing! C&I

Advice for retailers: We are in an ever-changing market place and retailers need to be nimble in their innovation and learnings. The more that we can start to discuss the occasions that shoppers are looking for and how this can be developed within the retail environment is the key to success. More and more we are seeing that it is about the customer experience so how can you embrace this in your stores that is relevant?

Advice for suppliers: I think it is really important to truly understand your customers and the shoppers. What are the key business objectives? How do you jointly work towards this? Suppliers need to think outside the box and their niche in the market. The more that can be leveraged as an occasion or experiences will not only support the retailer but also the supplier.

The Impulse channel is a key growth driver and it’s exciting to constantly have the opportunity to work and develop on ideas.”

Felicity and Richard with Amelia and Harry. June/July 2018 | C&I | www.c-store.com.au 13

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

STORE REVIEW

USA FOODS DOWN UNDER We have to ensure we’re running extremely efficiently — this is because it’s very expensive importing items in from the USA.”

What began as a way import American food items has since grown into a lucrative business that extends far beyond just friends and family.

alking into USAFoods at its newest Sydney store makes you feel like you’ve just stepped into a New York grocer. While they are continually adding and growing their store, already the walls are lined with products direct from their US partners. Brightly coloured New York inspired art adorns any blank walls and it’s hard not to be mesmerimised by the first few products your eyes see- complete shelves of American hot sauce and BBQ sauces.

THIS IS AS AUTHENTIC AS THEY COME. Phil Bertino Sr and Jeanette Bertino hail from one of the more well known US states, originally from The Bronx in New York. They moved from The Bronx, to New Jersey and then to Los Angeles when their son, Phil Jr was born. In 1993, the Bertino family moved to Australia. The move prompted a new business venture- a sandwich shop in Melbourne. However, the store saw its popularity shift away from the sandwiches, and to the small selection of US goods that were stocked. It was the vast differences in available food in Australia that saw the couple open their business USAFoods in 1997 at Brighton in Victoria. The original idea was to bring in products that weren’t available here for themselves, as well as friends and family. The business grew and in 2002 the website went live, and the US products were sold online for the first time. It quickly grew into a business where we started importing a far larger range than initially expected and it continued on from there. Currently, USAFoods has two stores, the first in Melbourne and the second in Sydney. The Sydney store opened in March 2018, has already gained the attention of many potential customers. 16 June/July 2018 | C&I | www.c-store.com.au

Phil Bertino Jr told C&I: “As this is our first venture out of Melbourne, we have to take it one store at a time”. “We hope to continue to expand to other parts of Australia, with Brisbane being next on the list,” Mr Bertino said. “It’s taken 20 years to get a second store as our plans are usually interrupted, but we’ll make sure it won’t be another 20 before the next one. “We always strive to be unique. “When you visit us that is the feeling we want to give – we’re different. “I don’t like businesses that just copy other people’s ideas or just sells a product – I love innovation and businesses that innovate and push the envelope. “It’s hard to innovate in this space, but we do the best we can to think outside the box and come up with interesting ideas to solidify us as a prominent business.” The products within the store are not the only element to USAFoods that is unique. The stock widget connected to their online store is always working and updating to ensure it reflects current stock levels. “We track our inventory as best as we can and the website takes those numbers and shows them in real-time on the website,” Mr Bertino said. “This way we can give customers a quick and easy way to see what’s in stock before coming down,” he said.

STORE REVIEW “Stock is our first priority as it’s an extremely difficult challenge when you import every item you sell and there are so many. “It’s difficult for smaller businesses to achieve this as it’s time consuming and very difficult to keep a handle on.” There is also a ‘card-only’ mentality, meaning that there is no room or need for cash transactions. “The card-only mentality is great,” Mr Bertino said. “We have to ensure we’re running extremely efficiently- this is because it’s very expensive importing items in from the USA,” he said. “The more efficient we can be, the more time we can ensure we’re on top of the issues that actually matter like ensuring the shelves are full of fresh stock, ensuring we can take customer requests, present the store better rather than being bogged down doing repetitive boring useless tasks like counting change, going to the bank and making a deposit. “All of these things add up in cost, security and time, more-so than small transaction fees. “At the checkout it’s also easier for the cashier and customer to complete the transaction. “90% of our payments are done via tapping your card. “Sometime in the future, society will transition into a trust-less decentralized payment system where we don’t have to worry about one specific third party taking care of our digital transactions. “There are a few people who still are surprised we don’t accept cash, but businesses have to look to the future, and while it’s still a norm today, in a few years it could perhaps be as obsolete as a fax machine or a landline phone.”

Shoppers are faced with a multitude of options all sourced from the USA

Mr Bertino said that while the store doesn’t accept it yet, it is something they’re working on. “Not yet- but we definitely will be, it’s a monumental shift in economics and it will take a long time to scale and adapt – money is all we’ve ever known about and now we have a new technology that mimics all the properties of gold but you can send a billion dollars in value or a dollar in value around the world to absolutely anyone who can access the internet and nobody or government can intercept or amend that transaction – that truly is a revolution in finance,” he said. “But we want to go a step above just the regular business accepting Bitcoin, Ethereum and other Cyptocurrencies. We’ll announce plans when we’re ready but we will be accepting Bitcoin and Ethereum soon.”

It’s taken 20 years to get a second store as our plans are usually interrupted, but we’ll make sure it won’t be another 20 before the next one.”

While it doesn’t take much to make customer want to return to the store, USAFoods has introduced a unique loyalty system that benefits both the consumer’s pocket and the environment. Mr Bertino said: “We don’t really have a loyalty system; instead we sell USAFoods bags at $5 each which entitles anyone who brings it in to a 5% discount (friends, family, found it on the street)”. “As long as you bring in that USAFoods bag you can always get the 5% discount when shopping with us. “The reason why we did this is because I’m sick of carrying loyalty cards around, or even my entire wallet in fact! It’s just a weight in my pocket at this point. “You’re going to need a bag when you shop with us so why not make the bag a membership card and it’s useful and good for the environment at the same time?”

The vast array of chilli and specialty sauces

The Bertinos and their staff are continually working on new ways to import products that we haven’t seen on our Australian shores. You can guarantee that this little slice of New York will continue to expand and if you’re in search of something new and exciting- it’s the concrete jungle (of food) where dreams are made of. C&I June/July 2018 | C&I | www.c-store.com.au 17

How our industry takes advantage of these opportunities will determine the success or otherwise of convenience operators over the next 12 years.”

AACS STATE OF THE INDUSTRY REPORT 2017 Growth slows as macro factors take their toll but still positive

ustralia’s convenience industry enjoyed another year of solid growth and is now valued at $8.4 billion in annual sales, however the channel’s rate of growth slowed for the first time in more than five years. This is according to the AACS State of the Industry Report 2017 released recently, with an additional $85 million in revenue generated over the course of the year helping to drive the $8.4 billion valuation (based on in-store sales, excluding petrol). While our industry remains one of the most robust in the world, the backdrop of weak wage growth, record indebtedness, low savings and softened conﬁdence among Australian households saw the industry record its lowest growth figure in recent years of 1%. However. this State of the Industry Report must be seen in the context of some chains far exceeding this growth number, and a number falling below. But growth is still growth, says AACS CEO Jeff Rogut, which is a credible result in a difficult year for retail generally. We should continue to have confidence in convenience, he says. “The convenience channel recorded a positive result in 2017 amid challenging conditions where the impacts of several expected trends were felt more sharply. The importance of a quality food offer has been reinforced while the need for stores to offset declines in communications and travel ticket sales has long been anticipated,” Mr Rogut says. “It puts the focus squarely on innovating to ensure convenience retailers and suppliers continue to provide an attractive value proposition and relevant product offer in the most convenient, customer-centric environment possible,” he says.

FOOD FIGHT: FOOD AND BEVERAGE OUTPERFORM NON-FOOD CATEGORIES

The growth in Total Food sales was 2.5% while Total NonFood sales recorded a 0.1% decline, according to the AACS State of the Industry Report 2017. Take Home Food sales were up 18% in 2017, demonstrating that efforts by the convenience channel to be viewed as a viable food shopping option for busy consumers is paying dividends. Similarly, the On the Go Food category showed an impressive 13.3% growth over the course of the year, with an extra $63 million in sales. “These strong results in particular reinforce the need for the industry to continue to innovate in the food area to provide consumers with a broader range of high quality, fresh and healthier options,” Mr Rogut says. “While we have become a solid destination for quality coffee, day parts such as breakfast and evening meals still offer us opportunity.”

RETAIL EVOLUTION THREATENS THE EXTINCTION OF SOME CATEGORIES

The convenience channel recorded an $88 million decline in value from three non-food categories in particular: communications, printed materials and travel tickets. “This is not surprising given the way new technology is shaping the way we live. These categories have each lost further relevance in physical retail and we need to seek new avenues of growth in these, or totally new categories, based on customer demand,” Mr Rogut says. “There is an opportunity to replace these categories with Jeff Rogut presenting at the other convenience-based Sydney launch breakfast and left services that people rely on instead, such as parcel collection, delivery services and other trends that reflect modern lifestyles,” he says. Packaged alcohol still offers a huge opportunity for the convenience channel and AACS will continue to lobby on behalf of the industry to gain access to a share of this category’s sales, which is still dominated by a handful of major companies.

20 June/July 2018 | C&I | www.c-store.com.au

SUB-VALUE CIGARETTES DRIVE GROWTH IN TOBACCO

The importance of legal tobacco to convenience stores and as a revenue generator for Government was underlined in the report, with the Tobacco category showing 3.4% growth in 2017, generating an additional $105 million in sales. Nevertheless, the Tobacco result represented a slowdown in growth from the 4.5% recorded a year earlier. The sub-value cigarettes category again led the way as consumers continue to trade down against a backdrop of excise increases. “The continued strong performance of the Tobacco category should not only provide clear encouragement for Government to crack down on the illicit tobacco market and protect its cash-cow, but also highlights the potential demand for products like e-cigarettes to provide safer alternatives for consumers who may be looking to quit smoking traditional tobacco,” Mr Rogut says.

INTERNATIONAL ISSUES

While the performance of the convenience channel remains robust, as ever, the AACS keeps a close eye on international convenience markets to understand potential issues and challenges that our domestic operators could face. Mr Rogut says the US convenience channel is currently facing numerous challenges with the potential to manifest here, including rising fuel prices, low income consumers, the rise of ecommerce, and increasingly aggressive tactics from quick service restaurants (QSRs). The US convenience market, which represents $230 billion in merchandise sales, across approximately 160,000 stores, grew just 1.7% in 2017. “The key to navigating these challenges will be to innovate with the customer experience front of mind, to ensure the offer is as relevant and attractive as possible, and to execute that innovation in a cost-effective way, given the low margin environment stores must operate in,” Mr Rogut says. “For instance, the cost of living pressure giving rise to more low income consumers obviously impacts our channel with impulse purchases potentially to suffer. In the US, some stores have countered this by adopting a strategy of appealing to more affluent consumers with premium offers. “This is in line with premiumisation trends across retail, but the key will be execution, given the costs associated with implementing such a strategy amid other cost pressures facing the industry. “Premiumisation may be one strategy for Australian convenience stores to counter the threat of QSRs, however on this battleground the prioritisation of our core point of difference – a convenient customer experience that represents great value from the customer’s perspective – will remain the deciding factor,” Mr Rogut says.

LOOKING AHEAD: CONVENIENCE 2030

After a challenging year for Australian convenience, the focus turns to future opportunities that could shape the industry. While there’s a general consensus of the opportunities to be capitalised upon, and threats to be managed, there’s equally a consensus that no-one really knows where the industry will be by 2030.

The AACS commissioned Monash University to complete the ‘AACS Convenience 2030’ report not to provide a definitive answer to this question, but to provide a pathway to get there. The report includes the opinions of industry thought leaders, who highlighted health and wellbeing, digital engagement, culinary culture and sustainability as key emerging trends to watch. Slowdown in food, and negative non-food growth, inhibited performance “The key question for us as an industry is how do we tap into these trends? New opportunities for the sector identified in Convenience 2030 included forming strategic partnerships, attracting new customer segments, reinforcing the true value of convenience, Softer growth amounted to $268m less added value vs. 2016 innovating cautiously and reframing threats as opportunities,” Mr Rogut says. “How our industry takes advantage of these opportunities will determine the success or otherwise of convenience operators over the next 12 years. What we do know is that resting on our laurels won’t suffice, and certainly the industry has David Shukri Channel Development demonstrated its willingness Colleen Grady of Metcash Director at IRI and enthusiasm to tackle the challenges head on,” he says. The Convenience 2030 report details various ‘quick FURTHER wins’ the industry plans to capitalise on, from leveraging INFORMATION: media and social media to engage with influencers and Jeff Rogut consumers, to developing destination offerings, enhancing Chief Executive Officer service delivery, competing based on the uniqueness of Australasian Association the service offer, and communicating with employees in a of Convenience Stores more effective way to create brand advocates and foster Ph: +61 467 873 789 organisational commitment. New technology like beacon devices to connect with MEDIA customers interactively, and leveraging self-service technology ENQUIRIES: in and out of store, are also on the convenience agenda. Stephen Naylor These ‘quick wins’ will change convenience forever, Mr Wise McBaron Rogut says. Communication “It is difficult to visualise what a typical convenience store Ph: +61 (2) 9279 4770 of 2030 will look like and how it will operate. But while it will likely be vastly different to the stores of today, as we are already seeing in some overseas markets, it’s reasonable to assume that a convenient customer experience will be at the crux of the offer,” Mr Rogut says. C&I The complete AACS State of the Industry Report 2017 is available to AACS members as part of their membership in the ‘members section’ of the AACS website, and for purchase by non-AACS members for $2900.00 inc. GST.

June/July 2018 | C&I | www.c-store.com.au 21

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ROUND TABLE

FRONT RUNNERS The buzz word in the petrol and convenience industry is ‘innovation’. Over the last 12 months we’ve seen technology and fresh-food dominate the market and bring C-stores into line with those overseas. We’ve also begun to truly embrace the word ‘convenience’ and what that looks like for our stores (think coffee machines) and how processes and options-on-offer can be improved for the customer (think ready-to-go meals). We’ve spoken to a range of leading suppliers and retailers, to ask them about the direction the industry is moving in, and their predictions for the future.

24 June/July 2018 | C&I | www.c-store.com.au

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Wayne Merrett CEO Imperial Tobacco What changes have you seen in the industry over the past year?

uccessive annual 12.5% excise increases by the federal government is creating affordability issues for both retailers and consumers. For consumers the twice yearly increases in their favoured brands are making many look at strategies to control spending. Some consumers move to smaller pack sizes to control consumption and outlay, others move to bigger pack sizes to get the best price per stick offering, while others look to change brands. Others consider RYO (Roll Your Own) Tobacco as many see this as a more attractive option. All of the above is driving an increase in value and sub value brands. This is impacting all channels, so Convenience retailers need to ensure they keep abreast of new developments in the growing Sub Value category and range products consumers want. Crushball products are a segment gaining popularity, increasing from 3.4% share 3 years ago to now be over 10% share*. Brands such as Imperial Tobacco’s JPS+ Crushball are being launched to meet this developing growth segment. In the Convenience channel, 20s and 30s pack sizes are gaining ground at the expense of 25s and big packs such as 40s and 50s. 20s especially is undergoing strong growth, with nearly 1 in 4 packets sold in Convenience now coming from this pack size.

What are the current issues facing the industry in your opinion? Illicit trade is an issue facing the entire industry. Some recent good news is The Australian Government has moved to crack down on illicit tobacco as part of Federal budget measures announced on Tuesday May 8, 2018. The new measures include the establishment of a multi-agency Tobacco Taskforce designed to target and disrupt the sale of illegal tobacco and expanded powers given to the ATO to charge tobacco duties and other tax liabilities on cigarettes. The recent changes follow the recommendations of the Black Economy Taskforce which reported to Government late last year and are expected to raise an additional $3.6bn over the next four years. Illicit tobacco has managed to gain a significant foothold in the Australian market following years of successive annual 12.5% excise increases. According to the recently released KPMG Report, Illicit Tobacco in Australia 2017, the proportion of illicit tobacco consumption rose from 14.3%

of total tobacco consumption in 2016 to 15% in 2017. Australia’s high tax environment has created an attractive market for organised crime with lucrative profits available to those evading tax and regulatory burdens.

Any personal milestones or company achievements you would like to highlight? 2018 saw Imperial Tobacco launch a number of initiatives, updating our portfolio to keep it relevant to emerging consumer demands. Australia’s favourite cigarette brand is JPS. This market leader has added the innovative JPS+ Crushball line extension, taking advantage of growing demand in the Crushball segment. This launch is a great fit for Convenience retailers, with JPS+ Crushball outperforming the rest of the market in that channel. Peter Stuyvesant, Imperial Tobacco’s leading premium brand was launched into the growing 30s pack size segment. The 30s pack size is showing solid growth in Convenience, with now 1 in 5 sales coming in this pack size (growing from 13.9% to 21.6%* of all Convenience FMC sales).

Some recent good news is the Australian Government has moved to crack down on illicit tobacco as part of Federal budget measures announced on Tuesday May 8, 2018.”

What are your predictions for the industry over the next 12 months? Prices will continue to rise, continuing the trend towards value and sub value products. The trend of consumers exploring RYO tobacco as an alternative to FMC will continue. Convenience retailers should keep an eye on these trends and review their range regularly to ensure they are carrying product lines to meet rising demand.

Next generation products

The Australian Government is once again facing criticism for what have been widely dubbed as “Draconian” anti-vaping laws. The increased pressure follows the New Zealand Government’s recent announcement seemingly accepting that that the sale of nicotine containing liquids and e-cigarettes is permitted in NZ. Former NZ Associate Health Minister Nicky Wagner has said that, though the scientific evidence on the safety of e-cigarettes was still developing “there’s a general consensus that vaping is much less harmful than smoking”. This move effectively brings New Zealand in step with other countries like Britain and the US who have both shown support for E-cigarette use as part of a harm reduction strategy. June/July 2018 | C&I | www.c-store.com.au 25

ROUND TABLE

Metcash Convenience wholesale has integrated Campbells and C-store to become one business to better service convenience stores and small businesses in Australia.”

Colleen Grady General Manager Merchandise, Convenience Metcash What changes have you seen in the industry over the past year?

aving joined Metcash nearly a year ago, moving into a wholesale supplier from a retail background, my learnings have focussed on understanding this new and challenging role and the industry. The key trends I have also observed are: • Technology being embraced: particularly for ordering using websites, apps, EDI and portals with scanning technology. The Metcash Convenience website represents nearly 30% of sales and has grown significantly with 14% more customers ordering this year vs last year. • Healthy options continue to grow: although more slowly in convenience. Great healthy snacking innovation has been growing in larger supermarkets for many years. Examples include: popcorn, health balls, trail mix packets, fresh produce and meals to go, low sugar alternatives and portion control sizes.

What are the current issues facing the industry in your opinion? Drawing on my experience working in convenience retail in the UK and comparing this to the Australian market my thoughts on current issues are: • Pricing premium for convenience compared to large supermarkets: This appears significantly higher in Australia than other overseas markets and may be reducing basket size and reducing the number of customers happy to shop their grocery top-up at a local convenience store. • Many direct supplier deliveries: There are currently a large number of suppliers delivering directly to smaller stores and this increases the costs of the products, costs of receiving deliveries and managing paperwork. • Limited range of fresh food options: In the UK, smaller stores have a higher percentage of products sold from 26 June/July 2018 | C&I | www.c-store.com.au

fresh food ranges including milk, bread, produce, prepared meals and chilled products. This is because these products have a short life and people need to purchase more frequently. This range isn’t currently represented in many of the convenience stores I have visited.

Any personal milestones and/or company achievements you would like to highlight? Metcash Convenience wholesale has integrated Campbells and C-store to become one business to better service convenience stores and small businesses in Australia. This change has enabled us to focus on our customers and use the most efficient delivery service from either a Metcash distribution centre or a Campbells Cash & Carry warehouse. Recently, we have launched a new wholesale pricing communication in our catalogues with a focus on carton pricing, recommended retail price and expected retail margin. These prices are ex GST to reflect that our customers are businesses. This change helps to communicate that we are a wholesale business supporting convenience retailers.

What are your predictions for the industry over the next 12 months? I expect the trends in technology and health to continue to grow. I’m also looking forward to seeing innovation and new store formats in convenience. The Foodary stores are a great example with exciting changes in fresh food ranges and new services. Only by trying new customer offers will we see what works best. Additionally, I believe all convenience retailers and suppliers will be looking for opportunities to become more efficient with supply chain and deliveries which will help them lower their prices and range great product offers. I’m hopeful that convenience retailing growth will outpace the overall grocery market next year following the trend in many overseas countries. I look forward to contributing to this journey.

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ROUND TABLE best when used in combination with sugar; when used on its own it can have a lingering aftertaste. On the other hand, artificial sweeteners such sucralose and cyclamate yield a cleaner finish, but many consumers are turned off by the negative connotation that artificial sweeteners have. Hence, manufacturers and marketers need to weigh up the pros and cons of both when developing reduced or zero sugar beverages.

Any personal milestones or company achievements you would like to highlight?

Harris Spyrou Marketing Manager TRU BLU Beverages Pty Ltd The modern consumer has become a lot savvier in their awareness and understanding of beverages and how these can be incorporated into a healthy, balanced diet.”

What changes have you seen in the industry over the past year?

The past year has seen a proliferation of new products launched onto the Australian beverage market in a bid to capture the fastest growing trend in the industry – health and wellness. This is perfectly illustrated by the meteoric rise of Kombucha sparkling fermented drinks! A year ago these products were relatively unknown and worse still, misunderstood. With social media, word of mouth and greater understanding of their health benefits, these products are now seen in many Impulse outlets and areas in which you would not traditionally see 'on-trend' drinks. Unlike coconut waters which took years to take off in this country, the modern consumer has become a lot savvier in their awareness and understanding of beverages and how these can be incorporated into a healthy, balanced diet. Many consumers are becoming early adopters and marketers are certainly using this to their advantage when developing on-trend beverages and flavour and/or range extensions within existing brands.

What are the current issues facing the industry in your opinion?

The ongoing social awareness regarding sugar remains the number one issue facing beverage manufacturers and marketers. The challenge is to develop beverages which not only look and taste good, but meet consumers’ expectation regarding the level of sugar used. In response, marketers have developed 'zero sugar' or 'reduced sugar' varieties to appeal to this need. Consumers are certainly seeing a lot of choice emerge in the market and only time will tell which products will eventually succeed and which will not. The type of sweetener used by manufacturers is also having a significant impact on consumers’ choices. There is certainly a preference towards natural sweeteners such as stevia, however, research has shown that stevia works 28 June/July 2018 | C&I | www.c-store.com.au

In the health and wellness space, Tru Blu Beverages has had success with two very different products which have been well received by their respective target markets. Glee 99% Sparkling Fruit Juice is an all-natural fruit drink with a 5-star health rating and comes in a portion-controlled 250mL can. Available in four great flavours designed for kids, Glee has been ranged in over 2,000 schools nationally and is an Australian School Canteen Approved (ASCA) product! Supa Essentials is a premium juice range made from 99% fruit juice and all-natural ingredients. Each 350mL bottle contains the equivalent of at least 2.5 serves of fruit and 25% of the daily requirement of Vitamin C and fibre. Furthermore, Supa Essentials contains super foods such as kale, spinach, coconut water, cherry, lemongrass and ginger. This range is perfect for people leading a modern, healthy lifestyle. Tru Blu Beverages has also had success with two specialty carbonated beverage products. A partnership with global ‘Bitters’ brand Angostura, has led to the launch of the non-alcoholic ready-to-drink (RTD), ‘Angostura Lemon Lime and Bitters’. Fuelled by the popularity of the over-the-counter bar and pub classic ‘Lemon Lime and Bitters’, Angostura is the undisputed global benchmark for the taste of bitters. Available in a 300mL slim-line can and a 330mL glass bottle, Angostura Lemon Lime and Bitters is available in cafes, delis and corner stores. In the Sparkling Organic space, Tru Blu Beverages has launched Riviera – a sparkling organic drink range made from 5% organic juice and natural flavours. It is available in five delicious flavours including Tahitian Lime, Pomegranate Blueberry, Pink Grapefruit, Mango Elderflower and Wild Passionfruit.

What are your predictions for the industry over the next 12 months?

My prediction for the next 12 months is the emergence of more unique health and wellness beverages. Protein and pro-biotic beverages will continue to gain traction, especially in the form of breakfast drinks. Spring and mineral waters will continue to grow ahead of most other beverages due to their inherent health properties. By extension, lightly sparkling mineral waters will continue to be popular as will lightly sparkling enhanced waters. Premium sparkling mineral waters will always be a permanent fixture especially those with luxe and unique packaging. Also gaining momentum will be mineral waters that come from unique or pristine sources or those from exotic international locations. Overall, as consumers continue to pursue healthy, active lifestyles so will their ‘thirst’ for beverages that fulfil these criteria.

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George Miller CEO Tiger Coffee What changes have you seen in the industry over the past year?

Any personal milestones or company achievements you would like to highlight?

The profit/margin in petroleum has reduced dramatically during the past two years and petrol sites are now forced to convert to fully fledged speciality small convenience stores. Customers expect to complete their top up shops and quick service food and beverage all in one purchase with fuel. Coffee has become the number one reason for consumers to visit a 'servo' on a daily basis, ahead of the need to buy fuel, as with more efficient fuel consumption most cars only need to re-fuel weekly. Consumers are becoming more aware of their choices between specialty cafes and small convenience stores using Automated equipment. The main question is: 'do I need to pay $4 for a coffee every morning, or can I get a similar product for half the price'. On a five-day working week most couples know they can save well over $1,500 per year and still get a great coffee for their daily ‘caffeine fix’.

Tiger Celebrated 10 years in the Australian market during February 2018. Since arriving 10 years ago, Tiger has installed over 3000 Automatic Swiss Coffee machines. Tiger has just launched its new Roastery Partnership with Latitude Coffee, Founded by Henry Miller and Craig Hale. Latitude have just commenced roasting coffee on new Probat roasting equipment for our network from their new roasting facility in Brisbane Australia. Tiger Coffee is currently launching its new 3 x 10 litre (under or on counter) fully automated Milk Bladder storage/ dispense system, available from July 2018.

What are the current issues facing the industry in your opinion? The main issue with all café sites is consistency, depending on the barista making the coffee. In-cup product quality can vary throughout the day and is highly related to the Barista’s skills, Pressure from high production in short periods and correct machine calibration, maintenance and filtration requirements.

What are your predictions for the industry over the next 12 months? The industry will continue to grow at exceptional levels which will put increased pressure on cafes and their staff. Automation is the only sustainable way to compete in a highly competitive market. Multi-outlet coffee retailers demand national responsive service support, consistent excellent coffee – increasingly with Telemetry support linked to a fixed / known life cycle cost of each machine. For more information visit www.tigercoffee.com.au and www.latitudecoffee.com.au

Darren Park CEO United Convenience Buyers What changes have you seen in the industry over the past year? The last 12-18 months in Australian Convenience Store trading are the reason why we stay involved, dynamic, challenging and reward for effort. We need to discuss more the keys to success — Collaboration, Innovation and Differentiation. For Convenience to prosper, we need everyone pulling in the same direction. Of course, this does not mean revealing all that we do as individual businesses, it does mean that where practical we all act as an industry. The last 12 months have shown that we can differentiate ourselves based on our own Retailer brand insights and strategies. From an industry perspective, supplier Brands are crucial. For example, where’s the value in a supplier launching an NPD in just one Convenience customer? If you are an on-the-go brand, you must think Industry first and then how to differentiate your launch by customer.

What are the current issues facing the industry in your opinion? Many retailers open 24/7. We are a capital intensive retail option. Energy prices are heading for the stratosphere and the right people who want to invest themselves in convenience are not always easy to find. These are big issues, that are compounded by the widening price differentials between Convenience and Grocery Retail. There’s channel blurring so remind me again

why Retail Food Group (RFG) can buy their product at around what I think is half my price? Oh, Is it because I’m a C-store? But I sell doughnuts and coffee and lots of it too.

Any personal milestones or company achievements you would like to highlight? We have set ourselves a very clear objective, to be the very best partner we can be. Whether it be for a supplier or an MSO member, understanding and demonstrating how we link our aspiration with those of our partners across more than just buying and selling is one of my biggest highlights. Being a better partner and the best customer we can be, has really clarified for us what we need to do. We aren’t there yet – and we are always open for help too.

What are your predictions for the industry over the next 12 months? I think we’ll see strides made in many areas, the one area though that I keep being reminded of is less bad friction or how do we remove the low-hanging friction? What do I mean by friction? If you think through the journey of Convenience Retailing, it has all been about the friction. From the early 30s with the birth of modern Convenience retailing, to suburban sites, to 6 and 7 day trading, to 24 hours a day, to transaction speed and range assortment enhancement to where we are today. We exist where Time = Convenience. June/July 2018 | C&I | www.c-store.com.au 29

ROUND TABLE

Jeff Rogut CEO AACS What changes have you seen in the industry over the past year?

What are your predictions for the industry over the next 12 months?

Australia’s convenience industry enjoyed another year of solid growth and is now valued at $8.4 billion in annual sales, however the channel’s rate of growth slowed for the first time in more than five years.

Irrespective of how far the future-focus extends, value remains the key watchword. Our industry must continuously assess how we provide optimal value to customers, particularly on destination driving value items, or else the perception of being expensive across the store will continue. Retailers should be conscious of highly competitive conditions across retail channels, especially with 45% of Australian households making numerous cutbacks to save money in the last six months (to February 2018). A higher proportion of households perceive that their financial situation has worsened, and shoppers indicate that value-driven spending will persist, irrespective of any notable upturn in the economy.

What are the current issues facing the industry in your opinion? The decline in categories such as comms and publications continue at a faster rate rather than new products and categories are being introduced. To grow we need to see far more ‘innovation and not imitation’ in terms of products for our industry.

Any personal milestones and/or company achievements you would like to highlight? AACS has had another very successful year with terrific attendances and industry support at our events, study tours etc. Our overseas study tour to China promises to be another highlight as does our AACS Convenience Leaders Summit which is run in conjunction with the C&I Expo again in 2018.

Lou Jardin Managing Director SPAR What changes have you seen in the industry over the past year? We see a revitalised Woolworths which has reversed years of negative trends and shedding the Masters legacy has positioned it back as a retailer with formidable force. Metcash was a major beneficiary in this, where they were able to achieve significant synergies from integrating Home Hardware into Mitre 10. Aldi began rolling out their new concept with expanded fresh and their entry in WA and SA established them as a national player. Costco continues to open stores and now we have seen the announcement of Amazon and Kaufland which are about to enter the market.

What are the current issues facing the industry in your opinion? Added to this we have also seen the growth of on-line shopping, with consumer’s trends towards ‘Ready-to-Eat’ take-home packs and the home delivery of prepared food and the proliferation of food apps such as Foodora, Deliveroo and Uber Eats. Together with this, we now see the growth of health segments within the supermarkets with consumer trends moving towards sugar free and lower fat options. The offers in stores are undergoing rapid change with many new products appearing on the shelves.

Any personal milestones and/or company achievements you would like to highlight? 30 June/July 2018 | C&I | www.c-store.com.au

This financial year has been a groundbreaking year for SPAR Australia and SPAR retailers where the years of laying the foundation has finally translated into positive sales growth. We are very proud of our achievements given the sector is going through one of the most difficult trading periods of the past decade. Another big milestone for SPAR has seen the introduction of the SPAR private-label program where we are slowly converting products from the Fabulous brand to SPAR private-label. At last year’s Tradeshow, SPAR Australia embraced the International theme of ‘better together’. The ‘better together’ program has delivered significant benefits to the network in the form of products, support services and expertise. SPAR International continues to be the premier independent retail brand in the world with over 12,500 locations and represented in 48 countries. With all the changes to the retail market, we at SPAR are very confident that we are well positioned to withstand the complexity and changes to the market.

What are your predictions for the industry over the next 12 months? We at SPAR are very confident in our strategy as it is about building long-term sustainability. The long association with SPAR International is delivering huge benefits in the ability to source product at very competitive prices. This will continue as we add to the product range.

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ROUND TABLE

Amanda Woollard General Manager Retail, BP Australia What changes have you seen in the industry over the past year? The digital landscape is reshaping consumer expectations and buying behaviours as well as redefining convenience. The rise of a new, digitally-enabled generation is changing our customers’ perception of value-time is just as valuable as money, a world-class customer experience is in demand, and social responsibility and healthy living are influencing purchasing considerations. As a result, disruption and competition in our channel is intensifying.

What are the current issues facing the industry in your opinion? While we’re experiencing an exciting period of growth and innovation, there are some fundamental issues placing pressure on retailers. The cost to operate is an age-old pressure point; however the challenge to deliver a world-class customer experience is taking it to the next level. Energy inflation and labour costs are one factor, delivering fresh products while managing an efficient supply chain is another, and these are then compounded by the number of new online market entrants in the retail landscape.

Any personal milestones or company achievements you would like to highlight?

hone the right product range for each store—direct feedback matched with sales data is helping us be more agile and strategic with our in-store offers. It’s also driving employee engagement. By using real-time customer feedback—good, bad or indifferent—we are praising and training our teams in a more meaningful way. The launch of our fuel payment technology, BPme is a larger-scale example of innovation, along with testing new coffee blends in our signature Wild Bean Cafés. The refreshed approach in our café has seen this segment go from strength to strength, contributing to double digit growth year-on-year.

What are your predictions for the industry over the next 12 months? The spotlight is going to remain on convenience especially in our major city centres where there is an abundance of apartment living and urbanisation is increasing rapidly. Technology is moving at lightning speed and we will need to keep up to stay relevant—our customers expect us to. We need to pre-empt their needs and bring new offers to market that exceed their expectations across new value propositions; time, simplicity and innovative products.

I’m really proud of the time we’re investing in listening to our customers. Firstly, it has increased our ability to identify and

George Tsapoutas General Manager at The Distributors What changes have you seen in the industry over the past year?

Any personal milestones or company achievements you would like to highlight?

Looking back on the past year we have seen our market place start to invest in the future with in-store development and roll out of new retail formats. In a market that has been struggling to compete against the major retail chains, we are experiencing top line growth by working with our existing retailers as well as new and emerging channels.

The Distributors have been recognised through a number of major industry service awards in 2017. These awards include AACS Distributor of the Year, Caltex Supply Chain Supplier of the Year, New Sunrise Distributor of the Year and UCB Stores Wholesaler/ Distributor of the Year.

What are the current issues facing the industry in your opinion?

• Price: There is continued pressure on suppliers and manufacturers from Major grocery chains on pricing. We are more committed than ever to working with our current suppliers as well as seeking exclusive brands and products to provide our customers with the opportunity to grow their business with different and unique offerings. • Talent: Repeatedly we are seeing the Convenience and Impulse channel used as a ‘stepping stone’ for talented staff on their way to furthering their careers in the major grocery channels. The independents impulse channel is a very complex channel but has as an equally attractive and rewarding career path. • NPD Investment: Keeping consumers excited with new products also requires investment in the marketing of the product and it feels like manufacturers are investing less to market their products as margins become tighter. 32 June/July 2018 | C&I | www.c-store.com.au

What are your predictions for the industry over the next 12 months? The market will continue to be competitive and challenging and it is an exciting time to be part of this industry. We expect the supermarkets will persist with their current strategy and that retailers in the impulse channel will invest in the development of their retail offer. Cost of goods and the supply chain will continue to be a major focus for manufactures/ wholesalers and retailers, there will be a greater demand for data to make informed investment decisions. The focus on fresh food will continue as well as the ‘better for you’ product. There is likely to be increased investment in measureable e-commerce solutios such as targeted marketing campaigns. For these campaigns to be successful, they will require strategic thought to break through the clutter. The Distributors have been working to be at the forefront of these challenges and look forward to working with our suppliers and retailers to advance and develop within the impulse, petrol and convenience marketplace.

ROUND TABLE

Wade Death Jack & Co What changes seen in the industry over the past year? The overwhelming change is obviously that the industry as a whole is going after food, whereas it used to be patchy at best. Nearly all major chains have a food centric offer and are putting some pretty great stores to market. There’ll naturally be some fallout from that and obviously some elements will work and some will not. Even though we are a convenience industry, I think as a whole we’re only really waking up to how big the opportunity of ‘foodvenience’ really is.

What are the current issues facing the industry in your opinion? I think there are two great issues facing us. The first is around the wage structure; to think that we have an award based on motor mechanics and vehicle servicing is so archaic. When I explain to our baristas and baking staff in the business that they are paid under an award created for people changing tyres and oil, I feel like an idiot. We pay significant premiums over industries that we compete with (like McDonalds and the Retail and Hospitality Awards) and it simply isn’t fit for the growth we’re all chasing. The second issue is about regulatory pressure on the fuel retailing side. I recently read a report calling on fuel retailers to explain why they weren’t retailing at the same margin as 2003! Beer was probably $3, wage rates were probably about $14 p/h, electricity costs would have been

half and the average house was probably worth $300,000. The government continues to pass draconian legislation and then wonders why prices go up. We need to stand our ground as an industry and ensure people know they can’t have it both ways.

Any personal milestones or company achievements you would like to highlight? When I created our fresh food centric offer almost six years ago it turned a lot of heads and I think a huge number of people thought ‘that’ll never work’. But a huge number of people realised that it was time the industry changed and we’ve become more customer centric. As a whole I think our industry offers far better stores and far better alternatives than it did only a few years ago which is great.

What are your predictions for the industry over the next 12 months? I think the pressure between retailers and suppliers will build over the next 12 months. The retailers are being levied with record compliance and regulatory pressure, wage increases applied to our industry have been the highest ever and we’re all spending record amounts of capital on upgrades. In some sectors we’re probably buying right, but in many instances our suppliers look at our industry as a high margin avenue for their products and it has to stop.

Steve Cardinale New Sunrise What changes have you seen in the industry over the past year? In terms of fuel, we are in over supply. There is healthy competition, and most towns have more petrol stations than are needed. With the simple supply and demand market forces one would expect fuel margins to be tight, and investment into a new-to-industry petrol station would be low, but this doesn’t appear to be the case. The opposite is true - we have a very healthy fuel margin and greater investment in refurbishing and new build sites, so something is fundamentally wrong, however whilst supply chain is controlled by Coles and Woolworths, I can’t see anything changing in the short term. If there is a risk it will be in supply.

What are the current issues facing the industry in your opinion? Regardless of the vehicle type, vehicle ownership and its energy source, people will still be in cars, people will still need to eat, drink and pee. The vehicle will still need to be fuelled, serviced and garaged and this will be our competitive advantage when people are on the move. This industry has been uberised, the Convenience store was conceived in a world where supermarkets were open 8.30am to 5.30pm and closed at 12 noon on Saturday. The fundamental product mix of the industry has not changed much; tobacco still is the main contributor to sales and profit. One could argue that we are no longer convenient, when just

about any C-store product can be delivered directly to the consumer wherever they are. The home delivery market cannot be ignored and opens a great opportunity for progressive retailers.

Any personal milestones or company achievements you would like to highlight? New Sunrise have been great innovators, there are many promotional mechanics which all our competitors use every month for example. New Sunrise invented the reverse fuel offer (RFO), we were the first to have more than one product on a gondola end and added mix and match choices. New Sunrise was also the first to offer independents a quality point of sale kit including fridge stickers and promotional themes like flags and balloons. I am also proud that we were including the first independent retail system which can be measured through an incentive and compliance program as well though purchases data. Finally I am proud to be a co-founder of Jack & Co, Jill & Jack Daily and Fix Convenience.

What are your predictions for the industry over the next 12 months? The industry is focused on increasing fuel volume; I really don’t see any short term change in fuel supply that will put pressure on margins. We will probably see a few more independents being purchased by the majors. My prediction is there will be a New Sunrise every day next year. June/July 2018 | C&I | www.c-store.com.au 33

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FLAVOURED MILK

FLAVOURED MILK It's not just white milk making its mark.

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FLAVOURED MILK

ccording to the Australasian Association of Convenience Stores (AACS) 2017 State of the Industry Report (SOI) flavoured milk had a dollar growth of 2.2% in 2017 within the convenience channel.

Since 2016, flavoured milk has also had a unit growth of 1.9%. The SOI Report stated that: “The Oak brand has recorded double-digit growth due to uniquely addressing the ‘hungry-thirsty’ need state. The coffee offer from Barista Bros, “was bolstered by marketing support that dialled up its quality credentials as a cafe-inspired flavoured milk” the report said. Having recently won the best new product launch at the 2017 7-Eleven supplier awards, Parmalat and their rotational flavour Oak Blue Heaven have taken the flavoured milk segment by storm with an innovative launch campaign. Before the Oak Blue Heaven flavour was released, it was the fans and consumers who were given the power to choose the flavour in August 2017. Through an online competition, Oak fans voted via a Facebook Live Video slot car race for their preferred flavour from a choice of three flavours— Choc Hazelnut, Blue Heaven and Vanilla Crumble. Each slot car was representative of one of the three flavours and was fuelled to move around the race track by a designated Facebook reaction. It was through the use of this method that saw the Oak Blue Heaven chosen as the winning flavour and was stocked accordingly.

ICED COFFEE

Non-dairy Coconut Milk Procal Dairies is an independent manufacturing and distribution dairy company. In addition to offering traditional dairy beverages, Procal also range a line of coconut milk beverages.

This time last year (early 2017) Lion Dairy & Drinks was the star of the company’s full year report with flavoured milk seeing a boost in sales.

Coconut Grove Coconut Milk is available in two authentic flavours—Coconut Milk Espresso and Coconut Milk Vanilla Latte. Coconut Grove is made from the finest, ethically sourced Thai coconuts ensuring the coffee beverages are deliciously creamy.

The Dare Iced Coffee product was heralded as the “star of the portfolio”, performing exceptionally well, with sales volume up by 9.9 per cent on the previous year in the grocery and convenience channel, ahead of total market growth of 4.6 per cent.

• Low in sugar • Low in fat • Packed with flavour • Get your caffeine hit, differently • Travels ambient, serve chilled. Both flavours are available in 485mL bottles and should be consumed within three days of opening.

This year, Lion has introduced its newest innovation in six years. Farmers Union Iced Coffee unveiled the all-new Farmers Union Iced Coffee Edge liquid breakfast. A quick brekkie to go that’s made with real coffee, protein and fibre, is set to be a consumer favourite. A survey by the company

Insights from Convenience Measures Australia • Flavoured milk shopper visit frequency is 15% below channel average however basket spend per transaction is 37% higher than average. • Flavoured milk is represented in 10% of all cold beverage baskets which is the 5th highest for the category. • 30% of flavoured milk shoppers also purchase food with hot food the highest representation. • The flavoured milk shopper is more likely to be male than the channel average over indexing by 15%. June/July 2018 | C&I | www.c-store.com.au 37

FLAVOURED MILK Parmalat has also overhauled its Ice Break brand with innovation aimed to drive lapsed Iced Coffee drinkers back into the category who are seeking a real coffee taste & caffeine kick. Ice Break, the categories #2 brand kicked off 2018 with the launch of Ice Break Bold Espresso in March; A triple shot of dark roasted Robusta beans, blended with fresh full cream milk to deliver a full bodied coffee taste with mainstream appeal. The Bold Espresso beverage was blended to introduce consumers to a real and authentic coffee experience and is available in 500ml across SA,VIC,NSW & QLD. 2018 has also seen the introduction of the Farmhouse Gold Flavours. The 300ml variants in Chocolate and Mocha flavours have entered the market following the brand’s successful launch into White Milk, Yoghurt and Custard. The brand which continues to grow in all categories appeals to a growing consumer group who are looking for premium products to indulge in.

Oak is the largest Rainbow brand nationally in both grocery and convenience and is driving the growth of this segment at a rate of 24.2% in value within convenience.”

found that 77% of those surveyed saying they would replace their current liquid breakfast with Farmers Union Iced Coffee Edge. The new quick brekkie option is available in both Original and Mocha flavours throughout convenience, supermarkets and independents across SA, VIC and NT.

FACTS AND FIGURES IRI Scan data revealed that within the RTD segment in total P&C, flavoured milk accounts for 27% value share of the category equal to energy 27% and significantly higher than cola 14%, water 12% and sports 10% (IRI Scan MAT 22/1/2018). IRI data in P&C also revealed that the total fresh flavoured dairy/ milk beverages remains flat over the last 12 months growing just +0.2% in value. Within dairy milk, iced coffee is in decline overall in both volume (3.2%) and value (2.9), however rainbow (chocolate, vanilla, strawberry, caramel, lime and the like) remains in strong growth +7.5% Value driving the category result. (IRI, P&C, MAT to 08/04/18). IRI data have indicated that milk-based protein drinks, led by Oak Plus now makes up 5.7% of the Flavoured Beverages Category and is growing +45% MAT. Non-dairy remains less than 0.5% of the category share however is seeing large growth. Lactose Free is another new sub-segment after the launch of Zymil Flavours we will see this grow and continue to be largely incremental to the category. Frozen Oak and continuation of rotational flavours within the Oak Range continue to attract new shoppers and add excitement to the category. (IRI, P&C, MAT to 08/04/18). According to IRI, Oak is the largest Rainbow brand nationally in both grocery and convenience and is driving the growth of this segment at a rate of 24.2% in value within convenience (IRI Aztec, P&C, MAT to 08/04/18). Oak Thick was also introduced into the convenience channel, it provides an addition to category growth, offering a unique beverage experience.

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Pauls Zymil, Parmalat’s Lactose Free brand, has launched into Flavoured Milk to attract new category buyers. The easy to digest formulation contains 30% less sugar and fits into the better for you segment which continues to grow rapidly across various product categories. C&I

Non-dairy flavoured milk • The Inside Out range was inspired by the fact that existing non-dairy offerings in the market were quite lazy; they were highly processed, with poor nutrition and laden with additives. That’s why the brand was determined to create healthy fresh alternatives that leave consumers feeling refreshed…Inside and Out! Inside Out were founded on making a difference to wellbeing through conscious nutrition and have remained committed to producing only high quality, natural and healthy products. • The brand started with 1L white milk first and then moved into flavoured on-the-go offerings because it saw a gap for a healthy yet delicious option in the convenience channel for those consumers who are looking for something guiltfree while they’re out and about. • A new flavour out in the coming months which is Choc Mint and puts a refreshing twist on a chocolate flavour profile that is known and well loved in the category.

POINT OF SALE

POLE POS-ITION W

New Point of Sale technology can give stores a serious competitive advantage hile the cornerstone of any convenience store’s success has always been its ability to cater to the bread-and-butter needs of a varied customer base, the way in which it is able to do so is changing rapidly.

Profits will always depend largely on how many loaves of bread, cartons of milk and bags of chips an operator can sell, but it’s no longer simply a matter of keeping shelves well stocked, and display areas clean. Petrol and convenience is continuing rapidly down a high-tech path which is revolutionising the channel for both operators and customers alike. At the heart of this seismic shift is the rapid advance in Point of Sale (POS) systems which are delivering major efficiencies to stores and enhancing the shopping experience as they do so. Today’s POS systems offer operators a huge range of functions and reporting tools that enable better stock control and speedier transactions. Technology can do the work that used to tie up significant amounts of staff time, and it all helps to make the busy, on-the-move shopper a happy customer and encourage them to make a repeat purchase. 40 June/July 2018 | C&I | www.c-store.com.au

The fact that new POS can allow stores to immediately recognise best sellers and slow moving items allows for better buying and management of stock,”

New systems can be easier to set up and manage than a cash register, and might do anything from running advertisements on a customer display to running reports on past sales. Stores investing in new POS can reap the benefits of being able to more efficiently order new product, actioning loyalty reward schemes, price ticketing, and simply taking far speedier payment for product. The fact that new POS can allow stores to immediately recognise best sellers and slow moving items allows for better buying and management of stock, helping preserve cashflow for the business. A store that can run stock control and auto-order will also be able to hold less stock, and therefore be able to free up storage space for retailing. With the technology advancing so quickly, the potential of new POS systems is still being unlocked and it is evolving rapidly as suppliers react to the needs of their customers. Facilities such as self-checkouts, digital signage, automatic tank gauge integration, enhanced loyalty solutions, mobile checkouts where customers select items through their phones by scanning a product code, and CCTV and licence plate recognition, could soon be standard in convenience.

POINT OF SALE Computervision owns the QuickFuel system, which is at the forefront of the continuing development of complete POS solutions. The Australian-built application incorporates all the leading edge features required to run a modern service station. The company says that one of its major strengths is its ability to quickly adapt and update its software to respond to customer needs in an ever-changing environment.

says innovations like self-serve checkouts may take time to fully take hold in convenience.

AT A GLANCE

GaP Solutions marketing coordinator Corey Pedler said: “The jury is still out on self-serve with petrol and convenience at the moment, but I think it is inevitable that self-service will soon play a greater role”.

• Today’s POS systems offer operators a huge range of functions and reporting tools that enable better stock control and speedier transactions.

Computervision’s sales manager Brandon Galgano said: “This is such an exciting and dynamic environment and innovation is our inspiration”.

“The trick will be ensuring that any self-service options do not disrupt from the in-store consumer experience as this is one of the growth areas for petrol and convenience outlets who are now making greater in-roads with in-store food and drink offerings alongside competitive grocery options,” Mr Pedler said.

“I was at a conference recently which looked at service stations of the future and they were seen as potentially developing into community hubs coping with everything from electric cars, 3D printers, and hire cars, and this means a POS system will need to be able to adapt and evolve to the changing demands,” Mr Galgano said.

The ezi forecourt system integrates with pump controllers, recharge providers and all eftpos providers to offer operators with an effective POS solution.

The changes in the fuel environment are already becoming apparent with the development of apps that enable customers to use a tablet or smartphone to pay for fuel from the comfort of their own cars. However, thought needs to be applied to the way in which these innovations are managed to ensure they deliver on their potential. Mr Galgano said: “Service stations traditionally want people to get out of their cars to come in and perhaps buy other goods instore, but this might be counteracted by promotions or receipts with specials being delivered to people’s phones”. “You can see a similar thing with CCTV and the number plate recognition software that is already being used to improve security and stop drive throughs. It means customers can be recognised as soon as they drive up and they can be immediately offered promotions directly tailored to their needs.” A retailer who is able to communicate a customised message directly to shoppers at the point of purchase based on their shopping history has a significant head start in maximising the sales opportunity. GaP Solutions, which is responsible for the ezi forecourt integrated point of sale and back office cloud based system, agrees that the POS landscape is changing quickly. However, it

Being a cloud based system; the company says ezi forecourt allows owners and managers a far greater level of control in regards to price management, reporting and inventory. Mr Pedler said: “P&C retailers can access the back-office portal from any internet enabled device and see real time updates. Reports that can be run include sales reports, inventory movement, end of shift, zero sales, account and loyalty/rewards sales, giving owners and managers valuable data to better inform their operational decision making”. At a store level, the POS system is designed for fluid operator control with large flip charts for efficient customer service, fast eftpos/epay/touch integrations and pop-up error notifications to minimise operator errors. Innitglobal owns the POSable Point of Sale system which it says can reduce a store’s operating costs while offering real-time visibility of the cost-to-operate the business. The company’s CEO Paul Hardcastle said: “Business intelligence, customer engagement and statistical analysis is presented according to the requirements of the business”.

• There are a host of companies offering both POS hardware and software with a range of options to suit stores of any size. • Technology is allowing stores to communicate customised messages and promotions directly to customers at the point of purchase based on their shopping history. • With service, efficiency and a positive shopper experience key to running a successful convenience store, offering customers a choice of payment methods is vital.

At a store level, the POS system is designed for fluid operator control with large flip charts for efficient customer service.”

“The merchant decision is a question: ‘is the current solution actually providing the owner/manager with enough business intelligence

June/July 2018 | C&I | www.c-store.com.au 41

POINT OF SALE

A new and reliable POS system can provide a major boost to both small stores and multi-store business with more complex needs.”

to actually manage all the facets of the business in order to make calculated decisions that can affect the business bottom line’?”

1.6 second transaction speeds enable queues to move quicker, reducing customer wait times.

Innitglobal says the focus is on the business owner having clear visibility of the overall total cost-of-ownership bringing efficiencies to the business.

Whenever a convenience store is looking to upgrade its technology, reliability and the level of support offered by the supplier are very important considerations. A POS system is very much at the centre of a business and stores can ill afford to have reliability issues. A POS system which regularly crashes and has limited ‘up time’ can cause significant damage to a business, particularly if the system also has outdated functionality.

Mr Hardcastle said: “The agility to maintain a ‘healthy’ relationship with one’s customers is a composite of a number of features which are wrapped up in our customer engagement package”. “An example would be to push specific discount messages to customers on products that past transaction data see as of specific interest. This is completed via the preferred medium of that customer and the business owner.” With service, efficiency and a positive shopper experience key to running a successful convenience store, offering customers a choice of payment methods is vital. Eftpos supplier, Tyro Payments, says the shift from cash to card has been rapid over the last five years or so, going from almost a 40/60 split card to cash to an 80/20 split card to cash. Tyro Payments says its eftpos integrates directly with a store’s POS, offering a more robust, reliable solution for merchants. The company’s head of brand and acquisition marketing Lisa Vitaris said: “Both fixed and mobile terminals can integrate with POS, allowing the merchant to take payments the way they want. Terminals can integrate over fixed internet, WiFi or 3G giving the merchant lots of flexibility”. Tyro Payments says Tap & Save innovations will also see eligible debit contactless transactions processed via the lower cost eftpos network. The company says on average, Tyro customers could save up to 6% on their Merchant Service Fees. And it says sub

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A new and reliable POS system can provide a major boost to both small stores and multi-store business with more complex needs. Most companies offering both POS hardware and software have a range of options to suit stores of any size, and are keen to work with operators to organise the best system to suit individual stores and individual budgets. In such a competitive and challenging environment as convenience, it can sometimes be difficult for stores to ‘take the plunge’ and invest in a POS system where the benefits may take time to become apparent. A POS system can certainly require a significant outlay but stores which are not tapping into the advantages and efficiencies afforded by a modern POS system may be paying a heavy price for the ‘getting by with what we’ve got’ compromises they are making. With better stock control, faster service and better reporting tools, the efficiencies of a new POS system, can start to justify the expenditure very quickly. Operators will quickly learn to appreciate the difference that a POS system that is quick, reliable and efficient can make to their business. C&I * Convenience & Impulse Retailing magazine would like to thank Computervision, Tyro Payments, Innitglobal, and GaP Solutions for supplying information for this article.

CHOCOLATE BARS

SETTING A HIGH BAR

Chocolate continues to lead the way in confectionery The challenge for convenience in recent years has been fighting off the market share threat posed by the major supermarkets and their heavy discounting of chocolate.”

ithin the all-important confectionery category in convenience, chocolate remains the undisputed king. According to Convenience Measures Australia, chocolate bars are number one in confectionery for penetration, and are represented in 51% of all confectionery baskets. The size of the chocolate bar opportunity is then immense. Recent Roy Morgan research reveals that 68.4% of the population (or just over 13.5 million people aged 14+) eats some kind of chocolate in an average four weeks, and 53.2% of them eat a chocolate bar. While grocery may be responsible for some 75% of chocolate bar sales, that still leaves convenience with 25% of a very sizeable and profitable pie. The challenge for convenience in recent years has been fighting off the market share threat posed by the major supermarkets and their heavy discounting of chocolate. C-Stores simply cannot match the likes of Coles and Woolworths when they offer medium bars for less than $1 on special.

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Nonetheless, on-the-move consumers who are looking for a quick snack or treat are often prepared to pay that little bit more for the convenience of buying in a C-store. So, other than perhaps running their own price promotions to at least narrow the price differential between the channels, how can C-stores ensure they make the most of the chocolate bar opportunity? The channel is well used by chocolate lovers buying an impulse treat or doing a quick top-up shop, and visibility is key if it is to continue to generate ‘grab and go’ sales. Mondelez International, which owns the Cadbury brand, said that in some stores bars are losing visibility to less impulsive items such as gums, mints, and health bars. A Mondelez spokesperson said: “Bars should be prominently displayed on top of and below the counter as the typical shopper mission in petrol and convenience is fuel, with most shoppers heading directly to the counter to pay”. “It is at this point that they engage with other categories and it makes sense that this is where the most impulsive category should be positioned,” the spokesperson said.

CHOCOLATE BARS

Nestlé, which is responsible for leading brands such as Kit Kat, agreed that correct positioning of bars is critical to customer conversion and sales. It says that, as well as being positioned at the checkout, multiple points of disruption can increase penetration. Nestlé’s Head of Marketing (Confectionery) Anna Stewart said: “Generating incremental store value can be achieved through offlocation displays, bundling with associated purchases and disrupting with multiple points of interruption on the path to purchase”. The effective of use of promotions in convenience can be a vitally important tool for driving chocolate sales in the channel. Indeed, according to Brett Barclay, director of Convenience Measures Australia, the promotional penetration on chocolate bars is more than double the channel average and that, when chocolate bars are noticed on promotion, 75% purchase versus the channel average of 46%.

Bars should be prominently displayed on top of and below the counter as the typical shopper mission in petrol and convenience is fuel, with most shoppers heading directly to the counter to pay.”

Running combo deals across soft drink and bars has proved hugely successful in boosting sales, and other promotional mechanics such a meal or coffee deals have also had a major impact when trialled. Retailers can pair sampling with high velocity products such as coffee and sandwiches to ensure trial and hopefully establish habit-creating behaviour. Mr Barclay said the average basket size with confectionery included is 47% higher than the average.

Quick off the Blocks While the majority of chocolate bar consumers are younger and are purchasing for themselves as an indulgence, the block chocolate shopper is skewed towards a slightly older demographic, with a high proportion buying blocks to share with family members. According to recent Roy Morgan research, of the 13.5 million Australians over the age of 14 who had eaten some kind of chocolate in an average four weeks, 41.8%, had eaten at least part of a chocolate block. Blocks and bars then represent two differing occasions for customers in store. Blocks are treated as a destination purchase whereas bars are highly impulsive, especially when positioned on or beneath the counter. While blocks are clearly going to sell well in grocery, major manufacturers such as Nestlé said increased block distribution can represent an opportunity for convenience to capitalise on future growth and sales. Nestlé's Head of Marketing (Confectionery) Anna Stewart said: “Blocks continue to display strong

momentum across the channel, indicative of consumer’s desire for sharing experiences. Blocks provide various opportunities for occasions, therefore are highly valuable in increasing customer penetration”. The company said that a lot of recent innovation has seen an unprecedented portfolio of blocks brought to market, which has helped to drive strong subsegment growth. Cadbury is also well aware of the sales potential of chocolate block sales through all channels. It recently launched a number of new Cadbury Dairy Milk branded products, including the ‘Packed with Yum!’ range of family-sized blocks. The range, which is initially available in supermarkets, features textures and flavours inspired by favourite Cadbury chocolate bars such as Picnic (180g block), Boost (180g block), Moro (180g block) and Crunchie (200g block). Cadbury Dairy Milk is also generating interest with its ‘Share the Taste’ campaign which runs until July. A promotional tour will see the company giving away

large amount of milk chocolate blocks in towns and cities across the country. Mondelez International Associate Director Chocolate Paul Chatfield said: “The campaign will help us to create a movement of real, genuine human connections around the country, encouraging moments of sharing”. For its part, Lindt & Sprungli’s said that blocks complement the bars segment as they deliver on different occasions ie sharing and evening vs. bars individual, daytime. The company, whose main block brands are Lindt Excellence, Creation and Lindor, said 100g-200g blocks designed for sharing or for eating over a number of days work best. Lindt & Sprungli’s Marketing Director Nick Brock said: “In blocks, we recently launched a 78% cocoa block to further complement our successful range of high-cocoa products and we see this range performing particularly well as consumer interest in high cocoa chocolate grows”. June/July 2018 | C&I | www.c-store.com.au 45

CHOCOLATE BARS

Lindt & Sprungli is a brand synonymous with premium products and it said there was an overall trend towards dark chocolate. Lindt & Sprungli’s Marketing Director Nick Brock said: “Convenience stores should ensure they have a range of premium chocolate bar products which will broaden the overall appeal of the category and can drive category value”.

Convenience stores should ensure they have a range of premium chocolate bar products which will broaden the overall appeal of the category and can drive category value.”

AT A GLANCE • Chocolate bars are represented in 51% of all confectionery baskets.

Fuel discount offers have also proved successful in the past. Petrol and convenience shoppers are sensitive to the price of fuel, and providing a discount for buying one of their favourite products is an added incentive. Stores should also ensure they make the most of their point of sale material. Good displays with clear messaging and strong imagery of products will entice the shopper to purchase. Stocking a large range of chocolate bars is also vital. Having a breadth of offerings enables stores to satisfy different tastes and capture the breadth of the market. There are a broad range of consumer needs, such as portion control, indulgent treating, on-the-go consumption or a ‘less-guilty’ treat with some health benefits, and stores that seek to satisfy the varied customer repertoires will do well. Cadbury bars such as Cherry Ripe, Marvellous Creations, Twirl, Cadbury Dairy Milk, Turkish Delight, Crunchie and Boost continue to be strong performers in convenience. Mondelez International said continued new product development is vital for driving category growth. A Mondelez spokesperson said: “Consumers want truly new, products that offer different sensory experiences, indulgence, nostalgia, and functional benefit such as protein”.

“Many people are conscious of their health and wellness but will continue to enjoy an occasion treat and, if that trend continues to grow, our expectation will be that people will increasingly look to more premium chocolate brands,” Mr Brock said. The company’s major recent innovation in bars is the launch of the Lindor Milk Chocolate Orange 38g bar. It is also launching Lindt Fruit Sensation in the Chocolate bites pouch category to drive incremental category sales and meet what it sees as an unmet demand for a premium chocolate snack for adults. Nestlé has also been busy in the innovation department. The company said its new Kit Kat Chunky flavour rotation, ‘Choc Fudge Sundae’, provides a new opportunity to attract differentiated shoppers to the Kit Kat bars range. It has also launched ‘Milkybar Nutty & Crunchy’ to the Milkybar portfolio. It says the addition of nuts will add a textural experience not currently seen in the white chocolate segment. Anna Stewart from Nestlé said: “Consumers continue to influence trends; with passion for experiences generated through visual elements, flavours and textures as well as an ongoing desire for customisation”. “If brands can continue to inspire a passion for confectionery through textual and flavour innovation, coupled with the latest technology; chocolate will remain a signature treat for Australians,” Ms Stewart said.

• The block chocolate shopper is skewed towards a slightly older demographic, with a high proportion buying to share with family members.

Market research company Euromonitor International said that one of the key trends in chocolate in recent years has been a greater demand for premium products, and manufacturers have diversified their range in response.

• Convenience is well used by chocolate lovers buying an impulse treat or doing a quick top-up shop

Euromonitor International research analyst Fatima Marquez said: “Enthusiasm for higher quality products has been at the forefront of value growth in this category particularly as consumer appetites demand more experience from ingredients, flavours and presentation of products”.

Despite the challenges of aggressive supermarket discounting and the rise of the health and wellness trend, chocolate bars are then still driving convenience traffic and boosting profits. Stores that continue to focus on range, presentation, promotional activity, and on maximising the opportunities presented by new product innovations will no doubt continue to reap sweet rewards for many years to come. C&I

“This has not only given scope for leading brands to innovate but it has also created a landscape for smaller players to enter the industry.”

* Convenience & Impulse Retailing magazine would like to thank Mondelez International, Nestlé, Lindt & Sprungli, Euromonitor International, and Convenience Measures Australia for supplying information for this article.

• Visibility is key if convenience stores are to continue to generate ‘grab and go’ sales.

46 June/July 2018 | C&I | www.c-store.com.au

It’s time for your store to

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NEW shine 400ml +

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✔ fiery lemon / ginger flavour ✔ grab & go counter display ✔ natural functional ingredients ✔ low sugar & calories ✔ 20+ average units sold per week

FOR MORE INFORMATION VISIT WWW.SHINEDRINK.COM OR EMAIL SALES@SHINEDRINK.COM

PRODUCT NEWS

’s Choice

Nestlé Milkybar Nutty & Crunchy

Nestlé Milkybar’s newest offering – Nutty & Crunchy has taken the coveted C&I Choice spot for this edition. Combining the smooth and well-loved Milkybar chocolate with delicious roasted almonds, Italian almond biscotti, and biscuit pieces, the Milkybar Nutty & Crunchy is as tasty as it is intriguing. Biscotti is an Italian biscuit, and the word in English translates to twicecooked. The biscuits are cooked twice, giving them a distinct dry texture, making them a non-perishable food. Available in both a block and bar format, it is ideal for a tasty afternoon snack or as a delightful treat for the whole family. Leap into your nearest store to catch Milkybar Nutty & Crunchy bar 45g (RRP $1.99) and block 170g (RRP $5.19)

Shine Drink Launches New Range Shine Drink has announced the launch of their new shine+ 400ml carbonated range, and alongside the original shine+ 110ml shot. Shine has confirmed they are launching both ranges in Caltex petrol sites nationally. The new shine+ 400ml range introduces a delicious and refreshing Wild Tropical flavour that is mildly carbonated and served chilled. The premium custom glass bottle, and minimalistic label stands out in fridge. Shine+ 400ml functional & natural ingredients: • Ginkgo Biloba • L-Theanine • Turmeric • Green Coffee Beans* • Green Tea • Natural B Vitamins Shine Drink founder Steve Chapman said: "After we saw the overwhelmingly positive response to our first drink, the 110ml smart shot, we asked our fans what they wanted to see next. The two things we heard consistently was ‘make it bigger’ and ‘make something for the fridges’. I’m humbled by the response to the 400ml, it has been even more positive than we originally planned for”. Shine+ is one of Australia’s fastest growing health drink companies that is leading the way in the world of drinkable nootropics. With over 2,000 stockists now ranging the 110ml drink, Shine have successfully validated the market need for a healthy drink that gives consumers a mental boost, without the added sugars or artificial additives. The new 400ml range comes in three variations, differentiating by the bottle colour and caffeine content. The shine+ 400ml bright (white) contains all the functional ingredients except it is caffeine free, whereas the shine+ 400ml brightest (black) has extra caffeine for those customers wanting a stronger hit. All three SKUs are Wild Tropical flavoured, preservative free, natural, nonGMO, vegan friendly and contain no added sugar. *only in the clear & black

48 June/July 2018 | C&I | www.c-store.com.au

PRODUCT NEWS

Tonicka Kombucha cures stupidity* Tonicka Kombucha is the latest health drink to take people by surprise. Originally made in Bondi Beach and sold at Bondi Beach Farmers’ Market, Tonicka was handed out as a sample to customers purchasing food and was quickly a success. After outgrowing a number of spaces Tonicka Kombucha now produces and bottles from its Marrickville Brewery. Tonicka supplies its product bottled and kegged Australia wide also can assist customers with tap system set ups. Benefits of Tonicka include: • One of the safest Kombucha on the market- lab tested • Shelf stable-for ease of product storage • Raw, organic and unpasteurised

• Cures Stupidity* • Australian owned and operated • Family owned and operated • 8-week brewing process (longer than beer, wine & ciders) • Fermented goodness • No Stevia, Erythritol • No nasties, gluten-free, dairy-free, vegan • Cider like flavours • Aides in gut health To this day, Tonicka’s vision remains: “we want to be the largest and healthiest drink manufacturer in Australia, through innovation and a vision for a healthier community. Our focus on the health of our customers will never waver”. For more information on Tonicka, visit our website www.tonicka.com.au *Individual results may vary

PRODUCT NEWS

Frésh Active Mints

Fresh Active Mints are of premium quality and are presented in an equally high standard packaging. The new mints on offer from All-Fect Distributors have been created to actively contribute to well-being. Utilising the power of nature, the mints are made from ingredients, carefully chosen to assist with balance. Each flavour provides its own benefits, supporting cell vitality or freeing the airways. In accustomed fresh quality, Frésh Active Mints do not contain any colouring or preservatives, and are free from sugar and aspartame which helps to prevent tooth decay. The flavours include: • Açai Berry – The miracle berry with antioxidants to support cells • Eucalyptus Honey – Essential eucalyptus oil frees the airways while honey combats germs • Aronia Berry – Has protective potential against free radicals, helps to keep the body healthy • Acerola Cherry – Provides high levels of Vitamin C and B, thereby strengthening the immune system and cell vitality Benefits include: • Actively contributing to well-being • 100% natural essential oils • Four different flavours, selected for their health benefits • Refreshing natural ingredients • Premium packaging To range the new Frésh Active Mints, visit www.allfect.com.au or call (02) 9748 1100.

Brandz Leads the Way

The Brandz team at Impulse Marketing continue to deliver cutting edge technology to suppliers to ensure their product range is at the fingertips of every sales representative from The Distributors. With over 200 sales representatives representing thousands of products it is imperative they have supplier product details in each call. The Brandz Wholesaler App allows the rep to showcase product images by supplier, by category or even quickly look at new products that have just hit the warehouse. Impulse marketing GM Karen Campbell said: “We all know pictures sell products, hence our Brandz suppliers can rest assured every single product in their range is featured with a picture on the Brandz App”. “We are currently updating the technology to include direct ordering from the Brandz App. This is a game changer,” Ms Campbell said. It now opens the App to be utilised by supplier reps when in-store, they can send the orders directly to the relevant wholesaler with a push of a button. This new technology is planned for release mid-June 2018. The Brandz Combined Product Catalogue featuring product images and unit bar codes will hit The Distributor Warehouses by the end of June 2018. This is best described as a printed version of the Brandz App and is given to retail customers across the country by their wholesaler rep. They can then browse through the many products available at their leisure. Just another reason why being part of Brandz is critical for product distribution and exposure For Suppliers, currently not part of Brandz, please give Karen a call on (07) 56133813 or email: Karen@brandzonline.com 50 June/July 2018 | C&I | www.c-store.com.au

BREAKING NEWS

The Benzina Group can now offer you the Mobil Synergy Fuels Program With the Mobil Synergy Fuels Program and a competitive fuel card offer, let us help your site reach the highest of industry standards. The Benzina Group's capabilities stretch from site appraisal through to construction. Site Identification Design & Development Due Diligence Reports Project Management

Construction Refurbishment Buying & Leasing of sites - new or old FOR ENQUIRIES CONTACT JOE PHONE: +61 414 858 858 EMAIL: JOSEPH@THEBENZINAGROUP.COM WWW.THEBENZINAGROUP.COM

PRODUCT NEWS

Codral Sore Throat Lozenges Drive your sales of medicated Cold & Flu remedies this season with Codral sore throat lozenges. Sore throats can often be a source of pain and frustration for consumers, who want fast relief so they can get on with their day. Cold and flu purchases are often a distress purchase, bought when consumers are already feeling ill and looking for fast relief of their symptoms. In many cases a form of treatment such as a medicated lozenge may be the most convenient solution for sufferers, who don’t have time to halt their busy life on the go, and must continue to soldier on. In 2016, Codral expanded into the sore throat category with a range of medicated lozenges, combining the power of Codral with the great taste of a lozenge. While cold and flu multi-symptom products provide relief from a range of symptoms, offering a full range of cold and flu products will help retailers to capture their share of channel growth and sales through companion selling across formats. For rapid relief of painful sore throats, Codral lime & lemon flavour antibacterial and anaesthetic lozenges have a double action formula that contains a local anaesthetic that rapidly numbs painful sore throats, and an antibacterial agent to help kill bacteria. The range also includes

honey & lemon and menthol antibacterial lozenges. These delicious lozenges contain two antibacterial agents to help kill bacteria, and provide soothing and targeted pain relief. When stocking your personal care products, remember that Codral is Australia’s best known cold and flu medication brand, and has been helping Aussies to soldier on for over 50 years. Codral sore throat lozenges will be supported in conjunction with Codral Cold & Flu Solids with a massive media equity program in 2018. Media support will hero the unique lime & lemon lozenges to drive value for your business, so soldier on thanks to the power of Codral. For further information and assistance please contact your local distributor or Johnson & Johnson on 1800 029 979. ** Always read the label. Use only as directed. If symptoms persist see your healthcare professional.

Heal the Hurt Faster with Australia’s #1 bandage brand Who hasn’t used Band-Aid® Brand Adhesive Bandages? In a world full of cuts, scrapes, and blisters it seems hard to imagine life without those little adhesive bandages. Band-Aid® Brand Adhesive Bandages have covered and protected cuts and scrapes for millions of people for over 90 years and have long been a staple in a family’s first-aid kit as a source of healing, comfort, and protection. As the brand has expanded over the years, so too has the technology and innovation behind it. Band-Aid® Brand has moved from being strictly a bandage to becoming a much loved* brand that offers a wide variety of products to meet the needs of today’s active families and their lifestyles. Band-Aid®’s most recent launch saw the release of Disney’s Star Wars & Mickey & Friends™ Character Novelty Strips. The fun is set to continue with new and popular license opportunities set to continue to increment the range. With more exciting launches to come – make sure that you allocate space on shelf and have the right range of Band-Aid available for your shoppers, capturing imaginations and driving impulse purchases! Band-Aid® Heals the Hurt Faster. *Readers Digest Most Trusted Brand 2018

52 June/July 2018 | C&I | www.c-store.com.au

PRODUCT NEWS

Coconut Grove's Coconut Milk Iced Coffee Coconut Grove Coconut Milk is available in two authentic flavours- Coconut Milk Espresso and Coconut Milk Vanilla Latte. Coconut Grove is made from the finest, ethically sourced Thai coconuts ensuring the coffee beverages are deliciously creamy. • Low in sugar • Low in fat • Packed with flavour • Get your caffeine hit, differently • Travels ambient, serve chilled Both flavours are available in 485mL bottles and should be consumed within three days of opening. Procal are based in both Melbourne and Sydney- to stock the new Coconut Grove Coconut Milk call 1300 776 225.

PRODUCT NEWS

As the taxes and excise continue to increase, the market will start to witness an even greater shift towards price, and that the sub-value category will continue to gain momentum.”

INTERCONTINENTAL TOBACCO TACKLES THE PRICE/VALUE EQUATION HEAD ON A

rmed with their premium Virginia blend tobacco and everyday low pricing model, InterContinental Tobacco (ICT) is turning heads in the world of convenience retail. Family owned and operated, ICT understands what it means to be a small business and the day to day challenges they face.

THE CHALLENGE

The biggest challenge for tobacco sales – like a lot of categories in the convenience market – is the price/value equation. While demand for tobacco products is not as elastic as the demand for many other consumer products, research consistently shows that increases in the price of tobacco products are followed by moderate falls in both demand and consumption. Because increases in tobacco taxes result in higher tobacco prices for everyone, this directly affects the entire industry.

OUR SOLUTION

Customers are very price sensitive and will shop around to save money – which means they’ll also walk out empty handed if they think they can get a better deal elsewhere. Obviously, when pricing fluctuates from the distributors, this can cause a fair amount of frustration for customers at the counter. The team at ICT pride themselves on keeping their prices steady for the retailer, as this helps to provide stability to their customers. InterContinental Tobacco’s flat pricing model gives customers and retailers certainty of everyday low prices on their product ranges Top Smoke and Wild Spirit Shift as well as delivering affordable alternatives that are 100% compliant with Australian legal tobacco standards and top quality in the sub-value space. Entering the market with an offer engineered to help small retailers in a way the other brands aren’t, ICT sell their entire range at a mere 5 carton minimum order. This brings with it a balance to retailer stock levels and cash flow, while also delivering on demand to maximize physical space available for stock storage.

THE FUTURE

As the taxes and excise continue to increase, the market will start to witness an even greater shift towards price, and that the sub-value category will continue to gain momentum. Partnering with a reliable supplier that sells high quality products at everyday low pricing is a solid step to ensuring retailers remain competitive over the long term. C&I

54 June/July 2018 | C&I | www.c-store.com.au

PRODUCT NEWS

Cold Brewed For A Fancier Fix

In May 2017, the Dare Coffee Co. spilled the beans on their latest creation– the new Dare Cold Pressed– a range of cold brewed coffee which comes in latte and strong latte variants. Dare Cold Pressed is crafted using three natural ingredients, 100% Arabica cold brewed coffee, fresh milk and just a dash of raw sugar. The beans are carefully roasted and ground before being infused in cold water, to create a perfectly balanced and full bodied flavour. The Dare Cold Pressed technique delivers a superior form of coffee extraction, taking the time to infuse the beans in cold water giving the coffee a smoother, richer taste. The emergence of cold brew continues to redefine the iced coffee category globally and although it’s still a relatively infant category in Australia, the segment continues to grow down under. Dare Cold Pressed is the number 1 cold brew*, fuelling Australia’s need for a ready to drink coffee that is a credible alternative to hot coffee. Dare Cold Pressed really does bring crafted cold brewed coffee to the masses through convenience and grocery stores; and some may say a fancier fix for 25 to 45 year-old urban professionals looking to indulge in a chilled, premium coffee for their second coffee for the day! Lion Dairy and Drink’s marketing and innovation director Darryn Wallace said Dare Cold Pressed has been developed in response to consumers’ evolving tastes and love of coffee. He said their appreciation of unique blends and higher-quality coffees had intensified, resulting in greater demand for premium-quality coffee. Dare Cold Pressed will be heavily supported with integrated above the line and in store marketing campaigns featuring TV, digital and sampling to build awareness and drive trial. Dare Cold Pressed is an exceptional brew without the queue and is available in VIC, NSW, QLD and SA. *IRi AU Grocery and Convenience Scan QTR to Feb 2018

Every year, due to robberies and theft (including staff theft), thousands of dollars of tobacco and stock is lost or goes missing. Vend Data Media Solutions (VDMS) has a range of smart vending solutions that can assist with the following: • Security - Preventing and deterring would be robberies Most convenience store are seen as ‘soft targets’ by would-be robbers. The VDMS equipment helps keep cigarettes secure and act as a deterrent to robbers. If they do gain access to the store, often they are unable to access the vending machine and leave empty handed. Protect your staff by installing a cigarette vending machine. • Shrinkage - Stop losing money on tobacco Most convenience store operators see shrinkage of 1% or 2% as acceptable for tobacco which is crazy. Covering the cost of this loss means you lose 20% of the value in your most expensive category. Discipline your tobacco management with VDMS systems and control access to tobacco products and eliminate in-store shrinkage. Stop wasting staff time on unnecessary daily stock checks. • Category Value - Are you taking your most valuable category seriously? Tobacco accounts for about a third of convenience store turnover and a quarter of its profits. This area of in-store real estate can pack a real punch. It’s time to maximise the power of your point of sale with VDMS digital retail systems you can drive customer loyalty, increase revenue and really squeeze value from the tobacco category. Your store will stand out, with eye-catching digital advertising displays at the sales counter. • Our Solutions - Act now to future-proof your stores Beat the challenges of display bans and plain packs with our gamechanging units. Benefit from leading-edge technology built on retail expertise 56 June/July 2018 | C&I | www.c-store.com.au

and specialist tobacco know how. Take control with smart, secure tobacco storage and management. Suit your stores – our customised modular systems can stand alone or integrate with your POS system. • Advertising Platform - Drive revenues, Build brands, Increase profits Target customers and drive selective sales with the super-sharp displays on our digital screens. Transform your point of sale, build your own account brand equity and create a brand-new revenue stream from supplier advertising. Mix national and store-specific campaigns, and build community by offering community bulletin board space. • Save Time - Gives you control and saves you time We want to maximise the value you get from tobacco and our digital retail systems combine retail know how with technological excellence. They solve the challenges of selling tobacco. Minimise shrinkage and drive revenues, while you benefit from real-time sales information, a valuable point-of-sale digital advertising platform, and transformed store operations. Contact us and take control of tobacco today. Discover today how our digital retail systems can give you control of tobacco and transform your point of purchase. Arrange to meet us, visit our showrooms or find out more about our innovative technology. Visit us at: www.vdms.com.au Phone: +61 (2) 8507 3009

Secure, hassle-free

VENDING SOLUTIONS VDMS want to maximise the value you get from tobacco and our digital retail systems blend retail knowhow with technological excellence. We solve the challenges of selling tobacco. Minimise shrinkage and drive revenues, while you benefit from real-time sales information, a valuable point-of-sale digital advertising platform and transformed store operations. Contact us and take control of tobacco today. Discover today how our digital retail systems can give you control of tobacco and transform your point of purchase. Arrange to meet us, visit our showrooms or find out more about our innovative technology.

SALES@VDMS.COM.AU | (02) 8507 3009 | VDMS.COM.AU

USA INSIGHTS

HOWLAND BLACKISTON Principal, King-Casey

The leading QSR and fast casual brands develop a well-documented menu strategy linked to highlevel business objectives.”

MENU STRATEGY MODELLING PART 1 How Menu Items Will Grow Your Business — by Howland Blackiston, Principal at King-Casey

ost C-stores now know that the right food service offerings can make a major, positive impact on the bottom line. Food quality is clearly a good place to start, but there are many other aspects of the equation to consider. For example, thoughtful merchandising of menu items can make the difference between lacklustre results and brilliant success. Food and beverage communications in the store must be attractively designed, easy to read, and informative. And while these basics are important, they are not the ultimate difference-maker. That distinction lies with menu strategy. Quick Service Restaurants (QSR) and fast casual brands have spent roughly the last 50 years examining every aspect of customer behaviour in quick service dining environments. Their experience offers C-stores a short-cut to foodservice success. Critically, they learned long ago that they need to approach the merchandising of their menu offerings with the same rigor as they use to develop a business plan. Selling food and beverage is not a function of design. It is a function of strategy, and menu strategy modelling is a proven approach that will benefit any C-store that wants to optimise its food service platform. 58 June/July 2018 | C&I | www.c-store.com.au

WHEN IT COMES TO YOUR MENU, THINK STRATEGICALLY The leading QSR and fast casual brands develop a welldocumented menu strategy linked to high-level business objectives. This is a document that sets forth how the menu products are prioritised and how they help the brand realise its business objectives. The menu strategy is used to guide all in-store food service merchandising (posters, banners, window clings, and of course the menu board itself). The menu strategy can also help identify what new menu items should be developed, and the items that should be eliminated. The menu strategy establishes product priorities and helps the brand decide which communications will best help achieve the desired business results. Creating and agreeing on a menu strategy is a critical first step in how worldclass food service communications are developed.

DOES YOUR C-STORE HAVE A MENU STRATEGY? Be careful how you answer this. When putting this same question to many QSR brands (even some of the really smart ones), they will quickly answer ‘sure we have a menu strategy’-but, in fact, they don’t. When digging a little deeper, we find that what they

USA INSIGHTS think is a strategy really isn’t. You don’t have a menu strategy unless you can answer ‘yes’ to every question on this simple test: 1. Has each menu item has been prioritized based on its importance to the brand? 2. Do you have a specific action plan for how each key menu item and/or category will contribute to the brand’s business performance? 3. Do you have the details in place to actually execute the plan? 4. Do you have specific goals and measures in place to evaluate results? 5. Has the Menu Strategy been shared throughout the organization? 6. Is the Menu Strategy is understood throughout the company?

HOW TO CREATE A MENU STRATEGY The process for menu strategy modelling is similar to strategic business planning, which is something already well understood by most managers- setting goals, prioritising them, and creating a plan with specific actions to achieve them. In this case, we set business goals relative to menu items; we prioritise these goals (not all are of equal importance); and then execute a plan via specific actions. When creating a Menu Strategy, a high-level team approach is helpful- you get valuable input across the organization and, importantly, you get consensus and buy-in from your colleagues. A Menu Strategy team typically includes key brand personnel: CEO, CFO, CMO, Operations, Food Service and R&D. Be sure to identify and agree on those members of the team who will be responsible for publishing and implementing the new menu strategy. Do your homework before creating a Menu Strategy. There’s some up-front work to do before the team works out the details of a new menu strategy. The inputs are varied, and they are all business-centric. They typically include the following: 1. Review Your Current Menu Strategy. Identify the objectives and strategies you have now relative to your food and beverage offerings. These may be documented or you may need to document them. What you have now is your starting point.

2. D etermine Market Needs. What’s trending within the industry? Include competitive food service concepts (such as QSR’s, Fast Casual, and supermarkets). What are the drivers within C-stores specifically? 3. U nderstand the Competition. Develop an understanding of the food/beverage landscape and the offerings of your key competitors. See where your brand stands relative to the competition from a menu offering standpoint. It will help determine if your brand has distinct advantages which can be capitalized. Conversely, it can identify disadvantages that represent threats that must be addressed. Again, don’t forget that your competitors include non-C-store concepts (QSR’s, Fast Casuals, supermarkets). Anyone doubting the ability of C-stores to compete with QSRs need look no further than the recently-released Market Force Information annual consumer study of America’s favourite quick service restaurants, which ranks the leaders in burger, sandwich, Mexican, pizza and chicken brands. For the first time, a C-store finished first in the sandwich category. Wawa, which operates more than 790 stores on the East Coast of the USA, finished well-ahead of competitors such as Panera Bread, Subway and Arby’s, in their composite loyalty score. It also finished first in the ranking for value and second for speed of service. 4. I dentify Economic Factors. What is the current economic climate? What is the outlook for the next 2-3 years? Look at broad economic indicators and consumer trends. 5. U nderstand Regulations. What legislations will impact your brand? For example, the new U.S. menu-labelling legislation has implications for Menu Strategy (i.e. do we need to develop lower calorie menu options?). 6. R eview Technology. What is the latest equipment and technology? What technology is required to positively impact your Menu Strategy from the standpoint of quality, cost, speed and customer convenience? 7. C onsider Operations. Operations are a critical factor in determining your brand’s Menu Strategy. How about drive-thru? Delivery? Staffing levels? Do you have knowledge of production line set-up? These and other key operational factors must be considered prior to developing a new Menu Strategy. C&I

When creating a Menu Strategy, a high-level team approach is helpful— you get valuable input across the organization and, importantly, you get consensus and buy-in from your colleagues.”

King-Casey is a premier international branding and design consultancy (www.king-casey.com) specializing in QSRs and C-stores. Howland Blackiston gave the keynote address at the AACS annual conference in 2017 and hosted the Australian delegation that visited leading edge C-stores in Florida in the same year.

June/July 2018 | C&I | www.c-store.com.au 59

OPINION

BRETT BARCLAY Director - Convenience Measures Australia

The process of improving the category management process will depend on the ability to get better data however, suppliers and retailers need to take a more collaborative approach as well.”

THE CHALLENGE IN CONVENIENCE WITH THE CATEGORY MANAGEMENT PROCESS W

hile I write most of my articles about the convenience shopper and global trends, we also measure and benchmark both retailer and supplier performance in the channel across several measures. Our COVIN 360 programme measures 5 Key areas: • Personnel • Category management • Retailer execution/Supplier marketing • Supply chain • Business practices I wanted to focus the article today on category management as for both retailers and suppliers category management is rated in the top two categories for importance, yet rates in the bottom two in performance, so what is the issue? Firstly, the convenience channel has come a long way in terms of sophistication and understanding the role of category management, yet the biggest challenge seems to remain the access to quality data to support the process. From a supplier perspective the ‘old days’ of having a brand led category strategy are long gone, you simply can’t focus on delivering insights around your brand without understanding the broader category perspective, yet we still see this happening today. From a retailer’s perspective you simply can’t be focussed on delivering just ‘what you think’ or have a ‘pay for space mentality’ as at the end of the day your shopper/consumer must be what the focus is all about, if you get this right it will drive both top and bottom line success. Category management needs to be a collaborative process between retailer and supplier, to drive business performance and drive better outcomes for the customer. The challenge some suppliers have is understanding their role in the process and potentially this comes down to a potential lack of clarification from retailers. Suppliers tend to be put into three partnership categories strategic, collaborative and transactional and the role of these categories is very different. A Strategic partner doesn’t have to be the biggest supplier within a category, it is one who demonstrates

60 June/July 2018 | C&I | www.c-store.com.au

a willingness to partner with the retailer and show a breadth of knowledge across the broader category they represent, with the right teams to support the process. They also need to demonstrate an approach that while they are representing the best interests of the company and the brands of their employer, that they have a clear understanding of true partnership within the category management process, including the use of data and insights. A collaborative partner is one who demonstrates capability of the above areas however, potentially doesn’t have the level of support or sophistication to drive the category management process. There may also be an unwillingness from the retailer to share the level of depth required based on a ‘trust to deliver’ which could be resource or capability led. These suppliers are still very important to the category management process as they can be often the sounding board for the higher-level decisions. Finally, a transactional partner is often left out of the category management process however, can be a disrupter to it through unique products although tend to lack the resource, capability or insights to support it. So, for the convenience channel to get better at the process of category management we know that providing relevant data is going to be first step from a retailer side, as this is the lowest performing measure across the whole COVIN 360 programme. For suppliers taking a category approach is the first step while providing relevant insights to support the process, is a must to improve. This doesn’t mean coming in with grocery data however, does include relevant global trends. The process of improving the category management process will depend on the ability to get better data however, suppliers and retailers need to take a more collaborative approach as well. Understanding your role and the level of sophistication required will be the key and as a business we can always help and support companies with the strategy required to be better, through our programme results or our channel experience. C&I

Taste the Difference Modern aluminium, recyclable bottle Low in Sugar Low in Fat Packed with Flavour Get your caffeine hit differently Long Shelf life 12 units per carton.

Coconut Milk Iced Coffee made from deliciously creamy ethically sourced coconuts.

To Place an Order Or For Further Information call 1300 776 225

Store ambient,

serve chilled.

OPINION

DOMESTIC VIOLENCE AND CHARLES WATSON Senior Adviser Workforce Guardian

charles.watson@workforceguardian.com.au

Employers also need to recognise that employees may still seek to utilise paid personal leave or annual leave so as to deal with family and domestic violence related issues.”

THE MODERN AWARD SYSTEM

BACKGROUND

he Fair Work Commission has been reviewing the modern award system since 2014. The review has encompassed a range of workplace related issues raised by interested parties including family and domestic violence. After having considered this issue and reviewed a plethora of decisions the Full Bench of the Fair Work Commission has recently ruled that this issue will be covered within modern awards. The effects of family and domestic violence are far reaching and extend beyond the individual directly affected. It also affects their families and the general community, of which employers are a part. The issue has real impacts on employees and employers in the workplace. Employees who experience family and domestic violence often face financial difficulties such as relocation costs or becoming a sole parent. Those individuals, primarily women, may also suffer economic harm as a result of disruption to workplace participation. The effects of family and domestic violence are far reaching and extend beyond the individual directly affected; to their families and the general community.

THE DECISION

In its decision the Commission has determined that workers covered by modern awards will now be able to access five days of unpaid domestic violence leave a year. This unpaid entitlement will be available to both permanent and casual workers and will be available at the commencement of each year of service but will not accumulate from year to year. As part of the decision, the Commission denied the union movements push for such leave to be available on an uncapped, paid, per occasion basis, but the amount of leave is still higher than the two or three unpaid days per year as suggested by employer bodies. Although this is a very recent decision, the Federal government has intimated that amendments to the National Employment Standards within the Fair Work Act may take place so as to ensure that such an entitlement is available to all national system workers. The other side of politics has also thrown support behind the issue and potential legislative amendment so as to cover the field.

THE EMPLOYER TO DO LIST

At the time of drafting this article the model term that is to be interleaved into modern awards was not yet finalised. Nonetheless, employers should give this issue some consideration as to its possible effect on current 62 June/July 2018 | C&I | www.c-store.com.au

workplaces policies, practices and how such an issue should be handled if it arises. Further, employers will also need to consider whether they should undergo specific training or whether they need additional resources. On this point we recommend contacting the white ribbon organisation whose aim is to promote awareness of this issue and drive strategies for the prevention of men’s violence against women. If employers have leave related policies they should look to revise them by incorporating or at least referring to the new award entitlement. It may also be of benefit to employers to clarify the entitlement with their employees as well as how the new entitlement will interact with existing leave policies and processes. Once the model term has been settled, employers will also need to consider what evidence they would require if an employee seeks to utilise such unpaid leave. The current expectation is that the standard of evidence will be in keeping with the current Fair Work Act requirement relating to personal leave, whereby an employer can require evidence that would ‘satisfy a reasonable person’ to substantiate the leave claim. It has been suggested that documents issued by the police force, a court, a doctor (including a medical certificate), a lawyer or a statutory declaration may be appropriate. Employers also need to recognise that employees may still seek to utilise paid personal leave or annual leave so as to deal with family and domestic violence related issues. Finally, employers need to recognise that once the model provision has been interleaved into the modern awards, the subject matter then becomes a workplace right. Employers will need to apply some sensitivity and caution so as not to be seen to be taking adverse action against an employee who is seeking to exercise a workplace right. As always, we recommend employers document their decisions and actions on these and related issues so as to rely upon them at a later time.

FINAL WORDS

Domestic related violence is unacceptable in any society, and particularly a civilised one such as Australia. It is concerning that in the 21st century; trustworthy statistics evidence one in four women have experienced domestic violence. It arises from one individual’s attempts to control or dominate other people, psychologically or through the use of physical violence. While some employers may not feel responsible this decision from the workplace umpire is a response to the issue. C&I

OPINION

REMOVING BAD FRICTION, ENHANCING GOOD FRICTION. PLANOGRAMS T

DARREN PARK CEO United Convenience Buyers

Well produced and quickly activated planograms have the capacity to increase sales, but they also have the effect of decreasing supply chain and store costs at the same time.”

he Australian Convenience trade is under assault. From high energy prices to channel blurring and of course the growing desire to become even more convenient – complexity is growing. Creating the ultimate retail environment that communicates your brand, attracts the right customers and encourages purchasing behaviour is an art. Managing a retail store filled with a combination of part and full-time employees starting shifts at different times, poses challenges with consistency in execution even on the best days. I want to share my observations from both Australia and overseas on friction or more importantly identifying bad friction and sharing areas of reducing its impact. So, what is Friction? Delivering one touch service and shopping experiences are big sources of competitive advantage, but all too often, shopping journeys continue to be punctuated with friction points that turn off shoppers and negatively affect retail performance. Friction also exists between retailers and suppliers when we talk about compliance. If we could execute seamlessly, how much more value could we create together?

PLANOGRAMS

Planograms are almost the home of friction. Well produced and quickly activated planograms have the capacity to increase sales, but they also have the effect of decreasing supply chain and store costs at the same time. We also hear quite a bit from suppliers about planogram compliance, which is their term used to communicate that the planogram in store, matches the suggested retailer version. There’s no doubt that both our interests align, we want to satisfy shoppers with a range that meets their convenience missions and suppliers want to as best as possible ensure that their products are a part of that too.

SALES BENEFITS

As convenience operators, we make conscious decisions to not range every SKU that every customer, has ever asked for. We decide to range a balanced assortment, using data from suppliers, retailers and our own insights. Increased sales can come from: 1. Making it easier for shoppers to buy best-selling items by giving them more space and an optimal location. 2. Better shelf availability. Fitting space to sales reduces refilling work and lost sales from out of stocks – customers cannot buy items if they’re in the back room or still in the warehouse and not on display. Sales are maximised through creating planograms by store type and size, ranging the top SKU’s across a convenience range. 64 June/July 2018 | C&I | www.c-store.com.au

The most useful approach is to follow the retailer planograms supplied. Most Merchandise Managers review planograms twice each year for the most important categories, these tend to be a major review when many changes (new additions, space changes and even deletions) are communicated and a minor review where we may make subtle space changes and also add any relevant category NPD.

COST BENEFITS

Timely implementation and maintenance of planograms at store level drives costs down in two ways: 1. Increases efficiency in stores and the overall supply chain 2. Decreases stock-related costs such as inventory carrying cost and wastage Efficiency increase in store shelving space and the overall supply chain offers the biggest efficiency gains. Having shelf space configured accurately to incoming stock means that each replenishment delivery can be filled almost immediately, with only a minimum of stock held in your backrooms. Costs are lower because: 1. Significant excess stock doesn’t have to be taken to the stock room after filling the shelf to capacity 2. Fast-selling products need re-stacking less frequently It’s just more efficient working in a stock room that isn’t over-filled with stock. I’ve tripped over more boxes than I care to remember! Think about your supplier, when you are efficient it gives them assistance too. When the store planogram is in place and space matches the demand, orders of various products on the same aisle can be picked simultaneously from your supplier’s DC and delivered together so that shelf replenishment can be done in a coordinated way. The impact on retailers’ costs can be significant. The physical handling of stock can account for as much as 20% -30% of store labour time. Following a planogram that is suited to your store will no doubt save you money and in all probability, make you some in return. In my experience, the costliest stock we can have in store is the stock that isn’t turning. It accumulates costs and possibly even interest without generating profits through sales. By using up-to-date planograms, we minimize the risk of ordering inventory that is not recommended. In my time I have made some costly errors. Using an up to date planogram is not only good for ensuring we meet shopper’s needs, it also acts as a reminder to me, that maybe I should think twice before ordering that very special supplier deal! Executing correctly and striving for planogram excellence will not only keep your existing customers happy, you’ll also be setting up your store for success for both today and tomorrow. C&I

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Ready? STRICTLY CONFIDENTIAL AND FOR INTERNAL USE ONLY DO NOT SHOW TO CUSTOMERS. Opt in via SMS by 14.08.18 to receive bonus data on your first 3 recharges until 30.11.18. Terms and conditions: Internal use only. This pack has been prepared VHA employees and authorised representatives. This pack is not an advertisement and VHA does not approve sharing this with any external parties, including customers. Any ‘in-market’ claims refer only to the service providers featured in this pack. Information in this pack is accurate as of 08.06.18. After this date it is your responsibility to double check the information is still correct in order to protect Vodafone legally as well as its reputation. Not for commercial or resale purposes. All inclusions expire as per expiry period above or upon next recharge, whichever occurs first. 1: Excludes premium services, special and overseas free phone numbers and video calls. Standard Voice Calls to selected list of countries. Countries may change from time to time, see vodafone.com.au/internationalcountries for list of current countries. Fair use policy applies. See vodafone.com.au/fairuse. My Credit, if you have any, will be used for minutes of standard voice calls to selected countries once included allocation is exhausted and for calls to any countries not included in the selected countries list or otherwise included in your recharge. 2: $40 Talk Combo countries are Canada, China, USA, South Korea, Germany, Romania, U.K., Sweden, India, Ireland, Hong Kong, Bangladesh, New Zealand, South Africa, Singapore. $50 and $60 Talk Combo included countries are Canada, China, USA, South Korea, Germany, Romania, U.K., Sweden, Mexico, India, Ireland, Hong Kong, Puerto Rico, Bangladesh, Spain, New Zealand, Argentina, South Africa, Singapore, Norway, Japan, Pakistan, Malaysia, Peru, Indonesia. Calls charged in per minute increments. Customers will use 1000 minute allocation to 15/25 countries first and once minute allowance depleted, customers will use remaining Standard International Minute allowance to Selected Countries. Fair Use Policy applies. See vodafone.com.au/fairuse Excludes premium services, special and overseas free phone numbers and video calls. For all other country rates see vodafone.com.au/idd. My Credit, if you have any, will be used for minutes of standard voice calls to these countries once included allocation is exhausted and for calls to any countries not shown above or otherwise included in your recharge. 3: Available to new customers who, between 08/06/18 and 14/08/18, a) sign up with a $30 or above Talk or Data Prepaid Combo (Eligible Recharge) and b) opt in by texting “BD” to 1263. Bonus data available on your first 3 Eligible Recharges (including when you sign up) before 30/11/18. Bonus: 12GB on $30 Data Combo (3GB included, total 15GB); 16GB on $40 Data Combo (9GB included, total 25GB); 23GB on $50 Data Combo (12GB included, total 35GB); 30GB on $60 Data Combo (15GB included, 45GB total); 12GB on $30 Talk Combo (3GB included, total 15GB); 16GB on $40 Talk Combo (6GB included, total 22GB); 23GB on $50 Talk Combo (9GB included, total 32GB); 30GB on $60 Talk Combo (12GB included, 42GB total). Applied within 72 hours following recharge and opt in. Bonus data has same limitations and conditions as, and expiry will align with, active Eligible Recharge. See vodafone.com.au for Eligible Recharge terms. Not transferrable, redeemable for cash or available with any other offer. For new customers prescribed ID and user details must be provided. MV02458 06.18

INDUSTRY NEWS

Mars Australia goes solar Mars Australia has signed 20-year power-purchase agreements (PPA) with Total Eren to generate the equivalent of 100% of Mars’ electricity from renewable energy by 2020. Total Eren is developing and will build the Kiamal Solar Farm near Ouyen, Victoria which will be operational in mid-2019. The Mars PPAs will also facilitate the planned build of a second renewable project by Total Eren in NSW. Mars has contracted for energy to match the electricity requirements of its six Australian factories (Asquith, Ballarat, Bathurst, Wacol, Wodonga & Wyong) and two sales offices (Melbourne & Sydney). “Mars is thrilled to be flicking the switch to solar energy,” said Barry O’Sullivan, Mars Australia. “It’s about making a long-term commitment to a sustainable, greener planet that will benefit our customers, our consumers and the local and global community.” “Mars recognises our responsibility to address the environmental and social impacts of our business,” Mr O’Sullivan said. “Across our entire value chain, our greenhouse gas emissions are equivalent to that of a small country the size of Panama. Tracking and reducing GHG emissions to lessen our climate change impact are key aspects of that responsibility, and provide important opportunities to help drive momentum for global climate action.” Australia as a nation currently is one of the highest emitters of greenhouse gas per capita in the world, with electricity generation being a major contributor. Mars, in partnership with Total Eren, will play a role in reducing Australia’s reliance on fossil fuels – the power generated at the Kiamal Solar Farm will be supplied to the national grid, thereby increasing the ratio of renewable energy in the National Energy Market. Mr O’Sullivan said, “The rise in electricity prices last year accelerated our plans to join Mars sites in the US, UK and 9 other countries in moving to renewable electricity.” “We acted quickly because the price volatility of energy in Australia made renewables the best option for our business, in addition to getting us closer to our commitment to eliminate greenhouse gasses from our operations by 2040.” 66 June/July 2018 | C&I | www.c-store.com.au

Barry O’Sullivan General Manager, Mars Petcare wAustralia picture at the Wodonga factory.

The PPAs are part of a broader Mars journey to become Sustainable in a Generation, with plans to reduce greenhouse gasses across the supply chain by 67% by 2050. Kevin Rabinovitch, Mars Global VP Sustainability said, “Last year we announced we’re spending a billion dollars in the next three years to start transforming our supply chain to get those impact reductions. We’ve made solid progress on the sustainability of our own operations since 2007, so now we’re in a good position to accelerate work and share lessons with our supply chain partners as we tackle impacts beyond our own operations.” Mr O’Sullivan added, “We have an extensive local supplier network and we’ll be talking to them about how they can help further reduce emissions in our supply chain.” Total Eren CEO David Corchia said, “Total Eren has an ambitious vision for the expansion and development of renewable energy in Australia.” “Partnering with manufacturing thought leaders like Mars Australia is essential and sends a strong message to the rest of the market that now is the time to capitalise on the opportunities offered by renewable power purchase agreements and to drive positive change in the environment.” Mars does not take energy directly from the solar farm to power its operations. By helping to underwrite a part of the project, Mars provided the security necessary to enable the project developers, Total Eren, to expand the solar farm to a planned Stage 1 capacity of 200 MW. In return, Mars will receive the Renewable Energy Certificates (RECs) created by Kiamal Solar Farm, which are transferable for all Mars’ electricity use in all of its Australian facilities. Sam Kimmins, Head of RE100, The Climate Group, said, “Investing in solar power is a sound business decision in light of fluctuating energy costs in Australia. By adding renewables capacity and engaging suppliers, leaders like Mars can spur wider corporate action that can shift the local market away from fossil fuels and start bringing down the country’s high emissions.” Mars partnered with Commodity Risk Solution, LLC, a global energy market advisor, to structure and deliver an innovative corporate PPA that will provide a lasting economic advantage. TFS Green are pleased to have been able to broker the Kiamal Project to Mars as part of their new corporate PPA services platform – Renewable Energy Hub.C&I

INDUSTRY NEWS

Snack Brands Australia Team in disguise - Ross McHugh, Richard Kaiser, Shane Anning, Steve Misquitta, Bobbie McCartney, Glen Vanderwater, Simon Tietz

The Distributors Mid-Year Conference - a walk on the wild side The Distributors Members, Management Team, Suppliers and Customers gathered in Adelaide, City of Churches, for the group’s Mid-Year Conference and Trade Show held May 8-10, 2018. The conference program was packed with group meetings, presentations and break-out sessions. Highlights included Complexica’s AI Business session focusing on big data to optimise sales and marketing activities, Jeff Rogut’s AACS State of the Industry Report presentation and the ever popular five minute supplier speed-presenting. Suppliers had the opportunity to blitz present to seven-to-eight of The Distributors Members at a time in each rotation. The Distributors Gala Dinner at Adelaide Zoo was a wild affair with the industry totally engaged with the jungle safari theme. Pre-drinks in the Intercontinental before transferring to the zoo, provided great entertainment for hotel patrons. The Distributors General Manager George Tsapoutas said: “It was incredible to see the lengths that our Suppliers and Members went to in selecting their costumes”. 68 June/July 2018 | C&I | www.c-store.com.au

Animal onesies were a popular choice and proved beneficial given the cool weather. Safari suits with pith helmets, Steve Irwin look-alikes; animal facepainting; animal ears and tails, and even suits made from zebra and leopard print fabric were among the costumes. “We did not have a best costume award which was a shame but it would have been hard to choose a winner,” Mr Tsapoutas said. The evening started early with champagne and canapes in the Giant Pandas enclosure. Adelaide Zoo proudly cares for Australia’s only Giant Pandas, Wang Wang and Fu Ni, and guests had the chance to view the beautiful and endangered pandas during feeding time while the zookeeper shared facts about the breeding program. Guests were divided into smaller groups to see the feeding of the Sumatran tigers and African lions, while others experienced native wildlife with the opportunity to pat a snake, or quokkas and bilbies, before heading into a dazzling marquee erected in the centre of the zoo for dinner. This was the first marquee of its type for Adelaide Zoo.

INDUSTRY NEWS

Steve Hochbaum - JB Metropolitan, Matthew Ellis – Smiths, Mark Campbell – Smiths

The 200 strong crowd were entertained by Emcee Greg Ward with performances by Ding productions direct from the African Jungle. Winners of The Distributors Annual Awards recognising Supply Partners and Members were announced and toasted with delicious Frucor Suntory OVI Lychee Martinis. The Distributors Retailer Trade Show in conjunction with JB Adelaide, FoodPlus and The Distributors Mt Gambier was held at the Adelaide Convention Centre the following afternoon with 46 exhibitors showcasing new product lines, product innovations and trends. The Mid-Year Conference wrapped up on the Friday with guests choosing an excursion to the picturesque wine tasting region of Adelaide Hills and historic town of Hahndorf or the ultimate golf experience at the prestigious Kooyonga Golf Club, host of five Australian Opens and nine South Australian Opens. C&I

THE DISTRIBUTORS 2018 AWARD WINNERS

Best New Product Launch: Yowie Series 2 from Universal Candy Supplier of the Year up to $10 million: CTC Australia Supplier of the Year over $10 million: The Smith’s Snackfood Company Member Celebrating 15 Years Service Award: Geoff Morris Wholesalers (The Distributors Mt Gambier) Member of the Year up to $15 million: Accredited Distributors Geelong. Member of the Year $15 million and above: JB Metropolitan Distributors

Ding Productions entertaining the crowd

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INDUSTRY NEWS

CALTEX PARTNERS WITH THE SOCCEROOS

altex has partnered with the Socceroos to power Australian football through a four-year sponsorship deal with Football Federation Australia. The sponsorship deal has seen Caltex secure naming rights for the Caltex Socceroos and also expands to include further partnership with both the men’s and women’s national teams. The partnership will also see the release of new promotions and deals within store with Vortex premium fuels for Caltex customers and football fans alike. Caltex approached Pacific Optics about partnering with them to coordinate a merchandise program to support this major world sporting event within their stores. Pacific Optics General Manager Sales Theo Foukkare said: “The Soccer World Cup is truly a global spectacle that cuts across generations and supported in every state nationally”. “Given the alignment as the naming rights sponsor for the Caltex Socceroos, this is a once in a lifetime opportunity to really support the great Australian sporting spirit,” Mr Foukkare said. “Outside of the fantastic efforts to rebrand 5 of their stores to CAHILLTEX, the Caltex network has really got behind activating this licensed merchandise range in stores with some great displays to make a real statement to their customers. “In addition to this, I am sure that there will be some very exciting promotional activity across the network to further support the Caltex Socceroos with some special offers— watch this space.” Caltex are the exclusive supplier in P&C of a range of Official Licensed merchandise, apparel and novelty products to support the Caltex Socceroos. 70 June/July 2018 | C&I | www.c-store.com.au

The range includes: • Trading Cards with 64 unique cards to collect ($3.99 RRP) • Collectors Album for the Trading Cards ($20 RRP) • High Bounce Ball ($5 RRP) • Mini Scarf for your car window ($7 RRP) • Full Size Supporter Scarf ($25 RRP) • Reversible Crossbar Beanie ($22 RRP) The Licensed merchandise is available from 14/05/18 for an 8 week period through over 500 stores across the Caltex network.

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PETROL NEWS ROUNDUP INSURING AGAINST RISKS IN YOUR BUSINESS DAN ARMES Founder of ServoPro

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.”

unning and managing a petrol station takes a lot of time and effort. The day to day tasks required to keep the business running often take up most of your time. This leaves little time for aspects of your business which are as important, but easy to put off. 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 highlyregulated and complicated industry with unique risks. Many insurers don’t understand the industry and therefore provide policies which just 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

72 June/July 2018 | C&I | www.c-store.com.au

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 make sure 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 or burglary.

IMPACT DAMAGE

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 type of insurance cover, the petrol station owner can be left to cover the costs.

FUEL CONTAMINATION

Fuel contamination is every petrol station operator’s worst nightmare. It is best practice to regularly check the integrity of your fuel that can become contaminated for a variety of reasons. We have seen occurrences of customers filling

PETROL NEWS 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. In regards to environmental insurance, Mr Sudale said: “Petrol station owners should check their policies to make sure 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”. Mr Sudale also pointed out the importance of lodging any claims as soon as an incident occurs. “The quicker the claim is lodged, the quicker the insurer can work to pay your claim. Our aim is to get your claim processed and paid as quickly as possible so you can get back to running your business,” he said. 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, 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, and 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 actually cover you. If you are confused by your policy or are having trouble comparing policies, talk to an expert. C&I 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 happening can run into the hundreds of thousands of dollars. Petrol station operators must be covered for this risk under their insurance policy.

THEFT AND BURGLARY

Theft and burglary is 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 they are not covered for the theft of cigarettes after we have examined their insurance policies. Allan Sudale, Managing Director at Sudale Insurance Brokers is ServoPro’s partner for insurance and is a specialist in the petrol and convenience industry. Allan says that 95% of the insurance policies he looks 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. I have seen it many times where petrol stations are not covered for the theft of cash which is not included in a generic insurance policy and is a separate section that must be included,” said Mr Sudale. Business owners need to be aware that they must also follow certain steps to make sure they are complying with their insurance policy. Mr Sudale used the example of fire extinguishers that require regular monitoring. “Fire extinguishers must be checked every six months by a licensed 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 regularly checked, your insurance claim may be void under the fire section,” Mr Sudale said. 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

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June/July 2018 | C&I | www.c-store.com.au 73

PETROL NEWS

Coles Express most expensive petrol

According to FuelWatch, there are still 25 sites in the metro area selling petrol for below to 140c/l.

Last Melbourne CBD petrol station to be replaced

Difference between each major retailer’s annual average E10 price and the market annual average E10 price in Sydney in 2017. Source: ACCC

A report by the Australian Competition and Consumer Commission (ACCC) has revealed Coles Express is charging motorists, on average, more for their petrol than any other retailer. Following a request last year by Treasurer Scott Morrison, the ACCC began to investigate pricing within the petrol industry. The report showed that Coles is charging up to nine cents a litre more in capital cities than independent retailer, 9news.com.au reported. It also averages four cents per litre more than Woolworths. ACCC Chairman Rod Sims told News Corp: “I was surprised that Coles and BP would be that much higher priced than Woolworths, 7-Eleven and United”. “Those differences are huge — we are talking up to 9c/L,” Mr Sims said. A spokesperson for Coles defended the company: “In addition to the 4c-per-litre discount voucher received when spending at least $30 in Coles supermarkets, customers can save 10c per litre by spending a minimum $20 in Coles Express stores”. “The discounts can be used separately or combined to save a total of 14c per litre,” the spokesperson said. According to 9news.com.au, in Sydney, Speedway petrol stations are the cheapest and in Melbourne it is United, 7-Eleven, Woolworths and smaller independents all charged below the average of $1.28. “Adjusting buying habits can save motorists a lot of money,” Mr Sims said.

Perth petrol prices jump

Petrol prices in Perth have hit a four-year high. The price of unleaded petrol rose 19 cents, with the average price hitting 158.3 cents per litre. According to TheWest.com.au prices have not been this high since July 2014. Premium unleaded is being sold at 171.9 cents per litre on average, with diesel at 153.7c/l and LPG at 93.2c/l. TheWest.com.au said that most Puma sites across the area had increased their unleaded petrol price overnight to 163.9c/l, most BP, Caltex, Caltex Woolworths and Coles Express sites lifted their unleaded price to 161.9¢/l. 74 June/July 2018 | C&I | www.c-store.com.au

The 7-Eleven petrol station on Victoria street in Melbourne’s CBD is set to be demolished. The demolished building will make way for a 20-storey apartment, Timeout.com reported. The $150 million project will house 70 new apartments, along with commercial and hospitality spaces on the ground floor. The development will also be home to new trees and greenery, with the development being built as part of the City of Melbourne’s Urban Forest Strategy. Perri Projects managing director David Scalzo said: “A building on a prominent site needs a pretty well thought out and diverse design idea, it’s got to be about more than what it looks like from a long distance”. “And that’s why we have put in the level of thought to the boulevard and street use,” Mr Scalzo said. City of Melbourne planning portfolio chairman councillor Nicholas Reece said: “Motorists should think about filling up at the numerous service centres on the way to the city, or better still, catch public transport”.

Caltex investigates alternative energy sources Caltex is investigating alternative energy sources in response to a decline in the need and demand for petrol the Sydney Morning Herald reported. At Caltex’s annual general meeting, chairman Steven Gregg said: “We will look to transform to other forms of energy and other forms of business”. “There is no question electric vehicles are coming, the only question is of how long they will take,” Mr Gregg said. Demand for petrol will decrease over time, as electric and self-driving cars dominate the industry. “It’s not about a quick fix, it's front and centre of mind for the board,” Mr Gregg said. Caltex visited American electric car and charging station manufacturers in 2017 and is currently in talks to add charging stations to service stations. Following a trip to South Korea in 2016, Hyundai manager of future mobility and government relations Scott Nargar said it was apparent that more thought needed to be taken regarding “fuels of the future”. “We got to drive the previous generation fuel cell cars and drive electric vehicles and autonomous vehicles and we said ‘what’s the future of an oil company site in Australia if the industry isn’t planning right now for the transport fuels of the future. Our customers of the future won’t come in looking for petrol to put in the vehicle, they’re going to want electricity or they’re going to want hydrogen. If you want to keep selling milk, bread and chocolates you need to start thinking about selling the fuels of the future across the forecourt’,” Mr Nargar said. Analysts at Morgan Stanley said electric vehicles “have the potential to completely disrupt Caltex’s business over the long term”.

PETROL NEWS

Dover Fueling Solutions Installs First ProGauge 3D Laser Scan Automatic Tank Calibration Unit in Indonesia

Dover Fueling Solutions (“DFS”), a Dover company that delivers advanced fuel dispensing equipment, electronic systems and payment, fleet systems, automatic tank gauging and wetstock management, is pleased to announce that it has installed its first ProGauge 3D Laser Scan Automatic Tank Calibration unit in Surabaya, a city on the Indonesian island of Java. The 3D laser scanner was purchased by PT Panji Perkasa, one of DFS’ valued Indonesian distributors. PT Panji Perkasa has high expectations in terms of offering the tank scanning and associated tank gauging solutions to the Indonesian market. DFS has been working with PT Panji Perkasa since the initial transaction. DFS’ Fergus Heading, ProGauge Business Development and Product Manager, has been providing technical training to the team at PT Panji Perkasa, educating them on the unique operational functionality of the laser scanner. This cutting-edge solution uses state-of-the-art technology to accurately and quickly determine the exact volume of liquid in fuel tanks, producing a detailed representation of the inside of any underground tank, regardless of the presence of any flammable liquids or vapours. The 3D laser scanner is then able to automatically provide a precise strapping table, which once uploaded to the automatic tank gauge (ATG), provides an accurate and comprehensive reconciliation report of the fuel stock on site. Edi Prasadja, owner of PT Panji Perkasa, stated, “Indonesia has a huge volume of aged tanks, many with inaccurate strapping charts. Our ability to

scan the tanks will not only ensure improved environmental protection in our country but will be a key enabler for PT Panji Perkasa selling Progauge’s ATG solutions to a market desperately in need of precise tank measurements.” The Rest of Asia (ROA) team working under the direction of Chris Cooper, General Manager DFS ROA, will be providing local support and advice to PT Panji Perkasa as they embark on this new and exciting venture. The implementation of the 3D scanner in Indonesia re-confirms the increasing global demand for a quick, accurate and safe tank measurement solution. For more information about the 3D Laser Scan Automatic Tank Calibration service, visit www.doverfuelingsolutions.com.

(L-R): Fahmi Ferbrian (PT Panji Perkasa), Fergus Heading (DFS), Edi Prasadja (PT Panji Perkasa), Thomas Gan (DFS)

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ONLINE ROUND-UP “We are thrilled to be launching Ruby chocolate and believe Australians are going to love it,” Ms Yuen said. “Our iconic batch baked KitKat wafers form the perfect base to complement Ruby’s naturally occurring fruity notes,” she said. “Since opening our doors, we’ve delighted thousands of guests with our unique creations and we look forward to doing so once again with our delectable Ruby offerings – perfect for even the greatest chocolate aficionados.” Barry Callebaut’s chief innovation and quality officer Peter Boone said the colour comes from the bean in its natural form. “It’s a dedication to years of research into the artisanal processes of making chocolate. But it was also luck that we found this potential in the bean 13 years ago,” he said. Mr Boone also said the new creation will fit perfectly into the “hedonistic indulgence” trend of millennials. A four-finger ruby chocolate KitKat bar is currently available from Tesco’s in the UK, as well as variations available in Japan and Korea.

Barista Bros launches Café Creations Barista Bros has announced the launch of its latest range of flavoured milk – Café Creations – inspired by decadent flavours and desserts. The range will showcase the brand’s unique approach to taste creation with three new flavours including Toffee Almond Panna Cotta, Butterscotch Brownie and Dark Chocolate Fudge. The launch follows research the brand conducted which highlighted the demand for indulgent flavour profiles to attract new male and female consumers to the category. The research reinforced the successful launch of Barista Bros Mocha in 2017. The campaign will support Barista Bros superior taste credentials by enhancing the product experience through high impact placements, in-store, out of home and online. Out of home will have a key focus, with hundreds of panels displayed across five major Australian cities, asking consumers to ‘indulge a little'. A significant sampling campaign kicked off with partnerships secured with Deliveroo and Uber Eats. Customers using the food delivery platforms will be gifted with a Barista Bros product as part of their purchase. In addition, street sampling initiatives and office drops will be executed nationwide. Jason Wu, Brand Manager, Barista Bros, said: “We are thrilled to launch our new range in market, playing into the hands of the dessert lovers around the nation. With these new flavours, the deliciousness is in the detail. We are excited to expand the Barista Bros portfolio.” All three flavours are available nationwide in grocery, retail, petrol and convenience stores.

Ruby chocolate lands in Australia After its development and initial release, Ruby chocolate is being made available in Australia, exclusively through the Melbourne KitKat Chocolatory. Ruby is the fourth type of natural chocolate, making its pink hue and unique flavour a welcome addition to the category. Developed by Barry Callebaut, the chocolate is derived from processing beans grown in the Ivory Coast, Ecuador and Brazil. The newest addition will be available in two limited release creations including KitKat Chocolatory Sublime Ruby and handcrafted KitKat Chocolatory Black Label Ruby. KitKat Chocolatory Head Chocolatier Connie Yuen said Ruby is an exceptional discovery in the sweet world and a KitKat Chocolatory exclusive. 76 June/July 2018 | C&I | www.c-store.com.au

Doritos goes crackers by expanding further into the snacking category Doritos has announced that its products will no longer be limited to chips and dips. Its newest offering is baked Doritos Crackers, in four flavours offering a mouthful of flavour and crunch. The available flavours include: Cheese Supreme, Mexicana, Texan BBQ and Sweet Chilli and Sour Cream. According to Pedestrian.TV, the original Cheese Supreme Dorito corn chips are the number one selling flavour in Australia so these new Crackers are sure to make waves within the market. Doritos Brand Manager Alison Silver said: “Doritos Crackers are an exciting way to attract a new consumer base to the biscuit category in the form of millennials, who are the heartland of Doritos. The brand has a cult following with the young and hungry and we are thrilled to be able to deliver them with an exciting new way to enjoy iconic Doritos flavours”. The Doritos Crackers are a world first for the brand, and Australians were the first ones to get them. The range is stocked nationally in grocery as well as petrol and convenience.

www.allfect.com.au For inquiries, contact us on PH:(02) 9748-1100 EMAIL: info@allfect.com.au

ONLINE ROUND-UP

Hollier Dicksons bought by PFD Food Services Pty Ltd

PFD Food Services Pty Ltd has acquired the Hollier Dicksons business. Hollier Dicksons is a national wholesale distributor which specialises in confectionery, snack foods and beverages. It operates warehouses in all mainland states with its head office in Sydney. This is an exciting development for both PFD and Hollier Dicksons, as their confectionery expertise and market knowledge combined with PFD’s wider national distribution network will benefit the customer bases of both businesses. This brings a new category into PFD’s product range and will bring PFD into the confectionery segment as a national participant. Hollier Dicksons are the distributors of many well-known products and brands including; KitKat, Hershey’s, Cherry Ripe, Darrell Lea, Reese’s, Wrigley, Mars, Red Bull, Go Natural, Detpack and Hillier’s. From early April 2018, the Hollier Dicksons business has continued to operate as usual with current senior management in place, ensuring stability and ongoing customer service without change.

With a delicious wild tropical flavour, the new 400ml range is refreshingly carbonated and served chilled. The range joins the original 110ml version, with a fiery ginger lemon-lime flavour that can be enjoyed at room temperature or chilled. The original shine+ 110ml shot that was launched just 18 months ago is now available in over 2,000 stores across Australia including Woolworths Metro, IGA, Harris Farm, On The Run and Zambrero Mexican restaurants among hundreds of cafes, grocers and pharmacies. The new 400ml range will be rolling out into existing stockists over the coming months following the exclusivity in Caltex Star Mart. Enticing consumers with no more mental blanks or forgotten names, shine drinks provide the solution to switch on and think a little brighter.

It is World Milk Day so go on, Give a Mate 8

Caltex Star Mart takes a ‘Shine+’ to new beverage

One of Australia’s fastest growing health drink companies; shine+, is leading the way in the world of drinkable nootropics, launching nationally a new 400ml range this week. Following a successful trial, the new range will now be available in the 650+ Caltex Star Mart stores across the country. Australia’s first smart drink company combines natural and functional ingredients that have been shown to aid mental clarity and concentration. Whilst many assume nootropics are only synthetic, shine+ contains only natural, earth grown botanicals that have been used for hundreds of years with no artificial additives, no added sugar, ensuring both safety and health benefits. A hot topic amongst wellness trends this year, the nootropics industry has risen steadily since the 1970’s, providing an alternative to energy drinks, coffee or other caffeinated beverages. From a biohacking method only seen amongst the pioneers in Silicon Valley to now mainstream appeal amongst students, professionals and the health conscious, the market once valued at USD 2.3 Billion in 2015, is expected to reach USD 11.6 Billion by 20241. The key functional ingredients and natural nootropics in the shine+ 400ml range are Ginkgo Biloba, Turmeric, Green Tea, L-Theanine, Green Coffee Beans and natural B Vitamins. The new range comes in three strengths – each differing in the amount of green coffee beans and equivalent caffeine. The combination of ingredients ensures sustained mental clarity and concentration without the well-known ‘caffeine crash’ or sugar crash. CEO Steve Chapman said: “After we saw the overwhelmingly positive response to our first drink, the 110ml smart shot, we asked our fans what they wanted to see next. The two things we heard consistently was ‘make it bigger’ and ‘make something for the fridges’. I’m humbled by the response to the 400ml, it has been even more positive than we originally planned for”. 78 June/July 2018 | C&I | www.c-store.com.au

World Milk Day was on June 1st and what better way to celebrate the natural goodness of milk than by Giving a Mate 8. Why 8? That’s the number of nutrients naturally found in milks like Dairy Farmers, Pura and Masters. Lion Dairy & Drinks (LDD), who owns and manufactures the Dairy Farmers, Pura and Masters brands believes World Milk Day is a great time to remind all Australians of the natural goodness of milk. “I reckon we all have a mate who, at some stage during the day, could use some B vitamins when feeling flat, protein for their muscles, or iodine for the brain as part of a balanced diet,” said Darryn Wallace, Lion Dairy & Drinks’ Marketing & Innovation Director. “That’s why we’re suggesting that you share a milk with a mate – in a coffee, flavoured or natural – to show that Milk Loves You Back.” Darryn says many of us may have forgotten how nutritious milk is and the goodness it brings to all the dairy foods we love. “And while most of us know milk is good for us, it’s not a conscious source of nutrition,” he said. Nine out of 10 Australians don’t consume their recommended daily serves of dairy or alternatives as shown by the Australian Health Survey1. “Give a Mate 8 this World Milk Day is a great way to celebrate the inherent goodness of milk,” Darryn added. Last year LDD launched its Milk Loves You Back campaign to remind Australians of the natural goodness of milk. At the time it also released a study showing almost a quarter (21%) of women and 15% of men admitted that their main source of daily dairy was derived from coffee with milk alone.2 “This is the perfect opportunity for all Aussies to reawaken their daily consumption of milk and dairy products,” Darryn said. “Share a coffee with your mate made from milk or if you want to keep it simple, offer an M2GO that they can take home or enjoy on the go!” For more information visit: www.milklovesyouback.com

Petroleum equipment and services

Action Installation & Services

ELGAS SWAP’n’GO®

Action Installation & Services was formed in 2006 when Michael Mintilakis and Ron van der Meer decided to create an installation and service company that was second to none. Over 50 years of combined fuel industry experience and knowledge has enabled them to build a business which continues to lead change in the downstream petroleum industry. Action Installation & Services continually strive to achieve the highest standards of environmental and safety performance, through the use of well informed, highly trained people. Action currently employs 40 staff across admin, installation, pump and electronic service. Action Installation & Services strives to satisfy the requirements and expectations of every client every time in a professional and cost effective manner. Regular reviews ensure the quality of all products and services and business operations; and that all employees have appropriate job skills training; and quality management, contractual obligations and ongoing process improvement is maintained.

Elgas SWAP’n’GO® is the leading BBQ gas exchange program brand in Australia. The program offers your business the opportunity to increase sales and profits with a very well-known and respected brand. SWAP’n’GO® also provides your customers with fast, safe and easy transactions. Out-of-date bottles are accepted at no extra charge. You can add to or replace your declining refill sales, and low margins, with a reliable, convenient and secure swap program that has low labour costs for you. SWAP’n’GO® maintains a record of excellence in safety, with comprehensive staff training in the safe handling of LPG. Elgas SWAP’n’GO® is backed by a national network of refilling plants and branches to ensure that your business receives quality service. SWAP’n’GO® also creates a massive summer stockpile to provide uninterrupted service during the seasonal peak periods. Contact Elgas today to become a SWAP’n’GO® dealer.

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

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

Cardtronics

Gallagher Fuel Systems

When you see an ATM in a supermarket, convenience store or Petrol location, there’s a good chance it’s from Cardtronics, a proud supporter of the convenience, café and fuel industries. Cardtronics understand the needs of a variety of establishments and the commercial environments that retailers in the P&C channel face. Cardtronics know that you need your ATM up and running without any issues to service your patrons and provide them with safe and easy access to cash. For your business premises a Cardtronics ATM will mean more customers with cash to spend in store, reduced eftpos fees, 24-hour service and support. It is a fact that a percentage of the cash withdrawn from a Cardtronics ATM is spent on the premises, which will improve your revenue streams. At Cardtronics we know from proven experience that an ATM can deliver more sales to your business. If you want to create more foot traffic in your business, an ATM does that. Cardtronics is Australia’s largest independent ATM provider and part of the global Cardtronics brand. We operate a real 24 hour service, we operate our own technically trained help desk, offering nationwide support with a national network of spare parts warehouses and dedicated in-house technicians.

Gallagher Fuel Systems is a designer, manufacturer and supplier of quality fuel dispensing systems. The innovative PULSE fuel dispenser range combines advanced electronics, corrosion resistance metal work, the highly accurate Tatsuno meter and a modular design that provides flexibility like nothing else on the market today. Demand for on-site comprehensive Vapour Recovery (VR) solutions continues and Gallagher Vapour Recovery solutions comply with the most stringent regulations, provide compliance reporting and significantly reduces greenhouse gases on the forecourt. Gallagher Data Centre makes visible via any internet enabled device, real-time transaction information from any dispenser. This is a real game changer in terms of how we view servicing and maintenance, allowing the industry to adapt a proactive approach reducing overall servicing costs. Gallagher’s latest edition to the PULSE range are the 5 product suction pumps and dispensers. The pressure only model offers one of the smallest footprints at only 2100mm. Mixed pressure and suction model options are available with a footprint of 2375mm. Integrated LPG is an added option.

Phone: 1300 305 600 Email: sales@cardtronics.com.au 80 June/July 2018 | C&I | www.c-store.com.au

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

SUPPLY-FIND

Flowsell Flowsell, providers of an innovative gravity-based drink merchandising system, say that when it comes to saving staff time, managing stock and increasing sales, “it’s all about gravity”. Cool rooms with flat shelving, incur a range of ongoing and unnecessary costs. By comparison, Flowsell’s drink merchandising system, reduces labour costs removing the need to double handle products and continually face up product. The system also ensures proper FIFO (first in, first out) stock rotation, reducing product wastage and – better still – fridges maintain an attractive, fully stocked appearance as customers buy throughout the day. The Flowsell full rack drink system is used extensively in all areas that retail drinks from a cool room. This includes service stations, convenience stores, bottle shops and function centres. Other options available from Flowsell include a specialised Retrofit Bottle Slide Kit. This kit enables a customer to convert an existing flat shelf into a gravity feed system. This system has been successfully used in convenience stores, bars, sporting clubs, cafes, bakeries, fast food outlets and anywhere that has a fridge with flat shelves. Flowsell also supplies a gravity feed milk trolley for use in supermarkets with a dedicated cool room. Free your staff to deal with customers in store and let gravity do the grunt work. Contact Flowsell on www.flowsell.com.au or Ph: 03 9708 2276 to find out how you can start saving today.

10 Sonia Street, Carrum Downs, VIC 3201 Phone: (03) 9708 2276 Fax: (03) 9708 2279 Hours: Mon - Fri: 9am - 5pm C&I Aug-Sep 2016.pdf 1 6/07/2016 4:12:53 PM www.flowsell.com.au

Gascorp Pty Ltd – Budget Petrol Budget Petrol, established in 1985 is one of the oldest and largest groups of independent service stations in NSW, with over 60 locations in the Sydney Metropolitan area. Our Retail stores strive to provide our customers with Quality Fuel at Budget Prices. Our Wholesale arm – Gascorp Pty Ltd offers independent operators a business model which enables them to run their own business without interference, while utilising the backing of a competitive, professional and reliable brand. We offer competitive Mobil supplied fuel prices, Valvoline Oil, LPG Supply, In Store Programs, ATMs, Banking Partners and Environmental Regulation Support. We also operate our own fuel transport company which allows us to offer the highest levels of service for fuel deliveries and logistics.

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

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motormouth.com.au June/July 2018 | C&I | www.c-store.com.au 81

PRODUCT NEWS SUPPLY-FIND

North Cross Australia Pty Ltd North Cross Australia Pty Ltd is a multi-disciplinary firm that has offered a wide range of services to the Service Station Industry since 1990. Our body of work is impressive and ranges from design, construction, civil, environmental, specialist petroleum services, demolition and local & statutory authority compliance. We have worked with property owners and site operators for: • Underground Petroleum Storage System (UPSS) compliances. • Fuel System Modifications. • Design, Installation and Commissioning of new Fuel Systems. • De-commissioning and Demolition (Unrestricted Licence) of existing fuel systems (incl Tank Removal or Abandonment). • Asbestos Removal. • General Construction Work. • Civil Work. • Environmental and Remedial. North Cross Australia Pty Ltd ABN 30 130 834 329 Unit 14, 54 – 60 Links Rd, St Marys NSW 2760 Phone: (02) 9673 4004 Fax: (02) 9623 5823 Mobile: Norman Badaoui 0401 564 566 Email: norm@northcross.com.au Web: www.northcross.com.au

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

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

Shipman King Pty Ltd Shipman King Pty Ltd is an Australian designer, manufacturer and distributor of equipment for the service station forecourt industry. Under their ESKAY brand, Shipman King’s long history has enabled the company to become a major supplier of this equipment throughout Australia, New Zealand and the Pacific region. With an extensive product range and ability to service the whole of Australia, Shipman King is truly your one stop shop. Australian owned, Shipman King’s product range includes: • Fill Adaptors and Caps, Dip Cap Assemblies • Upflow Vents, Pressure Vacuum Vents • Dip and Fill Product Markers • Vapour Recover Equipment, Stage 1 and 2 • Overfill Prevention Valves complete with aluminium tube ready for retro fitting • Monitoring Wells and Ground Boxes • Durapipe PLX Polyethylene Piping System • Underpump Containment Sumps and Browning Spill Safe Boxes • Adblue Equipment • Aluminium and Composite Manway Covers • Aboveground Tank Equipment For a complete product range please visit Shipman King’s web site.

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

82 June/July 2018 | C&I | www.c-store.com.au

Petroleum equipment and services C&I Supply-Find is a detailed listing of suppliers of products for resale, business services, maintenance providers, and manufacturers and suppliers of capital equipment for shop and forecourt. It is included in every issue of C&I Retailing Magazine, six times per year to a circulation of around 22,795 businesses. The rate for posting in C&I Supply-Find is $2,950 + GST for one full year (six print issues and 12 months on our website). Bookings are a minimum of one year. For a 1/2 page, the rate is $5,900 + GST per year.

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