C&I Retailing Magazine June-July 2023

Welcome to the latest issue of Convenience & Impulse Retailing magazine, your trusted source of insights and trends in the fuel and convenience retail sector.

As always, the June/July edition is one of the most hotly anticipated reads of the year, as we invite 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 changing consumer demands, and how they view the immediate future for convenience.

Overwhelmingly, the feedback is that the future looks bright, which is also outlined in our five-page snapshot of the 2022 AACS State of the Industry Report, compiled by CMA, and graciously shared by Theo Foukkare, CEO, AACS. Moreover, we explore the current state of vaping regulation in Australia and the everthriving Hot Coffee category.

As the regulatory landscape surrounding vaping continues to evolve, we investigate the current state of vaping regulation in Australia. With growing concerns about the impact of vaping on public health, authorities have been taking measures to ensure responsible and safe consumption, recently announcing its most significant smoking reforms in a decade by imposing a ban on the importation of all non-prescription vaping products, including those that do not contain nicotine. Join us as we examine the latest legislative developments, industry responses, and the implications for convenience retailers and the thriving black market.

Lastly, we turn our attention to the Hot Coffee category, an ever-popular staple of convenience retailing. Despite the rise of specialty coffee shops, convenience stores have managed to carve out a significant share of the market by offering convenience, affordability, and quality. We delve into the strategies employed by successful retailers to maximise the potential of this category, exploring the latest trends, customer preferences, and innovative approaches. Discover how you can transform your hot coffee offering into a customer magnet that drives footfall and enhances profitability.

As the convenience and impulse retailing sector continues to evolve at a rapid pace, staying ahead of the curve is essential. With the Industry Leaders Forum, the State of the Industry Report, and our insightful category features, Convenience & Impulse Retailing magazine is your compass in this dynamic landscape. We hope that the knowledge and inspiration found within these pages will fuel your drive for success and empower you to make informed decisions that shape the future of your business.

Cheers, Deb

Jackson

Safa de Valois Alyssa Coundouris James Wells

Thomas Oakley-Newell

TONIK PRO – The best protein RTDs in

Australia

TONIK is the solution for ‘on-thego’ Aussies who are determined to live a healthier and happier life.

The typical consumer of TONIK RTDs sits in the ‘Active and Lifestyle’ category, which makes up around 49 per cent women, and 51 per cent men. Consumer ages range from 18 right through to 60+ for both men and women, a total of 75 per cent of lifestyle/active consumers have bought and consumed RTDs.

The Halo in-house Product Development Team created their own Proprietary Protein Blend, then developed the six delicious flavours we see today – Chocolate, Choc Honeycomb, Banana, Strawberry, Coffee, and Vanilla.

They have natural flavours and colours, are high in protein, natural fibre, low carbs, low sugar, low fat and are gluten free and GMO free.

Proper Crisps’ BIG new range

Proper Crisps has launched a new range of crisps called Big Cut, which includes four flavours; Cracked Pepper and Sea Salt, Dill Pickle and Apple Cider Vinegar, Marlborough Sea Salt, and Smoked Paprika.

Made using golden unpeeled potatoes grown in Yarra Valley, Big Cut crisps are cooked for twice as long as a regular chip.

Duncan Kerr, Commercial Manager Australasia at Proper Crisps, said: “Our commitment to using locally sourced ingredients and our focus on delivering a superior snacking experience has resonated with Australian consumers.”

Proper Crisps’ Big Cut range is stocked nationwide including at IGA, Ritchies, Romeos, Woolworths Metro, and Coles Locals, and retails for $6.50 for a 140g bag.

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IPL adds flowers to its range

IPL Retail Group has recently introduced a new category for gifting – flowers.

Flowers have long been associated with expressing emotions, from love and affection to sympathy and gratitude. IPL Retail Group’s flowers and gifting selection features a wide variety of blooms, from traditional roses to the cutest teddy bears.

The new category is a testament to IPL Retail Group’s commitment to meeting the diverse gifting needs of their customers and providing them with an exceptional shopping experience. By offering an extensive range of high-quality flowers and gifting options, IPL Retail Group aims to help its customers create meaningful and lasting connections with their loved ones.

For more information, please visit iplretail.com.au.

A Toatl Category First

With oat milks growing almost 10 times faster than the total plantbased milk category*, the launch of Toatl flavoured oat milk is set to shake up the flavoured milk shelves across the country.

Smooth, creamy and 100 per cent delicious, Toatl comes in three flavours – Chocolate, Caramel, and Strawberry. Made with Aussie oats, high in calcium, and packed with essential vitamins A, B2, B12 and D, Toatl is the plant-based flavour hit your customers have been looking for.

For more information, contact The Distributors on 1800 989 022.

*Source: Nielsen AU GR Scan, Total AU Grocery, 52 weeks to 01/03/2022. Nature, Sanitarium Dairy Free Milks U&A, Sept 2021.

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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.

The mention of a product or service, person or company in this publication does not indicate the

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Deputy Editor: Thomas Oakley-Newell

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Prepress: Tony Willson

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KICKING GOALS

From a small coastal town in Victoria, to becoming the Head of Category and Marketing at APCO, Kellie Struth has a passion for the P&C industry while balancing her love of sports, family, travel, and her toy cavoodle. This is her story…

Igrew up in the small coastal town of Warrnambool, Victoria, with my Mum, Dad and two younger sisters –Kim and Jess. Growing up in a smaller town afforded me quite a bit of freedom and my childhood weekends were filled with sports and friends.

I was fortunate enough to try my hand at many sports, from tennis and volleyball to hockey and swimming. I even became one of the first female footy umpires.

My first job was as a pharmacy dispensary assistant, however, it didn’t end up being such a great fit for me. The requirement to wear a white coat, court shoes, and bright red lipstick definitely wasn’t my thing. I quickly got out of there and landed a job at Target when I was 15 and even managed to organise a transfer to Melbourne so I could continue working with them while pursuing my university studies.

In my 20s, as many young Australians do, I went on a Contiki trip that broadened my horizons beyond the confines of my small town. Over the course of my career, I have been lucky

enough to have some amazing jobs that allowed me to travel extensively, particularly in my role as a buyer. I travelled to countries such as China, Hong Kong, India, Vietnam, Thailand, and Indonesia to develop and source new products.

My work also took me to the US and UK on retail study trips, where I visited fantastic stores in Los Angeles, London, and Paris. On many occasions I was able to tack on personal time in a few of those countries to catch up with old friends and have some wonderful adventures, particularly in the UK.

Just last year I was fortunate to attend the Australian Association of Convenience Stores (AACS) International Study Tour, where I was able to see a few places I’d never been before. I’m very much looking forward to this year’s trip and ticking a few more places off my bucket list.

Over my career, I’ve worked my way from a junior to senior category manager, working across many different categories over the years and have been involved in everything from buying and planning to supply chain and replenishment.

“ I am the Head of Category and Marketing at APCO, a position

I consider a privilege because I get to work with some of the most genuine, caring, and considerate people.”

– Kellie Struth

Kellie Struth with the APCO leadership team

After having kids, I transitioned into an analyst role that gave me a broader understanding of business by working across various departments and helping with business process transformation. Working as an analyst taught me how to interpret data and use it to effect change.

Currently, I am the Head of Category and Marketing at APCO, a position I consider a privilege because I get to work with some of the most genuine, caring, and considerate people. As a team, we have experienced many highs over the last couple of years, particularly our Wangaratta store, which picked up NACS Asia Pacific Convenience Retailer of the Year, AACS Store of the Year, and AACS Independent Store of the Year. It was pretty special.

Another highlight was joining the APCO Foundation Board, which has accomplished incredible work over the last decade. I am proud to be part of their efforts. In the next five years, I hope to still be at APCO, continuing to make a difference and gaining a deeper understanding of the fuel aspect of our business.

If I had to give any advice to retailers, I would say not to get complacent. The pace is fast in our industry, and the ability to be agile and evolve is more important than ever. For suppliers, it is essential to make it your business to understand the retailer’s business and show that you are invested. Spend time in their stores, listen, understand what is important to them, and then make it as simple and easy as you can for them to work with you.

Away from work, I have my partner Prouty, my three kids –Charlie, Tobie, and Ruby – and our toy cavoodle Milo. Our life is pretty hectic, so in any spare time, I love nothing more than a walk on the beach with Milo, getting to the gym for a pump class, or playing tennis with friends. C&I

“ I was fortunate enough to try my hand at many sports, from tennis and volleyball to hockey and swimming. I even became one of the first female footy umpires.”

– Kellie Struth

Kellie with her mum and two sisters, Kim and Jess

Kellie and her three lovely children Kellie and Milo

Kellie pictured with her family

Australia’s largest and most important trade event for Convenience retailers. Unique in this industry, the expo is open to retailers and suppliers from all banners and brands, and ensures a valuable two days of business building and development.

C&I Expo provides unparalleled networking opportunities while giving visitors the chance to sample new products to bring more customers through the door. Learn from industry experts with years of experience growing their businesses and meet directly with suppliers who are actively addressing problem areas for store owners.

Exhibitors and retailers are encouraged to attend the C&I Industry Symposium, held on both mornings prior to doors opening, and the complimentary Networking Drinks on Thursday afternoon.

Why Exhibit

C&I Expo is the premier event for the Australian Convenience channel, open to all banners and brands

C&I Expo’s reputation and longevity attracts a high quality, decision-maker audience

Inquisitive buyers are looking for new products and innovation

Access to independent operators who may not be receiving adequate representation

Access to the major corporates, independent chains and multi-site operators

THE Calendar

“This show has been quality over quantity and having really good in-depth conversations with great retailers. I feel like I have done a dozen mini-range reviews here on the floor of the exhibition - it saves everyone’s time. It is a great opportunity to get a lot of work done and see a lot of people all at once. The buyers are inquisitive and looking for new products and inspiration.” Calm & Stormy

Thursday 19 October 2023

9:00am – 11:00am C&I Industry Symposium

11.00am – 5.00pm C&I Expo Day 1

5.00pm – 7.00pm Networking Drinks

Friday 20 October 2023

10.00am – 12.00pm C&I Industry Symposium

12.00pm – 4.00pm C&I Expo Day 2

Exclusive Expo & Symposium Sponsor

C&I INDUSTRY Symposium

Listen and learn from the industry’s best at the C&I Industry Symposium. Delivered in two morning sessions before doors open to the expo, the Symposium features keynote addresses from the brightest minds leading the convenience industry today. Tickets can be purchased at the time of registration.

98.5% OF ATTENDEES WOULD RECOMMEND THE C&I INDUSTRY SYMPOSIUM TO OTHERS

FOR Retailers

A national event compressed into two days, showcasing best industry practice and cutting-edge innovation

A diverse range of essential suppliers in one place

Taste, touch and smell the latest in convenience products and category trends

Premium industry education at the Industry Symposium

Network with major retailers and suppliers

Convenient hours, weekday timing at a central location, close to public transport and accommodation

register now

“The 2022 expo has been the most successful I have ever been to. If you want to kick-start your business, this is the place you want to come.” Adverto & Pump TV Global

Networking DRINKS

Networking is one of the key reasons visitors attend the expo and the complimentary cocktail function is a highlight of the expo program. An exceptional opportunity to make new connections and also unwind, this year's drinks are proudly sponsored by Coco-Cola Europacific Partners.

To register for free to visit C&I Expo 2023, to buy tickets for the Symposium, or to enquire about exhibiting, visit CANDIEXPO.COM.AU

Networking Drinks Sponsor

IN THE MOOD

In a small, historic village in Tasmania, Mood Food Kempton has achieved big success with its unique homestead style site and fresh food offering, writes

Mood Food Kempton, owned by Bennett’s Petroleum, already had a strong belief in the quality of its offerings. However, being named the Australian Association of Convenience Stores’ (AACS) 2023 Overall Store of the Year, as well as 2023 Independent Store of the Year, was a wonderful acknowledgement of its success.

“It was a confirmation that our company’s direction was the correct one, which was to build a spacious integrated structure that blends into the physical environment, while cooking and preparing quality fresh food for the travelling market,” explained Troy Bennett, CEO of Bennett’s Petroleum Supplies.

For Bennett, winning the award gave him confidence that he was making more correct decisions than wrong decisions daily.

“I’m absolutely thrilled and couldn’t be happier for all concerned employees, suppliers, and Tasmanians.”

The open-planned colonial-style homestead service station effortlessly integrates the local environment into its design, with a dog run, football field, basketball and netball rings, all incorporated into Mood Food Kempton’s footprint.

“The site offers a sense of freedom, peace, and vacation for the travelling market, while still offering a local café for the community to gather. There are many comfortable seats to talk, share a bite to eat or drink, and relax internally and externally.”

Thomas Oakley-Newell.

Located in the small colonial town of Kempton, which is registered as a classified historic town, about 40 minutes north of Hobart, it is a perfect place for travellers looking to explore a beautiful place littered with architectural delights.

While those travellers explore, they need somewhere to refresh, wind-down, and maybe do a bit of exercise, and with Mood Food Kempton offering 20 parks in front of the store and 50 behind it, there is ample space for customers who want to enjoy what Mood Food and Kempton have to offer.

“Customer needs and wants are always shifting. They want the freshest, cheapest product as quickly as possible, with the least resistance as possible.”

Bennett explained that while healthy options are popular, particularly from females, the bottom line is that when people are travelling, they generally want comfort food, which means Mood Food attempts to provide for as many tastes and cravings as possible.

Food for the mood

Being in the heartland of Tasmania, a state that has some of the best and freshest produce in the country, it’s no surprise that Mood Food Kempton takes advantage of that unique positioning.

A wide range of both hot and cold foods are on offer, from fried foods to salads, to roasts and doughnuts, to hamburgers and fish, Mood Food caters to all tastes.

Mood Food Kempton's architecture incorporates the historic feel of the town

“All of our roasts are cooked on-site, and therefore all of our sandwiches and rolls have fresh meats inside. Our fish is all battered by hand and our hamburgers are made by hand using fresh mince. The chickens are all free-range from Tasmania and our coffee is also roasted here in Tasmania, which is paired perfectly with our doughnuts, made freshly each day.”

Featuring three point of sale registers, booth seating at the front of the store to catch the morning light, and gas-flamed heating inside, there is a place to sit, relax and enjoy your meal or beverage no matter the weather.

Lending itself to the colonial style of the town, Mood Food is somewhat of a throwback to a time when people were more connected to each other than their mobile phones, something that Bennett is well aware of.

“People need face-to-face connections. As the world becomes more automated, people will seek out these connections from as many sources as possible. Therefore, convenience stores will play a leading role in not only providing essential services and products, but also providing the communication and care that humans need.”

New Sunrise

As part of the New Sunrise network, Mood Food Kempton benefits from the services and support it provides. But Steve Cardinale, Managing Director of New Sunrise, also recognises the tireless work that its members put in.

“They are often first to open and last to close, particularly in times of distress in their communities. They continue to inspire, innovate, and support their communities every day. They have demonstrated to be true leaders of the industry, and looking back on a challenging retail landscape, particularly over the last 24 months, they have been agile, nimble, and led with strong food and coffee offers, which has set them in good stead for future growth.”

Bennett also recognised the importance of having New Sunrise in being able to help Mood Food Kempton improve its standard and offer over the past 15 years, with the team working hard to ensure Mood Food offers the best quality price as well as best quality service.

“New Sunrise has been really important for us because we are seen as a regional area in Tasmania, and therefore we aren’t necessarily able to negotiate with suppliers as well as some companies in major cities can. But through New Sunrise, being a national program, we get the benefit of what big city convenience stores get by piggybacking off the back of great negotiations by the New Sunrise team.” C&I

“

Customer needs and wants are always shifting. They want the freshest, cheapest product as quickly as possible, with the least resistance as possible.”

– Troy Bennett, CEO, Bennett’s Petroleum Services

The high ceilings offer a sense of freedom and space

Catch the morning light at the booth seating

L-R: Kosta Soldatos, Jasmin Bennett, Troy Bennett, and Steve Cardinale

CONVENIENCE RETAIL SALES HIT $10.1 BILLION IN VALUE

Theo Foukkare, CEO, Australian Association of Convenience Stores, shares insights from the 2022 AACS State of the Industry Report, prepared by CMA Consulting.

Convenience in-store merchandise sales growth $10.1b

Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements

Ongoing Challenges

Staffing

Our ‘3 Pillars’ remain extremely relevant for our industry and they are: –

Continual battles to get staff and then keep them, with Staff turnover at record numbers and less operational hours remaining in the channel

Supply Chain

Ongoing Supply Issues with the Convenience channel hit hard by Supplier out of stocks, causing range rationalisation in some categories

Convenience in-store

WPerformance

e started 2022 with significant challenges as Covid cases skyrocketed and ran through the community as borders opened and we were able to move freely again. Then came the floods, which placed significant pressure on many parts of the country and affected confidence, while supply chain disruptions and labour shortages continued to plague most industries.

Dollar Sales $10.095b 7.4% +2.0% in 2021

for work, holidays and getting back to normal routines, with the full 2022 calendar year delivering +7.4 per cent growth on 2021, delivering incremental retail sales of $693m.

For the first time, the industry broke through the $10bn retail shop sales, which was a big milestone.

$ Value Increase $693m +$182m in 2021

Immunisation rates climbed quickly, and we were all finally able to start living in the new normal, albeit with big changes through the adoption of work from home policies now a part of how we work.

Our ‘3 Pillars’ remain extremely relevant for our industry and they are: – Advocacy –

Food and Beverage ended the year with growth of +16.7 per cent delivering an extra $769m in sales, while Non-Food declined -1.6 per cent or -$76m led by Tobacco, which dropped three per cent or -$107.4m.

Against this backdrop of uncertainty, rising business operating costs, and changing consumer behaviours, the channel had a tough first half of the year declining by -0.9 per cent. This coincided with the beginning of the end of free money, as interest rates started to increase to tackle rising inflation.

Dollar Sales (Excluding Tobacco) $6.597 13.8% +5.8% in 2021

Foodservice and Beverages continue to shine as retailers invest heavily in these offers, together delivering incremental sales of +$570m over the 12 months.

Convenience in-store merchandise sales growth

The second half of the year saw convenience retail sales rebound as consumers increased their mobility

Average Transaction Value $10.74

7.4%

Foodservice has now achieved double-digit growth for six years running, now contributing almost $1.2bn to be the fastest growing category. We continue to build momentum and provide everyday Australians with great quality food to keep them recharged and rehydrated.

Snackfoods

Store growth continued, adding 102 stores for the year to finish at 7,180 stores, up +1.4 per cent. This was mainly driven by the independent retailers, with new to industry stores being rolled out at record numbers.

After a concerning start to 2022, and ongoing speed humps throughout the year while operating in a very challenging environment, the industry has delivered a strong retail sales performance.

Major category shifts: The winners

After breaking through $2bn for the first time in 2021, the Beverage category has once again had an above average performance, hitting $2.5bn in sales value. All subcategories apart from Tea Drinks experienced growth, while six of the nine delivered double-digit growth, led by Protein Drinks at +29.8 per cent and Energy Drinks +26.3 per cent. Energy Drinks continued to represent a higher share of the category value and now sits at 33 per cent.

Convenience in-store merchandise sales growth

The snacking category within convenience, which includes confectionery, snackfoods and ice cream, collectively delivered $1bn in sales. Within this, snackfoods was the fastest growing category growing at +29 per cent.

$10.1b

Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements

Ongoing Challenges

Staffing

Energy Drinks had another outstanding year of growth with +26.3 per cent delivering an extra +$184m in value for a total value of $840m. Over the last two years, Energy Drinks has jumped +$261m in value or 45 per cent of total Packaged Beverage value growth.

Our ‘3 Pillars’ remain extremely relevant for our industry and they are:

The Foodservice category was the second fastest growing category achieving +21.4 per cent growth, its sixth consecutive year of double-digit growth. Foodservice now contributes almost $1.2bn in sales. The growth over the past two years alone has equalled $319m in value or +36 per cent. Every subcategory had strong growth with both Food Savouries +24.1 per cent and Take Home Food +21.9 per cent, driving the overall category value. Meanwhile, Prepared Food had the largest percentage increase of +25.8 per cent.

Continual battles to get staff and then keep them, with Staff turnover at record numbers and less operational hours remaining in the channel

Supply Chain

Dollar Sales $10.095b 7.4% +2.0% in 2021 $ Value Increase $693m +$182m in 2021

Other categories that delivered strong growth in 2022 included Hot Dispensed Beverages up more than +17 per cent. Grocery delivered another strong performance growing by +11.7 per cent on the back of two years of growth, demonstrating that some of the traction achieved through 2020 has translated into a regular purchase. Confectionery also grew at +9.9 per cent and added $55m in incremental sales.

Major category shifts: The losers

Ongoing Supply Issues with the Convenience channel hit hard by Supplier out of stocks, causing range rationalisation in some categories

Global Oil Price

Continually higher Fuel prices with over $2 per litre for the first time in Australia, causing Fuel Theft to jump by 85% in 2022

VIVA Energy Purchases the Coles Express Retail business from Coles for $300m which was approved in Janaury 2023.

7 Eleven Announces new concept Johnny’s Deli. Expansion of 15 stores in North Queensland for first time. Extends fuel partnership with Mobil until 2033 Ampol Announces it is buying Z Energy in New Zealand. Launches AMPcharge EV charging rollout.

EG On 9 December 2022, RACV announced it was partnering with EG Australia to offer RACV members a discount of 5.0 cpl.

The single biggest negative in 2022 was in the Tobacco category, declining by -3.7 per cent or $107m. The sale of illicit tobacco is now claimed to account →

Dollar Sales (Excluding Tobacco) $6.597 13.8% +5.8% in 2021

Convenience in-store merchandise sales growth

7.4%

What Makes Up The Retail Price Of Petrol

BP Announces deal with Tritium to supply EV Fast Chargers at sites. Announces Global partnership with Uber to provide delivery services.

OTR Expand outside of South Australia with stores in Regional Victoria.

Average Transaction Value $10.74 0.2% Average Merchandise Transactions per day 355* 2.9% Margin 35.2% 1.3pp 33.9% in

Frucor Suntory Announces $400m build of Beverage processing, packaging, warehousing & distribution facility in Queensland.

OTR Purchases 17 Puma branded service stations to enter the Northern Territory. Granted permission to sell alcohol through the OTR app.

Snackfoods

29.0%

Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements

Litres per transaction 1.1%

“ After a concerning start to 2022, and ongoing speed humps throughout the year while operating in a very challenging environment, the industry has delivered a strong retail sales performance.

”

– Theo Foukkare

$10.74 0.2% Average Merchandise Transactions per day 355* 2.9% Margin 35.2% 1.3pp 33.9% in

Our ‘3 Pillars’ remain

for up to one in five packets sold in Australia, which continues to add more pressure to legitimate retailers. Further adding to pressure on this category is the illegal sale of nicotine containing vapes by illegitimate retailers as consumers are looking for a transition out of smoking.

and they are:

Other categories that suffered predominantly, driven by changes in consumer behaviour, were Communications, Printed Materials and Travel tickets.

What of 2022?

With Covid running rampant throughout the community in January as Australians started moving around freely again and the last of the borders were opened, high vaccination rates and overall increased confidence meant that the lockdowns that restricted so many of us were finally over and hopefully never to be seen again. The sales increases in high performing categories continued for the first half of the year and in a lot of cases, the channel was able to deliver even more growth in categories like Grocery, Foodservice, and Coffee.

Labour shortages, supply chain challenges, and the lack of international students and travellers added new complexity to an already difficult operating environment. Covid cases were now higher than ever during the height of the pandemic, however we had finally accepted that we could live with it and get on with life.

Work from home was adopted into most organisations as standard policy, which led to significant changes in consumer behaviour and new trends that we had to learn to adapt to.

Industry

With consumer mobility returning to more normal levels both on the road and in the air, so did retail fuel volumes. The hangover of supply chain constraints was exacerbated further through the tight labour market and difficulty in finding staff right across the board.

The AdBlue shortage early in the year sent shockwaves through the transportation and fuel distribution networks given the dependence of industry on diesel fuel. This resulted in the Government stepping up and starting the process for additional local manufacturing capability to future proof future supply constraints of AdBlue.

The war in Ukraine introduced a completely new perspective into an already difficult operating environment, which resulted in retail fuel prices skyrocketing and hurting everyday Australians in their hip pocket. This volatility settled down in the second half of the year, however retail fuel prices on average are still sitting well above 2021 levels.

Future fuels

The question of when this will start to impact the channel is still relevant today. In 2022, 3.1 per cent or 33,410 of all passenger cars sold in Australia were EVs (up from 2.1 per cent in 2021), so at this stage the impact is still minimal.

Globally the number was 14 per cent led by China and Europe, although the USA picked up pace as the government has introduced new standards and is investing heavily in infrastructure development, along with mandates for the stopping the sale of traditional internal combustion engine (ICE) vehicles.

extremely relevant for our industry

“ AACS continues to strongly advocate for a regulated consumer model of nicotine vaping products, with strict product, ingredient, packaging, and safety standards to provide consenting adults with a choice to access regulated products.”

The reality is EVs are coming, however, it is important to note that this will form only one part of the future energy types available to consumers, commercial transport, and heavy industry. Biofuels, zero emission fuel options and hydrogen are also seeing significant investment both globally and in Australia.

In 2022, Ampol launched its consumer electricity brand AmpCharge, along with bp launching its global charging brand BP Pulse in Australia.

The Federal and State Governments in Australia have started to divert investment into charging equipment through their ARENA program as well as various Federal and State grants to entice consumer uptake, however infrastructure investment to support fast charging to keep Australians moving is still significantly lacking.

Convenience and fuel retailers need to start planning on their network strategy to transition to future energy, however with demand being so concentrated in major capital cities, the focus must continue on developing their retail offers in foodservice, grocery, beverages, loyalty and in-store experiences.

Tobacco and e-cigarettes

Tobacco remains an important category to the Convenience Channel. The decline in sales has been mostly affected in 2022 through the explosion in consumers switching to illegal unregulated nicotine vaping products, as well as the continual sale of illicit tobacco by illegitimate operators.

Illicit tobacco now accounts for one in every five packets sold in Australia. This, combined with the vaping black market selling unregulated products, will continue to impact the category until the Federal Government takes a common sense approach to strict product regulation, the introduction of a licensed retail framework and harmonised Federal and State legislation that gives police the powers to clamp down on all illegal operators.

Fast facts:

• Total retail shop sales broke through $10 billion

• Store numbers grew +1.4 per cent, adding 102 new stores to finish at 7,180

• Overall margin improved by +1.3 per cent to 35.2 per cent. This was driven by the improvement in sales performance, mix of category sales & promotional activity.

• The split of business between Food and Beverage and Non-Food has now switched to see Food and Beverage being the largest segment delivering 53 per cent of total sales, having grown by +16.7 per cent and delivering an additional +$769 million in sales.

Research commissioned by AACS through Roy Morgan confirms that there are now more than 1.3 million adults regularly vaping. Unfortunately, the Federal Governments prescription only model is only being used by 12 per cent of adults (Source CMA Consulting).

AACS continues to strongly advocate for a regulated consumer model of nicotine vaping products, with strict product, ingredient, packaging, and safety standards to provide consenting adults with a choice to access regulated products. Retailers have successfully supported the government over decades to eliminate tobacco access to children. A responsible retailing framework, backed by a strong licensing model for retailers and wholesalers, will again support the government in restricting access of nicotine vapes to our youth.

AACS continues to be at the forefront of Federal and State Government engagement on the illicit tobacco market and the impact to the Convenience Channel.

We have been leading the need for greater enforcement from authorities at state level and introducing more streamlined processes and regulatory frameworks to enable taskforces and boots on the ground to shut down this illegal activity. Working in collaboration with the Department of Home Affairs, Treasury, State Health Departments and State Enforcement Authorities has seen significant progress made in key states and traction made at federal level for the introduction of a National Illicit Trade Strategy to be implemented. →

Sales Performance

22.36b litres

4% +860m 2021 +4% +860m

GIRDS*

12.8cpl

Retail Value $33.0b

Source: ACCC Report on Australian Petroleum market – December 2022

*GIRDS are the difference between average retail petrol prices and the indicative wholesale prices before associated costs

What

What Makes Up The Retail Price Of Petrol

Breakdown of the average petrol price in the December quarter across the five largest cities

Packaged alcohol

Convenience retail’s opportunity to enter the competitive landscape of packaged alcohol remains one of the largest opportunities on the horizon, estimated to be $1bn in retail sales per annum. AACS has a clearly defined nationally agreed responsible approach to packaged alcohol that is actively being discussed in key states. Strong advocacy is progressing with all state government stakeholders, liquor regulators, small business ministers and potential opponents.

Traditional retailers of packaged alcohol have capitalised on the emergence of online delivery platforms and direct to boot or home services. Restaurants and cafes have also captured part of this market in some states as Covid specific exemptions for takeaway services have now been adopted into legislation in various states.

AACS believes that convenience retailers should be permitted to compete on an even playing field with other retailers in a responsible retailing framework, providing convenience of location to adult consumers in a competitive packaged alcohol environment.

What will 2023 bring?

In 2023, while labour challenges remain and the hangover in some areas of supply chain shortages continue to plague retailers, business confidence is strong and we will see continued investment in new stores and offer development, product innovation and loyalty initiatives. Investment into new technologies to support efficiencies and free up staff time to focus on the customer experience will continue to be a major focus for all businesses.

Foodservice will likely see its stellar six years of growth continue, as well as continued investment into better quality freshly prepared food to keep customers recharged not only on the go but in their homes or workplaces.

The new Industrial Relations Laws passed by the new Federal Government that came into effect in June 2023 will add another level of complexity to the already challenging IR environment.

We expect that consumer migration away from traditional tobacco products into illicit nicotine vaping will continue to grow, which will again place enormous pressure on our largest category and impact customer frequency and the loss of associated purchases.

As a channel, convenience and mobility retailers will continue to invest in being business fit for the slow but eventual transition to future energy needs. This focus will deliver better retailing experiences for consumers both in-store and online.

Shop formats, product ranges, healthier food options, new services, great coffee and exceptional customer service will continue to be a major focus aimed at raising the profile of the channel to engage shoppers on a more frequent basis, and an understanding of localised trends will drive increased engagement with local communities.

Convenience in-store merchandise sales growth $10.1b

AACS will continue to support the industry across all our strategic priorities to ensure we protect the convenience retailers that continue to play a more integral role in the lives of every Australians – keeping them refuelled, recharged and well fed and hydrated. ■

Source: AACS Retailer Submissions, IRI Market Edge, ASX Announcements Ongoing

Staffing

Continual battles to get staff and then keep them, with Staff turnover at record numbers and less operational hours remaining in the channel Supply Chain

Ongoing Supply Issues with the Convenience channel hit hard by Supplier out of stocks, causing range rationalisation in some categories

Global Oil Price

Continually higher Fuel prices with over $2 per litre for the first time in Australia, causing Fuel Theft to jump by 85% in 2022

“ AACS will continue to support the industry across all our strategic priorities to ensure we protect the convenience retailers that continue to play a more integral role in the lives of every Australians.”

– Theo Foukkare

with Sheena Polese

DOWN UNDER STUDY TOUR

Keynote Presentation by Sheena

Leadership & Development Coach

We are pleased to announce our first Women in Convenience event for 2023

We will be joined by guest Speaker Sheena Polese, an experienced Leadership & Development Coach.

Sheena will share her knowledge & experience with the group on how to get the best out of everyone, followed by a question & answer session.

Wednesday 19th July 3-5.30pm | Sydney

Time & Venue Confirmed Upon Registration

The 2023 AACS Down Under Study Tour

The 2023 AACS Down Under Study Tour - a local study tour to visit the latest innovations in convenience stores, service stations, small format grocery & food retailing in and around Melbourne Stay at Crown Metropol, Melbourne and join the group for an exclusive tour dinner and networking event Not only will attendees then get to see stores but will also be hosted by senior executives from the various stores and given insights into the store operations & format development.

Thursday 9th & Friday 10th August 2023

Melbourne

Polese,

2023 INDUSTRY LEADERS FORUM

CELEBRATING

Despite the many challenges we’ve faced over the past few years, from Covid, to supply chain disruptions, and floods, the convenience channel has shown incredible resilience and for the first time the industry managed to break through $10bn in retail shop sales, which is an incredible milestone.

This achievement highlights the growing prominence and undeniable potential of the convenience channel within the Australian retail landscape.

A key driver behind this success is the food and beverage segment, which continues to dominate the convenience channel. Retailers have recognised the immense opportunities presented by on-the-go food, foodservice, and hot coffee offers, and they have been refining their strategies to capture a larger slice of the pie.

The convenience channel has evolved into a go-to destination for consumers seeking quick and convenient meal options that fit their fast-paced lifestyles. From busy professionals and students to travelers and tourists, the demand for easily accessible and delicious food and beverages on the move has never been higher. Retailers have responded by expanding their product ranges and improving the quality and variety of their offerings.

Gone are the days when pre-packaged sandwiches and mediocre coffee were the only options available. Retailers have

embraced innovation, investing in state-of-the-art equipment, and partnering with local food suppliers to offer fresh, tasty, and diverse choices to their customers.

On the other end of the spectrum, the decline in tobacco continues to hurt retailers, and the black marker for illicit tobacco and vaping products continues to add pressure to legitimate retailers.

In this years annual Industry Leaders Forum, we delve deeper into the latest trends, innovative concepts, and success stories within the convenience channel. We speak with industry leaders to find out the challenges and opportunities our channel is facing and ask them to look into their crystal ball and predict the future of convenience in Australia. Overall, we aim to provide our readers with valuable insights, actionable strategies, and inspiration to help them navigate this dynamic industry and seize the multitude of opportunities it presents.

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 actually 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

a milestone in the convenience channel

What have been the main highlights for Nestlé Purina over the past 12 months?

Despite the multitude of challenges facing the industry in relation to supply, logistics and operations, we’ve still managed to deliver growth for the channel and our aspirations to increase the footprint of the Petcare category haven’t lost momentum.

What will be the focus for Nestlé Purina for the remainder of 2023?

Our continued focus on ensuring we support retailers in developing and unlocking the growth potential of the pet category in their stores, with a clear focus on providing category leading insights to support growth driving brands.

What do you enjoy most about the convenience channel?

I love the diversity and multifaceted nature of the channel. One day you could be supporting a remote customer in a mining town in Western Australia, the next it’s focusing on scaling an offer for a metropolitan city store.

What is one challenge you’d like to see addressed in the industry?

Increasing the awareness and education of the power of the pet category through:

• Firstly, our retail partners around the size and impact pet can have on their business.

• Secondly, education to our loyal consumer base around the fact that the P&C channel carries their favourite brands and products.

How do you envisage the next six months for the pet category in the convenience channel?

With the momentum behind the category and strong industry growth forecasts, the size and importance of pet will only continue to increase as it continues to act as a tool for retailers to drive additional revenues outside of the more traditional impulsive categories.

What do you enjoy most about what you do?

Every day I get to come to work and assist in making lives better, not only for pet owners and their pets through offering our portfolio of market leading Purina brands, but through the P&C channel I get the chance to help small, medium, and large business owners or companies to drive additional revenue within a powerhouse category.

Is there anything else happening at Nestlé Purina that you’d like to highlight?

With an estimate of more than 28 million pets in Australia, Nestlé Purina will continue to remain focused on bringing great products and market leading innovation to ensure we help pets live longer, happier and healthier lives, to continue to set up the category for future growth. Our significant investment into new manufacturing capability will help us to realise these ambitions. ■

“

Through the P&C channel I get the chance to help small, medium, and large business owners or companies to drive additional revenue within a powerhouse category.”

– Michael Yassine

Michael Yassine

Senior Customer Business Manager – Independent & Impulse

Nestlé Purina

Lisa Schilling-Thomson National Sales Manager

Halo Food Co

What have been the main highlights for Halo Food Co over the past 12 months?

We formally launched TONIK on 1 September last year, following months of brand workshopping, re-branding, and new imagery. We completely turned the brand inside out to understand who the TONIK consumer/shopper was.

Since 1 September, it’s been an absolute whirlwind with 12 new accounts for our bars and RTDs, tremendous brand growth across multiple channels, particularly P&C and grocery. In April, TONIK was represented at the AUSFIT Expo in Sydney, the first trade event the brand has attended, and it was a huge success with thousands of attendees trying TONIK products, and 100 per cent fantastic feedback.

TONIK has experienced more than 65 per cent growth YOY and continues to grow. We expect TONIK to become a leading Australian brand within the next 12 months.

We acquired The Healthy Mummy (THM) brand back in February 2022, which was previously an exclusively online company providing health and wellness products to women all over Australia.

Mid last year we commenced plans to take THM into the Australian retail market. Our initial wins were ranging three SKUs with Woolworths and another three SKUs are ranged and going into stores in a couple of months. We’ve had terrific results in the first eight weeks with our Vanilla Tummy Smoothie ranking number 10 in the whole category. We are also presenting the brand to the pharmacy channel with very positive results currently.

What will be the focus for Halo Food Co for the remainder of 2023?

Halo’s core business has been contract manufacturing for the past 20+ years, and we continue to drive that highly successful part of our business. But now stepping into brand ownership, we have clearly seen the opportunities we have to take to market high quality consumable products, initially to the Australian public, but also entering other global markets with our highly desirable Aussie made products. We’re currently in discussions to take our brands into New Zealand, New Caledonia, South Korea, and Hong Kong.

For the remainder of 2023 we will continue to grow our TONIK and Healthy Mummy brands within Australia, focusing on grocery, P&C, independent supermarkets, and the specialty channels.

What do you enjoy most about the convenience channel?

The P&C channel in Australia is always dynamic, ever evolving, and driven to satisfy consumer demands and to develop category trends constantly – it’s an exciting channel that’s always changing.

I love working with category managers and buyers in P&C that are well versed and passionate about their categories. They do the work, they know their core SKUs, the trends coming, the trends ending, they understand the insights, the really great CMs get ahead of the trends coming, and pivot quickly, even outside of their structured annual reviews to change their ranging.

What do you enjoy most about what you do?

Firstly, being the highly competitive individual that I am, I love the challenge with a new brand to gain national ranging, competing, and winning! With TONIK, I’ve achieved national ranging in 12 new accounts in seven months, for Healthy Mummy, national ranging in Woolworths, and several other new accounts about to confirm ranging in the next couple of months.

This time next year I’m expecting TONIK to be one of the top three brands in the country.

I love multi skilling, it enables me to be able to put to good use all of the skills I have learnt in my career over the past 35 years. As I am the ‘sales team’ for Halo Brands Division, I work across all channels with both brands, from route, P&C, grocery, independent grocery, specialty, and pharmacy, so I wear many, many hats. I also do all the brand management, marketing, social media management, and liaise with our manufacturing plants.

Then there are the people I get to work with, collaborate with regularly, the category managers, buyers, business owners, account managers, sales reps, all of which play a major role in taking a brand to market.

I’m lucky that I get to do every day what I love. ■

“

The P&C channel in Australia is always dynamic, ever evolving, and driven to satisfy consumer demands and to develop category trends constantly – it’s an exciting channel that’s always changing.”

– Lisa Schilling-Thomson

Dean Theouli Director

Confectionery Trading Co

How has the CTC business evolved over the last 40 years?

Confectionery Trading Co (CTC) was founded in 1982 as a small business buying local confectionery and packing it in bulk count bags.

In 1987, the business was acquired by Andrew Theouli and Gordon Ogilvie, and they continued to grow the business, with year-on-year growth of five to 10 per cent.

The company’s first TNA packing machine was bought in 1990, which changed the way CTC packed bulk products. Aussie drops were launched with a mini 25g and a 70g bag and these two lines were very well received in the trade and school markets.

In 1992, a second TNA machine was purchased to pack high speed mini bags. Speeds up to 125 bpm. The company kept growing, and CTC acquired more warehouses.

In 2000, CTC went to ISM where they met Fini and acquired the agency for Australia. CTC imported more than 20 lines in the first year and was the first company to bring in Fantasy belts. This item become CTC’s number one product and still is.

CTC outgrew its facility in 2003 and bought the current premises in Villawood with more than 5,000sqm of warehouse space. I joined CTC in 2003 and brought skills to the business, which took it to the next level. Packaging capacity was as maximum, and a third TNA machine was purchased to pack mini bags. A shift in the business in 2004 saw more retail packs being developed.

For the next 10 years, the business continued to grow. CTC become SQF accredited, which set a high standard to our packing and warehouse business.

CTC is now in major supermarkets, discount stores and P&C stores. We continue to grow our brands and develop products for Private Label.

In Aug of 2022, I purchased the business and now am sole director of CTC. Over the past six months, CTC has purchased two new packaging machines to cope with the new business we have. We have rebranded our biggest growing brand Big Lolly.

CTC continues to find new markets to sell into. We continue to design and develop new products and support all our suppliers worldwide.

It’s an exciting time for CTC. We have a brand plan which is very clear and gives the company direction and growth. With the addition of our two new machines, this will give CTC more packing capacity and fewer delays in delivering products to shelves.

What have been the highlights for CTC over the past 12 months?

The main highlight for CTC has been relaunching our Big Lolly brand – the new look is amazing. Big Lolly as a brand

has grown 55 per cent over the past 12 months and we have also seen growth in our other key brands such as Aussie Drops, Joojoos, Fini, and Swizzels.

For the remainder of 2023, our main focus will be to continue to service all of our customers. We are aiming for a 98 per cent rate of delivery in full on time (DIFOT).

What do you enjoy most about the convenience channel?

I love it when we have the opportunity to set up a Kandy Kingdom stand in a retail outlet. It makes me very proud to see all of our fantastic products on display and available for the kids to purchase.

What has been a personal highlight for you over the past year?

A personal highlight for me has to be purchasing CTC Australia. The love that I have for the business and also for confectionery really gave me no other option but to purchase CTC and keep the business in the family. It has definitely been a massive experience for me, but it was all worth it. The business has been in our family for more than 40 years, so to keep it in the family is very important to me.

What do you enjoy most about what you do?

I enjoy being part of an amazing company. Of course, my background is in engineering, so that pushes me to improve our systems and packaging machines. Developing new products is also very enjoyable.

Is there anything else happening at CTC that you’d like to highlight?

We are currently running an Aussie Drops promotion. It’s the first of its kind for CTC with a QR code and unique codes to enter the draw. The promotion is on our 70g and 150g share pack. ■

“ The love that I have for the business and also for confectionery really gave me no other option but to purchase CTC and keep the business in the family.”

– Dean Theouli

Martin Best Managing Director Pacific Optics

What

have been the highlights for Pacific Optics over the past six months?

At Pacific Optics, we keep challenging our status quo and setting ourselves new benchmarks for field representation, customer service and delivery metrics.

From a product perspective, the relaunch of Fuse Audio has been incredibly successful. The vibrant contemporary packaging and innovative products have significantly increased category sales.

Aerial Sunglasses have launched more than 60 new quality styles catering for the evolving change in fashion. In addition, we have launched a selection of sunglasses that use 100 per cent recycled frame materials.

Our Australian standards compliant sunglasses category has been revitalised and is in a strong growth phase.

I consider our 2023 Aerial Winter Headwear range, including the value Winter Warmers prepacked stand, to be the best value and fashionable range in the market. As with sunglasses, our headwear range is designed by our team in Australia – we do not buy generic products off the shelf.

Pacific Optics has developed and continually invests in cyber security best in class, with a redundancy of less than four hours to regain operations. It is extremely important for trade partners to have confidence that suppliers are taking all practicable measures to insulate them from attacks and will be in a position to keep trading.

We have delivered more than six million digital ads a month supporting Aerial Brand, Walk n Talk and Fuse Audio. These have been targeting consumers to shop with our retail partners. This is key in encouraging consumers to shop within the convenience channel.

Most importantly, we have several new additions to our team across sales, product development and operations. We now have an ideal mix of experience, innovative enthusiasm, and people that contest the norm.

It’s always great for the whole team to receive recognition for their hard work and innovation, and we are proud recipients of the following customer awards:

• BP: Buying Group General Merchandise Supplier of the Year

• UCB: Trade Partner of the Year General Merchandise

• APCO: General Merchandise Supplier of the Year

• Ampol: General Merchandise Supplier of the Year

• NSG: Supplier of the Year Non Food

• AACS: Supplier of the Year Grocery & General Merchandise

What will be your key priorities for the remainder of 2023?

We are launching a new marketing campaign on Walk n Talk Phone accessories. Walk n Talk is Australia’s favourite phone charger brand and is dedicated to supporting the P&C channel.

In addition, we are launching a new range of Aerial Footwear, a whole new toy and games offer focusing on market leading global brands and rolling out our fishing partnership with Tackleworld.

Christmas and peak travel occasions will be huge with exciting new tech stand offers, gifting and outdoor fun products to delight the consumer.

We will also be continuing down the ESG path which is a key corporate objective for Pacific Optics.

We support a foundation charity – OneGirl, which has benefited more than 10,000 girls and boys via education programs across Africa and the Pacific. Each sale from our brand ONEDAY helps fund ongoing education, feminine hygiene and business bursaries programs across Africa and the Pacific Islands.

We also take Modern Slavery seriously and have registered voluntarily to the Australian Boarder force anti modern slavery reporting with a view to ensure we only deal with compliant factories across the region.

What are the biggest challenges facing the convenience industry?

An opportunity exists to improve the overall benchmark in the industry by contesting products that do not meet with applicable Australian and Safety Standards in eyewear, headwear, and phone accessories.

We also see new entrants to the channel, which is great to ensure ongoing innovation and development. The challenging part of this is ensuring that competition is in the best interest of category solutions, category profitability and overall professional business practices and doesn’t mean degradation in any of these key areas that have been built and are appreciated over the last few decades. ■

“ We have several new additions to our team across sales, product development and operations. We now have an ideal mix of experience, innovative enthusiasm, and people that contest the norm.”

– Martin Best

CHARGES APPLE, SAMSUNG AND ANDROID DEVICES. STAY CONNECTED ON-THE-GO

What have been the main highlights for PeleGuy over the past 12 months?

We’ve discovered that not many suppliers offer the same level of service as we do; I’m talking about our reps physically visiting every single store on regular basis, including those located in very remote areas. Apparently, that is not something that comes as a standard to other companies.

This has led to a substantial growth in our customer base, right around Australia, with new independent stores, groups of a few sites, additional service stations, and supermarkets from the groups we are already working with.

We’ve been receiving amazing feedback about the attention each of our customers are getting from us, and this has been very rewarding and motivating.

What will be the focus for PeleGuy for the remainder of 2023?

The market is unpredictable these days and we often see the prices of a few products increasing by around 20 to 30 per cent overnight, but then they can come back down as quickly as they went up. So, we work hard to ensure that we keep our prices as stable as possible, to provide the best value to our customers. This is of course not always in our control, so our team is constantly researching the market to find new sources and contacts, to be able to keep our prices competitive.

What do you enjoy most about the

convenience channel?

Over the past 20 years, we’ve enjoyed watching our customers grow and expand their businesses, opening additional locations around Australia. It’s satisfying to know that we’ve been a part of that growth.

There have been companies that had just one site when they began working with us and now, they’ve grown to more than 60 sites around the country, and we’ve been there with them setting up for the opening of each of these sites.

We also have a direct connection to our consumers and we can react almost immediately to any new trends or products that are hitting the market.

What do you enjoy most about what you do?

As a former sportsman – an ex-superbike racer to be exact –I enjoy moving fast, and that includes being the first to market with the latest gadgets, novelty products, and hot items.

We love turning an average store into a great looking store, with a well-stocked and organised, and therefore a profitable operation.

Having spent best years of my life working hard to beat my best lap time in racing, I know what a good challenge is, and how rewarding it is to overcome it. I will always go out

of my way to close a deal with a new lead that needs a bit of extra attention and will give them all of the information they need in order to understand the benefits of working with us. This is a challenge that I get a real kick out of, and it’s not always an immediate reward. The money can come later but first comes the pleasure of having another satisfied customer on board for the long run.

What is one challenge you’d like to see addressed in the industry?

Staffing has been a huge problem over the past 12 months, and it has been a huge challenge to find good, professional people.

Is there anything else happening at PeleGuy that you’d like to highlight?

We are very excited as we are about to shift to a new ‘top of the range’ sales software that will allow our customers to place orders online in a much more convenient way. They will be able to see all the current offers, create ‘favourite’ lists, view their order history, view popular and best-selling products, see their history of sales – by product volume and value; create a contact request, pay their bill online etc. And our own PeleGuy App will be available to download for Apple and Android users for the smoothest and sweetest customer experience while shopping online with us. ■

“

As a former sportsman – an ex-superbike racer to be exact – I enjoy moving fast, and that includes being the first to market with the latest gadgets, novelty products, and hot items.”

– Yaniv Peleg

Yaniv Peleg Director

PeleGuy Distribution

Haydn Gearon, National Sales Manager – ANZ, Rich Products

What have been the main highlights for Rich Products over the past 12 months?

Seeing the growth of f’real throughout the ANZ marketplace has been a real highlight for us at Rich Products. Volumes are growing substantially, and we expect that growth to continue for some time.

F’real is a unique offer, which ticks all the boxes. It is convenient – the product is all in the cup, the customer chooses their flavour (and thickness), inserts it into the f’real blender and in a minute, they have a fully formed thick shake or smoothie. Stores love it because the self-serve blender is also self-cleaning, so other than basic housekeeping there is very little store staff interaction required.

Despite being in the relatively early stages of our growth in ANZ, f’real trends quite regularly on TikTok – the brand and the offer seems to resonate with the core customer. We had a recent installation that went viral due to a TikTok video, the site sold more than 1,000 units in three days.

What will be the main focus for Rich Products for the remainder of 2023?

On the f’real side of our business our focus will be in on the development of new products. Our current range sits at six SKUs (by comparison, in the US, where f’real has been a market leader for more than 20 years, we have twice that

amount). We’ll have a couple of new f’real shakes for next summer. Constant innovation and ‘new news’ are critical for the continued growth of the brand.

For the other parts of the Rich Products business, we continue to pursue growth in our toppings and icings product ranges, to the bakery, dessert and beverage segments as we develop our omnichannel approach.

What do you enjoy most about what you do?

When it comes to f’real, I enjoy seeing the growth we are achieving with the brand and the results our customers are getting out of it. We find that with f’real, our customers are getting new users into their sites, that’s incremental business (and good for their business) so it’s a win/win for everyone.

My role at Rich’s is quite varied, so no two days are really the same. From presenting to senior management to going through the basics of f’real blender maintenance at a remote site in Australia or New Zealand, there is never a dull moment.

Is there anything else that you’d like to highlight?

Watch out for us at the C&I Expo of course, come and try a shake and enjoy the f’real experience firsthand. As I mentioned we will have new lines coming through for summer so watch out for that as well. ■

What have been the main highlights for Fujifilm over the past 12 months?

TPG Store of the Future (STOF) – This is a total rethink for TPG and we have worked with them and their planning team to have more focus on an LED solution in-store. They have gone with one large 2.5m LED Screen and banners above their product bays driving customers in-store. These products have been custom made to suit but also provide TPG with a consistent look and feel to engage with their customers.

What will be the focus for Fujifilm for the remainder of 2023?

We will have further focus on TPG’s STOF but we are really looking forward to working with new customers like Lowes Fuel to further enhance their customer experience in-store.

What do you enjoy most about the convenience channel?

There are plenty of opportunities for the convenience sector to engage with their customers all while driving real outcomes with a digital signage solution. Think about what could be done with End Caps and shelf talkers with a custom solution that is like a silent salesperson.

What is one challenge you’d like to see addressed in the industry?

The myth that digital signage is expensive. Think about the message that you are trying to get to your customer and how you can best deliver that. It has so much value! There is no easier way to do this than with a digital solution that can drive customers to the products you want them to purchase.

What do you enjoy most about what you do?

Seeing the end result, not only from how it looks in-store, but seeing stores driving real outcomes and seeing an increase in sales as a result.

Is there anything else happening at Fujifilm that you’d like to highlight?

There is always something going on at Fujifilm, but for our division it is the technology that is now available for any situation from printing photos, to capturing that eye catching image or displaying content that is engaging. There is so much content being produced these days, it would be great to see this not only used to drive engagement on social media, but in stores as well. It’s just nice to play a part across all these platforms and see the results. ■

“ There are plenty of opportunities for the convenience sector to engage with their customers all while driving real outcomes with a digital signage solution.”

– Fiona McAllister

Fiona McAllister

National Sales & Service Manager Fujifilm

What have been the highlights for AACS and the convenience industry over the past six to 12 months?

It has been a very big 12 months with lots of highlights, so this is a difficult one to answer simply, however our international study tour in 2022 to the US was a highlight. Another highlight must be the launch of the Commercial Academy Training program, where AACS is looking to play its role in developing greater commercial capability for our retailers and supplier members. APCO Wangaratta winning the NACS Asia Pacific Convenience Store of the Year Award is also a major standout for me.

From an industry perspective, the unbelievable growth of foodservice, beverages, and grocery on the back of a number of strong years of growth is so good to see. Finally, without question, the announcement of the Viva acquisition and merger of the OTR business to replace the Coles Express brand moving forward is the biggest news of 2023, which will deliver a world class retail offer to more Australians and help lift the overall profile of the channel.

What will be your main priorities for the remainder of 2023?

The association has a broad range of strategic priorities. Our heavy focus for the balance of 2023 will be on government advocacy to change the packaged alcohol legislation for convenience stores. We will continue trying to change government mindset on the failed prescription-only model for nicotine vaping; including better enforcement at retail level of illicit tobacco and illegal vaping. We’ll also be seeking new laws to remove red tape and allowing police to easily close down rogue operators. We will work with police to drive better support for our members in areas of retail crime and fuel drive offs. Health and sustainability will also be focus areas for me.

What are the most important topics the industry should be discussing in 2023?

The industry should be focusing on training and upskilling their teams at all levels to improve their commercial capability and achieve better outcomes.

The integration of technology into retail should also be top of mind, enhancing loyalty programs to be more personalised and to deliver consumer value, removing friction from the customer experience and investing heavily in developing their food offers, are all topics that retailers should be focusing on.

What does your crystal ball tell you about the future of convenience in Australia?

Consumers will only become more dependent on the channel as our retail offer continues to be developed out. Foodservice, beverages, and grocery will continue to drive growth in the industry for many years to come, with consumer dependence on convenience plus formats to become the dominant offer.

Electric vehicles will play a role; however, the transition will take a lot longer than most people expect and zero emission liquid fuels and hydrogen will have more of a say than they currently have.

Shop design will be transformed to accommodate increased consumer dwell time, forecourts will be repurposed to create mobility hubs to cater for last mile, delivery and charging hubs, car share locations and dark kitchens just to name a few.

Are there any other messages you’d like to share with the industry?

Convenience retail continues to deliver innovation, new shop formats, new food offers and greater brand partnerships than ever before. The industry continues to thrive under immense pressure and consumers love seeing how our industry is transforming to make their lives easier. Congratulations to everyone for playing their part in reshaping convenience retail in Australia. ■

“

The industry continues to thrive under immense pressure and consumers love seeing how our industry is transforming to make their lives easier.”

– Theo Foukkare

Theo Foukkare CEO

Australian Association of Convenience Stores

Darren Park CEO

United Convenience Buyers

What have been the highlights for UCB over the past six to 12 months?

Over the last six months, UCB members, trade partners and my UCB team have successfully driven continuous improvement initiatives and aligned to our growth objectives. From further improving our overall NPS, to continuing to push the boundaries on the thoughtful use of technology (eg UCB Online Sales Day) that connects members and trade partners to create shared value. And of course, the 2023 UCB National Member Conference and Trade Show, where our largest ever attendance enjoyed arguably our best ever Trade Show, picked up valuable insights from Australian and international guests, and simply enjoyed the company of friends and colleagues.

Personally, partnering trade partners, UCB members and Heart of the Nation to drive the placement of more than 150 AEDs, is one highlight that connects us with our communities.

What will be your main priorities for the remainder of 2023?

The balance of 2023 challenges us as a business and industry across many of the same issues that we have dealt with for the last 18 months. To navigate these challenges, UCB members will continue to build on providing their wellknown personalised customer service, leveraging their local community connections, optimising product assortment and execution, and finding unique ways to add value to the shopping experience with programs such as Speed2Shelf.

As an industry, we share with suppliers the pressures in areas such a supply chain and communication – building shared outcomes in these areas will drive massive dividends for us all.

What are the most important topics the industry should be discussing in 2023?

There are many topics that we could share, where we focus though requires a shared approach. Supply chain efficiency is the first topic that comes to my mind. Suppliers (and retailers) need to keep working on the smooth and efficient delivery of their products to store. The challenge lies in managing logistics, maintaining appropriate inventory levels, and coordinating with multiple supply partners in different locations to meet varying demands.

I believe the second topic is relationship management. Building and maintaining strong relationships with convenience retailers is crucial for us both. This involves effective communication, understanding retailer needs, and providing reliable customer service. Suppliers must proactively engage with retailers, address any concerns or issues promptly, and collaborate on strategies to drive sales and mutual growth.

What does your crystal ball tell you about the future of convenience in Australia?

Community engagement and local focus is the key. Convenience retailers can differentiate themselves by fostering strong connections with their local communities. This may involve supporting local producers, participating in community events, and engaging in philanthropic initiatives. We have a natural advantage over many other shopper options, let’s use our collective network reach to sell a message of community, a consistently safe place to shop and an industry that is responsive to shopper needs. If we can get this right, we’ll make our own future.

What do you enjoy most about what you do?

How could you not feel grateful for the growth our channel is driving, as a result of our collective hard work? There’s simply so much variety in our industry, we get to touch every area across business management and where there is nothing that any of us do, that we do alone. We need the help of each other and for myself and my UCB team, that’s our secret sauce. It’s how we continue to make ourselves available to suppliers and members, in a way that is effective, personable and enjoyable to work with.

Are there any other messages you’d like to share with the industry?

The convenience industry is constantly evolving, and staying proactive and adaptable is the key to our industry’s success. By embracing innovation, prioritising customer experience, fostering partnerships, and being mindful of sustainability and market trends, we can position all our businesses for growth and maintain an industry- wide competitive edge in servicing the needs of our shoppers. ■

“ We have a natural advantage over many other shopper options, let’s use our collective network reach to sell a message of community, a consistently safe place to shop and an industry that is responsive to shopper needs.

”

– Darren Park

George Tsapoutas, General Manager, The Distributors

What have been some recent highlights for The Distributors?

One of the many highlights for me has been our sector’s ability to navigate through what was a challenging business period and at the same time invest in gaining and retaining new consumers to our segment.

What will be your main priorities for the remainder of the year?

Providing national coverage with localised service is what we pride ourselves on within The Distributors, as we emerge from all the current manufacturer supply chain issues, returning to our high standard of outbound service levels is what we will be focused on for the remainder of 2023.

What are the most important topics the industry should be discussing in 2023?

Right now, it’s all about how we can attract and retain more staff to our segment to enable retailers, manufacturers, and wholesalers to continue to grow and deliver growth and customer service into the channel. We also need to be competitive in comparison to the major retailers, both in promotional pricing and stock availability.

What do you enjoy most about what you do?

Dealing with people and the constant changes that take place. I am lucky to work with a great group of people at The Distributors and within this channel.

What does your crystal ball tell you about the future of convenience in Australia?

Change will be a constant for the next few years, and if I did have a crystal ball it would be telling me this is a growth channel. It is one that we will continue to focus on as both corporate and independents look at new formats and offerings, we along with manufacturers, will also be looking at new opportunities for the channel.

Are there any other messages you’d like to share with the industry?

The Distributors as a group has been operating successfully for 42 years and continues to grow and develop its offering within the P&C channel. On behalf of the board, management, and staff of The Distributors, we would like to thank this industry for the support and opportunities afforded to The Distributors Group by all our customers, both corporate and independent. Thank you. ■

Tim Rankin, National Retail Fuels Manager, Caltex

What have been the highlights for Caltex over the past 12 months?

We are focusing on making customers’ experience simple, smart, and seamless – offering warm and friendly service, together with our specially formulated fuel system-cleaning ingredient Techron®, which is available in every Caltex fuel grade. We’re proud to be building on the history of the Caltex brand and making Caltex with Techron available in every grade of fuel, bringing new retail fuel experience to our valued customers backed by impactful advertising and sponsorship initiatives.

It is especially exciting to be bringing back a brand that has been trusted by generations of Australians and the world over. Already, we have seen increased customer interest in the Caltex brand and new retail partners joining us across the country.

We have recently launched the all-new Caltex StarCard –the fleet card that puts fleet owners in control. The StarCard’s

fleet management system is fully adaptable to a company’s needs and allows fleet owners to choose from a variety of control and usage options. It is designed to give operators greater security and added value in managing their fleet.

What will be your main priorities for the remainder of 2023?

In 2023, we are bringing a new service station experience to consumers across Australia. We have ramped up our national program of rebranding most of the Puma Energy network to the all-new Caltex, while welcoming aboard new customers, partners, and suppliers.

Chevron, which owns the Caltex brand globally, is one of the world’s leading energy companies and has been present in Australia for more than 70 years. Following our acquisition of Puma Energy (Australia) Holdings three years ago we have carefully planned and developed new customer and partner offers and embarked on a national rebranding project that will see most of the Puma sites rebrand to Caltex by the end of this year.

I am excited to report we have also brought back the range of lubricants loved by the transport industry, Caltex Delo®, which has been delivering end-to-end protection to critical diesel engine parts for over 80 years. Calex Delo® ISOSYN® Technology combines premium base oils with high-performance additives to deliver outstanding performance for customers. ■

“ Change will be a constant for the next few years, and if I did have a crystal ball it would be telling me this is a growth channel.”

– George Tsapoutas

“ It is especially exciting to be bringing back a brand that has been trusted by generations of Australians and the world over.”

– Tim Rankin

David Taylor, National Sales Manager, The Handmade Food Co

What have been the main highlights for Handmade Food Co over the past 12 months?

What’s been most exciting to see over the last 12 months has been the strong growth right across our business. After such an uncertain period over the last few years it’s great to see customers appreciate the breadth, convenience, and quality of our products.

What will be the main focus for Handmade Food Co for the remainder of 2023?

Meeting the needs of our customers is always front and centre for us. We’re working closely with customers to help them grow their businesses by creating great products and loyal consumers.

We are also taking our roles as business partners seriously. We will be running a number of education programs so our customers can minimise waste and get the most from their equipment, ranging and display options.

What is one challenge you’d like to see addressed in the industry?

While our products are served fresh, are high quality, and have a great shelf life, they are shipped and stored frozen before use. Our NPD team has spent years perfecting our technology and products; I would like to see a broader acceptance of

quality frozen alternatives and their business benefits, as they provide a quality and flexible solution for customers.

What do you enjoy most about the convenience channel?

I love working with the people. Our sector has an amazing spirit and is full of innovation and energy. Everyone works together to give customers a great experience. It’s so rewarding to see ‘food on the go’ becoming such an integral part of a retailer’s offer.

What growth do you foresee in on-the-go food category?

I am a naturally positive person and I believe that strong businesses will continue to prosper. While I do have some concerns about a potential economic downturn with rising interest rates and rate of inflation in 2024, I believe the labour shortage will lead to higher demand for pre-prepared foods.

Is there anything else happening at Handmade Food Co that you’d like to highlight?

We have new products on the horizon and are exploring some new and exciting packaging solutions. We will continue to invest in and grow our team to support our customers and their needs. It’s certainly an exciting time for us. ■

Iain Kirsch, General Manager (Wholesale) Metcash

What have been the main highlights for Metcash over the past 6 to 12 months?

The team are proud of the work they have done to support customers and suppliers to adapt their offerings to the changing customer demands as communities have learnt to live with Covid, as well as illicit tobacco and illegal vaping shifting the tobacco market dynamics. We have also leveraged our supply chain network to maintain the supply of products through the flooding that disrupted transport routes to the West Coast and the NT.

What will be the main focus for Metcash for the remainder of 2023?

We will continue to adapt and improve our food service offering to better support the P&C channel. I see a continuing trend of meal solutions – fresher, healthier, meal solutions for all parts of the day.

Investing in our people is key to developing our business to enable us to meet our customers’ needs in this challenging environment.

What is one challenge you’d like to see addressed in the industry?

I would like to see more support for the legitimate tobacco businesses from the Government in closing the illegal market. The sale of illicit Tobacco in Australia continues to grow

quickly taking significant market share from the legitimate tobacco sellers. This is putting huge pressure onto the profitable operation of many convenience stores that sell tobacco across Australia and may eventually force them to close or sell illicit tobacco.

What do you enjoy most about what you do?

The passionate people that work in customers and suppliers’ businesses that bring new ideas to life continuously to exceed consumer expectations. And of course, the great team that I am lucky to work with. We work hard, respect, and motivate one another as individuals and as a team.

What has been a personal highlight for you over the past year?

Personally, my wife and I have relocated from Perth to Sydney. We’re enjoying exploring Sydney and everything the city has to offer.

Is there anything else happening at Metcash that you’d like to highlight?

Metcash also have a very successful liquor and hardware business that can support customers with a far wider range of products and support services than some people are aware of. ■

Supporting Businesses for Over 90 Years

Skye Jackson, General Manager Merchandise, Ampol

What have been the highlights for Ampol over the past 12 months?

It has been a big year for Ampol – we announced record profit, completed the rebranding of 1,800 locations to Ampol, launched AmpCharge EV charging and raised more than $1m for the Ampol Foundation to name a few highlights.

What will be your main priorities for the remainder of 2023?

My team is focused on driving growth from our store offer. We’ve launched some great new ranges such as our exclusive relationship in P&C for Doughnut Time, which our customers are loving! We have a few other exciting launches to come, but I can’t share too much on that!

What do you enjoy most about what you do?

I love the variety of what we do – no two days are ever the same and I get the chance to get out in the field and see how our offers are coming to life for our customers in stores. I enjoy our channel; we are very connected and I enjoy the involvement I have on the AACS board to support our industry.

What are the most important topics the industry should be discussing in 2023?

Focusing on the future, what our forecourts will look like in 10+ years’ time, and what we are doing now to attract that future customer and set ourselves up for success.

What does your crystal ball tell you about the future of convenience in Australia?

We are fortunate to be able to look to markets overseas to get insights on what the future of convenience will be, so no need for crystal balls! I’m excited to be attending the AACS International Study Tour, where we will visit progressed markets for EVs like Norway, where EV penetration is some of the highest in the world. These markets will showcase how retailers are responding to the changing needs of customers. ■

Matt Keogh, Executive General Manager – Product, 7-Eleven

What have been the highlights for 7-Eleven over the past six to 12 months?

We’ve been excited to roll out 10 Johnny’s Deli at 7-Eleven proof of concept stores across greater Melbourne. These stores have all the convenient solutions customers expect from 7-Eleven, with the addition of an elevated food offer that means customers can order a hot deli sandwich that is heated to order in only a few minutes. This offer is part of our longer-term plans to be the ‘go-to’ destination for quality, convenient food and beverage.

We opened new stores, including in new regional locations like Townsville, Wodonga, and Maryborough. The team continued to roll out Micro Market solutions to a range of new locations to meet the ever-changing needs of our customers.

What will be your main priorities for the remainder of 2023?

In the year ahead, our focus will continue to be on providing good value, quality products by evolving our food and beverage offer; presenting that offer in new and conveniently located formats; and helping our customers save time by utilising Pay & Go and being rewarded for loyalty.

These are things we know we must do and are doing to achieve our ambition of a billion customer moments by 2030 and to make the everyday easier for our customers.

Being the destination of choice for convenient food and beverage, with an expanded range, new store locations, new formats and digital growth are at the centre of ensuring we can provide our customers with what they want, when they want and where they want it.

Organic growth and network expansion will see at least 30 new stores on average open per year with a heightened focus on entry into new markets including regional locations in Victoria and NSW, as well as further expanding in North Queensland.

What does your crystal ball tell you about the future of convenience in Australia?

Food is going to continue to grow in our industry and is going to be a critical part of our future.

The food market within petrol and convenience is estimated to be worth $5 billion, however there is a bigger opportunity in the convenient food space, which is estimated to be worth $60 billion today and growing to $100 billion by 2030. That opportunity includes meals, snacks and beverages served over the counter or via delivery.

We are in a strong position to lead as an industry on providing consumers with more choices in the food that is available on the go. While people will always want classic favourites like a pie or a sweet treat, I think consumers will want us to continue to grow the range of healthier choices and more sustainable options available.

What do you enjoy

most about what you do?

The opportunity to lead an incredible team who are playing a leading role in evolving what convenience means in Australia is something I really enjoy. To have the ability to make a difference in pushing the boundaries in food, increase the convenience of our offer and continually deliver value for our customers who are confronting challenging economic times. ■

“

We’ve launched some great new ranges such as our exclusive relationship in P&C for Doughnut Time, which our customers are loving!”

– Skye Jackson

Robert Anderson, Director, APCO

What have been the highlights for APCO over the past 12 months?

There have been a number of highlights over the past six months; for the first time our total network achieved above 30 per cent foodservice share for non-fuel merchandise sales, which is a target we set ourselves a few years back, so I’m extremely proud of my peoples’ passion and commitment to achieving this strategic milestone.

Additional highlights were being Finalist for AACS Retail Store of the Year for our Wagga Wagga location, and our Wangaratta store won the Victorian State Small Format Store with Metcash. These locations are second to none offering ultra, modern convenience and are a testament to the amazing work the APCO Support Office team are doing to evolve the best standards in convenience. And let’s not forget our incredible retail partners that execute and deliver exceptional experiences every day.

I’m in awe of the work and performance of everybody involved and can’t thank them enough, never been prouder and more excited about our future business opportunities.

What do you enjoy most about what you do?

Coming to work each day and the people. I am privileged to work alongside and meet great people every day –from retailers and trade partners that all share a common passion for the industry – and this urges me on to continue. Convenience is an exciting industry, highly competitive but extremely collaborative and vibrant, the industry has had a

long-standing reputation as being fun, and it’s the people who make it that way. I’m still as passionate and excited about the industry and business as l was since joining APCO 33 years ago, there isn’t much more that l know, and I can’t ever see myself doing anything else.

I also get great satisfaction from working with long-term retail partners and experiencing their store sales growth and success, APCO has seen steady growth year on year. We are not about the quantity of stores, we’re only focused on quality, and we work hard and invest in facilities to make each store and development counts. Our fuel volumes and merchandise sales typically over-index compared to the industry and it’s our continued desire to keep challenging the status quo, lifting the bar of convenience foodservice that l enjoy most.

What does your crystal ball tell you about the future of convenience in Australia?

Despite the challenges and headwinds, the future is bright, and the convenience industry is well placed with Australian shoppers recognising the valuable trusted service our stores provide to local neighbourhoods and communities. While the economic environment will undoubtedly squeeze household budgets and spending, convenience will continue to fulfill the local, social, community needs of our customers. If you treat them well, with a friendly smile and good service, your customers will always keep coming back, it is really that simple. ■

Bruce Spiteri, Managing Director, JB Metropolitan Distributors

How did the JB Metropolitan Distributors business come about?

I felt like I had no prospects where I was working at the time, so I decided to purchase a small confectionery business, which I went on to operate from our garage for the first two years, and the business has just continued to grow from there.

How has JB Metropolitan Distributors evolved since its inception?

When I started, I insisted on delivering within 24 hours, and from then on, the business grew as a result of our service levels.

Since the early days, the business has also grown out of the garage we were originally operating out of, and has experienced continuous growth, including the expansion into Adelaide, Darwin, and Wollongong.

This year, we are celebrating our 40th anniversary and my wish is to reward our staff, especially those who have been here for most of the journey.

How has the industry changed over the past 40 years?

The need for us to diversify into groceries, beverages and food service is testament to how the industry has changed. Service stations/convenience stores have changed from

a fuel seller to a destination point – this was emphasised during Covid.

These customers of ours are now the corner store, the newsagent, the takeaway with the need to continue to offer their customers a broad range of products and services.

What are your plans for the coming year?

Our Darwin branch is growing, so a move to a fully airconditioned warehouse is imminent. For the rest of the company it is to continue to work on being the best in the business.

What is one challenge you’d like to see addressed in the convenience industry?

Only one!? I would really like to see the measure of market share incorporate the convenience channel, as too much is concentrated on the supermarket’s performance.

What do you enjoy most about what you do?

I love when we attract new customers and achieve that through our reputation for great service.

Do you have any advice for the industry?

The doom and gloom that is about at the moment is of no benefit to anyone, think positive and never look for excuses. ■

John Dib, Managing Director, Metro Petroleum

What have been the highlights for Metro over the past 12 months?

We are always striving to be better than we were last year – it’s not necessarily about being the best. And this was demonstrated through our recent trade day where we had our biggest attendance in terms of both suppliers and our franchisees. Around 90 per cent of our Metro network were in attendance and we had more than 46 companies representing around 96 suppliers – so it was our largest turnout and a massive step up from where we started in a carpark less than 10 years ago.

Another highlight for us is that our Metro field team is growing, and we’ve employed another three people, which is a 30 per cent increase to our team! Our stores and our reputation are both growing, so we’re going in the right direction. The growth in store numbers over the last 12 months has been huge and it’s incredible for the future of the business, that they see that the growth is still there for the long term.

What will be the focus for Metro for the remainder of the year?

Our main priority is to continue to create a happier and stronger franchise model where the stores can make more money but they’re also more compliant, and where we have a great relationship with both our franchisees and our suppliers. And that’s what we’ve been building year on year

Steve Cardinale,

– when we started the Metro Zone, we had a compliance rate of about 35 per cent and now we’re sitting around 77 per cent. So, it’s been a big jump for us over the last eight years and we really want to push that above 80 per cent.

What does your crystal ball predict for the future of convenience in Australia?

It’s constantly evolving, and you never know what you’re going to see next. We’ve got Boost Juice in Ampol, there was David Jones in bp, and we have Cold Rock and Mr Whippy in Metro – so things that you never thought would happen are happening today. Maybe we’ll see a hairdresser to make people sit a little bit longer, who knows? The opportunities really are endless and it’s about focusing that on something that is going to entice consumers to a) visit b) spend and c) look at what timeframe they need, because most people are still time poor. ■

Managing Director, New Sunrise

What have been the highlights for New Sunrise over the past 12 months?

A key highlight was New Sunrise winning the AACS National Retailer of the Year in March 2023. I am extremely proud and humbled to receive this recognition, and extremely pleased that our hardworking, innovative team and members have been recognised for the outstanding effort and results delivered.

In 2022, New Sunrise sales across our retail network had grown by 20 per cent, which is off the back of YOY growth above the market for the last five years. I see this recognition as a reflection of the total New Sunrise team working collaboratively with members and suppliers, bringing our strategy to life in focusing on mutuality, visibility, execution, and growth. I wish to thank the supplier partners that contributed to New Sunrise receiving this award.

Further, it was fantastic to see Mood Food Kempton win AACS Best Overall Store of the Year, after winning Best Independent Store of the Year earlier in the night. My congratulations to Troy Bennett and all the Mood Food team on delivering such a world class offer, taking our convenience offer to a whole new level.

Another key highlight was at our largest ever New Sunrise Iceworks conference held in Hawaii in November 2022. I was so pleased to be able to have the father of the ‘independents’, David Goldberger, present at our

conference. Many people do not know his story, so it was a highlight to have his inspiring story recounted at the conference. Goldberger was the first person to introduce fuel discounts, the first person to build an independent brand in Australia and the first independent to import fuel into Australia. All delegates, both suppliers and retailers, found his story inspiring and a highlight of our business session.

What are the most important topics the industry should be discussing in 2023?

1. Reducing regulation and both RED and GREEN tape: The industry is over regulated and undervalued by the Government. The operating costs of a service station are much higher than a c-store without fuel. High penalty rates are higher than hospitality and large retail stores. This needs to change if we are going to be remain competitive.

2. Alcohol being sold in c-stores. It just makes sense to offer this in our stores, with the changing market forces, we need to be able to add new categories to our existing offer and be on par with the rest of the world.

3. Recruiting talent into our industry. Store management can often be seen as a job to do while studying, rather than a serious career in retail. I think retail management is a specialist position and it would be great if we could look at the way we recruit and keep talent. Similar with supplier partners. ■

“

Our main priority is to continue to create a happier and stronger franchise model where the stores can make more money but they’re also more compliant.”

– John Dib

Haydn Tierney, Managing Director, Bowser Bean

Do you have any personal highlights you’d like to mention?

I was honoured to be welcomed to the board of the Australian Association of Convenience Stores at the recent AACS Connect 23 Conference. I look forward to deepening my understanding of the national P&C industry and providing my perspective as an independent retailer and champion of convenience.

What is Bowser Bean doing to meet changing customer demands?

The Bowser Bean food and coffee offer is already exceeding the demands of traditional petrol and convenience (P&C) customers. We are also positioning ourselves to non-traditional P&C customers such as online ordering and delivery. Although we have a captive market we are going to have to work harder and smarter to service our customers.

How important is having a strongly performing hot coffee offer for P&C retailers?

A strong coffee offer ensures relevance in a changing market. A decline in traditional categories such as tobacco combined with shifting patterns of fuel purchasing can drive down shop footfall. A well-executed coffee offer not only increases shop margin but provides opportunity for multiple weekly and daily customer visits.

What challenges and opportunities do you see for the market in 2023 and beyond?

In the short-term a value offer will be a key driver for which coffee does provide good deal and combo opportunities. Moving into the future the key will be converting the current generation of energy consumers into the coffee channel. Coffee is a great opportunity for P&C to diversify and lift its current shop offer rather than just selling the same stuff as the guy down the road.

What do you enjoy most about what you do?

It is very satisfying to be able to positively impact on someone’s day. Traditionally, the visit to the servo was a ‘grudge purchase’, but my customers love going to Bowser Bean.

Eddy Nader, Managing Director, NPG Retail

What have been the highlights for NPG Retail over the past 12 months?

We took over an old Ampol site in Albion Park Rail in December last year. It’s rundown, so we’ll knock that over and hopefully in 12 to 18 months we’ll have a site that we’ll run there that is different to anything we’ve ever done before. It’s going to be a concept to more suit the semiregional area.

What will be your main priorities for the remainder of 2023?

Electricity and staff have been the two biggest issues for us over the past year. You have to start looking at where you can save, from the amount of refrigeration you have installed, the number of lights you have.

We’ve had to up the cleaning schedule of our solar panels from yearly to every six months, because as dust gets on the panels, the less effective they are. So now we’re cleaning them twice a year which is another cost, but the cost of cleaning the panels counteracts the amount of electricity you’re generating.

The cost of doing business in general has gone up. Our costs are going up and we need to work on higher margins to cover the costs. The suppliers’ costs are going up and they’re putting the costs on us but expecting us to work on the same margins. I think it’s a really tough time to do business.

What are the most important topics the industry should be discussing in 2023?

The cost of doing business I think is the biggest one. The cost to open your doors has skyrocketed, and the more our costs go up, the more our prices will need to go up and with the cost of living the way it is, where do you draw the line?

What does your crystal ball tell you about the future of convenience in Australia?

The crystal ball says we’re going to be part convenience store, part QSR, and part coffee shop. We’re going to be a little bit of everything all rolled into one. That’s why people at the moment are paying big dollars for convenience stores and service stations because we can be whatever we want. We are who we want to be. It’s not being dictated to us by the outside. We’re dictating what we want to be. It’s basically up to us. ■

“ I look forward to deepening my understanding of the national P&C industry and providing my perspective as an independent retailer and champion of convenience.”

– Haydn Tierney

“ The crystal ball says we’re going to be part convenience store, part QSR, and part coffee shop. We’re going to be a little bit of everything all rolled into one.”

– Eddy Nader

Tonik Nutrition is a sports nutrition brand, part of 100% Australian-owned and ASX-listed, Halo Food Co, Australasia’s largest Sports Nutrition manufacturer. With 25 years of local and international contract manufacturing experience, Halo is the go-to contract manufacturer for health and wellness products in Australia.

THE GREAT VAPE DEBATE

The Australian Government recently announced its most significant smoking reforms in a decade, imposing a ban on the importation of all nonprescription vaping products, including those that do not contain nicotine.

The new rules will see vapes only sold in pharmacies to those with a prescription, in ‘pharmaceutical-like’ packaging, with certain flavours, colours, and other ingredients banned, and with a reduced concentration and volume of nicotine.

An initial ban on the importation of nicotine vapes in 2020 created one of the biggest black markets this country has ever seen, with floods of illegal nicotine vapes making their way into the hands of retailers and consumers.

The 2023–24 Budget includes $737 million to fund a number of measures to protect Australians against the harm caused by tobacco and vaping products, including stronger regulation and enforcement of all e-cigarettes, including new controls on their importation, contents, and packaging.

Health Minister Mark Butler said that vapes are supposed to be pharmaceutical products and they must present that way.

“Vaping was sold to governments and communities around the world as a therapeutic product to help long-term smokers quit. It was not sold as a recreational product – especially not one targeted to our kids but that is what it has become.”

While there is no disagreement that getting vapes out of the hands of children is important, the government’s prohibition model is not the most effective way, says Dr Colin Mendelsohn MB BS (Hons), member of the Smoking Cessation Guideline Expert Advisory Group and founding chairman of the Australian Tobacco Harm Reduction Association.

“The government is cracking down to enforce its failed prescription model. However very few vapers are willing to get a prescription as this involves doctor and pharmacy visits and extra costs and inconvenience. Most will continue to get supplies from the black market, which will continue to flourish and sell vapes to kids.”

The Federal Government’s new vaping laws are an attempt to stop the importation of illegal nicotine vapes, but will it work, or will it go up in smoke? Asks Thomas Oakley-Newell.

Australian adults who currently vape, of which there are 1.3 million*, overwhelmingly purchase their nicotine vapes illegally through the black market, with 88 per cent doing so.

“Vapers have rejected the prescription model. Only eight per cent of vapers have a prescription and the remainder purchase supplies illegally. In a recent Roy Morgan survey, only 10 per cent said they would be willing to get a prescription if it was required. Under the new vape ban, most will continue to purchase vapes from the black market and some will simply return to deadly smoking,” explained Mendelsohn.

Overseas success

In all other western countries, including New Zealand, the UK, Canada, and the USA, vapes have been used as an effective tool for adults to quit smoking. No other country requires a prescription to vape legally.

“Vaping was legalised and regulated in New Zealand in August 2020. Over the next two years, the adult smoking rate fell by an unprecedented 33 per cent. In Australia, smoking has been declining by 1.7 per cent per year,” said Mendelsohn.

While vaping is not risk-free, explains Mendelsohn, it is far better than smoking.

“The UK Royal College of Physicians estimates that vaping long-term is unlikely to be more than five per cent of the risk of smoking. That is because switching from smoking to vaping results in a dramatic reduction in toxin exposure,

lower levels of toxic chemicals in the body and many health improvements. There may be harms that arise in the future from long-term use, but these are likely to be far less than from smoking.”

Theo Foukkare, CEO of the Australian Association of Convenience Stores (AACS), also pointed to the success of these international models and said that Australia is a global outlier in its approach.

“I feel that the government’s prohibition will continue to fail, which in turn will fail their budget, adult smokers trying to quit, and parents who don’t want their children having access to vaping products being supplied by the black market. Overall, there is a lot of failure around this bad policy.

“Either Minister Butler knows something that the rest of the developed world, that has regulated and controlled vaping, doesn’t, or he is simply not accepting of the mounting global evidence that vaping is now the most successful smoking cessation tool available on the planet, and restricting it will only drive the black market even more.”

The difficulty in putting the ban into place is not lost on Foukkare, who said it’s all well and good for the government to say that it will crack down at the border, however that is no easy task.

“I’ve spoken to numerous people in law enforcement about this and they all point to the futility of this because Border Force simply cannot search every single cargo container coming into this country.

“If that were the case, we wouldn’t have this problem now. You must stop the illegal supply chain by legitimising the existing demand. To think that you can simply prohibit something that is as mainstream in adults as this is, is incredibly ambitious and in our view, doomed to fail.”

Finding a balance

Regulation needs to find a balance between providing easy access to adult smokers to help them quit while reducing access to youth, believes Mendelsohn.

“The best way to achieve this is to sell vapes from licensed retail outlets as adult consumer products with strict age verification and severe penalties and loss of licence for underage sales. Vapes should be at least as easy to access as cigarettes and should be available wherever cigarettes are sold.”

While Foukkare recognises that there are some retailers within the P&C channel who have been illegally selling nicotine vaping products, he said that AACS is doing everything in its power to highlight these illegal operators to the relevant authorities.

“Anyone breaking the law needs to feel the full force of the law and should be hit with everything possible. Retailers breaking the law are most likely going to continue breaking the law, which ultimately means that they will continue to impact legitimate law-abiding retailers.” →

“ You must stop the illegal supply chain by legitimising the existing demand. To think that you can simply prohibit something that is as mainstream in adults as vaping is, is incredibly ambitious and in our view, doomed to fail.”

– Theo Foukkare, CEO, Australian Association of Convenience Stores

Foukkare believes that the focus in Australia should be implementing what works, which is strict adult consumer regulations similar to Australia’s approach to tobacco and alcohol.

“This isn’t a question of financial loss for retailers, but rather about establishing a successful strategy to dismantle the illicit vape market. It’s about prioritising effective policy over ineffective bureaucracy and an already strained healthcare system.”

Wider impact

A study by Octopus Group Research of current vapers shows that just 38 per cent believe the ban is a good decision, while 80 per cent believe it impinges on their right to make their own decision.

“It is clear to see that while there is sufficient cause for health concern and regulation, Australian vapers are sceptical of the Government’s motivation, think there are better ways of doing it and will not give up or transition to medicinal vapes easily,” said John Karathomas, Director at Octopus Group.

Pushing consumers into a prescription model will place undue stress on GPs in an already strained healthcare system as well as increased costs to the taxpayer, states Foukkare.

“We currently have a GP crisis in Australia, which has been widely reported. Getting access to a GP is hard today, and

the proposed policy will push all 1.3 million adult vapers into GPs, which would only make GP accessibility even worse. This would require an additional 5.2 million GP visits per annum, costing the taxpayer over $200 million per annum in the base Medicare cost per visit of $39.75 per visit.”

While GPs will be able to provide a prescription for nicotine vaping products without having to receive TGA approval, the difficulty and tediousness of acquiring a prescription could force those using vapes as a tool to quit smoking cigarettes back to the more dangerous alternative.

“There have been statements by many medical experts both from Australia and overseas that if the Federal Government’s ban does work and the black market evaporates, the likelihood is that consumers will turn back to deadly cigarettes. If this were to eventuate, it would be even worse than the current state of play.”

Media hysteria

The adage that ‘bad news sells’ is certainly true when it comes to media coverage of vaping, because why would media outlets focus on the good that vaping has done around the world at reducing cigarette smoking when it can examine a black market made out of a failed prohibition model in Australia?

Mendelsohn believes that the Australian media is hostile to vaping and has contributed significantly to the widespread misperceptions about it.

“Reports in the media are usually negative, often alarmist and frequently unbalanced. They tend to focus on the harms of vaping, which are often exaggerated, and rarely discuss the benefits.”

Foukkare agrees that mainstream media outlets are always hunting for the next headline to generate clicks and will therefore write stories that are alarming.

“Mainstream media has been caught up in the hysteria of a youth vaping crisis and what is included in unregulated vaping products, which are unsafe. They should be focused on developing a common-sense policy that balances the easy access for adults trying to quit smoking through vaping, eliminates the black market and enforces the law to ensure children don’t have access to these products either via illegal operators or online.”

One of the most alarmist pieces of information that the media report on is the topic of youth vaping, and that vaping is taken up by youth who were never smokers.

“A study by Pettigrew in Australia of 1006 15–30-year-olds, showed that 14 per cent currently vaped, 33 per cent had used vapes in the past, but less than one per cent who were never-smokers had vaped once or more in the past month.”

This data in Australia is similar to a study by the NHS in the UK of 11–15-year-olds, which showed that 87 per cent had never vaped, nine per cent had tried it, and only one per cent of never-smokers vape once or more weekly. C&I

The government is cracking down to enforce its failed prescription model. However very few vapers are willing to get a prescription as this involves doctor and pharmacy visits and extra costs and inconvenience.”

– Dr Colin Mendelsohn MB BS, Founding Chairman, Australian Tobacco Harm Reduction Association

Ellerslie Event Centre, Auckland

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THE PERFECT BLEND

P&C is perfectly aligned to take advantage of Australians love of coffee, but before retailers do so, they must ensure their coffee is up to consumer expectations, writes Thomas Oakley-Newell.

Australia is world-renowned for being a nation of not just coffee lovers, but coffee snobs. So as the petrol and convenience channel transforms from just a pit stop for fuel and snacks to a destination point, the transformation of its coffee offer must match the high expectations of consumers.

Following two years of declining sales during Covid lockdowns, the AACS State of the Industry Report 2022 revealed that hot beverages have bounced back with an increase of 17.4 per cent since 2021, bringing the total sales performance to $367 million.

This improved performance has been noticed by players in the industry, with Haydn Tierney, Managing Director of Bowser Bean, stating that his coffee sales continue to impress, and he has also noticed a 20 per cent increase in like for like sales this year.

“If you believe in your coffee, you need to sway your customers to also believe in your coffee. We do this by offering free coffee to new customers or regulars that do not drink our coffee. I often joke that ‘their first hit is free, then we own them’,” he says.

For Anthony Whartold, Head of Corporate Partnerships at Roasting Warehouse Speciality Coffee, he says that for today’s consumers a strong coffee offer is a must have.

“They’re expecting quality and consistency as a basic standard. There’s no room to not have it anymore if you want to have a strong food and coffee offer in your business.

“7-Eleven has educated consumers on being able to go into a P&C outlet to get a coffee, and even though it’s through a push-button machine, that knowledge has translated really well into the premiumisation of coffee from a barista perspective in P&C.”

Jeff Deeth, National Business Manager at Grinders Coffee, said coffee has always been a category that aligns well with the P&C channel, and with a continued focus on improvement, he sees this a real positive for both Grinders’ P&C partners and consumers.

“Australia is a nation of coffee lovers who rely on a great coffee to start their day or for a pick me up throughout the day. Having the right offer can help to drive foot traffic into the store and provide incremental sales opportunities. It can also help to build loyalty with existing customers.”

Consumers are starting to come around to the fact that the P&C channel now has the ability to create a hot coffee that rivals that of cafés, and Deeth thinks it is an exciting time for the coffee industry in the channel.

“Although we are seeing some impact from the increased cost of living pressures, consumer demand for quality coffee continues to grow in Australia. The P&C channel is well positioned to take advantage of the growth due to the convenience of the offer.”

Changing tastes

Gone are the days when full-cream milk is the only option available, consumers now expect a wide array of both milk and coffee variations available.

Deeth explained that as with the café market, there is a growing demand for high-quality, convenient, and customised coffee within the P&C channel.

“Customers expect to be able to get a great flat white or cappuccino, but we are also seeing increased demand for alternative milks as well as flavoured syrups and hot chocolates. There is also some increase in demand for iced or cold options.

“More and more we are also finding consumers are looking for sustainable and environmentally friendly options in terms of packaging (cups and lids) as well as ethically sourced beans.”

Eddy Nader, Director at Roasting Warehouse Speciality Coffee and Owner of Urbanista Café and Convenience, explained that he has noticed a massive shift towards alternative milks and that his stores now offer eight different types of milk.

“We’re appealing to eight different customers. In an expensive push button machine, you can only put two milks, but most are only one.”

Nader emphasised the importance of recognising your market and catering to the different tastes that each demographic might have.

“At our store in Condell Park, our third biggest selling coffee is our lactose free option because it is a highly populated Middle Eastern area, and Middle Eastern people predominantly like, or can tolerate, lactose free milk as opposed to full cream.”

Development in the quality of the alternative milks combined with a consumer trend of leading a healthier lifestyle, and education on the benefits of having a different milk, are among the reasons why more consumers are leaning in this direction. →

“ Australia is a nation of coffee lovers who rely on a great coffee to start their day or for a pick me up throughout the day. Having the right offer can help to drive foot traffic into the store and provide incremental sales opportunities.”

- Jeff Deeth, National Business Manager, Grinders Coffee

Whartold has noticed the quality of alternative milks has changed recently, with these milks tasting a lot better than they did previously and being created with coffee in mind.

“Manufacturers have improved the process of alternative milks and the quality of the product that they’re using to make them and then match them to Australian coffee profiles so that we’re not losing the taste of the coffee in the drink. Whereas before we might have had maybe an almond latte and it was overpowered by the almond milk. Now we’ve got alternative milk products that complement the coffee so that we get a balanced result in the cup.”

Maintaining quality

Quality hot coffee presents an excellent opportunity for P&C retailers to turn a consumer’s stop into a delightful experience, leaving customers with a positive association with the brand and fostering customer loyalty.

Tierney said that whether it is a barista machine or an automatic setup, the aesthetic needs to inspire confidence of a quality coffee. This involves teaming with coffee suppliers for the most appropriate equipment and ensuring the coffee setup is optimised for staff crew and customers.

“Once operational, the coffee machine area needs to be continually maintained so it is clean and presentable. Through interpreting a variety of cues in relation to how the coffee machine and coffee area is presented, coffee drinkers will decide before they have even drunk their coffee if their brew of choice will be preferable.”

Keeping the offer engaging for consumers is also very important, explains Whartold, and retailers can do that by having the offer visible even before consumers enter the store.

“Have strong messaging on the forecourt around the quality coffee offer. Have engaging staff because coffee is something that in most instances, you’re going to wait three or four minutes to be served, so it is important to have staff that can communicate well with customers while they’re waiting.”

When it comes to a barista coffee, which is often very personalised, it’s about ensuring the drinks are being prepared the way the consumer likes it, with Whartold explaining that this is all about de-risking the process to ensure that it’s simple for staff to make a delicious coffee.

“That’s where technology plays a part. We’re now seeing many more operators adopting stuff like automatic tamping systems, automatic milk steaming and texturing systems. So that the process of making the coffee is a lot more simplified and easier for people to do in that environment. Because we’ve got to remember they’re not necessarily employing baristas, they’re employing staff who need to multitask.”

But all stores are different, and Deeth explains that retailers must establish what system works best for them.

“There are a wide range of options available, from selfserve automatic machines through to a full espresso offer with skilled baristas. The ‘right’ offer will depend on many factors, which may include the demographics or the area, the space available, and the staffing requirements.

“Regardless of the offer, being in a visible and easily accessible location will help attract the attention of customers and encourage them to purchase, even if they are time poor.” C&I

“

Through interpreting a variety of cues in relation to how the coffee machine and coffee area is presented, coffee drinkers will decide before they have even drunk their coffee if their brew of choice will be preferable.”

- Haydn Tierney, Managing Director, Bowser Bean

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Swizzels Minions range hits Australia

With winter upon us and a chill in the air, we thought we’d lift our spirits with a fun C&I Choice for this issue – and what could be more fun than a Minions confectionery collaboration?

Swizzels, the trusted 95-year-old sweets brand that is much loved by Australians, has partnered with the Minions franchise to bring superior licensed products to market.

With Minions being the highest grossing animated film of all time, the Swizzels Minions Squashies 140g and Swizzels Minions Tropical Chew Bars 140g are sure to be a hit.

Bringing these two iconic brands together is a formula for success – in fact, the Swizzels Minions range in the UK was the most successful NPD launch in 2022, with the total Minions range worth £3.6m (AUD$6.8m).

Minions Squashies come in a Banana & Blueberry flavour and have a unique soft, squishy texture that is morish. A little bit of a mash up of marshmallow and jelly gummy texture and have an RRP $4.

The Chew Bars each contain different Minions characters making them fun and engaging for children and are RRP $4.20. The flavours include Mango & Pineapple, and Peach & Passionfruit.

Retailers should contact CTC Australia to stock the Swizzels Minions range, which is sure to drive confectionery category sales, with families young and old. Coming soon! Available 1 July.

V Energy unveils first full sugar launch since 2020

V Energy has added a taste of the tropics to its portfolio with the launch of its first full sugar NPD since 2020 – V Tropical Tang.

The colourful new addition to the V Energy line-up meets consumers’ love for fresh tropical flavours with a sweet explosion of guava, pineapple and berries.

V Tropical Tang is the first V Energy full sugar product to be released since the success of V Raspberry Lemonade in 2020. It joins the V Energy range, which includes V Original, V Blue, V Raspberry Lemonade, V Energy Sugarfree Original, V Sugarfree Blue, and V Refresh in Citrus Lemonade and Pineapple & Watermelon.

V Energy is driving market growth for the energy drinks category, and to continue this momentum, Chris Burgon, Frucor Suntory Oceania Sales Director Australia, says Frucor Suntory’s most popular beverage is committed to developing new, innovative options to meet evolving consumer tastes and preferences.

“Original and flavours are the biggest division of the energy drinks category. V Energy is driving category growth and has an amazing history of launching great

flavours, with the likes of Raspberry Lemonade the number one full sugar flavour launch in the last four years. By offering new innovations like V Tropical Tang, we will continue to drive excitement for new and existing energy drink shoppers,” he says.

“Tropical flavours are popular on a global scale, so this is a chance to not only give more choices to our existing consumers but to welcome new consumers in, with 80 per cent of new energy shoppers in the last year entering the category through the purchase of original and flavours*.

“Leading on the delivery of great tasting drinks that meet consumer needs is what Frucor Suntory is all about. It is just one of many things we’ll be doing across the year to support the growth of the category and ensure our fans have more great options to choose from.”

V Tropical Tang has been available in New Zealand from 1 May in a single 500ml can and in Australia from 15 May in both a single 500ml can and four-pack (4 x 500ml). The launch will be supported by a strategic OOH and social campaign to drive trial and awareness.

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DARK CHOCOLATE WITH PEPPERMINT FLAVOURED CREME & CRISPY MINT PEARLS

Wagalot: From humble beginnings to pioneers of pet treats

It’s been an amazing journey for Alice Needham and Philip Chaplin, Founders of Wagalot, the Melbourne based business, which considers itself as a pioneer in the pet treat industry.

The pair, who originally ran a beachside bakery (for humans) in Brighton, decided in 2010 to convert the store into Diamond Dog Food & Bakery, after noticing a huge increase in the numbers of dogs in the area that were accompanying their humans to the local cafes as part of their daily ritual.

“We realised that there needed to be something for the dogs as well,” explains Needham, so they set about teaching themselves all that they needed to know about making the most fun, cute treats for dogs. These included the Birthday in a Box, the DIY cakes kits for dogs, which have been the most successful product for Wagalot to date.

These days, Wagalot operates under a B2B model (with no direct sales to consumers) and manufactures a niche range of pet treats, which they call ‘Celebration Treats’, including DIY doggy cake kits and fun food boxes.

From 2010 until now, the business has achieved organic growth of around 15 per cent year on year, and due to increases in production, has had to relocate to larger factories three times.

“We realised early on that having one retail premises limited the number of dogs and owners that we could reach so we decided to start wholesaling our products,” says Needham. “Back in 2013, we got a break supplying seasonal products (Howl-o-ween and Christmas) to one of the major pet store groups and we have been supplying their Christmas products ever since.

“This required relocation to a larger premises, so we took the leap and moved to a factory in Seaford. We are now on our third factory – each move increasing our production capacity by more than 50 per cent.”

Today, Wagalot is ranged in more than 600 stores around Australia (including online stores). A majority of these are pet stores, but the business is also starting to break ground in independent grocery and convenience stores. Recently, Wagalot introduced a new product range specifically for the convenience channel called Must Love Dogs – a range of snack sized packs of coated and uncoated biscuits, which are currently being trialled in 47 convenience stores in NSW and Queensland. According to Needham, initial sales are proving very positive and there are plans for a wider roll-out later this year.

For more information visit wagalot.com.au

Dare Iced Coffee launches new 300ml format

Dare has expanded its range of iced coffees by adding a new miniature 300ml sized format of its popular Double Espresso and No Sugar Added Double Espresso.

The latest additions to Dare’s growing range have been created with the exact same recipes as their 500ml counterparts, and still feature the same Rainforest Alliance Certified Coffee beans and coffee ratio as regular Dare.

Adelle Cosgrove, Marketing Manager, Dare, said the new 300ml range is the perfect size to grab and drink while on the run.

“The exciting launch of this new product is part of Dare’s larger strategy to respond

to consumer demand and roll out more offerings in smaller pack sizes. This allows more options for Dare coffee drinkers, depending on their lifestyle,” she said.

“We’re proud to offer a new option in our iced coffee range that features the same quality Dare taste, without the café price tag. The smaller quantity replicates a standard takeaway size, so fits perfectly within Australia’s coffee culture scene as we aim to appeal to a new market of shoppers.”

Dare 300ml is available now across Australia (excluding WA and TAS). All Dare Iced Coffee products come in 100 per cent plastic bottles (excluding the cap and label).

A surprising new limited edition Twisties flavour hits shelves

Following a landslide victory in a nationwide vote, Twisties has announced the launch of its new limited edition Twisties Twisted Raspberry flavour.

During the month of January, Twisties lovers were given three choices for a new flavour to join the Twisties line-up, including Twisted Raspberry, Cheesy Bacon, and Cheeseburger. And in an unexpected turn of events, the Twisted Raspberry flavour received 6,000 votes, making it the clear victor.

Twisties Twisted Raspberry hit shelves on 1 May and will be available for a limited

time only, bringing a juicy, sweet, and sherbet flavour to the Twisties line-up.

Melanie Saluni, Twisties Brand Manager said it’s been a while since Twisties had called on its fans to help come up with a new flavour innovation.

“We were very surprised to see Twisted Raspberry come out on top of the fan vote so we can’t wait to hear what Twisties fanatics think,” she said.

Twisties Twisted Raspberry will be available for a limited time only to purchase from Coles and select P&C and independent stores.

“In bringing together not just Australia’s number one chocolate bar but our favourite white chocolate too, this exciting mashup, introduces a delicious addition to the KitKat range in Australia and lets fans enjoy their favourite break with a new milk twist.”

– Shannon Wright, Marketing Manager Confectionery, Nestlé

KitKat and Milkybar combine for nostalgic new creation

The collaboration combines the iconic crispy KitKat wafer finger with the creamy white chocolate of a Milkybar.

KitKat has collaborated with Milkybar to create a new but nostalgic take on two of Australia’s favourite chocolates.

KitKat Milkybar features the iconic crispy KitKat wafer finger, combined with the creamy white chocolate of a Milkybar.

Shannon Wright, Marketing Manager Confectionery at Nestlé, said they know both KitKat and Milkybar have loyal fans and they can’t wait to see what they think.

“In bringing together not just Australia’s number one chocolate bar but our favourite white chocolate too,

this exciting mash-up, introduces a delicious addition to the KitKat range in Australia and lets fans enjoy their favourite break with a new milk twist.”

The new collaboration is available in three formats – bar, block, and sharepack – with a RRP of $2, $5.50, and $5, respectively.

The 45g bar has been available at 7-Eleven stores nationally from April, the 160g block has been available from convenience retailers and supermarkets since 3 May, and the 154g sharepack is exclusively available now from Coles stores.

SHINE BRIGHTER

with LED signage and display screens

Chances are you’ve heard of LEDs a billion times. But do you know what LED really means and how it can be beneficial when it comes to boosting your content visibility through digital signage?

What is LED Signage?

An LED (light-emitting diode) is a light source that uses semiconductors to emit light when an electric current passes through it. LED lighting is known for its efficiency, range of colour and long lifespan, making them perfect for outdoor and night-time settings.

In digital signage terms, LED screen solutions are modular display systems that use surface mounted LED technology to display content that can be scaled to any size or shape. It’s said that the world’s largest LED display checks in at a whopping 500m x 32m, proving just how incredibly large you can go!

What are the advantages of LED when compared with LCD screens?

• Cost effectiveness: In situations where a large format screen is required (we’d suggest anything over 2m x 1m), LED technology becomes much more cost effective to install and run when compared to conventional LCD screens.

• Brighter output: The amount of light emitted by a digital display is measured in nits. The brightest LCD screen is around 3,500 nits whereas IP rated outdoor LED display screens can provide up to 10,000 nits of brightness, meaning that LED signage is much brighter and can be seen from hundreds of metres away, making it perfect for outdoor LED signage.

• Suitable for diverse weather conditions: With changeable weather, you need to ensure your signage is suitable for both rainy days and extremely hot days. Our outdoor LED range is made to last in Australian conditions with IP67 rated modules and cabinets protecting screens from heavy downfalls and aluminium module frames that do not warp in intense summer temperatures.

With screens of up to 10,000 nit brightness, and using our true black LED technology, your messages will be able to punch through in bright sunlight even in direct east or west facing locations.

• Flexibility and scalability: We already mentioned that LED screens can be customised and scaled to any shape or size, so it really does offer you the potential to do anything – even displaying a curved screen. Yes, you read that correctly. While traditionally LED modules have been manufactured on hard metal, rubber based LED modules are now available, providing you with the option to be super flexible – literally.

In what situations is it better to use LED screens?

• Larger format signage: Generally, when you need a screen larger than 2m x 1m in size, LED becomes the most effective option. Scalable modular design has no limits.

• Outdoors: Think window displays or digital billboards here. With IP rated screens and the bright output they provide, LED screens are often the best choice for outdoor or outdoor facing signage.

• Portable locations: POSTAR, our recommended digital version of a pull up banner on wheels is the perfect product for portability and is often used for conferences, exhibitions, welcome spaces, hotel foyers and car garages.

• Transparency: Transparent LED screens are see-through and are perfect for situations where you want to place signage in a window, but still want to retain the view and ambient light.

Of course, it’s not always the case that you will need LED screens. LCD screens can be more suitable depending on the use and purpose of the screen. If you’re not sure whether an LED or LCD solution is best for you, Fujivision’s friendly team will have a chat with you about your needs and will recommend the best option.

For more information on how you can use LED technology to bring your signage to life, get in touch with the friendly Fujivision team.

The magic is in the mix with Bhuja

Bhuja’s on-the-go range of better-for-you snacks has just hit the convenience channel, being ranged through bp and with more accounts on the horizon.

Bhuja is already a market leading brand within the grocery channel, with 31.9 per cent dollar growth in the latest quarter, according to National Sales Manager, Matthew Blake.

The range, which includes Bhuja Original Mix 50g, Bhuja Beer Mix 50g and Bhuja Ancient Grain Twists 40g, are a great grab and go size for car cup holders, and the single serve portions are a great impulse buy for shoppers.

“The brand is new to convenience in the new Bhuja on-the-go range with an opportunity to introduce convenience customers to a well-known and performing brand. Bhuja 50g Impulse is the perfect product for your customers coming in for a healthy energy boost,” says Blake.

But how does Bhuja set itself apart from other products in the better for your snack category? Blake says that “the magic is in the mix”.

“Bhuja is a much-loved Australian made and owned brand that believes a snack should spice things up,” he says.

“The magic is in the mix – the sweet, salty, and spicy notes hit your tastebuds all at once to give a unique and energising snack.”

Bhuja shoppers tend to be people who are health conscious and know their nutrition. Younger shoppers between 20 and 45 are the bullseye.

The RRP is $4 and the Bhuja range is available via Metcash/C-Store and The Distributors Group.

Nestlé Professional launches exciting new dessert mixes

Nestlé Professional has launched two new dessert mixes inspired by the iconic Nestlé brands, Milkybar and Aero.

The dessert mixes provide an easy way for restaurateurs, foodservice operators, or budding chefs, to easily create a range of fun desserts, from decadent sundaes to milkshakes, ice cream, cake, and mousses, with the nostalgic flavours of the Milkybar and Aero.

Nestlé Professional Oceania General Manager, Kristina Czepl said, the range of dessert mixes have a focus on quality and taste.

“By including much-loved brands like Milkybar and Aero on a menu, venues have a unique opportunity to increase interest in dessert offerings, simply by utilising these trusted brands.”

Both Milkybar and Aero dessert mixes are gluten free with no added colours or flavours.

The Nestlé Professional Dessert Mixes are available now from all major foodservice distributors or via the Nestlé Professional customer service team on 1800 20 30 50.

launches new Snickers Butterscotch flavour

Mars Wrigley has unveiled a new Snickers Butterscotch flavour, packed with roasted peanuts, chewy caramel, and a slab of butterscotch nougat.

The recipe was formulated and manufactured in Australia, at the company’s Ballarat-based Innovation Hub, marking the second locally developed Snickers flavour variant since Mars Wrigley returned the production of Snickers to Australia last year.

Richard Weisinger, Snickers Portfolio Director, said the new variant combines the flavour-powerhouse combo of chocolate and caramel with butterscotch.

“Butterscotch is proving to be incredibly popular with consumers, particularly when paired with chocolate and caramel. This makes it a decadently sweet and irresistible flavour variant for the Snickers brand and the perfect little indulgence.”

Snickers Butterscotch is available now via leading supermarkets, independent retailers and convenience stores for RRP $2.

gives away instant prizes

The Australian-owned and made brand Aussie Drops is giving customers the chance to win $200 with its instant win promotion.

Aussie Drops Eucalyptus 70g is Australia’s favourite eucalyptus drop, being a unique product that can sooth and refresh, and coming in a handy pocket-sized travel pack – particularly useful this time of year with cold and flu season upon us!

The 70g promotional pack is setting out to attract an audience of people between 16 to 30-years-old, with its unique long-lasting flavour. Each drop is handmade to perfection, Australian-owned, and a true Aussie iconic brand that generations of us have grown up with.

Currently, Aussie Drops is running an on-pack promotion, giving customers the chance to instantly win a $200 Prezzee voucher.

This is a first of its kind promotion for the Aussie Drops brand and comes at a time when cost of living expenses are at an all-time high, so an instant $200 Prezzee gift card will come in handy as it can be used across a variety of retailers, including Coles, Woolworths, Bunnings, Uber Eats, and more.

Aussie Drops Eucalyptus 70g has an RRP of $1.90 and can be ranged through CTC Australia.

THEO FOUKKARE CEO AACS

black market to celebrate

Illicit tobacco is at crisis point in Australia. Since 2010, illicit tobacco has grown rapidly, facilitated by a punitive tax regime that makes legal, taxed, and regulated tobacco products less desirable than those sold from under the counter.

Today, illicit tobacco accounts for one-in-four products consumed in Australia. By market share, it’s the biggest supplier of loose-leaf tobacco in the country. Sourced and sold by crime syndicates, demand for illicit tobacco is driven by cost. An illicit packet of cigarettes sells for less than a third of the cost of a duty-paid pack. And consumers who can’t or won’t pay for taxed tobacco products are driven into the arms of the black market, which operates a trade more profitable than the importation of cocaine, with a fraction of the risk of prosecution.

Illicit tobacco has driven many retailers to breaking point, where illegal operators move into communities to make a quick dollar at the expense of consumers, small businesses, and the broader community.

After nine consecutive above average weekly ordinary time earnings (AWOTE) wage growth excise hikes, retailers felt some relief last year when the government carried forward the Coalition’s pause on tobacco excise increases – a temporary pause we hoped might stem the bleed as wages caught up with excise. That was until recently when the Minister for Health and Aged Care, Mark Butler, appeared at the National Press Club to offer a wideranging discussion on healthcare policy in Australia. At the end of the Minister’s speech, he dropped a gift in the lap of the black market operators – a $3.3 billion excise increase in tobacco over the next three years.

Without an utterance of the illicit tobacco market, the Minister guaranteed the business model of organised crime for the next few years.

Curiously, the $3.3 billion tax hike matches almost exactly what was lost to the illegal tobacco market operators last year – $3.4 billion. That’s money that should have gone

to schools, hospitals, and infrastructure, but instead lined the pockets of black market operators. The Minister, in defending his tax grab, claimed that tobacco excise had to be increased because it has not kept pace with inflation. But that is fundamentally dishonest. Tobacco excise is pegged to wage growth, not inflation. And every Australian knows wages are not keeping pace with the cost of living.

When the Prime Minister, before the election, bemoaned that “everything is going up but your wages” he wasn’t lying. He just forgot to mention it would be by his own Health Minister. And let’s not forget, the promise before the election there would be “no tax hikes under a Labor government”. This is a tax hike – and it will hurt the poorest Australians. Just weeks ago, the Treasurer Jim Chalmers, commented on a $5 billion hit from black market tobacco and vapes. That’s a 30 per cent loss on projected excise collection from 2019-20 estimates to today.

But it wasn’t from smokers quitting. It was from smokers switching to illicit tobacco, and others to illicit vaping – an industry that’s been seized upon by the same operators who run Australia’s illicit tobacco market. It’s the same people, same profit motive and same criminal activity. In the wake of the Minister’s tax grab, some commentators feted his excise hike as a “$3.3 billion tax on tobacco companies”. But that is a fiction.

This is not a tax on tobacco companies; it is a tax on smokers and retailers.

And it will undoubtedly push more smokers into the black market, where the government sees none of the revenue and the black market continues to make obscene profits that sustain crime in Australian communities. I make two predictions of the Budget. Real excise collection will be down this financial year – following a decade of greedy tax grabs. And in three years’ time, none of that $3.3 billion will be in government coffers.

And to the Minister, black market operators will be forever in your debt. C&I

“ I make two predictions of the Budget. Real excise collection will be down this financial year – following a decade of greedy tax grabs. And in three years’ time, none of that $3.3 billion will be in government coffers.”

– Theo Foukkare

3.3 billion reasons for the

A $3.3 billion excise increase in tobacco will all but guarantee the business model of the illicit tobacco market in Australia, writes Theo Foukkare, CEO, AACS.

Introducing the C&I Podcast

Episode

In-store pick up or delivery, it’s your choice

Whether pick-up or delivery is better for your shoppers (and your profitability) depends on your retail aspirations and shopper preferences, writes

Recently I read an article where McDonald’s claimed that through McCafé, it sells one-in-four of all coffees sold in Australia. It claims to sell 600,000 coffees per day. Like many of you, I know their model well; pick-up, drive-through and delivery options, give shoppers choice. Many c-store retailers are also adopting this approach and I’d like to share my thoughts on in-store pick-up and delivery. The debate over whether it’s better to pick up or have food delivered has been around for years, but with the rise of more apps and services, it has become an even more significant question. Each option has its pros and cons, and ultimately, which one is better for you depends on your individual circumstances and preferences.

While you can use pick-up and delivery apps for more than food, for this article I’ll focus only on food.

One of the primary advantages of picking up food in-store, is that it is often the quickest and most straightforward option. Shoppers can place an order online (if your local store has the capability) and pick it up when it’s ready. This can be a convenient option if they are on the go or have limited time to wait for delivery. Additionally, picking up food can often save money on delivery fees, which can add up quickly, especially if shoppers order food frequently.

Another advantage of picking up food is that it’s often fresher than if it were delivered. When offering pick-up for food, shoppers can double check that everything ordered is there. Shoppers can also get it as soon as it is ready, without worrying about it sitting in a delivery driver’s car for an extended period. Additionally, picking up food in-store

gives the shopper the chance to interact with your c-store staff, which can be a fun and social experience.

On the other hand, food delivery can be a great option if shoppers want to enjoy food in the comfort of their own home. Delivery services like Uber Eats allow shoppers to browse menus and have food delivered straight to their door. This can be especially helpful if they have mobility issues, don’t have access to transportation, or simply don’t want to leave the house.

However, there are some disadvantages to food delivery. For example, delivery fees can quickly add up, especially if you order frequently. Additionally, delivery drivers may sometimes experience delays or make mistakes with their order, which can be frustrating. (I haven’t even touched on retailer commissions).

In conclusion, whether pick-up or delivery is better for your shoppers (and your profitability) depends on your retail aspirations and shopper preferences. If your shoppers are looking for a quick and easy way to get food, picking it up might be the best option for you to offer. However, if they want to enjoy your food in the comfort of their own home or are unable to leave the house, food delivery might be the better choice. Regardless of which option you choose, there are advantages and disadvantages to each, so it’s essential to consider your individual needs. What we do know, is that as we move as an industry towards selling more food, we’ll be facing different competitors.

Until next time,

Darren Park

DARREN PARK

CEO

United Convenience Buyers

“ What we do know, is that as we move as an industry towards selling more food, we’ll be facing different competitors.”

– Darren Park

Darren Park, CEO, United Convenience Buyers.

ANDREW POORE

General Manager Sales

Pacific Optics

The convenience store of tomorrow

We say this every year, but how quickly have the first six months gone? It has been a crazy start to the year.

In this first quarter, we have seen great trade events and have been lucky enough to encounter some very motivational and knowledgeable speakers. The consistent message among them was that the industry is excelling with the continued evolution of food to go, the focus on creating service stations of the future, and of course seeing how EVs could impact the industry.

In my last opinion piece, I referenced the idea of service stations of the future and how they could look. Ideas such as corner sites being the multi-purpose satellite destination for pick up, drop off and additional collection and/or distribution (the last mile hub) of new categories. Imagine being able to collect your dry cleaning, pharmaceuticals, parcels, alcohol, dinner, groceries, and fresh produce orders all from one location. I believe we are already moving in this direction but are obviously still in need of significant development. The service station of the future will be a multipurpose destination and the ultimate solution could evolve to co-locating and partnering with QSR brands to help drive consumer brand loyalty.

It wasn’t too long ago that the major grocery brands operated a proportion of the 7,000+ sites nationally. In May, we saw Coles depart the ownership of its Coles Express retail banner (sold to Viva Energy). This has left a small proportion of grocery branded offers within the channel. Recently, we were advised that Viva and OTR will become one banner (subject to foreign investment review board and ACCC approval) taking that group upwards of 900 sites.

7-Eleven has also announced that it is targeting to have more than 1,000 sites by 2030, as well as more pop-up

stores. These two large and successful retailers will have a major impact on the evolution of the channel, particularly surrounding food, where both already excel.

The channel has delivered $10.1 billion in retail sales this year, up 7.4 per cent. Yet, a proportion of that is seen to come from the ever-inflating cost price increases that the supplier world has been hit with. With increases including commodities, overseas manufacturing, supply chain and local staff cost. We need those additional retail dollars from elsewhere, especially as tobacco continues to decline another three per cent in the year. The evolutionary list above will help us continue to see significant growth as the industry adds more of these features.

Over the years, I have been known to love ‘gas guzzlers’, owning many V8s and have used a large amount of 98 octane fuel. Finally, last month, I decided to see what all the fuss was about within the world of EVs and made the transition to the quiet car world. I now understand what they call ‘range anxiety’ and the importance of charging stations. EVs have come to represent 3.1 per cent of all cars purchased in 2022, up one per cent since 2021. Despite this still being a small proportion of road vehicles, they seem to be being overlooked by some retailers.

My preference is to fast charge at a service station and experience the many wonders of our industry’s retail shop. You can purchase a barista coffee, freshly made gourmet sandwich, a mobile phone charging cable, as well as a dinner to take home. Why wouldn’t you want that EV driver stopping at your store for up to 40 minutes? Especially when you think of how the service station of the future could look.

Remember that my favourite saying is ‘convenience is convenient’, so let’s help our consumers. C&I

ANZ

“ Remember that my favourite saying is ‘convenience is convenient’, so let’s help our consumers.”

– Andrew Poore

Andrew Poore shares his thoughts on the convenience store of the future and how we as an industry can continue to evolve.

International spotlight: A Texan triumph

Asense of state pride is behind Kwik Check’s recent rebranding to Texas Born Stores (TXB), with a renewed focus on fresh local food and its Texan roots.

Founded in 1972 as a fuel wholesaler selling to convenience stores, the business took a somewhat fortuitous leap into operating its first convenience store in the mid-80s, when one of its customers couldn’t pay what they owed for fuel, so Kwik Check (now TXB) took over operations.

Fast forward to present day, and the company now operates 51 sites across Texas and Oklahoma, and is fully owned by CEO Kevin Smartt, who decided a rebrand was on the cards.

In 2017, Smartt looked at the business and wondered how he and TXB could effectively differentiate and compete with other businesses in the future of convenience stores in the US.

“We’re all buying really good pieces of dirt. We’re all building nice buildings, but we’re all kind of selling the same thing. We’re selling Coca-Cola and Snickers and all the same products. What’s my advantage? It led me down this pathway of really wanting to create a new brand, a new concept that was really authentic to most of my consumers and to myself.”

Smartt wanted something that had the ability to have a real connection with his customers in the communities that the business operated in. Having moved around Texas a lot as a child, Smartt had a real appreciation for the state and its diversity and its difference from city to city and region to region.

“I thought the name fit who I am, our company, where we operated, and to our customer base.”

Taking the idea of the rebrand to the senior team members, executives, and partner at the time, Smartt was expecting at least some resistance on the idea.

“I thought for sure one person in the group would push back and go, ‘Oh, we shouldn’t do it’. But not one person did. They all said ‘It’s a no brainer! We can do it’. So that’s where we launched from. And at that point it took off.”

Big aspirations

With the idea receiving full support from the team, now came the tricky, and expensive part, of rebranding the entire business.

“You go okay, we’re going to rebrand, what comes first? Do the signs outside come first? Or do you start doing uniforms and cups in the store first? Or does the promotional signage come first? Because it’s almost impossible to get it all to land at every store at the same time. So, you’ve got to make a decision on what the transition is going to look like.”

A decision was made to first change some of the core elements inside the store, from fountain cups and coffee cups to the food concepts and all the brand packaging, finally completing the core interior elements with the uniform changes.

“Now we’ve started rebranding the stores, which can mean just paint and signs, or it could mean a full gut and remodel to change the whole concept of that store. And that’s a huge process.”

Last year, TXB managed to fully rebrand 12 stores, besides the new ones that have been built.

“It was a huge process for us to get that much done in a year. But now, essentially every store is TXB, but not every store has the full image right yet. It just takes that much time to get everything done.”

With such a large investment into the rebranding, Smartt said it is important for himself and the TXB team to “tell themselves the truth”, which means taking time to step back and review the changes and work out what is and isn’t working and if they should change anything.

“We’re looking at our return on investment from the remodel, should it be as big as it is? Should we scale it back some? We’re constantly in that learning process of thinking about the brand, developing the brand, and we even do that at the new stores.

“I was recently at a brand-new store that we’re about to open, and I was walking the store with the person who’s going to be the store manager, and I said, ‘Tell me in this store already, things that

They say everything is bigger in Texas, and that’s certainly true regarding the passion and commitment that Texas Born Stores (TXB) has for its state, writes Thomas Oakley-Newell.

you see that we should think about modifying in our new builds as we go forward’. And there were three or four things that were good catches that he was like, ‘I think you should think about this’.”

Future growth

TXB has impressive plans of continuing its expansion at an initial rate of five stores a year, with the goal of reaching 10 new stores a year.

“Our goal is to build a pipeline of properties and so our goal is to be opening a new store every two and a half to three months. It just should be like clockwork, where we stage them out, we get them permitted, we start the construction, and every two to three months we’re opening.”

Alongside the rapid expansion, TXB has a set of core values – authenticity, hospitality, and integrity – and a belief and desire to help the communities in which the new stores are being built.

“At our heart, we want to leave our customers, our communities, and our employees better off than before they knew us. That’s our goal. So, as we kind of go through this journey of building this brand, this company, that should be our mission. Whenever we go into a town, we leave those people better off than before we were there.”

Having a brand with heart is important to Smartt, but equally important is the quality of the offering.

“We do everything fresh in the store. You walk in, you see our kitchen, you see us cooking the meat on the grill, whether it’s chicken or beef, fish, whatever it is, we’re cooking it on the grill. We’re cutting up the veggies, we’ll cook them or they’re fresh. We got our ovens back there. We’re baking the breads and the biscuits and things like that. Our tortilla gets pressed in front of you, cooked right in front of you, and walked down the line.

“The smell, the cook, the look, everything is there. I don’t know any convenience store chain that’s doing that. It’s super labour intensive, but I don’t think anybody can do the quality of food that we’re doing in the convenience store business because it’s so fresh.”

C&I

“At our heart, we want to leave our customers, our communities, and our employees better off than before they knew us. That’s our goal.”

– Kevin Smartt, CEO, TXB

Milkrun is back and newly powered by Metro

In a turn of events that has delighted consumers all over social media, Milkrun is back, but not in the same way as we knew it.

The grocery delivery platform announced suddenly last month that it would be shutting down and made roughly 400 staff across Sydney and Melbourne redundant. At the time, Founder of Milkrun, Dany Milham, said the closure was due to “worsening economic conditions”.

But it has been resurrected all thanks to Woolworths, which has purchased the Milkrun brand to replace its current Metro60 branding. The deal will see the back-end operations of the Metro60 offering remain unchanged in terms of orders being fulfilled from Metro stores and delivered by Uber –but the brand will be operating as ‘Milkrun now powered by Metro’.

Brad Banducci, CEO, Woolworths Group, said Woolworths has long admired Milkrun’s innovative brand, dedication to customers and ambition to shake up the grocery delivery model.

“We are thrilled that the Milkrun story will continue to live on and thrive with Metro60 relaunching as Milkrun now powered by Metro.

“Orders will be fulfilled from our network of Metro stores which will give customers the choice of over 10,000 product lines including hot roast chickens, fresh sushi and much more. “Existing Metro60 customers will notice the app has been rebranded to Milkrun now powered by Metro and the current functionality of the app remains the same. There will be a flat $5 delivery fee and zero service fee. Additionally, Milkrun now powered by Metro has a current promotion where there will be no delivery fee on a new customer’s first three orders. Everyday Rewards members will also earn Everyday Rewards points with every purchase.

Orders will be fulfilled via the current Metro60 model, which uses third party couriers and achieves an average delivery time of 33 minutes.

Milkrun now powered by Metro is available in more than 500 suburbs across Sydney, Melbourne, Brisbane, Canberra and the Gold Coast.

Milham, Milkrun’s Founder, said: “Milkrun pioneered rapid grocery delivery in Australia, and I’m pleased to see the brand continue in Woolworths hands.” C&I

7-Eleven Australia puts 750 store convenience chain up for sale

Australia’s largest private fuel and convenience retailer 7-Eleven Australia has put its national network of around 750 stores up for sale.

The sale is for 100 per cent of the Australian business, which has been enjoying a period of growth over the past few years, entering new markets including North Queensland and regional areas in NSW, Victoria, and Western Australia.

The business has also been investing in its food offering, kicking off a trial of the new Johnny’s Deli food on the go concept in Melbourne last year.

In 2022, 7-Eleven celebrated 45 years of operation in Australia, with the Withers and Barlow families having opened their first store on 24 August 1977 in Oakleigh, Victoria. The business opened its first 24-hour store just six months later in Brunswick, Victoria.

Since then, 7-Eleven has grown to operate more than 750 stores across Victoria, NSW, ACT, Queensland, and Western Australia. The business processes around 250 million transactions each year and supports the employment of more than 9,000 people across the corporate and franchise network.

Commenting on behalf of 7-Eleven’s shareholders, Russell Withers said it was the right time for ownership of the business to change hands.

“The Company has made significant progress in recent years on a number of fronts and is performing well under a highly credentialed management team, with an exciting outlook for growth.

“As such the Withers and Barlow families have decided that the time is right to review options for the future ownership of the business with a view to setting it up for future growth and success.”

Michael Smith, Chairman of 7-Eleven Holdings, highlighted that 7-Eleven has an unrivalled brand and convenience footprint in the attractive fuel and convenience market in Australia.

“The business has great momentum and a compelling strategy for growth across convenient food, the continued transformation of our total merchandise offer, digital and format innovation, and new stores. With such a strong platform in place, the shareholders have decided that the time is right for new ownership of the business to oversee the next phase of our growth and development.

“Across our network of stores, it’s business as usual and our focus is on our customers and being the first choice in convenience retailing in Australia.”

The sale process is at an early stage and is expected to take a number of months. C&I

Viva Energy acquires OTR Group from Peregrine Corporation for $1.15bn

Viva Energy has acquired the OTR Group from the Peregrine Corporation in a $1.15bn deal that is expected to make OTR the leading retail convenience brand in Australia.

The merger will amalgamate OTR, Smoke Mart & Gift Box (SMGB), and the Wholesale Fuels businesses into Viva Energy’s Convenience & Mobility business, creating a network of more than 1,000 convenience retail outlets, including Coles Express, and Liberty Convenience.

In September last year, Viva Energy acquired the Coles Express network of 710 sites, and at the time announced plans to phase out the brand over the next 3.5 years.

The plan is to combine the best of the Coles Express and OTR digital and loyalty offers into one compelling customer proposition. The OTR digital platforms provide customers with fuel, QSR and convenience rewards and discounts, which supports higher sales through cross-selling convenience and fuel products.

Viva Energy’s CEO and Managing Director, Scott Wyatt, said the acquisition is transformational for Viva Energy and that OTR will become Viva Energy’s flagship convenience brand.

“The introduction of OTR’s superior convenience offering, including quick serve restaurants, will help revolutionise the diversity and attraction of our retail offering,” Wyatt said.

“As our stores increasingly become retail destinations, we expect convenience earnings will grow and reduce our dependency on traditional fuels.

“OTR outlets offer an attractive and welcoming store environment, supporting increased dwell time, which is likely to be a key factor in successfully introducing electric vehicle recharging facilities over time.”

The integration of OTR into the Viva Energy Retail and Coles Express networks is expected to drive synergies of approximately $60 million per annum, to be realised in three years, through cost and efficiency improvements, supply chain procurement, operations, technology systems and marketing.

Wyatt said that over the past three decades the Shahin family has built OTR into one of the most successful integrated convenience and fuel offerings in Australia.

“We are excited about the opportunity we have to take this proud South Australian business and brand nationally and are pleased to have Yasser Shahin work with us as we commence this journey,” he said.

“We also look forward to welcoming approximately 6,500 OTR team members to the Viva Energy business, learning from them and working with them to lift the standard of convenience retailing in this country.”

OTR Founder, Yasser Shahin, said expanding OTR’s iconic South Australian brand Australia wide delivers on several core objectives that have underpinned the business since its inception.

“This transaction delivers the realisation of the vision I have always had, and vigorously pursued; to see OTR become national, to be the leading convenience brand in Australia and to remain true to our roots and based in Adelaide.

“The coming together of one of Australia’s best retail networks with one of Australia’s leading convenience offerings has enormous industrial logic,” he said.

“I will continue to support the business following completion of the transaction, and the entire team and I are completely committed to the successful integration of these businesses. The Shahin family is committed to continuing to see Adelaide as the home of OTR and Viva Energy have provided for the realisation of a larger, enhanced OTR to continue to be headquartered here.”

Shahin will be retained by Viva Energy to support the existing OTR Group and transition the business to Jevan Bouzo, Viva Energy’s CEO of Convenience & Mobility. Their combined priorities will be to integrate the businesses, build the operating structure, further develop the OTR network, test formats for deployment into the Coles Express network and realise synergies.

The transaction involves a combination of cash and shares that will see the Shahin Family become a major shareholder of Viva Energy Australia.

The Shahin family’s ownership of the Peregrine Property, Construction & Development (PCI) and Motorsport (The Bend) divisions will remain unchanged, and the OTR Group will remain headquartered in Adelaide.

From 1 July 2023, Viva Energy will assume a 10-year sponsorship of The Bend Motorsport Park, which will include naming rights of the venue, further illustrating an alignment between the two brands and Viva Energy’s commitment to South Australia.

Completion of the transaction is expected in the second half of 2023 and is subject to ACCC approval. C&I

“ This transaction delivers the realisation of the vision I have always had, and vigorously pursued; to see OTR become national, to be the leading convenience brand in Australia and to remain true to our roots and based in Adelaide.”

- Yasser Shahin, Founder, OTR

Metro Petroleum draws record attendance to 2023 Trade Show

Metro Petroleum hosted its 2023 Trade Show drawing record attendance from franchisees and suppliers.

More than 90 per cent of Metro’s network of franchisees gathered to share knowledge, insights, and to hear some exciting updates from the Metro head office team, including the announcement of an exciting new partnership with Afterpay.

Elie Dib, National Sales and Retail Manager, Metro Petroleum, said that the common message from the day was about constant improvement and “being better than we were last year”.

“It’s not about necessarily being the best,” he explained. “We’ve improved remarkably from where we started with our

Trade Show in a car park less than 10 years ago to where we are today, with proper booth set ups for our suppliers, and the largest attendance of our franchisees this year. For us, this is a huge step up.

“What we hope to achieve through these Trade Shows is to build a better and stronger relationship between our suppliers and our franchisees. These events enable face to face engagement between the two while also informing them and keeping them up to date.

“This year, saw our biggest representation of attending franchisees along with more than 46 companies showcasing more than 90 products at our Trade Show, so we’re very happy with how successful the day was.” C&I

7-Eleven celebrates

7-Eleven gathered in Melbourne in April to celebrate its supplier partners at the 2023 ‘Our Partners Our Futures’ event.

The ‘Our Partners Our Futures’ event was an opportunity to share 7-Eleven’s ambition and the strategic focus areas that are going to be a major part of the company achieving its target of a billion customer moments by 2030.

Attending supplier partners heard from 7-Eleven CEO and Managing Director Angus McKay, Executive General Manager – Product, Matt Keogh, Head of Merchandise Rob Kirby, and Head of Food, Emma Metcalf-King, before being given the opportunity to experience interactive zones focused on microformats, sustainability, food, and various elements of supply chain and merchandise management.

Keogh says that the event was an opportunity to connect with supplier partners and share more about the opportunities to grow together.

“It was fantastic to get together in person for the first time in a number of years to share our strategy with suppliers. We appreciated them taking time out of their day so that we could bring to life some of the initiatives we believe are going to provide sustainable benefit across our stores, our business, and for our supplier network in the future,” he said.

“The chance to gather together to connect and say thank you for their contribution was also really important to us.”

The event ended with the 2023 7-Eleven Supplier Awards, which saw a range of supplier partners across merchandise and support services recognised for their extraordinary contribution to the 7-Eleven business.

“Congratulations to all of our finalists and winners. They have made a significant contribution to our success over the past year, and we are pleased to be able to celebrate their efforts.

“On behalf of the business and our entire team, I would like to thank all of our supplier partners. We can’t continue to grow, innovate, and provide an offer that makes our customers’ lives easier without their support.” C&I

2023 7-Eleven Supplier Awards Winners

Supplier of the Year: Winner: Frucor Suntory

Finalists: Red Bull, Ueshima Coffee Company

Service Provider of the Year: Winner: Blue Connections IT

Finalists: BCG, Clifford Signs

Customer Experience Excellence: Winner: PHD Media

Finalists: Melbourne Food and Wine Festival, The Taboo Group

Sustainability Excellence: Winner: Our Most Sustainable Coffee Ever – Ueshima Coffee Company, Fairtrade Australia & New Zealand and BioPak

Finalists: Simply Cups Program – Closed Loop, 7-Eleven Hot Chockee – Nestlé

Supply Chain Excellence:

Winner: Asahi Lifestyle Beverages

Finalists: Coca-Cola Europacific Partners, Sanitarium

Fuel Supplier Excellence:

Winner: Monaro Fuel Haulage

Finalists: Kalibrate, Mobil

Account Manager of the Year:

Winner: Stavroula Drakos – Patties Foods

Finalists: Derryk Kane – Sanitarium, Lauren Daniels – Red Bull

Best New 7-Eleven Product Launch:

Winner: 7-Eleven Puff Pastry Bakes from The Outback Pie Co

Finalists: 7-Eleven Smoothies from Fresh Blends Australia, 7-Eleven Sweet Food on the Go from Allied Pinnacle

‘Our Partners Our Futures’

THE DISTRIBUTORS

‘THRIVE’ CONFERENCE

The Distributors held its ‘Thrive’ National Conference and Trade Show recently against the stunning backdrop of Port Douglas, Queensland.

Delegates were greeted with a Welcome to Country and Smoking Ceremony performed by a local elder

George Tsapoutas, CEO, The Distributors

Jacqui Cooper, Olympic Aerial Skier

Jeremy Ly and Rich Craven, Remedy Drinks Noelene & Neville Wenban, IVMOA

Theo Foukkare, CEO, AACS

Michelle, Brady and Trevor Allison, Central Coast Confectionery

The first evening’s welcome drinks and a dinner were sponsored by Mondelēz

More than 200 delegates made their way to the Sheraton Grand Mirage in Port Douglas, Queensland, to network, learn, create new experiences, and have some fun at the 2023 The Distributors ‘Thrive’ Conference.

Members, customers, and suppliers of The Distributors were greeted with a Welcome to Country and Smoking Ceremony performed by a local elder, followed by welcome drinks and a dinner sponsored by Mondelēz, where attendees were also treated to a thought-provoking presentation from Gus Balbontin.

Day Two began with an optional Mind Movement activity sponsored by Shine followed by the opening of conference sessions.

The theme of ‘Thrive’ was prevalent from start to finish, during the business sessions, each with their own take away messages for delegates to apply to their own businesses.

The business sessions began with George Tsapoutas, CEO, The Distributors, providing an update on the group’s performance over the past 12 months. Tsapoutas highlighted that the group continues to deliver significant volume growth across all core categories of snacking, beverages, and confectionery, and across all states and territories.

Theo Foukkare, CEO, AACS, then shared insights from the recently released 2022 AACS State of the Industry Report, highlighting the strong growth of the convenience channel delivering more than 7.4 per cent growth.

Foukkare provided insights into the huge growth being delivered in the Food and Beverage segment, now accounting for 53 per cent of total shop sales and growing at more than 16.4 per cent. →

Hassan Kowaider CTC, Frank Byrne, Steve Hare, Accredited Distributors, Jodie Bailey, Lisa Pushkin, CTC

Tony Mcintosh, Lyle Baker, Sylvia Nikkelson, The Distributors Brisbane

The Distributors ‘Thrive’ Conference was hosted at the picturesque Sheraton Grand Mirage in Port Douglas, Queensland

Wesley Thomson Sanitarium, Karen Campbell and James Ketley, MyBrandz

Guests arriving at the THRIVE & Refresh Dinner

“ We have been elated by the feedback from customers, supplier and warehouses following the truly outstanding conference this year and look forward to thriving through until the 2024 event.”

– Andrew Johnson, National Merchandise Manager, The Distributors

Foodservice had its sixth year of strong double-digit growth as retailers continue to invest in their offers, growing at more than 21 per cent and contributing almost $1.2 billion in sales.

Packaged beverages also had a strong year growing at +16.4 per cent, which was driven by the energy category, up +26 per cent and now accounting for 33 per cent of total beverages.

Karen Campbell from MyBrandz Software shared information about the soon to be launched new App, My BrandzX – a customised retailer ordering system that is integrated into member warehouses to make ordering more streamlined and give time back.

Closing out the business session was Australia’s very own Olympian and World Champion Aerial Skier, Jacqui Cooper. Cooper represented Australia in the sport of Aerial Skiing for 20 years, and she shared her story from the young age of four, and the wild 10-year plan that she followed to become a world champion.

Cooper shared all the highs and lows from her epic career, and how she wouldn’t have been able to achieve all that she did without an unwavering belief in herself and her abilities. She said the key to winning is to learn to eliminate the noise around you, stay committed and dedicated to your goals irrelevant of obstacles that are thrown. Her story was truly inspiring and left all delegates ready to tackle any challenge ahead.

The ‘speed dating’ style of the trade show returned this year following its successful introduction in 2022, giving suppliers the opportunity to sit down with customers and explain their product in depth.

The third and final day began with an optional activity of a Rise and Shine walk through Port Douglas to watch the sunrise over the ocean. This was sponsored by Tonik, with Lisa Schilling-Thomson and Cheryl O’Brien from Halo Food Co guiding the way.

The final night was The Distributors Cane Cutters Ball and Awards ceremony held in a hauntingly spectacular setting, nestled in a rainforest, in a vast cane field. Here, The Distributors gathered to celebrate Member, Supplier and for the first time Sales Representative of the Year.

As guests arrived by the coach load, they walked down the path unsure of what to expect, they were delighted to find a tropical paradise festooned with lights for predinner drinks and canapes.

As the sun set over the cane field, with the band singing on the back of a ute, the night kicked off with a fantastic fire display lighting the cane vats, to the final crescendo of illuminating THRIVE! alight with flames.

Once guests moved into the grotto, guests gasped at the oasis they found as they made their way to their seats and settled into a night of formalities and frivolities.

Brett Barclay opened the evening, as MC Des Dowling took us through the awards evening, which culminated in the true highlight of the evening – Sales Rep and Member of the Year awards – all while enjoying delicious food and Aussie music stylings throughout the evening. Guests made their way back to the hotel for the Red Bull After Party, celebrating until the wee hours of the morning. C&I

The Distributors Cane Cutters Ball and Awards Ceremony was held in a vast cane field

Guests walking through the cane fields

Emma Scott, Donna Adams and Carly Neubauer

Ampol reports second strongest quarterly results in its history

Ampol has recorded the second strongest quarterly results in its history, with earnings rising to $345.4m, up 82 per cent on the prior corresponding period.

Group total fuel sales volume was up 50 per cent compared to the same quarter in 2022, with Australian fuel sales volume growing by 14 per cent, the addition of Z Energy sales volume, and beneficial timing of inter national third-party spot sales. The Lytton Refiner Margin (LRM) of US$14.90 per barrel for the first quarter, remains above historical levels.

Convenience retail had a successful quarter as customers continued to respond positively to the Ampol brand. Headline retail fuel sales volume increased by 2.8 per cent, 5.4 per cent on a like for like basis, and average retail fuel margins improved.

Shop sales also continued to perform well up 0.8 per cent on a like for like basis and further improvement in shop gross margin (post waste and shrink), reflecting the ongoing benefits from the retail shop strategy.

For Z Energy, 2023 will be the first full year of contribution, but during the first quarter, New Zealand was impacted by extreme weather events with heavy flooding in Auckland during January followed by the impacts of Cyclone Gabrielle on the east coast of the North Island.

Z Energy saw improved trading in the month of March as operating conditions stabilised. Fuel sales volume was up 20 per cent on the prior corresponding period, which was Covid affected, and consistent with the growth in market share to 46 per cent.

Study proves feasibility of gas to hydrogen pipeline conversion in WA

Laboratory testing by Australian energy infrastructure business APA Group has confirmed the technical feasibility of converting a 43km section of the Parmelia Gas Pipeline to carry 100 per cent hydrogen.

The section of the pipeline being considered for conversion runs between the Kwinana Industrial Area and the Alcoa Pinjarra Refinery.

The testing was conducted as part of APA’s second phase of research into converting the section of pipeline and was partly funded with $300,000 from the WA Government’s Renewable Hydrogen Fund.

Roger Cook, State Development, Jobs and Trade Minister, said that the Parmelia Gas Pipeline Hydrogen Conversion Project has the potential to be Western Australia’s next big renewable hydrogen first.

“The study will help in re-purposing some of our existing gas pipeline infrastructure for use in future hydrogen transmission,” he said.

“The project is a prime example of how funding from the WA Government is helping to ensure that the State reaches its potential and becomes a renewable hydrogen powerhouse.

“The McGowan Government is investing in projects across the renewable hydrogen supply chain to support Western Australia’s emergence as a significant producer, exporter and user of the clean energy source.”

The WA Government is investing more than $170 million to accelerate the growth of Western Australia’s renewable hydrogen industry and meet the commitment to achieve net zero emissions by 2050.

The pressurised hydrogen testing was undertaken at Australia’s first dedicated hydrogen test laboratory at the University of Wollongong, in partnership with the Future Fuels Cooperative Research Centre.

The next phase of the project will consider preparing the pipeline for hydrogen service, including detailed conversion plans and safety studies, while continuing to investigate potential supply and offtake opportunities.

Mines and Petroleum Minister Bill Johnston, said the results from APA’s pressurised hydrogen testing on the Parmelia Gas Pipeline is great news for the State’s renewable hydrogen industry and its transition to a sustainable, net zero economy.

“Western Australia has a vast gas pipeline network. Hydrogen blending into natural gas networks to support decarbonisation is a strategic focus area for the WA Government.

“Progress continues to be made on a Renewable Hydrogen Target for Western Australia, which will aim to drive local demand and assist emerging hydrogen production projects.”

Because What’s Inside Matters!

The Clereflo™ Range of Oil Water Separators by Envirotank

Ü Clereflo™ forecourt and full retention separators.

Ü Third-party peer reviewed and certified by UniSA as exceeding BSEN-858 compliance.

Ü Suitable for use in all Australian conditions.

Corrosion-Proof Fibreglass Underground Storage Tanks

Ü Envirotank double-wall tanks are fully compatible with all modern fuel types including alcohol blends and low sulphur diesel.

Ü Double-Walled Envirotanks fully comply with the secondary containment requirements of AS 4897. This is in addition to the design meeting AS 1940 and UL 1316.

Ü Two (2) 100% corrosion proof and structural walls provide the ultimate in leak protection.

Ü The Hydroguard® System is a proven hydrostatic testing system that continuously monitors the integrity of the inner and outer tank walls in all installed conditions.

Coles Express to use AI-led targeted media across network

Shell Coles Express has signed a multi-million-dollar deal with Qsic to provide AI-led targeted media across all 710 stores.

Ampol and ENEOS Partner to Explore Advanced Biofuels Production in Queensland

Ampol and ENEOS have announced the signing of a Memorandum of Understanding (MoU) to explore the production of advanced biofuels at the Lytton refinery in Brisbane.

The parties have also executed a separate MoU with the Queensland Government and will continue to engage with the state as work progresses to discuss investment and project development as part of the Queensland Biofutures 10-Year Roadmap.

Ampol and ENEOS will jointly explore the feasibility of delivering an advanced biofuels manufacturing facility with the capacity to generate up to 500 million litres of sustainable aviation fuel (SAF) and renewable diesel annually.

Initial work will consider the use of agricultural, animal, and other waste feedstocks prevalent in the Queensland market and seek to leverage the use of existing refinery manufacturing and distribution infrastructure to produce biofuels for domestic use and for the export market where possible.

The project will leverage each company’s strengths, bringing Ampol’s existing refining and distribution infrastructure and knowledge about Australia’s aviation and broader transport fuels market, together with ENEOS’ expertise in refining technology, energy transition and leadership in the Japanese aviation and broader transport fuels market.

Ampol’s Managing Director and CEO, Matt Halliday, said Ampol is committed to supporting the development of a biofuels value chain in Australia and to partnering with likeminded organisations to help drive innovation in future energy.

“Biofuels and synthetic fuels have an important role to play in energy transition, particularly in hard to abate areas such as aviation, and heavy industrial sectors like mining. These are important market segments for Ampol. As we continue our

work to build new solutions for customers, we are excited to partner with a global leader like ENEOS to further assess opportunities to repurpose our existing infrastructure and build new supply chains.”

ENEOS’ Representative Director, President, Saito Takeshi, said ENEOS looks forward to contributing to decarbonising the aviation industry in the Asia-Pacific region, including Australia and Japan, through the realisation of value chains and stable supply of biofuels, especially SAF.

“We are honoured to work with an excellent company like Ampol to jointly consider the best way for SAF production by together bringing the best out of Australia’s SAF production potential.”

Initial work on the project will include exploring potential counterparties in Queensland to provide feedstock and demand for product offtake. Ampol and ENEOS will also work with the Queensland Government as part of its strategy to attract clean energy investment.

Deputy Premier Steven Miles said the project was another exciting step towards Queensland becoming a clean energy powerhouse.

“This project has the potential to unlock significant benefits for our economy by generating good, skilled jobs and opening export opportunities in a new industry. The Queensland Government’s plan is to establish SAF refineries across the state and position ourselves as one of the world’s best SAF suppliers.”

Ampol and ENEOS will also consider opportunities for engagement with the Japanese Government’s strategy to invest in projects that can support the country to achieve carbon neutrality by 2050. In Japan, SAF is expected to be an effective way to reduce emissions, with the Ministry of Land, Infrastructure, Transport and Tourism setting a target of 10 per cent SAF use to be achieved by 2030.

The multi-year partnership will see Qsic, an intelligent audio startup, use its end-to-end audio technology to personalise and optimise partner content, ensuring that ads played throughout the Coles Express network are targeted and unique.

Matt Elsley, Co-Founder and CEO of Qsic, said this is something completely new and unique to the market.

“As advertisers across the board deal with declining access to consumers, especially at the physical point of purchase, our technology and partnership with Shell Coles Express allows suppliers to speak directly to their target audience during the decision-making process.

“They will also be able to measure the impact of their ads and using AI, fine tune their approach based on a customer’s real time needs.”

The Coles Express channel will use Qsic.ai, which employs advanced analytics to examine external data such as weather conditions, traffic patterns, and historical customer behaviour at each individual store to determine when product demand is likely to be high.

It then uses this data to insert supporting ads into a location’s speakers to increase traction and sales outcomes.

A successful trial across 20 Victorian Coles Express stores late last year, showed that leveraging Qsic’s software recorded a healthy sales uplift across multiple product groups and SKUs.

Michael Courtney, Executive General Manager at Coles Express at the time of the trial, said they are continually looking for ways to form relevant connections with their customers.

“The trial we ran with Qsic proved we could provide a great experience for our customers and team members whilst providing customers with information about relevant offers whilst they shopped with us. We’re excited the national rollout is complete, live, and delivering results.”

Viva’s Geelong Refinery to turn waste into fuels and recycled plastics

Viva Energy has announced plans to build infrastructure that will turn waste into fuels and recycled plastics at its Geelong Refinery.

The new infrastructure will enable the Geelong Refinery to receive and process feedstocks such as used cooking oil, animal fats, and synthetic crude made from waste plastics, which would otherwise find their way into landfill.

These feedstocks will be blended with crude oil to reduce the energy intensity of fuels that are produced at the Geelong Refinery and recycle waste plastics through the polypropylene plant, which was acquired by Viva Energy last year.

This will lead to the first commercial production in Australia of recycled plastic from waste soft plastics, which will be a key step towards solving one of the most difficult recycling challenges. It is estimated that in Australia more than two million tonnes of plastic go into landfill every year.

It will also be the first time that the Geelong Refinery will process biofeedstocks, which will reduce the carbon intensity of the fuels and refined products that are produced in Australia.

The announcement builds on a pilot program in 2021, which processed synthetic crude oil made from waste soft plastics to produce recycled plastic. This was subsequently used to produce food-grade plastic wrappers.

This initial project will involve the construction of a receiving gantry together with tank and injection infrastructure to allow biogenic and waste feedstocks to be received and stored at Geelong Refinery prior to being fed into existing processing units.

It is expected that these feedstocks will be sourced from local manufacturers and suppliers, with capability to process up to 50,000 tonnes per year as production of these feedstocks increase. Processing is expected to commence in the second half of 2024.

Viva Energy intends to participate in the International Sustainability and Carbon Certification (ISCC+) scheme, which will give customers transparency on the renewable feedstock content of their fuels and resins and the flexibility to choose how much renewable content they want.

Viva Energy CEO and MD Scott Wyatt said that Geelong Refinery is in a unique position to develop biogenic, circular, and lower carbon solutions.

“This project is part of the company’s broader vision to transform the refinery into a modern Energy Hub, which supports both energy security and the energy transition,” he said.

“We are excited about the opportunity to turn waste into fuels and to help deal with the growing problem of recycling waste plastics.”

APCO Service Stations wins Canstar Blue Award

APCO Service Stations has picked up the Canstar Blue, 2023 Most Satisfied Customers Awards – Petrol and Service Stations Award.

Placing second in last year’s awards, APCO has done one better this year by beating 2022 winner Costco and scoring nearly five stars across the board of customer satisfaction ratings.

The drivers of customer satisfaction included Price of Petrol and Customer Service, followed by Appearance of Service Station, with the Price of Petrol proving to be the key driver of overall customer satisfaction.

As a family-owned and run company, one of APCO’s founding principles was to provide people in regional areas with quality, essential fuels at competitive prices, something that it continues to do to this day.

“APCO is committed to keeping fuel prices fair and honest – for our customers and partners, so to know customers are satisfied with what we are doing in this space re-instils our confidence in this area.

“Our stores and their teams love serving customers and providing a welcoming, friendly, and fun environment, for people on the go to those who want to meet up and relax. We pride ourselves on greeting our customers with a smile and helping make the inconvenient – convenient for them,” said APCO in a statement.

APCO Service Stations celebrates its Canstar win

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