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A united industry
Welcome to the October/November issue of Convenience & Impulse Retailing magazine. What a pleasure it was to be able to hit the road for a few days with the AACS Down Under Study Tour in Sydney and learn all about the latest innovations in convenience retail at some really remarkable stores, and of course, to catch up with a few friendly faces.
It really makes me proud to be part of an industry that, despite tumultuous events across the world that have rippled into our own, is united and eager to both learn and share insights with each other.
Speaking of sharing knowledge, in this issue
we look into banner groups and how being part of such an organisation can help its members develop strategic plans to develop and grow their business into a more successful operation.
We also take a dive into the impressive rise of the functional beverages category and how retailers and suppliers alike can capitalise on the growing movement of healthconsciousness amongst consumers.
As always, we are grateful to have our regular columns from Theo Foukkare, CEO, AACS and Darren Park, CEO, UCB Stores, and Dan Armes, Founder, ServoPro, and Skye Jackson, General Manager Merchandise, Ampol.
To our readers, the team at C&I had a ball putting this issue together, and hope that you get as much joy out of reading it.
On-the-go indulgence
Indulging Australians for more than 20 years, Signature Desserts’ singleserve cheesecakes are optimally designed for impulse purchases and easy on-the-go snacking.
The innovative packaging for the 100g cheesecake wedge was designed by Trevor Hansen when he was selling his cheesecake from an industrial snack bar, and even includes a spoon.
With an attractive starting RRP of $2.99, the single-serve desserts enable retailers to capitalise on the escalating fast-food market and meet the consumer demand for innovative, readyto-eat desserts.
Tic Tac goes tropical
Tic Tac has announced its latest flavour innovation, Tic Tac Tropical Mix, just in time for summer.
Tic Tac’s iconic breath-freshening mints in a signature flip-top box have been made in Lithgow, Australia since 1976.
Always surprising customers with fresh taste sensations, Tic Tac has grown to become one of the world’s leading brands in pocket confectionery with a wide range of minty, fruity, and original flavours.
The latest flavour to join the range, Tropical Mix, features a combination of juicy pineapple, zesty passionfruit, and delicious mango, bringing together a burst of vibrant tropical fruit flavours.
Tic Tac Tropical Mix will be available in 24g packs across Australia and New Zealand.
Scan the QR code for more information
The Intermedia Group
additional
TabSol launches cannabis derived terpene vape
TabSol Australasia has developed TSVT – Tribal Spirit Vape with Cannabis Derived Terpene (CDT) as its base flavour, providing consumers a legal choice and access to better alternatives.
TSVT – Tribal Spirit Vapes with CDT meets all legal guidelines. The terpene is of superior quality and does not contain any CBD or THC – the active ingredients that create the ‘high’ that people experience when they use cannabis and therefore is legal for retailers to sell. TSVT is available in four flavours; Natural, Blueberry, Classic Virginia, and Grape.
TabSol Australasia has also launched the TSV Vape device that is specially calibrated for the TSVT e-liquid. The rechargeable pod system comes with two refillable/replaceable pods. The CDT vapes will soon also be available in a convenient disposable vape format.
To Order the TSVT E-Liquids and the TSV Vape pod system contact the TabSol team on 02 9037 1478, 0413 690 069, email at info@tabsol.com.au.
Toatlly delicious
With oat milk growing almost 10 times faster than the total plant based milk category, the launch of Toatl flavoured oat milk is set to shake up flavoured milk shelves across the country.
Smooth, creamy and 100 per cent yum, Toatl comes in three delicious flavours – Chocolate, Caramel and Strawberry.
Made with Aussie oats, high in calcium and packed with essential vitamins A, B2, B12 and D, Toatl is the plant based flavour hit your customers have been looking for. It launched in September 2022 in various P&C outlets nationally.
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I was ready for a new personal challenge – to test myself in a new industry and extend my retail leadership capabilities.”
A GROUNDED LEADER
Fiona Hayes grew up in Melbourne as one of six children. Now, as the new General Manager Channel at 7-Eleven, she is working to change the face of convenience retail.
Igrew up in Melbourne in a very busy household with six kids, my Mum and Dad. With four older brothers and a younger sister, our family was lots of fun, family-oriented, and quite busy! We always had a full house with friends visiting regularly.
Growing up, we all played a lot of sport – for me it was basketball, tennis, and netball, and that kept me busy. Holidays often involved trips to regional Victoria to visit grandparents and cousins or we would go camping over summer at the beach.
My first job was delivering the local newspaper, and then when I turned 15, I began a part time job at Red Rooster. All but one of my brothers worked at Red Rooster along with many other teenagers across our neighbourhood. It was a great training ground in customer service and food service.
I have always been a big traveller and during Year 10 I went to the US as an exchange student. I also travelled to New Zealand thanks to the savings from my part time job – that got the travel bug going. Since then, it’s been numerous trips to the US, Europe, Asia, and New Zealand. I have also worked in the Philippines and travelled to India multiple times as part of my
previous roles. Essentially, I travelled overseas every year, or even multiple times a year, until the pandemic closed the borders.
My husband Glenn and I have two young boys in primary school. Glenn previously worked in the shipping and logistics industry but over the last eight years he has been running the household.
I went back to work when my youngest was 10 months old and Glenn left his role at the same time to take over the day to day running of the family. We are very fortunate to have one of us at home full time to do all the necessary caring duties as well as take on extra roles like basketball coach, footy coach, and caring for family members.
I have just started in a new role as General Manager Channel at 7-Eleven Australia. Prior to joining 7-Eleven, I had enjoyed a rich and varied career over 26 years with Telstra. I joined Telstra in a frontline customer service position and built a breadth of experience and capability by being regularly challenged with new roles and promotions. Over the last 12 years, I was a member of the Telstra executive team and during this time I led two of the large channels to market for Telstra – the Global Contact Centre business and Telstra’s Retail and Regional business.
Fiona and members of the 7-Eleven Channel teamWhile I have worked in a range of different positions, I have always been drawn back to ‘channel’ roles. Personally, I love the direct connection with customers and people. I find it very motivating and rewarding to see the direct impact of the work you’re doing in real time, through the direct and regular feedback from customers and our team members. You know you are alive when you run a channel team!
I was very attracted to the General Manager Channel role at 7-Eleven as it has all the attributes I was looking for. Specifically, being part of a leadership team that is committed to leading the market with a culture of innovation. It provides a channel to lead and the direct connection with customers and team members, as well as some big strategic opportunities to get stuck into.
It’s energising to be part of a team that’s committed to changing the face of convenience retailing by going above and beyond traditional food offerings, introducing new formats and expanding our digital capability and digital engagement with our customers. I am really looking forward to delivering our strategy and growing the business.
Over the course of my career, the main highlight has been establishing a career as a Channel Executive. From the early beginnings as a frontline team member to now leading large channel teams and being part of the strategic leadership of Telstra and now 7-Eleven. It’s not one specific moment, but a series of opportunities and experiences over my career that have led me to where I am now.
I have always been a very grounded leader – by that I mean ensuring I am connected with customers and the people that are delivering for customers every day. The relationships I have with the people who are frontline with customers, and the insight they provide, have meant I have been able to engage, lead, and enable my teams to deliver significant change and transformation to benefit our customers.
In my spare time, I like to exercise and stay fit. That involves sessions at the gym, walks and playing tennis. I played lots of basketball and tennis growing up and have gotten back into tennis again over the last couple of years. It’s a good way to catch up with friends and get some exercise in.
Another interest is cooking. Feeding a crowd is a favourite pastime and comes very naturally. After growing up in a big family I often find it easier to cook for 10 rather than for two. I also like heading out to see live music – it’s been great to be able to do that again after all the lockdowns. And travel! I can’t forget about travel.
I have never been one to have a five year plan, I do however have goals and objectives for how I want to live and the work I will get involved in that I reflect on. For me, this is less about the line in the sand moment of five years from now and more about continuing to expand my tool kit of skills and capabilities, while being part of organisations that can make a difference in the lives of Australians.
I left Telstra as I was ready for a new personal challenge – to test myself in a new industry and extend my retail leadership capabilities. C&I
It’s energising to be part of a team that’s committed to changing the face of convenience retailing by going above and beyond traditional food offerings.”
Fiona checking in with members of the Telstra team in Darwin
Venue
THE
C&I EXPO 2023 WILL BE STAGED at the world class International Convention Centre in Sydney. Perched on the edge of sparkling Darling Harbour, ICC offers a CBD location with accommodation for all budgets and proximity to convenient transport services. To book your stand or request an exhibitor prospectus, contact Safa de Valois at safa@c-store.com.au or +61 (0)405 517 115
“It has been good to meet a bunch of new potential customers, including multi-site operators in Victoria, New South Wales, and Queensland. It is great that stores are looking for new buying options, such as ranging toys or our range of mobile phone accessories for example, rather than relying on existing suppliers as they are looking for a point of difference.” - Tal Avraham, Smooth Wholesales
"At this stage, the response so far at this year’s C&I Expo has been far better than we have ever had before. The amount of people that have shown interest and we are not talking about the normal one or two site owners. Yesterday we had more than 12 enquiries and this morning on the second day we have already had six - so I would have to say that this year’s Expo has been the most successful I have ever been to. If you want to kick-start your business, this is the place where you want to come.”
Vern BrickmanAdverto & PumpTV Global
“Today we have been run off our feet with quality enquiries with a lot of interest from our target market. This has been due to an excellent show combined with excellent advertising in C&I as we have relaunched our product with new branding that is more suitable to our target market. We have seen multi-site operators, service stations, groups who own 300-400 stores as well as food service buyers. All I have to do is to transfer them from enquiries to sales and I’ll be a happy chappy.”
-Trevor Hansen, Signature Desserts
“This show has been quality over quantity and having really good in-depth conversations with great retailers. I feel like I have done a dozen mini-range reviews here on the floor of the exhibition - it saves everyone’s time, and I can get cans in hands on the spot. We have seen multi-site operators from the convenience banners - one has 600 stores up the Eastern seaboard. It is a great opportunity to get a lot of work done and see a lot of people all at once. The buyers are inquisitive and looking for new products and inspiration.”
- Murray Raeburn, Calm & StormyLIBERTY AT FERNTREE GULLY
Liberty Oil was established in 1995 by founding partners David Wieland and David Goldberger, whose names might be familiar as they were the founders of the giant that was Solo service stations in the 70s and 80s.
Wieland and Goldberger started Solo in 1974 and built it into the largest independent fuel retailer and distributor in Australia. The Solo chain was a part of the Australian Council of Trade Unions (ACTU) project that aimed to sell petrol across Australia through independent operators at significantly lower prices.
Liberty Oil Convenience at Ferntree Gully offers great coffee, great value, and even greater service. Transparency and collaboration are key to ensuring that the store keeps up with the market and consumer needs.”
– Leigh McCullochThe chain was later sold to Ampol, and Wieland and Goldberger took some time out of the industry due to a non-compete clause. But in 1995 they decided to start again with a renewed vigour and focus, founding Liberty. Now, almost 30 years on, Liberty has more than 85 convenience stores across Australia and is growing.
Liberty Ferntree Gully is one of the newest sites to open and has been trading for just under one year. The store has a truck canopy, barista and self-serve coffee, and an eatery area for customers to enjoy their coffee or a selection of hot food.
Leigh McCulloch, Retail Manager at Liberty Oil Convenience, tells C&I that the experience the store is looking to give its customers, comes down to high-quality products at great value, and a good variety of food for travellers on the move.
“Transparency and collaboration are key to ensuring that the store keeps up with the market and consumer needs,” he says.
According to Evan Badlee, Liberty's National Food Manager, most stores are built with their own onsite kitchen. This enables the stores to create fresh cooked and prepared food every day.
“Our trained store operators can create their own special offers while their menu is based on a core range that you will find in most stores across the nation. This way our customers will be familiar with our offer from store to store, and they will be able to trust our brand and know what to expect,” he says.
“At Liberty, we are very passionate about delivering the best cup of coffee to our customers using the best German and Swiss Super Automatic Coffee Machines trusted by the world’s coffee roasters for their reliability and durability,” says Adriana Ivtingioski, National Coffee Manager.
“Barista-made coffee is also available at selected stores across Australia. Our staff are passionate and trained baristas who take pride in delivering that perfect cup of coffee to start your day or as an afternoon pick-me-up.”
Ivtingioski says that a key priority is that customers know they can come to Liberty Ferntree Gully, and in fact any Liberty Oil Convenience store, and know that they will receive a consistent, high quality cup of coffee.
“Our coffee is roasted in one of the largest and most advanced coffee roasters in Australia. Every bag of coffee has been crafted by a team of coffee experts with decades of experience. Our roaster sources the green beans ethically and roasts only the best.
“After months and months of taste testing, we at Liberty have chosen a blend that suits our customers, featuring Arabica, medium roast, earthy with spicy dark chocolate notes with a rich hazelnut crema.”
McCulloch has noticed there has been a change in consumer expectations of convenience retailers and a growing demand for stores to supply things like home delivery. Furthermore, there’s been an increase in the merging of e-commerce with in-store retailing to enhance customer journeys.
One way that Liberty Oil Convenience has been working to enhance its customer’s journey is through its loyalty program, which help its customers to save on fuel and in-store products.
“Our Liberty Loyalty programs allow our customers to save as they drive using our Mate Cards and Liberty Loyalty cards. We have three Mate cards that offer fuel and in-store credits,” says McCulloch.
Much like the philosophy of the old Solo service station chain, Liberty Oil strives to provide high quality of service and value for the customer through initiatives like the Liberty Loyalty program as well as its exceptional fresh food and barista made coffee. C&I
The perfect spot to enjoy barista-made coffee An impressive range is on offer The menu is based on a familiar core rangeTonik Nutrition is a sports nutrition brand, part of 100% Australian-owned and ASX-listed, Halo Food Co, Australasia’s largest Sports Nutrition manufacturer. With 25 years of local and international contract manufacturing experience, Halo is the go-to contract manufacturer for health and wellness products in Australia.
There has been a boom in pet ownership across Australia, but has the P&C channel capitalised, asks Thomas Oakley-Newell.
With roughly 30.4 million pets in Australia, higher than the number of people, it makes sense that pet care products should be as accessible as possible.
Research by Animal Medicines Australia (AMA) shows that dog and cat owners spend on average $3,237 and $2,074 per year on their pet, bringing the total spend for dog and cat owners nationally to $20.5 billion and $10.2 billion respectively, meaning there are opportunities abound for the P&C channel to capitalise on this spend.
Ben Stapley, Executive Director of Animal Medicines Australia, said Australia has had a boom in pet ownership like we’ve never seen before.
“We estimate there’s now 4.6 million dogs in Australia, meaning there are four legged friends in 47 per cent of all Australian households.”
Samantha Davies, Account Manager of Mass and Impulse at Purina Petcare, said over the past 18 months she has experienced how important the P&C channel is in regard to pet care.
“Our objective is to grow the category further by providing retailers and consumers more choice and accessibility to our strong performing brands. There is significant opportunity within this channel for further growth and Purina will continue supporting the P&C channel by providing optimised product ranges ideal for smaller format and independent convenience retailers.”
Purina Petcare is the producer of one of the strongest performing products in P&C – Supercoat Dry Dog Food, which is the top ranked brand in the dry dog food category in grocery. It has 70 per cent brand awareness and high penetration, with one in three shoppers purchasing the product. Supercoat has also just been relaunched.
“The Supercoat relaunch spreads across four key areas and will be heavily supported with media campaigns. The four areas include product reformulation; enhancing the formulation and adding additional kibble shapes to meet the needs of all breeds. In terms of packaging, Supercoat is available in a 2.8kg bag size, and the specialised nutrition products have changed to 2.6kg.
“Purina has also refreshed the design of the pack ensuring that the key product benefits are in a stronger focal position, enhanced the Supercoat logo and refreshed the lifestyle image on pack. Enhanced colour coding for variants will ensure easier shopper navigation. And lastly, recyclability: The Purina Care logo has been added, highlighting the recyclability of the pack as well as Purina’s sustainability initiatives.”
Davies said that the wet cat food segment is another strong performing segment in P&C.
“Fancy Feast continues to deliver growth and is a significant contributor to growth across the wet cat food category. Felix is another wet cat food brand that has continued to accelerate and helps premiumise the wet cat food category.”
Darach de Búrca, Portfolio Marketing Director of Care and Treats at Mars Petcare, says consumers now have more choices than ever on where and how they get their groceries – pet care products included.
“We want to make sure that our brands are available to pet parents whenever they need them, and the 24-hour availability of the P&C channel can be a lifesaver if you realise your fussy cat is out of Whiskas at 7am.”
PAMPERED PETS
Just as the better for you trend is a growing segment in the human market, de Búrca says that also rings true for pets.
“Additionally, we’ve noticed that as we’re paying closer attention to our own health, we’re also increasingly examining what’s in our pets’ bowls. Pet parents are looking for products they see as fresh and healthy; that utilise strong scientific claims; and those that are doing the right thing when it comes to sustainability.”
Making the most of the impulse nature of the P&C channel, de Búrca believes that up to 70 per cent of care and treat purchases are impulse or unplanned.
“The category is highly expandable, so there is a huge opportunity to increase the physical availability of these products.”
De Búrca said Mars Petcare has a lot of innovation coming out of the care and treat category this year to help continue to meet the needs of parents, serve more pets, and, of course, to delight and excite pets.
“A personal favourite of mine is our new BBQ range of Schmackos, for that lip-schmacking flavour. We’re also finding new ways to showcase our values to shoppers, with activations that direct funds towards causes they care about, like coral reef restoration with Dine cat food, and wildlife conservation with our Lion’s Share partnership.”
As people are spending more and more time at home with their pets, giving treats and snacking at the same time as your pet is a growing trend.
“The care and treats categories have seen sustained growth over the past two years, suggesting that we’re snacking with our pets while we work from home. Additionally, the rapid embrace of online shopping across the grocery and specialist channels has seen consumers experiment with their shopping habits, including with subscription models,” explained de Búrca.
Noting consumer trends, Davies says that the pet treat category is one to keep an eye on as it is the fastest growing category and the second largest contributor to overall pet care growth.
“Purina’s best performing treat is Lucky Dog Bones Original 800g. This product is the best performing product in the Dog Treat snacking segment and is available to P&C customers through The Distributors.”
Davies also recognised that shopping for pet products in the P&C channel is commonly a less planned purchase.
“For this reason, it is important to disrupt shoppers to remind them of your pet food offering. This can be implemented with off locations, in-store offers, and point of sale to draw attention to the category.”
– Samantha Davies, Account Manager of Mass and Impulse, Purina Petcare
It is important to disrupt shoppers to remind them of your pet food offering. This can be implemented with off locations, in store offers, and point of sale to draw attention to the category.”
The 24-hour availability of the P&C channel can be a lifesaver if you realise your fussy cat is out of Whiskas at 7am.”
– Darach de Búrca, Portfolio Marketing Director of Care and Treats, Mars Petcare
Ben Whyatt, Founder of Doggylicious, a brand that produces dogfriendly peanut butter and cookies, and who has previously had his products stocked in OTR, said his biggest learnings from venturing into P&C is that impulse purchases are pivotal to the channel.
“I don’t think any dog owner would go into an OTR or 7-Eleven to top up on dog treats or dog food. It has to be an impulse purchase. They go in to top up their petrol and buy themselves a chocolate bar or maybe a coffee and get out, even if the dog is in the car.”
PAW IN THE DOOR
Whyatt believes one of the biggest challenges facing pet care in P&C is making the consumer aware that the store stocks pet products and thinks that stores need to make themselves known as a dog-friendly.
“Instead of leaving the dog in the car, can they welcome dogs into the store? Are there dog washes at the site? There needs to be things that make it known that the store is dog friendly, so that the customer gets the perception that they can bring their dog in and treat them.”
Pulling the pet products out of the dark corners of the store is something Whyatt says is needed to help increase the opportunity for an impulse purchase.
“Take away a SKU that maybe isn’t performing as well but is in a prime location and replace it with a dog-friendly treat. So that when you’re buying yourself the chocolate bar, you think here’s a treat for my dog that’s sitting in the car. That kind of incremental purchase is needed as now there are far more people with a dog in the car, whether they’re on holidays, weekends away, or just a trip to the park.”
Davies said that the display of pet food options is vitally important and recommends three key planogram principles to focus on.
“It helps to cluster different animal groups, for example, dog and cat as this will aid in shopper navigation. Secondly, ensure fair share of shelf – adequate space allocation for each subcategory focusing on categories of growth, for example wet cat food and treats. And thirdly, follow a good – better – best flow to allow trade up into higher $/kg brands.” C&I
SUPERCOAT with SMARTBLEND
The smart choice for the right nutrition
A DRINK THAT MAKES YOU THINK
As one of the fastest growing categories, functional beverages has had a positive impact on not only consumers’ minds and bodies, but also the channel, writes Thomas Oakley-Newell.
As
people pay greater attention to what they’re consuming, the desire for products that yield a positive impact on both mind and body is growing.
In the AACS State of Industry Half Year Report 2022, it was reported that functional drinks was the fastest growing category within packaged beverages, growing an impressive 12 per cent.
Jake George, Australian Sales Manager at Arepa, said they’ve noticed that more and more people are making conscious choices when it comes to their beverage selections.
“Consumers are taking the time to research exactly what they are drinking and the benefits the beverage will provide them. Convenience shoppers are increasingly looking for healthy alternatives to the traditional beverages we associate with P&C. As a company, we’ve worked to make the science and research behind our products readily accessible, so consumers have the ability to educate themselves and make informed decisions at the point of purchase.”
Kristian Johannsen, Managing Director and Founder of Bobby, a company that produces healthy ‘unconventional’ soft drinks, agrees that within the functional beverage category there is a consumer expectation that products must embrace a holistic approach and deliver goods that genuinely fulfil ‘better for you’ brand promises.
“Major players in the food and beverage space have got away with buzzwords and asterisks for far too long, consumers are now more educated than ever and can recognise when big brands are trying to health wash products.”
Johannsen believes that moving forward we can expect to see changes in governance around health benefit claims, more sustainable business practices, and an increase in demand for natural ingredient-based products.
James Noakesmith, Brand Manager ANZ of Shine+, agrees that in recent years the pandemic has affected the whole world in numerous ways.
“New work environments have been established, health and immunity have been a household topic driven by the uncertainty stemming from multiple lockdowns, positive case numbers and much more.”
A SHIFT IN THINKING
Discussing the changes in society from the impact of Covid, Noakesmith believes that this shift has influenced the way individuals value convenience.
“Although the pandemic created physical boundaries, at the same time it created new opportunities for individuals to engage with their local communities like never before. P&C,
which was traditionally an impulse interaction, has begun shifting towards a consumer destination for dry goods, meals, snacks, fresh produce, and Shine+ of course.”
Noakesmith continues that P&C is an incredibly influential channel in the functional beverages category and for Shine+.
“It plays a significant role in helping people think, feel, and do better at scale. P&C is at the roots of Shine’s shift from what was in the early days an initial focus on independents to ‘BigCo’. Through independents and e-commerce, Shine+ built brand loyalty, velocity, and proof of concept, which later provided the strong data that administered our first national ranging.”
Santino Luciano, General Manager of Sales and Marketing at Remedy, said both P&C and independent grocery play an important role for Remedy as it looks to continue to convert new drinkers to its range of better-for-you drinks.
“P&C plays a huge role in capturing people on-the-go during key beverage consumption moments to encourage trial, making it a key channel in our drive to make Remedy more accessible to more consumers. We know our P&C retailers are also very focused on increasing their range of healthier options. We believe we can convert a lot more people to choose a Remedy over another fizzy drink filled with sugar or artificial ingredients.”
The channel, along with independent grocery, has allowed Arepa the opportunity to reach an entirely new customer base.
“Typically, customers who shop via these channels are on the go and are looking for specific products to suit an immediate need. By having our product readily available in these channels, especially as Arepa’s brand presence grows across the country, consumers will have easy access to a scientifically backed, healthy brain food when they need a boost in their mental performance,” explains George.
While for Johannsen, the P&C and independent grocery channels form a vital part of Bobby’s growth strategy and are key in enabling them to access on the go customers.
“As we’re just starting out, ‘number of doors’ is a vital metric for us and the initial support we’ve received from these channels has been overwhelming.
– Jake George, Australian Sales Manager, Arepa
“We currently have a mix of data from independent grocery and multi-site P&C retail partners for our current range, which show Cola as the most popular flavour; with that said, we’re primarily seeing an even spread of sales across our core range, which is really pleasing.”
As businesses realise the growth potential within the category, an increasing number of players are entering, and George says that the category is becoming more saturated with new products.
“The challenge we face is making our product known and front of mind when consumers are purchasing such beverages, particularly if they don’t often delve into these beverage categories. To further uphold integrity and legitimacy of our products, we are conducting more clinical studies across Australia and New Zealand.”
Lisa Schilling-Thomson, National Sales Manager at Halo Food Co, producer of Tonik protein-based RTDs, said the brand is launching in both EG Australia and OTR later this year, while it already has new ranging in 7-Eleven, as well as independents.
“Independents offer a new brand like Tonik the opportunity to be introduced to their customers from a ground level, enabling organic growth without the massive capital investment required by the majors.”
INNOVATE AND ELEVATE
Staying ahead of the game in a fast-growing category is incredibly important, and Level Beverages is doing just that with its latest innovation – Level Lemonade and Cola.
Chrish Graebner, Founder of Level Beverages, said the new drink is low in sugar, high in vitamin C and Magnesium, and tastes just like a soft drink.
“Cola is the largest flavour segment in carbonated soft drinks. But the real last innovation in that area, attracting the mainstream appeal, was low sugar – but that was about 30 years ago. In many channels, the low sugar Cola versions outsell the normal sugar versions.”
Convenience shoppers are increasingly looking for healthy alternatives to the traditional beverages we associate with P&C.”
Graebner said that when blending the new flavour, they’ve created a ‘functional Cola’, and the amount of vitamin C and Magnesium means it is a formulated supplementary sports drink.
For Shine+, its latest innovation is the Shine+ Charged 500ml cans, which come in five flavours: Wild Tropical, Grape, Blood Orange, Mixed Berry, and Yuzu Lemonade. The initial launch of the Shine+ Charged range saw Grape sold exclusively in 7-Eleven nationwide for a short time, and Mixed Berry into Ampol sites across Australia.
“Early signs of positive velocity regardless of Shine+ being on or off-promo proved the range’s feasibility to ‘stick’. The standouts among the Charged range to date, have been Grape and Mixed Berry, which are among some of the top sellers in the overall energy category right now.
Shine+ made the decision to be shelved within the energy space, which Noakesmith said has been pivotal to awareness and building brand loyalty.
“Shine+ has prioritised physical positioning within the energy space, firstly to ensure that we are playing within the space that is most relevant to the solution that we are solving, but more importantly, to educate the energy/functional beverage consumer that there is not only a better substitute for bad energy that will help you think, feel, and do better but one that tastes amazing without the compromise on health.”
The emergence of a better-for-you segment within energy is a trend that Remedy has also identified. Luciano says there are both major existing and new energy players bringing innovation this space, including Remedy.
“The opportunity in this space can be seen in the data for our Remedy Shots performance in P&C, where our energy SKU leads the way versus Immune+ performing best in grocery.
“We have also just launched Remedy K!CK, a tasty all-natural, no sugar, energy drink that delivers a caffeine kick without the sugar crash. Remedy K!Ck is designed to appeal to those who are looking
P&C which was traditionally an impulse interaction, has begun shifting towards a consumer destination for dry goods, meals, snacks, fresh produce, and Shine of course.”
– James Noakesmith, Brand Manager ANZ, Shinefor a mental boost but would prefer to avoid drinks full of sugar and artificial ingredients. We are super excited for this launch and its potential to expand, led by P&C and independent grocery.”
Arepa recently launched Arepa Brain Shot for Protection to the Australian market for the first time, sold exclusively in Woolworths.
“The shot features Arepa’s patented formulation of Neuroberry blackcurrant juice with the addition of a new superpower ingredient, Bacopa Ayurvedic herb, Bacopa is clinically proven to have properties that positively impact cognition and memory, as well as having neuroprotective effects through its antioxidant and anti-inflammatory mechanism,” explained George.
Schilling-Thomson said that functional beverages have evolved over the past six years as key ingredients change constantly.
“This provides innovation to the category when range reviews come around, but is it innovation that keeps your customers coming into sites and repeat purchasing? Generally, not. What consumers are looking for are great tasting products, with key functional ‘clean’ ingredients that really are a step to living a better, healthier life.”
C&I
UP IN SMOKE
Over the past few years, Australia, and the global community, has witnessed a change in the way consumers are enjoying tobacco, with the introduction of e-cigarettes or vapes.
While other countries embraced the change and regulated the new products, the Morrison Government’s response was to ban such products being sold in Australia, leading to a highly profitable black market, or money being forced out of the local economy and being spent overseas as consumers legally imported products.
Theo Foukkare, CEO of the Australian Association of Convenience Stores (AACS), says that the effect of policy failings across the board in containing and eliminating both illicit tobacco and illicit e-cigarettes is having a negative effect on population health and the degeneration of legitimate retailers.
“The illegal sale of illicit tobacco and nicotine vapes continues to add downward pressure on tobacco sales and the associated loss of bundled purchases by the tobacco consumer.
“A recent KPMG report on illicit tobacco has the current rate of sales at 19.3 per cent, an increase from 2020 of 2.4 per cent (16.9 per cent). The black market for nicotine containing e-cigarettes has exploded since prohibition was put in place in October 2021.
“Products are readily available in illegitimate retail outlets, taking away valuable foot traffic from legitimate retailers, therefore decreasing overall basket sizes, and having a major impact on all categories, just not tobacco sales.”
Foukkare says that a recent Roy Morgan study released by AACS estimates there is now 1.1 million adult nicotine vapers in Australia, and that the illegal nicotine vaping industry could be worth upwards of $1.5 billion per annum in Australia.
The impact is being felt across the board, with Pradeep Kumar, Director of TabSol Australia, stating that the prevalence of illicit tobacco and nicotine vapes is the biggest challenge facing the industry right now.
The introduction of new smoking products has seen a radical shift in the way people are purchasing and consuming nicotine, but how will the industry react, asks Thomas Oakley-Newell.
“The widespread availability of illicit tobacco and nicotine vape products is impacting the whole industry. Due to the lack of enforcement of regulations and control at our borders, nicotine vapes and illicit tobacco products are hitting our streets at an alarming rate. Nicotine vapes are so easily obtainable, consumers and the illegal traders are treating it as normal and acceptable.”
TabSol, which wholesales zero-nicotine Tribal Spirit Vapes, has always followed the legislation that has been in place and ensure they only distribute legal non-nicotine vapes.
“We have commissioned independent tests to ensure there is no nicotine nor any banned chemicals. It is the lack of enforcement of the legislation by the authorities that is concerning and impacting all law-abiding businesses.”
Kumar says that unless the authorities take serious action to control the illegal nicotine vape sales, legal suppliers such as TabSol will suffer.
“Our distribution of TSVo - Tribal Spirit Vapes (Zero Nicotine) has slowed down due to the widespread availability of nicotine vapes. Due to the flood of nicotine vapes, the only legal alternative – zero nicotine vapes, sales are slowing down.”
P&C IS PIVOTAL
Despite the current challenges facing the industry, the P&C and independent grocery channels are still of great importance to many brands in the category.
Phoebe Tacon, National Business Manager P&C at Imperial Brands, whose portfolio includes JPS, Davidoff, and L&B, says that the two channels combined represent more than 8,500 single and multi-store operators across Australia.
“Most of these stores provide a comprehensive range of tobacco products and accessories to consumers, with great customer service at competitive price points.
“Shoppers are responding positively to the category offer in independents and convenience and share of trade has been strong. Grocery independent has grown from 14.3 per cent in 2019 to a high of 17.0 per cent in 2022, whilst P&C has remained solid at 11.5 per cent. This means almost one in every three tobacco sales in Australia are made in these channels.”
For the independent grocery channel, Tacon believes their share of trade will be challenged by the tobacconist and grocery organised channels once return to work has normalised and shopper behaviours return to pre-Covid routines.
“However, this also provides a great opportunity for Independents and Convenience to continue the improvement and consistency of the shopper experience they have delivered to date.
“Imperial Brands is committed to partnering with Retailers to develop solutions that drive footfall and category penetration in your stores.”
The P&C channel is one of the priority channels for TabSol, explains Kumar, as the convenience channel tends to overindex on tobacco and associated goods sales compared to some other channels.
“TabSol offers quality tobacco and e-cigarette products at value for money prices, therefore convenience stores are a focus. The sheer number of stores, their national coverage, and their mostly organised nature makes the convenience channel good and easier to deal with.”
WHAT THE FUTURE HOLDS
Recognising the role that Imperial Brands play in reducing the harm caused by combustible tobacco products, Gary Dickson, Regulatory and Legal Compliance Manager at Imperial Brands, says they understand society’s concerns about the health risks of smoking and as a result, are increasing their attention on nicotine alternatives.
- Theo Foukkare, CEO, Australian Association of Convenience StoresThe illegal sale of illicit tobacco and nicotine vapes continues to add downward pressure on tobacco sales and the associated loss of bundled purchases by the tobacco consumer.”
TabSol offers quality tobacco and e-cigarette products at value for money prices, therefore convenience stores are a focus. The sheer number of stores, their national coverage, and their mostly organised nature makes the convenience channel good and easier to deal with.”
- Pradeep Kumar, Director, TabSol
“Imperial Brands Australasia does not currently market or sell any Next Generation Products (NGPs) in Australia. We are committed to making a meaningful contribution to tobacco harm reduction and our global portfolio includes a range of NGPs including vapour, heated tobacco, and oral nicotine.
“Many regulators and public health bodies have concluded that NGPs, including vape products, are less harmful alternatives to smoking, and therefore have a positive role to play in reducing smoking-related disease. We encourage the Government to recognise the reduced risk potential of NGPs and to develop balanced regulation and fiscal policies that support tobacco harm reduction.”
Foukkare says that AACS is calling for a National Summit on the issues that have developed since the current prescription model policy was introduced by the Therapeutic Goods Administration (TGA), which includes designing cost-effective enforcement measures, abolishing the prescription scheme which is not being accessed by consumers, and identifying ways to disrupt the unruly syndicates that are driving black market trade.
“AACS would also like to see the TGA support immediate age limits on sales, the implementation of a national licencing scheme for all retailer sellers of vaping products, underpinned by a national product accountability tracking scheme, and to limit sales of nicotine vaping products to licensed, responsible retailers.”
Kumar believes the in-action by authorities is making Australia a sanctuary for criminals who engage in illegal nicotine and tobacco trade.
“The tough regulations on tobacco products as well as vapes has made the illegal trade quite lucrative.
“The in-ability by authorities to enforce the regulations is cultivating a culture of acceptance of the illicit trade. Retailers overwhelmed by the widespread availability of illicit tobacco and vape products are succumbing to the high demand and huge profits and engaging in the retail of illicit cigarettes, tobacco and vape products.”
Dickson echoes Foukkare’s belief that the current prescription model has failed and does not provide adult smokers with an effective transition path away from combustible cigarettes.
“The burgeoning illicit disposal vape market highlights the urgent need for more effective regulation which strikes a better balance, encouraging NGP uptake by adult smokers and limiting the ability of minors to access nicotine products.
“Products available on the illicit market are entirely unregulated, meaning that there are no product standards and are often sold to underage consumers. Legitimate manufacturers, retailers, and the Government are deprived of what could be legitimate revenue.” C&I
TabSol and Invibe introduce TSVo Tribal Spirit Vapes
TabSol Australasia has partnered with
The key elements that distinguish TSVo from other vape products are:
• Best Quality legal Vape device – TSVo has classy light polished metal encasing that makes it look elegant compared to other plastic options.
• Available in more than 20 popular flavours – Zero nicotine vapers seek tasteful flavours.
• Leak proof functionality – the manufacturer’s sealing technology minimises any leaks during distribution and usage.
• Available in 600 and 1800 puff options.
• Responsible retailing – all packaging comes with ‘WARNING: Strictly for 18 years and over’ – being the first vape brand to have this warning. Despite being nicotine free we believe that will remind retailers to only sell to adult consumers. TSVo packaging contains all required contact details including phone for consumers and retailers.
• The disposable pod comes with extra-long battery
GROUPS
FLYING THE BANNER
Banner groups are a pivotal cog in the wheel of convenience retail and help provide their members with strategic plans and the skills to learn, develop, and grow their business into a more successful operation.
Darren Park, CEO of United Convenience Buyers (UCB), believes that while retail buying groups can’t pretend to have every single answer to every single situation, as the business world becomes increasingly competitive and complicated, they do offer a safe harbour within which like-minded retailers can seek support, assistance, and understanding.
“What UCB believe is that with our members, trade partners, and UCB all working together we all go faster, save management time, and achieve more than any of us could on our own.”
Park explains that one of UCB’s key strengths is to look for situations where flexibility and nimbleness allow them to respond to opportunities or manage issues with pace.
“The key strength for UCB is what allows us to be nimble at store level and that strength is our business managers - those dedicated UCB employees who are on the road, in our member stores, day in and day out. Helping our members no matter how
big or small, to maximise their trading opportunities. Layouts, trade partner liaison, and instore execution are just some of the areas our field team cover.”
Steve Cardinale, Managing Director of New Sunrise, said New Sunrise prides themselves on the true partnership and honest collaboration with their strategic partners.
“We adopt a ‘one size does not fit all’ approach to the market, where others do not. We recognise that two stores, in the same suburb, but on different sides of a road, can have largely differing shopper missions. We offer a tailored program, which has been premiumised and has the ability to be customised.
“Our passion is the success of our retail members. We work with our members to assist them in setting the store up for success. This includes floor plans, hosting product files, customising in-house built planograms, aligning with over 120 suppliers, providing retail training, providing hardware support, access to qualified chefs and baristas, providing a help desk to assist in invoice issues, provide a benchmark category analysis by store and category management to optimise return on working capital. We go far and beyond providing just the ‘buying’ function, which is only the tip of the iceberg,” explains Cardinale.
in-depth look into how being part of a banner group can be beneficial to your business, writes Thomas Oakley-Newell.UCB offers access to banners such as fast&ezy
GROUPS
Glenys Tristram, National Marketing Manager at NightOwl Convenience, believes banner groups provide a level of security to the new business owner.
“The owner is certainly their own boss and with NightOwl there is flexibility in all areas of business management. However, having the full support of a company like ours with a head office full of dedicated experts in their fields means the new owner isn’t trying to wear all the hats in the business at once.
“The NightOwl support office provides training and support to the individual owner, and then there’s the economy of scale when it comes to marketing, buying, and supply chain needs. Why wouldn’t you join a banner group? The benefits give an owner a tangible business advantage.”
CHANGING TIMES
A c-store customer is looking for a retail offer that sits between a fully-fledged supermarket and traditional convenience store. They want to shop all they want, how they want, and at fair price, explains Kellie Struth, Head of Category and Marketing at APCO.
“That is the reality of our shoppers’ expectations today, there’s so many options and choices for the shopper, so APCO is committed and consistently evolving to deliver this retail box mix.”
The introduction of online retailing is having a big influence on convenience retailing, says Struth, for both good and bad reasons.
“It is here to stay and APCO is investing significantly in IT infrastructure, systems and processes to meet these future trends.”
The digitisation of the industry is something that Matt Elliott, VP mobility and convenience ANZ at bp, has also noticed.
“Online ordering, payment, and delivery is booming with a strong demand for delivered convenience. As an example, bp’s Couchfood branded home delivery service now operates from more than 200 stores and our in-car mobile fuel payment app, BPme, saw a 29 per cent increase in use last year.
“Our convenience business is constantly expanding and adapting as our customers’ needs change. From home deliveries through our partnership with Uber Eats, to a trial of checkout-free technology and a reimagined ‘food for now’ offer.”
Park recognises that demographic changes are under way across the country and are sending new waves of shoppers into stores.
“Shoppers have different wants and needs at different ages. For example, teenagers likely aren’t as interested in buying health care products as older adults might be. Similarly, older customers may be more concerned with price, while younger shoppers may be more interested in appearance and brand… they want to Tik Tok everything!
“We are also seeing more attention on brand purpose, what are brands and retailers doing for the environment and my community? We are addressing these through knowledge sharing, for example when we make a ranging change, why are we doing it? Is there a demographic reason for example or some other marketplace factor at play?”
Cardinale believes we will see continued movements into robotics at front and back of house, particularly in QSR and restaurants, which will see improvements in speed of service and variety of range. He also sees it entering convenience, and that food and coffee orders of the future may look quite different.
“But what won’t change is that people will still be on the move and while they are moving, they will need to eat, drink, and use bathrooms. No amount of technology can replace the ‘now’ especially when it comes to a providing the energy they need to get on with their day.”
What UCB believe is that with our members, trade partners, and UCB all working together we all go faster, save management time, and achieve more than any of us could on our own.” - Darren Park, CEO, UCB
Inside a NightOwl store A Bowser Bean fit-outOur passion is the success of our retail members. We work with our members to assist them in setting the store up for success.” - Steve Cardinale, Managing Director, New Sunrise
A CONVENIENT FUTURE
Haydn Tierney, Managing Director of Bowser Bean, said the past 12 months have held some impressive changes for the business including the launch of its biggest greenfield location to date, Bowser Bean Echuca, and the refurbishment and relaunch of sites at Violet Town, Strathmerton, and Euroa.
But Bowser Bean doesn’t plan to stop there, and Tierney expects to see more growth in the coming year.
“Bowser Bean is continually expanding their network of sites, aiming to service more local communities across regional Victoria and NSW. There will be continued improvement on our instore offering, with additional focus on the take-home food offer. We will be enhancing our customer interaction through the upcoming launch of the Bowser Bean app. Bowser Bean is ramping up its social media and marketing channels, in addition to some dramatic branding plans that will create much hype amongst local communities.”
Also looking to evolve their food offer and introducing an app, is APCO.
“I think our Cafe 24-7 foodservice strategy will continue to evolve and amplify over the next 12 months through new product development in our hot and chilled ready to eat range. The launch of our APCO App early 2023 will enhance our on-line delivery business and no doubt scale our reach and performance,” Struth explains.
Elliot said that bp plan to increase its customer touchpoints to more than 15 million a day globally by 2025.
“Our convenience strategy is about creating something distinctive, that really sets us apart from other convenience offers – so we’re trialling, testing and rolling out compelling new offers across our network.
“We’re also upgrading stores to deliver a great in-store experience – delivering clearer signage, more thoughtful store layouts and improved technology.”
Cardinale said that New Sunrise’s priority is to continue to drive retail growth by giving shoppers more reasons to stop at New Sunrise stores.
“The shift in this mindset will move customers from treating convenience as transactional commodity-based visits, to experiential and daily habitual visits. We seek to do this in a number of ways, including the recalibration of the pricing and promotional mix on key categories.
“New Sunrise will support retail members through driving awareness of their stores and locations. We will accelerate our brand love and awareness of the Sunrise Enjoy Local brand and our mascot, Sunny Sunrise. Through both the digital sphere and our above-the-line TV campaigns, we aim to educate and connect with Australian Consumers, so that they know that when they see Sunny Sunrise, they are supporting a locally owned and operated store, offering genuine care for the local community.”
This care includes continuing its brand partnerships with both ‘Heart of the Nation’ and ‘Beyond Blue’, which reinforces the important role New Sunrise sites play in their local communities as they continue to build on their mission of helping people in their communities enjoy life and get on with their day.
Park reiterates that as an industry, if P&C want to thrive and prosper, it must be relatively united in its focus.
“Product inflation control and supply chain continuity are crucial to our success. We are a profitable and brand led channel for many trade partners, and we have millions of shopper missions to solve for each and every day. It’s a team effort.” C&I
APCO’s impressive Café 24/7 food offer A New Sunrise branded storeTHE INSIDE SCOOP
As summer approaches, what are the best ways to get the most out of your freezer section, asks Thomas Oakley-Newell.
As the warmer months arrive, customers will soon start venturing to the freezers to pick out their favourite iced treat on a hot summer’s day, providing an opportunity for retailers and suppliers to capitalise.
Already the ice cream category has experienced strong growth, with the AACS State of Industry Half Year Report 2022, showing growth of 6.8 per cent in the first half of 2021 and growing 3.1 per cent in 2022.
Interestingly this growth came from ice cream, 3.3 per cent, and icy pole singles, 13.3 per cent, instead of take-home, which saw a decline of 0.7 per cent as consumers have started getting out and about again.
Elliot Ravioso, Head of Sales Petrol and Convenience at Unilever, said with a significant portion of ice cream purchased on the go, the P&C channel is extremely important.
“If we have learnt anything from Covid-19, it is that consumers are living more flexible lives resulting in the merging of once strict occasions such as working, leisure and consumption. Consequently, consumers are driven even more by convenience and fulfilling their ‘need state’.
The ‘needs for today’ mission is the most prolific shopper mission for ice cream, and as such, consumers are favouring quicker shopping trips in nearby convenience channels to instantly satisfy their hunger or craving.
“Unilever sees a great opportunity to leverage the convenient and seasonal locations the P&C channel offers to satisfy the needs of the ice cream consumer. Due to these shifts in consumers’ behaviour, the P&C channel will continue to play an important role in the Australian ice cream market moving forward.”
David Bickle, Category Manager at New Sunrise, said that ice cream is an important part of the convenience market as it speaks directly to the way Australians enjoy the outdoors.
“Australians are out and about, on the move, and enjoying the outdoor lifestyle. Whether it be kids riding their bikes down to the corner store and standing around the freezer or Mums and Dads bringing ice creams home after stopping for fuel.”
Bickle has noticed a trend within the category with the long-term domination of the indulgence segment now being overtaken by snacking as the dominant segment within impulse ice cream.
“Indulgent brands such as Magnum and Connoisseur remain big sellers within our stores, however they have now been eclipsed by snacking, driven by the expansion of brands like Maxibon, Gaytime, Drumstick and the Cadbury’s range.”
Ravioso said Unilever, which produces both Gaytime and Magnum, has consistently seen the iconic Golden Gaytime Original be the number one impulse product in Australian convenience, and this latest quarter is no different.
“Further, due to the highly seasonal nature of the ice cream market, we see the refreshment segment within ice cream greatly over-index in summer where our Calippo Raspberry Pineapple product is the number one product in this segment.”
Unilever’s Ben & Jerry’s brand is also highly successful within the take home market, representing 50 per cent of all take home sales, and is the number one take home brand.
“We are trying to de-seasonalise the ice cream market by driving sales in the winter months largely driven through our popular Ben & Jerry’s products Half Baked, Choc Fudge Brownie, and Choc Chop Cookie Dough.”
Bickle said the take home ice cream product has been a notable change within the ice cream market, with the 437ml to one litre tubs becoming very popular across New Sunrise stores.
“Of the take home range sold, around 30 per cent of convenience purchases are ordered from an online platform to be delivered to home or ordered online to be picked up in-store through apps like the Grab it Local app we utilise.
“Tubs have gone from a couple of lines offered in a convenience store to a full door or perhaps even two doors in our larger stores. This is not at the stage where it rivals impulse products, however its growth is notable and has become a strong factor in planning out the category. The decision to place a larger freezer may be balanced with a mid-sized freezer and an upright for take home.”
Peters has experienced impressively stronger growth than the channel average, reporting 9.4 per cent YTD, coming from both the impulse side and the take away side, explained Parita Parekh, Category Manager Convenience and Specialty at Peters.
“With three of the top five brands in impulse ice cream – Peters ice cream portfolio has an offer to suit all consumers. The biggest brand for Peters is Maxibon, with 15.9 per cent value growth (QTR to 22/05/2022), an offer that strongly resonates with convenience shoppers.”
Ice cream in P&C is highly impulsive –64 per cent of shoppers do not plan to buy ice cream when they enter an outlet.”
- Andrea Hamori, Head of Marketing, Peters Ice Cream
INNOVATE, INNOVATE, INNOVATE
Innovating the biscuit end of the Maxibon is something Parekh says consumers love and proved successful in April 2021 in a collaboration with popular TV show Rick and Morty with the release of a limited-edition flavour – Pickle Rick Mint.
“The flavour featured a mint slab with mint crisps sandwiched between the iconic Maxibon biscuit and half dipped in a Pickle Rick inspired green coloured white choc with cookie crumbs.”
Building on this success, Peters released Maxibon Waffle On in July this year, the innovation sees Maxibon’s iconic biscuit end transformed and upgraded to two big, golden, sugar-dusted waffles.
Andrea Hamori, Head of Marketing at Peters, said they know how much Australians love Maxibon as it has become a staple in so many freezers.
“Maxibon is all about being ‘born different’ and we know our consumers love different and love bold. So, we are extremely excited to be launching Maxibon Waffle On, our biggest innovation to date. Not only have we transformed the biscuit end for the first time ever, but we are pushing the breakfast boundaries giving our fans a Maxibon take on brekkie they can enjoy anytime, anywhere.”
Unilever has also not been resting on its laurels, with the release of new iterations of its popular Golden Gaytime product, including its new Bites range, which Ravioso believes is a major opportunity with potential to build out this segment in the channel.
“We have created an entire new segment this year in shareable snacking. This year we launched shareable ice cream bites in Golden Gaytime, Magnum, Ben & Jerry’s, which steps ice cream into one of the highest growing areas in convenience. Being able to portion control ice cream, or share an ice cream between friends, on the couch, in the car on a road trip, or out after a meal is an entirely new format and one that we are really excited to bring to Australia.”
It has become critical that ice cream performs as a category. Electricity costs have significantly risen, and it takes around three times the power to keep an ice cream freezer running in comparison to a drinks fridge.” - David Bickle, Category Manager, New Sunrise
Another market Unilever has tapped into is the growing plantbased segment with the launch of Golden Gaytime’s new plantbased range, which still features the iconic biscuit coating with a toffee-flavoured creamy centre.
Annie Lucchitti, Unilever/Streets spokesperson, said the plant-based launch is about opening their products to more Australians regardless of their dietary needs or choices.
“Australians have been buying more plant-based products than ever, and we are thrilled we could bring another Aussie classic into this domain too. Golden Gaytime has been around for over 60 years and recreating this iconic product had to maintain the delicious expectations that come with our classic treat.”
INSIDE THE FREEZER
Bickle explained that new product development (NPD) plays a factor when New Sunrise is deciding which ice creams to range, as NPD will always provide growth and new lines will constantly draw people to the freezer, but this isn’t the only factor New Sunrise considers.
“Other factors include brand performance and support, it is very important to be aligned to what the ice cream companies, and their brands have worked toward being their key launches, major competitions, or key focuses for the season. Promotions are critical, people will purchase from this category but only if the category provides choice and value.
“Fun; it is important to remember fun and enjoyment are at the centre of the category, the consumer will often be families or children who are perhaps not interested in the decadence of indulgent or the size of a snacking offer. And of course, refreshment, for most regions of Australia, hot summers and an outdoor lifestyle drive the category. The refreshment offers peak in summer but are pretty much enjoyed all year round.”
Hamori agrees that innovation is key in the channel to continue to drive excitement and to attract customers to the freezer, with research showing that shoppers are 76 per cent more highly likely to trial new products in P&C, with 87 per cent of these shoppers repeat purchasing the product1
“Ice cream in P&C is highly impulsive – 64 per cent of shoppers do not plan to buy ice cream when they enter an outlet1 Because of this, point of sale is critical to drive engagement and penetration. The majority of shoppers will buy an ice cream once they get to a freezer.
“Therefore, the key to conversion is getting shoppers to the ice cream freezer, aided by emotive point of sale along their path to purchase. Peters continues to invest in a broad suite of POS and off location freezer solutions that help engage the consumer in-store across the entire path to purchase. This is becoming increasingly challenging for the category, as we compete for real estate against other food and beverage offers in these outlets.”
Bickle also offered some advice when stocking ice cream products.
“It has become critical that ice cream performs as a category. Electricity costs have significantly risen, and it takes around three times the power to keep an ice cream freezer running in comparison to a drinks fridge. Larger freezers and enormous stock holdings are a luxury the category cannot sustain unnecessarily. We are very precise when placing the category into a store. What sales the category will make and what profit will the category return are key to setting up new stores.
“Large freezers were traditionally placed determined by the space available, it is now more determined by sales opportunity.” C&I
TAKE CARE OF WHAT MATTERS
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BUSINESS-WIDE PRODUCTIVITY
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Bennetto packs a whole lot of good into its chocolate
Our C&I Choice product for this issue is Bennetto, a carbon zero chocolate brand which produces a range of certified organic, Fairtrade, vegan, and gluten-free chocolates.
Bennetto’s range is also free from additives and preservatives and appeals to both the premium customer and health-conscious consumer. Bennetto is becoming as well known for its beautifully designed packaging as it is for the delicious dark chocolate that lies within.
Bennetto have achieved the ‘do good’ status by creating a valueadded experience for their consumers and maximum impact for the farming producers.
All ingredients are real, whole, and natural. From freeze dried raspberries, toasty hazelnuts, and pure orange oils. Paired only with cocoa from Fairtrade farming communities in the prefect growing regions of Peru, Ecuador, and Madagascar, the result is a chocolate full of punchy flavours, interesting textures, and melt-in-the mouth complexity. And a bar that is uniquely illustrated with quirky birds from the origin to help tell the cocoa story.
With the unique ability to manufacture from single origin organic cocoa beans to scale and without additives, their positioning spans organic premium to super-premium with an ‘eat less, but better’, proposition and considered well priced and accessible to mainstream. Each bar of Bennetto chocolate is a delicious gift on the inside and out.
Contact Lucy Bennetto directly on lucy@bennetto.co.nz or one of four distributors in Australia; Unique Health Products, Cartel and Co, First Ray Distribution, Perth Health.
You butter believe it – Dare launches Butterscotch Latte
Following the success of Dare Toffee Nut Latte, the Dare team is thrilled to announce the arrival of the latest limited time flavour – Dare Butterscotch Latte. Combining a delicious blend of buttery brown sugar alongside the iconic Dare taste Australians know and love, Dare Butterscotch Latte provides a Dare fix like never before.
Over the last quarter, milk-based beverages have shown seven per cent growth vs YAGO, with the Iced Coffee segment driving this overall category growth.
As Australia’s number one RTD Coffee brand, Dare’s limited time flavours are a must have for retailers across the country. Each flavour rotate performs a key role in bringing new customers into the fridge and ultimately creating incremental sales.
Over the last two years Dare’s limited time offers have represented more than 20 per cent of total Iced Coffee NPD, leveraging their position as Australia’s number one Iced Coffee alongside classic flavour combinations to increase penetration and bring light and lapsed iced coffee consumers back into the category.
Dare Butterscotch Latte is set to reinvigorate the Iced Coffee category, not only bringing in new shoppers with 65 per cent purchase intent, but also creating more value for retailers through growing the overall Milk-Based Beverage category. Flavour rotates such as Dare Butterscotch Latte create a bridge for Flavoured Milk consumers to enter the Iced Coffee segment, increasing their product repertoire and basket size. The combination of Butterscotch and Coffee has become a global trend with Dare Butterscotch Latte leveraging this trend alongside sustainably sourced Rainforest Alliance coffee to deliver on the key consumer desires of taste and sustainability.
Dare Butterscotch Latte is available in 500ml and 750ml pack sizes and will be in market for 12 months. It is available to order via your current customer portals.
Sources:
IRI MarketEdge | Quarter To 31/07/22 vs. YA IRI AU Grocery Scan and Convenience Scan, Iced Coffee, Dollars (000s), MAT 12/04/20 to MAT 11/04/21.
Tonik. Replenish. Go
As the old adage goes, life is about balance. However, the reality that we all know is balance can feel impossible to achieve. It’s this enduring challenge of modern life that inspired Tonik Nutrition.
As Australians become increasingly time poor, and yet, maintain an appetite for an active lifestyle and healthy diet, a clear gap emerged for high quality and accessible, on the go nutrition. As nutrient rich as they are convenient, Tonik’s protein drink and bar range also cater for our evolving dietary preferences. Tonik’s RTD plant-based protein range being an Australian-first innovation.
The combination of proprietary plant protein blends, alongside Tonik’s proprietary multi-step cold microfiltration process, delivers a nutrient rich drink that tastes fresher and keeps you feeling full for longer.
This focus on innovation continued with Tonik’s protein and plant-protein bar ranges. In addition to an ever-expanding flavour range, inspired by the tastes of an Australian childhood, Tonik’s unique layering process delivers a smoother taste with a signature contrast of crunch.
The go-to on-the-go nutrition range
Tonik’s innovation and positioning have translated into immediate consumer adoption. With national ranging in Coles, Tonik’s bar ranges are selling at 8-11.5 units per store per week.
Most recently these ranges have been picked up by EG Petroleum and OTR for nationally ranging, further cementing the Tonik range as the go-to nutrition option for on-the-go Australians.
Proudly Australian owned and made, it’s Tonik’s unique insight into Australian life, combined with unrivalled manufacturing innovation and capabilities, that’s allowing Aussies to REPLENISH. GO.
Made for Australians, by Australians
Tonik Nutrition is a sports nutrition brand, part of 100 per cent Australian-owned and ASXlisted, Halo Food Co, Australasia’s largest sports nutrition manufacturer. With 25 years of local and international contract manufacturing experience, Halo is the go-to contract manufacturer for health and wellness products in Australia.
Suntory BOSS Coffee continues to grow RTD Coffee category with Caramel NPD
Three years after launching in Australia, Japan’s Suntory BOSS Coffee has added a new blend to its successful canned coffee range, Iced Caramel Latte. It joins the already popular line-up of Suntory BOSS Coffee, including Iced Long Black, Iced Double Espresso, Iced Latte, and Iced Vanilla Latte.
Suntory’s Marketing Manager of Global Brands Shana Khan believes Iced Caramel Latte will help the category continue to grow.
“In Japan there are hundreds of Suntory BOSS Coffee products from Iced Long Black to Café Au Lait ranging with different blends and roasts that cater to the many ways consumers drink their coffee, and we are excited to replicate that across Australia and New Zealand and give consumers a variety of options based on their taste preferences.”
Iced Caramel Latte is a blend that will appeal to those who love the taste of quality coffee but also have a bit of a sweet tooth. The new blend taps into the younger audience’s coffee and flavour preferences and will help recruit new consumers into the category, driving further incrementality.
“We know that coffee is not a one size fits all and the way consumers drink coffee is really interesting and diverse. The variety of coffee consumers choose to drink varies depending on time of day, occasion, and need. Broadening the Suntory BOSS Coffee range will help us grow the category and drive more mainstream appeal with consumers,” says Khan.
TRY OUR NEW ICED CARAMEL LAT TE
Naked Life expands into the bubble tea category
Naked Life, the innovative company behind Australia’s sugar-reduced revolution, has expanded into the bubble tea category targeting Australia’s youth and Asian market.
The Melburnian start-up is looking to make the trendy bubble tea category better for you with its brand new 50 per cent less sugar Naked Life Betta Boba range.
The Betta Boba range is available in four popular flavours: Original Milk, Brown Sugar, Peach, and Mango and contains tapioca and coconut pearls.
David Andrew, Founder and CEO of Naked Life, said the bubble tea category has been growing rapidly with bubble tea shops being the fastest growing QSR outlet.
“However, given the often high sugar amounts in these drinks, we saw a need to bring a format that does not only taste great, but contains 50 per cent less sugar,” he said.
Supporting this, research from a recent Grandview study, states that the global bubble tea market size was estimated to be worth US$2.15 billion in 2019 and US$2.32 billion in 2020 with an expected compound annual growth rate of 8.9 per cent from 2020-2027 reaching a total of US$4.25 billion by 2027.
The latest release from Naked Life comes just after the brand launched a series of nootropic influenced hot drinking chocolates. The company’s dedication to ‘better-for-you’ products are what spurns its R&D team.
“We are dedicated to creating a healthier Australia without compromising the taste or fun of your favourite drinks,” says Andrew.
The range is available in Woolworths nationally, both in fourpacks as well as individual cans. It is also available in WHS stores and has its sights set on the petrol and convenience channel.
Stay charged with Joyroom Star 22.5V
Never run out of power with Joyroom Portable Power Bank External Battery Charger 10000mAh D-QP191.
When you’re out and about, the last thing you want to worry about is your phone running out of power. With the Joyroom Star power bank, you’ll never have to worry again. This highcapacity portable battery has two USB outputs and one USB-C input/output, so you can charge up to three devices at once. It also supports multiple fast charging protocols, so your gadgets will be back up and running in no time. Never be caught without power again with the Joyroom Star.
The Joyroom Star power bank has a capacity of 10,000mAh, so you can charge your devices multiple times before needing to recharge the power bank itself. With two USB outputs and one USB-C input/output, you can charge up to three devices at once with this power bank. This is
compatible with QC3.0, PD3.0, FCP, SCP, and AFC fast-charging protocols.
This power bank supports multiple fast-charging protocols, so your devices will charge quickly and efficiently. The LED display on the power bank lets you know how much juice is left, so you’ll never be caught without power. You can use either a Type C or Micro USB cable to recharge the Joyroom Star power bank. The Joyroom Star power bank is slim and lightweight, so it’s easy to take with you on the go.
The design is compact, looks stylish, withstands rough use and is compatible with various models of iPhone, Samsung, Huawei and other Android phones. Own this multifunction power bank to take your tech experience to a whole new level.
Visit iplretail.com.au for more details and for other innovative gadget accessories.
SUNGLASSES
Introducing LeVeL Lemonade & Cola
Chrish Graebner, Founder of LeVeL Beverages, describes the LeVeL range as the “common ground for your inner angel and devil”. He explains this by saying, “The inner angel loves it as it is low sugar as well as high in Vitamin C and Magnesium. While that little devil can get lured over the line as it tastes like a soft drink”.
The latest flavour to be added to the range, LeVeL Lemonade and Cola, is the perfect balance to cater to all the angels and devils out there, providing a better for you option for Cola enthusiasts.
Much like the company’s current LeVeL Lemonade range, the new addition is low in sugar, and contains 160mg of magnesium and 100 per cent of the recommended daily intake of Vitamin C. It is also marketed as 100 per cent Australian made and owned.
“Cola is the flavour largest segment in carbonated soft drinks,” says Graebner. “But the real last innovation in that area – attracting the mainstream appeal – was low sugar – and that was more than 30 years ago.
“In many channels, the low sugar Cola versions outsell the normal sugar versions. Importantly, in my experience: My inner Devil loves Cola!”
LeVeL Lemonade and Cola will be available through the proven wholesale partners as well as in Ampol, EG, Coles Express, New Sunrise, OTR, Ezymart to name but a few.
Eclipse’s latest flavour offers a different take on traditional mint, combining the freshening impacts of mint with the rich and distinct flavour of grape.
It has been developed in Australia by Mars Wrigley’s Asquithbased research and development team and with the gum and mints category a growth engine for Mars Wrigley, this new product innovation is injecting fun into the mints category after a challenging 24 months due to Covid-19 lockdowns.
Chris Hutton, R&D Director at Mars Wrigley Australia said the innovation was an exciting one for the company and broader mints category.
“With more than 60 years of manufacturing history in Asquith, we’re a proud Australian manufacturer and are continuing to invest and innovate new products across our gum and mints portfolio locally. It’s an exciting time for us.”
Eclipse Grape is available now in major supermarkets and convenience stores nationwide.
Mars Wrigley’s Asquith factory produces some of Australia’s favourite gum, mint and confectionery brands such as Extra, Skittles, Eclipse and Juicy Fruit.
Iconic mint brand Eclipse launches new grape flavour
A Toatl-ly unique flavoured milk!
Toatl brings plant based flavoured milks to the fridge.
The newly launched Toatl flavoured oat milk combines the deliciousness of traditional flavoured milk with the growing trend of plant based options.
The three flavours include a decadent chocolate, a smooth caramel, and a fruity flavoured strawberry, all made using Aussie oats, by an Aussie company, right here in Australia.
Toatl plans to disrupt the flavoured milk segment with its oat milk based offer, using the knowledge that oat milk has been outgrowing other milks in the category over the last two to three years, and predicting that this trend will continue as more consumers add plant based milk into their repertoire.
Recognising that plant based eating is on the rise, and with an increasing number of consumers adopting plant based milk into their diet, Toatl capitalised on the fact that there was no plant based options in the flavoured milk category.
Tim Clarke, Shopper Strategy Manager at Sanitarium, producer of Toatl, said the flavoured milk segment thrives on innovation.
“With more consumers at the fridge looking for a plant based option, Toatl provides the opportunity to convert these shoppers with a great tasting offer. This will bring new consumers into the segment and drive incremental sales. It’s a must have!”
Most importantly, said Clarke, is that they wanted to make a plant based flavoured milk option that didn’t compromise on taste.
“We know that flavoured milk is a bit of a treat, and we couldn’t be happier with how delicious Toatl tastes. We have three of the most popular flavours – everyone loves chocolate and we’re sure our smooth and creamy tasting Chocolate Flavour will be a hit. Fruity Strawberry Flavour is a delightful treat, and our silky-smooth Caramel Flavour is a standout.”
Appealing to a younger generation that is increasingly health focused, Toatl provides a tasty alternative to traditional flavoured milk.
“This younger generation wants to eat healthy without taste compromise and are embracing plant based eating. They are likely to consume dairy and plant-based milk, so having Toatl Flavoured Oat Milk provides a plant based option to meet changing taste and preferences,” explained Clarke.
The initial launch will see the new flavoured milks packaged in 500ml PET bottles.
“Quick and easy, grab and go convenience with a 500ml PET bottle you can consume immediately or reseal to enjoy later.”
With ranging already secured across 7-Eleven, Coles Express, Ampol, and bp, Toatl can be found in the majority of buying groups throughout the petrol and convenience channel.
With more consumers at the fridge looking for a plant based option, Toatl provides the opportunity to convert these shoppers with a great tasting offer.”
– Tim Clarke, Shopper Strategy Manager, Sanitarium
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Maximus brings back fun and flavour for summer
Frucor Suntory’s popular Maximus sports drink has released two brand new flavours, just in time for summer.
Available from September 2022, Pine Lime and Lemonade Ice Block join Maximus’ range of big one litre thirst quenchers ready for the Aussie summer heat.
Pine Lime is a tried and true flavour in Australia, it’s everywhere from ice cream to yoghurt, even beer. The Maximus team looked at flavour trends from adjacent categories and applied the learnings to its line of sports drinks resulting in a refreshing combination of delicious pineapple with the right balance of lime for the ultimate taste.
Lemonade Ice Block is also a new and different addition for the category. Consumers will recognise the taste immediately – refreshing, nostalgic and fun. It just tastes like summer.
James Deysel, Director of Hydration and Nutrition at Frucor Suntory, comments:
“Our research indicated that taste is a key driver of Sports Drink consumption. This became our key focus when looking at NPD plans for summer 2022/23. In addition to our insights report, we tested the new liquids extensively with our Maximus consumers. The positive scores and results blew us away. Our consumers preferred the new Pine Lime and Lemonade Ice Block flavours to some of
Golden Gaytime launches plant based variety
Streets has launched a new plant based version of its iconic Golden Gaytime to meet the demands of this growing consumer segment.
The launch comes following years of lobbying and a petition calling on the classic Australian ice cream to create a vegan friendly option.
The plant based Golden Gaytime will still feature the iconic biscuit coating with a toffee-flavoured creamy centre and will be available in time for summer.
Annie Lucchitti, a spokesperson for Streets, said that there is palpable excitement in the market for this type of product.
“This isn’t any ordinary flavour launch, this is about opening up our product to more Australians, so no matter your dietary needs or choices – we invite you to taste the difference,” she says.
“Australians have been buying more plant based products than ever, and we are thrilled we could bring another Aussie classic into this domain too. Golden Gaytime has been around for over 60 years and recreating this iconic product had to maintain the delicious expectations that come with our classic treat.”
The new plant based version promises to not compromise on the unique Golden Gaytime flavour and the team is so confident of this that they are challenging Aussie consumers to ‘Taste the Difference’ and post their first taste test on social media with the hashtag #TasteTheDifference.
The plant based range has been available since early September at Coles, IGA, Richies, Drakes and Romeos for RRP$9.50 for a four-pack.
DoubleCool Sustainable Cooling Solutions
DoubleCool products are made from individual acrylic sheets. The raw material is a liquid petroleum product called a ‘monomer’. In order to produce end products such as windows or doors from sheets of acrylic, the sheets must first be heated before they can be pressed into the required shape using a moulding press, they are stuck together to achieve a doublewalled insulating effect. The most stringent quality controls are carried out on the production process as a whole.
The doors are stable and the much higher break resistance in comparison to conventional glass. Additional advantages that are not only characteristic of DoubleCool doors, but also guarantee unrivalled quality and product features.
Advantages of DoubleCool doors include:
• Maximum transparency completely frameless, insulating acrylic doors
• Guaranteed scratch resistance with new specially developed coating
• Suitable for retrofit markets
• 10 per cent more transparent than glass, allowing food to be presented more attractively
• All DoubleCool doors are 100 per cent recyclable
Quick installation
The DoubleCool lightweight and easy handling refrigeration doors come in a complete turn-key package, with a clear installation instruction. The fast and clean installation typically happens overnight but can be executed at daytime as well in two minutes per door. This means no loss of revenue due to a limitation in opening hours. The same applies to maintenance, if a door becomes damaged due to harsh treatment, repair can happen on site in less than five minutes.
Energy saving up to 50 per cent
DoubleCool cooling doors save significant energy up to 50 per cent compared to open cabinets. Apart from the direct saving this enables the use of lighter compressors and/or longer technical lifetime of the refrigerating system. Increased shelf life and quality of fresh food are important cost effective elements of the doors. DoubleCool doors help to reduce the amount of food waste by improved temperature distribution with the cabinets.
For more information contact Greg Haynes on 0407 288 461 or Martin Shi on 0407 595 588.
Shine+ Charged range grows better energy with Yuzu Lemonade
The Shine Charged 500mL range hit the shelves last year in 2021 and has since continued to grow in distribution as more and more consumers seek a better (and tastier) alternative to energy.
Today, Yuzu Lemonade joins the Shine Charged Range bringing the total product count in this range to five, which is an incredible achievement in less than 12 months since the range went live in national distribution across some of Australia’s largest P&C retailers.
Shine+ Yuzu Lemonade is a premium energy offering that boasts Shine’s unique blend of high-quality sourced natural nootropics with the addition of its latest nootropic Yerba Maté.
James Noakesmith, Brand Manager at Shine, said it’s incredibly important for any brand looking to build credibility and bring genuine value to the category that they focus on products with customer centricity.
“The consumer’s opinion, actions, and behaviours cannot be undermined or ignored. Creating conversations without boundaries
can unlock an incredible amount of creativity and ideas. Shine is heavily invested in its community and continues to seek clever ways to understand how it can better serve its mission of helping people think, feel and do better… and that is what it’s all about… this is why Shine continues to grow and won’t stop.”
Yuzu Lemonade is currently available to purchase in single units at RRP $5.95, however, four-packs are definitely on the cards as the Shine Charged Range continues to grow and the opportunities to extend the pack options are beginning to present themselves.
Shine is thrilled to announce that 7-Eleven, a retailer that has supported Shine Charged from its launch, is supporting the launch of Yuzu Lemonade exclusively. You can find the latest and greatest Shine at your local 7-Eleven nationwide.
Interested in becoming a wholesale partner or want to find out more about Shine? Contact Shine at hq@shinedrink.com and they will be happy to chat!
Your Starbucks coffee whenever, wherever
The launch of Starbucks Iced Coffee will expand the brand’s famous cold coffee offer into retail.
We are confident the Starbucks iced coffee ranges will attract new consumers and create new moments of indulgence and enjoyment to grow the iced coffee category.”
– Lauren Mann, Marketing Manager
– Ready to Drink, Nestlé
Starbucks Iced Coffee is launching across Australia in October with two of the brand’s iconic ranges:
Starbucks Frappuccino and Starbucks Doubleshot.
A renowned, global brand, Starbucks ranked as the eighth most admired company in the world in 2022 by Fortune Magazine. In Australia, more than 95 per cent of people are aware of the brand with particularly strong appeal to millennials and Gen Z.
Starbucks successfully entered into the Australian retail market in 2019 with the Starbucks Capsules range and is now the second largest retail capsules brand in Australia*.
Building on this success, the launch of Starbucks Iced Coffee will expand the brand’s famous cold coffee offer into retail, with cold coffee representing around 60 per cent of cups sold in Starbucks cafes in Australia.
Ready to drink iced coffee is a growing category in retail, with small formats (250ml-375ml) in particular, driving growth and bringing new shoppers into the category as they significantly over index in driving trial*.
Lauren Mann, Marketing Manager – Ready to Drink, Nestlé, said the category appeals to a younger consumer base that wants the convenience of an on the go offer that fits into their busy lives.
“We are confident the Starbucks iced coffee ranges will attract new consumers and create new moments of indulgence and enjoyment to grow the iced coffee category,” she said.
The Starbucks Iced Coffee ranges have been crafted to deliver the unique Starbucks signature taste on the go.
Starbucks Frappuccino is inspired by the famous coffee Frappucinos enjoyed in Starbucks cafes every day. A harmonious blend of Starbucks coffee and creamy milk, it is available in two flavours, Coffee and Mocha.
Starbucks Doubleshot is a café inspired Starbucks coffee blend with a double shot of coffee. Available in Espresso Latte and Mocha, it is a deliciously intense drink.
The launch will be supported by a massive campaign to drive awareness and desire for Starbucks Iced Coffee.
*Source: Nielsen Scantrack Total Grocery and Convenience
Immerse yourself with Fuse Neon Tunes Headphones
Sometimes you listen to smooth beats to relax and get in the flow of work, you know, for concentrating. Or maybe you wear headphones for teams, zoom or Google hangouts calls these days.
Then other times you listen to upbeat energy music, or something a little flashier, letting the colour of the music express itself and raise your mood. Well Fuse Neon Tunes Bluetooth Headphones are engineered for all the above.
We were looking to build a headphone that was for everyone that you could use practically during the day taking calls and listening to podcasts but then use at your leisure to really enjoy the music and have a great time, we thought, that sounds like fun.
We built headphones you could truly immerse yourself in, with amazing sound quality, delivering high fidelity audio for crisp and powerful tunes on the go. You can stream music, podcasts and enjoy calls with the reliability of Bluetooth 5.1 wireless technology. If it is a long day, you can also have confidence in the up to 25 hours wireless play
time. When you eventually run them flat, you can quickly recharge via USB-C or if you don’t have power but need to use them instantly, they also come with a wired 3.5mm port and cable to get you out of trouble immediately.
At Fuse Audio we also want to make things that look like fun so with the Fuse Neon Tunes you can enjoy yourself with dynamic RGB Lights. Got a zoom call with your boss? Don’t worry these lights are off by default but double tap play and you’re just that little bit flashier than before. You can have confidence your boss can hear you too via a built-in microphone with advanced audio profile to ensure crystal clear hands-free calls. Made for daily use Fuse Neon Tunes are lightweight, comfortable and fold up to save space to store in your bag or while travelling. Need these in your life or want to learn more?
Contact orders@pacificoptics.com
Watermelon – the flavour of the moment!
Watermelon has been the flavour ‘de jour’ in beverages for a few years now and its popularity shows no sign of waning. Watermelon conjures up images of summer, beaches, warm balmy nights and above all, a deliciously refreshing treat.
It is for this reason that it’s the latest flavour to be launched in the Waterfords Sparkling Flavoured Mineral Water 475mL range. Other flavours in this range include Tahitian Lime, Apple Berry and Orange Passionfruit, so Watermelon is the perfect extension. The upfront sweet taste gives way to a subtle sour note, resulting in a mouthwatering taste sensation.
Waterfords has always been a trailblazer in the beverage market. Launched almost 40 years ago, Waterfords was the first low-joule flavoured sparkling mineral water in Australia. Even before the explosion of better for you beverages, Waterfords was the original innovator in this space.
Today, Waterfords markets both full-bodied and low-joule variants in 375mL cans, 475mL and 1L PET bottles.
Waterfords Sparkling Watermelon 475mL hit stores at the end of September 2022, just in time for the commencement of the summer period. Why not add colour and sparkling refreshment to your beverages this summer by ranging Waterfords Sparkling Watermelon or indeed all the Waterfords Sparkling 475mL variants? Your customers will thank you for it.
Contact Tru Blu Beverages on (02) 9912 6700.
Purina Supercoat relaunches with renewed focus
The market leading dry dog food’s relaunch will focus on four key areas.
The number one ranked brand in the dry dog category, Purina Supercoat, is being relaunched, with a focus across four key areas.
The four areas are product reformulation, pack architecture, design, and recyclability, with the relaunch being heavily supported by an integrated media campaign.
Pet ownership has grown an impressive eight per cent in the past two years, and a high number of Australians love their pet as they would a family member.
As such, focus on their pet’s health has increased, with more consumers purchasing specialised foods and recipes based on their individual pet’s needs.
Samantha Davies, Account Manager of Mass and Impulse at Purina, said that 50 per cent of owners are concerned with the functional health issues of their pets such as skin, mobility, and weight.
“Pet owners show a strong preference to feed premium pet food to meet the needs of their pet. Many are willing to reduce their own spending to splurge on their pet.”
The high awareness of Supercoat, at 70 per cent, and high penetration, with one in three shoppers purchasing the brand, makes it the number one ranked brand in the dry dog category.
Supercoat dog food is available in a number of variants catering to the different life stages of dogs and what their current dietary needs are with tailored nutrition.
Pack options of Supercoat range from 2.8kg to 18kg, with an RRP of between $16.50 to $79, meaning there is a product for every man and his dog.
To order contact The Distributors on 1800 989 022.
Pet owners show a strong preference to feed premium pet food to meet the needs of their pet. Many are willing to reduce their own spending to splurge on their pet.”
– Samantha Davies, Account Manager of Mass and Impulse, Purina
It’s a Vibe - the must-have phone cable
In the age of technology, everybody has been in a situation where they are on the go and need to recharge their device quickly. Vibe cables are the perfect solution for that, retailing at a super competitive $14.95 and available in over 900 stores Australia wide already. There is no doubt that Vibe cables are the must have product for all Petrol and Convenience stores, and their high selling numbers are the proof.
Vibe is different to many other charge and sync cables, offering a variety of lengths and a huge range of designs that attract attention and accommodate to everyone. Cables are made from top quality components, they are strong and durable, suitable for charging any device fast and transfer data at a high speed.
The top selling cable out of the range is the classic 1m cable as it is perfect for on the go use. It is priced competitively and proven to be just as durable and high performing as the more expensive alternatives offered on the market.
The cables are displayed on a counter stand in a mix featuring 45 of the most popular designs.
The latest addition to the range is Vibe 1m cable with a LED light to indicate that the device is connected and charging. The external cable jacket is made from premium braided nylon which makes it stronger and more resilient.
Vibe cables are also available in 2m & 3m length for the most ambitious of projects, short cables are ideal for the use with laptops and power banks and 3 in 1 cables to take care of all the charging needs, the one cable charging solution.
Reach out today to order a display with a range of funky and contemporary designs and you will receive your stand within a couple of days, ready to be placed on the counter. Already range the Vibe cables? Contact us to order the newest LED cables or any other design for your stand.
For more information, please contact your Peleguy Representative on 1300 377 341, orders@peleguy.com.au or visit www.peleguy.com.au
Breath of the Dragon
This new slim Tiko lighter has seized the attention of social media worldwide, receiving raging reviews and praise for its impressively unique design. And it is now available in Australia following its searing success in the US!
This masterpiece is the only dual flame lighter ever created and the metallic dragon blueprint just takes things to a whole new level.
Press of the switch button ignites the blue windproof jet flame that works at any angle and once the switch is released, magic happens! The flame turns into soft open flame direct from the Dragon’s mouth which looks fierce and stunning!
The 3D engraved dragon head design gives it a savage look making it a star attention grabber! And it is coupled with an inbuilt safety switch which makes this lighter pocket friendly and 100 per cent safe.
This brand-new Tiko lighter is a perfect gift idea, can be purchased with a complimentary Tiko gift bag and it has arrived just in time for Christmas season.
It is available in four colours – Black, White, Gold and Blue and will RRP at $13.95 which means it's a great margin for the retailer. Stock is limited so make sure to place an order to secure stock for your store! Distributed executively by Peleguy Distribution
For more information, please contact your Peleguy Representative on 1300 377 341, orders@peleguy.com.au or visit www.peleguy.com.au
The most talked about dual flame lighter is here!
No lactose No worries!
A real coffee recharge that’s easy to digest
Australia’s number two Iced Coffee brand, Ice Break, has teamed up with the number one lactose free milk in the country, Zymil, to create the easy to digest Ice Break Lactose Free. Ice Break Lactose Free will disrupt the flavoured milk category and generate welcome news and excitement amongst consumers seeking to enjoy the delicious taste of Ice Break, made with 100 per cent Aussie milk.
With the established real coffee credentials of Ice Break, new Ice Break Lactose Free is a delicious blend of two shots of real coffee with Zymil low fat Lactose Free milk. With 25 per cent of Australian consumers sensitive to dairy, this new addition complements the Ice Break range and provides a new option for consumers seeking a real coffee recharge, that’s easy to digest.
To support the launch, digital media and in-store point of sale material will be used to drive consumer awareness and attract new drinkers into the category.
Ice Break Lactose Free is launching in a 500ml bottle and will be available in grocery and convenience stores from October.
Full-on flavour, Golden Gaytime hit!
Hungrythirsty is experiencing a sudden nostalgia for summers past, joining forces with Streets Golden Gaytime for a delicious flavour hit of golden toffee goodness, creamy vanilla, and biscuit crumb.
OAK is Australia’s undisputed number 1 rainbow flavoured milk and has a proven success with winning brand collaborations that consumers love. Flavour innovation brings incremental sales to the category, driving new shoppers to purchase flavoured milk or existing shoppers to buy more frequently.
This bromance between two giants of Aussie snacking, the OAK Golden Gaytime, will transport you back to the sunshine of happy times. Since 1967, OAK milk’s signature full-on flavour, and creamy texture has killed hungrythirsty dead like no other. Meanwhile, Streets created the Golden Gaytime more than 50 years ago, and it has been a fan favourite ever since.
The iconic pairing will drown hungrythirsty in a wave of golden toffee goodness, adding to OAK’s stellar line-up of rich, creamy, and authentic flavours that consumers have enjoyed for decades. OAK Golden Gaytime is the ultimate nostalgic flavour hit to enjoy this summer.
The new limited-edition OAK Golden Gaytime flavoured milk will be available in the iconic 600ml carton in grocery and convenience stores from October.
Over the next 15 years, Australians purchasing new cars will slowly transition to either buying an electric or hybrid vehicle. This means that the way we power our cars will evolve, albeit slowly.
THREE MILLION! 3000! 1000 TIMES!
Three million - the number of publicly available electric vehicle chargers that McKinsey estimates we will need in Australia to support the electrification of our cars by 2030.
3000. The number of public electric vehicle chargers currently active in Australia as of July 2022.
1000 times more than what we have today to get to this level of support.
Over the next 15 years, Australians purchasing new cars will slowly transition to either buying an electric or hybrid (electric and fuel) vehicle. This means that the way we power our cars will evolve, albeit slowly. Fossil fuels will still be relied upon for many years, given the average time Australians hold onto their car on is still approximately 10 plus years.
There are several factors that are holding back the implementation of EV charging facilities, with the key one being the significant investment required in upgrading the electricity grid to be able to cope with the increased future power needs. Costs can vary dependant on the site location, however, to upgrade a grid to prepare a site to offer fast charging (minimum 150kw), it can cost between $300,000 – $500,000 per site. Slow chargers can be implemented for significantly lower costs however the commercial viability of this simply does not work.
Only now are we starting to see relatively small investment by the Federal and State Governments into public charging facilities, but in my opinion, this is simply smoke and mirrors to win over voters and portray a progressive position aligned to their zero emissions policy election commitments.
In most cases, these public charging facilities are in the middle of nowhere, without any facilities for consumers to rest, recharge, and feel safe.
Connecting major highways and arterial roads is only one part of the solution. Collaborating with the existing
petrol and convenience retailers who have strategically positioned locations to keep Australians moving is what the Federal and State governments need to start to prioritise to ensure we can properly electrify Australia’s passenger and commercial vehicles.
By ignoring the petrol and convenience industry, of which 45 per cent are small family-owned and operated small businesses in consultation, these businesses may see their relevance become diminished over time.
When Australians stop to recharge their car, a slow charge can take many hours to charge, while a fast charge can currently fully charge a car in 15-20 minutes. This is almost four times the average time to fill up your car today. Charge times will likely come down as technology continues to be developed over time, however this is likely to be well into the next decade.
Given the customer experience that lies ahead, consumers should have access to great food, coffee, essential grocery items, on-the-go products, and a comfy place to sit with Wi-Fi to keep their day productive and moving while their car is recharging.
The petrol and convenience industry, the roadside retailers of tomorrow, can provide the customer experience that Australians want, like we have done for decades as the energy needs have changed.
All governments need to work with private enterprise to share the significant investment to upgrade the power grids to enable the commercialisation of a fast-charging network to ensure Australian motorists can have access to what they have come to expect.
The convenience and petrol industry stand ready to support the State and Federal Governments' long-term plans in electrification of vehicles in Australia, however incentives and joint funding is urgently needed to make this a reality.
Electric vehicles and convenience today
Darren Park offers an opinion on how convenience operators can manage their success for today and into the future.
Not a week goes by where I don’t take a call or email from c-store retailers asking about the future of our industry. And the hot topic is nearly always electric vehicles or EVs for short.
For someone who has been in and around our industry for 30 years, I do get a lot of questions about what the future is going to be like. It also means disappointing a lot of people when I tell them, “I don’t know”.
Not only do I not know, but I also don’t even pretend to know. I can guess, I can research and see what the current state of technology is here, and what’s happening in other markets globally but honestly, if I could see into the future with clarity, I’d be looking for lotto numbers.
When I write like I am now, I’m not writing to an audience 30 years from now, I’m writing to an audience of today. And in many cases, it’s not the future people are looking for, it’s really about seeking comfort. Is my convenience business safe? Will we stop selling petroleum products in the next few years? I really want to invest in improving my site, do you think I should?
And while I can’t see the future, I see my role as contributing towards us both being ready for what it could look like and managing for the now.
When we talk about EVs, it’s the now that I’d like to share an opinion* on.
The reality is that Australians will be driving internal combustion engine (ICE) vehicles for quite some time. EV penetration is very low in Australia at less than two per cent of sales. It would take significant financial support from governments in the way of legislation or incentives, for that to change with pace. And as I write, many Australians remain unconvinced by EVs, quoting range and recharge times as barriers to purchase, along with cost.
Now here’s a fun fact, Norway is about five per cent the size of Australia, with around five million fewer people. But
people will quote Norway as an example of how quickly EVs can be rolled out – Norway is a classic example of significant investment from government, driving adoption.
Then we talk about charging stations. To cover the whole 7.692 million square kilometres we have in Australia, the Electric Vehicle Council in its State of Electric Vehicles 2021 report estimated we have only 3,000 public chargers currently.
Now, here’s the statistic that really blows my mind. Australia has some 20 million cars on the road. There’s an emerging rule of thumb, which states that markets will need one EV charger for each 15 vehicles on the road. Let’s do the math, 20 million cars and one charger for every 15 vehicles… that’s 1.3 million chargers. Who’s paying for that and when? In our transformation to electrically powered transportation, could it be that we should be focusing less on EVs and more on the infrastructure that will recharge them?
While we talk about EVs today, there are so many alternate fuels like hydrogen, biomass and even plant based oils that are in use worldwide. We are entering a new world where our human intelligence and concern for our planet’s health, is inspiring new approaches. It’s a great time to be in our industry.
In closing, what I do know about now is that our industry continues to grow. We are seeing innovation in site layouts every day, where our common goal of serving more people, fast and solving their missions is what brings shoppers to us. Let’s be the best we can be today at what we do. Do that and keep your eye on the future like I do, and we’ll find ourselves a role in shoppers’ lives for a long time to come. C&I
My legal team needs you to know this is an opinion, not financial advice.
be the best we can be today at what we do.
Ampol
Manager
thoroughly enjoyed joining strong women across the industry sharing their stories of growth and development.
– Skye JacksonEmpowering women in convenience
Skye Jackson reflects on some important themes covered at the recent AACS Women in Convenience events in Sydney and Melbourne.
As a board member of the Australian Association of Convenience Stores (AACS), I am proud to be involved in AACS Women in Convenience (WIC).
It has been a while since we have been able to attend industry events face to face, and I am incredibly happy that we can connect in this way again.
Being part of the WIC panel in 2022, I reflected on the first time that I attended one of these events in Melbourne in 2013, after moving from Queensland for a promotion that I did not think I was ready for. I remember feeling inspired by the strong and successful women sharing their career journeys and could only have dreamt at that point I could be one of those women in the future.
Being part of the panels in both Sydney and Melbourne this year was a wonderful experience. I thoroughly enjoyed joining strong women across the industry sharing their stories of growth and development. I was left feeling both inspired and informed, and interested in the emergence of consistent themes. As someone who has been in the convenience industry for quite a while, it was nice to reflect on how much positive change the industry has seen in recent years. This includes vast improvements in diversity, particularly the emergence of women in leadership roles. While we have come a long way, we agreed that there is still much more to be done. Organisations may be at different points in their journey towards diversity and inclusion, and achieving diversity is not a simple task that can be simply ticked off and ‘completed’.
Reflecting on the WIC sessions this year, there were a few important themes covered by many of the panellists that have since continued to resonate with me:
• Back yourself! You are your own best advocate, so make sure you do that well. Focus on what you can do, not what you cannot. Many of us know the feeling of looking through a job description and focusing on the things we
do not, or may not have, instead of thinking about the things we do have. We also talked about how sometimes not knowing everything is an advantage and can give you ‘fresh eyes’ to see what others may be overlooking.
• Be open to opportunities. Some of the amazing women on our panels had moved, even internationally, to take advantage of an opportunity that enabled them to progress their career. Personally, being open has allowed me to live in three different states but has also meant that I have taken opportunities to work on projects that broadened my knowledge and experience. I have also had a relatively open view of what my career path may be (as opposed to narrow, or niche) which has meant that I have been flexible about taking side steps to different areas, which has helped to round out my knowledge and skills.
• Look for advocates and mentors. Mentors are valuable and many people have these either formally or informally. Advocates can be equally important, making a point to connect with other stakeholders externally or internally may just help you take that next step in your career, these are people in your network that may put your name forward when they hear about an opportunity.
• You are responsible for your development. If your organisation has great structure around development plans, take advantage of it. Regardless of the structure that exists, your development is your responsibility, and you should drive it.
I would like to convey a big thank you to everyone who attended the recent WIC events. We were genuinely thrilled to see you all, face to face! Events like this do not happen without support so a special thank you to Darren Park from UCB for sponsoring the WIC events and to Theo Foukkare for championing diversity and inclusion. Through these dedicated support networks, we are indeed able to continue to drive real change. C&I
SKYE JACKSON7-ELEVEN CELEBRATES 45 YEAR MILESTONE
Since opening its first Australian store in 1977, 7-Eleven has remained true to its original promise of providing stores that will save people time in their day.
7-Eleven has reached a significant milestone celebrating the 45th anniversary since opening its first store in Oakleigh, Victoria on 24 August 1977.
7-Eleven has been an Australianowned and operated business since the beginning, and since that very first store 45 years ago, it has grown to now being a network of more than 720 franchised and corporate stores, with a team of more than 8,800 people.
In 1976, the Withers and Barlow family invested in one of the earliest global license agreements to take the 7-Eleven brand outside of the USA. As a result, 7-Eleven changed the face of convenience in Australia.
These early stores provided local customers with the products they needed, when and where they needed them in their local area. They had easy parking out front and extended trading hours of 7am to 11pm, including weekends. 7-Eleven opened its first 24-hour store six months after the first store opened.
Angus McKay, Managing Director, and CEO of 7-Eleven Australia said that even
before the first store officially opened, the ad campaigns around its opening focused on the commitment 7-Eleven would have on providing stores that would save people time in their day.
“I am proud that over the last 45 years, 7-Eleven has delivered on that promise,” he says.
“While a lot has changed about the range we offer, in essence we’re still all about providing great service while making it easy for customers, saving time in their day. And we are continuing to invest in food, format, and digital solutions to meet our customers’ needs as we look towards the future.
“Our first 45 years and what we have achieved together is testament to the efforts of many people including our founders the Withers and Barlow family, and the franchisees, store team members, and support office people that have been part of our history so far.
“I am honoured to be leading the extraordinary team who are working together to ensure this iconic brand continues to change the face of convenience in Australia over the next 45 years.” C&I
While a lot has changed about the range we offer, in essence we’re still all about providing great service while making it easy for customers, saving time in their day.”
– Angus McKay, Managing Director and CEO, 7-Eleven AustraliaTHE FAILURE OF AUSTRALIA’S VAPING REGULATIONS
It’s been revealed that 88 per cent of all e-cigarettes are being purchased on the black market without the legally required medical prescription.
With more than 1.1 million Australian adults choosing to vape, the Australian Association of Convenience Stores (AACS) is calling for urgent changes to the current national policy.
The Roy Morgan data, released by AACS, shows a staggering increase of 260 per cent of people taking up vaping over the past five years, with the trend accelerating since the ban on nicotine vape sales.
Theo Foukkare, CEO of AACS, said Australia’s vaping policy has clearly failed.
“The demand for e-cigarettes from adult smokers is overwhelming, yet current policy settings are forcing vapers to purchase unregulated products with no quality controls from the black market.”
Currently those wishing to purchase vaping products must consult a GP and use that prescription to either visit a pharmacy or order products from overseas, a move which could send tens of millions of dollars offshore.
“The Albanese Government must step in, fix the former Health Minister’s regulatory failure, and bring Australia in line with other OECD nations by allowing the sale of regulated nicotine vaping products with electrical safety and ingredient standards to adults upon age identification by responsible retailers.”
Data from Convenience Measures Australia, commissioned by AACS, revealed that 88 per cent of all
e-cigarettes are being purchased on the black market without the legally required medical prescription.
“Australia is now one of the only developed countries in the world that does not allow the regulated sale of e-cigarettes through responsible retailers with product standards and mandatory age verification measures.
“This isn’t an issue that will go away. It’s going to continue to grow. Australia’s parents and teachers are on the front line.
“Without an alternative, Australian adults will continue to pay the price and risk their own health by being able to buy unregulated products – as no standards exist in the manufacture or supply of vapes.”
With 5.8 per cent of the adult population now vaping, AACS has called upon the Albanese Government to convene an urgent National Policy Summit on vaping to identify and implement measures to combat the black market for vapes.
“The Australian Government must follow the lead of New Zealand, the European Union, and the United Kingdom by making e-cigarettes a regulated and controlled adult consumer product sold by responsible retailers.
“Convenience stores have been relied upon for decades to sell highly regulated tobacco and petroleum products, so give us the opportunity to help regulate this product too.” C&I
Australia is now one of the only developed countries in the world that does not allow the regulated sale of e-cigarettes through responsible retailers with product standards and mandatory age verification measures.”
– Theo Foukkare, CEO, AACSColes removes service eligibility period for paid parental leave
Coles is expanding the support available for current and new team members across its network who are preparing for parenthood or adjusting to being a new parent.
The supermarket giant has removed the 12 month service eligibility period for team members to apply for parental leave, meaning primary and secondary carers can now access paid parental leave benefits without having to wait.
Coles has also increased the paid parental leave for secondary carers from two weeks to four weeks, with access to the leave able to be taken up to 24 months after the birth, adoption, or surrogacy birth of a child. Coles will also offer flexibility of how the leave is taken, such as single days, multiple days, or blocks of days.
Kris Webb, Chief of People and Culture at Coles, said they want to make Coles a great place to work for all team members, which means supporting them through significant life moments such as planning to welcome a new addition to their family.
“For people who are having a child and wanting to work for Coles, we don’t want them to feel they need to wait to receive primary carers leave, because we know that this is not always possible. No one should feel they need to hold off having a family because of their job
“We also are pleased to be extending our secondary carers leave because we know how important it is for primary carers to have the support of their partners during these important times of their lives. This policy applies to team members who work in our stores, our distribution centres, and our store support centre, so it’s really expansive and we hope will make a big difference to our team members planning to grow their families.”
Coles is also formalising its policy for having paid parental leave extended to primary carers who suffer a pregnancy loss (stillbirth) through birth, adoption, or surrogacy.
$1.5 million in grants for NSW businesses to save on energy costs
Businesses in NSW can apply for grants up to $20,000 from the NSW Government to help them save on energy bills by identifying ways to finetune processes and upgrade equipment.
The grants are part of a $12 million metering packaging being delivered by the NSW Net Zero Plan over the next five years. The first round of grants, which total $1.5 million, will fund up to 50 per cent of installation costs for businesses to install new submeters, which provide data about equipment performance.
Steve Proctor, Director of Program and Market Development, said understanding a business’s energy use enables operators to decide how they maintain their equipment for best performance or whether to upgrade older equipment.
“Metering is a critical first step in energy management because a lack of metering, monitoring and energy management capabilities stops business starting energy efficiency projects.
“Metering helps cut energy use, particularly at peak times, manages energy costs and detects faults and equipment failures.”
Businesses that spend over $200,000 a year on energy bills can apply for submetering grants on the EnergySaver website.
Increasing the number of businesses metering and monitoring energy and taking action to reduce consumption in their facilities will help meet the NSW objective to halve emissions by 2030.
The grants close on 2 December 2022 unless funding is taken up earlier. All projects must be complete by 30 June 2023.
Metcash’s strong sales continue as consumers opt to shop local
Metcash, operator of IGA, has reported strong sales growth of 8.9 per cent across all pillars in a recent trading update.
The group stated that the strong sales momentum in the first half of the 2023FY has been supported by a continued preference for local neighbourhood shopping underpinned by the improved competitiveness of its independent networks.
Peter Birtles, Chairman of Metcash, said in his address to shareholders that it has been well over two years since they first saw the shift in consumer behaviour with shoppers re-discovering the convenience and value of their local neighbourhood stores.
“While there is no doubt Covid helped to accelerate this shift, it is important to highlight that the early benefits of our MFuture program were evident prior to the onset of Covid. This provided the foundation for our sustained performance over the past two years.”
The MFuture program was designed to provide a pathway to sustainable growth, including significantly improving the competitiveness of Metcash’s retail networks.
“Importantly, this shift and momentum has continued into the first half of FY23… confirming that shoppers are continuing to enjoy the improved competitiveness of our network sites, and the service levels that only independent locals can provide.”
Food sales increased 4.3 per cent which Metcash says reflects continued strong demand in both the supermarket and convenience businesses.
The update also stated that the higher rate of inflation continuing into FY23 has led to uncertainty over its level going forward and whether it and other costs will impact consumer behaviour in the retail networks of Metcash’s pillars.
“We are continuing to work closely with our suppliers and retailers to help shoppers manage the impact of inflation by providing better value options through offering a wider range of products at competitive prices,” said Birtles.
Kris Webb Peter BirtlesIt’s all about
delicious, convenient, The Foodservice and Retail range includes Australia’s favourite flavours of Vanilla Bean, Lemon, and Mango, and are proudly all natural – we don't use any
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AACS DOWN UNDER STUDY TOUR
The two day AACS Down Under Study Tour showed that convenience is very much alive and thriving.
The Australian Association of Convenience Stores (AACS) held its Down Under Study Tour in Sydney recently, following a two year absence due to Covid.
There were 53 registered attendees across retail and supplier members who were all eager to network and learn about innovation in convenience retail, from format development to foodservice, technology, loyalty, and operational excellence.
Theo Foukkare, CEO, AACS, said the stores on the tour were carefully selected to showcase leading retail offers in the channel, as well as the latest in small format grocery from the major retailers moving into the convenience space.
“What was clear throughout the store visits was that convenience retail is alive and thriving with innovation, delivered in different formats to suit the geographic location of the stores – the one size fits all approach is a thing of the past and to win in an ever changing environment retailers are continuing to adapt their offers to suit the local community they serve.”
Foodservice and coffee continue to be a major focus for all retailers, with significant focus in the take home food space. Food preparation on site was also a key takeaway to deliver freshness to customers, which is also opening opportunities for online home delivery of food.
The quality and assortment of fresh sandwiches has also come a long way, along with hot food and the hotbox –giving the tradie customer what they want.
Left: Harsika Manoranjen, Kelvin Kang, Frank Molinaro Bottom left: Tadros Nader, Rob Anderson, Eddy NaderFoukkare continued: “Some of the learnings around coffee were that offering both a barista and good quality push button offer will grow overall coffee sales, as the consumer is different, and you can cater to a wider audience.
“Store format and the retail theatre / aesthetics also featured heavily, with significant investment in the look and feel of the store across the board – customers are seeking a comfortable shopping experience that doesn’t feel like a traditional service station, and we saw this in almost all the stores we visited.
“Partnerships was a key theme that was evident either through the introduction of concession stores to act as specialty operators to deliver high quality and consistent product offerings or through alignment with traditional supermarket players to try and drive new customers into the store for their mid-week top up shop or in some cases the total weekly shop.
“The other partnership theme was linking with QSR brands as a key driver of traffic to the store both from an onsite consumption and home delivery.
“Overall, the study tour was extremely well received and there were learnings that everyone could take away relevant to their retail store or product category that they specialise in.”
one size fits all approach is a thing of the past and to win in an ever changing environment retailers are continuing to adapt their offers to suit the local community they serve.
TARGETED GROWTH IS THE TONIC FOR SCOTTISH WHOLESALE BUSINESS
J.W. Filshill is a fifth-generation business, established in 1875, and is one of Scotland’s oldest convenience wholesalers. Simon King sat down with Simon Hannah, the company’s CEO, who joined the family business straight from university.
J.W. Filshill was a confectionery manufacturer for 55 years before it opened its first cash and carry operation. This quickly developed into a delivered goods business in the 1960s.
Based in Glasgow, the company has a workforce that exceeds 200 people, and the business has grown rapidly in the last 20 years.
It has 2,000 cash and carry and delivered goods customers. In addition, the company services a number of wholesalers and has several national accounts including the Scottish Prison Service.
Simon Hannah says: “I left university, came back here and pretty much worked in every department of the business; I took over from my dad in 2010, after he retired due to ill health. With no succession planning as such, it was a baptism of fire when I took over the running of the business.”
He says the main aim of the company is to be a ‘one stop’ supplier for existing customers, and to develop its customer base by providing a highly efficient and flexible service.
“My job was to take a fifth-generation family business and behave like a start-up – that was quite exciting, but it was quite difficult, because people get used to doing things a certain way and in wholesale, the margins we operate on are absolutely miniscule.
“We’re close to £200 million (A$338m) turnover this year – if we make one per cent net profit, then we’ve had a good year, and that is typical across the sector.”
Last year, the business took an interesting look at how it was operating and how it could grow over the next decade.
“The board got together in a dark room to look at what the next 10 years looked like for the business,” Hannah says.
“By the end of the process, our objective was to get turnover to £350m (A$592m) by 1 February 2031. We basically said to all the managers, today’s date is 1 February 2031, our turnover is £350m, and we asked them what their department did in the last 10 years to get to where we are today on 1 February 2031.
“To get to £350m, it’s just about making small steps, that give incremental gains.”
Hannah says that this exercise created a growth mindset within the business.
Acquisition is a clear part of Filshill’s growth strategy. In 2021, it acquired its first branded product, Eldorado Tonic Wine, the number two product in the category.
“We sell 100,000 cases in Scotland alone, so it felt like a very smart acquisition – our biggest competitors are our customers,” Hannah says.
In August 2022, Filshill’s acquired Iain Hill Limited, a wellknown convenience wholesaler.
Hannah says: “It’s a great business with high standards and an aligned culture. It has loyal staff and loyal customers, uses the same IT systems as we do and the same app to capture orders – 95 per cent of the products they sell, we sell.
“Every customer that it serviced is within a geographical reach of our business.”
Hannah says that two of the biggest challenges in the business are recruiting staff and purchasing new vehicles.
“Recruiting skilled staff is difficult for every sector and it takes such a long time now to order a lorry,” he says.
“The acquisition of Iain Hill was a commercial one, but there was a huge amount of upside to the 15 skilled staff it has and the five vehicles that we acquired as part of the deal.
“Iain’s customers were being serviced with a tight range of products from soft drinks to confectionery, crisps, and snacks. We hold a much wider range of products in grocery, alcohol, and tobacco – it felt like a natural fit.”
Looking ahead to its ambitious 2031 target, the business is currently building a 124,500sq ft distribution centre, which will be operational in the first quarter of 2023.
“We’ve tried to bring some innovative solutions in terms of racking systems and storage systems and different ways of doing things,” Hannah says.
“The new warehouse will have the capacity to store 9,000 pallets and we’ve identified 31 products that deliver more than 50 per cent of our volume, and they’ll all be in fast pick gravity fed racking, seven pallets deep.”
The business is going to use shuttles – electronic robots – to move bulk stock above those picking bays and the new warehouse will also feature a picking tower for the slow-moving lines.
Hannah says: “We’ve got about 6,000 SKUs in the business, and there’s a whole load of products that we have to stock that have quite a low rate of sale.
“Rather than having them taking up 60 per cent of the picking floor, we’ve built a four-tier 5,000sq ft tower, one on top of the other, which allows us to pick those items really quickly, and leaves the main warehouse for full pallet spaces.”
With the sector still in recovery from the Covid-19 pandemic – and the ongoing war in Ukraine – supply is challenging.
“Currently, we’re averaging around 85 per cent inbound availability – pre-Covid, we were operating, near 97 per cent,” Hannah says. “For every one per cent, that’s worth £2m (A$3.4m) turnover to us, but every supplier is facing the same challenges as we are.”
With the UK inflation rate currently at 10.1 per cent, the knock-on effect in convenience is a cause for concern.
“Our biggest challenge here is how do we keep the cost of goods as low as possible for our shoppers, with the pressure coming from gas, electricity, and inflation,” Hannah says.
“The important thing is that that we make sure that we’re most relevant to the shoppers in the communities that we ultimately service; every conversation we have starts with the shopper.”
Another string to the Filshill business is its symbol group, KeyStore, and there are more than 220 KeyStore retailers across Scotland and the North of England.
Looking to grow the network, Hannah says he has a certain type of retailer that he’d like to work with, as he looks to expand the number of KeyStore retailers.
“I want to target tech savvy, entrepreneurial retailers who are committed to growing their business within their communities – these are exactly the people that we want to work with.”
Hannah describes the relationship between Filshill and its KeyStore retailers as a partnership.
“It’s important for everyone in the supply chain –our suppliers, us and our customers – to be able to make a margin, survive and thrive,” he says.
“All eyes are on the move to the new warehouse; we’ve got ambition and the family have committed to a huge investment in terms of infrastructure, because we can’t dream of growing to £350m turnover, if we don’t have the infrastructure to allow us to be able to do that.”
I want to target tech savvy, entrepreneurial retailers who are committed to growing their business within their communities –these are exactly the people that we want to work with.”
– Simon Hannah, CEO, J.W. Filshill
ENSURING THE QUALITY OF YOUR FUEL
The core business of any petrol station is ‘petrol’ or ‘fuel’. Take petrol away from a petrol station and you take away the main reason for customers to visit the business. So, if fuel is the key product in this type of business, why do retailers forget to ensure that they are selling a top-quality product?
There have been many cases in Australia where contaminated fuel has led to a significant decline in business and even closure of the site.
Petroleum retailers should not only maintain the quality of their fuel because it protects their reputation but because they must comply with government legislation. The Fuel Quality Standards Act 2000 sets out the national standards for fuel quality in Australia. Petroleum retailers must ensure that the fuel they sell meets the national standards and specifications set out in the Act.
The Australian government uses inspectors from State Fair Trading Agencies to ensure that standards are being adhered to at a retail level. Inspectors have the right to inspect, examine, and take measurements with either consent from the retailer or a warrant to conduct a search. They also have the right to operate equipment to take a
sample of fuel. In most cases, inspectors will take a sample of fuel from the site for lab testing.
Regular maintenance of fuel tanks is very important. It is easy to forget about fuel tanks and neglect regular maintenance as generally they are underground and become ‘out of sight out of mind’.
Maintaining the integrity of fuel tanks will not only ensure the highest quality of fuel being sold to customers but will protect and increase the lifespan of fuel tanks.
The most common fuel contaminant is water. There are a few ways water can enter a fuel tank, these include faulty seals in the lid, formation of condensation or from a delivery.
Moisture is drawn into tanks as fuel expands and contracts due to temperature changes and when fuel is being dispensed. The moisture then condenses inside the tank. One way to avoid the amount of moisture entering a tank is to keep the tank as full as possible.
Tanks should be checked for water using water finding paste on a regular basis. Extra checks should be carried out after storms and large rain events. Seals in the tank lid should be regularly checked to make sure they are in good order and are free from damage.
DAN ARMES
Petrol station operators should take a proactive and preventative approach rather than a reactive approach when it comes to tank maintenance, writes Dan Armes.
If a large amount of water is found to be in a tank, retailers should immediately cease all use of the tank. They should then contact their fuel supplier and their preferred tank maintenance company to address the issue.
In most cases, it is a fairly simple process to remove the water from the tank as it will settle on the bottom of the tank. Water, if not removed, can cause corrosion not only in tanks but also in pipework, pumps, and dispensers.
It is difficult to conduct a visual inspection of underground tanks for obvious reasons. If an above ground tank is used, visual checks of the tank should be part of a site’s regular maintenance schedule. Above ground tanks should be checked for perforations, cracks, and other structural damage.
Fuel is prone to microbial contamination and the formation of bacteria such as algae. Diesel is the most common type of fuel affected by this contamination. Products such as biocides can be applied to fuel to kill these contaminants. It is important though, that biocides are used only as a shock treatment and are not designed for continued use.
It is good practice to conduct a visual check of fuel quality when the volumes of tanks are measured. Check the dipstick for signs of slime, sludge, foam, discolouration, and anything else unusual. Another sign that a fuel tank has bacterial contamination is if there is a rotten egg smell evident.
Staff who will be checking tank volumes should be trained to look out for signs of microbial contamination.
If the fuel that contains microbial contamination is used in a vehicle, it can cause issues such as blocked fuel filters, reduced combustion efficiency and corrosion in the engine.
If it is found that a tank contains large amounts of debris, sediment, or sludge, it is recommended that retailers have a professional put together a plan of action to fix the issue.
In some cases of contamination, specialised equipment is needed to restore the integrity of fuel tanks.
In an underground tank, all the contaminants will sink to the bottom. Generally, a vacuum pump is used to suck up all the contaminants from the bottom of the tank into a settlement tank. Any fuel that is removed is treated by filtering the fuel ensuring any fuel that comes out goes back into the tank. This ensures that only waste and contaminants are removed from the site.
Petrol station operators should take a proactive and preventative approach rather than a reactive approach when it comes to tank maintenance. Poor fuel quality can have a huge impact on sales and brand reputation. Many customers choose a retail brand because they associate it with quality fuel. Customers will often return to the same nozzle because they know they are going to get quality fuel.
If you have a customer that comes into your store and comments on how long it took to fill up - retailers should do something about it and engage a pump contractor to service the filters and investigate the root cause of why there is slow flow there.
Petrol station operators who take a preventative approach, are reducing their maintenance spend because if you have good fuel quality there will be less time spent on site servicing automatic tank gages, changing filters and less time managing customer complaints.
To avoid contamination, it is important that retailers use all tanks regularly and not let fuel stock sit in tanks for an extended period, as this can affect the quality of the fuel.
If tanks are not regularly maintained and checked for contaminants, issues can be caused further down the line including blockages in pipework and filters as well as causing pumps and dispensers to malfunction. Retailers can avoid the need for costly repairs and downtime with regular maintenance.
If a customer identifies your service station as the cause of contamination, you have a legal obligation to initiate and pay for repairs. Usually, this is covered by insurance, however, if the retailer is found to be negligent and has not followed guidelines or standards, they could be personally liable.
In addition, statutory authorities such as EPA, WorkSafe and LGA can halt you from trading. Word of contaminated fuels travels quickly thanks to social media.
It’s very important to implement a daily schedule of fuel inspection, implement SIRA (Statistical Inventory Reconciliation Analysis) and ensuring diligence of staff to make sure all equipment is undamaged and compliant, that all fill points are closed and tight and free of water or contaminants such as oil, sludge, and dirt.
It is every petrol station owner’s worst nightmare to have vehicles broken down outside their business because of contaminated fuel. Ensuring that tanks and fuel are properly maintained will significantly reduce the chances of contamination occurring. C&I
Many customers choose a retail brand because they associate it with quality fuel.”
– Dan Armes
Ampol opens first WA AmpCharge site and sponsors TOCEVA Racing
Ampol has opened its first West Australian AmpCharge site and announced a new sponsorship of the TOCEVA Racing Team.
The AmpCharge electric vehicle charging at Ampol Foodary in Belmont is the fifth site Ampol has opened in its planned initial roll out of 120 new charging sites on forecourts nationally by the end of 2023.
Brent Merrick, Executive General Manager at Ampol, said Ampol is looking to establish the leading EV charging network in Australia by 2023 and the site at Belmont comes at the beginning of the initial roll out of 14 sites to be delivered at Ampol stores by the end of next year.
“The delivery of AmpCharge infrastructure on our forecourts will be complemented by new at-destination charging solutions in places like shopping centres, and our home charging infrastructure offer to be launched soon. We will also leverage our knowledge and strong relationships across industry to provide charging solutions to fleet infrastructure that will support energy transition.”
Also announced was the new naming rights sponsorship of the TOCEVA Racing Team, that has entered the only EV rally car in the upcoming Perth to Sydney Marathon.
“The sponsorship of the TOCEVA Racing Team reflects our history as a strong supporter of Australian motorsport and connects us with a group of electric vehicle enthusiasts and an event that will help drive excitement and further interest in battery electric vehicles. We wish Jon, Jurgen, Helen and team the best as they prepare the Tesla Model 3 for the marathon event in October,” said Merrick.
The unveiling of the car livery occurred at the event for the new AmpCharge Belmont site, and as main sponsor Ampol AmpCharge has branding presence across the Tesla Model 3.
Jon Edwards, manager of TOCEVA Racing Team, said the sponsorship will help ensure the team is prepared to deliver their best when the event kicks off at Perth Wellington Square on 28 October.
“We are taking on an unprecedented challenge crossing the country in an EV navigating some very remote gravel roads competing in a field of nearly 80 conventionally fuelled rally cars. We are pleased to be promoting the Ampol AmpCharge brand which fits perfectly with our EV racing ambitions and desire to be part in the energy transition.”
New $15m food and convenience hub gets green light at Robin Hill
Retail development and investment group, Spectrum Retail, has received DA approval for its $15m brand new convenience centre at Robin Hill in Bathurst, NSW.
The development will deliver new food and convenience offerings to the region including a 7-Eleven service station, Subway, Red Rooster, and McDonald’s will acquire just under half of the site.
Prominently located at the intersection of Bradwardine Road and the Mitchell Highway in Robin Hill, the development will transform the existing car dealership into a dedicated service centre, with exposure to around 28,000 vehicles each day.
The 6,500sqm site has been designed by architects Verve with engineering by VT Consulting Engineers, and services by Acor and Hazkem.
The brand new centre addresses a significant gap in the market for convenience retail in West Bathurst, servicing the growing residential
catchment in the North and the industrial hub in the South. The development will be the first convenience offering seen by visitors travelling in and out of West Bathurst to the Mitchell Highway.
Julian Ackad, Managing Director of Spectrum Retail Group, said they are thrilled to secure approvals to move forward with this development and continue to invest in regional NSW catering to significant community demand.
“As post-COVID recovery kicks in, coupled with the continued influx of new residents, the new centre will help drive growth in the region and deliver employment opportunities and lasting benefits to the local Central Tablelands economy,” he said.
A significant driver of local employment, the development will generate more than 500 jobs, with more than 250 roles on offer during construction and a further 270 permanent jobs to service the retail outlets once open.
Construction is expected to commence in this month by appointed contractor Mainbrace with completion scheduled for June 2023.
The Robin Hill development continues Spectrum Retail’s commitment to investment in regional NSW. It has recently commenced construction on a Guzman Y Gomez located on Bathurst Road, Orange, with completion expected in November.
It also developed and now manages a $17m major multi-user QSR and fuel site at 399 Pacific Highway in Coffs Harbour, with tenants including Ampol, Hungry Jacks, and Zambrero – experiencing up to 50,000 vehicles per day on the Pacific Highway.
Spectrum Retail currently manages a development pipeline of more than $300m with sites across Australia’s Eastern Seaboard. It has also received DA approval for an $18.5 million brand new convenience retail centre in Wodonga, Victoria.
New Ampol Service Centre features drive-through ramen restaurant
A brand new Ampol service station has opened at Pimpama, Queensland, complete with Australia’s first drive-through ramen restaurant.
The site is located at 68 Pimpama Jacobs Well Road and is ideally positioned at a busy intersection servicing motorists in four directions leading to Brisbane and the Gold Coast.
The fully leased Pimpama Ampol Service Centre is being brought to market by Ray White Commercial Queensland agents Stephen Kidd, Elliot Kidd, and Michael McCullagh.
“The extensive dual street frontages provide safe and easy access from all four directions leading to and from Brisbane, the Gold Coast and nearby high growth suburbs of Coomera, Ormeau and Calypso Bay,” says Stephen Kidd.
“Fully leased, the centre provides long-term income security, annual income growth, and substantial long term capital gain.”
Complementing its prominent location, the Pimpama Ampol Service Centre tenancy mix comprises three experienced, well known, and successful retail operators.
Father and son team Stephen and Elliot Kidd also completed the leasing for the centre, with international ramen restaurant Ramen Danbo and dessert store The Cheesecake Shop taking up tenancy in the centre.
With 35 restaurants internationally, this will be Ramen Danbo’s seventh restaurant in south east Queensland, and the first drive-through ramen restaurant in Australia.
Ramen Danbo signed a 10-year lease with a seven year option, with a gross rent of more than $100,000.
“Since opening, the store has rapidly surged to being the group’s second best performer in Australia,” said Elliot Kidd.
Petrol prices reach 14-year high despite excise cut
Retail petrol prices reached a 14-year high, to an average price of 188 cents per litre (cpl), despite the six-month cut in the fuel excise.
The ACCC’s latest quarterly petrol monitoring report showed that the June quarter average petrol prices in the five largest capital cities were up by 6.1 cpl from the March quarter, making it the sixth consecutive quarter in which prices increased.
The record international prices for crude oil and refined petrol were due to increased demand, production cuts by Russia and the OPEC cartel, and war in Ukraine.
Gina Cass-Gottlieb, Chair of the ACCC, said motorists experienced savings because of the fuel excise cut at a time of record and rising wholesale prices.
“The excise cut prevented even higher prices due to international factors, largely driven by the war in Ukraine. Since late June, average retail petrol prices have come down a lot, in line with decreases in international crude oil and refined petrol prices.”
In July, retail prices fell by about 35 cpl as international crude oil and refined petrol prices
declined due to an increase in supply from oil stockpiles, lockdowns in parts of China and a worsening global economic outlook.
The excise will be reinstated on 29 September 2022, meaning an extra 25.3 cpl in taxes, and will also include the August automatic fuel excise indexation of 0.9 cpl.
Cass-Gottlieb said the ACCC will be engaging with fuel wholesalers and retailers to say that they do not expect to see uncharacteristic or abnormal wholesale and retail price increases in the days
leading up to, and on the day of, or after, the reintroduction of the full rate of fuel excise.
“Petrol stations must not make false and misleading statements to consumers about the reasons for any price increases. We will not hesitate to name retailers should this happen and the ACCC can take appropriate enforcement action.”
Motorists were reminded that prices will fluctuate with changes in international prices and the exchange rate, as well as petrol price cycles in the five major capital cities.
“Our monitoring and analysis will assess and report on all factors influencing retail prices. The ACCC will continue its weekly reporting to consumers about what is happening to fuel prices and when to find the cheapest fuel.
“Shopping around and using fuel price apps can help consumers find the cheapest petrol in their area. Our previous research has shown that buying at independent retailers and avoiding the top of the petrol price cycle in the five largest capital cities can save motorists a lot of money,” said Cass-Gottlieb.
Healthier cooked meals now on offer at select bp sites
As part of its Healthy Heads in Trucks & Sheds (HHTS) partnership, bp will offer healthier cooked meals at 29 participating truck stops.
The move is an effort to encourage healthier food choices for workers in the broader road transport, warehousing, and logistics industries, after research from Monash University showed that 70 per cent of truck drivers in Australia do not meet health and balanced diet guidelines.
The sites will offer freshly cooked meals, 24-hours a day, and users of the Healthy Heads App will receive a $5 discount when purchasing their food.
Tanya Ghosn, VP fleet, dealer, truckstops and electrification ANZ of bp Australia, said she is proud of the partnership with HHTS.
“By implementing innovative offers like this, we believe that we support improvements in the areas of psychological safety and
physical wellbeing across the road transport, warehousing and logistics industries in Australia.”
Naomi Frauenfelder, CEO of HHTS, said that limited access to healthy food options is an ongoing challenge for many people working across the industry, particularly those who spend extended periods of time away from home or work in remote areas.
“This is why we have taken steps toward increasing healthier food options, while also making these options more accessible from a cost perspective, through our Foundation Corporate Partner bp providing a discount to anyone who uses the Healthy Heads App.”
The HHTS App is free to join and features information and tools to help build better understanding of mental health and physical well-being, providing users with practical knowledge, and sharing tips for healthier practices.
Ampol’s record-breaking profits boosted by Lytton refinery margins
Matt Halliday, Managing Director and CEO, Ampol said that against the backdrop of increased market volatility due to the global energy shock, Covid-19 outbreaks and extreme weather, Ampol has delivered the strongest half year Replacement Cost Operating Profit (RCOP) in its history.
Ampol, which owns one of Australia’s two remaining oil refineries at Lytton, saw a surge in RCOP to $734.1m, boosted by the Lytton plant, which saw RCOP soar to $443.9m compared to $49.3m in the previous corresponding half.
Lytton benefited from rising prices for refined products, net of increased landed crude premiums and increases in product freight costs.
The conditions driving refiner margins caused headwinds in other parts of the supply chain, including quality premiums, which rose to record levels as global markets rebalanced in response to Russian sanctions and lower refined product exports from China. Ampol’s margins were exposed to these rising quality premiums on uncontracted supply volumes.
Total Australian sales volume rose 2.1 per cent compared with the same time last year, as the growth in sales to commercial customers, particularly in aviation, offset the decline in retail volumes which felt the impacts of Covid-19, flooding, and high prices.
Earnings in Convenience Retail declined in the half to $127.3m as the combined impacts of Omicron, floods, and high retail fuel prices reduced demand and compressed margins.
Fuel volumes were down 7.5 per cent, 5.8 per cent on a like for like basis. Average margins came under pressure, particularly in May and June, due to the rapid rise in the cost of petrol and diesel and the lag in passing these higher costs through to retail prices.
Despite the difficult conditions affecting fuel sales, shop performance remained strong with total shop income up 8.1 per cent on the prior comparable period due to improved product mix, promotional activity, labour efficiency, and reduced waste.
Average basket size also grew with these results demonstrating the benefits of consistency in merchandising and store operations of the company owned and operated model.
During the half, 17 stores were closed, and one new site was added, taking the company retail network to 668 sites. The rebrand of the Ampol owned network is essentially complete with 1,285 sites rebranded as of 30 June, with remaining work focused on EG sites, which will be rebranded by the end of the year.
The acquisition of Z Energy in New Zealand was completed on 10 May, with earnings and total fuel sales included in the Group’s results for the months of May and June.
Z Energy has now transitioned to a full import model with Ampol confident that it can deliver anticipated benefits of around NZ$60-80m as a result.
During July, both Convenience Retail and Z Energy experienced a strong recovery in retail fuel margins as refined product costs eased. As a result, Convenience Retail exited July with EBIT in line with the prior year, on a year to date basis.