JUNE/JULY 2021
CONTENTS
EDITORIAL
June/July 2021
14 06 FACE TIME Brooke Bainbridge, Business Development and Digital Acquisition Manager ANZ, bp Castrol
10 STORE REVIEW Ampol Woolworths Metro Kingsford named the best convenience store in Australia
14 AACS STATE OF THE INDUSTRY REPORT heo Foukkare, CEO, AACS, shares insights from T the 2020 AACS State of the Industry Report
22 LEADERS FORUM Industry leaders share their thoughts on the state of the petrol and convenience industry
46 KOMBUCHA The P&C channel remains hugely important to making kombucha accessible to consumers
50 HOT COFFEE Rising demand for coffee creates opportunity for convenience retailers
54 CONFECTIONERY Confectionery’s sweet success continues through P&C
58 PRODUCT RANGING We bring you all of the latest new product launches
W
elcome to the June/July issue of C&I Retailing Magazine. While life in Australia has largely returned to normal, the COVID pandemic is still presenting challenges all over the world, and as we go to press Victoria has had its seven-day "circuit breaker" lockdown extended for a further seven days. It’s a reminder of how we need to remain agile, flexible, and well prepared for any challenges that come our way. With vaccines being rolled out as we speak, the end is in sight and together we will get through this. Our support and thoughts are with Victorians at this time. When it comes to this issue, it is jampacked with exclusive industry insights, including a six-page snapshot of the 2020 AACS State of the Industry Report, compiled by Convenience Measures Australia, and graciously shared with C&I by Theo Foukkare, CEO, AACS.
The State of the Industry Report shows us that in 2020, store numbers reached an all time high, despite the impact of COVID-19. Technology was fast tracked years in the space of months and has become increasingly important to the P&C channel, and the reality is that staying put is no longer a viable option. You can read more from the report beginning on page 14. Also in this issue, leaders from retail groups, suppliers, and industry associations, share their thoughts on the current state of the industry as well as their predictions on the future, and this begins on page 22. For our Face Time, we hear from Brooke Bainbridge, Business Development and Digital Acquisition Manager ANZ at bp Castrol; and for our Store Review we take a look inside the award-winning Ampol Woolworths Metro Kingsford. We also explore three in demand categories within the P&C channel, including kombucha, hot coffee, and confectionery. We’ve got some great advice on how to boost sales within these categories beginning on page 46. And we are grateful to have opinion pieces from Darren Park, Jeff Rogut, Dan Armes, and Nic Moulis. To our readers, stay safe, look after each other, and we hope you enjoy reading this issue of C&I Retailing Magazine. Cheers, Deb Jackson
70 OPINION Darren Park, CEO, UCB Stores; Jeff Rogut, Advisor, NRA
74 PETROL NEWS Dan Armes, ServoPro; Nic Moulis, Customer Relationship Data
77 INDUSTRY NEWS Smooth Wholesales, AACS Connect 21, New Sunrise, SPAR 4 June/July 2021 | C&I | www.c-store.com.au
Safa de Valois
James Wells
Keith Berg
Ben Curtis
PRIME TIME
Purina Supercoat launches convenient 1.5kg pack size
The market leader in dry dog food, Purina Supercoat, is now available in a convenient 1.5kg pack format through the petrol and convenience channel. The pet care category has been growing and 2020 saw an acceleration of that growth, with many Australians seeing lockdown as a great opportunity to adopt a new puppy or kitten. During this time there has also been a trend towards premiumisation, with pet owners being inclined to spend more on products that they know are made with ingredients that provide better health benefits for their pet. It’s with this in mind that the brand has decided to launch a new convenient sized 1.5kg pack format to cater to those top up shoppers. The 1.5kg Supercoat NPD has an RRP of $10 and the launch is being supported with an above the line marketing campaign on television and social media.
Peters and Nestlé unite to launch a new classic KitKat ice cream
Australian ice cream maker Peters has partnered with Nestlé to bring to market a new twist on the classic KitKat. The new frozen KitKat sticks are covered in a chocolate coating with wafer pieces and feature a chocolate and wafer flavoured centre. Peters Head of Marketing, Andrea Hamori, said: “We know how much Aussies love their favourite chocolate bar, so it’s been a privilege to replicate the classic KitKat taste sensation in frozen form.” The KitKat ice cream sticks are available now in a multipack of four at Woolworths and independent grocers for RRP $8.50. They will also be available through Coles and as a single serve at major petrol and convenience stores for RRP $4.
Smooth Wholesales introduces the A Sugar-free Zengaz Lighter Cube to its range flavour sensation The Zengaz Lighter Cube is a sleek and space-saving way to display Zengaz Jet Lighters and drive incremental sales through the petrol and convenience (P&C) channel. The innovative cube design opens to display three pop-up draws that can house 48 jet lighters. Zingaz Jet Lighters are windproof and can be used in almost all weather conditions. They are refillable and are premium products that come at an affordable price. The lighters come in more than 40 different creative, artistic, quirky, and eyecatching designs and are quickly gaining popularity amongst P&C retailers nationally. Order today from Smooth Wholesales www.smoothwholesales.com.au
Published by C&I Media Pty Ltd (A division of The Intermedia Group) 41 Bridge Road (PO Box 55) Glebe NSW 2037 Tel: 02 8586 6292 Fax: 02 9660 4419 E: magazine@c-store.com.au
Publisher: C&I Media Pty Ltd Safa de Valois Commercial Director: Safa de Valois Editorial Director: James Wells
The Intermedia Group takes its Corporate and Social Responsibilities seriously and is committed to reducing its impact on the environment. We continuously strive to improve our environmental performance and to initiate additional CSR based projects and activities. As part of our company policy we ensure that the products and services used in the manufacture of this magazine are sourced from environmentally responsible suppliers. This magazine has been printed on paper produced from sustainably sourced wood and pulp fibre and is accredited under PEFC chain of custody. PEFC certified wood and paper products come from environmentally appropriate, socially beneficial and economically viable management of forests. The wrapping used in the delivery process of this magazine is 100% biodegradable. DISCLAIMER This publication is published by C&I Media Pty Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by Australian and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials.
Following the success of its Famous Soda range, the Famous Soda Co team has now launched Famous Candy Co, the new Australian guilt-free indulgence. Michael Pillon, CEO, Famous Soda Co, said: "With Diabetes becoming the epidemic of the 21st Century, our challenge was to craft sugar-free candies that are better for you but don’t compromise on flavour." Fun soft and chewy, Famous Candy Co Snakes, Soda Bottles and Pink Frogs feature flavours from the Soda range including Blood Orange, Cola, Lemon, Pink Lemonade and Passionfruit, and come in 180g packs. Sugar free, 100 per cent natural sweeteners, colours and flavours, with no additives or preservatives and only 17 calories per serve, these are the better for you alternative when you’re craving a sugar fix.
Editor at Large: Keith Berg
Graphic Designer: Alyssa Coundouris
Managing Editor: Deb Jackson
Contributor: Claire Hibbit
National Sales Manager: Ben Curtis
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 © 2021 - C&I Media Pty Ltd.
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June/July 2021 | C&I | www.c-store.com.au 5
FACE TIME
PEOPLE POWER
Brooke Bainbridge, Business Development and Digital Acquisition Manager for Australia and New Zealand at bp Castrol, believes in the power of people and visionary leadership.
I
was born and raised in Warragul, a country town in West Gippsland, Victoria. Warragul is a leafy green oasis haloed by the Strzelecki Ranges and farming properties. It’s a small town that’s just over an hour outside of Melbourne, and it has thrived during COVID-19 and in the years leading up to it. I’m the eldest of three children and have two younger brothers. Our parents are still both in Warragul where they run their businesses from home, and my siblings have spread out, with one in Gippsland, one on the Sunshine Coast (lucky), and I’m in Melbourne. Growing up in the country was great; I went to primary and secondary school in Gippsland before leaving home early at 18. I was a quiet child but always loved being outside and playing with the local kids in the neighbourhood – always on bikes, playing sport with the boys in the street or long distance running. My friends and family all lived in town so it was often cups of tea or tennis with my Nan or mucking around and playing sport with friends. I was always intellectually curious; I loved reading and watching documentaries. I remember being obsessed with learning about history and how things worked, and I’m sure I drove a few people crazy with my never-ending curiosity. 6 June/July 2021 | C&I | www.c-store.com.au
From an early age I had already developed an entrepreneurial streak, and every second weekend I would be selling something to the neighbourhood, sometimes forcing my brothers to come along for a small commission. At around age 13, I got my first real job, which was waitressing and working as a kitchen hand at my parent’s pub. Then when I was 15, I also started working a second job at an industrial laundry in my hometown. At the laundry I was mostly working with other women and we would be on the machines at 5.30am and finished by 3.30pm, with a 30 minute lunchbreak and two 10 minute breaks throughout the day. This was one of my most valuable experiences as it taught me the meaning of hard work and also cemented the mindset that I was 100 per cent going to university. Working such a physically intensive job at a young age taught me work ethic and my early work in our family business introduced me to commercial acumen, customer service and relationships. To this day I still love work, getting my hands dirty, strategizing with people and talking to customers. I think the difference between a good business and an amazing business is its people, and its ability to really understand its customer.
Through all of my experiences, I fell in love with business. The customers, sales strategy, and negotiating were things that I thrived on from a very young age, and that I continue to be passionate about. Today I am working as the Business Development and Digital Acquisition Manager for Australia and New Zealand at bp Castrol. My role really focusses on strategic projects, route to market strategy, partnerships and offers that can take our business to the next level from a macro sense. I started with bp in procurement and supply chain roles before jumping across to sales, offer development and product management roles in our commercial fuels business. I’ve come to realise that I really love our customers. I love learning what frustrates them, what they value, where we fall short – it motivates me to bring their voice into the business and make sure we are shaping their experience with our brand in bold ways. My work experience so far has almost always been in the bp commercial fuels business and working with owners or large public organisations. Working at bp has always challenged me and has given me many opportunities, including my new role, which is in a new bp business (Castrol lubricants) and has
FACE TIME
many differences compared to my time in fuels. My new job skews heavily to the consumer and digital segments, which has really opened my eyes to a whole new world of FMCG – the way customers transact, their loyalty, their expectations and what our customers value and demand from us as a supplier, and how our complex global and domestic supply chains can be equipped to fulfil the task. Coming into the Castrol business, it has actually been really refreshing to be the person in the room who knows nothing and being able to ask all the simple questions – back to the why, why, why? My career highlights have been recent and mainly centred around transforming our fuel card business. I was under some amazingly supportive leadership at the time that fostered different thinking and allowed me and a few colleagues to transform our business from one that was declining to one that is thriving. I think back to my last role at bp whereby my entire obsession was surprising and impressing new and existing bp Plus customers. The bp Plus fuel card was growing after a few stagnant years in a very competitive market and my team and I developed a few amazing offers for the transport industry and SME customers (tradies, small business owners etc.). But what really stuck with me was the impact the local site and their staff still had on the success of our business and the way our offers we’re executed and delivered in market. What became really evident was the power of consistency and banding together as a brand to deliver this amazing offer that ranged from financial institution partners, account software partners and then amazing customer experience at site. We could have had this market-leading offer with a horrible experience at site and we would never see that customer again, but our operators know their customers very well and they know that the way a customer leaves that store is the most important thing.
THE PAST FEW YEARS HAVE TAUGHT ME A FEW THINGS:
Brooke's Groodle Miller loves going for hikes with her.
4
Mentoring and advocacy. I was never a natural networker, being quite reserved in my early career I would let my work speak for me, but networks and your personal brand and reputation really are everything. I always try to make everyone feel inspired by themselves and what they are capable of. I have spoken at a few open days at universities and the buzz you feel after you get the feedback that you have motivated someone to apply for a course they were scared to apply for, or that they went for a job they were doubting themselves on, or even just speaking up to a manager about something at work, it’s so rewarding and there is no better feeling. My advice to anyone reading this is to be really cognisant of the young people in their business or those who are looking for more opportunity, responsibility or just for an idea to be heard. In many cases these people would love to hear from you or meet you once a month for a coffee. I know we all get busy, but taking 30 minutes out of your month to genuinely talk and potentially inspire someone is such a gift.
The people in your team are everything. The mindset of those people will be the difference between surviving or thriving and it will also be contagious, getting some wins on the board and then feeding off the culture. They will also determine how fun work can be – make sure you enjoy your work and your peers.
1
These days, my office companion has grown a lot hairier and she doesn’t like coffee but she does offer great chat! My beautiful Groodle Miller (pictured) has become my shadow since the onset of COVID-19 and working from home. And if you’re wondering what on earth a Groodle is, she’s a big, lovable cross between a Golden Retriever and a Poodle.
2
I really value work life balance and find myself trying to prioritise this more and more. I actually get a healthy buzz and motivation from deadlines however I think I’m more strategic when I’m not stressed or trying to multi-task too much. I don’t always get it right but I try to inject some calm into each day where I can. Part of work life balance involves exercise and for me that’s daily and it’s nearly a non-negotiable. Almost every day I get up at 5am to walk or run Miller; grab a coffee and head back home for breakfast and emails. On weekends I love to hike, camp – anything out in nature really with fresh air. Coming from the country I find nature and getting outside of the city my happy place – I’m actually thinking of moving coastal; one of the upsides of COVID-19 is that this isn’t unattainable while working a corporate career anymore. C&I
Be open to trying and testing new concepts – this could be in head office or in a store, it could be big or small. If they don’t work you stop, but don’t be too scared to make a decision! My career highlights have been when I’ve tried something left field that was a little bold but it worked and I learned a lot of lessons along the way.
3
Visionary leadership and storytelling as a tool. This one is invaluable. The difference between a leader who can move a tribe of people towards a common goal and get them to see opportunity in a new or different way is inspiring. You need your team to be on the journey with you – you can’t tell them what to do, you need them to believe in the vision of the business and as a collective where you can get – this is powerful.
I was under some amazingly supportive leadership… that fostered different thinking and allowed me and a few colleagues to transform our business from one that was declining to one that is thriving.” – Brooke Bainbridge
June/July 2021 | C&I | www.c-store.com.au 7
STORE REVIEW
It was such an honour to receive the AACS Store of the Year Award, and we’re really excited to see how we go in the NACS competition.” – Skye Jackson
AMPOL WOOLWORTHS METRO KINGSFORD
REPRESENTS THE VERY BEST IN AUSTRALIAN CONVENIENCE
We chat with Ampol’s General Manager of Merchandise, Skye Jackson, about what makes Ampol Woolworths Metro Kingsford the best convenience store in Australia.
10 June/July 2021 | C&I | www.c-store.com.au
STORE REVIEW
A
mpol Woolworths Metro Kingsford has been named the 2021 Australasian Association of Convenience Stores (AACS) Store of the Year and will now go on to be the Australian representative at the NACS International Convenience Retailer of the Year Award. Ampol was also recognised by AACS with a second major retail award, the 2021 AACS Corporate Store of the Year, and Skye Jackson, General Manager of Merchandise at Ampol, told C&I that the team were “ecstatic” by the wins. “The team are so humbled by this award. It has taken many months of work from multiple people to deliver the new store format at Kingsford, and we are so pleased to be recognised by AACS. “Receiving this award is such an honour for our team, and we’re really excited to see how we go in the NACS competition,” she says. The Ampol Woolworths Metro Kingsford store was opened in November 2019 and has gone on to become a hub for the local community, with customers stopping in multiple times a day, be it for a coffee, Boost Juice, Amplify premium fuel or fresh ingredients for dinner. Jackson told C&I that the concept was a result of months of cocreation between Ampol and the Woolworths Metro team, working together to bring the best of what both brands have to offer.
CREATING A HUB FOR THE COMMUNITY The Ampol Woolworths Metro model is all about taking your corner store to the next level and supporting multiple customer journeys. “We’ve kept all the products that we’re famous for in convenience, and then added incremental ranges from grocery top-up, to produce, meat and extended bakery lines to be a onestop shop for customers,” says Jackson. While the store has been open for more than a year, it was during the COVID-19 lockdowns of 2020 that business started
to ramp up, with customers realising they had a convenient option to get the few essential items they needed and could avoid the queues at busy supermarkets. “The range is key, and I think we’ve landed a great offering of products that serve multiple customer needs. We see customers visiting us multiple times a day, which may be for fuel and a coffee in the morning and then picking up the ingredients for a spaghetti bolognese dinner on the way home. “It really has become a local hub for the community. In the mornings you’ll see plenty of the traditional tradies and the core convenience customers looking for breakfast on their way to work. Boost Juice is a real winner with the kids after school, and also with the parents who can pick up a few things they need to make a healthy dinner that evening.
Our focus is on the right range of grab-and-go products and the extension into ready meals where we are seeing some really positive results.” – Skye Jackson
“Whether it’s breakfast, lunch, dinner or a snack, we’ve got just what the customer needs, and with our shop front parking it makes it quick and easy.” The food service model, an emerging concept in the petrol and convenience channel, is a key focus for Ampol. “Food is absolutely where we are seeing growth,” says Jackson. “Our focus is on the right range of grab-and-go products and the extension into ready meals where we are seeing some really positive results. “I expect this segment will be one we continue to build on in the near-term as customers seem to be enjoying the improved quality of the range we have available now.” The iconic Ampol brand returned to Australian forecourts in August 2020, with the transition to see more than 1,900 sites rebranded by the end of 2022. “The transition is moving very quickly! The stores are coming up so well, I hear so much positivity about seeing the Ampol brand back in the market.” C&I June/July 2021 | C&I | www.c-store.com.au 11
THE Calendar WEDNESDAY 11 AUGUST 2021 10:00am – 12:00pm C&I Industry Symposium
Reconnect-Renew-Rebuild
11 - 12 AUGUST 2021 Melbourne Convention & Exhibition Centre
Who ATTENDED IN 2019?
12.00pm – 5.00pm
C&I Expo Day 1
4.30pm – 6.00pm
Networking Drinks
THURSDAY 12 AUGUST 2021 9.00am – 11.00am
C&I Industry Symposium
11.00am – 4.00pm
C&I Expo Day 2
Retailers directly involved in purchasing decisions
Attendees include convenience and impulse operators from the broader convenience market including management teams from the major convenience chains, petroleum retailers, independent chains, stand-alone independents and industry suppliers and wholesalers.
95%
*
OF ATTENDEES GAVE THE EVENT A POSITIVE RATING
*Source: C&I 2019 Post Event Attendee Survey
“Tiger Coffee are looking forward to face-to-face discussions at this year’s C&I Expo in Melbourne where we will be showcasing the exciting range of Eversys Cameo and Enigma coffee machines.” “The recent innovations around coffee equipment technology and design has perfectly placed Eversys machines with Tiger Coffee to reconnect-renew-rebuild with those retailers determined to not only keep but also grow their market shares around the consumer coffee habits that have changed or accelerated dramatically over the last few years.” – George Miller, CEO, Tiger Coffee
www.candiexpo.com.au
81%
*
Main reason for attending C&I Expo
83%
*
Experience new products and new equipment
67%
* Networking
“I’m really looking forward to meeting up with other national convenience retailers and sharing our experience, insights and ideas for the future of the industry. The world has changed so much in the last 18 months and our industry, more than ever, is ready to provide customers with whatever they need whenever they need it in a safe way because we are at the heart of every community.” – Darryl Cotter, General Manager Operations, OTR
1300 789 845
Register now For Australia’s largest and most important trade event for Convenience retailers
“We will be participating in our first C&I Expo in August this year, which will be our official launch into convenience. We are looking forward to introducing ourselves to all retailers and sharing with attendees our innovative and tasty ranges of both chilled and ambient snacking offers. We are excited to be part of this year’s event.” – Dean Trovarelli, National Account Manager, DON® Smallgoods
“I am thrilled to be part of this year’s C&I Expo and Symposium. It is always fantastic to see and meet with other businesses within the industry, especially after such a challenging year. – Carolyn Creswell, Founder, Carman’s Fine Foods
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
CONVENIENCE SURPASSES
$9 BILLION IN VALUE
Theo Foukkare, CEO, Australasian Association of Convenience Stores, shares insights from the 2020 AACS State of the Industry Report compiled by Convenience Measures Australia.
14 June/July 2021 | C&I | www.c-store.com.au
The reality is the agility of the convenience retailers and suppliers has resulted in a 5.1 per cent growth in 2020.” – Theo Foukkare
AACS SOI 2020 Report Sponsor Proudly Supporting the Convenience Store Industry
June/July 2021 | C&I | www.c-store.com.au 15
Our ‘3 Pillars’ remain extremely relevant for our industry and they are:
– Advocacy – Connection – Knowledge Convenience in-store merchandise sales growth
The Impacts of COVID-19
5.1%
Preventative Health Health & Wellness and Total Tobacco share Immune Boosting of sales Supplements increase
40.6%
Channel Shifts Restaurants & Fast Food Source: AACS Retailer Submissions, Market Edge, outlets impacted byIRIclosures ASX Announcements Stockpiling Sales of Staple Foods surge both online and offline leading to shortages Home Seclusion Professional & Personal spaces merged into one making virtual living the new reality
Inside Ampol Woolworths Metro Kingsford, the AACS Store of the Year
2
020 was the start of a new decade, which ended up being one of the toughest this generation has lived through. At the start of the year bushfires and floods had a devastating impact on the lives of many Australians, especially in our regional communities, but neither compared in size and scale to the outbreak of the COVID-19 pandemic.
The channel has matured to a point where fuel only transactions have dropped to below 40 per cent of all transactions, which is significantly different to 10 years ago when it was above 50 per cent. The reality is that we have continued to move away from being so reliant on fuel for foot traffic and that will continue, over the next 10 years as well.
This global event halted the economy and significantly disrupted normal life including stopping any social gatherings. It has had, and continues to have into 2021, an unprecedented impact the likes of which have only been seen in response to World Wars and Great Depressions.
Investment in the channel has remained strong with sites being seen by investors as a defensive asset and one which will show strong returns for investors over a long period. This is despite the expected migration to electric vehicles over the next 20 years, which will lessen even further the dependence on fuel as a driver of foot traffic.
Having come through 2020, we still have a long way to go to get back to what we knew pre-COVID; however, what was normal may never be the same. Technology has fast-tracked years in the space of months, new habits of ordering online have been formed, and the way we work may never be the same again. With all this in mind we need to remember that staying put is not a viable strategy.
In 2020, store numbers were up 0.8 per cent passing 7,000 stores for the first time, despite the lockdown restrictions. This is against the global trend of reduction in retail outlets in the convenience channel as markets mature, suggesting there may be still some upside in the Australian market.
The reality is the agility of the convenience retailers and suppliers has resulted in a 5.1 per cent growth in 2020, despite reduced foot traffic and severely impacted fuel sales. Ten years ago, this impact would have resulted in a decline in store sales; however, the maturity of the channel offer and the investment over a number of years has seen an outstanding result in shop performance.
Total convenience retail shop sales also passed $9 billion for the first time. Non-food sales, led by a strong performance in tobacco, moved past $5 billion up 5.6 per cent, while food and beverage were up 4.5 per cent. These growth figures far eclipsed the 2.1 per cent growth rate of 2019 and led to our strongest year since 2016, when the channel improved 4.5 per cent.
16 June/July 2021 | C&I | www.c-store.com.au
Convenience stores have continued to invest in new formats and extend their range into areas like hot coffee and foodservice, and this helped us get through the year despite the 11 per cent decline in total transactions. Basket value excluding fuel was up 8.4 per cent as customers purchased more despite visiting less, driven by grocery items, tobacco, and beverages. The channel also benefited from the growth in online ordering for home Performance delivery with the mix of products more aligned to take home Dollar Sales products. This also had an impact on basket value as this was generally greater than 50 per cent above in-store basket value.
$9.220b
In 2020, store numbers were up 0.8 per cent passing 7,000 stores for the first time, despite the lockdown restrictions.”
5.1%
MAJOR CATEGORY SHIFTS: THE WINNERS 2.1% in 2019
The greatest contributor to value growth was tobacco, which $ Value Increase improved 9.6 per cent or $326 million, well above 2019 growth of 0.8 per cent. This is despite a continued movement towards cheaper packs driven by continual excise increases, $179m in 2019 which has pushed the cheapest packet of 20s to around $30. Beverages also had another consistent year despite the bushfire Dollar Sales (Excluding impact overTobacco) January and February, especially in regional areas upKey 4.1Industry per centChanges or $77 million. The energy drink category was a key contributor to the growth up nine per cent along 2.2% Ampol EG Australia with soft drinks, which were up 4.9 per cent. These were the Unveils Ampol logo as it Announces Master Franchise +2.9%new in 2019 two largest categories representing approximately 55 moves awaybeverage from Caltex brand agreement with Oliver’s Real Food per cent ofTransaction beverageValue sales. Foodservice continued its strong 7Average Eleven Woolworths Launchrate newfor Supply in Announces strategic investment growth the Chain fifth straight year growing 8.6 per cent partnership with Emergent Cold in PFD Food Services (subject and is expected to be a $1 billion category by 2022 in the to ACCC approval) Chevron 8.4% convenience channel.
$444m
– Theo Foukkare
$5.476b
$10.42
Key Industry Changes Ampol Unveils new Ampol logo as it moves away from Caltex brand
EG Australia Announces Master Franchise agreement with Oliver’s Real Food
7 Eleven Launch new Supply Chain in partnership with Emergent Cold
Woolworths Announces strategic investment in PFD Food Services (subject to ACCC approval)
Food & Beverage 2020 $ Sales
Chevron Takes control of the Puma network and announces it will rebrand Caltex at the end of the exclusive period
$4.219b
Bega Dairy & Drinks Government blocks foreign sale of Lion Dairy & Drinks later purchased by Bega
4.5% +$181m
BP Announces extension of David Jones partnership and will open more stores
Coca-Cola European Bottlers announce takeover bid for Coca-Cola Amatil
2019 +6.0% $228m
Source: Company ASX announcements Source: AACSandRetailer Submissions,
IRI Market Edge, ASX Announcements
Takes control of the Puma network announces it will Average and Merchandise rebrand Caltexper at day the end of the Transactions exclusive period to come out of The one negative
Bega Dairy & Drinks Government blocks foreign sale of Lion Dairy & Drinks later purchased by Bega 2020 was the impact to
MAJOR CATEGORY SHIFTS: THE LOSERS
460 Non Food
BPcoffee, which after five successive Coca-Cola hot years as the fastest Announces extension of David announce 7.6% growing category, dropped 3.6 perEuropean cent or Bottlers $11 million to fall Jones partnership and will open takeover bid for Coca-Cola Amatil slightly below the $300 million mark it achieved in 2019. The more stores
$5.001b
expectation is that while there are reservations or the desire for Source: Company and ASX announcements workers to go back to the office on a full-time basis, this category will flatten 0.6%out a bit despite the great work by retailers.
32.9%
2
+1.0%
1
+5.6% +5.1% +4.5%
+3.0% +2.4%
2017
Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements
Average Transaction Value
$10.42 8.4%
Average Merchandise Transactions per day
460
7.6%
Margin
32.9% 0.6%
33.5% in 2019
Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements
Source: AACS Retailer Submissions, IRI Market Edge, Company Websites
Total Tobacco share of sales
-1.0% 2019
7,017
– 0.8% Advocacy – Connection – Knowledge
5.1%
+1.9%
2018
Our ‘3 Pillars’ remain extremely relevant Performance for our industry and are: Storethey Numbers
Convenience in-store merchandise sales growth
+2.1%
-0.1% 2016
2.2%
+2.9% in 2019
ASX Announcements
0 -1
$5.476b
Source: AACS Retailer Submissions, IRI Market Edge, Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements
aph
+3.2%
Dollar Sales (Excluding Tobacco)
2019 -1.0% -$49m
+6.0%
+2.5%
$179m in 2019
5.6% +$263m
+4.5%
3
$444m
33.5% in 2019
+6.1%
Change to line gr
$ Value Increase
After being the fastest growing category for the last five years, hot beverages were impacted by several factors driven by COVID-19, most notably the working from home scenario.
Food & Beverage Non Food Channel Average
4
5.1%
2.1% in 2019
2020 $ Sales
7
5
$9.220b
Margin
Trend Chart
6
Performance
Dollar Sales
2020
40.6% Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements
7 2021 | C&I | www.c-store.com.au 17 June/July
Performance
Sales Performance
21.5b litres 14% -3.5b
2019 Growth -3.3% -$5m GIRDS
Value
17.1cpl $26.4b Source: ACCC Report on Australian Petroleum market - December 2020
What Makes Up The Retail Price Of Petrol
Breakdown of the average petrol price in the quarter across the five largest cities
PETROL PETROL
121.4 cpl 121.4 cpl % %
cpl
cpl
22 22
26.2 26.2
44 44
53.3 53.3
34 34
41.9 41.9
International cost of refined petrol (Mogas 95) Taxes (excisecost andof GST) International refined petrol (Mogas 95) Other costs and Taxes (excise andmargins GST) (wholesale and retail)
Other costs and margins (wholesale and retail)
Source: ACCC Report on the Australian Petroleum Market (December 2020 quarter)
Sales declined by $11 million, which meant overall dollar contribution declined from 3.4 per cent in 2019 to 3.2 per cent in 2020. Margin percentage was slightly down although margin contribution declined by $7.5 million on the back of the sales decline. Despite the drop in sales in 2020, hot dispensed beverages still doubled sales in the channel over the past five years. Regarding the forecourt, fuel volumes climbed above the 2019 average for the first time in December 2020, which has shown that people are back out and about. This has extended into a strong start to the year in 2021 as well. The expectation is with the market dynamics both fuel volumes and pricing will stabilise somewhat in 2021, so this will drive both litres and value improvements for retailers. In summary, 2020 ended up being a fantastic year despite the many challenges, which started prior to 2020, with the bushfires across the country that migrated into COVID in March. By the end of April, the market looked to be heading for a tough year and ended up finishing stronger than anyone expected. Let’s hope that we can maintain the momentum into 2021, cycle over the strong numbers and celebrate another wonderful year in the channel.
ELECTRIC VEHICLES Australia is in its infancy on the life cycle of EVs, however with recent global announcements to fast track the banning by the UK and Japan of internal combustible engines by 2030; this is going to leave car manufacturers no choice but to move the fleet over to EVs. Volvo announced on 9 March 2021 that it will be Australia’s first fully electrified auto brand from July. The Swedish car maker (Chinese-owned) says that every vehicle it sells will be an EV by 2030.
This creates both a threat and opportunity to the channel as infrastructure costs are needed to install charging stations and the competitive environment will broaden as QSR, hardware, and supermarkets will compete in this space. It does however create an opportunity as customers will require more than 15 minutes of time to charge, therefore creating a food and drink opportunity to engage shoppers.
TOBACCO SHOPPER INSIGHTS While tobacco remains an important category for convenience stores, it was disappointing that a decision by the TGA was from 1 October 2021 nicotine e-cigarettes will only be available through pharmacies on a prescription from an Australian medical practitioner. Globally e-cigarettes are perceived as a safer alternative to cigarettes and as a way for smokers to be able to quit smoking altogether. Convenience stores around the world have seen a migration of smokers to this alternative offer and if this also happens here it will be detrimental to the convenience channel due to its inability to sell the alternative. AACS will be discussing this issue with government and looking for ways to support convenience retailers with this subject. While frequency decreased, the tobacco shopper became more valuable in 2020, increasing their spend by 17 per cent. The main mission of purchasing tobacco increased eight points with shoppers stating tobacco was their main purpose for visit. Convenience became more of a destination for tobacco. Use of the price board almost doubled as shoppers were focussed on comparing prices and looking for specials. Although participation in other categories declined, the tobacco shopper purchased more tobacco items in each basket, driving their increased spend.
Table of value of growth +$327m
+$77m
+$71m +$38m
We need to remember that staying put is not a viable strategy.” – Theo Foukkare
+$26m
+$18m -$6m
-$11m
-$11m
-$20m -$91m
Tobacco
Packaged Beverages
Foodservice
Grocery
Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements
18 June/July 2021 | C&I | www.c-store.com.au
General Confectionery Merchandise
Printed Communications Hot Materials Dispensed Beverages
Car Accessories
Travel Tickets
Food & Beverage 2020 $ Sales
Non Food 2020 $ Sales
$4.219b
$5.001b
2019 +6.0% $228m
2019 -1.0% -$49m
4.5% +$181m
5.6% +$263m
Performance Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements
Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements
Store Numbers
Trend Chart 7,017 ALCOHOL THROUGH CONVENIENCE
0.8%
While zero alcohol products have become more prominent across both the channel and in society, AACS still feels there is significant opportunity to challenge the current restrictions of Source: Retailer Submissions, IRI Market Edge, 7 AACS Company the saleWebsites of alcoholic products.
+6.1%
6 Convenience stores around the world have been able to sell alcohol successfully for many years with strict ID checking rules in place, 5 +4.5%to tobacco here. The responsible selling of which is no different alcohol in developed 4 in convenience stores is an opportunity asto ge line graph han markets it represents approximatelyC50 per cent of beverage sales, which 3 is a $900 million opportunity in today’s market.
+2.5% +3.2% 2 has for a long time been an advocate for the sale of alcohol AACS
in convenience stores however government regulation has not +1.0% 1 allowed it. The 2017 Parliamentary Inquiry that was held into Red Tape relating to alcohol regulation, put forward a recommendation for0allowing packaged alcohol to be sold in convenience stores, petrol stations, and supermarkets. AACS will pursue government -0.1% -1 in relation to the sale of alcohol in convenience stores.
2016
2017
WHAT OF 2021?
Source: AACS Retailer Submissions, IRI Market Edge,aASX Announcements As an industry, while 2020 ended up being strong year in terms of sales performance, there were some challenges with the decline in foot traffic driven by the fuel downturn.
While it is a positive for the channel that we grew in this environment, retailers will have to look at ways to combat this decline if it continues as expected. Shell announced last year that
2019 was the peak of its oil production and that we would see this continue to decline based on more fuel-efficient cars and the growth of electric vehicles (EVs) and charging stations. The likelihood is we will be staying local for most, if not all year, with the ban on international travel extended at+6.0% least until the middle of 2021 at the earliest. Let us hope however, that we maintain a controlled environment with COVID-19, and that the vaccine rollout is successfully implemented by December 2021. It would be great if all borders remained open, allowing for certainty of travel and for business to operate under one set +3.0% of rules. The likelihood of a return to CBDs will have a slow uptake with the working from home element likely to stick in +2.4% some form for businesses. This being said, current spend levels +2.1% in the first five months of 2021 are up on the back of increased +1.9% within our country rather than overseas, spend by Australians so that bodes well for a strong 2021 leading into 2022. AACS will continue to work with retailers on some of the current -1.0% issues such as labour shortages, business costs and crime, and how it can best represent all businesses big and small. 2018 2019 I would like to thank all the retailers who took the time to provide their data in confidence for the State of the Industry Report, which makes it the most credible in the industry. Thank you also to Brett Barclay and the team at CMA and to Coca-Cola Amatil for their sponsorship of the production of the report.
The reality is that we have continued to move away from being +5.6% so reliant+5.1% on fuel for foot traffic +4.5%and that will continue, over the next 10 years as well.” Food & Beverage Non Food Channel Average
– Theo Foukkare
2020
7
Source: CMA Shopper Report August 2020
Retail Segment Growth
Total Retail
6.5%
Convenience
5.1%
Supermarkets
10.0%
Liquor
26.6%
Cafe, Restuarants & Catering
24.0%
Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements, ABS
June/July 2021 | C&I | www.c-store.com.au 19
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2021 LEADERS FORUM
2021 INDUSTRY
LEADERS FORUM From suppliers to retail groups, and industry associations, C&I has spoken with leaders from right across the petrol and convenience industry.
22 June/July 2021 | C&I | www.c-store.com.au
2021 LEADERS FORUM
I
Staying put is no longer a viable option
f the last couple of months in Australia have taught us anything, it’s that we need to continue to expect the unexpected and remain flexible and agile. Convenience & Impulse Retailing is thinking of all Victorians as they make their way through their fourth lockdown, to try and help contain the spread of the latest COVID-19 outbreak. With the lockdown restricting people’s movements to within five kilometres of their homes, and with shopping limited to one person per day, per household, it reminds us of the important role that local petrol and convenience stores play as an essential service for consumers during these challenging times. The efforts of businesses to keep customers and staff safe, both through rigorous cleaning regimes and social distancing measures, should also be acknowledged. In testament to the staying power of this industry, the future looks bright for convenience, as we continue to make our way through the pandemic and prepare ourselves for the future of roadside retailing.
As the demand for fuel continues to drop, roadside retailers are turning their attention to new revenue streams including zero alcohol zones and reinvigorated foodservice models. With this in mind, we invited industry representatives, key retailers, and category leaders to share their valuable insights, highlight their achievements, pinpoint the challenges they feel need addressing, discuss how they have adapted to COVID-19, and how they view the immediate future for convenience. What resulted was a masterclass in ingenuity, adaptability, and resilience. Each company has dealt with different constraints, restrictions and difficulties, but have found their own workarounds, played to their strengths, and ensured a continuity of business. It’s always a delight to speak with leaders in their fields that share such an unwavering passion and belief for the petrol and convenience industry. And while we don’t have a crystal ball to tell us how the remainder of this year will play out, if this year’s Leaders Forum is anything to go by, the future is bright for convenience and through hard work and dedication, we will continue to thrive. C&I June/July 2021 | C&I | www.c-store.com.au 23
2021 LEADERS FORUM
Nigel Parsons CEO
Asahi Lifestyle Beverages What is the primary focus for Asahi Lifestyle Beverages in 2021?
Highlight one achievement at Asahi Lifestyle Beverages that you’re particularly proud of from over the past 12 months. From a business perspective, the way we navigated the challenges of 2020 with the pandemic was really pleasing. We looked after our people, we became even more customer focused and we have come out the other side a much stronger business. I must add from a convenience perspective, while the measured market experienced a beverage decline, we grew, which was very pleasing.
What do you enjoy most about convenience and what is one challenge you’d like to see addressed in the industry?
When you meet a convenience retailer, you are invariably meeting someone who is incredibly passionate about the industry. And that’s true whether it’s an owner/operator or someone working for one of the national groups. Not only is everyone looking to grow their respective business, but there is also a genuine passion about the convenience sector and the sector’s total growth. That is quite unique and a very enjoyable element of the sector. In terms of challenges, we know conversion of fuel sales to retail sales remains well below 50 per cent for most P&C retailers. When you consider most retailers will make $2.00+ cash margin on a beverage sale coupled with the many thousands of fuel-only shoppers a year, that feels like money is being left on the table. That might not be the most visible challenge to address but it feels like a worthwhile challenge that can be overcome. 24 June/July 2021 | C&I | www.c-store.com.au
We highly value our convenience partners, and we look forward to working together to drive category growth into the future.” – Nigel Parsons
Our primary focus is always our people. Creating a safe and great place to work is paramount. Of course, ensuring consumers and customers are at the heart of everything we do is also critical. With the volatility in the market, changing shopper and consumer habits – some forced, some chosen – we need to fully understand where consumers are moving to and ensure we are there to meet them with a cracking offer. Our ability to meet those consumer needs and drive category growth with our convenience partners will be critical to our future success.
How do you envision the next six months for convenience retail?
In a word, volatile. It will likely be a while before things settle. Overall, day to day traffic to stores is likely to take a while to recover. Positively, we are seeing across the broader total on-the-go market a willingness for consumers to spend more per visit. Getting the forecourt and in-store execution right to drive those impulsive categories will be key to making the most of it.
Are there any new or emerging trends you have noticed over the past 12 months?
From a beverage perspective, we have certainly seen a swing back into much-loved carbonated soft drinks from lifestyle categories. Zero sugar offers in the soft drink category is a huge driver of growth. The need for energy and functional benefits continues to grow unabated. Finally, from a sustainability perspective soda stream and cordials are demonstrating strong demand. I’m not sure they are new trends but overall, zero sugar, functional benefits and sustainable solutions seem to be critical platforms for growth.
Is there anything else happening with Asahi Lifestyle Beverages that you’d like to highlight? There is always plenty going on at Asahi Lifestyle Beverages. When all is said and done, our success resides in our ability to work with our great partners to deliver great products and experiences for consumers. We highly value our convenience partners, and we look forward to working together to drive category growth into the future. ■
E D A R O T GA
MADE IN AUSTRALIA UNDER LICENCE FROM STOKELY-VAN CAMP INC BY ASAHI BEVERAGES.
2021 LEADERS FORUM
George Miller CEO Tiger Coffee
The wider P&C segment needs to address the perception that good consistent coffee is only served in a café. To address this industry challenge, an investment in the newest technology and maintenance is required, which is where Tiger Coffee can assist.
What is the primary focus for Tiger Coffee in 2021?
Highlight one achievement at Tiger Coffee that you’re particularly proud of from over the past 12 months.
I noticed that the theme of the C&I 2021 Expo is ReconnectRenew-Rebuild. Tiger Coffee has been doing just that for the previous 12 months. Without doubt, the effort and focus by our Tiger Coffee technicians, with the support of our strategic partners Eversys and Iovent to develop and then install a bespoke contactless payment system during a major rollout of Cameo self-serve coffee machines makes me very proud. Thanks to algorithms, software integration and a dedication towards a market-based solution to convenience and great coffee, the contactless self-serve installations will be a game changer for the whole industry.
What do you enjoy most about convenience and what is one challenge you’d like to see addressed in the industry? Convenience is an innovation sector. Within a much larger industry, petrol and convenience (P&C) retailers continue to challenge and implement ideas well ahead of their time to ensure they stay relevant to an ever-changing consumer sentiment. For example, COVID-19 changed the habits of the coffee consumer from café and restaurant-style consumption to on-the-go and home consumption of coffee. Tiger Coffee was able to enjoy the challenge of installing the latest technology into convenience, which is very satisfying. 26 June/July 2021 | C&I | www.c-store.com.au
With full automation of coffee service being driven by quality consistent coffee, installing equipment including the facility to offer multiple milk solutions, we are focused on the new range of Eversys Enigma Series coffee machines. Not only is there a Classic range but also what is known as a Super Traditional range, including a high performance Shot Master Pro offering. Some unique designs with various options that will further innovate the products, services and merchandising around the convenience offer. Matching these new ranges of Eversys Enigma coffee machines with our Tiger Coffee patented design 30 litre milk bladder fridges is a primary focus for 2021.
How do you envision the next six months for convenience retail?
No one can predict what may or may not happen during the next six months with COVID-19 taking all of us on a ride into the unknown, but what I can say is the owners and operators of a convenience offering need to invest in the future where the savvy consumer is demanding good quality coffee, or they will go elsewhere for that coffee fix. In other words, there will be slight ups and downs by category, but any increased foot fall will only be boosted by a higher quality of offer in-store.
Is there anything else happening with Tiger Coffee that you’d like to highlight?
With the convenience sector seeing some significant instore upgrades while adding to their value product range, consumers are now responding with loyalty when the offer is consistent with the right value/price composition. Now, not tomorrow would be the right time for the P&C retail audience to control their own destiny and reach out to Tiger Coffee to discuss how to be a part of this improvement in coffee service. The result of improved coffee in-store is repeat business, which is what every retailer is looking for. Visit www.tigercoffee.com.au or call 1300 88 44 37 and let’s talk coffee. ■
The result of improved coffee in-store is repeat business, which is what every retailer is looking for.” – George Miller
It’s what’s in the cup that counts.
Join Tiger Coffee at this year’s C&I Expo at the Melbourne Convention and Exhibition Centre. Between the 11th and 12th of August, we will showcase the exciting range of Eversys Cameo and Enigma coffee machines. See the machines in action, talk to an expert and experience the best coffee in town. You’ll find us at stand 156. We look forward to seeing you there. For further information call 1300 88 44 37 or visit www.tigercoffee.com.au tigercoffee.com.au
Classic
Super Traditional
Classic
Super Traditional
2021 LEADERS FORUM
Matthew Dodson General Manager – Out of Home Patties Foods Pty Ltd
What are the major opportunities you foresee for Patties Foods in 2021?
Highlight one achievement at Patties Foods that you’re particularly proud of from over the past 12 months.
Patties Foods is particularly proud of the culmination of achievements over the past three years, as it embarked on a journey of understanding the importance of the ‘foodon-the-go’ category. The company invested a lot of time and money in collating insights into this category, to better understand consumer demand and identify future trends within the channel. These insights led to the extension of the Four’N Twenty Traveller pie range, an optimal format for on-the-go eating, which has seen huge success and growth within the hot food on-the-go category. Talking to consumers and better understanding their needs for on-the-go snacking, has enabled Four’N Twenty to expand into the snacking occasion with a new range of Four’N Twenty Traveller Pizza and Bites. Four’N Twenty Traveller Pizza is available soon in Hawaiian and Meat Lovers; while the new crumbed offer Four’N Twenty Traveller Bites is available in Mac’N Cheese and Jalapeno & Cheese. Both offers are perfect to enjoy anytime, anywhere!
What do you enjoy most about convenience and what is one challenge you’d like to see addressed in the industry?
For me, what I enjoy most is the people within the convenience industry. The channel will always work together to achieve one shared goal: increasing consumer sentiment and continuing to deliver quality products to meet their ever-changing needs. The challenge for us as an industry is how we engage the younger generation to make sure they see the value and relevance of the convenience channel. Four’N Twenty is launching a range of convenient snacking products to extend the loved Four’N Twenty Traveller range to continue to meet the changing needs of the younger generation and the wider customer segment. We’re pleased to continue to offer delicious, on-the-go meal and snacking options for every occasion. 28 June/July 2021 | C&I | www.c-store.com.au
The company (Patties Foods) is now expanding into the chilled take home food space with the new acquisition of Fitness Outcomes.” – Matthew Dodson
The opportunities for Patties Foods within the convenience channel come from the strong foundation built through the Four’N Twenty brand. Four’N Twenty has had a strong renaissance through COVID-19 as consumers turned back to Australian made and loved brands. This enables tailored innovation to cater to the unmet needs of consumers, shoppers, and trade partners. Four’N Twenty will be stepping into the new and exciting area of snacking within the Traveller range with the upcoming launch of the Four’N Twenty Traveller Pizza and crumbed Four’N Twenty Traveller Bites appealing to consumers looking for that on-the-go hot treat. We will also see a continued increase in demand for plant-based alternatives with 53 per cent of consumers considering themselves to be vegans, vegetarians, flexitarians or meat reducers in an effort to be more health and environmentally conscious. There is a clear and growing demand for plant-based products and with the launch of the much-anticipated Four’N Twenty Meat Free Pie and now the Meat Free Roll, Four’N Twenty will continue to consider further options in the future.
How do you envision the next six months for convenience retail?
The channel is always evolving and growing to suit the changing needs of the consumer. At Patties Foods, we’re looking to the long-term future and preparing for what that will look like. This includes looking into how electric cars will impact the channel to the natural expansions within it such as the alcohol space, like most other convenience industries globally. Trend forecasting within these areas will take the convenience channel into the future, making its key driver, Four’N Twenty even more relevant than today.
Is there anything else happening with Patties Foods that you’d like to highlight?
As a business, Patties Foods is always evolving. The company is now expanding into the chilled take home food space with the new acquisition of Fitness Outcomes. The high-quality meals are made with real, fresh ingredients, perfect for time-poor people. This is a great story of a business that’s been making gourmet, functional ready meals to move into the convenience channel. Patties Foods is looking to continue its expansion in this category, with insights and support that will grow the business as well as the industry. As always, it’s exciting times ahead for Patties Foods and the channel. ■
info@patties.com.au
2021 LEADERS FORUM
Dean Trovarelli National Convenience Channel Lead DON Smallgoods
outpacing traditional snacking categories such as chips and confectionery. Perhaps not so much a challenge, but more of an opportunity is for the recognisable DON brand to signpost this segment to consumers and help convenience customers to capitalise on this growing trend.
What are the major opportunities you foresee for DON Smallgoods in 2021?
Highlight one achievement at DON Smallgoods that you’re particularly proud of from over the past 12 months. At DON, we pride ourselves on our customer centricity – as our customers are the heart of all our decision making. Due to the recent COVID-19 challenges, we were faced with a highly volatile change in our channel sales mix. The grocery channel spiked very quickly as people spent more time working from home. There was a shift to people spending more money in home compared to their prior ‘out of home’ behaviour, which suffered a drop off. As a consequence, we had to adjust our internal operational model to suit the changing customer and consumer patterns. Our ability to adapt, adjust and work with our customers through this period was a real highlight and something that we feel proud of. Despite these issues, we were still able to make tremendous progress with our ‘strategic snacking’ project, which we are in the midst of launching across the grocery and convenience channels.
What do you enjoy most about convenience and what is one challenge you’d like to see addressed in the industry?
The convenience channel is clearly very different to our grocery channel. It is more highly fragmented, coupled with the supply chain and go to market challenges to service such a large geographic region, making it more tricky than grocery at times. Luckily, the customers and people that we get to engage and work with in convenience are committed to making the execution as effective as possible for suppliers. There is a tremendous energy and can-do attitude across the convenience channel in Australia and we see this through our membership with the Australasian Association of Convenience Stores (AACS). So, the thing I enjoy the most about the channel would be the people I get to come across and work with. Over the last three years, meat-based snacking has become one of the fastest-growing snacking segments, 30 June/July 2021 | C&I | www.c-store.com.au
The biggest opportunities for us in convenience this year is our launch into snacking across both ambient and chilled. We have an ambitious plan for meat snacking in Australia, and feel that we can win with the DON brand, given our established and trusted meat credentials. DON is the most well-known smallgoods brand in Australia… Is DON. Is GOOD. DON can play the role as a beacon brand for this growing segment and bring in new consumers to grow penetration across the convenience channel. We will bring a new range of products to market in 2021/2022 across convenience and are committed to partnering with the marketplace to unlock these key growth trends.
How do you envision the next six months for convenience retail? At a macro level we are forecasting improved growth for the channel given the recovery out of COVID-19 for convenience. People will return to some normality in 21/22 regarding returning to work or at least spending increased days at their workplaces, leading to more travel/commute time, which plays into the hands of convenience. Coupled still with the trust of shopping locally and avoiding large shopping centres, we see upside for the convenience channel over the next six months.
…we see convenience playing an important role in building the category growth of smallgoods through increased penetration and driving more occasions…” – Dean Trovarelli
Is there anything else happening with DON Smallgoods that you’d like to highlight?
We have big plans over the next 12 months across our new product development and brand investment. Certainly the last 12 months have been testing and challenging through COVID-19, however we have been consistently working on our longer-term strategy and we see convenience playing an important role in building the category growth of smallgoods through increased penetration and driving more occasions especially off the back of increased convenient snacking formats linked to ‘grab-and-go’ and ‘better for you’. We will be participating in our first C&I Expo in August this year, which will be our official launch into convenience. We are looking forward to introducing ourselves to all retailers, and sharing with attendees our innovative and tasty ranges of both chilled and ambient snacking offers. We are excited to be part of this year’s event. ■
To learn more, contact Dean Trovarelli on 0404 910 467 or dean.trovarelli@gwf.com.au
2021 LEADERS FORUM
Jonathan Morley Head of Sales Nestlé Purina Pet Care
Highlight one achievement at Nestlé Purina that you’re particularly proud of from over the past 12 months.
The biggest thing that made me proud was how we have adapted as a team to the change in environment with COVID-19, and embraced flexible working. I have also found that through many challenges we have pulled together to be a stronger team both in the office and our field sales team. The pet industry has gone through a significant transformation in the last 12 months with a lot more pets, which is now translating into a lot more demand for pet food and accessories.
What do you enjoy most about convenience and what is one challenge you’d like to see addressed in the industry?
The diversity of the offer in convenience is always very exciting and I often take the opportunity to try new products. I think the digital transition for shopping is a huge opportunity for the industry, and embracing the change and finding ways to capitalise on this will be an industry wide challenge. Diversifying the offer will be a key way to gaining more local shoppers who want to buy a broader range of categories and top up their grocery and pantry items.
What is the primary focus for Nestlé Purina in 2021?
Business continuity as we normalise our operations following a huge change from COVID is still a primary focus for us, however expanding our distribution and developing new channel specific packs and products are also a major focus. Over the last 12 months we developed a single pouch offer for our Felix brand, this is a great way to attract more shoppers into the brand by having a lower barrier to entry vs our 12-packs. We have also developed a smaller pack size for our Supercoat brand, which we think is ideal for the convenience channel and is now available.
How do you envision the next six months for convenience retail?
As people start to travel more and return to more days at work I think there will be a benefit for both the petrol and convenience stores and inner city convenience stores. Given the lower base from last year I think this will create a lot of growth, and from that, I am sure there will be a lot of interest from suppliers who have not previously had a focus on this channel and will see it as a growth opportunity creating more options and chance for investment. 32 June/July 2021 | C&I | www.c-store.com.au
The digital transition for shopping is a huge opportunity for the industry, and embracing the change and finding ways to capitalise on this will be an industry wide challenge.” – Jonathan Morley
Is there anything else happening with Nestlé Purina that you’d like to highlight? We have been enjoying a consistent growth over the last few years as we position our portfolio to align with the growth trends. There is a clear shift away from traditional products like large multi-serve cans of wet dog and cat food to formats like single serve pouches. The other trend is the propensity for people to trade up to more premium products as consumers want the best for their pets. To support the future trends we are investing heavily into our local factory to increase our capacity and create more local jobs. ■
DRIVE PENETRATION AND INCREASE SHOPPER BASKET
63%
OF CONVENIENCE CHANNEL SHOPPERS OWN EITHER A DOG OR CAT
42% 42% of shopping missions are a top up shop or impulse buy
45% of shoppers had less than a week’s stock of pet food in the house
95% of those are forced to
NEW
spend their Pet Care budget elsewhere as their local ‘won’t have my pet products’
1.5kg
Opportunity to expand the pet category through a
NEW convenient size
Source: 2017 Kantar Shopper study
ITEM CODE
METCASH CODE
12472898
216758
PRODUCT DESCRIPTION SUPERCOAT Adult Dog Beef
SIZE
BARCODE
RRP
1.5kg
9300605142466
$9.99
2021 LEADERS FORUM
Rolando Schirato Managing Director Vittoria Food & Beverage
Highlight one achievement at Vittoria Food & Beverage that you’re particularly proud of over the past 12 months.
As Australians spent more time at home due to COVID-19 restrictions, we noticed this didn’t translate into people having more time. In response, we developed a range of new convenience formats to make it easier for people to enjoy high-quality coffee at home. Initially, we launched our range of Nespresso* compatible aluminium capsules in Woolworths and became the fastest growing Nespresso* compatible manufacturer in Woolworths for the year^. We are excited about making this range accessible to more retailers and consumers. We recently announced the introduction of several signature Vittoria Coffee blends into new convenience formats including instant coffee and coffee bags that will appeal to coffee lovers chasing convenience, without compromising on quality or flavour.
What do you enjoy most about convenience and what is one challenge you’d like to see addressed in the industry?
Many of the historical challenges in the industry regarding coffee quality have been tackled by players like EG (Euro Garages) and Caltex (now Ampol) and it is now really the ongoing roll out and constant improvement and maintenance of these initiatives that is required. It’s been great seeing the industry move towards offering higher quality coffees for people on-the-go. Enhancements and innovations in bean-to-cup machines are helping to deliver a better coffee through improved espresso coffee extraction and milk texture. Retailers are also increasing their appetite to invest in higher grade Arabica coffee blends to complement this offering. 34 June/July 2021 | C&I | www.c-store.com.au
We’re seeing P&C retailers like Ampol and EG moving to more accessible barista-made coffee outlets throughout their network and investing heavily in the training of their staff and industry-leading equipment to lead the channel in quality and consistency.
What is the primary focus for Vittoria Food & Beverage in 2021?
Our primary focus for the year is to continue to adapt our offering based on the changing nature of coffee consumption patterns. We will continue to explore new convenience formats. As consumption habits evolve throughout 2021, our focus is to ensure we are set up to adapt to the change. As a familyowned Australian business we have always been able to make decisions and act on them quickly. This is something that has given us the edge over large multinationals, and we will continue to use it to our advantage in a changing Australian landscape.
How do you envision the next six months for convenience retail?
Convenience retail will play an important role in helping consumers adjust to new work patterns. As people begin commuting more and working less from home (compared with last year), we see convenience retailers playing a vital role in delivering convenient, high-quality coffees. Retailers should ensure they are providing quality product, in the most efficient and convenient ways possible. Along with ensuring their grocery offering on shelf is reflecting the changes in consumption with more coffee being consumed at home and across more formats than pre-COVID. ■ ^Source data: IRI Scan (WW) to 02/05/2021 *Nespresso is a trademark of Societe des Produits Nestle SA. Neither that company nor its affiliates have manufactured or endorsed this product in any way and have no association to Vittoria Food & Beverage or the Vittoria® Coffee brand. Compatible with Nespresso original machines.
We will continue to explore new convenience formats. As consumption habits evolve throughout 2021, our focus is to ensure we are set up to adapt to the change.” – Ronaldo Schirato
2021 LEADERS FORUM
Theo Foukkare CEO
Australasian Association of Convenience Stores
I am up for the challenge to protect what we are currently retailing and capturing new opportunities to ensure that convenience is KING!”
3. Improving compliance and enforcement around illegal tobacco. 4. Engagement with other key national industry associations to build our advocacy ‘surround sound strategy’. 5. Representing the industry with advocacy of sugar, sustainability, people and the forecourt of the future.
How do you envision the next six months for convenience?
Food for now and food for later has taken on a whole new dimension with the explosion of food delivery apps – give it to me now, wherever I am! The biggest challenge that we face here is the significant cost to play in this area, so I hope that there can be a reduction in transaction fees by the major technology operators here.
With overseas travel restricted for some time yet and the effects of work from home still in place, it is pleasing to hear from members that baseline sales in suburban stores have settled at higher levels than pre-pandemic, and that consumers are starting to move back into the CBD, albeit not quickly enough. The second half of 2021 will see a significant focus on new product launches from suppliers, as well as a greater level of retailer/supplier collaboration than we have seen previously. The race is on for retailers to ensure that their virtual store is a true representation of their physical store and is easy for consumers to shop. Sales results in the first half of the year are being reported as very strong, and we expect that this will continue throughout the balance of 2021. Convenience retail has now proven that we are an essential service that plays an important role in serving the community. This has led to the channel being able to adapt to snap lockdowns and to show the resilience to just keep winning.
Highlight one achievement at AACS you’re particularly proud of since you joined as CEO.
How do you see the retail and food service model through P&C evolving?
What is the immediate focus and outlook for AACS in 2021?
Is there anything else that you’d like to discuss?
What do you most enjoy about convenience?
By far, the people are what make convenience retail the best channel to be a part of. We are a big family that offers support, we collaborate, and foster open dialogue to ensure that the channel continues to thrive. This is quickly followed by the speed of change and innovation that we continue to face, which ultimately presents new challenges and opportunities.
What is one challenge you’d like to see addressed in the industry?
Bringing the industry back together for my first event as CEO at our AACS Connect 21 event in April. To have 650 advocates of the industry able to network, learn and celebrate after the year that was, has been a major highlight. But there can never be just one highlight, and the re-engagement with AACS members – both suppliers and retailers – has happened very quickly, and this has been driven by clearly outlining what our strategic objectives for the 12–24-month horizon are. The AACS Board has been pivotal in providing a clear runway for the association to do things differently, and that is what we are now doing.
1. Reinforcing AACS as the champion for matters of convenience retailing. 2. Finalising the plan to deregulate packaged alcohol and enable retailers in the channel to compete fairly.
– Theo Foukkare
Our members represent more than 7,000 individual shopfronts, so think about that for a minute. Are we distribution hubs? Can we operate 2,000 dark kitchens and fight directly against the QSRs? Will consumers complete their top-up grocery shop with us? Will our forecourts have drone charging pads? Will they be pickup hubs for food delivery? The food story has a lot to go through its evolution. In short, as we continue to develop our food offer – food for now, food for later, food for someone in your family – this is the single biggest existing category opportunity that is ahead of the channel.
I’d just like to say thank you to the industry for welcoming me into the CEO role. I am up for the challenge to protect what we are currently retailing and capturing new opportunities to ensure that convenience is KING! ■ June/July 2021 | C&I | www.c-store.com.au 35
2021 LEADERS FORUM
Our focus is to make it easy for convenience stores to sell Vodafone.” – Jordan Press
Highlight one achievement at Vodafone that you’re particularly proud of from over the past 12 months.
It’s been a very exciting time for Vodafone following our merger with TPG, with the merged company to become a full-service telecommunications provider. As a part of the TPG Telecom family of brands, it has allowed us to build new partnerships and strengthen existing relationships. For the Prepaid Distribution Channel, Vodafone has aligned with Lebara to share the same field team that services the convenience channel. We’ve built efficiencies between Vodafone and Lebara, leveraging off each other’s strengths, and have equipped the Sales Field Team with the fire power of two amazing telco brands. It’s been great to see how amazing this field team is, they truly live and breathe telco and that’s reflective of their work.
What do you enjoy most about convenience and what is one challenge you’d like to see addressed in the industry?
Jordan Press National Business Manager Vodafone
No two days are ever the same! The convenience channel has adapted and pivoted to match customers' changing needs during COVID-19. Also, each convenience banner group is tailored to the audience. Whether it’s a tiny store servicing metro locations, regional outposts, or mini-market type set ups connected to a service station – no two retailers are the same. So it’s important we make it easy for each of these stores to sell telco today, and set ourselves up for what telco may look like in the future with eSIM.
What is the primary focus for Vodafone in 2021?
Our focus is to make it easy for convenience stores to sell Vodafone. We can do this by building closer relationships with banner groups at head office, and continued over servicing through our shared field team with Lebara. Vodafone and Lebara will be well represented at the C&I Expo in August, and we can’t wait to catch up with these stores face to face! And as always, Vodafone will ensure the customer is number one. Whether it’s amazing data inclusions, or offering the customer a $5 discount on every Prepaid Auto Recharge, Vodafone endeavours to offer amazing value to a customer, whether they’ve been with us for one month or 10 years.
How do you envision the next six months for convenience retail?
The last 1.5 years have demonstrated how much the retail landscape has changed. Online shopping has accelerated and broadened its appeal to new categories. And there’s a chance for convenience to be part of this online acceleration, through Mail Lockers for customers to collect their packages or click and collect set ups. ‘Top up shops’ for grocery items continue to grow into other segments. We’ve seen the entry of higher end food retail enter the convenience channel. ■ 36 June/July 2021 | C&I | www.c-store.com.au
2021 LEADERS FORUM
George Tsapoutas, General Manager, The Distributors What is one challenge that you'd like to see addressed within the convenience channel? The petrol and convenience (P&C) and impulse channel is about shopping local and should be about supporting the local community, including independent wholesalers. The Distributors prides itself on our service to the local industry and we provide award-winning national coverage with localised service. COVID-19 has seen a lot more consumers shopping local and as an industry we need to all work to keep these consumers shopping in the stores that we service, and to do that we need to make sure that we are competitive and in stock.
What were the major highlights at The Distributors over the last 12 months?
The Distributor group navigated through COVID-19 lockdowns, safe work plans and business downturn, all the while continuing to do what we do best – turn up, take orders and supply product to our retail customers. And while it is not why we wake up each day, it is a great feeling when as a group get recognised by our customers and the industry via awards like the two most recent, which were being named Distributor of the Year by both AACS and New Sunrise. These awards make all of the members and our staff proud.
What is the immediate focus for The Distributors in 2021?
For The Distributors, our immediate focus is bringing normality back to our daily operations and working towards our mid-year members’ meeting at the end of May. It will be the first time we have been able to meet all in the same location for well over a year and I am looking forward to celebrating some of our recent successes and awards with the group as well as sharing and learning from presenters and industry experts.
How do you envision the next six months for convenience?
I see the next six months as some of the most important times in convenience. As I stated prior, as an industry we have had consumers rediscover shopping local and the next six months we need to all do our best to keep our new consumers shopping in our stores.
The Distributors prides itself on our service to the local industry...” - George Tsapoutas
Skye Jackson, General Manager Merchandising, Ampol What do you most enjoy about convenience and what is one challenge you’d like to see addressed in the industry?
I love how fast-paced the industry is, it is certainly never boring! I think one of our biggest challenges is gaining our customers' confidence in our ability to fulfill more of their missions, and convincing them that we are a reliable channel for more of their needs. I think we’ve come a long way but that confidence in our ability to serve fresh product, as an example is a work in progress with some of the more discerning customer segments.
Highlight one achievement at Ampol you’re particularly proud of from over the past 12 months.
Winning the Store of the Year awards from AACS is absolutely a highlight. The team are so humbled and excited to receive this award and it has taken many months of work from multiple people to deliver this and we are so happy. I also think the way the business handled our response to COVID was a great achievement, with teams working well cross-functionally to deal with the changing environment, while continuing to remain focused on the safety of our people and customers.
What is the focus for Ampol in 2021?
The transition of the Ampol brand is probably one of the biggest projects we have undertaken, with more than 1,900 sites needing to be rebranded over two years. At the same time, we have plans to open another 20 Ampol Woolworths Metro locations across New South Wales and Victoria, so that’s keeping us pretty busy!
How do you envision the next six months for convenience?
It’s going to be interesting to see how we start to cycle last year’s results as we come out of COVID. I think the question is how many people will go back to their pre-COVID lifestyle and what that will mean for us. I do think the stores who have served their customers well during the past 12 months will retain those customers as we’ve been able to remind people just how convenient our convenience stores are.
...we’ve been able to remind people just how convenient our convenience stores are.” - Skye Jackson
June/July 2021 | C&I | www.c-store.com.au 37
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2021 LEADERS FORUM
Joanna Graham, Senior Manager Convenience Trading ANZ, bp What do you most enjoy about convenience and what is one challenge you’d like to see addressed in the industry? I love the dynamic nature of convenience! It’s extremely satisfying to be talking about something in the office one week and see it activated in-store the next. And the small box format means that every inch of space must work hard. We really have to know and understand our customer and make good decisions about what we range. The biggest challenge is keeping pace with the rate of change in retail, particularly in the areas of digital and automation.
Highlight one achievement at bp you’re particularly proud of from over the past 12 months.
bp has a long history of working closely with our community partners, and we didn’t back away from this in 2020, despite the unprecedented and very challenging environment. We partnered with our suppliers on in-store activations to raise much needed funds for OzHarvest and McGrath Foundation. bp was also able to support the Royal Flying Doctors Service and St John Ambulance with donations of medical grade masks at the peak of the pandemic. I’m really proud of the contribution we’ve made and will continue to make to these worthy organisations.
What is the immediate focus for bp in 2021? bp convenience has enjoyed a strong start to the year and we expect to see continued growth. We are increasingly catering for different types of shopper missions and looking for ways to encourage new consumers to the channel, including via online, which we see as an increasingly important platform.
How do you envision the next six months for convenience?
It’s an interesting time as we’re not quite out of the woods in terms of the pandemic. We could yet see further lockdowns and border closures, and it’s unclear when and if consumer behaviour will fully return to ‘normal’. It’s more important than ever to stay close to our consumer and ensure we are pivoting quickly to meet their changing needs and expectations.
How do you see the food service model evolving to meet changing consumer needs? P&C is now omnichannel and I think we’ll continue to see growth of home delivery of grocery top-up, snacking and meal occasions. Our customers are asking for fresh food, they’re expecting quality, and the channel has room to grow in terms of evolving the food-on-the-go and food-for-later offers both in-store and online.
Darryl Cotter, General Manager Operations, OTR What do you enjoy most about convenience and what is one challenge you’d like to see addressed in the industry?
The best part of our industry is its people. As in any business, the people you work with determine your enjoyment. Here at OTR I am fortunate to work with so many dedicated people whose passion is infectious, which makes life genuinely enjoyable for their team and our customers. One of the challenges that still remains in the convenience industry is the delicate balance of supply and demand across a widening range of fresh and stable produce with variable shelf lives and demand cycles.
What is the primary focus for OTR in 2021?
Despite COVID-19 restrictions in 2020, OTR continued to open more than 10 new stores and develop even greater innovation in our App and customer service experience. Therefore, it’s no surprise that expanding OTR’s network and giving more people the opportunity to gain employment and build a career, particularly in regional locations, will remain a focus in 2021. The OTR digital App continues to be an area of focus and innovation. We added voice ordering using Siri last month, which enables customers to pre-order any item in their favourites and have it waiting for them when they arrive in-store. This provides a super easy and safe way for customers to order from OTR when they are out and about. Voice ordering via Android will be rolled out in June. 40 June/July 2021 | C&I | www.c-store.com.au
Just prior to COVID-19, OTR launched a new initiative in partnership with Community Corporate, the ‘New Beginnings Program’. We are so excited to see this program move into its second year within OTR, as it provides meaningful employment opportunities to disadvantaged job seekers who need a little extra support to secure a job, including refugees, migrants, young people and women returning to the workforce. New Beginnings prepares candidates for the expectations of employment through three stages: pre-employment training, work experience, and stable employment. Since the launch of the program, OTR has been able to assist and support approximately 40 candidates, resulting in a 12-month retention rate of 86 per cent. In 2021, OTR plans to expand this program to assist job seekers displaced by COVID into full-time employment and expanding the existing program throughout regional locations.
How do you envision the next six months for convenience retail?
The future of convenience is about providing solutions for all occasions and becoming part of our customer’s lifestyle choices, for example, I need a healthy snack; I need to grab a gift for mum for Mother’s Day. OTR is working on how best to provide this solution because we know that customers expect options in our stores to be aligned to their needs, in a quick and accessible way 24/7.
2021 LEADERS FORUM
Darren Park, CEO, UCB Stores Highlight one achievement at UCB you’re particularly proud of from over the past 12 months.
The independent channel was faced with significant and seemingly never-ending challenges from the onset of the pandemic, that made ‘business as usual’ a thing of the past. Despite the widespread uncertainty and unpredictability of the world (not to mention the day-to-day), my team continually and tirelessly rose to the challenge. The way they responded and adapted to ensure that our members were well informed and could continue to operate safely and effectively was truly something to behold. In addition, the effort by the entire industry that went on behind the scenes, lobbying of government departments, ensuring we could be classified as an essential service. I’ll always look back and be proud of the part UCB played during this most difficult of times.
How do you envision the next six months for convenience?
The next six months is critical for the convenience channel, irrespective of what the world throws at us. There have been some really positive stories emerging from the AACS State of the Industry Report and it is now upon us as a channel to capitalise on the opportunities they present and the new role we now play for everyday Australians.
There is a need to evolve our service model to align with the expanded role we play in our customers’ lives and the Australian retail landscape. We must become more than just an occasional shopping stop and capitalise on the new routines and behaviours now evident in the marketplace. Shoppers are coming to our stores for a wider range of products than before, so a retailer’s ability to meet their expectations, while surprising and delighting them with an appropriate selection of quality offers is essential. From increased, higher quality coffee, food-on-the go and meal solutions, to offering a wider range of convenience lines, it’s essential we continue to grow our understanding of the convenience shopper in order to guide our evolution with our trade partners. The one challenge I’d like to see addressed in our industry continues to be alcohol retailing. With other P&C markets around the world showing that the category can be retailed responsibly and with great success, it’s hard to fathom what makes Australia so different. I’d love to see the industry come together to mount an aligned and convincing representation to the powers that be, in order to make this change happen. The outlook for UCB in 2021 is bright. We have some really exciting initiatives in the pipeline for our members and their customers, while the evolved role of the channel that has resulted from COVID-19 has presented us with some really exciting strategic and tactical opportunities, which in turn will be our focus for the near future.
John Dib, Managing Director, Metro Petroleum Highlight one achievement at Metro Petroleum that you’re particularly proud of from over the past 12 months.
Over the past 12 months we have implemented our new convenience store offer, which includes Mr. Whippy, Cold Rock, DG Tobacconist, and the Petit Café. At Metro Petroleum, we hold great pride in our people and our mantra is: ‘Our people are our fuel’. Our people all work together and across many different areas of the business. We treat all our employees like family and have found that this helps drive performance and loyalty. We value our staff and assist them to achieve the best they can and promote cultural diversity. Without the right quality people, the business would not have grown to what it is today.
What do you enjoy most about convenience and what is one challenge you’d like to see addressed in the industry? The most enjoyable part of convenience is the dynamic nature and opportunity, and the continual evolvement of offers. We have found that we need to focus on what the customer wants and needs, which has changed since COVID-19 happened. At the same time, we aim to seek a point of difference in the industry to encourage consumers to support the independent network.
Every week we see the changes in consumer trends and habits and we work hard to meet these requirements. As we are a family operated business, and Australian owned, we can change and adapt very quickly, which has greatly assisted in the evolution of our offer.
What is the primary focus for Metro Petroleum in 2021?
The priority of Metro Petroleum is to be the number one independent fuel and convenience offer. We will continue to expand our network and ensure that consumers get a quality fuel and convenience offer at a fair price. We are known for the price of our fuel, which continues to drive in customers and shows how important it is to complement your entire offer.
How do you envision the next six months for convenience retail?
The next six months in convenience will continue to attract more, and new, consumers through the evolution of our offers. We see consumers wanting the convenience of a one stop offer and we will be working towards meeting these needs. We are sure that convenience retail will become more of a norm for people as they continue to hesitate to return to large shopping centres. June/July 2021 | C&I | www.c-store.com.au 41
2021 LEADERS FORUM
Robert Anderson, Director, APCO Service Stations What is the focus for APCO in 2021?
We have solid plans for growth in the key areas we have been working hard on, for many years. Coffee and foodservice have been our passion and we are continuing along that focus with essential training and re-training to improve the quality and consistency of our offer. I am optimistic about the outlook for APCO and the convenience channel overall in 2021. We’ve never had such growth and customer numbers entering our stores. It reminds me of the early pioneering convenience days in the late 80s and early 90s, before deregulation of shopping hours, when shoppers ‘shopped’ all our aisles for basic groceries and essential items. Convenience is still our core strength, will remain our strength, and we are the channel to watch.
How do you envision the next six months for convenience?
I’ve been in convenience for more than 32 years and I’ve never been more passionate and excited about this channel and our opportunity for growth. If the past six months are anything to go by, then we’re in for a good ride and convenience retail will continue to outpace the rest. It will be up to convenience retailers to ensure we capitalise long term on the changed consumer behavioural trends due to COVID-19. Let’s hope the channel continues to inspire and innovate, and keep aligned with consumer value perception to ensure we retain these new shoppers.
How do you see the retail and foodservice model through P&C evolving to meet changing consumer needs?
I’m a firm believer in the bricks and mortar, traditional convenience model, with good old fashioned customer service. In saying that, I expect the trends in retail and foodservice to continue with an emphasis on evolving technology and healthier choices. E-commerce within P&C has emerged more rapidly than I ever expected, and we are perfectly placed with small format, local neighbourhood stores with quality facilities operating 24-7, for online ordering and delivery. This digital reach is introducing new convenience customers and incremental sales in parts of the day where we have been traditionally less busy, therefore online is a natural step and highly complementary to P&C. Obviously, evolving our foodservice menu throughout the day will enhance the e-commerce opportunity, particularly for evening meal time as this is when the consumer is prepared to spend more on themselves and family. Healthier alternatives and choice are also key to meeting consumer needs and there is significant work to be done in P&C to help change consumer perceptions that we are not just a sweet and treat stop. This task is a huge investment and growth mindset for P&C, as consumers still love the fat, sugar and caffeine that contribute most of our profits. However, to remain relevant and competitive within the market, P&C must be prepared to commit to the investment and effort required.
Glenys Tristram, Senior Marketing & Communications Coordinator, NightOwl Convenience Highlight one achievement at NightOwl that you’re particularly proud of from over the past 12 months.
The NightOwl network and brand continues to grow as within the last 12 months we have purchased, developed and redeveloped a number of new sites, primarily in regional Queensland. We have had some wonderful comments come in, particularly from new customers in the Townsville region that express gratitude for our inclusion within the community. We recognise that growing regional communities have late night or early morning convenience needs that have not been met, and NightOwl can fill this need with our highly competitive fuel pricing, and convenient food and top-up shop offers.
What do you enjoy most about convenience and what is one challenge you’d like to see addressed in the industry?
Convenience is for community. Being present in one of our stores when a customer walks in and initiates a fun social exchange with the franchisee while making a purchase is one of the reasons why I love this industry. The challenge is to continue to work with trade partners to secure the pricing that allows us all to remain competitive. Trade partners know that convenience offers opportunities for sales outside of the typical supermarket hours and locations, so we must 42 June/July 2021 | C&I | www.c-store.com.au
continue to close the gap on pricing to incrementally work forward dispelling old fashioned consumer convenience store pricing perceptions.
What is the primary focus for NightOwl in 2021?
We are equally focused to meeting the needs of both our franchisees, and our customers. For our franchisees, we take the time to carefully develop systems and training that will ensure their success. Many of them work long hours, and we are constantly innovating to improve processes that will free up time, and add value to their bottom line. We also focus on keeping ahead of our customers' needs, this means making sure our shelves are always fully stocked with items that they want to purchase. Focusing on the core basics of good business practice is always our priority.
How do you envision the next six months for convenience retail?
Convenience retail over the next six months will continue to revolve around the shop local, support local theme. Customers that rediscovered the joy of a fast, safe, affordable and quality experience with their local convenience store will likely continue to shop with that store provided the customer service standard remains high and personalised.
2021 LEADERS FORUM
Steve Cardinale, Managing Director, New Sunrise Highlight one achievement at New Sunrise that you’re particularly proud of from over the past 12 months.
New Sunrise saw double-digit sales growth across all major suppliers, grew its store count as a group, and were recognised and rated by suppliers, again, as the number one independent national retailer in Australia through the CMA Pulse survey. However, the one achievement we are most proud of is our fast and comprehensive response to COVID-19. We were the first to deploy a comprehensive COVID kit including sneeze guard, revised store floor plans (the loop store) and COVID communication at the pumps, front door, and counter. We doubled down on advertising and increased our promotional activity. For the first time, New Sunrise ran across a national digital and free to air TV advertising campaign promoting each of our retail members. We created a 12-week c-store bootcamp for retail members to refocus and reignite their sales post lockdown periods. And we held five online industry events with experts to help retailers and suppliers stay informed about changes, stay connected in the digital world, and keep lines of communication open. Despite being separated physically, we remained connected in a much greater way. Further, I am proud that we had the courage and the resolve to hold our annual conference in Port Douglas in April this year.
What is the primary focus for New Sunrise in 2021?
New Sunrise is focussed on helping our retailers ‘buy better, sell smarter and bank more’. Two of our key initiatives are: 1. We want to make sure that everyone in Australia knows that a New Sunrise Enjoy Local store is a genuine local who works and lives with the locals. 2. Community engagement. We are extremely excited of our recent announcement where New Sunrise will fund and place 400 defibrillators (AED) across its network, giving millions of people access to this potentially lifesaving device. New Sunrise has partnered with Heart of the Nation founder, and original Yellow Wiggle, Greg Page in this initiative, and further reinforces the key role independent retail stores play in their local communities. With a large proportion of consumers intending to work from home for at least two to three days a week, convenience retail has a great opportunity to consolidate growth over the supermarket chains. There is further opportunity to drive this via food service and coffee, but this is only one part of the modern convenience retail offer. I see this as a new golden era of the modernised corner store, with fair consideration and respect to a new product and pricing mix to attract and retain the local shopper.
Lou Jardin, Managing Director, SPAR Australia Name a highlight from the past 12 months.
We are now some 14 months from the full outbreak of COVID-19 and we are very pleased with our performance when you compare it against recent results from Coles and Woolworths. Both Coles and Woolworths recently announced their sales results for the first quarter of 2021 – Woolworths were down around two per cent and Coles were down six per cent. We at SPAR achieved a non-tobacco sales growth of 3.8 per cent for the same period, a result we are extremely proud of. It really shows that during COVID, many new customers that visited our stores for the first time have stayed. We are now seeing the market tighten up following the reduction of Government subsidies, but SPAR is well placed to ride the next wave.
What is one challenge you’d like to see addressed in the industry?
The biggest challenge facing us is how quickly we can adapt to the changing consumer needs built on the events of the last 12 months, specifically with online shopping, food-to-go, grab-and-go snacking, and healthy eating (including plant-based). The consumer is all about ease and convenience at affordable prices. The new consumer wants convenience but is resistant to gouge pricing. We at SPAR are focussed on developing strategies around the convenience aspect, but at competitive pricing.
What is the primary focus for SPAR in 2021?
We at SPAR are extremely focussed on improving our range offer and expanding categories that are driving the growth all while improving our competitive offer. Both of these aspects have taken many years to build, and we are now at a point where the hard work is showing big dividends. Together, with these critical components are the confidence that SPAR retailers are showing in the SPAR System. We hope to build on the hard work thus ensuring the profitability of the network.
How do you envision the next six months for convenience retail?
As the major chains push harder and harder into convenience retail, we will see the market tightening up for smaller independent stores. Independent stores have benefitted from COVID as consumers in increasing numbers shopped local and shopped more often. The rest of this year could be increasingly tough for the poor operator, especially those that took advantage of the increased demand to profit excessively. At SPAR we are just about to embark on a very exciting phase of growth. More details will be unveiled as we work through the final stages of the plans. Plans that will take us through to the end of this decade. We at SPAR are extremely bullish due to the foundations built on hard work of all the stakeholders thus ensuring that SPAR and its many retailers we see continued profitable growth for the network in the future. June/July 2021 | C&I | www.c-store.com.au 43
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Refreshing Fruit Drink
The Mildura brand has grown +300% in the last 12 months
*
EAN
Sku Code
Description
9310113901035
8479
Mildura Orange & Passionfruit BTL 500ml (6)
9310113901004
8480
Mildura Apple & Guava BTL 500ml (6)
9310113901028
8482
Mildura Orange & Mango BTL 500ml (6)
Order Mildura today from Bega Dairy & Drinks. Call 1800 000 570 or email customerservice@bega.com.au *Iri Value Scan, AU Total Convenience, MAT 07/02/2021 vs MAT 09/02/2020
KOMBUCHA
TRADING UP There is huge potential to recruit new customers into kombucha with products that feature authentic recipes and quality ingredients.
Chilled offlocation ranging alongside ‘graband-go’ food options are an interesting way to drive trial by tapping into a key consumption occasion.” – Natasya Wright, MOJO Kombucha
T
he popularity of kombucha is showing no signs of abating, but consumers are becoming savvier, and their understanding of probiotics has increased.
According to Justin Nel, Lead Consultant, IRI, there is a growing awareness that a lot of the probiotics and thereby the benefits of kombucha are killed in the stomach acid before reaching the gut, which is making shoppers rethink their preferred brands. “Looking at brand performance there is a movement towards kombucha products that provide the greatest chance for the probiotics to reach drinkers’ intestines and colon, this targeted release or encased probiotics are available in Perkii and Nexba both in value growth of 130 per cent and 316 per cent respectively,” he says. The overall kombucha category is in value growth of four per cent for 2020 versus 2019 in the convenience channel, and it is these targeted release products that are driving the growth.
46 June/July 2021 | C&I | www.c-store.com.au
“Kombucha products offering targeted release or encased probiotics are driving this growth as consumers want to ensure the optimal efficacy and benefits. Meaning that the probiotics survive the stomach and make it to the gut,” says Nel. According to Matthew Blake, National Sales Director, Rok Kombucha, an opportunity for retailers would be to consider splitting kombucha into two categories in-store: mainstream and authentic. “Consumer awareness of the word kombucha has grown through marketing, however, we are continuing to see consumers become more educated regarding the difference in ingredients, process and benefits within the category,” he says. “The kombucha category could be split into two sub-categories, which include mainstream kombucha (soft drink like, ambient, no sugar and diluted kombucha), which is very competitive with some cheap price points in the market.
KOMBUCHA “The second category continues to grow as consumer awareness grows, which is authentic kombucha (undiluted, low sugar and kept chilled to prevent further fermentation due to the living nature of the product).”
INNOVATION IN KOMBUCHA Natasya Wright, Organic & Raw Sales Director, MOJO Kombucha, says that recruiting new customers is the greatest opportunity for category growth. “The P&C channel is extremely important to MOJO Kombucha as we want to be able to offer busy shoppers who are on the go a low sugar, gut-friendly alternative to traditional soft drink or juice,” she says. “MOJO Activated Kombucha is currently our most widely distributed product in P&C, but in the past 12 months our team has introduced two new product innovations.” These include MOJO’s new 55ml Gut Shot range, which has been highly incremental, with 50 per cent of sales to date being incremental to category spend, bringing new customers and sales to the category and retailer. The second new release is Mojo Kombucha Soda, a soda with fibre that offers a prebiotic effect to support gut health. It comes in three flavours, including Tropical Twirl, Berry Blitz, and Cola Kiss. “We always aim for best possible execution with our retail partners, often investing in point-of-sale pieces, packaging solutions and geotargeted advertising to support success for all parties. “For example, MOJO Kombucha Soda is packaged in bright, stackable shelf ready shippers for better on shelf visibility. We also offer our customers a custom point of sale suite and case stackers for off-location displays,” says Wright.
Meanwhile, Rok Kombucha has developed a new range called Rok+, which comes in five SKUs, including Immunity, Clean Energy, Chill, Beauty, and Recovery. “Following the functional drink trends, we have developed a lightly sparkling functional range of beverages called Rok+, infused with functional adaptogens, probiotics, botanicals and nootropics. “We believe the range is well suited to the P&C channel and have plans to present at upcoming range reviews,” says Blake. The kombucha category has followed similar trends to what transpired for most beverage categories in P&C, with the COVID environment leading to a decline in impulse sales, particularly in CBD and inner-city locations, partly offset by strong growth in suburban and regional locations. But with Australia reopening and people having a more health-conscious mindset, brands are starting to see growth once again. One of those brands is Remedy Drinks, which according to the latest quarter of data from IRI, currently holds 67 per cent market share of the category through convenience, which is up around 10 per cent from a year ago.
P&C is massively important to us in helping make Remedy more accessible and encouraging trial, capturing people on-the-go to give them a better, tastier alternative when it often matters most.” - Santino Luciano, Remedy Drinks
Santino Luciano, General Manager – Sales, Remedy Drinks, highlighted the brand’s strong growth over the last quarter and said that the P&C channel is hugely important in driving trial with new consumers. “One thing we have picked up in our insights is that kombucha is purchased mid-afternoon at the exact same time as a sugary soft drink. Being front of mind as a healthier alternative is therefore something we are focussing on,” he says. “P&C is massively important to us in helping make Remedy more accessible and encouraging trial, capturing people on-the-go to give them a better, tastier alternative when it often matters most. June/July 2021 | C&I | www.c-store.com.au 47
KOMBUCHA
My advice for retailers to upsell any beverage to kombucha is that it is a great alternative to a full sugar beverage, with a full-bodied taste, plus the added benefit of probiotics for gut health.” – Matthew Blake, Rok Kombucha
ADVICE FOR RETAILERS When it comes to pushing kombucha sales through P&C, Luciano’s advice to retailers is, “don’t write kombucha off as a niche health offer”. “Consider how you can position it to become a consideration for the consumer who wants a refreshing drink but doesn’t want to sacrifice either health or taste. Think about proximity to offers like sparkling water or diet soft drinks. Kombucha is generally priced at a premium, so converting a water or soft drink purchase into a Remedy is going to deliver greater sales to the store.
“We’ve made some great inroads already, but we believe we can convert a lot more people to choose a Remedy over another fizzy drink filled with sugar or artificial ingredients. Our P&C retail partners are actively looking to evolve their ranges across the store to make them healthier, Remedy has a responsibility to support this evolution through kombucha and other beverage offers.”
“We’ve also seen good results in P&C from bundling Remedy as a meal deal with healthier food options like wraps, sushi, salads and healthy snacks. Our other point of difference is that we can be sold out of the fridge and have had some innovative P&C retailers begin trialling ambient off-locations with our four-packs to tap into our highly loyal heavy consumers.”
Across Remedy Drinks’ portfolio, kombucha is the top performer as a range across all brands, with its hero 330ml glass impulse pack being a favourite across the P&C channel.
Wright from MOJO Kombucha agrees with this strategy, saying: “Look at meal bundling as 43 per cent of kombucha is consumed with meals (Colmar Brunton 2019). Chilled off-location ranging alongside ‘grab-and-go’ food options are an interesting way to drive trial by tapping into a key consumption occasion.”
Flavour wise, Raspberry Lemonade has been a mainstay leader for some time, followed closely by Ginger Lemon, however a couple of newer flavours have travelled up the ranks very quickly with Mango Passion and Wild Berry both performing strongly.
Consumers have shown that they are willing to pay a premium for a product that they know will meet their authentic kombucha needs. Rok Kombucha’s Blake suggests placing premium, authentic products with better eye-level positioning.
“We’ve recently launched a Cola kombucha flavour, which we believe has huge potential to recruit new consumers to kombucha, or more specifically Remedy, by giving them the world’s most popular soft drink flavour in kombucha form. It’s early days but already showing really positive signs,” says Luciano.
“My advice for retailers to upsell any beverage to kombucha is that it is a great alternative to a full sugar beverage, with a fullbodied taste, plus the added benefit of probiotics for gut health.
“In terms of NPD to come, all I can say is watch this space in September when we will be launching something completely new for us and completely new for the P&C channel.” 48 June/July 2021 | C&I | www.c-store.com.au
“If it is the Rok Kombucha difference, then also share that only real ingredients are used (no natural flavours or sweeteners), made by an award-winning winemaker in the premium Margaret River region, but more than anything we are an Australian family-owned and made product,” he said. C&I
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COFFEE
If you stay still and do not invest in your coffee offering in-store, you will be left behind.” - Geoffrey Marks, Tiger Coffee
CASHING IN ON COFFEE
Rising demand for coffee has created a huge opportunity for convenience stores, writes Claire Hibbit.
C
offee has become a crucial component of the petrol and convenience (P&C) offering. Whether it be selfserve or barista-made, Australia’s coffee drinkers are creating new opportunities for convenience retailers.
The impressive growth of hot coffee sales has helped the channel maintain stable profitability in recent years. But, despite being the channel’s fastest growing category for the last five years, it has felt the impact of the pandemic over the past 12 months, most notably due to the working from home scenario. Theo Foukkare, CEO of the Australasian Association of Convenience Stores (AACS), says data from the 2020 AACS State of the Industry Report found sales have declined $11 million year-on-year, which meant overall dollar contribution declined from 3.4 per cent in 2019 to 3.2 per cent in 2020. “Across the entire channel in coffee, there were some winners and losers. Stores around CBD locations were significantly impacted by the work from home shift due to COVID-19. We anticipate that as we return to ‘the new normal’, coffee transactions and value will be back in growth in 2021. 50 June/July 2021 | C&I | www.c-store.com.au
“Margin percentage was slightly down although margin contribution declined $7.5 million on the back of the sales decline. But despite the drop in sales in 2020, hot dispensed beverages has still doubled its sales in the channel over the past five years,” he explains. “While the hot beverage mission declined overall, it was still the second biggest driver to store. Frequency of visits was down in 2020 for the hot beverage shopper, however, spend increased 16 per cent. This spend increase was driven by more items purchased in basket, with a noted increase in cross purchases of snacks, grocery and general merchandise.” Bucking the sales trend throughout COVID-19 was NSW-based service station and convenience store retailer Urbanista, with coffee its number one sales category despite the challenging trading environment. “Coffee is the key driver for us to get customers in-store and it was a lifesaver for us during COVID-19,” explains Eddy Nader, Managing Director of Nader Petroleum Group and owner of Urbanista Cafe & Convenience.
COFFEE Nader says Urbanista takes a “scientific approach to coffee”, with all stores hosting bi-monthly staff training sessions with its coffee supplier. “Training is so important to us. We train our staff on how to make coffee as baristas before we teach them how to serve a customer on petrol. Existing staff also undergo refresher courses so that they continually have the most up to date knowledge.” Urbanista also sells its own coffee blend of pods and beans, which is used onsite in all four stores across its network. The Urbanista branded blend has been created in partnership with a Melbourne-based boutique roaster.
QUALITY BLENDS While convenience is still the major driver for retailers, the obvious trend is towards serving higher quality coffee.
“EG have also begun opening fully-dedicated cafes within some of their P&C sites as they look to expand their offering to align more closely with their European sites, many of which have dedicated cafes as part of their standard network.” Schirato says retailers should take their cues from their customers and understand what’s important for them across individual sites. “If it’s affordability and speed of service, then an automated bean to cup offering may be the best solution. “If their customers are willing to wait a little longer for a higherquality coffee, then a barista solution would be more suitable. In this case, they should be prepared to invest in trained baristas as the skill of the barista has a direct impact on the quality of the final cup.”
That’s according to Rolando Schirato, Managing Director, Vittoria Food & Beverage, who says Vittoria’s Caffe Aurora brand plays an important role in the convenience channel via a long-term partnership with Caltex (now Ampol) and a recently formed partnership with EG (Euro Garages).
Schirato says the company has seen a number of new innovations and tools available to convenience retailers to assist baristas improve consistency, including grinders with bluetooth technology that automatically adjust grind size for the correct extraction; automatic tampers to promote correct tamping pressure and levels and automated milk steamers.
“Automated coffee offerings have moved away from powdered vending solutions towards bean to cup offers that use whole bean coffee, ground fresh to order with the addition of freshly foamed milk.”
Vittoria has recently introduced a number of products with a specific focus on convenience as its range of aluminium Nespresso compatible capsules, which launched a year ago exclusively with Woolworths, are now available to the wider market.
According to Schirato, enhancements and innovations in this style of equipment help deliver a better-quality coffee through improved espresso coffee extraction and milk texture.
“We set out to create new, convenient coffee experiences for all our customers. These new products deliver on the distinctive Vittoria taste and offer our customers unrivalled convenience to enjoy our legendary 100 per cent Arabica blends,” says Schirato.
“Alongside these improvements we’re also seeing a trend towards barista-made coffee as P&C retailers provide consumers with access to high-quality, cafe-like coffee on the go and more conveniently than ever.
Vittoria has also recently announced the introduction of several signature Vittoria Coffee blends into new convenient formats including instant coffee and coffee bags.
“Ampol’s Foodary brand has seen the opening of approximately 85 dedicated barista-run coffee sites, using state-of-the-art traditional espresso equipment that you’d see in your best local cafe.
Vittoria’s instant coffee is the first instant coffee ever made with its famous blends of 100 per cent Arabica beans perfected over 64 years of roasting tradition.
The P&C channel needs to serve reliably consistent coffee beverages that prove highest in-cup quality with every beverage, from the first coffee in the morning, to the last cup at night.” – David Downing, Franke Coffee Systems
June/July 2021 | C&I | www.c-store.com.au 51
COFFEE
“The P&C channel needs to serve reliably consistent coffee beverages that prove highest in-cup quality with every beverage, from the first coffee in the morning, to the last cup at night,” says David Downing, Sales Director Oceania, Franke Coffee Systems, a leading supplier of professional fully automatic coffee machines. The freeze-dried instant blends capture the richness and balance of a traditionally prepared Vittoria Coffee in the convenience of an instant. Available in four 100g jars, including Original Classic, Italian, Latte and Mountain Grown.
TECH TRENDS The pandemic has created new challenges for every coffee business, including P&C. Hygiene is essential, and this is where fully automatic professional coffee machines have an advantage. Geoffrey Marks, Commercial Director, Tiger Coffee, says machine automation, contactless delivery as well as monitoring the results through data is having a significant impact on equipment advancements. Tiger Coffee recently completed a national roll out into Coles Express stores of more than 900 Eversys Cameo coffee machines during COVID-19. A new entrant to the P&C channel is FreshFood and its House of Robert Timms range of roast and ground, and soluble coffee. “The recent trends we have noticed is around equipment specifically. The equipment used for making coffee is more automated and smarter than in the past. It has the ability to offer multiple drink formats, from traditional coffee Australians know and love to cold brew and flavoured,” explains Karen de Leeuw, Business Director, FreshFood. “It also allows for customisations such as plant-based milks being offered alongside traditional milk. The coffee machines are becoming smarter too, with touchscreen menu selectors, tap and go payment direct at the order point and back to base telemetry, which ensures that the machines operate at an optimal level. It allows for true predictive maintenance to take place reducing downtime due to breakdowns.”
We’re seeing a trend towards barista-made coffee as P&C retailers provide consumers with access to highquality, cafe-like coffee on the go and more conveniently than ever.” – Rolando Schirato, Vittoria Food & Beverage
According to Downing, new milk variants are adding new dimensions to traditional coffee beverage choices and creating a market for new demographics. “It is reported that more than 18 per cent of milk beverages served in the cafe sector are made with non-dairy milks. This translates into over 500 million cups annually that P&C operators need to have access to.” In response to this, Franke Coffee Systems has recently launched the new IndividualMilk Technology for its Specialty Beverage Station (SB1200). IndividualMilk Technology enables both dairy and plant-based milks to be prepared completely separately from one machine. “Purely vegan and purely dairy milk choices in one fully automatic coffee machine lets P&C locations realise growth in their coffee business by attracting new customers, increasing customer loyalty and boosting profits. And this with only a single machine footprint.
VALUE AND PRICE Tiger Coffee’s Geoffrey Marks, says quality with consistently good coffee is now a non-negotiable in-store regardless of price. “A number of P&C retailer groups are investing to ensure they have the very best offering to take advantage of emerging and ever-changing consumer trends around coffee.” He says word of mouth through the coffee experience is now influencing consumer habits, so it is vital to ensure the coffee experience in-store is a value as well as a price proposition.
TAPPING INTO NEW MARKETS
“It was only a few years ago that convenience stores offered a limited range of non-perishable food and beverage items, but the consumer is now responding positively to a higher quality of offering, which includes specialty coffee in various sizes and configurations.
Retailers are increasingly tapping into the growing trends of lifestyle choices, such as plant-based/vegan milks and allergenfree milks.
“If you stay still and do not invest in your coffee offering in-store, you will be left behind.” C&I
52 June/July 2021 | C&I | www.c-store.com.au
theo@aacs.org.au
www.aacs.org.au
CONFECTIONERY
SUGAR RUSH Confectionery’s sweet success continues in the convenience channel, writes Claire Hibbit.
C
onvenience shoppers still have a sweet tooth for traditional confectionery snacks, with the sugar confectionery category remaining a tried-and-true favourite over the past 12 months within the petrol and convenience (P&C) channel. According to Theo Foukkare, CEO of the Australasian Association of Convenience Stores (AACS), data from newly released AACS State of the Industry Report 2020 found the confectionery category achieved growth of 3.5 per cent over the past 12 months, an increase on 2019’s growth rate of 2.1 per cent. Foukkare says the category delivered an extra $18 million in value, while the margin percentage of confectionery was up 0.3 per cent from 45.9 per cent to 46.2 per cent and delivered an extra $10 million in margin. The report also noted that the average basket spend with confectionery in basket is $11.70 per visit, with fuel the main shopper mission for confectionery purchases (36 per cent). “Confectionery shoppers are more likely to notice promotions than average, with 46 per cent noticing promotions in-store versus the total channel of 36 per cent,” says Foukkare. Lollies continue to be a key value contributor within the confectionery category, delivering more than $76.9 million1 annually. The key driver of this is medium bags, accounting for more than 51 per cent of lolly sales and driving 11 per cent growth.1
54 June/July 2021 | C&I | www.c-store.com.au
CONFECTIONERY
Confectionery shoppers are more likely to notice promotions than average, with 46 per cent noticing promotions in-store versus the total channel of 36 per cent.” – Theo Foukkare, CEO, AACS
“Confectionery remains a highly impulsive category,” explains Anna Matheson, Convenience and Impulse Channel Manager, Nestlé Australia, “with consumers buying 20 per cent more items than initially planned when shopping2. “A shift in occasion from, ‘snack for now’ to purchasing for later has seen the greatest impact on lollies' penetration2. The role of brands in times of uncertainty also plays a pivotal role, with 38 per cent of customers preferring to consume brands they know and trust and 10 per cent always looking for something new to try2.”
WHAT’S DRIVING CATEGORY GROWTH? Established brands continue to drive greatest growth within bags, with smaller brands also experiencing increased ranging and distribution. For Grocery Corp, whose global confectionery brands include Nerds, Jelly Belly, Gobstopper, Hi-Chew and Toxic Waste, P&C represents a different purchase occasion for consumers to engage with its brands, usually within impulse confectionery items. “2020 was an extremely unpredictable year, and the effects of the COVID-19 pandemic were felt throughout the P&C channel more so than other retail channels,” explains Jenelle Trisic, Marketing Director, Grocery Corporation. “However, as family road trips and domestic travel incentives increase, we have seen P&C sales follow, so we are looking forward to strong growth opportunities for 2021.” According to Trisic, an emerging trend within the Grocery Corp range is the interest in flavour experience. “Consumers are loving the bold fruity flavours and textures in the Hi-Chew range, and the indulgent flavour experience of Ice Cream Mix & Donut Shoppe from Jelly Belly.” The Nerds brand also recently underwent a major brand refresh, with modernised packaging and a revitalised marketing program to support. “We have seen a big increase in distribution points on key impulse lines in the Nerds range as a result,” says Trisic of the rebrand. “Jelly Belly has also recently launched a new Vegan Chewy Candy – this range is an important part of our growing betterfor-you offer in 2021.” June/July 2021 | C&I | www.c-store.com.au 55
CONFECTIONERY
Jelly Belly has recently launched a new Vegan Chewy Candy – this range is an important part of our growing better-for-you offer in 2021.” – Jenelle Trisic, Marketing Director, Grocery Corporation
NEW FLAVOUR CREATIONS With a variety of incremental formats, including medium and bulk bags in addition to travel cups and mini bags, Allen’s is one of the leading lolly brands in the market.
“Formats such as Allen’s mini bags and Allen’s travel cups are fit for purpose in the convenience channel for on-the-go occasions, which add incremental sales to the Allen’s range.”
STORE PLACEMENT OPPORTUNITIES
“2020 was a very strong year for the brand, growing 14.3 per cent in medium bags and driving an incremental $1.94 million to the channel1,” explains Nestlé’s Matheson.
According to Matheson, 32 per cent of shoppers purchase lolly bags near the front counter, and 21 per cent off a floor display, reinforcing the role of visibility on the path to purchase.2
Allen’s is also a market leader in bulk lolly bags with a portfolio of fan favourites.
“Penetration remains an opportunity for retailers, with 12 per cent2 of shoppers buying lollies. COVID-19 has played a critical role in increasing shopper penetration within sharing formats, in particular lollies.”
“Retailers who are engaged with home delivery platforms have seen great success with Allen’s bulk products, particularly post COVID-19 and the increasing shift towards sharing occasions with friends and family. Allen’s iconic lollies Snakes Alive, Party Mix, Retro Party Mix, Red Frogs, Cheekies and Killer Pythons remain fan favourites and collectively drive close to $13 million in the P&C channel1. “Innovation helps to inject new news into the category, while always being supported alongside core range to drive growth across the brand.” Allen’s expanded its offering in 2020 with the launch of Allen’s Sourz Randoms, which delivered incremental penetration to the category. Following on from its success, the team at Allen’s have taken its iconic red frog and given it a sour twist, with the launch of Allen’s Sourz Frogs Alive. “We know how much Aussies love Allen’s Frogs Alive and that sour lollies are a trending flavour profile among lolly lovers,” explains, Joyce Tan, Head of Marketing, Nestlé Confectionery. “We thought we would combine the two and create something we know our customers will love.” Allen’s Sourz Frogs Alive launched in a 170g medium bag and a 58g mini bag in March.
56 June/July 2021 | C&I | www.c-store.com.au
Driving sales at counter and off location displays are crucial to conversion by reaching the consumer with multiple touchpoints. Rotational flavours also play a key role in driving excitement and penetration into the category. Allen’s had significant success with its 2020 collaboration with Oak milk. Launching medium bags in two flavours, the iconic Oak classics (strawberry, malt and chocolate) as well as an iced coffee flavour, resonated highly with convenience shoppers given the strength of the brands in the channel. In 2021, the team have launched Allen’s Ice Pops and Sorbet Cones lollies. Whether you’re an ice pop or sorbet lover, Allen’s has a lolly for both, taking classic juicy ice block flavours of raspberry and lemonade and re-imagining them into lollies, so you can enjoy the taste of summer any time of year. For lolly fans who love something different, Allen’s Sorbet Cones feature the latest flavour trends of luscious lychee, summer berry and tangy lemon, shaped into bite-size sorbet cone lollies. “Nothing beats a classic summer in Australia – it’s a season we all love. We wanted Aussies to be able to enjoy their favourite summer flavours all-year round, in a truly unique Allen’s way,” says Tan. C&I Nielsen Scan Australia Convenience MAT to 21.03.21 CMA Convenience Shopper Report 2020
1 2
PRODUCT RANGING
Rok Kombucha looks to expand through P&C Rok Kombucha is Australia’s premium, handcrafted, authentic kombucha offering, and it is our C&I Choice product this month. Consumers are becoming savvier when it comes to seeking out authentically crafted kombucha products and are also wanting to support Australian made brands. In each bottle of Rok is 100 per cent undiluted, batch-brewed kombucha infused with raw cold-pressed juices and Australian native herbs, and it is for these reasons that petrol and convenience retailers should take notice of the brand. Matthew Blake, National Sales Director, Rok Kombucha. Says: “Not being backed by a large commercial business can sometimes be difficult
for a kombucha brand to be noticed in the petrol and convenience channel. On top of this, one of our toughest challenges is that due to being an authentic kombucha, cold chain distribution is required, which differs from many other beverages. “Our range of authentic kombuchas are brewed by an award-winning winemaker in Margaret River utilising only the highest quality white and green teas and raw cold pressed juices. Rok Kombucha is full of beneficial probiotic bacteria and yeast and is natural flavour, extract, and sweetener free making it the only truly craft offering in the Australian market. “I invite retailers to reach out to have a chat regarding the opportunity to support locally owned businesses.”
Walk ‘n Talk launches the Fast Charge Series The petrol and convenience channel has become a go to destination for consumers buying technology accessories and Walk ‘n Talk is the market leader in this space. Walk ‘n Talk’s Fast Charge Series is one of the only products on the market to combine both power delivery and quick charge in the same device. Ryan Price, Channel Manager, Pacific Optics, says: “With many consumers being pressed for time, Walk ‘n Talk’s Fast Charge Series will give consumers the best experience to charge their devices.” Walk ‘n Talk Fast Charge can charge a device up to 70 per cent faster than standard 5W charging, which means less time waiting for your device to charge and more time getting on with what you want. There are currently five high volume lines in the range, although as consumer adoption increases, this will expand rapidly. “Being a market leader in technology accessories, we feel it’s important that our retailers can compete with the majors when it comes to tech,” says Price. “We are very certain consumers are exiting the channel as they can’t find a power delivery or quick charge product, so this new range will satisfy that demand. “Currently the new Apple phones don’t come with a wall charger and therefore consumers will be looking to find a wall charger that works with their power delivery cables. We hope our retailers become the first point of purchase for power 58 June/July 2021 | C&I | www.c-store.com.au
delivery or quick charge with Walk ‘n Talk and we will be launching a huge digital campaign to advise them of which retailers are ranging to visit.” Walk ‘n Talk’s Fast Charge Series has become part of Pacific Optics core ranging and a range of display options (floor stand, clip strip and counter display) have been created for retailers. Please contact Pacific Optics on 1300 237 425 or your local rep to find out more.
PRODUCT RANGING
The House of Robert Timms makes great look easy Building on its strength in single serve coffee, The House of Robert Timms 3-in-1s are convenient and easy-to-use with a great taste. The House of Robert Timms has a range of roast and ground and soluble coffee to suit everyone’s needs. The House of Robert Timms has evolved the category with the introduction of Coffee Bags and the 3-in-1 single serve offerings. The House of Robert Timms Coffee Bags are a convenient, hassle free solution without having to compromise on the quality and flavour of the coffee. The blends are expertly crafted and roasted and each coffee bag is individually sealed, ensuring freshness to give you a 100 per cent barista coffee experience no matter where you are. Available in packs of 8’s, 10's, 18’s and 28’s. The newly developed The House of Robert Timms 3-in-1 Classic and Rich builds on the strength of the single serve offering. There is no doubt Australians love coffee – per capita we consume approximately 1.9kgs of coffee per annum. The average Australian consumer drinks approximately 14 cups of coffee per week.
It is estimated almost 45 per cent of consumers drink coffee in home rather than out of home. As part of extending its single serve offering The House of Robert Timms 3-in-1s has been crafted. Premiumisation is crucial in countries where population growth is slow and coffee markets are mature, such as Australia. In addition, consumers are looking for convenience found in single serve coffee. The new 3-in-1 offering is a convenient, great tasting, portable solution without having to compromise on the quality and flavour of the coffee. Made with high-quality freeze-dried coffee and sealed in 10 convenient single-serve sachet sticks, you can enjoy your smooth white coffee instantly. It's a no mess, no fuss solution in a complicated world. The perfect cup, ‘From Our House to Yours’. For all enquiries, contact The House of Robert Timms’ friendly customer service team on 1800 888 996 or Roberttimms.com.au. ■ June/July 2021 | C&I | www.c-store.com.au 59
PRODUCT RANGING
Australia’s first hemp-infused beverage company launches energy drink Australia’s first hemp-infused beverage company, +hemp, has been the hot name in convenience since 2017 when it launched its first to market hempinfused vitamin waters ‘RESTORE’ and ‘HYDRATE’. Whilst old companies are rebranding in 2021 to jump onto the hemp trend, this well-established company remains at the forefront of healthy beverage options. The newest release, +hemp ENERGY, is set to leave a big impression on consumer trends. Packed with essential vitamins, minerals, antioxidants and a healthy punch of caffeine, it truly is the healthier alternative of its category. With zero sugar, no gluten and made with all natural ingredients and no artificial flavours, +hemp ENERGY lives to its energy promise without the nasty chemicals seen in its competitors – it looks goods and tastes even better. With purchasing behaviour being influenced by the consumer’s growing need for naturally and locally made products, +hemp ENERGY is expected
to do exceptionally well in today’s health conscious consumer market. Being the healthier alternative and Australian made, it is sure to become a consumer favourite. We spoke to the Founder and Director of +hemp Natalie Beaini, who said: "After having seen and come through times of such natural disaster and now a global health scare, there has been a fundamental shift in the consumers conscience. Our company has seen an exponential rise in sales through these times and our category is thriving in all sectors of retail. “People value their health now more than ever, and +hemp endeavours to continue providing a healthier beverage option for every Australian as we speak to this changed social conscience, reminding the consumer that we are also environmentally mindful in our manufacturing and distribution. Health sustainability, our economy, and the environment are at the forefront of our business.”
+hemp RESTORE, HYDRATE and ENERGY are available Australia wide. For more information on these products please speak to your PeleGuy representative on 1300 377 341, orders@peleguy.com.au or visit www.peleguy.com.au.
Fast Vibe premium on-the-go charger The recent situation in the world has changed the way Australians choose to spend their weekends. Outdoor activities, such as camping, hiking and bike riding have become more favourable over spending time indoors. This is where the Fast Vibe Qi wireless solar power bank that is made especially for outdoor enthusiasts is ideal for keeping your devices charged and connected. But it is more than just a portable solar power bank; currently there is nothing similar on the market. The Fast Vibe power bank offers both wireless and USB charging, it is light and compact, making it a great choice for powering devices while being in the great outdoors. Having a huge 10,000mAh battery capacity, it is powerful enough to energise your tablet, smartphone or portable speaker multiple times without having to be recharged. It is equipped with dual flashlights that you can use in an emergency or if you simply need some light in dark areas and also contains a compass kit. 60 June/July 2021 | C&I | www.c-store.com.au
The Fast Vibe power bank supports pass-through charging, which means you can place your smartphone on the Qi-wireless feature or connect it to the USB output port while the power bank itself is being replenished. Thankfully, this power bank will never run out of charge due to the solar receiver. Fast Vibe power bank is made of high-quality materials, which make this power bank not only powerful but also very durable. This power bank has been tested to be shockproof and IXP5 waterproof and even keeps the dust out of its internal structures. You can take it with you whenever you are going outdoors. The device is compatible with Android and Apple smartphones, both for Qi and USB output charging. Solar power your journey today. For more information on these products please speak to your PeleGuy representative on 1300 377 341, orders@peleguy.com.au or visit www.peleguy.com.au.
PRODUCT RANGING
Our Pure Planet changing the game in electronics Our Pure Planet is a global first company that manufactures electronic products that are 100 per cent eco-friendly. Everything the company does is done to provide a great value for customers in a way that not only helps to protect the planet but repairs it as well. Since launching in 2020, Our Pure Planet has had an amazing response in the market and is now one of the fastest growing electronic brands in Australia. Australian consumers value environmental sustainability more than any other attribute and it is Our Pure Planet’s ability to be eco-friendly, which has led to remarkable sales in its first year and why it will continue to drive sales in the petrol and convenience market through its partnership with PeleGuy Distribution. Our Pure Planet focusses on using sustainable and recyclable materials in making all of their products to ensure no impact on the environment. Where they can’t do this, they partner with offset organisations to remove at least 100 per cent of their impact, and sometimes an extra 25 per cent more than they use, helping to repair the planet. This not only benefits the planet but also the people. Our Pure Planet’s plastic collection efforts help to provide
jobs for people in third world countries, which in turn helps to alleviate poverty. Besides the amazing environment and planet benefits of Our Pure Planet, it also produces high quality products. The company has set out to increase the current level of quality products in the market, and it has. All their cables are bend tested 30,000 times each, the headphones are designed to be the perfect fit for the ear, they also use fast charge and chip technology to protect devices, all while being eco-friendly. All products come with a two-year warranty, so that customers know they are not just helping the planet by purchasing Our Pure Planet, but they are buying a product that will exceed their expectations. Moving forward in 2021 Our Pure Planet is kicking off a national PR campaign to help drive the eco-friendly message of its products and the positive impact they have on the planet. This awareness will help supporting retail partners to increase sales at the same time through increased marketing. For more information on these products please speak to your PeleGuy representative on 1300 377 341, orders@peleguy.com.au or visit www.peleguy.com.au.
Stay connected with Vodafone Prepaid Plus Vodafone has recently completed its merger with TPG creating a new telecommunications company with combined resources. For the first time, Australia has a third, fullservice provider that can deliver more choice and value for customers with faster speeds and better performance for customers. Vodafone Prepaid Plus comes with unlimited standard national calls and texts and lets you bank up to 200GB unused My Data. Never run out of data with our $30 to $60 Prepaid Plus plans. First use included data and infinite data at speeds of up to 1.5Mbps 62 June/July 2021 | C&I | www.c-store.com.au
until your recharge expires. To find out more about speeds of up to 1.5Mbps, head to www.vodafone.com.au/prepaidspeed. Save even more, get $5 off every automatic recharge on $30 and above Prepaid Plus plans. Plus, standard international minutes to up to 37 selected countries on $30 to $60 Prepaid Plus plans – all for use in Australia. Great value with our long expiry plans at $150 for 185 days and $250 for 365 days. To find out more about these great plans, visit www.vodafone.com.au/prepaid/plans.
THE HEALTHY ALTERNATIVE
+HEMP
+HEMP
HYDRATE
RESTORE
AUSTRALIA'S FIRST HEMP-INFUSED BEVERAGE COMPANY
+HEMP ENERGY
AUSTRALIAN MADE NO SUGAR ORGANIC HEMP VITAMIN INFUSED
FOR MORE INFORMATION PLEASE CONTACT YOUR PELEGUY REPRESENTATIVE
PRODUCT RANGING
Kinder Happy Hippo arrives in Australia
D.Jays Gourmet: The Australian one stop shop for jerky and biltong
Kinder has launched its first biscuit product in Australia, with Kinder Happy Hippo rolling out to supermarkets and convenience stores nationwide. The hippo-shaped biscuits feature a crispy wafer shell with a creamy and smooth filling, dipped in crunchy meringue sprinkles, and are available in two flavours, Cocoa and Hazelnut. Gina Yuwana, Senior Brand Manager at Kinder said Kinder Happy Hippo is one of the brand’s most popular products globally. “Happy Hippo delivers the signature Kinder taste and quality ingredients in delicious, crispy biscuit form – free from artificial colours or preservatives. It’s a scrumptious combination and one we’re sure will make a whole lot of Aussie families truly happy as they discover these playful tasty treats.” Kinder Happy Hippo has an RRP of $1.00 for a single pack, $4.50 for a five-pack multipack.
Operating out of Perth with more than 20 years experience in the industry, D.Jays Gourmet is a market leader when it comes to air-dried meat snacks. Nurtured by a South African heritage, the team was inspired to bring those exciting tastes and flavours to Australia. They are now nationally ranged throughout the petrol and convenience markets and are happy to help fill your snack food gaps. Using only prime Aussie beef, the D.Jays range includes Jerky, Biltong, Stokkies, Snap Sticks and Dry Sausage. With exciting new product launches and new flavours being released in 2021, D.Jays says: "We are always ready to provide our customers with the best opportunities to maximise sales out of their snack food bays." D.Jays Gourmet also manufactures and distributes the very popular Truckin' Good Jerky range across Australia.
Barista Bros relaunches with multi-million dollar marketing campaign
Coca-Cola South Pacific is relaunching Barista Bros and its new no added sugar Iced Coffee and Chocolate flavoured milk range with a multi-million dollar marketing campaign. The campaign is being led by a TVC that forms part of a wider media investment that spans TV, cinema, online video, social media, out of home, in-store and experiential. Kate Miller, Coca-Cola Marketing Director – South Pacific said, “We know Australians have a love affair with coffee and are becoming more health conscious. “We wanted to have fun with this Barista Bros campaign to highlight the brand-new epic taste as just one example of how we’re delivering products that our customers know and love, without the added sugar.” The Barista Bros Chocolate, Espresso and Double Espresso are now available front of store at Woolworths and Coles, as well as in other grocery outlets, retail, petrol and convenience stores. 64 June/July 2021 | C&I | www.c-store.com.au
The Why Meat Co plant-based and gluten free sausage roll a world-first Australian-based The Why Meat Co has launched what they say is a “world first” plant-based and gluten free sausage roll. The allergen and vegan friendly sausage rolls are made with quality pea protein harvest from yellow and green split peas and are available in both gluten free and wheat pastry varieties. Emma White, Co-founder of The Why Meat Co, said that they wanted to create a product that delivers flavour without the unhealthy punch. “With the demand for vegan, vegetarian and gluten free products on the rise, The Why Meat Co sausage roll is a winner for all the right reasons,” she said. Innovation is at the heart of The Why Meat Co and an expanded product range of products made with pea protein are coming to supermarkets and convenience retailers soon.
PRODUCT RANGING
Meat snacking just got tastier with
DONSKIS DON Smallgoods is making its entry into the petrol and convenience channel.
100g Share Pack
We all know DON Smallgoods… Is DON. Is GOOD. This tagline along with its iconic range of hams, bacon, salami, franks and continentals has made it a famous and trusted brand name. DON is now entering the snacking and convenience arena with new exciting ambient meat-based snacking solutions to satisfy the hungry impulse occasion, with convenient snacking on-the-go. Over the last three years, meat-based snacking has become the fastest growing segment of the ambient snacking category, outpacing chips, corn chips and popcorn. So, who better than the recognisable DON brand to signpost this segment to your customers and help you capitalise on this growing trend.
DONSKIS
Introducing DONSKIS the superior snack of choice. DONSKIS is an ambient meat-based range offering a snack that gives more – more flavour, more convenience, more goodness, more happiness, and more opportunity for growth. DONSKIS is more than a snack – it is a gutsy flavour kick when hunger strikes. Snack strong!
DONSKIS BULLETS
DON has continued the momentum of the successful range of DONSKIS with a new range of bite-sized salami for meat snacking on-the-go with DONSKIS BULLETS, which are a bite-sized version of the original DONSKIS. Fully fermented and matured salami that’s wood smoked and packed with flavour in every bite. They’re a convenient, versatile on-the-go snack in a resealable 100g pouch. Protein in every bite, gluten free, NO refrigeration required. A delicious full flavour snack you can munch on anywhere to take you away from the everyday. DONSKIS BULLETS are available in both hot and mild in 100g pouches. And soon DONSKIS BULLETS will be available in a convenient 45g bag, a more accessible size for the petrol and convenience channel. The launch of DONSKIS BULLETS is being supported with an OOH Shopa panel media campaign that is running until July. To learn more, contact Dean Trovarelli on 0404 910 467 or dean.trovarelli@gwf.com.au. ■
45g Single Serve
DID YOU KNOW…
Emotional snacking is a bigger motivation than physical driver, but people don’t want the guilt. • 33 per cent of occasions are comfort, reward, treat or boredom versus 18 per cent of occasions are hunger. • 63 per cent of Australian adults believe their choice of snacks reflect their overall healthy lifestyle. • Perceived healthier savoury snacks have grown faster in the last 10 years than traditional sweet snacks (four to five per cent vs two to three per cent). • Meat snacks category is dominated by functional, not great tasting offers or indulgent treat-based ones, none of which are products that Australians have grown up with. • 50 per cent of the meat snacks market are jerky and crackle. Salami is a more appealing and familiar product than current meat snacks (62 per cent penetration versus 10 per cent jerky). June/July 2021 | C&I | www.c-store.com.au 65
PRODUCT RANGING
Upgrade your food offering with Edgell Supa Crunch 10mm Delivery Chips Edgell Supa Crunch 10mm Delivery Chips were developed to specifically target the delivery industry, which we all know has grown significantly since the onset of COVID-19. Solving the age-old soggy chip dilemma, Edgell Supa Crunch Delivery Chips stay hot and crunchy for longer with a hold time of up to 40 minutes during the delivery window, or up to 60 minutes if stored in a hot box or under a heat lamp. No matter whether they’re delivered, picked up, eaten in or are sitting in a bain-marie, Edgell Supa Crunch Delivery Chips stay crunchy until the last bite and will elevate the food offering for any petrol and convenience retailer. The chips are also microwaveable and will maintain their crunch if reheated for 20 seconds. Upgrade your food on-the-go offering today with Edgell Supa Crunch 10mm Delivery Chips. Contact Simplot Australia for more information on simplotfoodservice.com.au.
Nostalgic Art Mint Boxes – something new and different Imported from Germany, these mint tins come with sugar-free mint pellets that taste great and freshen the breath. However, it is the tins that are the real attraction here. Nostalgic Art specialises in great looking retro-designed tins that have proven very popular in Europe and the UK. Made from sturdy metal and with a hinged lid, there are more than 120 different designs to choose from. The range covers fun designs like Happy Pills and Anti-Stress Pills, along with fully-licensed designs for the auto market, including Ford, VW, Mercedes-Benz and Harley-Davidson. Embossing on the lid of the tins further enhances the artwork. The tins are ideal for pockets, handbags or consoles. Now available in pre-packed CDUs featuring our best-selling designs or alternatively, contact us to discuss your own mix of tin designs. An ideal impulse buy product. For sales and enquiries, please contact IQ Merchandising on 1300 881664 or www.iqmerchandising.com.au. 66 June/July 2021 | C&I | www.c-store.com.au
Nutrient rich 3i Black Water is proudly Australian owned and operated The unique fulvic trace mineral blend contains more than 72 trace minerals, promotes gut health, cell hydration, nutrition absorption rates and with an 8.5pH+, assists with maintaining an alkaline diet. This is what makes 3i Black Water like no other functional beverage on the market. The nutrient rich trace mineral complex is added to distilled (evaporated) rain catchment water in Melbourne. There are no added colours or flavours and yes, it tastes just like water! 3i contains no fluoride, no chloride and no sugar. There is a maintenance dose of fulvic acid in every 600ml bottle. 3i has recently launched a 350ml glass and 50ml concentrate in response to market demand and sustainability. Minerals are the body’s building blocks for health and vitality. Now you can #MultiplyYourMinerals at any time, quickly and conveniently.
Cadbury Caramilk Hokey Pokey block launches in Australia Cadbury has released the limited-edition Cadbury Caramilk Hokey Pokey block in Australia following its successful launch in New Zealand last year. A delicious fusion of caramelised white chocolate and crunchy honeycomb pieces, Cadbury Caramilk Hokey Pokey adds texture and flavour to the Caramilk chocolate. Katrina Watson, Senior Marketing Manager, Cadbury Australia, said: “Caramilk is one of our most sought after chocolate blocks and what better way to continue the Caramilk frenzy than by blending your much-loved caramelised white chocolate with crunchy golden honeycomb pieces? “When we released Caramilk Hokey Pokey in New Zealand last year, we received such an overwhelming number of requests from Australians, so it was a clear that we had to bring it across to Australia this year.” The limited-edition Cadbury Caramilk Hokey Pokey block is available now in all leading supermarkets and convenience stores nationwide at RRP $5.
PRODUCT RANGING
Santa Vittoria Acqua Minerale is now available in four new flavours
The new range has been launched in 100 per cent recyclable aluminium cans and is free from sugar, artificial flavours, and preservatives. ABOUT SANTA VITTORIA: Santa Vittoria is bottled at the source in Northern Italy, making Santa Vittoria one of the purest waters available. Santa Vittoria mineral water is owned by a third generation family business in Australia; Vittoria Food & Beverage. Steeped in Italian tradition the company began as a result of two brothers spotting the opportunity to introduce a taste of their Italian heritage to their new adoptive country. Since 1947 the company has built a reputation for importing and manufacturing quality foods and is recognised as one of Australia’s leading food and beverage companies. The painting featured on Santa Vittoria’s label is Alexandre Cabanel’s best known work – Birth of Venus (1863). This artwork elegantly depicts the myth of Venus being born out of the waves of the sea, which provides great substance and meaning to the Santa Vittoria brand, as Cabanel's painting conveys the purity and beauty associated with natural mineral water.
Santa Vittoria has released a new range of four sugar-free flavoured mineral waters in a slimline, 100 per cent recyclable aluminium can. The range comprises four sparkling waters, flavoured with a hint of natural fruit essence; Orange & Mango, Grapefruit, Pomegranate and Lemon. Each can contains no sugar, no artificial flavours and no preservatives. “The market is shifting towards healthier carbonated beverages at an increasing rate. The extension of Santa Vittoria into sparkling flavours provides another healthy alternative for customers to enjoy,” says Rolando Schirato, Managing Director Santa Vittoria. In addition to the new flavoured range, Santa Vittoria has released its popular Lightly Sparkling Water in an aluminium can. One of the purest waters available, Santa Vittoria Lightly Sparkling can be found in Australia’s fine dining restaurants, five star hotels, leading supermarkets and cafes. The addition of an aluminium can range sees Santa Vittoria extend its support for environmentally friendly alternatives to single use plastics. Santa Vittoria offsets the carbon emissions from its Italian mineral water imports via its longstanding support for Carbon Neutral – an initiative that has been extended into the new aluminium can range. For more information visit Santavittoria.com.au ■
Santa Vittoria Lightly Sparkling Mineral Water RRP $5.50 for 4 x 330ml cans Naturally Flavoured Santa Vittoria Mineral Water RRP $7.30 for 4 x 330ml cans
June/July 2021 | C&I | www.c-store.com.au 67
PRODUCT RANGING
Bask in an after-hours chocolate experience with new KitKat Dark blocks The KitKat team has unveiled two new decadent dark chocolate flavours – KitKat Dark Tasmanian Mint and KitKat Dark Southern Australian Orange. Created using distinct ingredients from two Australian regions famed for their local produce, the new blocks blend unique local flavours with delicious dark chocolate. The result, contrasting swirls of flavour you can see, are set to excite chocolate-lovers and take fans on an indulgent experience from the comfort of their own home. The two new flavours feature the iconic KitKat crisp wafer fingers topped with swirls of rich dark chocolate. KitKat Dark Tasmanian Mint boasts a refreshing mint choc using oil from the mint plant, grown in the stunning state of Tasmania. KitKat Dark Southern Australian Orange features orange choc using oil from blood oranges grown in the lush South Australian Riverland and Sunraysia region. Nestlé Head of Marketing Confectionery Joyce Tan said: “Dark chocolate is synonymous with moments of everyday indulgence, and as Aussies increasingly spend more time at home, we’re seeing that they want to elevate their evenings with moments of decadence. So, we’re excited to take KitKat and dark chocolate lovers on a journey of discovery, exploring the provenance of Tasmania and Southern Australia with these new flavour pairings. “Using quality ingredients from our own backyard, the new flavours add intrigue to our well-loved dark chocolate range as an indulgent and stimulating chocolate treat.”
Get that cookie filling with indulgent new KitKat Cookie Collision bar KitKat has launched the next generation of its multi-sensorial filled range, KitKat Cookie Collision. KitKat Cookie Collision brings together the iconic KitKat crisp wafer fingers with delectable cookie fudge filling and cocoa crisps, all covered in smooth milk chocolate. The perfect collision of that sweet cookie taste with delicious milk chocolate makes for a more indulgent break, allowing KitKat fans to give in to their senses as they revel in the new flavour. Nestlé Head of Marketing Confectionery Joyce Tan said: “Following the successful launch of KitKat Gooey Caramel and Mint Cookie Fudge last year, we wanted to innovate against a popular flavour and introduce a delicious new bar to the filled range. “The cookie flavour is a universally loved classic, so we’re excited for fans to delight their senses with the KitKat Cookie Collision, making their break all the more indulgent.” KitKat Cookie Collision is now available in Coles, Woolworths and independent grocery and convenience stores nationwide for RRP $2.00. 68 June/July 2021 | C&I | www.c-store.com.au
OPINION
WE CAN WIN THE ALCOHOL DEBATE IF
WE STAND TOGETHER
Darren Park is encouraging the petrol and convenience industry to present a united voice on the sale of alcoholic products through our channel.
L
DARREN PARK CEO United Convenience Buyers
This is the time for us to stand up as an industry with one strong voice and consistent message to achieve one common goal.” – Darren Park
et’s address the obstacles to selling alcohol in the convenience channel… and could non-alcoholic beer, wine and spirits be the perfect stepping stone to selling something fruitier? For years, many in the petrol and convenience (P&C) channel here in Australia have lobbied regulators, looking for a common sense approach to allow the sale of alcoholic beverages, each time resulting in a negative response. Counter arguments being that it would be irresponsible for them to allow or create a new avenue for the sale and purchase of alcoholic products within our channel, potentially encouraging drink driving and underage drinking. This is the time for us to stand up as an industry with one strong voice and consistent message to achieve one common goal. Other P&C markets around the world are able to sell alcohol responsibly with great success, so what makes P&C in Australia different, and more to the point what do we need to do as an industry to mount a convincing argument otherwise? I for one am not trying to downplay the concerns around drink driving, however when was the last time you physically walked to a bottle shop to purchase a case of beer? This in my mind makes the drink driving argument null and void. Anyone that has worked in P&C is well schooled and well versed in the execution and sale of restricted products such as lottery tickets and tobacco. Even the handling, supply and sale of fuel has many rules and regulations – this is something we’ve been able to do for years, so why is alcohol treated so differently? I struggle to understand how the sale of alcohol through the P&C channel faces active government legislation against it, in direct contrast to the safe and responsible sale of other restricted products. In my opinion, this demonstrates a lack of confidence and understanding by government officials that this channel can perform the same levels of responsibility and behaviours similar to that of mainstream alcohol retailers. As an industry, I think we would all be happy to work with legislators on fair and reasonable regulations, allowing the sale and purchase of alcohol within our stores.
70 June/July 2021 | C&I | www.c-store.com.au
Even mitigating what is deemed instant or immediate consumption versus occasional purchasing could be achieved through limiting the sale of product within our stores to a minimum of six-packs, as opposed to single unit sales. This restriction on single unit sales would go some way to addressing concerns around any perceived correlation between P&C purchase and an increase in drink driving.
Testing with zero alcohol beverages could pave the way for more profits and a new segment
So, how would we potentially test the market, our own policies, and of course the safe and responsible sale of alcoholic beverages? Could the ‘zero alcohol’ beverage segment be an acceptable segue into a legalised alcohol sales environment? Could ‘zero alcohol zones’ within our stores pave the way for a new segment? The zero alcohol beverage segment has been with us for a few years now, and I will be the first to admit that early on it didn’t make the splash that some thought it might. There was a lot of confusion as to who the target shopper was and what place (if any) the zero alcohol segment had within our market. The timing however may be right to revisit the zero alcohol beverage segment of beer, wine, and even spirits. Without sounding too over the top, if ever there was a segment that we need to persist with, I think this is it. Having personally spoken to a few P&C retailers who have persisted with this segment, they will admit although initial sales were minimal, indications are that this segment is now outperforming more traditional beverage subsegments, to a point that it’s no longer a question of relevance but more so of how we can give it more space. For me, if there was a measurable benefit to zero alcohol options, it would surely centre around consumers being able to enjoy a beverage taste that they like, while displaying responsible behaviours in the choices they’ve made. And again, setting up this segment for success with careful thought, planning, and execution can only help our industry. Wherever you are on that debate, one thing is clear, consumers being able to make what they might deem to be better decisions for their own circumstances, at their own convenience, is not a bad thing. C&I
Get your product noticed on C&I LIVE TV C&I LIVE TV is engaging, and it works. • Combining visual and audio doubles the impact of your message • Help retailers to remember your brand • Most of us are visual people – it’s how we like to learn “T he te am in vo lv ed w ith th e sh oo t m ad e ev er fe el at ea se , w yo ne ith m an y su gg es tio ns so as en su re a hi gh to qu al ity en d prod uc t. Th is ca m pa ha s in crea se d ig n th e vi si bi lit y of Th e H ou se of Ti m m s, an d w R ob er t e ha ve no tic ed in crea se d in te ra ct io n on ce rt ai n di gi ta l pl at fo rm s. ” Karen de Leeu w Business Direc tor, FreshFood Services Pty Lt d
• Get your brand noticed by thousands of retailers • It’s perfect to explain a new product and add credibility to your brand • Perfect for mobile and ideal for retailers when they are short on time
C&I produces very cost effective, professionally branded video campaigns and delivers them direct to store owners, buyers and sales staff across the convenience, petrol and independent grocery channel.
Contact the team to find out more: Safa de Valois on safa@c-store.com.au Ben Curtis on bcurtis@c-store.com.au
t for us to talk nity has been grea rtu po op TV e liv ry. “The nds in the catego products and tre t ou ab rs ile ta re r, to &A aligned prio really well, with Q It was managed helpful. Great super lovely and e er w t se on le the peop more.” forward to doing experience! Look Coral Grace Manager, Senior Business cery & Impulse, Independent Gro tcare Nestle Purina Pe
OPINION
RETAIL
JEFF ROGUT
AS AN ESSENTIAL SERVICE
Advisor National Retail Association
I
f the pandemic has shown us one thing, it is the dedication and essential nature of frontline retail workers. Despite the praise rightly heaped upon retailers by politicians as essential frontline workers, there is much work needed to address the real issues facing retailers big and small. • Crimes against retailers and their teams must be treated as, and responded to, as serious crime. • We need to change community attitudes that accept customer abuse of retail workers as the norm. • Greater community and social intervention is needed to tackle societal issues rather than expecting retail workers to be ad-hoc counsellors and law enforcement. • Retailers can play a critical part in identifying and supporting victims of domestic and family violence and need support programs nationwide to provide tools and resources. • Given smoking rates reductions have stagnated and retail workers appear to be over indexed when it comes to smoking rates, governments should consider new ways to reduce smoking rates, including properly regulating nicotine-based smoke-free alternatives which are not yet properly regulated and legally able to be sold in Australia. • Retail workers need more resources and education to improve their lifestyle choices such as smoking, nutrition and exercise, and also play a critical role in educating customers. Two important examples that the NRA is focused on to ensure that retailers do receive the support they both need and deserve:
1
Retail Crime is significantly impacting businesses by harming staff, affecting customers, disrupting operations, and eroding profitability.
• Crimes against retailers and their teams must be elevated to serious crime by government and law enforcement in order to reduce physical and mental harm, encourage workers to stay in the profession, and reduce costs on business. 72 June/July 2021 | C&I | www.c-store.com.au
• Retailers have lost confidence in the police response to retail crime in many states. Police need dedicated resources to combat this devastating issue. • Retailers need more support to prevent crime and manage the serious impacts on their workers. • Repeat retail crime offenders rarely face jail time. There should be zero tolerance for criminal behaviour, and harsher penalties for repeat offenders. The NRA is active in supporting retailers in every state by holding regular Crime Committee meetings with our retail members as well as including police, and where appropriate politicians.
Impacts on retail workers:
• Customer abuse leads to long-term impacts like anxiety, stress, and depression for retail workers. • It has become normal for a customer to make a scene to get their way, without considering the impacts on retail workers. • Retailers agree that abuse and crime faced by workers are reasons staff look for other jobs. • It has also become normal to witness a retail worker suffering abuse from a customer and for bystanders to take no action. If a stranger abused you in your office, the police would be called. So why do we accept customer abuse of retail workers?
What's needed?
Despite the praise rightly heaped upon retailers by politicians as essential frontline workers, there is much work needed to address the real issues facing retailers big and small.” – Jeff Rogut
2
Retail workers are facing increased aggressive and abusive behaviour from customers. Instead of viewing this behaviour as abhorrent and calling for prosecution, Australian society seems to accept abuse of retail workers as the norm or part of the transaction. During the pandemic, this area has seen a huge increase.
• Eighty-eight per cent of retail workers experience abuse from customers. • Retailers feel this abuse is more accepted in retail than in other workplaces. • Customers are increasingly abusing retailer policies such as ‘the customer is always right’.
• There is a role for both government and the public to do more and play a part in stopping customer abuse of retail workers. • Retailers require government support to manage and reduce the impacts of customer abuse. • Laws should be stronger so abusive customers can be banned from whole shopping precincts, improving safety for us all. • There needs to be a fundamental shift in community attitudes supported by a largescale campaign. • Abusive behaviour towards retail workers needs to be explained (with everyday real-world examples) so customers understand what behaviour is acceptable and what is not. • Retailers also need assistance in equipping their teams with the skills and tools to better identify and manage escalating situations and also better manage the personal health and wellbeing impacts. As the peak body for retailers in Australia, the National Retail Association will continue to raise issues affecting their staff at the highest possible level of both state and federal governments. To learn more about the issues I recommend that you read the excellent report prepared by the NRA at: Essentialretail.com.au/retailwellness-paper. C&I
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PETROL NEWS
DAN ARMES Founder of ServoPro
PETROL STATION SAFETY: THE TOP 8 AREAS TO CONSIDER A
s the owner of any business, one of your main concerns should be for the safety of yourself, your employees, and your customers. Petrol stations can present both familiar and unique circumstances that may contribute to accidents and hazards in the workplace. Unsafe practices at your petrol station can lead to injury or damage. Here are eight safety areas that you should ensure don’t become an afterthought.
1SLIPS, TRIPS, AND FALLS
Some of the most commonly reported accidents at petrol stations are those related to slips, trips, and falls. Both inside your petrol station, and outside or around your pumps, it’s important to be vigilant about potential slip, trip, and fall risks. Potholes, broken or damaged concrete, and wet pavement can all lead to outdoor accidents. To avoid outdoor falls, maintain the paved surfaces and repair any cracks or holes without delay. Inside your petrol station, use caution when mopping and cleaning floors. Correct signage to indicate spills and wet floors will help to prevent falls from both staff and customers, which can lead to significant injury. 74 June/July 2021 | C&I | www.c-store.com.au
2VEHICLE MOVEMENTS
High traffic areas like petrol stations must have clear and effective signage to control and direct the flow of traffic. Uncontrolled traffic movement can not only lead to collisions between vehicles, but also increase chances of pedestrian injury. Providing easy-to-read instructions and signage will help guide drivers and direct busy flows of traffic. To avoid vehicle collision, parking should be clearly marked at the site. Take care to cover and protect pumps and vulnerable structures such as fuel tanks and storage with bollards. Taking steps to cover these items will keep them guarded against vehicle collision and damage. Employees and contractors who are working on site should be wearing hi-vis vests while on the forecourt to give drivers the best chance of seeing them.
HAZARDS AND WET 3FIRE STOCK MANAGEMENT
Every petrol station owner is well aware of the reality of fire hazards. Proper wet stock management will help you to minimise this risk, protecting not only your employees and customers, but your petrol station itself. Always ensure employees have received proper training and understand the
PETROL NEWS
guidelines and demands of working with flammable materials. Identify potential hazards and eliminate potential sources of ignition. All fuel should be stored safely and according to guidelines. All staff should have completed training in the key areas of working in a petrol station like ServoSkills.
4SHARP OBJECTS
Cuts and lacerations are another common injury that result from poor safety guidelines in the workplace. Protect your workers and customers by giving proper training for use of potential sharps like box cutters. Inspect equipment such as pump handles for sharp or exposed edges regularly.
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WORKPLACE STRESS AND HARASSMENT
A safe workplace can also be defined as one where customers and employees feel comfortable and welcomed. Unnecessary stress or workplace harassment can quickly turn your petrol station into an unpleasant and uncomfortable place to be. Take customer and employee complaints seriously, and ensure that all employees are aware of guidelines for proper workplace etiquette and behaviour.
6HEAVY LIFTING
Lifting heavy stock or operating lifting machinery can be a potentially hazardous task if proper training is not given. Thorough instruction should be given prior to operating heavy machinery such as forklifts. Discourage employees from manually lifting very heavy stock. Failure to regulate these areas can lead to serious injury.
SUBSTANCES 7HAZARDOUS AND CHEMICALS
Fuel is not the only hazardous substance that can be found at your petrol station. Cleaning fluids and other chemical cleaners can be dangerous if not regulated. Teach staff proper protocols in regards to handling and refilling chemical components at your petrol station. Failure to train staff in these procedures can lead to harm or bodily injury such as chemical burns or respiratory issues. Again, we recommend your staff are trained properly through an online training program such as ServoSkills.
8CRIME OR VIOLENCE TO STAFF
Employees working late hours become more vulnerable to crime such as robbery or harassment. To ensure the safety of customers and workers, keep your petrol station well lit and maintain all outdoor and indoor security cameras. Give all workers clear guidance and resources for what to do in the event of an emergency. Though less common than other workplace safety concerns, it is still crucial to have guidelines in place to help protect your staff, customers, and the petrol station itself.
With proper training, signage, and reasonable vigilance, you can avoid both common and unique safety hazards, injuries, and accidents in the workplace.” – Dan Armes
SAFETY FIRST!
Safety is a concern for any business, but petrol stations present unique hazards that must be regulated closely. With proper training, signage, and reasonable vigilance, you can avoid both common and unique safety hazards, injuries, and accidents in the workplace. C&I June/July 2021 | C&I | www.c-store.com.au 75
PETROL NEWS
WILL A BOOM IN NEW SERVICE STATIONS SPARK BOOM OR DOOM FOR THE INDUSTRY? NIC MOULIS Director Customer Relationship Data
What is interesting is that growth has been led by independent retailers.” – Nic Moulis
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Nic Moulis discusses the growth of new service station openings in Australia and what it means for the industry.
ustralia’s petrol and convenience industry has been adding service stations year on year since July 2017. At the same time, cars have greater fuel efficiency or do not use fuel at all. So, a question I keep asking myself is, are we building towards a boom or constructing our doom? The number of service stations being built in Australia tells a story of growth. OPIS data shows that in the financial year 2017-18, there were 6,673 locations selling fuel. By the end of the financial year, 2018-19, this number had increased by 407 sites. Then in the following 12 months, operators added a further 120 service stations. This is a growth spurt of eight per cent. Regional Australia is where the expansion of retail locations is happening. In the years from July 2017 to June 2020, locations outside the greater metropolitan areas increased by 10.3 per cent, from 3,524 to 3,887. Our capital cities however expanded at half that rate, moving from 3,207 to 3,375, a growth rate of 5.24 per cent. There have been distinct speeds in expansion between the states too. New South Wales is the slowest growing state, increasing by 4.19 per cent, whereas South Australia is up 18.7 per cent and Queensland is increasing 17.5 per cent. What is interesting is that growth has been led by independent retailers.
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In South Australia, X Convenience is the standout. This chain has increased its locations by more than 64.7 per cent. Granted, that is off a small base, but its impressive that they have risen from the eighth position to be the fifth largest petrol convenience retailer in the state. There is similar story in Queensland, where Pacific Petroleum is the frontrunner with sites up 333 per cent. Metro has also had a run in Queensland, now with 19 locations up from six in 2017-18. The majors have had a big leap in the sunshine state as well. United, 7-Eleven and bp have all grown by more that 10 per cent. United is the stronger at 21.9 per cent. With more sites, mainly in regional areas, run by independents, it looks all good so far. The flipside to this good news story is volumes, namely their decline. The Australian petroleum statistics tell us that in the financial year 2017-18, there was 24.9 billion litres of petrol and diesel sold through retail outlets. By the end of 201920, the same statistics show the retail volumes sold were 22.9 billion litres. Petrol sales are where the steep decline is taking place, down 12.6 per cent for the period, while diesel is relatively more stable, declining only by one per cent. Overall, the average decline in volumes is eight per cent. The harsh reality is that service stations are selling less fuel on average. In 2017-18, the average sales were 3.7 million litres per site. By June 2020, that was more like 3.2 million litres for each service station. Some may say that COVID, causing volumes to be down due to movement restrictions, has exaggerated these numbers. However, volumes for petrol have been in decline since 2010-11. And while diesel is up, it is not enough to overshadow the double hit of more locations selling less petrol. So, is it boom or doom? The industry and Australia are in transition. People are making sea and tree changes that take them away from the traditional economies our industry has built. As we know, transport types are changing too with hybrids and now full electrical cars entering the market. What I see is that a new network plan is coming to the fore, one that requires new geographic positioning of sites. This will better cater for where people are living and the types of vehicles they are driving. With this boom in building service stations, our industry has, and will continue to respond to customer needs. C&I
INDUSTRY NEWS
Smooth Wholesales has seen its customers increase sales with a new range of products
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mooth Wholesales has seen significant growth within the petrol and convenience (P&C) channel, as consumers demand more retail variety. Company Director, Daniel Avrahami, told C&I that over the coming months the business will be launching some affordable and innovative new products that will deliver great margins to retailers. “We’re working with a large number of P&C retailers Australia-wide and the feedback has been that toys, games, and novelty products are selling well. Consumers aren’t necessarily entering stores to find toys and games, but if you put something that appeals to them on display, you’ll find that they’re more than happy to purchase.” Avrahami is no stranger to the P&C industry as his family has owned and operated service stations for more than 40 years. “We’ve got a good idea of what works well in sites as we trial them in our own to see how they perform. It’s easy for other sellers to make claims about their products but for us, we’ve got ‘skin the game’ and figures speak for themselves.”
The Smooth Wholesales catalogue has grown in recent months, with the strongest performing ranges including toys, games, and novelty products. In addition, personal care, mobile phone accessories, and impulse consumer electronics have had significant uptake. “We’re not reinventing the wheel here, but we are trying to reshape what a customer looks like by introducing new product ranges and categories that some people might not expect to see.” The business has recently expanded its range of smoking accessories, including the flashy looking Zengaz lighter range and world recognised lighter brand Clipper, along with vapes and shisha sticks. It has also become a distributor for the Esonic mobile phone accessories range. “For those who don’t know us, I’d say give us a call and see what we’re about. We’re more than just a typical wholesale company; we’re here to help businesses improve their store sales and source affordable, highquality stock. We’ve got big plans moving forward and we will continue working with local and overseas suppliers to provide an exciting range of products.” C&I
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INDUSTRY NEWS
AACS HOSTS SUCCESSFUL CONNECT 21 CONFERENCE
More than 350 industry delegates attend AACS Connect 21 Conference.
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he Australasian Association of Convenience Stores (AACS) held the Connect 21 conference at the Crown Palladium in Melbourne in April with more than 350 delegates in attendance. Speakers at the event included Brett Barclay from CMA launching the 2020 State of the Industry Report, Corinne Barclay from CMA discussing the impact of COVID-19 on the industry as well as a report on the value of tobacco category. The conference also included presentations from the two Peter Jowett winners – Brittany Rea from Unilever and Jordan Swire from bp, and the keynote speaker was futurist Steve Sammartino. AACS CEO, Theo Foukkare said the AACS Connect 21 Conference was all about reconnecting the convenience retail industry. “The energy throughout the event was genuinely amazing and infectious. I feel very privileged to be leading AACS and representing the industry to drive change to help shape the future of convenience retailing. 78 June/July 2021 | C&I | www.c-store.com.au
“The insights that we shared were next level. Reflecting on 2020 with the State of Industry Report around industry performance and future trends, consumer behavioural shifts through COVID-19, the role of the tobacco shopper and impact on other major categories is something that AACS is very proud of. “CMA is providing best practice industry leading insights, and AACS are very proud of the relationship we continue to harness more and more. We will be developing more AACS commissioned studies over the next 24 months, so any ideas that you might have please reach out. “AACS would also like thank the team at CCA for the amazing support of the industry and being the exclusive sponsor of the 2020 State of Industry Report. “For my first official function as CEO, I hope that you can clearly see the direction that AACS is heading, the energy that we have and what we are fighting to ensure convenience retail continues to thrive. Thanks again for your support of AACS.” C&I
More than 650 delegates gathered at the Crown Melbourne Palladium Room to enjoy the awards ceremony.
INDUSTRY NEWS
Frucor Suntory sponsored the dinner cocktail with the Boss Coffee Espresso Martini.
Theo Foukkare, CEO, AACS
Theo Foukkare with the Mars Wrigley team after winning Supplier of the Year - Confectionery.
The bp Australia retail team celebrating their Retailer of the Year Award. June/July 2021 | C&I | www.c-store.com.au 79
INDUSTRY NEWS
Andrew Spicer (Asahi Beverages), Paul Conheady (SL Distributors), Debbie Conheady (SL Distributors), Neil Williams (Asahi Beverages), Ben McDermott (Asahi Beverages)
Hayden Lamb, Rana Wilkinson, Clare Menzies, Danielle Cragen (AIT)
Brett Barclay (The Distributors Chairman), Coral Grace (Nestle Purina), Darren Park (UCB Stores), Samantha Davies (Nestle Purina)
Kristian Honeyfield, Veronica Biondi, Amy Rowles, Andrew Tsatsaronis, Ruby Salame, Jim Pucoski, Darren Park from UCB Stores
THE DISTRIBUTORS
CELEBRATES 40 YEARS
More than 200 members of the industry gathered to celebrate the 40th anniversary of The Distributors.
Luke Carbonara, Louise King, Cass van Reyk, Dylan Weisz (Ferrero)
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JB Metropolitan awarded for 30 Years of Service
Richard Kaiser, Ross McHugh, Glenn Vanderwater
INDUSTRY NEWS
Voula Dimopoulos (AWPL), Chrish Graebner (LeVel Beverages), Debbie Szkutenko (AWPL)
Award Winners: 2020 & 2021 MEMBER LENGTH OF SERVICE AWARDS: 5 YEARS:
Mackay Food Services The Distributors Cairns
10 YEARS:
Sweeties Confectionery Aygee Gippsland
Michael Goward (Juicy Isle), Tom Shaw (Shine+), Paul Mealor (Juicy Isle), Daniel Roberts (Shine+)
15 YEARS:
SL Distributors The Distributors Brisbane
20 YEARS:
KM Cupitt Inland Distributors Link Distribution Rosella Distributors
Sue Adams (Accredited Distributors), Tony McIntosh (The Distributors Brisbane), Sasha Clarke (The Smiths Snackfood Company)
The Smiths Snackfood Company accepts the Supplier Hall of Fame award
Rob Spiteri, Mark Spiteri, Bruce Spiteri, Paul Zanardo, Jeff Spiteri, Daniel Gordon, Luke Zanardo from JB Metropolitan Distributors
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ore than 200 people gathered at The Grounds of Alexandria for The Distributors annual Gala Dinner and Awards Night, which was made even more special as the company is celebrating its 40th anniversary. Brett Barclay, the newly appointed Chairman of The Distributors, welcomed guests on the evening and began by saying how honoured he was to have accepted his new role. “I am honoured to have accepted the role as Chairman of The Distributors. After having spent 13 years on the AACS Board this is another step for me, and I look forward to working with everyone over the coming years and helping to make The Distributors an even better organisation with even stronger collaboration between suppliers and retailers,” he said. George Tsapoutas, General Manager, The Distributors, said that the annual Conference and Gala Dinner had been a great success and he thanked all for attending. “Following a year like no other in the wholesale industry it was fantastic to be able to get together with the Members, Suppliers and National Customers of The Distributors at our Gala Dinner,” he said. “It has been 18 months since we had been able to meet face to face and on behalf of the Board of The Distributors and myself, I would like to thank the industry for their support for this event. “Our Conference is organised to share ideas, review the business and industry as well as a celebration of success, at our dinner events we recognise our members service to the group and individual business performance. “This year we also introduced a couple of new awards to celebrate our 40th year, we introduced a company hall of fame award (PepsiCo / The Smith’s Snack Food Company) and an individual hall of fame award (Ross McHugh) along with recognising our two suppliers of the year, The Smith’s Snack Food Company & Level Beverages, a well-deserved congratulations goes to all the winners.” C&I
30 YEARS:
Suncity Distributors JB Metropolitan Distributors
35 YEARS: Juicy Isle
40 YEARS:
Accredited Distributors Kev Baldwin Wholesale J&A Wholesalers
MEMBER OF THE YEAR UP TO $15M: Beach & Bush Distributors
MEMBER OF THE YEAR $15M AND ABOVE: JB Metropolitan
NATIONAL SUPPLIER OF THE YEAR UP TO $10M: LeVel Beverages
NATIONAL SUPPLIER OF THE YEAR $10M AND ABOVE: Smiths Snackfoods
BEST NEW PRODUCT:
Cooks Confectionery Scorched Peanut Bar
SUPPLIER (COMPANY) HALL OF FAME AWARD:
The Smith’s Snackfood Company
SUPPLIER (INDIVIDUAL) HALL OF FAME AWARD:
Ross McHugh, National Business Manager, Snackbrands Australia June/July 2021 | C&I | www.c-store.com.au 81
INDUSTRY NEWS
Warama Traditional Yidinji Dance Performance by Minjil welcomed the 250 delegates.
Snowball Award Winners: Snowball Supplier of the Year: Bega Dairy & Drinks Snowball Account Manager of the Year: Scott Taylor, Asahi Lifestyle Beverages Snowball Retailer of the Year: Troy Bennett, Bennett’s Petroleum
NEW SUNRISE RISES TO THE OCCASION N
More than 250 delegates gathered for the Iceworks Family Reunion.
ew Sunrise held its highly anticipated 12th annual Iceworks conference in April at the majestic Sheraton Grand Mirage in Port Douglas, North Queensland. The tropical rainforest setting provided an ideal location for the ‘Iceworks Family Reunion’ of more than 250 delegates, who, after a tumultuous year, were delighted to come together again. New Sunrise delivered to the highest standard for an unforgettable (and long-awaited) week away, where they were able to learn, inspire, network, and connect, while celebrating the achievements of the year. Despite its challenges, 2020 was a highly successful year for New Sunrise as a retail group, with double-digit increase in overall store numbers, the launch of its first-ever national
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TV advertising campaign and the introduction of the new member mascot, Sunny the Kookaburra. The success was capped off with industry suppliers rating New Sunrise as the number one national independent buying group in Australia. New Sunrise Managing Director, Steve Cardinale, opened the event with a heartfelt welcome to all delegates, recognising and thanking them for their agility and resilience to overcome the challenges and adversities in 2020. Cardinale recognised the inspiring innovation of retail members, but also the support and collaboration with supplier partners, and the role of his team in showing leadership throughout the year. The theme of the conference was ‘CREATE THE DIFFERENCE, ENJOY THE EXPERIENCE’ – referencing marketplace shifts from transactional to experiential retail environments.
INDUSTRY NEWS
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1. J asmine Bennett and Troy Page accept the Snowball Retailer of the Year Award for Bennett's Petroleum, pictured with New Sunrise's Steve Cardinale and Joseph Alessi 2. T heo Foukkare, CEO, AACS 3. S cott Gibbons, Rolsyn McMillan, Steve Cardinale, Scott Taylor, Joe DiPetro, Jason Shackleton, Felicity Needham at the pool party 4. S cott Gibbons 5. D elegates truly enjoyed local at the Australian themed pub night
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6. D elegates gathered under the stars in a tropical paradise to celebrate at the Snowball Gala and Awards dinner
Delegates heard from industry and association leaders in Mark McKenzie CEO of ACAPMA, newly appointed AACS CEO Theo Foukkare, and Director of Convenience Measures Australia, Brett Barclay. Presentations detailed results in 2020, and future trends, forecasts and landscapes in fuel and convenience retailing. Throughout the day, delegates heard from ignite topic speakers – short, pulsating and inspiring talks – on key initiatives New Sunrise are delivering and future growth areas. The session was hosted by New Sunrise National Merchandise Manager Joe Alessi, and included speakers from New Sunrise and supporting supplier partners discussing key deliverables. Delegates were also treated to a firsthand view of exceptional New Sunrise retailers across the country, with a series of virtual retailer videos bringing to life the plans being delivered by the group. These included Jill & Jack’s in Wilston, Caltex Heatherbrae, The Station Grocer, and Liberty Margate. Delegates were delighted to enjoy unique far north Queensland experiences, such as snorkeling the Great Barrier Reef, a visit to the world-renowned Nautilus restaurant, visiting a local gin maker, or getting up close and personal with the local animals at the areas top attraction, the Wildlife Habitat. The event has been highly praised by the industry as a demonstration of what can be achieved with resilience, adaptability and good planning – a key theme demonstrated by the group throughout the year. Congratulations to New Sunrise and all delegates for the achievements of 2020 and the delivery of this high quality industry event. C&I
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INDUSTRY NEWS
SPAR SUPPLIER AWARDS REMINDS MEMBERS THAT THEY ARE ‘BETTER TOGETHER’ A record number of guests gathered on the Gold Coast for the SPAR Supplier Awards last month.
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PAR Australia celebrated its night of nights on 7 May, hosting the SPAR Supplier Awards, its first in-person event since the initial COVID lockdowns. Held at the stunning new event space, Glasshouse at The Island on the Gold Coast, the event was attended by a record number of guests, with old and new faces all relishing being together once again. Hosted by popular NovaFM radio host, David ‘Luttsy’ Lutteral, SPAR’s success was on full display as they celebrated being ‘Better Together’.
Asahi Lifestyle Beverages was the big winner on the night, winning the major award of SPAR Supplier of the Year as well as Convenience Supplier of the Year. Managing Director, Lou Jardin, congratulated everyone on their last 12 months and touched upon exciting things happening at SPAR in the year ahead. “We recognise the efforts and achievements of our suppliers through our toughest year, coming out better and stronger. Helping our retailers through bushfires, floods, panic-buying etc, emphasised our ‘Better Together’ motto,” he said. C&I
1. L ou Jardin, Managing Director, SPAR 2. D ion Hronakis of Asahi Lifestyle Beverages (centre) accepts the Convenience Supplier of the Year award from SPAR’s National Merchandise Manager, Colin Dwyer (left) and Managing Director, Lou Jardin (right)
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INDUSTRY NEWS
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Andrew Baskerville and Dion Hronakis (centre L-R) of Asahi Lifestyle Beverages accept the SPAR Supplier of the Year award from SPAR’s National Merchandise Manager, Colin Dwyer (left) and Managing Director, Lou Jardin (right)
Award Winners 4
SPAR BRAND SUPPLIER OF THE YEAR: Winner: Tibaldi
CONVENIENCE SUPPLIER OF THE YEAR: Winner: Asahi Lifestyle Beverages
DIRECT SUPPLIER OF THE YEAR: Winner: Fruitlink
GROCERY SUPPLIER OF THE YEAR: Winner: Kraft Heinz
NON-FOODS SUPPLIER OF THE YEAR: Winner: Reckitt Hygiene Home Care
PERISHABLE SUPPLIER OF THE YEAR:
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Winner: Primo
PROMOTIONAL SUPPORT OF THE YEAR: Winner: The Smith’s Snackfood Company
3. Collin Shaw of Kraft Heinz (centre) accepts the Grocery Supplier of the Year award from SPAR’s National Merchandise Manager, Colin Dwyer (left) and Managing Director, Lou Jardin (right) 4. S cott White of Tibaldi (centre) accepts the Brand Supplier of the Year award from SPAR’s National Merchandise Manager, Colin Dwyer (left) and Managing Director, Lou Jardin (right) 5. Dominic Miano of Fruitlink (centre) accepts the Direct Supplier of the Year award from SPAR’s National Merchandise Manager, Colin Dwyer (left) and Managing Director, Lou Jardin (right) 6. Chris Campbell of Primo (centre) accepts the Perishable Supplier of the Year award from SPAR’s National Merchandise Manager, Colin Dwyer (left) and Managing Director, Lou Jardin (right) 7. R odney Lacco of The Smith’s Snackfood Company (centre) accepts the Promotional Support of the Year award from SPAR’s National Merchandise Manager, Colin Dwyer (left) and Managing Director, Lou Jardin (right)
SPAR SUPPLIER OF THE YEAR: Winner: Asahi Lifestyle Beverages
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Shavindra Silva of Reckitt Hygiene Home Care (centre) accepts the Non-Foods Supplier of the Year award from SPAR’s National Merchandise Manager, Colin Dwyer (left) and Managing Director, Lou Jardin (right) June/July 2021 | C&I | www.c-store.com.au 85
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