OCTOBER/NOVEMBER 2021
30-31 march 2022 Symposium & Networking Drinks Sponsor
C&I Expo is heading back to Melbourne in 2022, bringing retailers and suppliers together for two big days of business at the premier Australian convenience and impulse event. The retailer audience consists of owners and operators of convenience stores, service stations, independent supermarkets, mini marts, corner stores, newsagents, and food service stores that have a convenience offer. Suppliers and wholesalers are encouraged to exhibit to showcase new products and services. C&I Expo is a trade-only event and admission is free! Retailers and suppliers from all banners and brands are welcome to attend any or all of the functions over these two days where the focus will be on innovation and best practice within the convenience and impulse industry. Visitors will be treated to an impressive line-up of exceptional presentations at the C&I Industry Symposium. When the expo doors open, visitors will experience first-hand the latest in convenience products, services and merchandising.
“I love the Symposium, I love the C&I show. I love how our whole industry gets together for one event…Our whole company is here so we can network with people at all different levels.” - United Convenience Buyers
THE Calendar Wednesday 30th March 2022 10:00am – 12:00pm C&I Industry Symposium 12.00pm – 5.00pm C&I Expo Day 1 4.30pm – 6.00pm Networking Drinks Thursday 31st March 2022 9.00am – 11.00am C&I Industry Symposium
THE Venue
11.00am – 4.00pm C&I Expo Day 2
Melbourne Convention and Exhibition Centre MCEC is just a 20-minute drive from Melbourne airport and a short stroll to the city centre offering premium exhibition facilities, a central location and easy access to public transport and accommodation.
It’s a great chance to see new innovation in the market, new products, see what’s happening and what our competitors are doing. Vodafone Prepaid
Why EXHIBIT? • C&I Expo 2022 is Australia’s only industry-based event that is open to retailers and suppliers across all banners and brands. The general public is not admitted. • Access to independent operators who may not be receiving adequate representation • Access to the major corporate and independent chains • Industry-wide advertising in the lead up to the event • Broad-based industry support for the event
why visit? • A single national event over two days, showcasing best industry practice and cutting-edge innovation • A chance to see, touch, taste and smell the latest in convenience products and trends first-hand inside one large exhibition hall
Why our visitors love it 83%*
Experience new products and new equipment
67%*
Networking
• Premium industry education at the Symposium • Convenient hours, mid-week timing at a central location, close to public transport and accommodation • Opportunity to network with major retailers and suppliers at the Networking Drinks www.candiexpo.com.au
1300 789 845
98.5%
*
*Source: C&I 2019 Post Event Attendee Survey
OF ATTENDEES WOULD RECOMMEND THE C&I INDUSTRY SYMPOSIUM TO OTHERS
Symposium & Networking Drinks Sponsor
CONTENTS
EDITORIAL
October/November 2021
10 18
06 FACE TIME Kurt Wessel, CEO, Wessel Petroleum
10 STORE REVIEW Elizabeth Bay Deli is the heart of the community
14 GENERAL MERCHANDISE Consumers are turning to their local convenience store for gifts and gadgets
18 CARBONATED BEVERAGES This already mature segment is seeing growth driven by zero sugar and larger pack formats
22 BUYING GROUPS
Paving the way for successful independents
26 PRODUCT RANGING
We bring you all the latest new product launches
Welcome back T
he news we’ve all been waiting for is finally here and I can’t tell you how excited I am to see New South Wales start making its way out of lockdown. The October/November issue of Convenience & Impulse Retailing magazine features a profile on a charming group of stores that have become the heart of Elizabeth Bay in Sydney. Before NSW was plunged into lockdown, we were able to stop by and meet the owner of Elizabeth Bay Deli, Vincent Xu, who taught us the true meaning of community. We meet Kurt Wessel, the CEO of Wessel Petroleum, who never saw any other path for himself than to take over the family business. He shares his journey to becoming CEO and the highlights of his career so far.
We cover the carbonated beverages category, which retailers tell us is showing growth led by zero sugar and larger pack formats – pleasing to see for an already mature segment. We also look at general merchandise, a category that saw some peaks during COVID when people preferred to pick up items from their local convenience store. We explore how retailers can work to retain and grow these new customers. Also in this issue, we are grateful to share some valuable opinion pieces from Theo Foukkare, Darren Park, Norrelle Goldring, Laurie Wespes, and Dan Armes. I hope you enjoy this issue.
Safa de Valois
Keith Berg
Cheers, Deb Jackson
44 OPINION Theo Foukkare, AACS; Darren Park, UCB Stores; Norrelle Goldring, Shop! ANZ; Laurie Wespes, Snooper
52 INDUSTRY NEWS Grinders Coffee Roasters; SPAR Australia; AACS; Pacific Optics; Philip Morris Limited
60 PETROL NEWS an Armes, ServoPro; Ampol; Envirotank; Viva D Energy; 7-Eleven 4 October/November 2021 | C&I | www.c-store.com.au
James Wells
Ben Curtis
PRIME TIME
Two iconic Aussie brands unite to create the new Ice Break Mocha
It’s not just Santa that deserves a break!
Responsible vaping now available: TSV0 – Tribal Spirit Vapes
ZERO+ Pale Ale taps into Aussies love of sport and beer
Australia’s number two iced coffee Ice Break has teamed up with the number one rainbow flavoured milk brand in the nation, OAK, to create the ultimate mocha. Ice Break Mocha will disrupt the flavoured milk category and generate news and excitement amongst consumers. With the established real coffee credentials of Ice Break, the new Ice Break Mocha delivers a delicious full cream milk blend of two shots of coffee with OAK’s full-on chocolate flavour. This addition complements the Ice Break range and provides a new option for consumers seeking a real coffee recharge. To support the launch, digital media and out of home advertising will be used to leverage the scale of these beverage power brands, and drive penetration with new consumers to the category. Ice Break Mocha comes in both 500ml and 750ml formats and is available in grocery and convenience stores from October.
TabSol Australasia has partnered with Invibe Australasia to introduce, arguably, the first responsible vaping range in Australia. The TSV0 – Tribal Spirit Vape range has been voted by retailers as the best quality and responsibly packaged zero nicotine products in the market. It is the first disposable vape brand to put a warning; ‘Strictly for 18 years and over’ on all packaging. TSV0 – Tribal Spirit Vape range is popular due to: • High quality vape device with classy, polished metal casing; minimising leakage • Available in 600 puffs and 1800 puffs • 11 different great flavours • The closed pod system is tamper proof • Extra-long battery life delivers puff consistency Retailers can combine their TSV0 orders with TabSol’s tobacco range. To order online visit www.store.tabsol.com.au and get initial order discounts. Contact TabSol on email: info@tabsol.com.au; mobile: 0413 690 069 or phone: 02 9037 1478. Published by C&I Media Pty Ltd (A division of The Intermedia Group) 41 Bridge Road (PO Box 55) Glebe NSW 2037 Tel: 02 8586 6292 Fax: 02 9660 4419 E: magazine@c-store.com.au
Publisher: C&I Media Pty Ltd Safa de Valois
Editor at Large: Keith Berg
Commercial Director: Safa de Valois Editorial Director: James Wells
The Intermedia Group takes its Corporate and Social Responsibilities seriously and is committed to reducing its impact on the environment. We continuously strive to improve our environmental performance and to initiate additional CSR based projects and activities. As part of our company policy we ensure that the products and services used in the manufacture of this magazine are sourced from environmentally responsible suppliers. This magazine has been printed on paper produced from sustainably sourced wood and pulp fibre and is accredited under PEFC chain of custody. PEFC certified wood and paper products come from environmentally appropriate, socially beneficial and economically viable management of forests. The wrapping used in the delivery process of this magazine is 100% biodegradable. DISCLAIMER This publication is published by C&I Media Pty Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by Australian and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials.
Associate Publisher: Deb Jackson National Sales Manager: Ben Curtis
Have a Merry Christmas with Nestlé KitKat Santa creamy milk chocolate, which is returning to shelves in 2021. The seasonal favourite contains a smooth praline centre with delicious pieces of KitKat wafer, all covered in creamy KitKat milk chocolate. The single serve 29g treats are the ideal snack for when enjoying a holiday break. The Christmas seasonal category grew +6.1 per cent in 2020, with KitKat Santa outperforming the segment at +44.9 per cent vs year prior*. KitKat Santa was the second largest self-consumption offer in the Christmas segment in 2020. So grab those impulse purchases again this year by displaying a festive shelf-ready display on your front counter. Available nationally from October at RRP $1.00. *Source: AC Nielsen Scan AUS Grocery 2020
The non-alcoholic beverage sector has gained significant traction within the petrol & convenience (P&C) channel, spurred on by the hugely popular trend towards healthier active lifestyles. Australian Sports Brewing Co has taken zero alcohol beer a step further, creating non-alcoholic beers suited for athletes post-exercise. ZERO+ Pale Ale is enhanced with specially selected electrolytes designed for faster muscle recovery. With only 11 calories and fewer than 0.1g of sugar per 100ml ZERO+ Sports Beer is a full-bodied pale ale with a refreshing clean finish. It’s hard to believe it’s alcohol free. Athlete and Sports dietitian Sophie Brown says: “For beer drinkers, ZERO+ Pale Ale ticks so many boxes after a run.” ZERO+ Sports Beer is backed by an extensive social media presence and radio campaigns and featured on the Sports Entertainment Network. Contact The Distributors on ph: 1800 989 022 or email: info@the-distributors.com.au for more information and stockists. Senior Designers: Adrian Tipper Chris Papaspiros Contributor: Claire Hibbit
The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded save for those conditions and warranties which must be implied under the laws of any State of Australia or the provisions of Division 2 of Part V of the Trade Practices Act 1974 and any statutory modification or re-enactment thereof. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. Copyright © 2021 - C&I Media Pty Ltd.
Average Total Distribution: 21,108 AMAA/CAB Publisher Statement Period ending 31 March 2019 PROUD MEMBERS OF:
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October/November 2021 | C&I | www.c-store.com.au 5
FACE TIME
bp Northern Beaches in Mackay
KEEPING IT IN THE FAMILY
Kurt Wessel is the CEO of Wessel Petroleum and the third generation of family members to work within the business. This is his story… One of my career highlights was in 2019 when we built two greenfield sites and a carwash business all at the same time.”
I
was born in Bundaberg on Queensland’s coast where I was an only child and lived with my parents, Paul and Debra. It was a great childhood, I loved playing sports, particularly Rugby League and swimming. Then when I was about 16, I got really into surf lifesaving, and a few years later I was lucky enough to win an Australian surf boat title – that was probably my proudest sporting moment. I was never a huge fan of school, it just seemed like a waste of time to me, so I ended up leaving at the beginning of grade 12 to pursue a career in the family business. My grandfather Henry founded Wessel Petroleum in 1947, and growing up, both of my parents worked in the business – my dad was the Managing Director and mum managed the Retail Network. Over the years the business has grown to now employ
6 October/November 2021 | C&I | www.c-store.com.au
a team of more than 240 staff. We operate 20 service stations and Blitz Car Spas, ranging from highway service centres, multi-bay carwash sites, and your humble corner service station. Since joining Wessel Petroleum, I have worked in all areas of the business, including as a kitchen hand, a depot assistant/ truck driver, site manager, area manager, and retail manager. During this time, there were some interesting moments, such as when I accidentally rolled a truck off the road, but all of these experiences, while being a very steep learning curve for me, have given me a very good grounding of the business as a whole, and ultimately led to my current position as CEO. I always knew that I wanted to join the family business, so when a part-time job became available in 1999, as a kitchen hand, I jumped at the opportunity. The role was in the kitchen flipping
FACE TIME burgers at Mobil Airport Bundaberg, which has since rebranded to bp Airport and includes a Wild Bean Café. That site holds some very fond memories for me because it’s where I first started working, and now, since the refurbishment last year, I have been able to bring it into the future. Being able to revamp the food and coffee offer there gives me a bit of nostalgia of those early burger flipping days.
My grandfather Henry founded Wessel Petroleum in 1947, and growing up, both of my parents worked in the business…”
We used to have only Mobil sites, but with them exiting the country we have converted to bp and that has been great for us. The bp Airport site that I mentioned has been able to nearly triple coffee sales since it’s been rebranded, and food sales have significantly improved as well. Wild Bean Café is a really recognisable brand and a perfect fit for our business. We have just opened a new bp site at Noosa, which has a sleek internal look and includes the Wild Bean Café offer. Positioned in a prime location, the site features five bowsers and infrastructure for future electric charging. All of our sites are either on highways or in destination areas where people have been flocking for fishing and camping while borders have been closed, so our business has been really fortunate in that sense. One of my career highlights was in 2019 when we built two greenfield sites and a carwash business all at the same time. That was a pretty tough year for us, as it was the year my father Paul retired, and I took over as CEO. At the same time, a lot of new independent sites had started opening around us, which took away a bit of our volume share. But one of our business partners, Amanda Coates and I, worked extremely hard over this time and went hammer and tong for about three months to get the new sites and the carwash business off the ground, and I am very proud of our efforts.
everyone over the fact that we weren’t engaged yet and I had to keep nudging people and trying to change the subject. Sue Ellen and I had planned to do a bit of traveling together following that conference, but the proposal was a complete surprise to her. We have been happily married now for the last five years and have two amazing dogs, Lilly who is a Labrador and Marley who is a King Charles Cavalier.
I have been fortunate enough to do a lot of traveling through my job and some of my fondest memories have been at international bp conferences. I actually proposed to my wife, Sue Ellen, while standing under the Eiffel Tower in Paris, just following a bp conference in Istanbul, Turkey. It was pretty funny because throughout the conference I had been copping a bit of flack from
During summer I am still pretty involved in surf lifesaving and surf boat rowing. And I like to do a bit of surfing and getting away for fishing trips with dad whenever possible. I’m fortunate to have been able to forge a great work/life balance for myself. And am grateful to also work in such a vibrant industry, where no two days are ever the same. C&I
Kurt with some Broncos players
The newly opened bp and Wild Bean Café in Noosa
Kurt, Sue Ellen with their dogs Lilly and Marley October/November 2021 | C&I | www.c-store.com.au 7
info@aacs.org.au www.aacs.org.au
theo@aacs.org.au www.aacs.org.au
STORE REVIEW Vincent Xu, Owner, Elizabeth Bay Deli
THE HEART OF ELIZABETH BAY When a great location, great customer service, and great retailing combine... magic happens.
N What people love the most about this area is that it has always been a village and people can just walk from their homes and come here to grab anything they need.” – Vincent Xu
estled on a vibrant corner of one of Sydney’s swankiest suburbs is a group of shops that have become the heart of Elizabeth Bay. And after meeting with the owners of these stores, Convenience & Impulse Retailing found that it’s these people who keep this heart beating. Vincent Xu, Poppi Alexandridis, are two of the retailers at 76 Elizabeth Bay Road, running Elizabeth Bay Deli and Poppi's Place. If you speak to any locals in the Elizabeth Bay area, they will know these two by name, and in fact, it was one of these locals who originally wrote into C&I asking us to feature them in the magazine. We thought that if a customer is asking us to feature their local convenience store in the magazine, then it must be pretty special, so we were eager to find out why.
Since taking over, Xu has made lots of changes to the store, including increasing the product range, in terms of the number of SKUs as well as the variety. He also updated the way products are displayed to make the most out of every square metre of space. The store features floor to ceiling shelving with every inch of space cleverly utilised. It also has a deli with cheese, meats, dips, and charcuterie, as well as fresh fruit and vegetables. “Feedback from the local community has been great. People know that they can come here for anything they need, and we will have it for them.” When the COVID pandemic hit in early 2020, sending shoppers into a frenzy of panic buying with household staples like flour and toilet paper stripped from shelves, Xu made sure that he was always able to service his local community.
Elizabeth Bay Deli is owned by Xu, who actually purchased it off Alexandridis who owns and operates Poppi’s Place, the café just next door. Xu and his family have owned convenience stores for years, including one at nearby Paddington and another at Clovelly. He says that he used to walk by Elizabeth Bay Deli all the time and had his heart set on buying it immediately due to its prime location. “It’s just in such a great spot so I knew that I wanted to buy it right away,” explains Xu. “That was back in 1999, but Poppi made me come back three times before she finally agreed to sell it to me.”
10 October/November 2021 | C&I | www.c-store.com.au
Floor to ceiling shelving is cleverly arranged to provide easy shoppability
STORE REVIEW “A lot of my customers are elderly and need a little bit of extra looking after, so I made sure that I was setting aside essentials for them,” he says. “At the beginning of COVID, I would have customers calling me asking if I had any toilet paper or tissues, so I would put together a special package for them and deliver it to their homes.” Xu, who doesn’t normally offer home delivery, says that he was more than happy to go the extra mile for his customers during that period of uncertainty. Some of these customers were 90 years old and afraid to leave their houses, and Xu says the gratitude he received for helping them has been one of his fondest memories since taking over the business. “The families of these customers actually sent me boxes of chocolates and cards thanking me for looking after their parents during this time – it was really special.” Spending time with Xu and Alexandridis outside their stores, it is obvious just how loved they are by the community. Alexandridis told us that in the 35 years she’s been running her stores, she has worked every single day, and has never had an unhappy customer.
Browsing the aisles at Elizabeth Bay Deli
“I just love serving the customers. It’s a great community,” she says, in her charming Greek accent. There have been other convenience stores open nearby over the years, but none have survived. “I am very lucky with where my store is positioned on the corner on the main road, so it has always been the most convenient of the convenience stores in the area, which is why I’m still open and the others have sadly closed,” says Xu. “What people love the most about this area is that it has always been a village and people can just walk from their homes and come here to grab anything they need. “The locals all see us as ‘the corner shop’. It has become a destination where people meet, where they catch up with friends. Everyone knows where we are and who we are.”
Poppi Alexandridis and Vincent Xu
I am very lucky with where my store is positioned on the corner on the main road, so it has always been the most convenient of the convenience stores in the area.” – Vincent Xu
The ritzy Elizabeth Bay area, with its extraordinary harbour views, is home to a number of celebrity A-listers, who often frequent the corner shop. “We see everyone here, from David Bowie when he used to live just around the corner, to horse trainer Bart Cummings, businessman Lindsay Fox, Sarah O’Hare, and lots of actors and supermodels. We’ve also served Don Walker from Cold Chisel and Jimmy Barnes; they’ve all come here over the years. “When David Bowie used to live just down the road, every year at Christmas he used to bring us the most expensive Champagne as a gift,” say Xu and Alexandridis fondly.
The store makes the most of every square metre of space
The success and longevity of this retailing hub goes to show that when a great location, great customer service, and great retailing techniques combine, magic can happen. C&I October/November 2021 | C&I | www.c-store.com.au 11
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GENERAL MERCHANDISE
WHY MERCHANDISE
MATTERS More consumers are turning to their local convenience store during the pandemic, with gifts and gadgets high on their shopping lists, writes Claire Hibbit.
T
he COVID pandemic, and subsequent lockdowns across the country, have led to increased foot traffic in the petrol and convenience (P&C) channel, as shoppers opt for their local corner store over major supermarkets. According to research conducted by Pacific Optics, customers are visiting their local convenience stores more regularly due to lockdown restrictions. “The impact of people staying at home or close to home due to restrictions has seen consumers recognise the value in their local P&C store,” explains Ben Coleman, General Manager, Commercial and E-Commerce, Pacific Optics. “There are challenges from people not travelling as much in a daily commute, but a massive silver lining is allowing customers to discover how much more convenient convenience is.” Yaniv Peleg, Director of PeleGuy Distribution, says in-store sales have increased as more people continue to buy locally amid COVID regulations. 14 October/November 2021 | C&I | www.c-store.com.au
For PeleGuy Distribution, more than 95 per cent of business is generated through the P&C channel. “Hand sanitisers and masks were the number one product over the last 12 months. To support our customers and to help them keep revenues high, we also make sure the shelves are full of all the other ‘must haves’ and popular products,” says Peleg. Hong Shin, Marketing Director, Eastrade International, says customers now expect to find “more than just petrol and a few snacks” at their local convenience retailer. “Shoppers are now more inclined to make purchases from local retail stores for convenience and to avoid clusters in bigger supermarkets.” For Eastrade International, P&C accounts for 30 per cent of its customer base. Its highest performing products in convenience are quick charge phone cables, earphones, and powerbanks, while dual USB car chargers and gravity phone holders are among its top sellers in the petrol sector.
GENERAL MERCHANDISE
According to Shin, within the mobile accessories category, sales were initially slow during the first lockdown. However, the shortage of consumer electronics in major retailers due to international demand, has prompted buyers to explore their local stores raising the awareness of mobile accessories.
Avrahami believes that during these tough times operators, big and small, need to be agile and adapt to consumer trends. “Our regional customers set a good example for adapting to demand, many of which are now buying a bunch of toys and gifts because they see themselves as a regular destination for their local community.”
SHOPPERS SUPPORT LOCAL The pandemic presents many opportunities to invest in making convenience the local ‘go-to’ store for any consumer needs, not just petrol, says Peleg.
BUYING SMART P&C stores face challenges every day as they strive to meet their consumers’ needs. Peleg says the main challenges at store level are to keep the performance and revenues consistent.
“Stores will need to be innovative by offering the newest technology to the market, having a variety on offer from all categories, taking up the promotional offers from the suppliers, and passing those onto the end consumer and also by investing in upgrading the store look to attract more traffic,” he says.
As a distribution company, the challenge we had to overcome was being able to deliver the same level of excellent service our customers expect, without being able to visit interstate shops.”
According to Daniel Avrahami, Director of Smooth Wholesales, consumer habits have changed significantly when it comes to gifting.
Avrahami says the main challenge witnessed by Smooth Wholesales has been re-educating [retailers] about how they should approach purchasing stock.
“Traditionally, service stations and convenience stores have not been the first place that consumers think to buy gifts. The pandemic has forced people to change their shopping habits, with many choosing to shop local and support businesses within their community,” he says.
“It’s about buying smart from a wholesale perspective. From a retail perspective, it’s about changing the image that customers have of your store.
Smooth Wholesales has seen unprecedented demand for giftware in both metropolitan and regional locations. “Many of the small business owners we work with find it hard to source quality products on a normal day, and it’s even harder now with COVID restricting supply chains. We’ve established good relationships with our suppliers and have been able to provide popular products such as the Brillar LED lighting range, which tradies love, and practical items such as the bamboo pillows which truck drivers go nuts for.” One product which has gone from strength to strength is the Sock Exchange novelty sock range, which has more than 40 designs.
A lot of our incremental general merchandise sales come from seasonal opportunities and are related to specific events...” - Skye Jackson, General Manager Merchandise, Ampol
“If you’re only going to have chips and drinks specials at the front of the store, then that’s all customers are going to think your store is. “But, if a customer walks in and sees a Mattel toys promotion at the front of the store – that’s something they have never seen before – then they will realise you have different products to offer.”
NEW PRODUCTS FOR THE HOLIDAY SEASON Coleman says Pacific Optics has many strong performers across multiple categories. Recently, the company has seen a sales surge for its newer charging speed technology. “This category continues to grow by around eight to 10 per cent with consumers recognising the reliability of the Walkntalk brand and now the Fast Charge range,” says Coleman.
“We’ve seen some of our customers clearing an entire display of 240 units in a week,” says Avrahami. With petrol sales declining during lockdown periods, there is an opportunity for service stations to become a destination for convenience. Avrahami says that products such as arts and crafts, kids’ toys, and activity books have become must-haves for any serious operators. “People have taken up new hobbies during the pandemic and many retailers have capitalised on the opportunity by offering products like colouring books, craft kits and jigsaws. Parents also need to keep their kids entertained, which is why our customers have been bulk buying a lot of arts and crafts products, such as the new Hinkler Crystal Creations range, which will keep kids entertained for hours.” October/November 2021 | C&I | www.c-store.com.au 15
GENERAL MERCHANDISE He says impulse is still a driver to decision making towards Pacific Optics’ products, but consumers are becoming more aware of its brands, in particular Aerial and Walkntalk. “We have also seen an increase in the purchase of products that we have released that impress and delight an end consumer (like Fuse Airbudz and Airbudz II) and they buy it on discovery impulse, not on the replacement impulse of something they have broken or lost and are purchasing as an emergency.” Peleguy Distribution is preparing to launch a new range of around 60 phone accessories from the Our Pure Planet brand, specially developed to suit the growing P&C market. “Our Pure Planet is the first 100 per cent eco-friendly phone accessory company in the global market,” says Peleg. Eastrade International launched a new Magnetic Wireless range in September. Esonic’s Magnetic Wireless Pad is compatible to Apple’s latest iPhone 12 range. The new magnetic feature snaps at the back of the phone and charges immediately. Pacific Optics is also preparing to introduce a new range of Walkntalk charging devices. “It isn’t charging as you know it, it is MAGCHARGE. It combines the speed of fast wireless charging and the convenience of magnetic mounts to build your ultimate charging companion,” says Coleman. Another exclusive product from Pacific Optics that will land just in time for Christmas is its FUSE Airbudz II in limited edition colours, Matte Black and Champagne Gold.
PROMOTIONS AND VISIBILITY When it comes to positioning gifts and gadgets, place items in sight of retail staff and near the counter. “Keep enough stock to be able to top up the shelves as they sell, keeping the displays looking great, as items from this category tend to sell quickly,” says Peleg.
Eastrade International has recently introduced a new in-store merchandising stand for retailers that Shin says aims to visually attract buyers and to boost sales. “Our new stand is rotatable and very mobile to position anywhere in the store. The best position for the stand is still near impulse buys near the cashier to remind customers those mobile accessories are ranged in your store.” Pacific Optics’ Coleman recommends items be placed in high foot traffic areas and near the front counter. “Consumers are starting to know they can buy phone accessories and audio product at a petrol or convenience outlet but still traditionally they are coming in for tobacco, a beverage, food on the go or just petrol,” says Coleman. “It is important it can be seen in a high traffic area prior to the person making a payment for their primary item. Our team are happy to work with anyone on positioning an in-store presence, so we are happy if stores just reach out.” C&I
Ampol shares tips on boosting General Merchandise sales General Merchandise has been a growing category for Ampol, which saw some peaks through COVID in 2020, where people found it more convenient to pick up items from their sites. Skye Jackson, General Manager Merchandise, Ampol, told C&I that when it comes to general merchandise, retailers should consider looking at seasonal opportunities. “We recently introduced football cards, which went well for us at the back end of last year when the season commenced late. However, they don’t perform as well during lockdowns, so this year has fallen off comparatively. We have also started selling some supporter merchandise for Red Bull Ampol Racing and Ampol State of Origin,” she said. 16 October/November 2021 | C&I | www.c-store.com.au
When it comes to boosting sales of general merchandise, Jackson says its important to understand your local demographic and tailor your range accordingly. “Phone accessories, chargers and Airbudz have performed well for us. I think customers saw the convenience of getting these items from us, particularly during COVID where other retailers have not been open. “A lot of our incremental general merchandise sales come from seasonal opportunities and are related to specific events or are themed to the store’s demographic. It’s about finding what’s relevant to your stores at what time. For example, our stores nearby the beach have a much larger offer of hats and thongs than our traditional inner-city stores do, and that’s a focus area for us through summer.”
If a customer walks in and sees a Mattel toys promotion at the front of the store – that’s something they have never seen before – then they will realise you have different products to offer.” – Daniel Avrahami, Director, Smooth Wholesales
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CARBONATED BEVERAGES
INNOVATION ADDS FIZZ TO BEVERAGES
New formulations are shaking up a classic convenience category, writes Claire Hibbit.
T
he petrol and convenience (P&C) market remains a crucial sales channel for carbonated soft drinks (CSD), as manufacturers continue to innovate and adapt to consumers’ growing preference towards ‘better for you’ formulations.
“Beverage categories that saw growth in 2020 did so by playing a role in all day parts, increasing penetration throughout the day*.”
Theo Foukkare, CEO of the Australian Association of Convenience Stores (AACS), said data from the AACS State of the Industry 2020 report found that the soft drinks category continued its increase from 2019 and added 4.9 per cent growth in 2020. The category now represents just under 25 per cent of all beverage sales.
“With the change in shopper habits we continue to see a blurring of lines on how consumers have originally shopped, and the channel therefore plays a key role in getting our famous brands to as many consumers as possible. P&C delivers more than 18 per cent of the volume in the on the go channel,” says Parsons.
According to Foukkare, promotional penetration significantly increased within the packaged beverages category to more than one in three during 2020, and promotional purchases increased across most beverage categories including Energy and Cola carbonated soft drinks*.
Asahi Lifestyle Beverages has a broad portfolio of soft drinks that it owns or manufactures under licence. This iconic range includes Schweppes, Pepsi Max, Solo, Sunkist, and Mountain Dew.
“Spend increased 17 per cent driven by both an increase in basket size and incremental increases in cross-purchase categories in particular with tobacco, grocery, and general merchandise*,” said Foukkare. 18 October/November 2021 | C&I | www.c-store.com.au
Nigel Parsons, CEO, Asahi Lifestyle Beverages, says the P&C channel is incredibly important to their portfolio of brands.
According to Parsons, Asahi Lifestyle Beverages has category leadership in the no sugar non-Cola carbonated soft drinks category with more than one third of the market. This has been driven by the growth of zero sugar versions of Australian classics such as Schweppes Lemonade Zero and Solo
CARBONATED BEVERAGES Zero. Non-Cola no sugar grew by more than 100 per cent in value in the 12 months to June 2021. Cola no sugar now comprises around half of the total Cola market. This has been driven by the ongoing success of products such as Pepsi Max and the evolving Pepsi Max Flavours portfolio. According to Parsons, Pepsi Max is the fastest growing no sugar Cola brand. Asahi’s portfolio of regular CSDs has also retained its strong position in the market, which is consistent with past performance. “CSDs continue to be the third largest beverage category in value within the convenience channel,” says Parsons.
THE NO SUGAR MOVEMENT
customers and consumers, and helping customers range these products to grab the attention of consumers.”
SPOTLIGHT ON ‘BETTER FOR YOU’ The P&C channel is pivotal for Famous Soda Co’s continued growth and is a key channel for the Famous brand ensuring its better for you products are accessible to all consumers. “The major trend in P&C that we are witnessing is in line with other channels and that is the shift towards low sugar and no sugar products,” explains Michael Pillon, co-founder, Famous Soda. “As this channel continues to grow stronger and stronger, the consumer now has an expectation that the no sugar and low sugar alternatives deliver on flavour and value in line with traditional full sugar brands.”
The wellness movement has seen manufacturers innovate and develop lower and no sugar drinks, as well as introduce reformulations of existing products.
According to Pillon, the brand’s strongest performing lines in P&C include the 250ml and 330ml cans in Pink Lemonade, Passionfruit, and Blood Orange.
In June 2018, the Australian Beverages Council announced a pledge that would see the non-alcoholic beverage industry commit to a 20 per cent reduction in sugar across the industry’s portfolio by 2025.
Famous Soda Co’s 250ml cans are the leading brand in the better for you range in more than 600 Coles Express outlets. From the success of the 250ml cans in P&C the brand developed the 330ml cans, which are sold exclusively in all 720, 7-Eleven stores from September.
In October 2020, Australia’s largest beverage companies marked a major milestone by announcing a 12 per cent reduction1 in sugar, in the second progress report on the beverage industry’s flagship pledge.
“The key difference from COVID is shoppers were visiting less frequently but the average spend has raised dramatically, value and bundle buys on our products have played a strong role in ensuring strong run rates in all our P&C channels.
According to Parsons, the no sugar market in Australia is booming.
Parsons says Asahi’s non-alcohol business has rebounded strongly from 2020.
“These drinks, which we own or manufacture under licence, include Solo, Sunkist and most recently Mountain Dew. We provide a range of no sugar, reduced sugar and regular sugar products to meet the wide range of consumer preferences.”
– Nigel Parsons, CEO, Asahi Lifestyle Beverages
Pillon says P&C has managed to stay one of the company’s strongest channels, despite the pandemic.
Research conducted by Roy Morgan in July 20202 found that nearly half of Australians (44 per cent) say they’re ‘concerned about their sugar intake’, up slightly on a year ago. The study also found that the concern is most prevalent among millennials (48 per cent).
“Asahi Lifestyle Beverages is leading the way in providing zero sugar alternatives to some of our most popular soft drinks.
Beverages are the third highest shopper mission within the P&C channel and play a key role in driving traffic to stores.
“Of note has been the impressive recovery of the P&C and quick service restaurants channels. There are clearly more challenges ahead with the significant lockdowns now occurring across the country,” he says.
CSDs are also still hugely relevant in convenience, based on the share of the total beverage category. “There is continued focus and growth within the no sugar market, so the inclusion of ‘better for you’ offerings is increasingly important for the category in convenience,” says Parsons. “No sugar will continue to be a key driver of growth in the nonalcohol ready-to-drink beverage category.” Asahi Lifestyle Beverages continues to innovate in the no sugar space. So far in 2021, it has released Mountain Dew No Sugar, three varieties of Gatorade No Sugar, and most recently, G Active Grape No Sugar. “We have also driven the shift in demand from regular non-Cola CSDs to the zero/low sugar versions through campaigns with October/November 2021 | C&I | www.c-store.com.au 19
CARBONATED BEVERAGES
Beverage categories that saw growth in 2020 did so by playing a role in all day parts, increasing penetration throughout the day.” – Theo Foukkare, CEO, AACS
Pillon says the key challenge remains as to how federal and state governments handle the current pandemic and peoples’ ability to [travel] and purchase.
“There is definitely a trend for more zero sugar options, and I think we will see more of our favourite flavours coming through with options for zero sugar in the future.
“The current health pandemic is spotlighting the better for you category more than ever. Consumers are looking to make healthier purchases and products that add benefit and align with their health concerns. We see health as a global trend and consumer priority.”
“We’re also seeing growth in the larger pack sizes, particularly during COVID where the mission is more often becoming for home consumption as opposed to immediate consumption. We tend to see the larger pack sizes in many of our categories be more popular with our home delivery via Uber Eats.”
Parsons says that placement and positioning of beverages in-store is also crucial. “Beverages are the third highest shopper mission within the P&C channel and play a key role in driving traffic to stores,” he says. “In petrol stores, many shoppers are still fuel-only customers. Beverages can help change this with things such as fast-lane fridges and placing chilled beverages outside of the cool room.” Pillon’s advice to retailers when it comes to product placement is to “shake things up”. “Don’t be afraid to position healthier products with the traditional brands. Allowing consumers to choose healthier options is becoming more commercial and mainstream, in line with the big brands due to growing demand, popularity, and distribution. “Consumers want options in convenience and grab and go, so don’t be afraid to shake things up and give them something healthy.”
RETAILER PERSPECTIVE Carbonated beverages have seen growth in the first half of 2021, which retailers say has been pleasing for an already mature segment. Skye Jackson, General Manager Merchandise, Ampol, says the growth has been led by zero sugar options and larger pack formats. “For growing carbonated beverage sales, getting the basics right is important. It’s simple, but availability of the right products is key, particularly during our peak trading months in summer,” she says. 20 October/November 2021 | C&I | www.c-store.com.au
Joseph Alessi, National Merchandise Manager, New Sunrise has noticed similar trends across the New Sunrise network. “Carbonated beverages have seen a resurgence in popularity in New Sunrise retailers in 2021. We have seen particular growth in Cola ahead of flavours, driven largely via cross purchase with meals,” he says. “Customers have a certain loyalty and acceptance for low sugar options in Cola, which has seen growth accelerate ahead of flavours. No sugar flavour options, though, are making inroads in this space. “Low sugar and ‘better for you’ options cannot be ignored. Products that have done well recently include the launch of the Level Beverages Lemonade range, combining a great fizzy taste with a health benefit of magnesium and Vitamin C.” When it comes to catering to these new and emerging trends, Alessi says that it’s all about offering the consumer enough choice. “It may be the same customer that is wanting to be ‘good’ during the week, and then wants to ‘treat’ themselves towards the latter part of the week. But there is one thing that is clear – they will not compromise on taste,” he says. All in all, it is about understanding your local customer base and having the right range for the right store. “There is not a one size fit all approach. Having the right range for the store offer is critical to increasing stock turns,” he says. C&I *
Source: CMA Shopper Report August 2020
1
12 per cent reduction in sugar has been achieved by average reductions in total grams of
sugar per 100mL and includes the period 1 January 2015 to 30 June 2020. Source: Australian Beverages Council 2
http://www.roymorgan.com/findings/8473-australian-health-attitudes-july-2020-202007270703
r e e B r e g n i G ! e t i B h t wi
If you like your ginger beer full-bodied then Tiger is for you! With a rich and lingering ginger taste, Tiger is ginger beer with bite! w.trtrublubeverages.com.au For further information, please call Tru Blu Beverages on (02) 9912 6700,w orwvisit ublubeverages.com
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BUYING GROUPS
BUYING POWER
Buying groups provide a number of benefits for small and independent businesses, writes Claire Hibbit. We offer independent retailers a holistic and sophisticated retail system where we concentrate on selling.” – Steve Cardinale, Retail Director, New Sunrise
A
retail buying group is an organisation which offers membership to small and independently owned businesses.
“The primary role of buying groups is to provide independent businesses with a structured program across all of the key functions of buying, selling, promotional activity, and operational business support,” explains Theo Foukkare, CEO of the Australian Association of Convenience Stores (AACS). “Buying groups are important as they negotiate on behalf of their members when it comes to trading terms with suppliers of goods and services, pricing, promotional programs, and things like instore fixtures and fittings. “They also act as a vehicle to educate their members with category insights and showcase innovations from different perspectives such as technology, equipment, new products, and insights.” According to Foukkare, buying groups can take many different forms. From a national or state franchise system under a consistent banner, to a collective of independent operators of different branded banners under a national buying group umbrella structure – they all participate in a consistent
22 October/November 2021 | C&I | www.c-store.com.au
promotional and compliance program where the ultimate buying decision falls with the business owner. “The national support teams within buying groups effectively provide a support ‘eco-system’ that allows their members to focus on running their store operationally and not have to worry about a lot of the time-consuming tasks that they take care of. “One of the primary benefits of most buying groups is a monthly promotional program that is designed to maximise sales, improve their purchase price and continue to deliver amazing value to consumers.”
STRENGTH IN NUMBERS According to Foukkare, since the beginning of the pandemic, buying groups have achieved high double-digit growth, which has been heavily underpinned by consumers changing their shopping habits to shop local and support small business. “A lot of buying group stores are in regional areas, which have also been one of the beneficiaries of closed international borders as consumers have learnt to travel within Australia. “We capture the buying group performance data in our AACS Annual and Mid-Year State of Industry Reports, and I can
BUYING GROUPS confirm that the unmeasured data, which is where the majority of the buying groups currently sit, have seen high double-digit growth rates over the last 12 months.” The Distributors, which originally formed 40 years ago, is a leading independent wholesaler distributor to petrol and convenience (P&C), corner stores, pharmacy, newsagents, schools, and the route market.
He says New Sunrise has evolved “beyond the simplicity of a buying group”. “From the outset New Sunrise has never simply acted as a buying group. We recognised that independents need more and so New Sunrise offers the independent retailers a full-service retail program. So it was more about what to buy, when to buy, and how to sell it so that retailers are maximising return of your working capital as well as building customer loyalty.
“It was the view of five independent wholesalers back then that if they combined their purchasing power, they would be able to purchase better from manufacturers, which in turn would help them be competitive in the marketplace,” explains George Tsapoutas, General Manager, The Distributors.
“We offer independent retailers a holistic and sophisticated retail system where we concentrate on selling. We concentrate on setting the store up for success, with the optimal layout, core range, and price and promotional mix to build customer loyalty.”
“Today, it is not only about being able to buy better, but also about the ability to offer consistency across a national customer base.”
He says the most important part New Sunrise plays for its members is being able to educate and offer assistance.
According to Tsapoutas, The Distributors offers centralised IT platforms, systems, and processes, marketing, national pricing, and customer supplier reporting.
“We thrive on giving our retailers confidence to develop and invest in their retail offer in line with changing shoppers needs and competitive market forces.
“As a group you also have the ability to share ideas and learn from each other’s success. For larger national accounts it also means they only have to deal with one point of contact nationally. This enables members within The Distributors group to focus on what they do well day-in day-out at a local level servicing their customers and delivering great results.”
“For example, the recent lockdowns have been extremely challenging. With less government support, along with changing shopper behaviour and the explosion of e-commerce, this has resulted in many independent small businesses doing it tough.
Tsapoutas says The Distributors supports the wider P&C channel through its efficient go to market model that allows manufacturers to get their products distributed nationally via one centralised system. “The Distributors systems allow the organisation to load and execute, range, price and promotional programs to make sure that its P&C customers remain competitive and in stock to service their local communities.”
A HOLISTIC RETAIL SYSTEM
One of the unique characteristics of buying groups is that they are filled with entrepreneurial spirit, passion, and ideas that can only be found within the small business community.” – Theo Foukkare, CEO, AACS
“Therefore, it was important for us to rise to the occasion and support our membership in this difficult time. We needed to look for new and innovative ways to connect with the local shopper and support the local community.” Some of New Sunrise’s initiatives for its members during COVID last year included sending daily updates to members, developing a comprehensive COVID-kit for stores, creating a 12-week ‘c-store bootcamp’ post lockdown period, and hosting online industry events. For the first time last year, New Sunrise also ran a national digital and free to air TV advertising campaign promoting each of its retail members.
Steve Cardinale, Retail Director at New Sunrise, which has more than 1000 small businesses and independent stores in the New Sunrise Program, believes the term ‘buying group’ is a thing of the past for New Sunrise. “We feel the term ‘buying group’ does not accurately describe the value and the important part New Sunrise plays in the convenience channel and food service markets.”
October/November 2021 | C&I | www.c-store.com.au 23
BUYING GROUPS
L-R: Joseph Alessi, Deb Adnum, Andrew Cardinale, Karly Scuglia, Greg Page, Sailesh Patel, Engelbert Misquitta, Taylor Meredith
The pandemic has focused consumers on shopping and supporting local, and as I see it, our opportunity and challenge moving forward is to keep that consumer coming back.” – George Tsapoutas, General Manager, The Distributors
New Sunrise also supports the local community with the placement of 400 Automatic External Defibrillators (AEDs) across its network. “We are proud to support Heart of the Nation a charity founded by Greg Page (the original Yellow Wiggle) to promote awareness of cardiac arrest and Sunrise [stores] are doing their part in increasing the chain of survival. “The local community is important to us, and we will continue to work with Heart of the Nation to promote awareness of cardiac arrest and do our part in helping to build the chain of survival to help save many thousands of lives each year. “In 2022, New Sunrise will be looking at how we can continue to lead the way for our independent retailers, through continuing to give greater support to help them develop their retailing skills.”
FUTURE OPPORTUNITIES Buying groups are now the go to networks for independently owned small businesses across the P&C industry and will continue to play a significant role within the channel, says Foukkare. “One of the unique characteristics of buying groups is that they are filled with entrepreneurial spirit, passion, and ideas that can only be found within the small business community. “They will continue to play a significant role in guiding small businesses through these challenging times, whilst at the same time continue to build on their strong foundations for many years to come.” While the P&C industry has evolved over the last 10 years, Foukkare believes more opportunity awaits.
24 October/November 2021 | C&I | www.c-store.com.au
“It is great to see so much innovation coming through into retail from both the corporate and independent operators, however, the channel cannot lose focus of the consumer and their everchanging behaviours. Don’t lose sight of what is working really well and make sure you show up in that space at the right time for when the consumers really need it. “Whilst the foodservice category will deliver close to $1 billion in sales in 2021, retailers can’t lose focus of the staples – pies, sausage rolls, and sandwiches as an example. “For me, retailers need to embrace the omnichannel experience that has proven to be so successful. Digitising your range to be available online so your customers can access when they want is paramount.” Tsapoutas says it is important to the industry to have a vibrant and effective go to market model that is not owned or controlled by one of the majors. “The Distributors members are fully integrated into the areas where they live and work, this means their focus is on the support of the local community and local store even if it is part of a national chain, they are still their local customer. “The pandemic has focused consumers on shopping and supporting local, and as I see it, our opportunity and challenge moving forward is to keep that consumer coming back to shop local. All of us retailers, suppliers and distributors, need to focus on getting the experience right for the consumer to keep them coming back to shop in their local P&C store. “I truly believe we can achieve this by ranging the products our customers want, delivering the innovation the channel needs, and working together to keep our channel exciting and relevant.” C&I
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PRODUCT RANGING
HOICE • &I C C& •C I
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CE • C&I CHO OI IC H C
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CE • C&I CHO OI IC CH
Our C&I Choice product this month comes from an iconic Australian company that many of us have grown up with, DON Smallgoods. We all know the DON name… Is DON. Is GOOD. Synonymous with ham, bacon, and smallgoods Australiawide, the company has recently entered the snacking and convenience arena with its DONSKIS Bullets in 45g bags. DONSKIS Bullets are an ambient meat-based snack range that delivers more flavour, more convenience, and more opportunity for growth. A bite sized version of the original DONSKIS, they are made from wood smoked salami for authentic delicious taste and packed with flavour in every bite. Over the last three years, meat-based snacking has become the fastest growing segment of the ambient snacking category, outpacing chips, and popcorn. Perceived healthier savoury snacks have been outgrowing sweet snacks, with 63 per cent of Australian adults believing their choice of snacks reflects their overall healthy lifestyle. It’s for these reasons that we’ve selected DONSKIS Bullets as our latest C&I Choice. They tick all the boxes of a versatile on the go snack in a single serve pouch. With protein in every bite, they are also gluten free, and require no refrigeration. DONSKIS Bullets are available in both Hot and Mild and are a delicious full flavoured snack that provides consumers with a real flavour kick when hunger strikes.
HOICE •C &I C &I •C
DONSKIS Bullets voted as the latest C&I Choice
Wireless fast charging that sticks with Walkntalk Phones and devices evolve every year, featuring bigger screens, folding screens, better cameras, greater complexity, and power in apps. This normally leads to an increased demand for power. Traditionally the recharge of this power is from a sync and power phone cable, however these days there are also wireless charging options, providing additional convenience. As far back as 2012 the first wireless charge compatible devices came to market, however the charging speeds were too slow to be broadly accepted. Now, most devices from Apple and Samsung are Qi Compatible and can wirelessly charge at faster speeds. Wireless charging is pretty cool, but have you heard about the new innovation in this tech involving magnetic charging? Enter MAGCHARGE. The newest devices have both wireless charging and magnetic connection compatibility allowing magnetic charge at a higher and faster wattage. Walkntalk is happy to introduce the MAGCHARGE range. This product will deliver a wireless fast charge via a high-powered charging coil coupled with magnetic force. This gives birth to innovative new fast charge devices that literally 26 October/November 2021 | C&I | www.c-store.com.au
stick (with a magnet) to your devices without the mess of cables. Do you have a wireless charging enabled device but no inbuilt magnetic connection? (Simply google search your device to check.) That’s no problem as Walkntalk provides an adapter in the box to help you #stayconnected MAGCHARGE fast. This innovation comes in 5,000mAH and 10,000mAH powerbanks, and a car vent mount model (from which the MAGCHARGE pod can be removed and be used bedside or at a desk). Want the new frontier of wireless charging with the reliability and trust that comes with Walkntalk products? Contact the Pacific Optics team today on orders@pacificoptics.com or 1300 237425. Wireless charging that will stick and help you and your customers stay connected.
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PRODUCT RANGING
Allen’s gets ready to
PARTY
The team at Allen’s has kicked off its 130th birthday celebrations with the launch of Allen’s Party Faves.
Allen’s is celebrating its 130th birthday, and to mark the milestone has launched Allen’s Party Faves. A milestone like no other, the iconic lolly brand is sharing the birthday fun with its Allen’s Party Faves. Each pack is filled with party-inspired flavours, including chocolate cupcake, strawberry fairy floss and green apple icy pole – so you can relive all your favourite party moments big or small. Throughout its history, the team at Allen’s has created more than 1,000 different types of lolly over the last 130 years – lovingly made in Victoria since 1891. Some of the more unusual lollies have included a jelly tongue, and a giant jelly rat. Australians’ favourite Allen’s lollies are Snakes Alive and Party Mix. Around 240 million Snakes Alive are made in a year and if you lined them up head to tail, they’d stretch 36,000km – enough to wrap around the moon three times or right around the world at least once. Nestlé Head of Marketing Confectionery Joyce Tan says that Allen’s lollies are the perfect addition to celebrations big or small. “Making Aussies smile has been our passion for the last 130 years, thanks to our great tasting and much-loved lollies. Many Australians have a special Allen’s story and favourite lolly, so we can’t wait to see the smiles on Australians’ faces when they discover our exclusive 130th birthday creation, Party Faves.” Allen’s Party Faves have been available in participating supermarkets and convenience stores since 1 September.
Fun Fact:
Allen’s produces enough Party Mix to decorate more than 12 million birthday cakes each year!
28 October/November 2021 | C&I | www.c-store.com.au
PRODUCT RANGING
New update to SWAP’n’GO bottles in 2021 SWAP’n’GO LPG cylinders have been powering Aussie barbeques and outdoor heaters for a generation. This year, they have made a small change to the connection valve of their cylinders to further improve safety. This new valve looks a little different, but it still functions with existing barbeques and outdoor heaters just as easily as before. Customers can swap their empty 9kg or 4kg gas bottle for a full one with SWAP’n’GO. Available at more than 5,000 dealers, SWAP’n’GO gas bottles are fast, safe and easy to swap. Customers do not need to wait around to get their gas bottle refilled as they get another new or refurbished gas bottle that is theirs to keep. Sell new SWAP’n’GO gas bottles, swap any brand of the empty bottle for a full bottle or swap BBQ gas bottle sizes. The 9kg BBQ gas bottle is the larger bottle, filled with 8.5kg of gas. The 4kg BBQ gas bottle is a smaller size, filled with 3.7kg, and will still be available with a POL fitting or the new LCC27
valve. Elgas, through its depots uses digital scales for SWAP’n’GO gas bottle refills, to ensure accuracy. SWAP’n’GO BBQ gas bottles can be exchanged for any brand of 9kg or 4kg cylinders, even if expired, but must meet the cylinder suitability checklist. SWAP’n’GO BBQ gas bottles are all leak tested as part of the refurbishment process. When you sell your SWAP’n’GO gas bottle, you don’t have to worry about checking test dates as SWAP’n’GO gas bottles will always be in-date and your customer owns the SWAP’n’GO gas bottle they receive. Bottles are also available for purchase without needing a trade-in.
For more information visit www.elgas.com.au/swapngo/
Feeling Flat? A Dare Sparkling Fix’ll Fix It!
Dare has expanded its product offering, launching Dare Sparkling Cold Brew Coffee, for those in need of a refreshing afternoon pick me up. Dare Sparkling perfectly taps into the ‘pick me up’ need state which drives 26 per cent of beverage occasions throughout the day*. There is opportunity to reach consumers in more of these occasions as 51 per cent of consumers surveyed said they wish there were more natural energy drinks, and 40 per cent are looking for more ‘better for you’ options. Completely new to market, Dare Sparkling Cold Brew Coffee will be a hit with the afternoon crowd looking for something that is refreshing and thirst quenching. “It’s the perfect afternoon pick me up for those wanting the refreshment of a CSD, and the pick me up from a real coffee,” said Simone Formisano, Senior Brand Manager, Dare. 30 October/November 2021 | C&I | www.c-store.com.au
Dare Sparkling Cold Brew Coffee is made with 100 per cent Colombian coffee beans and cold brewed with purified water. Best of all it is lightly carbonated for a smooth tasting, refreshing coffee kick. Available in two delicious flavours, Original and Vanilla it ticks all the boxes with real coffee, no sugar, no dairy and only five calories per can! On shelves as of 15 September in 250ml cans, this launch will be supported with extensive out of home media placements specifically nearby convenience stores, online video, Spotify, Facebook and Instagram. Check it out at Dareicedcoffee.com.au or call 1800 000 570 (Mon-Fri 7am-6pm / Sat 7am-5pm AEST) to get your hands on the new range. *Source: BDD commissioned research, Nature agency, 2018; n~3,000
PRODUCT RANGING
Iconic In A Biskit returns to shelves
Tiger is Ginger Beer with Bite!
Iconic savoury snack, In A Biskit, has returned to shelves following a six-year hiatus with special edition Chicken and Drumstix flavours. Lucy Fisher, Marketing Manager of Savoury Biscuits and Meals at Mondelēz, says that since In A Biskit flew the coop in 2015, there has been an overwhelming demand for its return. Consumers around the country even established numerous ‘Bring Back In A Biskit’ forums. “We’ve listened to the thousands of Aussies asking us to bring In A Biskit back. We couldn’t ignore their passion for one of Australia’s most iconic snacks, so we’re proud to announce its return.” The special edition In A Biskit has been available since 11 August at leading supermarket and convenience stores nationally for RRP $3.20. Available while stocks last.
Ginger Beer is one of the fastest growing beverage categories in both alcoholic and non-alcoholic drinks, as consumers are looking for innovative beverages, made with natural ingredients, and offering functional health benefits. With these factors in mind, Tru Blu Beverages is proud to announce the launch of its latest beverage offering – Tiger Ginger Beer. As its name suggests, Tiger is inspired by the Asian heritage of ginger and its full-bodied ginger taste certainly makes it stand out from other ginger beers on the market. With a rich and lingering ginger taste, Tiger is ginger beer with bite! Available now in a 375mL glass bottle, Tiger is certain to leave its mark on the ginger beer market. Tiger Ginger Beer is available nationally and is sold through delis, cafés and other good beverage stockists. To order yours today, contact Tru Blu Beverages on (02) 9912 6700.
Snackinar Beef Strips to fill $60 million gap in the Australian market A new brand in the beef industry, Snackinar, is poised to fill a $60 million gap in the Australian snack food market with its ready to eat Beef Strips snacks. Snackinar Beef Strips were developed in Australia by Michael Hearne in search of great tasting and convenient natural protein snacks without sugar. He says that Australia is overdue for a meat snacks revolution and points to research published in 2018 by Meat and Livestock Australia, which shows a $60 million gap in the Australian snack food market for a ready to eat beef jerky alternative. “Snackinar products are high in protein and essential nutrients without the sugar. For me personally, it’s the perfect post-exercise snack and I’ve heard they’re a nice change from cheese when sipping wine.” Snackinar Beef Strips are made using only Australian beef and natural seasoning (herbs, spices, salt, and garlic). They are available now from Amazon Australia and are currently seeking wider distribution. For more information contact info@snackinar.com.
Aqua Pura Fruit Splash Sparkling Water launches new Citrus and Melon flavours Aqua Pura has added to its range of Fruit Splash products with two new flavours, Citrus and Melon, that contain natural fruit flavouring and fewer than 50 calories per serve. Amelia Wright, Brand Manager, Fruit Splash, said the new flavours build upon the already established Fruit Splash range, which includes Tropical and Wildberry flavours. “These are the flavours our consumers know and love from Fruit Splash, so building upon that, we knew we had to maintain this offering in different flavours while catering to those who prefer sparkling water.” With non-alcoholic drinks being a rising market, consumers are making a move away from carbonated soft drinks and seeking a healthier – yet still satisfying – alternative. All Fruit Splash Sparkling flavours are available nationally for RRP $2.50 with a nine-month shelf life at IGA, Drakes, Foodland, Foodworks, and independent retailers. October/November 2021 | C&I | www.c-store.com.au 31
PRODUCT RANGING
9CHA milk tea goes from niche to mainstream in the Australian market
Australia’s first RTD milk tea 9CHA has seen extraordinary growth since launching less than three years ago. 9CHA was originally released in a 200ml pouch in three flavours, including Original, Wildberry, and Jasmine. Since then, and in listening to consumer feedback, the brand has launched a new 500ml bottle range in its two most popular flavours, Original and Jasmine. These flavours come in both the original recipe as well as a new no added sugar variety. Co-founder Sean Issell said that 9CHA is a true success story having attracted the attention of Australia’s biggest retailers and being the first product of its kind to hit the local market. “Initially we were focused primarily on the international market (9CHA is sold in six countries throughout Asia), however the opportunity in Australia for a ready-made milk tea was just too great to ignore,” he said. The great taste and light texture of 9CHA has already attracted praise from a diverse range of consumers (Milk Tea and Tea Flavoured Milk drinkers) from many different backgrounds. It combines the quality of Australian ingredients while incorporating a traditional Milk Tea Asian taste. “The interest for a different style of dairy based beverages has been immense,” said Jay Shao, Director and Co-founder, 9CHA.
Four’N Twenty drives
excitement with Traveller flavour innovations
Four’N Twenty, the market leading pie brand in the Australian hot, on the go savoury category, continues to innovate in direct response to the consumer trend of snacking more throughout the day. Four’N Twenty originally established the much-loved Traveller range as the perfect on the go pie format due to its unique shape, designed for portability and the convenience of a one-handed eat. With 67 per cent of consumers agreeing that they regularly seek convenient all day grazing options, the Four’N Twenty Traveller range has expanded once again with the addition of its newest innovation, the Traveller Pizza. Reimaging an Italian favourite, the Traveller Pizza range is packed full of flavour with two mouth-watering options – Meat Lovers and Hawaiian. The perfect choice for hot pizza to be enjoyed anytime, anywhere. Four’N Twenty has also extended the range into daypart snacking for consumers seeking convenient, breakfast options with the new Traveller Breakfast Classic Egg & Bacon. The steady stream of new product launches is the result of Patties Foods' Innovation Ecosystem, which leverages data-driven insights to develop new flavours and product formats. These draw consumers into store, ensuring continual customer acquisition and retention. 32 October/November 2021 | C&I | www.c-store.com.au
Patties Foods, General Manager of Marketing and Innovation, Anand Surujpal says: “Our Four’N Twenty Traveller range is the original and still the best. As a market leader, we set the pace for innovation with new, exciting flavours and formats within the convenience sector.” Four’N Twenty remains the number one brand in the warmer, continuing to innovate across the portfolio with some exciting new products launching into convenience stores, over the next six months. Whether it’s as a snack, lunch or something in between meals, the Four’N Twenty range provides delicious and satisfying meals that are great additions to every warmer, giving customers even more options to choose from throughout the day.
FURTHER
SAFETY IMPROVEMENT FOR
Aussie Outdoor BBQs & Heaters
SWAP’n’GO LPG cylinders have been powering Aussie Outdoor BBQs and Heaters for a generation. This year we are making a small change to the connection valve of our cylinders to further improve SAFETY.
Over the next few months and into the future this new valve will become more common amongst the SWAP’n’GO collection cages and the old valve will eventually be phased out.
Older appliances with the traditional POL fitting will still continue to screw into the new cylinder valve ANTI-CLOCKWISE.
From late 2021 LPG appliances will start to adopt a new hose fitting that is purpose built to function with the new valve design. Importantly, appliances with this new hose fitting will only be able to connect to the cylinder valve being screwed on CLOCK-WISE.
FOR A NY F U R T HER I NFO R M AT I O N CO NTAC T
ELGAS 13 11 61 • www.elgas.com.au/swapngo
NCE 1963 I S G N I G G A W
LUCKY DOG is for Real Aussie Dogs LUCKY DOG is a beloved Australian heritage dog food brand established since 1963. An uncomplicated, value Aussie dog food that offers practical care without compromise.
Australian heritage brand established in
1963
LUCKY DOG total range (Dry + Treats) worth
$39M RSV per year*
One of the most recognised dog brands in Australia (77% awareness)***
Shoppers buy 51% more volume per occasion than category average in Treats**
30%
of sales
come from shoppers who buy both Dry and Treats**
*Nielsen Scan Australian Grocery MAT to 13/06/2021 **Nielsen Homescan Panel 12/06/2021 ***Kantar Brand Health Study 2020
LUCKY DOG offers shoppers simplicity and value through a tasty range of dry food and treats. Your best mate’s tail will be wagging during mealtime with LUCKY DOG® Adult Dry dog food. They’re sure to love the real meaty flavour in each deliciously crunchy bite-sized piece filled with nourishing goodness to keep them in optimal health and wellbeing. This dog food is Australian made and contains 23 essential vitamins and minerals, including Omega 6 to keep their coat shiny and their skin healthy.
DRY FOOD 3KG
LUCKY DOG® Adult Bones are bite-sized, oven baked treats crafted with your dog’s palate in mind. Crunchy and shaped like a bone with no artificial colours or flavours.
LUCKY DOG® Adult Meaty Chews are made from chewy rawhide and wrapped in real meat. These rawhide treats are long-lasting and great for your dog to enjoy as a treat or reward.
BONES TREATS 800G
MEATY CHEWS TREATS 65G/96G
PRODUCT RANGING
Suntory BOSS Coffee expands RTD Coffee range with Iced Double Espresso Suntory BOSS Coffee originates from 29 years of Japanese craftsmanship, using a traditional process called flash brew. Brewed hot and chilled fast to unlock a true coffee flavour, Suntory BOSS Coffee started out as the energy drink for Japanese workers and has since evolved to become the worker’s buddy for everyone that has a job to do. In Japan, there are hundreds of coffees and formats to meet the variety of ways in which we all drink our coffee. Given Australia has its own unique coffee culture, a key part of launching Suntory BOSS Coffee was to identify mainstream coffee flavours that had broad appeal and carried strong coffee credentials, before expanding the range to tap into more coffee needs and occasions. In the latest MAT Suntory BOSS Coffee has helped further establish the RTD Coffee segment in Australia, delivering +225.7 per cent growth in Grocery and +153.8 per cent growth in P&C*. In 2020 Suntory BOSS Coffee broadened its range to include Iced Vanilla Latte, as there was a large group of consumers looking for a more mild, milky, and sweet coffee and help recruit a younger demographic into the category. In the latest MAT Iced Vanilla Latte has been incremental to the RTD Coffee Segment in both Grocery and P&C.**
In October 2021, Suntory BOSS Coffee has launched a new product to add to their range; Iced Double Espresso, offering consumers a stronger, more complex coffee flavour with a dash of milk. Research has identified that a large group of consumers are looking for a stronger coffee to help get them through their day. Iced Double Espresso will be supported with an integrated social media campaign, as well as leveraging 'How Japan Can' brand communications which will go live on the same day as Double Espresso on shelf date. *Source: IRI MarketEdge AU Grocery & Convenience combined dollar growth of RTD Coffee Segment MAT to 11/07/2021; ^ combined Grocery Convenience DB ** Source: IRI MarketEdge AU Grocery & Convenience combined BOSS Iced Vanilla Latte unit growth of RTD Coffee Segment MAT to 11/07/2021; ^ combined Grocery Convenience DB
Purina Lucky Dog: For real Aussie dogs Purina Lucky Dog is a beloved Australian heritage dog food brand that has been keeping dog tails wagging since 1963. Purina Lucky Dog offers a simple range of tasty meals and delicious treats that provide practical care without compromise. Made with real meat, it’s the smart choice for real Aussie dogs. The Minis Biscuits Beef & Bacon flavour is specially crafted for small breeds to enjoy. These treats are made with wholesome ingredients and are sure to induce lots of tail-wagging with their tasty, meaty flavour. As well as being a great treat for reward or play, these biscuits are also oven baked with a deliciously crunchy texture that’s designed to clean teeth and Bite-sized pieces for smaller mouths reduce tartar. In addition, these Oven baked for a delicious crunchy taste biscuits come in the shapes Helps to reduce build-up of plaque and tartar of bones and hearts to enable Quality treats to delight pets dog owners to show that extra Made with wholesome ingredients affection and care for their No artificial colours or flavours best mate.
Features and Benefits: • • • • • •
36 October/November 2021 | C&I | www.c-store.com.au
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OR GO TO V-ENERGY.COM.AU/WINMUSIC. KEEP HOLD OF YOUR RECEIPT TO ENTER. Conditions apply, see v-energy.com.au/winmusic. AU res. 18+. Starts: 27/09/2021. Ends: 3/12/2021. Max 2 entries p/p p/d. Keep receipt/s. 68 x Daily Draws 28/09/2021 6/12/2021. Winners published v-energy.com.au/winmusic on 13/12/2021. Prizes: 204 x $150 Music Vouchers. Prize pool value $30,600. Promoter: Frucor Suntory Australia Pty. Ltd (ABN 73 060 091 536) of Lvl 2, 5 George St, North Strathfield NSW, 2137. Permits: NSW Authority TP/01164. ACT Permit No. TP21/01199. SA Permit No. T21/1095.
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PRODUCT RANGING
Heartburn and indigestion are common complaints with one in five people suffering from heartburn at least once a week.”
Capture new customers with Quick-Eze Quick-Eze is a trusted Australian antacid brand, and with a variety of formats and flavours, it appeals to a variety of ages and demographics. Quick-Eze is the number one antacid brand in the convenience channel, worth $1.7 million* and has been trusted by Australians for more than 80 years. Heartburn and indigestion are common complaints with one in five people suffering from heartburn at least once a week**. Quick-Eze antacid tablets provide rapid relief from heartburn and indigestion by neutralising stomach acid fast. The antacids category is expected to see growth in line with Australia’s ageing population base, changing eating habits, and increasingly sedentary and stressful lifestyles. Retailers can capture this growth with Quick-Eze as it comes in a variety of single stick formats in multiple flavours that will appeal to both younger and older consumers.
Each Quick-Eze format has a role to play, and providing a range of both chewy and compressed stick formats will increase the penetration opportunity. The Quick-Eze chewy form over-indexes with a younger demographic and is ideal for driving recruitment to the antacid category. Whereas the compressed tablet format over-indexes with an older demographic who are already loyal consumers. Drive visibility and sales at front of store, with placement of Quick-Eze on the counter being critical, given the nature of the single stick format and its role for everyday occasions. *AC Nielsen Scan AUS Convenience MAT 27/06/21 **QE Paradigm Shift U&A Feb 2019
Benefits of Quick-Eze tablets: • Ideal for the temporary relief of heartburn and indigestion • Can be used during pregnancy • Convenient to use on the go • Great value for money • Choice of different flavours, chewy or compressed tablets • Proudly Australian made • Attract lighter and new users • Drive impulse sales at FOS
38 October/November 2021 | C&I | www.c-store.com.au
PRODUCT RANGING
Get ready to kill 'hungry-thirsty' dead this Christmas with the new OAK Gingerbread Australia’s favourite flavoured milk brand, OAK, is getting into the Christmas spirit with the launch of its new Gingerbread flavour. As the number one rainbow flavoured milk brand, OAK has continued to drive category excitement through new and exciting rotational NPD, and this festive favourite will be no exception. Gingerbread is synonymous with Christmas, and this merry blend of ginger and spice is an ideal way to extend the flavoured milk category into this key seasonal occasion. To support the launch, from December OAK will be giving consumers the opportunity to score some bespoke OAK teddy merchandise to celebrate the Aussie festive season. OAK fans can visit oak.com.au/Christmas for the chance to win OAK branded board shorts, t-shirts, and even an ‘ugly’ Christmas jumper. OAK Gingerbread is available in grocery and convenience outlets nationwide from 4 October.
Celebrity Chef Colin Fassnidge inspired the flavours of the new Red Rock Deli Chef Series
Red Rock Deli partners with Colin Fassnidge to launch Chef Series Red Rock Deli has partnered with celebrity chef Colin Fassnidge, drawing on his culinary creativity to inspire three restaurant quality flavours, as part of the Red Rock Deli Chef Series range. Fassnidge is famous for creating rich flavours and always pushing the boundaries, which makes this the perfect collaboration for Red Rock Deli. It was in his very own kitchen that he created the three mouth-watering dishes – Braised Beef Brisket with Caramelised Onion, Crispy Pork Belly with Apple Sauce, and Portuguese Chicken with Lemon and Oregano – that have been turned into Red Rock Deli potato chips. He worked side-by-side with the Red Rock Deli team to transform the dishes into chips through Red Rock Deli’s innovative iCrave Culinary Design Process, which sees culinary exploration, ideation, and flavour mapping to ensure the most accurate and flavoursome taste experience is achieved. “As soon as the opportunity for this collaboration came about, I knew I could create something special. I mean, how many times do you get to say a dish that you created was turned into a potato chip flavour? I helped inspire three,” Fassnidge said. Hind Simhairi, Senior Brand Manager, PepsiCo ANZ, said the collaboration with Fassnidge was a natural fit given his passion for creating beautiful food full of flavour. “The flavour concepts are tried and tested through our expert Red Rock Deli taste test team with only the gold standard recipes selected for the next development stage. We only wanted the best new flavours for which Colin’s dishes have certainly delivered through the Red Rock Deli Chef Series.” The Red Rock Deli Chef Series is available now nationwide with an RRP of $4.65.
40 October/November 2021 | C&I | www.c-store.com.au
PRODUCT RANGING
The perfect balance of quality and convenience The House of Robert Timms delivers an innovative and unique coffee experience, with Café Series Coffee Bags, created with real dedication to quality and flavour using 100 per cent Arabica beans from around the world. Convenient, easy to use and individually wrapped for freshness and portability. The Café Series Coffee Bags are perfectly preportioned quality serves resulting in consistency in every cup. They are a no-mess, no-fuss solution so you can brew coffee anytime, anywhere. Simply drop the coffee bag in a cup of hot water and achieve amazing tasting café-quality coffee in moments. The coffee bag format and quality attributes are driving new coffee occasions, perfect for at home, at work, the outdoors, and the weekend road trip. The range consists of authentic blends, medium and dark roast coffee, with each box holding 10 single-serve coffee bags. Proudly blended and roasted in Australia, the Café Series Coffee Bag range is synonymous with The House of Robert Timms' philosophy to deliver the best
coffee experience without having to compromise on quality and consistency. Celebrating 70 years of craft and care in every cup, The House of Robert Timms makes great coffee look easy. Find out more about The House of Robert Timms Café Series Coffee Bags today. Get in touch with the FreshFood Services customer service team on 1800 888 996 or www.RobertTimms.com for further details.
The range consists of authentic blends, medium and dark roast coffee.
PRODUCT PRODUCT NEWS RANGING
Two amazing new product launches from Australia’s Violet Crumble Australia’s Violet Crumble and Bickford’s Australia have joined forces to create a refreshingly new and caramel-y way to shatter cravings. The new Violet Crumble Caramel Honeycomb Milk is the second product launched as a collaboration between the two iconic South Australian brands. Made using 95 per cent Australian ingredients, the delicious Caramel Honeycomb Flavoured Milk comes in a 500mL, 100 per cent RPET bottle, contains no preservatives, artificial sweeteners, colours or flavours and boasts a nine-month shelf-life. Following the success of the Violet Crumble Chocolate Honeycomb Milk that launched in October 2020, the team identified an opportunity to further expand the range based on the trending movement of caramelised white chocolate and honeycomb. The launch of the Violet Crumble Caramel Honeycomb Milk drink coincides with the launch of the new 100g Violet Crumble Caramel bag into petrol and convenience (P&C) and offers consumers two delicious ways to enjoy the flavour combo. Amelia Wright, Bickford’s Australia, Brand Manager, says: “Having seen the success of brand collaborations firsthand with the launch of the Violet Crumble Chocolate Honeycomb Milk, we had no doubt that we wanted to continue to increase value to the consumer and enhance the brand experience by releasing Violet Crumble Caramel Honeycomb Milk. “This product not only combines two iconic South Aussie brands but also combines two iconic Aussie flavour favourites – caramelised white chocolate with honeycomb.” The products are available in South Australia from 4 October at On The Run and available nationally from 25 October at Coles Express, IGA, Drakes, Foodland, Foodworks and leading independent retailers for RRP $4.50. For sales enquiries, contact Bickford’s Australia on email: info@bickfords.net and telephone: +61 8 8182 1888 or visit: www.bickfords.net.
An absolutely MUG-nificent range from Smooth Wholesales
Impulse retailing experts, Smooth Wholesales, introduced an exciting novelty mug range into service stations and convenience stores earlier this year and the results have been outstanding. “Being a big coffee drinker myself, I have a novelty mug that I received as a gift by my side each morning, so I can definitely see why customers love this product,” says Tal Avrahami, Managing Director, Smooth Wholesales. The range includes a number of options including licensed mugs featuring some of the world’s biggest rock bands such as AC/DC, Elvis Presley and Johnny Cash as well as popculture movies and TV shows. Additionally, there are some very eye-catching display stands and countertop display units with named mugs and endearing sayings. “Coca-Cola has shown us that something as simple as putting a customer’s name on the side of a beverage can have a significant impact on sales. One of our best-selling products over the last three months has been the novelty retro mug stands with personalised names. We’ve seen this product sell out at stores all over the country. It’s easy to set up, it looks great, and it really does draw a crowd.” However, if caffeine isn’t your drink of choice, there’s another product that’s caught the eye of customers in-store. “The novelty stubby holders are classic and have really resonated with people. They’re a bit quirky, but every store that’s put these out on display keeps asking for reorders so they’re doing something right.” The team at Smooth Wholesales has been trialing a number of new products at select stores across the country, building out sales profiles to match different demographics and locations. “We’re not just here to sell, sell, sell. We want to help our customers strategically plan and execute good sales techniques so that they can see their shop performance improve.” 42 October/November 2021 | C&I | www.c-store.com.au
Don’t Sell Poison to your Customers Don’t Sell Poison Poison to to your Customers Customers
As Retailers who sell E-Cigarettes and Vape products, you have the responsibility to abide by the legislation. Current laws state that Nicotine cannot be sold in non Pharmacy outlets. Nicotine is classified as a poison by TGA and therefore illegal to sell.
There are Legal Zero-nicotine options As Retailers Retailers who sell sell E-Cigarettesand andVape Vapeavailable. products,you youhave havethe the As who E-Cigarettes products, responsibility to abide by the legislation. Current laws state that
responsibility to abide by the legislation. Current laws state that How tocannot tell that you may be selling illegal nicotine Nicotine cannot be sold soldin innon nonPharmacy Pharmacyoutlets. outlets.Nicotine Nicotineisisclassified classified Nicotine be Vape products? as a poison by TGA and therefore illegal to sell. as a poison by TGA and therefore illegal to sell. Make sure you are purchasing from bona fide suppliers who are not There are Legal Zero-nicotine options Thereto are Legal Zero-nicotine options available. trying make a quick buck by luring you in available. their illegal network, ensure the following:
How to tell that you may be selling illegal nicotine How to tell that you may be selling illegal nicotine
•Vape Legal importers must have their Australian company and phone products? Vape products? contact on the packaging. You can ask for ABN and Registered Make sure you are purchasing from bona fide suppliers who are not company Make sure youaddress are purchasing from bona fide suppliers who are not trying to make a quick buck by luring you in their illegal network, trying to make a quick buck by luring you in their illegal network, •ensure Even if following: they say that the product has Zero nicotine, we are aware the ensure the following: that some illegal operators are trying to beat the system by not • Legal Legalimporters importersmust must havetheir theirAustralian Australiancompany companyand andphone phone • declaring nicotine in have the ingredients list contact on the packaging. You can ask for ABN and Registered contact on the packaging. You can ask for ABN and Registered • company Ensure that they have a proper website and office address company address address
Caveat Emptor BUYER BEWARE!
•• Even Enquire whether they have Public Liability Insurance should there Evenif ifthey they saythat that the product has Zeronicotine, nicotine, we areaware aware say the product has Zero we are be any major claims or issues with the product you are selling – thatsome someillegal illegaloperators operatorsare aretrying tryingto tobeat beatthe thesystem systemby bynot not that this is your responsibility! declaring nicotine in the ingredients list declaring nicotine in the ingredients list •• Ensure Ensurethat thatthey theyhave havea aproper properwebsite websiteand andoffice officeaddress address •• Enquire Enquirewhether whetherthey theyhave havePublic PublicLiability LiabilityInsurance Insuranceshould shouldthere there bebeany anymajor majorclaims claimsororissues issueswith withthe theproduct productyou youare areselling selling–– this thisisisyour yourresponsibility! responsibility!
TabSol and Invibe introduce TSVo Tribal Spirit Vapes - Australia’s first zero nicotine responsible vaping range TabSol and Invibe introduce TSVo Tribal Spirit Vapes - Australia’s first zero nicotine responsible vaping range
TabSol Australasia has partnered with Invibe Australasia to introduce what they say is Australia’s first responsible vaping range. Pradeep Kumar, Director, Invibe Australasia, said the Tribal Spirit Vape range – TSVo – has been voted by TabSol Australasia Australasia has partnered with Invibe Invibepackaged Australasia TabSol partnered with Australasia retailers as the besthas quality and responsibly to introduce what they say is Australia’s first responsible to introduce they in say is market. Australia’s first responsible zero nicotinewhat products the vaping range. studied the market and had an internal vaping range. “We carefully Pradeep Kumar, Director, Invibe Australasia, Australasia, said the the Pradeep Director, Invibe said sensory andKumar, focus group assessment before deciding Tribal Spirit Vape range – TSV o – has been voted by Tribal range – TSVo – has been voted by on theSpirit best Vape option,” he said. retailers asAustralasia the best best quality quality and responsibly packaged retailers as the and responsibly packaged “TabSol with its presence in the tobacco zero nicotine products in the market. zero nicotine in the market. category wasproducts the obvious choice as the sole wholesale “We carefully carefully studied the market market and and had had an an internal internal “We the distributor in thestudied market.” sensory and focus group assessment before deciding sensory and focus group assessment before deciding The key elements that distinguish TSV o from other on the theproducts best option,” option,” he said. are: on best said. vape in thehe market “TabSol Australasia with vape its presence presence inTSV theotobacco tobacco Australasia with its the 1. “TabSol Best quality disposable device –in has a category was the obvious choice as the sole wholesale category obvious choice as thethat solemakes wholesale classy was light the polished metal encasing it look distributor in the the market.” market.” distributor elegant in compared to other cheap plastic options. The key elements that distinguish distinguish TSV from other TSV oo from other 2. The Thekey zeroelements nicotine that liquid is one of the best tasting vape products in the market are: vape products in the market are:mostly natural ingredients. e-liquids which is made from 1. Popular Best quality quality disposableflavours vape device device TSVoo has has 1. Best vape TSV aa 3. and disposable innovative – zero––nicotine vapers classy light polished metal encasing that makes look classytasteful light polished metal encasing that makes itit look seek flavour combinations. TSV o has 11 different elegant compared to other cheap plastic options. elegant to other plastic options. flavours compared and is working with cheap local labs to create more. 2. The The zero zero nicotine nicotine liquid liquid is is one one of of the the best best tasting tasting 2. e-liquids which which is is made made from from mostly mostly natural natural ingredients. ingredients. e-liquids 3. Popular and innovative flavours – zero nicotine vapers 3. Popular and innovative flavours – zero nicotine vapers
4. Leak proof functionality – the manufacturer’s sealing technology minimises any leaks during distribution and usage. 5. Better value – TSVo comes in 600 and 1,800 puff options. 4. Leak Leak proof proof functionality functionality the manufacturer’s manufacturer’s 4. –– the 6. Responsible retailing – all packaging comes with sealing technology minimises anyand leaks during sealing technology any leaks during ‘WARNING: Strictlyminimises for 18 years over’ – being the distribution and usage. distribution and usage. first vape brand to have this warning. Despite being 5. Better Better value value – TSV TSV comes inwill 600 and 1,800 1,800 5. oo comes 600 and nicotine free –we believe thatin remind retailers to only puff options. puff to options. sell adult consumers. 6. The Responsible retailing all packaging packaging comesbattery with life 6. Responsible retailing –– all comes with 7. disposable pod comes with extra-long ‘WARNING: Strictly for 18 years and over’ – being the the ‘WARNING: Strictly for 18 years and over’ – being to ensure puff consistency. first vape brand to have this warning. Despite being first ovape to have this warning. Despite being 8. TSV has brand been designed to be a closed system, which nicotine free we believe that will will can remind retailers to to only only nicotine free believe that remind retailers is safer as nowe other substances be added. sell to adult consumers. adult consumers. 9. sell The to packaging has been attractively designed to 7. The The disposable disposable pod comes comes witheasier extra-long battery life 7. pod with extra-long battery life represent the flavours. It is also to retail as single to ensure puff consistency. to ensure consistency. units with puff individual barcodes. 8.Retailers TSVoo has hascan been designed totheir be aaTSV closed system, which 8. TSV been designed be closed system, also combineto o orders with which is safer as no other substances can be added. is saferpopular as no other substances TabSol’s Tobacco range. can be added. 9.To The packaging haswww.store.tabsol.com.au been attractively attractively designed designedand to get 9. The packaging has been to order online visit represent the flavours. It is also easier to retail as single represent the flavours. It is also easier to retail as single initial order discounts. units with individual barcodes. units with individual Or contact TabSol viabarcodes. email: info@tabsol.com.au or Retailers can also combine their TSV TSVoo orders orders with with Retailers can also combine their phone: 0413 690 069 or 02 90371478. TabSol’s popular Tobacco range. TabSol’s popular Tobacco range. October/November 2021 | C&I | www.c-store.com.au To order order online online visit www.store.tabsol.com.au www.store.tabsol.com.au and get get 43 To visit and initial order discounts. initial order discounts.
OPINION
COVID LOCKDOWNS
– THE BIG GET BIGGER WHILE THE SMALL GET SMALLER THEO FOUKKARE CEO, AACS
Small business and convenience stores don’t want special treatment. We just want to be treated fairly and on the same basis as the bigger guys.” – Theo Foukkare, CEO, AACS
W
Theo Foukkare, CEO, AACS, highlights how lockdowns have disproportionately benefitted big business at the expense of small business.
e all understand why lockdowns are considered necessary to fight COVID-19. But one of the worst outcomes of these lockdowns is that they are socially inequitable. The unfortunate truth is lockdowns disproportionately impact those who are already less well-off, forcing them to isolate in their smaller homes and apartments and preventing them from earning a living in their largely blue-collar and service industry jobs. While many understand that small business has been hit by rolling COVID-19 lockdowns and border closures, what few may realise is the significant encroachment big business has made on market share during this period. In fact, it would be fair to say, during the COVID pandemic, big business has gotten bigger, while small businesses have struggled to simply survive. As far as health bureaucrats and politicians have been concerned, from day one of the pandemic there has never been any question that the big supermarket chains were an essential service and should remain open. In contrast, we and other small business organisations have had to fight every step of the way to have it accepted that smaller convenience stores selling exactly the same essential products should be allowed to stay open. Sometimes we have been successful, sometimes not. For example, currently in most states’ lockdowns, small tobacconists are forced to shut. But the big supermarkets are allowed to stay open, selling exactly the same product. Apparently, they are safe whereas the smaller store is not. Recently the NSW Chief Health Officer doubled down on this, encouraging supermarket shoppers to go to major chains, as opposed to the smaller local stores where they might meet friends and ‘congregate’. I am not a health bureaucrat, but I suggest it could just as easily be argued that having people travel a shorter distance to their local convenience store, where they will mix with fewer people from a smaller area, is preferable to a potential super-spreading event at a large supermarket. Since the start of the pandemic, authorities have also been strongly encouraging people to purchase online and through click and collect. This has now gone to the extent where one major alcohol outlet’s operations are being reconfigured to
44 October/November 2021 | C&I | www.c-store.com.au
allow consumers to simply pull up, open their boot, have their purchases loaded up and off they go in under a minute, while online orders from another can be delivered to your front door within the hour. Meanwhile, small business without the resources to develop sophisticated websites or the ability to reconfigure retail sites to allow for drive through operations are struggling just to get by, and permanently losing market share. To understand how badly the little guy is being treated, you only have to look at the approach of NSW Health with recent announcements that frontline staff at Woolworths, Coles, Aldi and IGAs in the locked down LGAs will receive their COVID jabs. But if you work at a smaller convenience store or a small business there are no special exceptions to allow you to get your COVID jab as a priority. What signal of small business frontline workers not having their COVID jab sends to the community is disturbing enough but it’s not just state health bureaucrats and politicians favouring big business during lockdown. A couple of weeks ago, the Federal Government announced that supermarkets would be allowed to employ foreign students in excess of the 40 hour per fortnight cap that currently applies. Yet again, these measures do not appear to apply to smaller operators and convenience stores selling the exact same products. Apart from being grossly unfair to the small operators during lockdown, all these measures drive permanent market share to the bigger supermarkets at the expense of the small operators. They are the centre of our local communities and are particularly vital in regional areas and remote towns. Indeed, in times of lockdown and COVID restrictions, it has been local stores that have been most accessible and indeed most critical. There are already too many empty corner stores and convenience outlets because of the encroachment of big business over recent years. Let’s not make that worse. Small business and convenience stores don’t want special treatment. We just want to be treated fairly and on the same basis as the bigger guys. C&I
info@patties
.com.au
OPINION
SEIZE THE DAY
Darren Park, CEO, UCB Stores, discusses how uncertainty continues to drive new customers to the convenience channel.
S
DARREN PARK CEO, UCB Stores
As an industry and as individuals, we must be in this for the long haul and continue to innovate how convenience stores operate to deliver optimum service across the board.” – Theo Foukkare, CEO, AACS
afe, local, convenient. The past 18 months in Australian retail have been filled with unprecedented disruption and adaptation and has seen the role of petrol and convenience (P&C) retailers grow in importance. As Australians’ shopping habits have been forced to shift, it’s become even more vital that we step up to maintain our own newfound momentum and thus ensure we secure our share of retail spend. The impacts of COVID restrictions have seen more customers visiting our stores more often. Our position as ‘the local store’ and the convenience of our offer, has perfectly suited the retail climate. New shopping missions have brought new customers to our stores, and we have become trusted, reliable, and valuable members of our local communities. But how long can we expect this window of opportunity last? Despite fears that 2020 was an anomaly, the latest figures from the AACS State of the Industry Report suggest that the convenience channel is still in a healthy position. The second half of 2020 was strong, and the first half of 2021 saw us grow by +7.9 per cent and +7.8 per cent in quarters one and two respectively. But these figures were on the cusp of the 2021 NSW and Victorian lockdowns commencing. While some variables such as lockdown duration and category nuances will have an impact on the remainder of the year, this is a positive start for us all. However, we must continue to provide the safe, convenient shopping locations that our customers have become accustomed to. Continued lockdowns in NSW and Victoria will remain in place for much of Q3 and possibly early Q4, so it is likely we will see some challenging times ahead, which means we cannot rest on our laurels. Doing what we do and doing it well is the key to our success. We are seeing fresh growth, but our staples such as comfort foods are still strong and must remain in focus. The latest NACS Convenience Voices (2020) report suggests that the ‘at home’ economy continues to maintain strong momentum as restrictions remain in place. As long as limited individual travel remains the norm, most consumers (46.7 per cent) are keeping their trips to short, local occasion shops, for essentials and staples. This gives me confidence that we will continue to benefit from
46 October/November 2021 | C&I | www.c-store.com.au
delivering vital services to our communities during these difficult times. In fact, I see this as an opportunity for us to consider how we can evolve our channel. Recently on a State of the Industry webinar, we looked at the ‘Future of Convenience’ and saw some great ideas that can guide us towards a vibrant, valuable, and viable future convenience channel. The consistent theme was that although we are a commodity-driven channel, at a time when choices for customers are many, our channel’s greatest opportunities lie in improving our service levels. For our retailers and stores, we must consider and explore how we can become genuinely service-driven businesses. Whether it’s best in class customer experience instead of simply ‘transactions’, tailored and personalised experiences for shoppers, instant or ‘frictionless’ shopping, or even exploring hyper-localised and differentiated product ranges, there are many ways we can make our channel experience special for customers. We must seize every opportunity, which is every customer who comes through the doors. They must feel welcome and special – it must feel like they are at their ‘local’. Our trade and distribution partners can also help us improve, with a service focus of their own. From trade partners leveraging the unique, brand-building qualities of our channel with targeted and exclusive products, promotions, and competitive pricing, to wholesalers helping our stores with benchmark efficient and effective service, we can all work together to create a stronger, service-driven future for the channel. I’ll close by saying that maintaining (let alone growing) our relevance and value to Aussie consumers post-COVID is not a quick fix, these are difficult and dynamic times. As an industry and as individuals, we must be in this for the long haul and continue to innovate how convenience stores operate to deliver optimum service across the board. Remember, according to Australia Post research in March 2021, online retail sales currently represent only 16.3 per cent of total retail sales, meaning 83.4 per cent of sales are through bricks and mortar stores. Let’s makes sure bricks and mortar continue to be that great place to shop, where service stands out. This is an exciting time for all of us and I look forward to being a part of it with you. C&I
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OPINION
NAVIGATING RETAIL MARKETING IN THE COVID AGE OF AGILITY Retail marketing’s scope has expanded and become more complex amid COVID requirements for agility, according to Shop! ANZ’s latest survey.
NORRELLE GOLDRING Global Consultant
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etail marketing has matured. It is not just ‘in-store’ anymore. On the other hand, effective execution, and strategy in the face of channel and touchpoint proliferation and the need for flexibility during COVID is increasingly challenging. That’s one of the recurring themes in the Shop! ANZ State of Retail Marketing 2021 industry survey of manufacturers, retailers, and related agency suppliers. The survey has run approximately every three years since 2010. Below is a roundup of some of this year’s key findings.
PRE-STORE AND DIGITAL TOUCHPOINT USE EXPLODE IN CAMPAIGNS
We are seeing an increasingly integrated, more holistic, less purely physical store approach to retail marketing.” – Norrelle Goldring
Eleven years ago, when we ran the first Shopper Marketing Industry Benchmark Survey, ‘shopper marketing’ was considered to be mostly in-store execution at shelf and off-location displays. The first augmented reality product execution didn’t come until a year later, and online shopping was still relatively minor. Fast forward to 2021, four surveys, and an 18-month pandemic later. We are now in a world of diversified commerce channels and fragmented communications touchpoints. In this year’s study, 87 per cent believe the scope of retail marketing to encompass ‘pre-store’ shopper journey stages, touchpoints, and activations. Three quarters (75 per cent) of participants believe the scope of retail marketing includes digital activations, regardless of location in or out of store. More than 40 per cent of retail marketing budgets are estimated to be allocated to digital elements. A third of brands (35 per cent) are using digital elements in all their retail marketing programs, and eight in 10 brands are using digital elements at least half of the time. Social media is being used by three quarters of the industry for ‘pre-store’ campaign communications frequently or always, and nearly half (43 per cent) are using direct means such as eDMs frequently or always. Both are higher than the 36 per cent using traditional above-the-line media for retail marketing campaigns. In this year’s survey, not a single brand, retailer or agency said that none of their programs involved digital. Many, if not all, retail marketing programs now include digital elements. These may be in-store as well as pre-store, such as promotions and offers that can be redeemed using a smartphone. COVID and its attendant store closures and lockdowns has not only accelerated online shopping but also the industry’s use of digital touchpoints to reach shoppers.
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IN-STORE BECOMES MORE STREAMLINED, AND SUSTAINABLE
This year’s study saw an increase versus the 2017 survey in both category and occasion led campaigns, and retailer led campaigns. The pandemic has seen an increase in the use of semipermanent (rather than temporary) POS for reasons of real estate holding, budget saving, sustainability and reducing the store visits from brands’ sales and merchandising people. Retailers have been reducing display numbers to allow for social distancing in-store and are thus becoming increasingly choosy about which displays to take. This has put a premium on the available display space. As many retailers don’t want to see reps and merchandisers in stores, they are increasingly requesting easy to assemble displays that store staff can quickly erect themselves. Also, for COVID safety reasons, 2020 and 2021 have seen a downturn in sampling, demonstrations and experiential events, although we would expect to see these to reappear in more programs as pandemic restrictions ease. In the meantime, in the absence of in-store demonstrations, product trial is evolving in the virtual space and in pop-ups. There was already a growing focus on sustainability, but the pandemic has thrown sustainable supply chains into the mix including sourcing product and materials locally. One in five said that more than 75 per cent of retail marketing programs had sustainability requirements, and the sustainability programs and push by retailers was noted.
POST STORE ACTIVATIONS UNDER-UTILISED Even though 68 per cent believe the scope of retail marketing involves post-store activations, only 21 per cent are activating loyalty programs, six per cent coupons for repeat purchase, and eight per cent incentivising consumer advocacy and reviews. In an environment where postpurchase journey stages are elongating and increasing in importance with the growth of online and digital channels including direct to consumer, post-store activations have much room for growth. Overall, we are seeing an increasingly integrated, more holistic, less purely physical store approach to retail marketing. This has made it more complex, if more interesting, to execute. Copies of the Shop! ANZ 2021 State of Retail Marketing report are available for $295 (+GST). For further information or to obtain a copy email shop@shopassociation.org.au or visit www.shopassociation.org.au. C&I
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OPINION
LAURIE WESPES Founder and CEO, Snooper
Confectionery dominates the counter display at 7-Eleven, Yarraville VIC, April 2021
HEALTHY SNACKS:
ARE THEY HIDING IN PLAIN SIGHT? Better for you snacking has increased through the pandemic, but healthy snacks share of store space hasn’t.
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Confectionery still dominates the counters in convenience.” – Laurie Wespes, Founder and CEO, Snooper
ccording to Mondelēz International’s latest annual State of Snacking Report, the pandemic has increased snacking overall, with 58 per cent of global consumers surveyed saying their elevated levels of snacking were likely to continue into the ‘new normal’ beyond the pandemic. A recent category report published in Convenience & Impulse Retailing magazine, identified that snack foods were showing the strongest growth seen in three years, partially being driven by healthy snacks. Having raided their pantries and put on ‘COVID kilos’ in the initial lockdowns early in the pandemic, consumers are not planning to stop snacking, but are increasingly switching to healthier snack options. These include products with immunity boosting ingredients, cereal and snack bars including protein bars, plant-based snacks, and veggie chips. Convenience stores have responded by increasing their range of better for you snacks with brands such as Purabon and Mount Elephant. 7-Eleven even launched its own range of protein bars. But are healthy snacks fairly represented and easy to find in convenience stores? We asked our Snoopers to find out. In the majority of convenience store branded banners, snacks are ranged in several front of store areas including the counter, the queuing area, and both temporary and
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permanent front of store displays. However, Snooper data found that chocolate, lollies, and mints currently overindex in their share of space in these areas. And this is within the context of the convenience channel having the greatest variety of snack types at front of store versus supermarkets. Confectionery still dominates the counters in convenience. Perhaps unsurprisingly then, the healthy snacks category came in a lowly 11th in front of store touchpoints in branded banner stores. Coles Express had the highest penetration of healthy snacks at front of store compared to bp, Ampol, and 7-Eleven. This doesn’t take into account other store areas dedicated to healthy snacks in bp and 7-Eleven such as specific store zones and displays. Healthy snacks have even less presence at front of store in non-banner stores, coming in as the 19th category for front of store availability. This may be due to a broader snack offering range in these ‘unbranded’ stores, as well as a lack of designated zone or store area for healthy snacks. Non-banner stores, and some of the banners, have an opportunity to increase space devoted to healthy snacks with off-location displays. So, to some extent healthy snacks are hiding in plain sight, or at least hiding from the front of store. It’s time for them to gain their fair share of representation and visibility given the growth of the category. C&I
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PETROL NEWS INDUSTRY NEWS
GRINDERS COFFEE ROASTERS:
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tarting your day right means starting with a quality cup of coffee; and who better than Grinders Coffee Roasters to ensure you get the quality coffee you deserve! Their philosophy is simple – produce that perfect cup of coffee. Grinders Coffee Roasters was born on the streets of Melbourne by coffee powerhouse Giancarlo Gusti, who created a coffee brand to enjoy with his friends; and now 60 years on, the business continues to dedicate itself to sourcing, roasting, and delivering the best single origin and blended coffee in Australia. Grinders Coffee Roasters is one of the largest roasters in Australia and in addition to its flagship Grinders brand, it has a successful portfolio of other leading brands such as Giancarlo, SoCo and a variety of capsules under the Nespresso and the Caffitaly systems. Not to mention the custom roasting and branded packaging supplied to hundreds of cafés around the country! Sustainability is a key part of Grinders Coffee Roasters' success in Australia as it continues to strive to deliver more sustainable options for its customers. The new Grinders compostable capsules, launched this year, are a true testament to that commitment. The capsules, roasted and packed in Melbourne, are made from bio-based compostable resin, and enable the capsule, lid, and contents to be disposed of for industrial composting. Grinders Coffee Roasters is only one of a handful of coffee roasters delivering coffee that is better for the planet but still retains the flavour. When you order from Grinders Coffee Roasters, you can be guaranteed of the quality and consistency of the coffee and its origins from around the world. With the help of its master roaster and bean hunters, Grinders Coffee Roasters sources high grade green beans from South and Central America, Africa, India, East Timor, Indonesia, and PNG, including micro-lots direct from farms. It also partners with leaders in sustainability, including Rainforest Alliance, to ensuring ethical sourcing, and manufacturing excellence throughout their entire production line. Every part of the process is nothing short of perfection. The roasting,
blending and ratio refinement processes undertaken to create coffee is truly an unteachable art form. Grinders Coffee Roasters Master Roaster, Giuseppe Cianchi (yes there is a Master Roaster), puts it best, saying: “Becoming a master in any profession requires a high level of skill that can only be obtained with years and years of practice.” They strive for excellence in quality and efficiency, and work with one of the industry’s leading roasting experts to ensure their roasting processes are optimised for quality and consistency, enabling them to deliver better outcomes for customers and the environment. The roastery in Melbourne is where all the magic happens, utilising the latest technology and innovation to create perfect roasts. Grinders Coffee Roasters is the first coffee roaster in the southern hemisphere to invest in the V400 Colour Sorter. The V400 Electronic Colour Sorter works to ensure that only perfectly roasted, whole beans make it into every bag. The Colour Sorter uses a series of 16 cameras, eight colour and eight infrareds, which analyses the size, shape, colour and density of the beans, ejecting inferior product through a series of 288 air ejectors. Through its membership with the Australian Coffee Traders Association and relationships with Huhtamaki, Caffitaly and Planet Ark, Grinders Coffee Roasters is committed to packaging neutrality by 2030, and continually working towards phasing out unnecessary and single-use packaging through improved design, innovation, or the use of recycled alternatives. Behind Grinders Coffee Roasters' success is its field teams who are located right throughout the country, delivering specialised, high-quality support for all its customers, big or small. It is what makes Grinders Coffee Roasters different to its competitors. It offers a tiered training program through classroom and in-café settings, shared knowledge, and innovation learnings, extensive crop to cup coffee education, as well as building knowledge and practical skills. Grinders Coffee Roasters is committed to delivering on its partners' unique business needs by investing in them, helping them find the perfect coffee blend; and creating a memorable experience. C&I
Grinders Coffee Roasters is committed to delivering on its partners' unique business needs by investing in them, helping them find the perfect coffee blend; and creating a memorable experience.”
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PRODUCTNEWS INDUSTRY NEWS
SPAR AUSTRALIA BREAKS GROUND ON NEW DISTRIBUTION CENTRE
SPAR Australia has commenced construction of a new 13,400sqm distribution centre at Acacia Ridge Business Park in Brisbane. Lou Jardin, Managing Director, SPAR Australia, said the new state of the art facility will allow SPAR to consolidate its business and will provide a platform for future growth. SPAR has signed a 10-year lease as one of the anchor tenants of Acacia Ridge Business Park, which is being redeveloped by owner, ESR Australia. The purpose-built distribution centre will facilitate fresh, chilled, and frozen foods, and will service the needs of SPAR’s network of 200 independent retailers.
CONVENIENCE STORES CONTEST ALLEGATIONS OF NICOTINE VAPE SALES TO MINORS The Australian Association of Convenience Stores (AACS) has strongly contested claims about the alleged sale of nicotine containing vaping devices to minors by convenience stores. Theo Foukkare, CEO, AACS, represents the interests of responsible retailers within the convenience and service station industry in Australia.
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“SPAR has worked hard over many years to build the platform for the growth we are currently experiencing. This gives us enormous confidence for the future and I’m very appreciative that ESR has shown confidence in SPAR to be the cornerstone of this new development,” Jardin said. Acacia Ridge Business Park is located within Brisbane’s prime established industrial precincts. Ideally situated on an arterial road that provides easy access to Brisbane’s major transport links, the site is close to Acacia Ridge Intermodal Terminal and Archerfield Airport, and 13km from Brisbane CBD.
He says that these allegations of bootleg nicotine vape sales to minors are without merit and defends the high standards of AACS members when it comes to the sale of regulated products such as tobacco. “Our retailers have extremely high standards, especially when it comes to selling tobacco related products, and anything with regard to youth,” he says. “It is illegal to sell tobacco products to anyone under 18 years of age, and our members strictly abide by this. In fact, most of our members have a policy to ask for proof of age if a customer looks to be under 25. “In addition, nicotine containing vaping products are illegal for any Australian retailers to sell today, either in-store or online. “Zero nicotine containing vaping products are legally able to be sold in some states and fall under each state’s strict Tobacco Act, which all include compliance measures such as 18-plus, restriction in their display and a host of other restrictions. “The AACS supports strong government regulation on vaping to ensure that responsible adults who choose to purchase zero nicotine vapes are provided within a set of guidelines, which includes the introduction of a clear flavour convention that is not targeted or to be preferred by those not of legal age. We commend the New Zealand Government on their regulatory approach to vaping which came into place recently. “We also want to see stronger action to prevent the illicit importation of nicotine containing vapes, disguised as zero-nicotine products and sold via illegitimate retailers or on the black market. “Illegal retailing of illicit tobacco products has been occurring for years in Australia, and the AACS is working with Federal and State Authorities to drive greater enforcement and fines to eradicate this. “We want to stamp out illegal tobacco and nicotine containing vape sales just as much as anyone else, and if anyone has information about retailers who are illegally selling nicotine vaping products, I urge that this be brought to the attention of authorities, with our full support,” Foukkare said.
INDUSTRY NEWS
ANDREW POORE APPOINTED GENERAL MANAGER SALES FOR AUSTRALIA & NEW ZEALAND AT PACIFIC OPTICS Andrew Poore will relocate to Australia to take up the General Manager Sales position that was previously held by current AACS CEO, Theo Foukkare.
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ndrew Poore has been appointed as General Manager Sales for Australia and New Zealand at Pacific Optics and will relocate to Australia to take up the role. The General Manager Sales role was previously held by Theo Foukkare for more than 17 years until he was appointed as the new CEO of the Australian Association of Convenience Stores (AACS). Poore has a long history with Pacific Optics, dating back to 2005. Most recently he was working as the General Manager of Signature Marketing NZ, which is the New Zealand based sister company to Pacific Optics. In his new Trans-Tasman role, he will continue to lead the New Zealand business while residing in Australia and leading the Australian National Accounts team. Pre-Covid, in his role as the General Manager of the NZ business, Poore was spending around one week out of every month in Australia, so he is already very familiar with the Australian market. But he is looking forward to getting out and meeting customers once he has relocated. “For me, the priority is always customer, customer, customer. And figuring out what we can do to improve our customer satisfaction and in turn help them to be more successful,” Poore told C&I.
“It’s about getting back to basics and truly understanding what our customer is looking for – because every customer and their business is different. “If we look back 20 years ago, you’d go into a service station and buy a cold drink and a chocolate. Today, service stations can range from very upmarket cafes to an automotive supplier. The channel is very varied, and it differs state by state as well. So, I’m really looking forward to bringing the focus onto each individual customer and really understanding their needs. Because our customers are our partners, and without our trade partners, what are we doing it for?” C&I asked Poore what he enjoys most about the convenience industry, and he said it is the challenge of staying ahead of an ever-changing market. “Every business evolves, but the convenience industry is still very much reactionary,” he said. “Particularly with our portfolio, such as our technology products. Technology evolves at such a rapid pace that we need to make sure that we’re getting all our products to market at exactly the right time for our customers. It’s the same with our sunglasses, which are constantly changing with styles, colours and lens variations.
It’s about getting back to basics and truly understanding what our customer is looking for – because every customer and their business is different.” – Andrew Poore, General Manager Sales Australia & New Zealand
Andrew Poore, General Manager Sales, Australia & New Zealand, Pacific Optics
“In general, the convenience industry is continually changing and I’m loving the direction that it’s going. Service stations are now so much more than just somewhere to grab a pie and a drink! “Take home and delivery services will continue to grow rapidly. Our general merchandise products should be part of this grocery top up basket, particularly as we see more people working from home.” When it comes to challenges facing the channel, Poore says that the greatest test is to continue growing the convenience retail opportunity. “We have benefitted from converting grocery shoppers into more regular convenience shoppers. So, the next challenge is to grow the size of that opportunity,” he says. “The transition from being seen as a service station with a convenience offer to now being seen as a true convenience retail destination, is the greatest opportunity – and one that we are here to help our customers with.” Poore officially starts as General Manager Sales for Australia and New Zealand on 1 October and will relocate as soon as borders reopen. “Building strong customer relationships is my passion and has been pivotal to the success of our NZ business. I hope to be able to inspire my new team at Pacific Optics Australia to share in that passion, and that together we can continue to build strong and successful partnerships with our customers.” C&I October/November 2021 | C&I | www.c-store.com.au 55
INDUSTRY NEWS
FIGHTING THE BAD GOODS Among the chaos created by COVID-19, one problem has remained stubbornly in-place: illicit cigarettes, which make up a significant amount of the tobacco market in Australia. Sponsored Content by Philip Morris Limited
Compliance to the law and effective enforcement against criminals profiting from illicit trade is an absolute must.”
- Alvise Giustiniani, Vice President, Illicit Trade Prevention
I
n March 2020, as governments around the world scrambled to figure out how to deal with the novel coronavirus, Jacek Olczak, who was soon to be named the new CEO of Philip Morris International (PMI), wrote to his staff urging them to work from home if they could.
would continue to best serve its 5,000-strong customers, who were also operating in a great deal of ambiguity.
A few days later, Australia was to be plunged into its first major lockdown, disrupting businesses, supply chains, social activities, education and more. Life as it had been known until then was to be over.
Among the chaos of this period, however, one problem has remained consistent – the illegal cigarette market, which continues to be a serious and growing threat to society.
Like most businesses, Philip Morris Limited (PML) in Australia began to put together business continuity plans and work out ways how to deliver products to its customers. The company owns some of the country’s leading cigarette brands, including Marlboro, Longbeach, Peter Jackson and Bond Street. First and foremost, the company wanted to ensure its people were safe and protected. And then it had to figure out how it
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Fast forward almost 18 months and everyone seems used to this way of living.
Cigarettes are among the most illegally trafficked goods in the world. The global black market for tobacco products is large and growing. The value of the illicit tobacco trade is estimated to be greater than the illicit trade in oil, wildlife, timber, arts and cultural property, and blood diamonds combined. In Australia, reports suggest illicit trade in tobacco represents 15 to 20 per cent of total tobacco consumption, corresponding to an estimated 2.1 billion illicit cigarettes annually.
INDUSTRY NEWS Legitimate businesses across all sectors in Australia are being undermined, from convenience stores to cornershop tobacconists. Through smuggling, counterfeit and tax evasion, governments are losing billions in tax revenues and consumers are being exposed to poorly made and unregulated products. PML says it hears time and time again from its customers that illicit cigarettes are hurting their legitimate business dearly. They’re all saying the same thing: there is a serious problem when it comes to enforcement in the fight against illicit trade. Those who are doing the right thing by not selling illegal products are being undermined by stores down the street who happily sell smuggled cigarettes for a cheaper price. As a result, everyone loses: retailers, wholesalers, government, manufacturers, and consumers alike. “It is crucial to protect consumers against counterfeits and that law enforcement, governments, and trademark owners such as ourselves in the private sectors come together as one to address and eradicate illicit trade,” says Alvise Giustiniani, Vice President, Illicit Trade Prevention. “Eliminating illicit trade is particularly important within the context of PMI’s transformation toward a smoke-free future, and we need to continue working in partnerships to address any potential illicit trade threats, including in our novel products. Compliance to the law and effective enforcement against criminals profiting from illicit trade is an absolute must.” Fighting against illicit tobacco trade is a long-standing priority for PMI. Eliminating illicit trade links directly to combatting corruption and organised crime, contributing to improving human rights, and environmental standards, principles that organisations involved in illicit trade surely ignore or violate.
Ultimately, the most effective way of reducing illicit trade in cigarettes is to help consumers identify the difference between legal and illegal products and the risks involved in purchasing illegal cigarettes. Unfortunately, low public awareness and understanding of the issue means that many smokers buy cheap, illegal cigarettes with little knowledge of where the product comes from, what it contains or the extent to which their money is contributing to organised criminal activity. No one government or single industry can address this complex problem on its own. Tackling illicit trade requires collaboration and public-private partnerships, making full use of existing expertise, information sharing, innovative solutions, and evolving technologies.
Eliminating illicit trade is particularly important within the context of PMI’s transformation toward a smokefree future.” - Alvise Giustiniani, Vice President, Illicit Trade Prevention
Public actors, the private sector and civil society alike all have a role to play. In today’s hyper-connected world – with growing concerns around global security, the proliferation of criminal organisations and the surge of new digital tools – we believe that it’s more important than ever to sustain our collective efforts and to promote an inclusive dialogue around solutions to tackle this global issue. C&I Sources: https://www.stopillegal.com/blog/detail/the-hidden-cost-of-illicit-trade KPMG Report, ‘Illicit Tobacco in Australia’, 2019 Full Year Report.
Compliance to the law and effective enforcement against criminals profiting from illicit trade is an absolute must.
Key elements of an effective effort to stop the illicit tobacco trade include: a policy framework that regulates the supply chain and severely penalises those involved in illicit trade; significant human and financial resources devoted to enforcement to ensure that laws are strictly applied, and criminals are brought to justice; and education campaigns that raise public awareness of the problem and its impact on society. The challenge is widespread across all retailers, and convenience stores certainly aren’t immune from the problem. The availability of cheap, fake, and unregulated cigarettes on the black market undermines efforts to reduce smoking prevalence and prevent youth from smoking. To tackle the illicit tobacco trade, PMI is working closely with a broad range of law enforcement authorities and private actors worldwide to identify and shut down counterfeiting and smuggling operations. Criminal gangs involved in smuggling are quick to respond to enforcement efforts. They change production centres, smuggling routes, and distribution networks in next to no time. For this reason, thorough, comprehensive, and regular monitoring to identify and anticipate changing trends and patterns is essential.
Sponsored Content by Philip Morris Limited October/November 2021 | C&I | www.c-store.com.au 57
If you supply to, own or work in independent grocery, a convenience store, service station, dairy, corner store or mini-mart, the C&I NZ EXPO is the only trade event you cannot afford to miss in 2022.
request an exhibitor prospectus now
Bringing together New Zealand convenience retailers and suppliers from all banners and brands for two days of education, networking and business building at The Cloud, Auckland. For more information visit www.candiexpo.co.nz Association Partner
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THE FUTURE IS Bright FOR C&I After 28 years of successful expos in Australia, the C&I NZ Expo made its debut in Auckland in September 2019. It was a huge success with incredible support and enthusiasm for the show from the NZ industry.
“We were absolutely blown away by the industry support for the inaugural C&I Expo NZ. The debut expo featured 70 exhibitors, huge foot traffic and over 220 industry professionals attended the Industry Symposium. We are looking forward to bringing the Expo back to Auckland in 2022 even bigger and better!” – Safa de Valois, C&I Commercial Director
Bringing together
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PETROL NEWS
THE IMPORTANCE OF TRAINING YOUR STAFF DAN ARMES Founder, ServoPro
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Dan Armes, Founder, ServoPro, explains that your business is only as good as your staff and why effective training for employees is essential.
mployees who receive consistent opportunities to learn, develop, and advance are great assets to your company. Proper staff training in any business is critical to your success and part of your legal responsibility as an employer. Specifically, petrol stations require adequately trained staff due the nature of the business including the presence of dangerous goods, such as fuel and other chemicals. New employees typically receive training during the induction process, but refreshers on the information they’ve learned in that training is invaluable. This article provides a detailed list of the various reasons you should ensure proper staff training.
LEADING REASONS FOR PROPER STAFF TRAINING
It’s vital to understand the importance of training staff. Here are the highlighted reasons for properly training employees at your petrol station. Increase staff effectiveness: Having well-informed staff increases productivity significantly. It can instill confidence, clarify expectations, and enhance employee engagement. Any employee that feels confident and engaged is increasingly apt to going above and beyond in their performance. Improve customer perceptions: When customers interact with your employees, they expect excellent service from knowledgeable staff. Petrol stations have 60 October/November 2021 | C&I | www.c-store.com.au
always been expected to offer high-speed service, but if your team fumbles over interactions because they are undereducated, it will reflect on your business as a whole, and customers will be frustrated and disappointed. Maintain employee and customer safety: As mentioned, safety is an absolute necessity at petrol stations. The amount of fuel and other hazardous chemicals creates significant risks for employees and customers. If anything should happen, such as a fuel leak, and an employee is unaware of proper procedures to address the issue immediately, everyone is vulnerable to disaster. Retain your best talent: A training program that focuses on individuals’ strengths shows your commitment to promoting their growth. Focusing on overcoming personal challenges makes a business more attractive to your best talent. Bring out strengths and weaknesses: Helping employees build on strengths and address deficiencies helps pinpoint skills on which an employee should focus for improvement, and training efforts must meet that need. Training can also help employees discover areas in which they could use additional education and support. Investing in your staff can boost their morale: Mastering responsibilities provides a sense of accomplishment. Providing training opportunities that allow employees to excel helps give them a sense of selfworth, instills confidence, and improves morale.
PETROL NEWS
Develop a competitive advantage against other petrol stations: The more professional your staff, the stronger your business. Your petrol station relies heavily on the effectiveness of your employees, and with proper training, they will help you outshine the competition. Plus, word will spread that your employees are well trained and provide fantastic customer service. Gives retail employees access to information when and where they need it the most: Help staff stay current on proper procedures and any possible changes in their industry, such as ethics, safety, or quality standards. Showing them new ways to think and work and putting these practices to work in their daily roles can lead to better outcomes. An opportunity for staff to improve skills and knowledge: Today’s constantly evolving technologies call for regular training, no matter the employees’ skill set. Putting forth these efforts will encourage improvement and a willingness to take practical risks. Training can boost their performance at work: When employees feel supported by you, they are often more enthusiastic about performing at a high level. Providing employees with opportunities to continuously learn and practice new processes inevitably leads to optimal performance. Staff are likely to take on higher responsibilities: Effective training encourages employees to improve continuously. As they master more minor responsibilities and feel valued as employees, it will motivate them to embrace more learning opportunities and inspire them to look for greater responsibilities. Improves time management: Whether individually or on a team, training helps employees manage tasks more efficiently. They will rely on a better understanding of processes and clearly defined expectations. When employees are informed of the requirements for their position, they spend less time trying to guess what they should be doing and just get it done.
declined the insurance claim stating that the employee was not properly trained due to the owner’s negligence, as they should have been trained in how to use the different fire extinguishers correctly. Protection from legal action: There have also been cases where staff have commenced legal action against the owner and manager of a petrol station for negligence where they haven’t been trained. One instance included an employee that was working during an armed robbery. The employee suffered psychological damage and claimed they had not been prepared to handle the situation correctly under such circumstances. The employer was found to be negligent and forced to pay compensation to the former employee. Saves you time and money: Outsourcing your staff training means it’s one less thing that you need to worry about. This saves you time so you can focus on other areas of your business. If you own multiple petrol stations, there’s no need to have your retail manager go around to each site and train everyone. Choose a single business process outsourcing provider to do the hard work for you. Keeping records: If you need to prove that you have trained your staff in key areas of working in a petrol station, the authorities will not just take your word for it. You must document your staff training, including which staff have been trained, what they have been trained in, and when they completed training.
Your petrol station relies heavily on the effectiveness of your employees, and with proper training, they will help you outshine the competition.” – Dan Armes, ServoPro
HOW SERVOPRO HELPS
We make it easy for petrol station owners to train their employees through our ServoPro membership. As part of the membership, petrol station owners can access our online staff training courses, which cover the key areas of working in a petrol station, including armed robbery, food safety, fire safety, selling tobacco, and much more. Employees receive certification upon completing the training course and we give you full access to your training records through our online portal. If you need advice with your staff training obligations, feel free to get in touch. C&I Your petrol station relies heavily on the effectiveness of your employees, and with proper training, they will help you outshine the competition.
ADDITIONAL REASONS
Insurance: There have been cases where insurance claims have been declined due to staff not being trained correctly. For example, we had a case where an employee used the wrong type of fire extinguisher to extinguish a fire in a kitchen area, which worsened the blaze. The insurer October/November 2021 | C&I | www.c-store.com.au 61
PETROL NEWS
AMPOL LAUNCHES NZ$2BN BID FOR Z ENERGY
TO CREATE TRANS-TASMAN FUEL GIANT A successful transaction would create a Trans-Tasman leader in fuel with significant regional scale and an integrated supply chain. Ampol has a strong track record of reliably delivering transport fuels in New Zealand, with NZ$80 million invested since 2016.” – Matt Halliday, CEO and Managing Director, Ampol
A
mpol has confirmed that it is in exclusive talks to acquire New Zealand fuel distribution and retailing company, Z Energy. Headquartered in Wellington, Z Energy owns and manages around 330 petrol stations and truck stops in New Zealand under the Z and Caltex brands, supplying four billion litres of fuel annually. Ampol has proposed to acquire 100 per cent of the shares of Z Energy Limited for a cash offer price of NZ$3.78 per share. Ampol’s offer price is a compelling value proposition for Z Energy shareholders and represents a 35 per cent premium to last close on 26 July 2021. It also represents a 47 per cent premium to last close price prior to the first offer on 2 June 2021. In addition to the offer price, Ampol’s proposal includes a dividend adjustment mechanism which permits Z Energy to pay a dividend equal to NZ 0.055 cents per share per calendar day, for each day that the transaction extends beyond 31 March 2022, up to a limit of NZ 10 cents per share. Subject to further discussions with Z Energy, Ampol is also willing to consider an amendment to the current proposal to include partial Ampol share consideration. The Z Energy Board has concluded that it is in shareholders’ best interests to grant Ampol a four-week period for confirmatory due diligence which will be conducted on an exclusive basis. Ampol’s CEO and Managing Director, Matt Halliday, highlighted the benefits a successful acquisition would bring to both the Australian and New Zealand markets.
Matt Halliday, CEO and Managing Director, Ampol 62 October/November 2021 | C&I | www.c-store.com.au
“Z Energy is a logical growth opportunity for Ampol as both companies are market leaders in their respective home markets and have very similar business models. A successful acquisition would create an ANZ leader in fuel, with significant regional scale and trusted and iconic brands on both sides of the Tasman. “Ampol has a strong track record of reliably delivering transport fuels in New Zealand, with NZ$80 million invested since 2016. Should a transaction proceed, Ampol believes that it will bring considerable benefits to the New Zealand market, helping to maintain fuel security and support New Zealand industry. Given the ongoing work of both organisations in energy transition, a combined entity would provide a new, larger platform, supporting the development of lower emissions energy solutions for customers across Australia and New Zealand. “We look forward to working with the Z Energy team to complete our confirmatory due diligence such that a transaction can ultimately be put to Z Energy shareholders.” The proposed transaction is expected to be subject to customary conditions, which include a Z Energy shareholder vote and New Zealand Court and regulatory approvals, namely, obtaining a clearance under the New Zealand Commerce Act and Overseas Investment Act. As part of the New Zealand Commerce Act clearance process, Ampol intends committing to a material divestment to ensure any potential competition law issues are fully addressed because of the transaction (this may include a full divestment of Gull). The transaction would be conditional on obtaining clearance, which would be based on this divestment undertaking (to be agreed with the New Zealand Commerce Commission). It is expected that divestments would occur within a prescribed period following completion of the transaction. Ampol is willing to work with Z Energy and relevant regulatory authorities, including Overseas Investment Office, and is confident in its ability to receive required approvals. Subject to finalising commercial terms, due diligence, and regulatory approvals, Ampol intends to fund the acquisition in accordance with its Capital Allocation Framework, which would include new debt facilities, proceeds from any divestments, and an equity issuance in the order of A$600 million. The equity issuance could be in the form of partial share consideration to Z Energy shareholders or Ampol conducting a pro rata entitlement offer to its own shareholders, which would be done following regulatory approval and nearer the date of completion.
PETROL NEWS
ENVIROTANK CELEBRATES A 30 YEAR HISTORY OF FIRSTS Over the course of its 30 year history, Envirotank has achieved many Australian firsts and become the market leader in petroleum storage tank manufacturing. In the early 1990s, Envirotank was the first to introduce fibreglass (FRP) underground fuel storage tanks (UST) to the Australian petroleum market, and in another first, it promoted these with a 30-year warranty. Envirotank has always sought to provide its customers with greater flexibility with innovative products. One such innovation was being the first to offer single FRP tanks split into two, three and four compartments. This design allowed for installation costs to be significantly lowered as well as lowering the total fuel system and site build costs. In 1995, Envirotank supplied the very first double wall FRP tank sold in the Southern Hemisphere to a major oil that included ‘HydroGuard®’ an interstitial tank integrity monitoring system. All Envirotanks are now supplied with a factory installed HydroGuard® Monitoring System, a coloured water-based monitoring fluid, which constantly monitors 100 per cent of both the inner and outer walls under all installed conditions. As Envirotank grew, the number of steel tank manufacturers declined due to rising costs and a shrinking market. In just 10 years, Envirotank had achieved a reputation of providing a proven integrated engineered solution to any situation combined with quality manufacturing and a customer first attitude, something that continues to this day.
In 2001, Envirotank was approved as the first underground FRP tank manufacturer worldwide for the storage of aviation products by a major oil that included its Hydroguard® Monitoring System. Always looking to further its FRP expertise, in 2014 Envirotank entered into a licence agreement with UK-based company Premier Tech, a leading producer of sewage plant, wastewater treatment and environmental equipment. Through that agreement Envirotank introduced the Clereflo Oil/Water Separator to the Australian market, providing a cost-effective choice for forecourt stormwater treatment devices. Envirotank is now celebrating 30 years in the Australian market. As the longest continuously operating petroleum storage tank manufacturer in Australia and New Zealand, they proudly look back at the 10,000 tanks and 25,000 plus compartments they have provided with pride, knowing that they continue to perform, day-in and day-out, with incredible reliability and peace of mind for their customers.
100% of the Outer Wall Surface is Monitored and Visible for Inspection and Leak Testing Smooth Molded Surface
True Double-Wall Construction Means High Strength
Inner Tank Wall
High Strength Ribs
HydroGuard® Interstitial Monitoring Fluid
Ü Envirotank double-wall tanks are fully compatible with all modern fuel types including alcohol blends & 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.
Because What’s Inside Matters!™
Ü Two (2) structural walls provide the ultimate in leak prevention.
Ü The Hydroguard® System is a
proven hydrostatic testing system, that continuously monitors the integrity of the inner & outer tank walls in all installed conditions.
Corrosion-proof Fibreglass Underground Storage Tanks
Visit www.envirotank.com.au or call 1800 818 354 for more information
PETROL NEWS
Viva Energy returns to profitability in the first half of 2021 Viva Energy has said that its recovery program is on track and the business is back in the black in the first half of 2021. The company felt the impacts of the pandemic in 2020, with fuel sales plummeting and its Geelong Refinery reporting a $30 million loss in the September quarter, leading Viva Energy to temporarily consider its long-term viability. CEO and Managing Director, Scott Wyatt said: “Viva Energy has delivered a very strong first half performance driven by strong sales growth in our non-aviation businesses, supportive margins, and an improved refining performance since returning to full production in late 2020.” Retail Alliance sales volumes were impacted by short-term lockdowns averaging 58.4 million litres per week in the period to 30 June 2021, and broadly in line with levels achieved in in the first half of 2019. Premium petrol sales were up seven per cent on the first half of 2019 and now represent approximately 30 per cent of total petrol sales, reflecting increased consumer demand for premium fuels and the continued roll-out and uptake of V-Power through the broader Shell branded network. “While retail fuel sales continue to be impacted by periodic lockdowns, and aviation by ongoing border closures, overall growth across all retail and commercial channels has been very encouraging with total Petrol and Diesel sales volumes up four per cent and 16 per cent respectively on 1H2019, as a comparison to pre-COVID demand,” continued Wyatt. “Refining remains challenging, but supported by strong production levels, receipt of the short-term production payment grant, and the long-term fuel security
package commencing 1 July 2021 that minimises the downside volatility of refining margins. Our recovery program remains on track, and I am very pleased with the performance of the business.” As a result of the fuel security package, Viva Energy is now proceeding with major maintenance activity, such as the Hydrofluoric Acid Alkylation plant, that was deferred from 2020 with an expected investment of $2535 million. In addition, the company is undertaking preliminary studies to commence the necessary capital upgrades to the Refinery to manufacture low sulphur gasoline. The capital costs associated with this project and other associated projects, are expected to be up to approximately $250 million, with the Federal Government to contribute up to a maximum of $125 million (or 50 per cent) of the capital costs.
Ampol reports strong first half earnings as it continues to execute growth strategies Ampol has announced its financial results for the six months ending 30 June with Group earnings reaching $340 million. Matt Halliday, Managing Director and CEO, said: “We finalised our Lytton review, with a commitment to continue operating to support the dual objectives of fuel security and energy transition in partnership with government. In addition, the launch of our Future Energy and Decarbonisation strategy provides a pathway to build new lower emissions energy solutions for our customers into the future. “The business also continues to perform strongly as we execute the delivery of our growth strategies in challenging conditions. In addition to improved performance in our core Australian fuels business, we continue to grow earnings in our International and Convenience Retail (CR) businesses in line with our earnings growth targets.”
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F&I delivered RCOP EBIT of $208 million in the half, an increase of $96 million or 85 per cent compared to the same period in 2020. This was largely due to the improvement in profitability of the Lytton refinery and receipt of the Federal Government’s Temporary Refining Production Payment of $40 million. Total Australian fuel sales volumes were 6.5BL in 1H 2021, six per cent lower than the 7.0BL in 1H 2020, as net wholesale supply sales in Brisbane declined due to competitor supply chain decisions and jet fuel sales fell due to the full half impact of COVID-19 border restrictions. CR delivered RCOP EBIT of $149 million in the first half, compared to $125 million RCOP EBIT in 1H 2020. The result reflects continued improvement in shop performance and the $14 million benefit of lower depreciation due to the impairment of CR sites recognised as at 30 June 2020. These factors helped to offset compressed fuel margins during the period. Total CR fuel sales volumes were 2.05BL in 1H 2021, three per cent higher than 1.99BL in 1H 2020, up five per cent on a like-for-like basis. Despite higher volumes, earnings from fuel sales declined due to diesel margins lagging movement in crude prices. Shop performed strongly during the period, with a 6.3 per cent increase in like-for-like shop sales and a clear focus on cost management. Ampol’s focus on optimising the network saw the closure of eight marginal sites during the half. Combined with divestments and transfers to alternate operators the controlled network size reduced by 6.3 per cent compared with the same time last year. Net borrowings at 30 June 2021 were $735 million, compared with $434 million at 31 December 2020, reflecting the $300 million Off-market Buy-back during the period. Ampol remains on track to deliver $195 million EBIT uplift by 2024, from its CR and F&I International EBIT growth strategies.
PETROL NEWS
7-Eleven partners with The Salvation Army to redirect thousands of meals to help struggling Aussies
Ampol pilots Australian first carbon neutral petrol and diesel option Ampol is piloting a carbon neutral petrol and diesel option aimed at offsetting the greenhouse gas emissions caused by the production, distribution, and consumption of fuel. The pilot is an Australian first and is initially being piloted to Ampol’s business customers. A carbon neutral option will be offered to customers where emissions associated with Ampol’s fuel or diesel product will be offset through the purchase of a portfolio of carbon credits. These credits will be generated through projects handpicked by Ampol, including nine Australian initiatives that are proven to deliver social and environmental benefits to regional farmers and local communities. The carbon neutral option has been certified by Climate Active, an Australian Government-backed program aimed at empowering climate action through product certification. Customers that participate in the pilot program will be offered two carbon neutral portfolios to choose from – one that features 100 per cent Australian projects, and the other featuring 30 per cent Australian projects. The program offers a flexible opt-in model, with customers being provided choices to apply portions of their volume to meet sustainability targets. Ampol’s small transport fleet will be participating in the program. McMillan Shakespeare Group, a leading provider of salary packaging, novated leasing and asset management services, and One Rail Australia, a leading Australian rail freight service provider, have also signed up. A wide range of Ampol’s business customers will be targeted for participation in the pilot program, including mining, road transport, rail, government, and energy customers. The carbon neutral fuel pilot will run for approximately three months, with an evaluation process to be executed before exploring a roll out to Ampol’s broader customer base.
Like many retailers, the 7-Eleven Australia team has been dealing with the challenges of COVID-19 including temporary store closures for deep cleaning or team members or delivery drivers having to isolate. These impacts have meant there was a risk of fresh food going to waste but thanks to the help of The Salvation Army Australia, thousands of food items that couldn’t be delivered to stores, were instead redirected to help people doing it tough. According to 7-Eleven CEO and Managing Director, Angus McKay, being able to support local communities while keeping people safe is incredibly important to the 7-Eleven team. “Our approach is that as soon as there is a risk, we immediately close and deep clean a store, and then support impacted team members to isolate until there’s a negative test result, or as advised by the relevant state health department.” Because 7-Eleven delivers fresh food into every store in its network every day, if
a particular store is closed for deep cleaning during the delivery window, it means that stock that is already packed for that store needs to go somewhere. “Thanks to the help of our friends at The Salvation Army, our team has been able to redirect more than 4,000 meals and about three truckloads of milk, snacks, sushi, fruit and treats in the last month,” said McKay. “7-Eleven has been working with The Salvation Army since 2014, starting with a coffee machine donation at the Melbourne Project 614 Magpies’ Nest Café. In July, the free coffee service in the café poured its two millionth cup of coffee. “Through working with the team at the Salvos, we’ve learnt that it isn’t just the meal, the cup of coffee, or the treat alone that makes a difference to people. It’s the knowledge that someone cares, the surprise of an unexpected treat in a box of essentials to bring a smile to a person’s face, and most importantly the chance for the Salvos to make a connection that could be the start of helping support someone to get back on their feet.”
Our approach is that as soon as there is a risk, we immediately close and deep clean a store, and then support impacted team members to isolate until there’s a negative test result, or as advised by the relevant state health department.”
The Salvation Army Melbourne Project 614 October/November 2021 | C&I | www.c-store.com.au 65
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