CStore Decisions December 2021

CStoreDecisions Solutions for Convenience Retailers

®

CStore Decisions unveils the industry’s 2021 class of 40 Under 40 Leaders to Watch.

INSIDE The Vape Waiting Game Continues Breakfast Bounces Back Tech Trends Ahead for 2022

48 60 72 December 2021

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CStoreDecisions.com

Local, State and Federal tobacco taxes and restrictions on the sale of tobacco products can hurt your business. Governments often pass new laws quickly, so you need to stay informed about what is happening in your area. You and your business matter and making your voice heard is crucial to our success in fighting for fair tobacco policies.

Take this survey to learn more about how you can get involved

TAKE SURVEY CLICK HERE

Provided on behalf of Philip Morris USA, U.S. Smokeless Tobacco Co., John Middleton, and Helix Innovations. ©2021 Altria Group Distribution Company | For Trade Purposes Only

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EDITORIAL

CREATIVE SERVICES

MARKETING

VICE PRESIDENT, EDITOR-IN-CHIEF John Lofstock jlofstock@wtwhmedia.com

VICE PRESIDENT, CREATIVE SERVICES Mark Rook mrook@wtwhmedia.com

VICE PRESIDENT, DIGITAL MARKETING Virginia Goulding vgoulding@wtwhmedia.com

EXECUTIVE EDITOR Erin Del Conte edelconte@wtwhmedia.com

CREATIVE DIRECTOR Erin Canetta ecanetta@wtwhmedia.com

DIGITAL MARKETING MANAGER Taylor Meade tmeade@wtwhmedia.com

SENIOR EDITOR Thomas Mulloy tmulloy@wtwhmedia.com

ART DIRECTOR Matthew Claney mclaney@wtwhmedia.com

ASSOCIATE EDITOR Isabelle Gustafson igustafson@wtwhmedia.com

DIRECTOR, AUDIENCE DEVELOPMENT Bruce Sprague bsprague@wtwhmedia.com

EDITORIAL ASSISTANT/INTERN Emily Boes eboes@wtwhmedia.com

CUSTOMER SERVICE

ASSOCIATE EDITOR Marilyn Odesser-Torpey CONTRIBUTING EDITOR Anne Baye Ericksen COLUMNIST Michael Sansolo

ADVERTISING VICE PRESIDENT, GROUP PUBLISHER Tom McIntyre tmcintyre@wtwhmedia.com

(216) 533-9186

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REGIONAL SALES MANAGER Patrick McIntyre pmcintyre@wtwhmedia.com (216) 372-8112 REGIONAL SALES MANAGER Jake Bechtel jbechtel@wtwhmedia.com (216) 299-2281

DIGITAL MARKETING COORDINATOR Emily Gillespie egillespie@wtwhmedia.com DIGITAL MARKETING COORDINATOR Matthew Kulkin mkulkin@wtwhmedia.com DIGITAL MARKETING COORDINATOR Francesca Barrett fbarrett@wtwhmedia.com

CUSTOMER SERVICE MANAGER Stephanie Hulett shulett@wtwhmedia.com

WEBINAR COORDINATOR Halle Kirsh hkirsh@wtwhmedia.com

CUSTOMER SERVICE REPRESENTATIVE Jane Cooper jcooper@wtwhmedia.com

EVENTS

WEBINAR COORDINATOR Kim Dorsey kdorsey@wtwhmedia.com

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VIDEO PRODUCTION

WEB DEVELOPMENT

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VIDEOGRAPHER/INTERN Kara Singleton ksingleton@wtwhmedia.com

DIGITAL PRODUCTION MANAGER Reggie Hall rhall@wtwhmedia.com

FINANCE

DIGITAL PRODUCTION SPECIALIST Nicole Lender nlender@wtwhmedia.com

CONTROLLER Brian Korsberg bkorsberg@wtwhmedia.com

DIGITAL PRODUCTION SPECIALIST Nicole Johnson njohnson@wtwhmedia.com

ACCOUNTS RECEIVABLE SPECIALIST Jamila Milton jmilton@wtwhmedia.com

VICE PRESIDENT, STRATEGIC INITIATIVES Jay Hopper jhopper@wtwhmedia.com

Leading Through Innovation

CStore Decisions is a three-time winner of the Neal Award, the American Business Press’ highest recognition of editorial excellence.

EDITORIAL ADVISORY BOARD Robert Buhler, President and CEO Open Pantry Food Marts • Pleasant Prairie, Wis. Lisa Dell’Alba, President and CEO Square One Markets • Bethlehem, Pa. Raymond Huff, President HJB Convenience Corp. • Lakewood, Colo.

Bill Kent, President and CEO The Kent Cos. Inc. • Midland, Texas Patrick Lewis, Managing Partner Oasis Stop ‘N Go • Twin Falls, Idaho Reilly Robinson Musser, VP, Marketing & Merchandising Robinson Oil Corp. • Santa Clara, Calif.

Bill Weigel, CEO Weigel’s Inc. • Knoxville, Tenn.

NATIONAL ADVISORY GROUP (NAG) BOARD Doug Galli (Board Chairman), Vice President/General Manager Reid Stores Inc./Crosby’s • Brockport, N.Y. Mary Banmiller, Director of Retail Operations Warrenton Oil Inc. • Truesdale, Mo. Greg Ehrlich, President Beck Suppliers Inc. • Fremont, Ohio Derek Gaskins, Senior VP, Merchandising/Procurement Yesway • Des Moines, Iowa Joe Hamza, Chief Operating Officer Nouria Energy Corp. • Worcester, Mass.

Brent Mouton, President and CEO Hit-N-Run Food Stores • Lafayette, La. Joy Almekies, Senior Director of Food Services Global Partners • Waltham, Mass.

Vernon Young, President and CEO Young Oil Co. • Piedmont, Ala.

YOUNG EXECUTIVES ORGANIZATION (YEO) BOARD Jeremie Myhren (Board Chairman), Chief Information Officer Road Ranger • Rockford, Ill. Daillard Paris, Director of Petroleum Supply and Trading Sheetz Inc. • Altoona, Pa.

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Ryan Faville, Director of Purchasing Stewart’s Shops Corp. • Saratoga Springs, N.Y.

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2011 - 2020

SUBSCRIPTION INQUIRIES To enter, change or cancel a subscription, please go to: http://d3data.net/csd/indexnew.htm or email requests to: bsprague@wtwhmedia.com Copyright 2021, WTWH Media, LLC CStore Decisions (ISSN 1054-7797) is published monthly by WTWH Media, LLC., 1111 Superior Ave., Suite 2600, Cleveland, OH 44114, for petroleum company and convenience store operators, owners, managers. Qualified U.S. subscribers receive CStore Decisions at no charge. For others, the cost is $80 a year in the U.S. and Possessions, $95 in Canada, and $150 in all other countries. Single copies are available at $9 each in the U.S. and Possessions, $10 each in Canada and $13 in all other countries. Periodicals postage paid at Cleveland, OH, and additional mailing offices. POSTMASTER: Send address changes to CStore Decisions, 1111 Superior Avenue, 26th Floor, Cleveland, OH 44114. GST #R126431964, Canadian Publication Sales Agreement No: #40026880.

Caroline Filchak, Director, Wholesale Operations Clipper Petroleum • Flowery Branch, Ga. Cole Fountain, Director of Merchandise Gate Petroleum Co. • Jacksonville, Fla. Kalen Frese, Food Service Director Warrenton Oil Inc. • Warrenton, Mo. Alex Garoutte, Director of Marketing The Kent Cos. Inc. • Midland, Texas Sharif Jamal, Corporate Brand Manager Chestnut Petroleum Inc. • New Paltz, N.Y.

CSTORE DECISIONS does not endorse any products, programs or services of advertisers or editorial contributors. Copyright 2021 by WTWH Media, LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, or by recording, or by any information storage or retrieval system, without written permission from the publisher. Circulation audited by Business Publications Audit of Circulation, Inc. ©

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CSTORE DECISIONS •

December 2021

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CONTENTS DECember 2021

•

Number 12

•

Volume 32

CStoreDecisions

®

EDITOR’S MEMO

10 Voices of the Next Generation FRONT END

14 Quick Bites: Ready, Set, Shop!

CATEGORY MANAGEMENT

48 The Vape Waiting Game Continues 54 C-Stores Foresee Strong CBD Sales in 2022 FOODSERVICE

60 Breakfast Bounces Back 68 Coffee’s Comeback TECHNOLOGY

72 Tech Trends Ahead for 2022

COVER STORY 16 Cover Story: 40 Under 40

CStore Decisions unveils the industry’s 2021 class of 40 Under 40 Leaders to Watch.

60 8

CSTORE DECISIONS •

December 2021

BACK END 80 Product Showcase 85 Ad Index 86 Industry Perspective: “C” Is for Community:

Meeting Shoppers’ Expectations Around Sustainability cstoredecisions.com

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Editor’s Memo

For any questions about this issue or suggestions for future issues, please contact me at jlofstock@wtwhmedia.com.

Voices of the Next Generation In today’s tight labor market and age of digital disruption, convenience store chains need young executive talent who can lead the company into tomorrow.

That’s why CStore Decisions, in partnership with the National Advisory Group’s (NAG) Young Executives Organization (YEO), is recognizing the industry’s next-generation leaders who are standing out at their c-store chains for their leadership skills.

Effective and well-trained leaders are invaluable when it comes to formulating and communicating new strategic directions, motivating employees, satisfying customers and partnering with suppliers, vendors and other stakeholders.

The industry’s young executives and leaders of tomorrow face unique challenges as they grow their businesses in the competitive retail market. CSD’s 2021 Class of 40 Under 40, the subject of this month’s cover story, is a list of the industry’s up-and-coming leaders whose ideas and abilities, either personally or as part of a team, have helped to advance their business in a demonstrable way within the last 12 months.

As we emerge from the pandemic, these individuals and their leadership are even more critical. We are proud to recognize these emerging leaders and grow YEO to serve their needs for industry education and networking. For many years, business owners and HR executives have faced difficult challenges, but none more important than finding and training the next generation of leadership to guide the organization.

Esteemed author and business consultant Jim Collins reminds us that good is the enemy of great. Greatness is not primarily a function of circumstance. Greatness is a matter of conscious choice and discipline. “Why do some companies and their leaders thrive in the face of immense uncertainty and chaos?” he asked. “When you are buffeted by distraction, what distinguishes those who perform exceptionally well? The answer is not what happens to you; it’s the choices, decisions and disciplines that you make that separate the good from the great.”

THE LEADERSHIP PATH

When it comes to choosing next-generation leaders, this analysis rings true. Simply put, convenience store chains must be able to identify and prepare leaders of tomorrow. This is 10

CSTORE DECISIONS •

December 2021

not something that can ever be overemphasized. The stakes are too high to play leadership roulette and hope the problem works itself out when the time comes.

While our goal is to shine a spotlight on those doing great work around the industry, the final list proved to be challenging. There were many nominations and qualified contenders. Undoubtedly, we may have left off some great candidates. I apologize for that in advance, and I hope we can connect with them for a future list. Please feel free to send nominations for future reports to me at jlofstock@wtwhmedia.com.

What distinguishes the good leaders from the great leaders is the ability to get the right people in the right positions. “If you get the right people, you will get the best outcomes,” Collins said. “When you are facing a challenge, uncertainty or a question, change every ‘what’ question into a ‘who’ question. It’s not about your strategy as you climb the mountain; it’s who you have climbing with you. Always ask, ‘Who will get you where you need to go?’”

CSD’s 40 Under 40 Leaders to Watch list represents leaders from convenience store chains across the country. These leaders understand that mediocrity is not an option when dealing with the family business and preserving family values. They remain true to the high standards set before them by their parents, grandparents and, in several cases, their greatgrandparents, but they also understand the need to evolve and lead the business as it exists today. There’s a difference between values and leadership practices.

Leadership styles can change, but you cannot compromise your values.

NAG and YEO share this commitment to preserving values, and I’m extremely proud of the work the group is doing. To join NAG and YEO, visit www.

NAGconvenience.com and mark your calendars to join us March 27-30, 2022, for the annual NAG Conference in La Jolla, Calif.

k c o t s f o L n Joh cstoredecisions.com

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quickBites READY, SET, SHOP! SALES ARE IN THE CARDS

According to the National Retail Federation’s Consumer Holiday Survey of 7,921 respondents in October 2021, gift cards are the top item consumers would like to receive for the holidays.

LET’S GO SHOPPING

Seven out of 10 consumers surveyed by market analyst CivicScience about pandemic-related comfort levels say they are ready to venture out and shop, with nearly as many hungering to dine out.

Respondents who answered ‘Now’ to the question: How soon from now would you be comfortable … ?

Shopping - 71% Eating out - 67% Working among others - 65% Traveling/vacationing - 54%

Gift cards Gifts consumers want to receive this Clothing and accessories holiday season: Books and other media

47% 32% 26%

Electronics Source: CivicScience 2021, all responses weighted by U.S. Census 18-plus, survey dates: June 6, 2021, to Oct. 30, 2021

56%

Source: NRF and Prosper Insights & Analytics October 2021 Consumer Holiday Survey

STORES DRIVING 2021 RETAIL GROWTH

Brick-and-mortar sales have yielded the biggest share of 2021’s retail growth. In 2020, total discretionary retail sales grew 9%; the e-commerce channel contributed 87% of that growth. Moving into 2021, the retail sector continued expanding — year-over-year sales grew 13%. However, in-store sales contributed 61% of that growth.

Retail spending growth Online Brick and mortar

2020 87% 13%

2021 39% 61%

Source: The NPD Group, Checkout, 2021

A GRAND SHOPPING SEASON

Consumers plan to spend an average of nearly $1,000 during the 2021 holiday season, with most of that tally on gifts and other holiday purchases, according to the National Retail Federation (NRF).

Average amount consumers plan to spend on holiday-related purchases: Gifts for family, friends, co-workers

$648

Non-gift holiday purchases

$231

Other holiday purchases

$118

Source: NRF and Prosper Insights & Analytics October 2021 Consumer Holiday Survey

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On average, shoppers spend more with retailers who offer Buy Now, Pay Later (BNPL) loans than those who don’t — and most of those who use BNPL loans are younger shoppers.

50% Average additional amount shoppers spend with BNPL programs

62% Share of BNPL

shoppers ages 18-24

Source: PYMNTS.com Buy Now, Pay Later Tracker, November 2021

cstoredecisions.com

Leading Together:

SPONSORED EDITORIAL

A conversation between CStore Decisions and Reynolds American Inc. Defending Your Business John Lofstock

CStore Decisions Editor-in-Chief

Matt Domingo

Reynolds Marketing Services Company Senior Director External Relations.

There have been many changes in the tobacco category over the past few years. What do you see as the future of the category?

That makes a lot of sense. What are some activities Reynolds has taken to support the tobacco category for convenience store owners and operators?

That’s a complicated question. Let me address it this way.

The category remains large and important, although, as everyone knows, cigarette smoking among adults continues to decline. At Reynolds, we are committed to reducing the health impact of our business. For this reason, we are focused on offering adult smokers innovative, potentially reduced risk products and believe we have a built a strong portfolio with which to do so. We must educate key stakeholders on the science behind those products, tobacco harm reduction and the public health benefits tobacco harm reduction offers. We believe that as the science and benefits of these products becomes better understood, so too will acceptance of their role in reducing the health impacts of smoking in this country. That would represent important progress toward our goal of reducing the health impact of our business, and we are optimistic about it.

Reynolds is committed to supporting the category. We actively participate in the legislative process by engaging with elected officials. And, where necessary, we are also prepared to litigate to protect the interests of our consumers, customers and other stakeholders. For example, over the past two years, with customer support, we’ve filed lawsuits in California, Pennsylvania, and Minnesota challenging the legality of local and state flavor bans.

These challenges are based on our view that such laws are federally preempted and thus improper. When California passed its full flavor ban, we worked with local partners to successfully qualify the bill for a referendum which delayed implementation by almost two full calendar years, so that the voters could decide for themselves whether they support such an action. We also filed a lawsuit in the federal court system in the Eastern District of Texas challenging the FDA’s proposal on graphic warnings on First Amendment grounds. This engagement is important to ensuring the interests of our many stakeholders are considered, including our customers, and are not unlawful.

What advice would you give retailers when regulators or elected officials enact legislation or regulations that have negative impacts on retailers?

First and most importantly, ensure you comply with all laws and regulations regardless of your opinion on the merits of the rule or regulation. Second, do not be afraid to join in the legislative or regulatory process. Engagement is, quite frankly, critical. Reach out to your local elected officials and ensure they understand the impact their actions had on your business. If your elected officials do not understand the impact of their actions, it is likely they will come back and pass even more detrimental legislation.

Engagement is a process, but one that can have a positive impact, particularly when many voices join together proactively to support the same interests. We believe that retailers should make it a priority to build relations with the lawmakers that represent them as constituents, so lawmakers are well informed about retailers’ businesses and the value that retailers bring to the communities in which they operate.

*Reynolds American Inc. and its operating companies (collectively referred to here as “Reynolds”)

How can retailers partner with Reynolds when they feel their government’s actions harmed their business?

The most important component is to keep open lines of communication. We have an entire team in Winston-Salem dedicated to supporting you on legislative and legal matters.

Our partnership is predicated on our mutual ability to remain in contact and engaged not just during proposed restrictions, but on post-enactment planning. Please do not hesitate to reach out. We will be glad to work with you.

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CStore Decisions unveils the industry’s 2021 class of 40 Under 40 Leaders to Watch.

A CStore Decisions Staff Report

Throughout 2021, c-store retailers have grappled with ongoing challenges due to the lingering COVID-19 pandemic, including supply chain issues, labor shortages and continued digital disruption.

Next-generation retailers have been leading the charge in this new convenience store landscape, helping their chains adapt to the latest technology innovations, better recruit and retain quality candidates, and discover trending products. As we emerge from the pandemic, these individuals and their leadership will only become more critical as our world continues to evolve.

On the pages that follow, CStore Decisions presents the 2021 class of 40 Under 40 Leaders to Watch.

CStore Decisions’ 40 Under 40 is an annual list of the convenience industry’s up-and-coming leaders whose ideas and skills, either personally or as part of a team, have been responsible for helping to advance their businesses in a demonstrable way within the past 12 months.

These next-generation leaders represent some of the most promising young executives in the c-store industry today, selected from chains of all sizes across the convenience retail industry. Among them, these retailers hold a variety of positions, including CEO, category manager and vice president of marketing, to name a few.

Several are members of the National Advisory Group’s (NAG) Young Executives Organization (YEO), a growing group of emerging industry frontrunners focused on education and networking with other under-40 executives in the competitive c-store channel.

Those interested in nominating young leaders for next year’s 40 Under 40 or joining YEO can contact CStore Decisions Editor-in-Chief and NAG Executive Director John Lofstock at jlofstock@wtwhmedia.com. cstoredecisions.com

KAILA ADAMS, 32 Director of Marketing for C-Store and Car Wash Company: Terrible’s Headquarters: Las Vegas Number of Stores: 151 Years With the Company: 10

Kaila Adams started her career at Terrible’s as the c-store chain’s social media manager and worked to get Terrible’s active in the world of social media. Today, as the director of marketing for c-store and car wash, she is responsible for overseeing all marketing efforts for both the company’s convenience stores and car washes.

What project or innovation are you most looking forward to in 2022? “I am most looking forward to building out our loyalty app, Terrible’s Social House, available in the Google Play and Apple app store.”

December 2021 • CSTORE DECISIONS

17

40 Under 40

THOMAS ALLEN, 37

Regional Director – West

Company: Smoker Friendly Headquarters: Boulder, Colo.

Number of Stores: 180 Years With the Company: 5

Thomas Allen graduated from the University of Montana in 2006 with a B.S. in business administration. He then commissioned as an active-duty U.S. Army officer and spent the next 10 years serving in Germany, Iraq and Yemen, to name a few. He finished his Army career with U.S. Army Special Operations Command and moved to Colorado with his wife. He began working for Smoker Friendly in 2016 and is now the regional director – West for all 87 stores in Colorado, Wyoming, Montana and Nebraska. He recently completed his MBA at Colorado State University.

What is the most challenging issue facing young executives today? “Information overload.

Young executives have access to extensive databases that greatly enhances their decision-making.

Extracting the best data to make strategic decisions is a constant challenge.”

RAUL BUENROSTRO, 38 Marketing Director

BRITTANY BAYLEY MURRAY, 36

Vice President of Marketing Company: Huck’s Market Headquarters: Carmi, Ill. Number of Stores: 124 Years With the Company: 11

Brittany Bayley Murray majored in communications at the University of Southern Indiana and began working as a manager of Huck’s convenience stores after college.

From there, she went on to hold positions as a buyer and category manager before stepping into her current role as vice president of marketing for Huck’s Market.

She’s thankful for her team members, who play a huge role in the company’s success each day.

What project or innovation are you most looking forward to in 2022? “Expanding and working on our rebranding, building new stores and continuing to develop the new generation of Huck’s Market stores, associates and, most importantly, customers.”

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CSTORE DECISIONS •

December 2021

Company: Friendly Express Headquarters: Waycross, Ga. Number of Stores: 35 Years With the Company: 1

Raul Buenrostro brings 15 years of c-store experience to his current role as marketing director for Friendly Express. He began his career as an area supervisor with Flash Foods in 2006, and went on to hold roles as food service program manager at CST Brands and category manager at Circle K. He joined Friendly Express just under a year ago.

He believes his experience working for multiple c-store chains in various roles has given him the experience necessary to be a well-rounded marketing director.

What is your favorite thing about your job/role?

“I love being able to tailor a selection of products that sets our stores apart from the competition by making sure we always incorporate classic favorites mixed with new, innovative products.”

cstoredecisions.com

SWEET WINES

New wine consumers are coming out of the woodwork this year, with the persistence of COVID-19 a key driver. C-store owners will want to leverage sweet wines — the perfect introductory wine type.

ON THE RISE

THE RUSH TO THE WINE AISLE

• Consumption has grown an average of 2.9% per year for 10+ years.1 Between March and July 2020, as COVID-19 took hold,

Now a $74B+ category, Wine has seen substantial growth lately.1

new households bought wine.2

PRICED TO MOVE

79%

C-store businesses appreciate wine’s friendly price point:

UNCORKING SHOPPER INSIGHTS

of new wine buyers enter the category through Under $11 wines.3

• Under $11 price tiers account for 66% of total dollars and 84% of total wine volume.3 • They’re nearly 2x more likely to repeat purchase than Over $11 wine drinkers.3

Sweet wine shoppers are most influenced by:4 Sweet wine drinkers always prefer to buy wine already chilled 4 — keep it in the cold box.

• Product flavor attributes • The look of the package and label • A special purchase offer

3% IN FAVOR OF FLAVOR

Barefoot, America’s most awarded wine brand, is your ideal partner.

Mainstream fruit flavors are seeing exponential volume sales growth in AlcBev:

Mango: +28% YTD5

Barefoot offers a sweet selection that’s priced right and suited to the impulsive quicktrip shopper: • Barefoot Cellars (750ml and 1.5L) — Moscato, Pink Moscato, Red Moscato • Barefoot Fruitscato (750ml and 1.5L) — Apple, Peach, Strawberry, Watermelon, NEW Blueberry, NEW Mango, Pineapple (coming in August) • Barefoot Wine-To-Go (500ml tetra) — Moscato, Sweet Red Blend

of sweet wine purchases are made for immediate consumption.4

Blueberry: +13% YTD5

FRUITY & REFRESHING

5 %

of Fruit Varietal wine growth is coming from NEW consumers, almost 3x the rate of table wine.6

• Fruit-forward wine is growing at +90% vs. YA, faster than all table wine.7

©2021 Barefoot Cellars, Modesto, CA. All rights reserved.

SOURCES: 1. Bw166, “Total US Beverage Alcohol & Volume Spend,” March 2020, 2. IRI, Total US MULO + C + Liquor, Latest 52 Weeks, w/e 7-24-2020, 3. IRI, Total US MULO, Latest 52 weeks, w/e 12-29-2019, 4. E&J Gallo, Custom KUBE Study, 2018, 5. IRI, Total US MULO + Conv + Sum of Liq, Spirits Flavors, % Change Volume Sales vs YA, w/e 6-28-2020, 6. IRI, Total US MULO + Conv, 6 weeks, w/e 4-19-2020, 7. IRI, Total US MULO + Conv + Sum of Liq, Fruit Varietal Category, % Change Volume Sales vs YA, w/e 10-18-2020

• Barefoot Spritzer (250ml can) — Moscato, Pink Moscato, Summer Red Blend

SELL SWEET AND WIN THE CATEGORY!

40 Under 40

JAKE COMER, 33 Fuel Pricing Manager Company: Casey’s Headquarters: Ankeny, Iowa Number of Stores: approx. 2,400 Years With the Company: 3

ANGELLE CLOUD, 32 Director of Foodservice Compliance and Corporate Dietitian Company: Shop Rite Inc. Headquarters: Crowley, La. Number of Stores: 57 stores (Shop Rite and Tobacco Plus) Years With the Company: 3

Angelle Cloud began her career as a clinical dietitian in a large city hospital.

She then became director of foodservice/clinical dietitian of a local rural hospital. Cloud has always enjoyed retail and foodservice and knew she could use her background as a dietitian to make a difference with a company that would embrace her knowledge and experience. At Shop Rite, Cloud is certain she’s making a positive impact and loves what she does with her convenience store family.

What is the most challenging issue facing young executives today?

“Overcoming imposter syndrome, aka knowing your worth.”

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CSTORE DECISIONS •

December 2021

Jake Comer joined Casey’s to build its retail fuel team from the ground up, a job that demanded multiple disciplines. He spent his early career building a strong foundation of skills in accounting and finance roles at Kum & Go, and learned fuel pricing at Murphy USA, something he said he still enjoys each day because the market is always changing.

What do you think today’s young executives bring to the table? “An innate ability to pivot quickly and add value in original ways while navigating industry change necessitated by events like the Great Recession, advancing technology, COVID pandemic, energy crises and the most recent labor crunch.”

TIM COX, 33

Senior Product Developer – Proprietary Beverages

Company: 7-Eleven Inc. Headquarters: Irving, Texas Number of Stores: 77,000 globally and nearly 16,000 in North America Years With the Company: 1

Inspired by the quality-focused, open-sourced nature of the specialty coffee industry, Tim Cox has spent a decade and a half in the specialty coffee realm in a variety of management, marketing and business development roles. Cox aspired to impact the quality of as many cups of coffee possible, and his goal led him to become interested in the convenience channel. Joining the talented proprietary beverages team at 7-Eleven and contributing to the brand that started coffee to-go, he said, has been an amazing experience.

What is the most challenging issue facing young executives today? “Innovation — whether in IT, products or strategies — things are moving at a more rapid pace than ever before. This requires forward- and out-of-the-box thinking to stay relevant with customers and achieve differentiation.”

cstoredecisions.com

40 Under 40

LACEY DIXON, 30

CHRISTIAN DEMERE, 31

Marketing Director

President & CEO Company: Colonial Group Inc. Headquarters: Savannah, Ga. Number of Stores: 129 (Enmarket) Years With the Company: 8

Christian Demere took the helm as president and CEO of Colonial Group Inc., the parent company of Enmarket, in 2018. He is part of the fourth generation of the family business, which celebrated its 100th anniversary this year, and today includes nine subsidiaries including the Enmarket c-store division.

Demere expects the rate of change impacting the cstore industry to accelerate, and he’s crafting a dynamic culture that embraces transformation.

What does it mean to you to be the fourth generation of the family business? “I feel humbled to have the privilege to be a part of such an incredible legacy.”

Company: Go Time Headquarters: Jackson, Ky. Number of Stores: 7 Years With the Company: 6

Lacey Dixon grew up in the c-store industry. Her mother worked for Coleman Oil, and Dixon spent her childhood tagging along as her mom opened and worked at stores.

When her family started opening their own Go Time convenience stores, Dixon knew she wanted to work in the business. Six years later, Go Time has grown from one store to seven, with two more beginning construction.

Dixon acts as marketing director and is looking forward to continued growth for Go Time.

What is your favorite thing about your job/role? “I love having the opportunity to be creative. I do a little bit of everything for our company from marketing to floor sets, so I get the chance to try out new ideas and see what fits.”

JILLIAN EUPER, 37 Director of Retail and Food & Beverage Merchandising Company: Choctaw Nation Headquarters: Durant, Okla.

Number of Stores: 20 (Choctaw Travel Plazas and Country Markets) Years With the Company: 4.5

Jillian Euper joined Choctaw Nation in 2017 as director of non-gaming marketing for the division of commerce. In 2019, she became director of retail and food & beverage merchandising, developing product campaigns, ensuring brand alignment across locations, and developing and launching Travel Plaza’s first loyalty program, Chahta Rewards. She’s also assisted with a fuel rebrand, five new store openings/remodels, menu redevelopment, doubled member retention within loyalty by 105%, and sustained business growth of over 20% year over year.

What is your favorite thing about your job/role?

“Knowing that the work going on behind the scenes, from researching market trends to growing loyalty programs, gives our customers and tribal members the best offers and experience each time they walk in one of our stores.”

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December 2021

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We Applaud the

40 Under 40 C-Store Leaders Coin Cloud is proud to sponsor this year’s awards, and we value our current and potential retail partnerships with these up and coming executives.

Congratulations to the CStore Decisions 2021 class of 40 Under 40 C-Store Leaders to Watch We look forward to building a solid future together with these next-generation leaders.

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40 Under 40

HEIDI FRANZINI, 36

Category Manager

Company: Kwik Trip Inc. Headquarters: La Crosse, Wis. Number of Stores: 800 (Kwik Trip, Kwik Star, Tobacco Outlet Plus, Tobacco Outlet Plus Grocery and Stop n’ Go) Years With the Company: 14

Heidi Franzini started her career with Kwik Trip as an assistant store leader. After a few years, she transitioned into the corporate office, joining the category management team. Since then, she’s held various roles within the department from administration to buyer and was recently promoted to her current role as category manager. She now oversees multiple categories, including premium tobacco, domestic tobacco, roll-your-own tobacco, roller grill, segments of other tobacco products and store supplies.

In your opinion, what is the biggest issue facing convenience stores today? “Supply chain. It has really kept us on our toes this year, from manufacturers not being able to get raw material, labor shortages on production lines, transportation shortages and the issues we all see at the ports; it’s a snowball effect that continues to create major shortages and challenges for us day to day.”

MEGAN ASHLEY GARZA, 28 HR Software & Information Specialist Company: La Lomita Inc. Headquarters: Edinburg, Texas Number of Stores: 13 Tex Best Travel Centers, 20 El Tigre Food Stores Years With the Company: 5

Megan Ashley Garza has always worked for the family business, starting with helping around the office during the summers. After she graduated from the University of the Incarnate Word in 2016 with a degree in accounting, she began working for La Lomita Inc. full-time, rotating departments to learn all aspects of the company. In 2017, the human resources department was redeveloped and updated with new technology. Garza assisted with implementing policies and rolling out programs, such as the Employee Referral program, Sales Traveling Team and $1 Additional Pay for Graveyard Shifts.

What is the most challenging issue facing young executives today? “The most challenging issue facing young executives today is labor; after working remotely and receiving unlimited benefits due to COVID-19 for more than a year, it will be difficult to attract new team members who were used to staying home.”

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December 2021

MIKE GILLIGAN, 28

Senior Vice President Company: Gilligan’s Retail Headquarters: Scottsdale, Ariz.

Number of Stores: 12 Years With the Company: 4

Mike Gilligan began his career working in the Bakken oil field after college. Four years later, he joined the family business, running daily operations for the company’s two Montana sites.

He helped Gilligan’s expand into Arizona, where it opened 10 new stores over three years. Today, he’s focused on growth plans and finding ways to engage customers through emerging technology and automation.

What project or innovation are you most looking forward to in 2022? “I am very excited about our strategic growth plan, which includes further expansion both locally and into multiple states as well as innovations for the customer shopping experience both inside the store and at the forecourt.”

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40 Under 40

THOMAS HALLENDORFF, 31

Retail Integrations Manager

TROY HULEHAN, 38 Operations Controller

Company: Parkland USA Headquarters: Charleston, S.C. Number of Stores: 112 (On the Run) Years With the Company: 3

Thomas Hallendorff began his career in the convenience industry 13 years ago as a cashier for Missouri Valley Petroleum. He went on to hold positions as inventory specialist, IT specialist and IT manager for the wholesale and retail divisions. When Parkland acquired Missouri Valley, he moved into a business analyst role overseeing the migration into Parkland’s network, and during COVID-19 he also served as IT manager for northern operations. Today, as retail integrations manager, Hallendorff brings efficiency, structure and vision to how Parkland integrates retail into its network.

What project or innovation are you most looking forward to in 2022? “Exploring alternate methods of payment acceptance in both the forecourt and backcourt to improve customer and employee experience.”

Company: The Spinx Co. Headquarters: Greenville, S.C. Number of Stores: 85 Years With the Company: 15

Troy Hulehan began his c-store career at The Spinx Co. 15 years ago, starting as an intern while he was attending graduate school. Over the years, he has held various roles at the company in accounting, from staff accounting to accounting manager. Today, he’s the operations controller on the executive leadership team.

What is the most challenging issue facing young executives today? “Recruiting and retaining the next generation of top talent and leaders.”

JAMES JACKO, 37 Senior Category Manager Company: Coen Markets Inc. Headquarters: Canonsburg, Pa. Number of Stores: 56 Years With the Company: 5

James Jacko’s “roots are planted deeply in the c-store industry” — his parents worked in the industry. He started as a category manager at a regional c-store distributor. Jacko integrated advanced analytics with how categories, promotions and margins were managed, while taking on additional roles in data integration, space planning and floorplan optimization. In 2016, he joined Coen Markets. Today, he oversees all center store, general merchandise and beverage categories as senior category manager.

What is your favorite thing about your job/role? “What I enjoy most about my role is that it tends to progress faster than other areas of the business; there are always new products, new people, market evolutions, technological advances and strong impetus toward data centricity.”

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40 Under 40

RACHEL JACKSON, 27 District Manager Company: Refuel Operating Co. LLC Headquarters: Charleston, S.C. Number of Stores: 175 (Refuel and Double Quick) Years With the Company: 2

Rachel Jackson began her career as a cashier at Turtle Market in Myrtle Beach, S.C., and worked her way to store manager. She held numerous roles during her time at Turtle Market, including negotiating brand contracts, reconcile billing and price book management. In January of 2020, Turtle Market was acquired by Refuel Operating Co. LLC, and Jackson was soon promoted to district manager. Today she manages eight Refuel locations, four of which have an extensive foodservice program, maintaining a strong, high-volume district, and has assisted with recent acquisitions.

What project or innovation are you most looking forward to in 2022? “I am most looking forward to the growth of healthy food options in the c-store industry.”

SURAJ KAYASTHA, 31

NAVID KAREDIA, 28

Chief Information Officer

Managing Partner Company: Time Mart/Spades Development Headquarters: Houston, Texas Number of Stores: 20 Years With the Company: 6

As a second-generation member of the family business, Navid Karedia grew up around the convenience store/real estate business. After college, he was drawn to real estate development and construction, which has led to multiple cstore, retail and hotel developments. Since Karedia joined Time Mart, his primary role has been site selection, entitlement process, market analysis and construction management. In addition to the current portfolio, eight sites are under development/construction.

What is the most challenging issue facing young executives today? “Keeping up with the advancing technologies and reevaluating strategies, talent acquisitions and retaining staff members.”

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Company: Quick Track, Inc. Headquarters: Bedford, Texas Number of Stores: 120 Years With the Company: 5

After graduating with a management information systems degree, Suraj Kayastha began his career at Quick Track as a system administrator. Today, as the chief information officer, he collaborates with his team members every day to develop and incorporate technology to enable self-checkout, curbside pickup, delivery and more across Quick Track stores. Kayastha and his team are currently working on building systems to make product decisions and price management using artificial intelligence.

What is the most challenging issue facing young executives today? “Young executives today need to pay special attention to their decision-making skills and make well-rounded decisions that can stand the test of time, which is not an easy feat.”

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40 Under 40

WILLIAM KLOSS, 39

Category Manager, Tobacco and Snacks

Company: Wawa Inc. Headquarters: Wawa, Pa. Number of Stores: 950 Years With the Company: 17

Vice President

After graduating from college, William Kloss was hired at Wawa, where he worked in store operations as an assistant general manager during the day while earning his MBA taking night classes. He then accepted a role as a category analyst within the marketing division, rising through several roles within food and beverage, and then managing the field merchandising team. He now handles tobacco and snacks.

What do you think today’s young executives bring to the table? “The opportunity to preserve the core of Wawa — our values and culture. What was instilled to us from previous company leaders and mentors can be paid forward by doing the same for future upcoming leaders of the company.”

MIKE LAVITOLA, 35 Co-Founder & CEO Company: Foxtrot Headquarters: Chicago Number of Stores: 15 Years With the Company: 8

Mike LaVitola began his career working in investment banking in Austin, Texas, focusing on large-scale, Public Private Partnership infrastructure transactions. He then joined a middle market private-equity firm in Chicago before attending the University of Chicago Booth School of Business where he launched Foxtrot in 2013.

Today, Foxtrot has locations in Chicago, Washington, D.C., and Dallas, with plans to continue expansion in both new and existing markets.

What is the most challenging issue facing young executives today? “Balancing the pace of innovation and speed of technology with the operational rigor that is the backbone of all great retailers.”

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REBECCA MARSOCCI, 32 Company: Fast Break Inc. Headquarters: Okeechobee, Fla. Number of Stores: 1 Years With the Company: 6

Rebecca Marsocci graduated Cum Laude from the University of Florida with a degree in health education and behavior and began a career in healthcare marketing. In 2015, Marsocci was accepted into graduate school at Florida Atlantic University and graduated in 15 months with a master’s in health administration.

Immediately after, an opportunity arose for Marsocci to become a partner at Fast Break Inc. Today, Marsocci and her husband own, operate and spearhead day-to-day business for the store. Drawing from her background in healthcare sales, she employs her skills for developing marketing plans, brand imaging and building loyalty. Fast Break Inc. is a unique c-store that also includes a tackle shop. It’s dubbed “the one-stop-shop for lake-goers,” thanks to its large selection of fishing and marine merchandise.

What is the most challenging issue facing young executives today? “The most challenging issue facing young executives today is communicating effectively with people from all generations.”

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40 Under 40

MICHAEL O’DONNELL, 33

Area Sales Manager

CHRISTI MYHREN, 39

Company: GPM (Empire) Headquarters: Dallas, Texas Number of Stores: 3,000-plus Years With the Company: 5

Store Accounting Supervisor Company: Road Ranger Headquarters: Schaumburg, Ill. Number of Stores: 42 Years With the Company: 20

During her 20 years at Road Ranger, Christi Myhren has worked her way through different roles involved in accounting that spanned the entire life cycle of cash and product for the chain. As store accounting supervisor, Myhren oversees various areas, including item inventory, merchandise Pricebook, store daily paperwork and electronic data interchange (EDI). One aspect she especially enjoys about the position is working with industry trade vendors.

What project or innovation are you most looking forward to in 2022? “I am looking forward to continued digitalization of promotions and coupons.”

Michael O’Donnell didn’t originally intend to have a career in the c-store industry, but during the 2008 financial crisis, he needed a job and found one as an attendant at a Texas “gas station.”

He learned quickly that he not only had a penchant for sales, but that he loved what he was doing. He realized the industry offers limitless possibilities for those who are willing to put in the work and grow.

What do you think today’s young executives bring to the table? “Our young executives bring an outside-of-the-box approach to innovation and growth in a constantly changing industry.”

DORA OCAMPO, 29 Senior Foodservice Category Manager Company: Global Partners LP Headquarters: Waltham, Mass.

Number of Stores: 317 (Alltown, Xtramart, Jiffy Mart, Alltown Fresh) Years With the Company: 7

Dora Ocampo grew up in c-stores. Her father and uncle each owned a c-store and eventually sold them. She went on to work at a local family-owned c-store all throughout college as well. After graduating from Bentley University, she joined Global Partners and held multiple roles during her tenure, including deli supervisor, field foodservice manager and foodservice project manager. Today, she is the foodservice category manager, where she oversees one of the fastest-growing categories — the commissary.

In your opinion, what is the biggest issue facing convenience stores today?

“It’s a tie between labor shortages and supply chain disruptions. Both are critical to our business, and both are ravaging the industry.”

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40 Under 40

ANTHONY PERRINE, 37 Owner Company: Lou Perrine’s Gas and Groceries Headquarters: Kenosha, Wis. Number of Stores: 2 Years With the Company: 20-plus

DAILLARD PARIS, 39 Director of Petroleum Supply and Trading Company: Sheetz Inc. Headquarters: Altoona, Pa. Number of Stores: 630 Years With the Company: 10

Daillard Paris’ colleagues describe him as an out-of-the-box thinker who loves challenges and is continually innovating. Paris strives to keep his entire team involved with the petroleum process, doing it all with a positive attitude and gregarious personality. Not only is he an integral part of the Sheetz team, he is also dedicated to helping members of his community as a mentor in the Blair County Big Brothers Big Sisters organization and serves on The Special Olympics of Pennsylvania board, The Altoona Sunrise Rotary board and The Blair Regional YMCA board.

He is also a board member for the Young Executives Organization.

Why are you nominating Daillard for 40 Under 40? “Paris leads the company’s logistics team and directs the trading of all renewable fuels for the company. Paris also coordinates all efforts and oversees the entire process that supplies Sheetz petroleum for all of the company’s fuel products. He works to ensure these products are ready for Sheetz’s customers throughout the company’s six-state footprint.”

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Anthony Perrine grew up in the c-store business, working as early as fourth grade at his family’s locations. Perrine said he knew in college that the corporate world was never going to be for him — he was an entrepreneur at heart. He left college and took a more active role in the family business, eventually buying it from his parents in 2010.

What do you think today’s young executives bring to the table?

“Young execs have known nothing but massive change. Computers, smartphones, social media — we have grown up in an environment where there is no status quo anymore. We bring a willingness to learn new things, adapt quickly and never have any ‘sacred cows.’”

JOHN PHELPS JR., 34 Vice President, Marketing Company: High’s of Baltimore Headquarters: Baltimore, Md. Number of Stores: 55 (High’s) Years With the Company: 9

John Phelps Jr. started working for Carroll Fuel in 2010. After Carroll Fuel acquired High’s in 2012, Phelps transitioned to the High’s side of the business, working in fuel pricing and on various projects including a fleet fueling program and loyalty program. From there, he served as a category manager at High’s for a few years, before stepping into his current role as vice president of marketing.

What project or innovation are you most looking forward to in 2022? “Working with the High’s team on delighting more customers.”

cstoredecisions.com

40 Under 40

PETER RASMUSSEN, 38 Director of Operations Company: Neon Marketplace Headquarters: Cranston, R.I. Number of Stores: 7 (Neon Marketplace, Neon Marketplace Express, Neon Marketplace Travel Center — opens in April 2022) Years With the Company: 1

Peter Rasmussen began his career working as a cashier at Sheetz. By 19, he was managing his first store, while attending college. Over time, he left Sheetz and joined Wawa. Rasmussen had a real passion for store operations and was promoted to district manager. He later moved on to multiple different leadership roles across new market expansion, project management and marketing. After 17 years with Wawa, he was presented with the opportunity to lead a convenience startup backed by private equity called Neon Marketplace.

In your opinion, what is the biggest issue facing convenience stores today? “The convenience store industry has always been beautiful in how we benefit from multifaceted revenue department opportunities, and those of us that adapt to the future of things such as delivery, electric vehicles and artificial intelligence will lead the future of convenience, while those that hold on to the legacy convenience world without adapting to change will fall into being memories of once-great companies.”

ASHLEY RAY, 39

NICK RUFFNER, 37

Senior Director, People Support

Public Relations Manager

Company: Maverik Inc. Headquarters: Salt Lake City Number of Stores: 395 Years With the Company: 16

Ashley Ray started with Maverik as a benefits coordinator and quickly realized that working with people was her passion. Ray soon moved into the human resources manager role, learning a ton over 10 years supporting 3,500 employees in a two-person department — an experience she said she wouldn’t trade for anything. Maverik then promoted Ray to director of HR and after five years named her senior director of people support.

What do you think today’s young executives bring to the table? “Young executives understand the next generation trends, they challenge assumptions, they learn fast, and they are willing to jump in and get dirty.”

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Company: Sheetz Inc. Headquarters: Altoona, Pa. Number of Stores: 630 Years With the Company: 5

Colleagues noted Nick Ruffner has established new strategies that brought a dramatic increase in earned media for Sheetz. In 2020 alone, under Ruffner’s leadership, Sheetz achieved a 40% increase in earned media value with notable coverage in numerous national media outlets.

Sheetz was also recognized by the White House for the launch of its kid’s meal program. Ruffner also created a crisis management protocol identifying and minimizing threats to the company and training executives to be able to handle a wide range of highly sensitive crisis scenarios.

Why are you nominating Ruffner for 40 Under 40? “A member of the National Association of Convenience Stores Strategic Communications Committee and Ragan Crisis Leadership Network, Nick is a seasoned public relations professional with more than 14 years of experience and a proven track record of success. Anchored in collaboration, building critical relationships with media and developing and mentoring a strong team of PR and event specialists, Nick has made, and continues to make, a significant impact on Sheetz, a company with $6.2 billion in revenue.”

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40 Under 40

JAMIE SIMENDINGER, 30

Vice President, Payroll & Banking Company: Champlain Farms Headquarters: South Burlington, Vt. Number of Stores: 40 Years With the Company: 17

MICHELLE SIGNORELLI, 35 Category Manager, Tobacco Company: RaceTrac Inc. Headquarters: Atlanta Number of Stores: 560 Years With the Company: 7.5

Michelle Signorelli started her convenience career after high school, working in a store while in college.

She then worked for Reynolds American Inc. as a territory manager for more than three years, and then relocated to Atlanta. Signorelli said she was fortunate to find an associate category manager of tobacco role with RaceTrac in 2014 that leveraged her prior experience. In 2018, RaceTrac promoted her to category manager of OTP (other tobacco products), and in 2021, she began managing cigarettes as well.

What do you think today’s young executives bring to the table? “Innovative ideas that zero in on the actual business opportunity and establish dynamic ways to measure success.”

Jamie Simendinger, part of the third generation of the family business, began working at Champlain Farms stocking shelves when she was 13 years old. After graduating from college with a bachelor’s degree in business administration, she returned to work for the family business, continuing the legacy started by her grandfather and father.

What project or innovation are you most looking forward to in 2022? “Looking forward to 2022, I am very excited to launch a unique Champlain Farms loyalty app, so we can give our returning customers a reward for their patronage of Champlain Farms.”

JULIE SMITH, 37 Director of Human Resources Company: Soapy Joe’s Headquarters: San Diego, Calif.

Number of Stores: 7 Years With the Company: 2

Julie Smith began her career at Target, where she found her love and inspiration for human resources. After earning her master’s degree in HR while working nights full-time, she spent four years at nonprofits serving foster youth and adults with disabilities. Soapy Joe’s lured her away with strong values, including building community. The past two years have seen rapid growth with new stores, doubling the employee count. Smith takes great pride in Soapy Joe’s, saying it stands out from the pack with its talent development and succession planning.

What do you think today’s young executives bring to the table? “Today’s young executives bring resiliency and a fresh perspective that is absolutely essential to keep up with the needs in a rapidly growing business.”

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40 Under 40

ANDREW TAYLOR, 35 Director of Operations Company: Farm Stores Franchising Headquarters: Miami, Fla. Number of Stores: 50 (11 under the Swiss Farms banner) Years With the Company: 5

Andrew Taylor started as a general manager in 2016 when he was given the opportunity to work in a store and learn the business from the front lines. After leading three stores, Taylor moved up to district manager and began to mentor management staff and front-line team members. In 2019, Farm Stores promoted him to director of operations. In his current role, Taylor looks to support franchisees and operators across the country to see them grow their businesses. This includes finding vendors and products that continue to make each Swiss Farms store and franchise a desirable place to shop.

What do today’s young executives bring to the table: “Passion, drive and dedication to make a meaningful and lasting impact on our business and in our community.”

KATHRYN MORGAN WATKINS DICKERSON, 27 Vice President

BRIAN TISDALE, 37

Company: Rose Oil Co. Headquarters: Henderson, N.C. Number of Stores: 13 RoseMart stores, and 42 dealer locations Years With the company: 4

Senior Category Manager, Tobacco Company: Pilot Co. Headquarters: Knoxville, Tenn.

Number of Stores: 750-plus Years With the Company: 6

After earning a degree in mathematics from the University of Tennessee, Brian Tisdale started his career with Pilot Co., working as a data analyst in the business intelligence department. After two years of supporting the company’s merchandising group with analytics, Pilot Co. tasked Tisdale with optimizing tobacco contracts. His success in that role earned him the opportunity to manage tobacco, which he has been handling the past four years.

What do you think today’s young executives bring to the table? “A fresh perspective and a new approach on leveraging technology and analytics to drive the business.”

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While finishing her online business degree from East Carolina University, Kathryn Morgan Watkins Dickerson began working for the family business, Rose Oil Co., helping it establish an online presence. During her four years with the company, she’s worked her way up through various positions. From riding with delivery drivers to working within the accounting department, she’s been able to learn all aspects of the business.

What project or innovation are you most looking forward to in 2022? “I look forward to learning and assisting in the integration of a new software that will allow us to better serve our customers.”

cstoredecisions.com

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40 Under 40

KENNETH WOODS, 36 Director of Operations, Food Service Company: The Kent Cos. Headquarters: Midland, Texas Number of Stores: 72 Years With the Company: 2

DREW WHITEFIELD, 33 Category Manager, Big Gulp/ Fountain Beverages Company: 7-Eleven Inc. Headquarters: Irving, Texas Number of Stores: 77,000 globally and nearly 16,000 in North America Years With the Company: 15

Drew Whitefield began his career with 7-Eleven while in high school as a sales associate. From there, he went on to hold roles as assistant store manager, merchandising business systems associate, store manager and field consultant, where he spent seven years before being promoted to platform business specialist supporting Big Gulp, Slurpee and coffee. In summer 2020, he was promoted to category manager for Big Gulp/Fountain beverages.

What is your favorite thing about your job/role? “Supporting our stores by bringing forward great, innovative new products that customers both love and crave.”

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CSTORE DECISIONS •

December 2021

Kenneth Woods knew with the first shift of his first job washing dishes that he was destined for a career in foodservice. He began at Golden Corral, working his way up to general manager. Next, he served as assistant manager with McAlister’s Deli, at the time a six-location division of Sun Holdings. Woods helped build it to 52 locations. Two years ago, he joined The Kent Cos., as director of operations, food service. Woods said he’s been lucky to have learned from great mentors and employees during his career, developing a service-first mentality that is the catalyst to his career path.

What do you think today’s young executives bring to the table? “I think we do a great job of finding ways to bridge the gap between those who came before us and the next generation of employees and guests coming into our locations. We pay homage to the past while still innovating for the future.”

ELIZABETH WRIGHT, 33 Human Resources Director Company: Max Arnold and Sons LLC Headquarters: Hopkinsville, Ky. Number of Stores: 20 (Max’s) Years With the Company: 11

After graduating college, Elizabeth Wright joined Max’s as a customer service representative, where she learned about the company’s family values and mission. As she learned about the industry, she advanced into roles of store management and district management, focusing on training and retaining talent. Wright wanted to make a difference on a larger scale, so she moved into human resources, where she focuses on creating the right culture in Max’s stores and providing learning opportunities in the field to bring in new talent and ideas.

What is the most challenging issue facing young executives today?

“In today’s challenging labor market, (it’s) bringing the right culture and diversity into your stores by making sure you are able to communicate and bring a positive, lasting influence to not only your employees but also the community.” cstoredecisions.com

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THE MOST AWAITED C-STORE EVENT OF THE YEAR!

SUNDAY, MARCH 27 8:00 AM 1:00 PM – 7:30 PM 1:00 PM – 4:00 PM 4:00 PM – 5:00 PM 6:00 PM – 7:00 PM 7:00 PM – 9:00 PM 9:00 PM – 12:00 AM

NAG Golf Outing at Torrey Pines Registration NAG Hospitality Suite NAG/YEO Board Meeting NAG Networking Reception NAG Opening Night Dinner NAG Hospitality Suite

MONDAY, MARCH 28 7:00 AM – 1:30 PM Registration/Info Desk Open 7:00 AM – 8:00 AM Breakfast 8:00 AM – 8:15 AM Welcome/Conference Overview, NAG Executive Director John Lofstock and NAG Board Chairman Doug Galli, Reid Stores Inc./Crosby's 8:15 AM – 9:15 AM GENERAL SESSION: BURNING ISSUE #1: Culture as a Competitive Advantage Culture is at the core of many businesses no matter how large they are. There are common traits in winning businesses that contribute to their unique nature: clear values. Caring, loyalty, humility and deep commitment to community are just a few of them. These characteristics often directly affect decision-making in the company and the way it treats its employees, customers and suppliers. Many businesses quite rightly view a values-based culture as a competitive advantage and, as such, it is fiercely guarded. Hear how leading c-store chains are building their winning culture.

Moderator: John Lofstock, Executive Director, NAG Speakers: • • •

Save the date for the LIVE event!

March 27-30, 2022

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Tom Robinson, Chairman & CEO, Robinson Oil Corp.

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9:15 AM – 9:45 AM

Break/Visit Sponsor Tables

9:45 AM – 10:45 AM GENERAL SESSION: BURNING ISSUE #2: Loading Up for Breakfast As more commuters return to the office, the breakfast business continues to rise and shine at restaurants. With consumers typically rushed at breakfast time, it’s no wonder that quick-service restaurants and grab-andgo c-store items accounted for more than 80% of total restaurant morning meals pre-pandemic, according to NPD. Recapturing a strong breakfast business requires great food and outstanding service, but it’s important to conduct a cost-benefit analysis to make sure investing in the morning daypart makes sense for your brand and your customer base.

Moderator: Jessica Williams, Founder CEO, Food Forward Thinking LLC Speakers: •

For additional information, contact NAG Executive Director John Lofstock at jlofstock@wtwhmedia.com.

• •

Jerome Hunsinger, Fresh Food Marketing Brand Manager, Wawa, Inc. Brian Scantland, Vice President, Fresh Food Operations and Business Planning & Analytics, Thorntons Tony Sparks, Head of Customer Wow!, Curby’s Express Market

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10:45 AM – 11:00 AM 11:00 AM – 12:30 PM 12:30 PM – 1:30 PM 1:00 PM – 5:00 PM 1:30 PM – 6:30 PM 6:30 PM – 9:00 PM 9:00 PM – 12:00 AM

Break/Visit Sponsor Tables Information Exchanges Part 1 Lunch Free Time/YEO Networking/Store Tour NAG Retail Store Tours Dinner on Your Own to Explore La Jolla NAG Hospitality Suite

TUESDAY, MARCH 29 7:00 AM – 4:00 PM Registration/Info Desk Open 7:00 AM – 8:00 AM Breakfast 8:00 AM – 9:00 AM GENERAL SESSION: BURNING ISSUE #3: It's All About Business Outcomes Learn from leading convenience and fuel retailers about their approach to creating loyal customer behavior and the investments that drive targeted business outcomes. NAG has partnered with Stuzo to survey convenience store chains and convenience store customers to find out what is driving sales at convenience stores. Topics covered include: • Loyalty, Payment and Cross-Channel Customer Experience Campaigns • Onsite and Offsite Engagement • CPG-Funded Offers • Security and Privacy

1:15 PM – 2:15 PM GENERAL SESSION: BURNING ISSUE #5: Human Resources: Staffing, Recruiting and Retaining Personnel in a Labor Shortage A labor shortage exists, and it’s going to get worse before it gets better. The reality that it coincides with a growing skills gap makes for a very challenging time for retail executives and hiring managers.

Experts recommend that HR leaders look to and build relationships with universities, recruiters and search firms, allow current staff to take part in external professional activities to help attract new talent, and look for potential employees on job boards and other social media outlets. Hear how top quartile chains are winning the labor battle.

Moderator: Jayson Council, Associate Faculty, Columbia University Speakers: • •

Peter Rasmussen, Director of Operations, Neon Marketplace Laura Varn, Vice President, People & Culture and Communications, Parkland USA

2:15 PM – 2:45 PM

Break/Visit Sponsor Tables

2:45 PM – 4:00 PM YEO BREAKOUT SESSION: Understanding the Future of Retail Payment Systems Online shopping has become easier through mobile and digital payments, but retailers are slow to see the benefits in brick-and-mortar stores. How can c-stores join the consumer demand for frictionless payment? In this session, experts on payments will discuss where digital payments are going and how the convenience industry can abandon cards for digital currencies.

Moderators: John Lofstock, Executive Director, The National Advisory

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Speakers:

5:30 PM – 6:30 PM 6:30 PM – 9:00 PM 9:00 PM – 12:00 AM

Group (NAG) and Steve O’Toole, Vice President of Sales and Business Development, Stuzo

• •

Sorin Hilgen, Group Chief Digital Officer and Chief Information Officer, EG Group Rachel Puepke, Vice President of Marketing, CEFCO

9:00 AM – 9:15 AM

Break/Visit Sponsor Tables

9:15 AM – 10:15 AM GENERAL SESSION: BURNING ISSUE #4: Lessons from COVID: How the Industry Is Recovering from a Pandemic The impacts of the COVID-19 pandemic on the retail sector and the nation's supply chains are still unfolding. Retail has experienced massive labor shortages, supply disruptions and price increases. It's impossible to predict the next pandemic, but retailers have learned quite a few lessons on how to deal with the next catastrophe. Hear from three convenience store retailers that embraced the unique challenges of the COVID pandemic, and learn about the leadership and stability they provided to guide their companies through those difficult days.

Moderator: Erin Del Conte, Executive Editor, CStore Decisions Speakers: • •

Derek Gaskins, Chief Marketing Officer, Yesway Colin Dornish, Director of Operations, Coen Oil Co.

10:15 AM – 10:30 AM Break/Visit Sponsor Tables 10:30 AM – 12:00 PM Information Exchanges Part 2 1) The Rise of Electric Vehicles: What This Means for Convenience Stores 2) HR: Unleashing the Power of Mobile Apps for Staffing Moderator: Laura Varn, Vice President, People & Culture and Communications, Parkland USA 3) What's Next for Tobacco, CBD and Cannabis 4) Foodservice: How to Cut the Partnership on Delivery Moderator: Brad Chivington, Senior Vice President, High's of Baltimore 5) How to Build a Private Label Business 6) The Business of Coffee: Is Bean to Cup for You? Moderator: Joy Almekies, Senior Director of Food Services at Global Partners/Alltown 7) Cryptocurrency and Bitcoin: What C-Stores Need to Know 12:00 PM – 1:00 PM

Lunch

NAG Networking Reception Dinner & Awards Ceremony NAG Hospitality Suite

WEDNESDAY, MARCH 30 7:30 AM – 12:00 PM Registration/Info Desk Open 8:00 AM – 9:00 AM WORKING BREAKFAST: NAG Custom Research: What Drives Consumer Behavior for Delivery Services?

Third-party delivery has expanded significantly, but is it here to stay?

What is driving consumers’ evolving behaviors and expectations, particularly in relation to convenience stores? How can convenience operators profitably compete with other channels offering delivery?

Utilizing custom research fielded for the NAG audience, we will explore consumer needs and desired interaction with convenience locations for food and grocery products. Our retailer panel will then explore various data points, uncovering how they are adapting or plan to adapt to customer expectations.

Moderator: John Lofstock, Executive Director, NAG 9:00 AM – 10:15 AM GENERAL SESSION: BURNING ISSUE #6: How to Build Customer Loyalty Through Engagement Convenience store loyalty programs are evolving, and they can present a treasure trove of information. Plus, new subscription-based models can help chains grow repeated sales from a captive audience. But as companies gather information on their customers, they must also be mindful of emerging data privacy laws. Learn how leading c-store chains are growing sales through loyalty engagement, while carefully navigating privacy regulations.

Moderator: Patrick Raycroft, Associate Director, W. Capra Consulting Group 10:15 AM – 10:30 AM Break/Visit Sponsor Tables 10:30 AM – 11:30 AM IDEAS BOOT CAMP Best practices and a conference wrap-up with John Lofstock, Executive Director, NAG; Brad Chivington, Senior Vice President, High's of Baltimore; Joy Almekies, Senior Director of Food Services at Global Partners/Alltown.

11:45 AM 12:00 PM

Conference Wrap-Up and Takeaways Departures

Category Management | Vape

THE VAPE

WAITING GAME

CONTINUES Despite thousands of marketing denial orders, vape category sales keep puffing along at c-stores as retailers await final decisions on premarket tobacco applications for most major brands.

Anne Baye Ericksen • Contributing Editor

Category Management | Vape

All but one of the Food and Drug Administration (FDA) decisions on millions of premarket tobacco applications (PMTAs) for electronic nicotine delivery systems (ENDS) and e-liquids thus far have resulted in marketing denial orders (MDOs).

Vuse Solo cartridges, but failed to identify them publicly. The National Association of Convenience Stores (NACS) joined other retail industry organizations decrying this oversight, especially because MDOs demand items be immediately pulled from store shelves.

“Our members do not need any confidential or detailed information about the products, they simply need to know the names of the products, so that they can be identified and taken off the market,” the NACS letter stated.

As of early November, the FDA still hadn’t released PMTA decisions for other big-name vape brands, such as JUUL. Despite all the segment shifting over the past few months, it’s been business as usual for the 80-plus Crosby’s convenience stores in New York and Pennsylvania.

“The category has always had a little uncertainty, but because we didn’t carry those MDO products, it hasn’t impacted our vape category.

If anything, the flavor ban a couple months ago took a bigger bite out of the business,” said Doug Galli, former vice president/general manager for the c-store chain, part of Reid Petroleum, based in Lockport, N.Y. He has since moved on to a special projects position.

“The number of denial orders was anticipated back in 2014 when Consumer Advocates for Smoke-free Alternatives Association (CASAA) and other experts warned the FDA that subjecting new nicotine products to the same authorization hurdles for cigarettes would exclude 98% of manufacturers,” said Alex Clark, executive director, CASAA. It wasn’t until mid-October that the agency announced its first PMTA approval, permitting ongoing sales of R.J. Reynolds Vapor Co.’s Vuse Solo, a closed system e-cigarette, and two of its tobacco-flavored replacement pods. However, the FDA rejected applications for 10 flavored

Vape Trajectory

Despite challenges from federal, state and local regulations, the vape category continues to post positive earnings year after year.

DOLLAR SALES 1-YEAR % CHANGE

DESCRIPTION

52 Weeks Ending 10/26/19

52 Weeks Ending 10/24/20

52 Weeks Ending 10/23/21

TOTAL U.S. CONVENIENCE STORES Tobacco Alternatives

93.8%

14.0%

13.7%

Tobacco Alternatives Vapor

95.0%

14.0%

13.8%

Electronic Cigarettes

95.1%

14.0%

13.8%

TOTAL U.S. CONVENIENCE STORES & OTHER RETAILERS Tobacco Alternatives

62.1%

5.9%

10.4%

Tobacco Alternatives Vapor

93.0%

8.1%

13.4%

Electronic Cigarettes

93.0%

8.1%

13.4%

Source: NielsenIQ, Total U.S. Convenience data for the 52 weeks ending Oct. 26, 2019; Oct. 24, 2020; and Oct. 23, 2021; received Nov. 3, 2021

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cstoredecisions.com

Category Management | Vape

In fact, Galli noted that vape sales are more than keeping pace.

“Other tobacco products, vape and nicotine replacement products have been doing very good for us, and it continues to grow,” he said.

NielsenIQ Total U.S. Convenience data over the 52 weeks ending Oct. 23, 2021, registered an increase in dollar sales of 13.8% for both tobacco alternatives vapor and electronic cigarettes. This is consistent with the same period last year, which landed at 14.0% for each. Plus, the research firm reported that Vuse gained a point in market share for the four weeks ending Oct. 23, 2021, and dollar sales jumped more than 54%.

WHAT TO WATCH

The FDA’s actions aren’t the only regulations affecting the category heading into 2022. In Massachusetts, the first state to pass a comprehensive flavor and menthol tobacco ban, lawmakers have proposed repealing elements of the law. One bill, for example, would exempt products granted FDA marketing approval or modified risk status.

“The data shows the ban hasn’t worked.

Increased sales in New Hampshire and Rhode Island coupled with conversion to traditional tobacco flavored cigarettes in Massachusetts prove this out,” said Jon Shaer, executive director, New England Convenience Store & Energy Marketers Association. “It’s difficult for retailers to watch the sales occur, just not through their stores.”

“One of my issues is that when they put the ban into effect, it didn’t allow for PMTA or modified risk from the FDA,” added Anna Bettencourt, senior category manager for Haffner’s c-store chain, owned by Lawrence, Mass.-based Energy North Inc. “If the FDA clears products to be on the market, then states should allow them to be sold.”

Another development that could benefit the vape category for c-stores is the final ruling on 52

CSTORE DECISIONS •

December 2021

the Preventing Online Sales of E-Cigarettes to Children Act (POSECCA). The law forbids the delivery of vape products to residences throughout the continental U.S. via the U.S. Postal Service. Several delivery services, including FedEx, also have declared they would no longer transport vape items to homes.

“Consumer access is being tested with the new regulations,” Clark said.

Perhaps the most intriguing component of this legislation is that Congress did not distinguish between tobacco plant-based and synthetic nicotine products. Currently, it’s unclear whether synthetic nicotine falls under FDA jurisdiction. It’s certainly a product line worth watching for its potential to replenish convenience stores’ back bars after so many MDOs. CSD

fast facts: • Vape and e-cigarette sales climb 13.8% at c-stores for the 52 weeks ending Oct. 23, 2021, per NielsenIQ. • The Preventing Online Sales of E-Cigarettes to Children Act bans mail delivery of vape products.

• Manufacturers look to synthetic nicotine to possibly sidestep FDA regulations.

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Category Management | CBD

C-STORES FORESEE STRONG CBD SALES

IN 2022 The convenience industry has real opportunity to

build upon 2021 momentum by capitalizing on trending products like delta-8 gummies and CBD drinks.

Isabelle Gustafson • Associate Editor

Cannabidiol (CBD) sales in the convenience and petroleum channel are set to hit $171 million in 2021 — up 49% from 2020, according to market research firm Brightfield Group’s “US CBD Market Industry Update, October 2021.” The market is forecast to reach $449 million by 2026, representing a 21% compound annual growth rate (CAGR) from 2021 to 2026.

Category Management | CBD

“We are seeing growth in the (convenience) channel uniquely, and we have it expanding more rapidly than the market in general,” said Brightfield Group Senior Insights Manager Jamie Schau.

While the CAGR for c-stores is only slightly higher than the overall market, Schau said, it’s especially promising considering initial projections.

“It’s not really what we were originally expecting,” she said.

“We were expecting a whole lot of huge pharmaceutical change, grocery, mass (merchants), to move a lot more volume, and that’s been delayed. So it’s giving convenience stores, actually, unique access.”

Savannah, Ga-based Parker’s, which operates more than 70 stores throughout coastal Georgia and South Carolina, started selling CBD products about four years ago, said Mike Gancedo, senior category manager for Parker’s.

The chain now carries a variety of products, including Summitt Labs’ Hemplitude gummies, disposable vapes and cartridges, as well as cartridges and gummies from the Pur brand.

“We are going to keep some kratom,” Gancedo said, referring to an herbal extract that comes from the leaves of an evergreen tree grown in Southeast Asia that offers similar effects to CBD. “But delta-8 is just dominating — right now, it’s the gummies as No.1, and then the vape is No. 2.”

DRINK DILEMMA

While tinctures have been holding about 25% of sales this year in the convenience channel, Brightfield Group expects capsules, drinks and gummies to see the strongest growth over the forecast period.

“Everyone is talking about drinks,” Schau said. “There’s a lot of excitement around it. … I think it is largely because it’s seen as this alcohol substitute, and a lot of people coming out of the pandemic slowly but surely are looking to cut back on alcohol consumption. This is a really viable alternative.”

It makes sense to position CBD drinks along56

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December 2021

Source: Brightfield Group, “US CBD Market Industry Update, October 2021”

side alcoholic beverages, Schau said — either as an alternative or even a mixer.

Still, many c-stores are holding off on adding CBD drinks to the lineup.

“And there’s a reason for that,” Gancedo said.

“See, our CBD products, we’ve got them on the counter, but right now they’re installing doors.

We don’t want anybody under 21 having access to those, even to steal the product. We don’t want it in their hands.”

If Parker’s had the space behind the counter to carry CBD drinks, Gancedo said, it might be different. For now, he sees CBD drinks as a better fit in tobacco outlets or vape shops, where employees are able to talk with the customers further and educate them on the different products.

But many of Parker’s competitors do sell CBD drinks, Gancedo noted — on the floor, on the counter, “everywhere.”

“Our customers, we tailor to soccer moms and ‘Bubba’ and everybody else,” he said. “The one thing that you do not want is you do not want to upset mothers. They’re our base customers, and we want to make sure that we’re doing things responsibly.”

DELTA-8 DOMINATES

Parker’s has seen huge success with its delta-8 products, which are considered to have many of the same psychoactive effects as tetrahydrocannabinol (THC) — albeit at lower levels.

cstoredecisions.com

Category Management | CBD

of what these highermilligram delta-8 gummies and these vape products can do.”

Of course, some states have banned or restricted delta-8 sales, and potential FDA regulation is looming.

“I absolutely think regulatory adjustments or addressing of delta-8 could impact that market,” said Schau. “That probably is the biggest risk to delta-8 sales. Although, they’ve been allowed to go on for quite some time now. It’s not really clear how long Source: Brightfield Group, “US CBD Market Industry Update, October 2021” that’ll continue or if it’s going to go unhindered.”

“It’s a bit of a gray area,” said Brightfield Group’s For now, Gancedo is catering to customer deSchau. “But I would say, generally, (delta-8 and mand for delta-8, until rules and regulations require CBD) are competitors.” retailers to change course.

The convenience channel in particular has expe“We’re trying to sell as much as we can right rienced significant disruption of CBD sales thanks now, and then we’ll transition to whatever the next to delta-8. big thing is,” Gancedo said. “That’s what we have “Oh, it’s transitioned from CBD to delta-8, to do here in the conveniece store industry.” CSD 100%,” Gancedo confirmed. “We went from selling, let’s say, $40,000 (a week) on CBD, and that’s just all transitioned to delta-8. It’s the same consumer, just transitioning.”

The good news is that sales keep growing as more and more customers learn about delta-8, • CBD sales in the c-store channel are set mostly through word of mouth. to hit $171 million in 2021 — up 49% “You can see the sales picking up week after from 2020, per Brightfield Group. week after week. So you know the people who are buying it are talking and telling people, and they’re • Retailers are seeing success with delta-8, telling people, and so on and so on,” Gancedo but the product is at risk of federal and said. “What we’ve learned and what we’ve seen is, the higher the milligram, the higher the potency, state regulation. the more it sells — regardless of the price, too. …

We’re changing up the whole entire lineup within a two-month period because we see the potential

fast facts:

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CSTORE DECISIONS •

December 2021

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PREVIOUS EDITIONS:

Foodservice | Breakfast

BREAKFAST

O B UNCES

BACK

For some convenience chains, breakfast is such a strong daypart that even the pandemic could not slow its momentum. And, according to retailers, sales are expected to continue to grow in 2022.

Marilyn Odesser-Torpey • Associate Editor

As customers get back into the swing of things after pandemic disruption, they’re hungry for innovative breakfast foods, and c-stores are responding with updated menu offerings.

Breakfast is the core of the entire foodservice program at B-Quik’s three convenience stores in Louisiana, and sales have continued to increase month over month, year after year, even as the pandemic virtually halted the usual morning commute throughout the country, reported David Schumaker, general manager for B-Quik.

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cstoredecisions.com

December 2021 • CSTORE DECISIONS

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Foodservice | Breakfast

Pilot’s jumbo burrito features eggs, cheddar cheese, tater tots, bacon and sausage.

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CSTORE DECISIONS •

December 2021

“We are as busy as we’ve ever been,” Schumaker said, “not just for breakfast, but for overall store sales.”

Among the perennial favorites are B-Quik’s sausage or bacon, egg and cheese biscuits and croissants. All items are made on site and ready for grab and go.

B-Quik’s morning menu also includes numerous innovative beyond-bread items such as a chicken-and-waffle sandwich and French-toastand-sausage sandwich. Loaded hash browns with scrambled eggs, bacon, sausage and ham are prepared in muffin form so they can be picked up and eaten without a fork. A pig-ina-blanket offering consists of spicy sausage wrapped in bread-like pastry.

BREAKFAST REBOUND

Following the initial six to eight weeks of the pandemic shutdown, the breakfast business at the five Hub Convenience Stores in North Dakota “bounced back very quickly and has been thriving ever since,” according to Jared Scheeler, CEO of The Hub, and 2021-2022 National Association of Convenience Stores (NACS) chairman. During this major daypart, the stores carry upwards of a dozen different varieties of made-on-site, grab-and-go breakfast sandwiches. cstoredecisions.com

Foodservice | Breakfast

Pilot Co. offers fresh, hot breakfast at more than 300 of its Pilot Flying J travel centers.

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CSTORE DECISIONS •

December 2021

“

We’ve seen plenty of demand in the breakfast daypart, especially as we’ve added new items made fresh in our stores.

“

Sausage and sausage-and-egg croissants have long accounted for the lion’s share of morning sales, Scheeler explained. He added that sausage, egg and cheese on flatbread “catapulted to our No. 2 product” soon after its introduction, and a biscuit-and-gravy platter is “incredibly popular.”

Another hearty favorite is the threemeat ham, bacon and chorizo burrito with egg and a veggie blend, Scheeler noted. Accompaniments such as potato hash brown bites and potatoand-cheese bites add a higher ring to breakfast sales.

Limited-time offers (LTOs) such as a waffle breakfast sandwich with fried chicken breast or sausage and egg that debuted in early fall 2020 keep the selections interesting and remain on the menu as long as sales remain strong. LTOs are featured on the menu twice a year.

The Hub Café, available in some stores, serves made-to-order burritos, flatbreads and sandwiches on brioche buns. The sausage is a special blend supplied by a local butcher shop.

Fresh bakery category, including doughnuts, muffins and a wide variety of pastries, has always been a stand-out at The Hub, especially during the breakfast daypart. The company converted its flagship store from grab-and-go bakery to full-service, and this setup will be a strong consideration for any new groundup or renovated sites, Scheeler pointed out.

“During the pandemic, we expanded our bakery offerings and display cases to offer a more robust offering,” he said.

For 2022, Scheeler is concerned that continued supply chain challenges might hamper additional innovation in foodservice, including breakfast. However, he expects the stores’ breakfast business to continue to flourish.

— Jamie King, senior director of food and beverage, Pilot Flying J

cstoredecisions.com

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The Hub carries upwards of a dozen varieties of made-on-site, grab-and-go breakfast sandwiches.

Pilot Co.’s Pilot Flying J travel centers, with more than 750 locations in 44 states and six Canadian provinces, serve fresh, hot breakfast at more than 300 participating sites. Because many of its guests are professional drivers and other essential workers, the stores have remained open 24/7 throughout the pandemic.

“We’ve seen plenty of demand in the breakfast daypart, especially as we’ve added new items made fresh in our stores,” said Jamie King, senior director of food and beverage for Pilot Flying J. Among the chain’s signature items are a popular breakfast pizza and a recently introduced jumbo burrito, a warm tortilla stuffed with eggs, cheddar cheese, tater tots, crispy bacon and Goolsby Tennessee sausage. Four new grab-and-go breakfast sandwiches on croissants, biscuits and French toast, added earlier this year, have also been enthusiastically received by guests, King noted.

This past summer, the stores featured an LTO French Toast Stacker Sandwich, which quickly earned a fan following, she said. For a knife-andfork meal, the stores offer biscuits and gravy, as well as scrambled eggs with bacon and sausage. CSD

fast facts: • Innovation in the form of limited-time offers is enticing breakfast customers.

• Breakfast sandwiches get creative with new carriers beyond bread.

• Retailers report strong customer demand for breakfast items. cstoredecisions.com

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2/5/21 3:28 PM

Foodservice | Coffee

COFFEE’S COMEBACK

As coffee traffic returns to c-stores, retailers are wooing customers with new flavors, as well as cold-brew offerings.

Emily Boes • Editorial Assistant

As traffic to c-stores slowly increased in 2021, c-store retailers drew customers back to the coffee segment with seasonal and unique flavors, a variety of blends, as well as cold-brew options. Now, as the year comes to a close, retailers are adapting to a more consistent flow of consumers, especially in the hot dispensed category, and that’s meant positive news for category sales.

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fast facts: • C-stores are enticing hot dispensed customers with seasonal coffee flavors.

• Retailers see hot dispensed sales trending upward in 2021 after a challenging 2020.

• While bean-to-cup is trending, some retailers prefer the benefits of traditional brewing.

At Cliff’s Local Market, 2021 hot dispensed sales are outperforming 2020 sales, now that more people are returning to the store, confirmed Derek Thurston, director of foodservice operations for Cliff’s, which operates 20 locations in New York.

In fact, during October 2021, Cliff’s coffee, cappuccino and cold brew sales were up 13.3% for the month compared to last October, he said. However, the category is still falling short of 2019 sales.

At Tiger Fuel Co.’s The Market convenience stores, hot dispensed sales also dropped in 2020 due to the pandemic, but they continue to rise in 2021.

“We are up around 11% from 2019,” said Lisa Dollins, pricebook manager of Tiger Fuel Co., which currently operates 10 locations in Virginia.

Both retailers expect growth in the hot dispensed segment to continue in 2022.

FRESH AND BOLD FLAVORS

Five years ago, Cliff’s Local Market started a relationship with local roaster Utica Coffee and offers customers a steady year-round selection of blends that perform well.

“What we typically do is we have our house blend, our Dark Adirondack (and) our ‘Wake The Hell Up!’ blend, which is one of their most popular blends,” said Thurston.

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Foodservice | Coffee

Tiger Fuel’s The Market partners with Ronnoco Coffee for its coffee program. Varieties include breakfast blend, Colombian, extreme caffeine, French vanilla, organic Guatemalan and more.

Cliff’s is also known for its seasonal and unique flavors. During the last quarter of the year, a new flavor is released in October for Halloween, November for Thanksgiving and December for the winter holidays. Cliff’s recently finished serving the Great Pumpkin and Apple Cinnamon flavors and has Mocha Mint available in December.

“And then in January, we’re going to go to Half Moon, which is a regional favorite around here; it’s a cookie,” said Thurston.

Finding new, bold and fresh flavors to sell to customers has been a successful strategy for Cliff’s, which caters the flavor to the market. For example, Cliff’s developed a blueberry pancake flavor and specifically marketed it to the younger generations.

A dark chocolate raspberry-truffle flavor has also performed well around Valentine’s Day. “We’re just keeping the flavors new and interesting and constantly moving,” said Thurston.

Tiger Fuel’s The Market began partnering with Ronnoco Coffee for its coffee program about two years ago. The Market stores offer multiple coffee flavors, including breakfast blend, decaf, dark roast, Colombian, extreme caffeine, French vanilla, African sunrise, Costa Rica and an organic Guatemalan.

The Market also features a variety of flavors for its cappuccino, such as hot chocolate, mocha, pumpkin spice (seasonal), French vanilla and caramel.

Both c-store chains offer different creamer and syrup flavors, as well, so shoppers can customize their beverages.

RISE OF THE COLD BREW

In addition to offering exciting new flavors in the hot dispensed segment, retailers have found coldbrew coffee to be in demand.

The Market offers cold brew at four of its locations.

“This is new to The Markets due to the trend of what our customers are looking for,” said Dollins. “Next year, I believe that cold coffees will be the trend, and the stronger dark coffees, also. We are a college 70

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December 2021

town, and the students are trending in that direction.”

Two local cold brews it offers are Snowing in Space — both in 12-ounce cold cans and in the coffee area with Kegerators — and Trager Brothers Coffee in 16-ounce cans.

Cliff’s is also watching the growing popularity of cold brew and adapting to the trend. First it tested nitro cold brew, but when that failed to catch on with its customer base, the chain shifted to offering a regular black cold brew and a salted-caramel latte variety that resonate better with its cold-brew customers.

TRADITIONAL BREWING STILL SELLS

While an increasing number of c-stores are trending toward bean-to-cup dispensers due to the improved freshness, quality perception and reduced labor required, some c-store chains, like Cliff’s and The Market, prefer the employee interaction, space-saving attributes and speed that they say traditional brewing allows. For instance, Cliff’s uses soft-heat urns.

“Bean-to-cup’s good because it eliminates labor, but with us, we’re committed to labor, to going over there and taking care of it,” said Thurston. “You can get a lot more people in and out when you have six or seven urns fully stocked. (Employees) can fill them up, and you don’t have to wait a minute-and-a-half to get your coffee to come out. You can just pull the nozzle, and you’re good to go. You fill up with your creamers, and you are out the door.”

The Market features one store with bean-to-cup dispensers, but space constraints make it a challenging offering for the location. “It requires more space on our counters, and we just do not have that kind of space,” said Dollins.

While bean-to-cup dispensers offer many benefits for c-stores, traditional brewing remains a classic and efficient option. CSD

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11/4/21 10:57 AM

Technology | Future Tech

TECH TRENDS AHEAD FOR 2022

While digital automation seems targeted toward large retail operations, simpler solutions for smaller c-store chains are emerging.

Thomas Mulloy • Senior Editor

Retail technology is moving at breakneck speed, making it tough for c-store operators who must juggle running an efficient business while meeting rising customer expectations. Integrating loyalty apps, order ahead, delivery and point-of-sale (POS) systems, while tracking inventory and labor hours, can be daunting.

It doesn’t have to be. New tech is emerging in the coming months that can help retailers test the digital waters without the information overload or busting the budget.

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“Here’s why I’m excited, right now, right exactly now in December as we face this new year,” explained Daniel Burrus, futurist, author, disruptive innovation expert and founder of Burrus Research.

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Technology | Future Tech

“There is more opportunity to grow your c-store and your business than ever in history.”

Tech trends to watch in the year ahead include the rise of frictionless stores, chatbot kiosks that can respond to common customer questions, the ability to order out-of-stocks via automation and delivery.

If you do the same thing over more than three or four times, it can be automated, noted Burrus. Many of those things — like answering questions about what aisle to find a product, whether it’s in stock or even carried at all by your store, directions to the interstate — can be performed by electronic systems.

“The key is,” said Burrus, “if we can get technology to answer customer questions, to free the people that are in the store to do what humans do best — interface with other humans and take their cash — we can make more money.”

Still, many of those systems can demand a heavy upfront investment — something that makes sense for the big chains. But does it make sense for smaller retailers?

“Sometimes the technology’s cool, but it doesn’t really pay for itself,” said Anthony Perrine, owner of two Lou Perrine’s Gas & Grocery stores in Kenosha, Wis. “Or it doesn’t do anything that is really saving that much time and money for a smaller guy.”

While much of the latest retail tech seems out of reach for Perrine, he stays on top of what’s

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developing, anticipating the day when the cost lowers to the level of his budget. Still, Perrine is tuned into technology.

“I really want to try and get a frictionless store,” Perrine said, explaining that he’s applied for artificial intelligence (AI) grants to help meet the expense. After recently building his second store, he now feels that he would like to build a store around the latest technology, instead of retrofitting an existing structure.

“So that’s something I would absolutely pull the trigger on, if I could get my hands on something like that,” he said.

INFINITE INVENTORY

Integrating automation could become easier for smaller retailers soon. And cheaper, Burrus emphasized. Despite a store’s size or its chain’s wherewithal, Burrus sees the coming of what he calls “infinite inventory.”

Shelf space is at a premium at c-stores — especially for smaller footprints — and getting the optimal product mix is a challenge. As retailers rotate seasonal items onto their shelves, Burrus sees in the very near future the ability to still offer products that have rotated out. With a flat panel monitor or even large tablet, internet access and a website, operators can have an in-store kiosk for ordering out-of-stock items.

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Technology | Future Tech

Retailers could tie in a delivery service or other outside fulfillment service to cover the last-mile delivery of these items. That technology is available now.

That same customer convenience could extend to a mobile application. Burrus underscored the importance of allowing customers the option to pay with their smartphone, saying that the mobile payment transaction is as fast or faster, and just as secure. Plus, customers expect it and will ask for it.

“When you say no,” Burrus said, the customer will be thinking, “I know that you’re an old-fashioned store, and if I’m a more modern guy, I might try to go somewhere else that can do it the way I want to do it.”

Voice AI is becoming more commonplace, too, especially with today’s labor crunch. Team members need to be doing productive things — like processing sales, stocking product or maintaining the foodservice or beverage areas of the store.

“Time is money,” Burrus said. “The more time you spend on one thing, the less time you’re spending on something else.”

START SMALL, PLAN BIG

And while many of the latest digital platforms may seem financially out of reach for the retailer with fewer than a dozen or so stores, Perrine knows it’s essential to stay on top of what’s happening on the tech front. “I just try to see what’s out there and try to play with it if I can,” he said.

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Budgetary hurdles are an issue for many retailers, but there are inexpensive solutions to automating customer in-store inquiries, advised Burrus. Don’t have the budget for a big tech vendor? Start small.

He recommends cash-strapped retailers use a Voice AI bot system — like Amazon’s Alexa, Apple’s Siri or Google Assistant — to get started automating customer questions that distract employees from more important tasks.

Doing nothing could be your business’ death sentence. Beware the comfort of the wait-and-see mindset.

“In the past, a wait-and-see attitude made sense because change was kind of slow,” advised Burrus.

“But today, change is coming faster and faster, and you can ‘wait and see’ yourself right out of business — because you’re either going to be more relevant in the marketplace or less. There’s no in between.”CSD

fast facts: • Tech offers more opportunity than ever to grow a retail business.

• Internet and a display can create the infinite inventory.

• Voice AI, like Amazon’s Alexa, is an inexpensive tech entry point.

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PRODUCTShowcase

Foot-Long Bar Reese’s is introducing its peanut butter cup candy with six cups under the same wrapper. Reese’s Super King allows consumers to buy one candy to share. The new Super King package is now a full foot long, giving customers enough of the classic peanut butter and chocolate goodness for everyone.

The Hershey Co.

www.thehersheycompany.com

Artisan Ciabatta Buns

Cloud Archive for Storing Surveillance Videos Envysion has released Cloud Archive, an insurance safety net for unforeseeable events. The technology allows customers to choose to store surveillance video in the cloud from seven months to seven years, based on their state’s statute of limitations, for up to 16 cameras. It eliminates the need to update hardware or maintain equipment. Customers can access their stored video from anywhere at any time on any device. It allows customers to protect their business in the event of potential future litigation by archiving their video in the cloud.

Gonnella Baking Co. released its Gonnella Ciabatta, which has a light and airy crumb and moist interior. It pairs well with eggs, cheese and breakfast proteins and works as a base for a hot, crispy chicken or deli sandwich ready to eat from the cold case. A true artisan Ciabatta, the buns are made with a poolish starter and cold-proofed in Gonnella’s special fermentation room.

The new Made in Store bun line was developed for foodservice and commissary kitchens, holds up to four hours in a warmer and has a cooler shelf life of three-plus days.

Gonnella Baking Co.

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Cocktails in a Can Malibu has introduced Malibu Cocktails in a Can, a new range of refreshing, high-quality canned cocktails made with natural flavors and the brand’s signature real Caribbean rum. Malibu Cocktails in a Can are available in Piña Colada and Strawberry Daiquiri. Now available at retailers nationwide in 12-ounce cans, Malibu Cocktails in a Can have an ABV of 7%.

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Malibu

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PRODUCTShowcase

Light and Crunchy Chicharrones 4505’s chicharrones have a light, airy and melt-in-your-mouth texture and will satisfy customers’ cravings for something delicious and crunchy without slowing them down. Featuring zero carbs and seven-plus grams of protein per serving, they are also keto certified, paleo certified and naturally gluten-free — and made with humanely raised, all-natural pork with no added hormones or antibiotics.

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Ugly Sweater Seltzer Variety Pack Bud Light Seltzer has released the limited-edition Ugly Sweater Pack this holiday season with three new festive flavors and one holiday favorite. The new Bud Light Seltzer Ugly Sweater variety pack features an ugly sweater design and is available in 12-ounce slim can variety 12-packs nationwide. The pack is made with cane sugar, natural flavors and has 100 calories with less than one gram of sugar and 5% ABV.

Anheuser-Busch

www.anheuser-busch.com

Hot Food Displays Fri-Jado launched its new MCC series of hot food displays. These modular convenience counters are available as a self-serve unit for packaged hot food or as a closed version with humidification for open food. The MCC displays are equipped with patented Hot Blanket Technology to keep the products safe for longer. Being the most transparent food display cabinets on the market and designed to stimulate impulse purchases, the MCCs offer up to 75% more product visibility than other units. With up to 30% more display surface on the smallest footprint, they are a real space-saver, too.

Fri-Jado

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Baja-Inspired Jerky Flavors Baja Jerky has released flavor- and protein-packed snacks that are crafted with high-quality ingredients and a significantly lower amount of salt and sugar than typical meat snacks.

The Baja-inspired flavors are made using fresh ingredients, healthy spices and quality beef, creating a flavor portfolio that includes Traditional, Salsa Fresca, Sweet Orange, Churro, Lime & Serrano Pepper, Street Taco and Zero Sugar Crackin’ Pepper. The jerky is made with 100% all-natural beef and has no preservatives, MSG, gluten or added hormones.

Baja Jerky

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PRODUCTShowcase

Belgian-Style Waffle Sandwich Carriers General Mills Convenience’s Pillsbury Belgian-Style Waffle Carrier is presliced in a convenient, thaw-and-serve format, making it easy to assemble sandwiches across different back-ofhouse formats. The waffles carriers are made with one side featuring a traditional waffle texture and the other side flat for easy assembly. Made with maple syrup and crisp pearl sugar, the waffles have a slightly sweet flavor profile. They have no high fructose corn syrup, artificial colors, flavors or preservatives. The optimized case count for c-stores is 36 sandwiches/72 sides per case, and each is 2.8 ounces.

General Mills Convenience

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Gummy Clusters Flavor Extension Nerds added a new flavor extension to its Gummy Clusters after seeing success with the innovation: Very Berry. Adding a new twist to the original line of Gummy Clusters, each brightly colored piece offers a cluster of crunchy, tangy and mini Very Berry Nerds with a fruity gummy center. The Very Berry Gummy Clusters will be available nationwide beginning in 2022. A three-ounce Share Pack will have a suggested retail price (SRP) of $1.49-$2.49. An eight-ounce Standup Bag will have an SRP of $2.99-$3.99.

Footlong Meat Sticks Country Archer launched its Footlong Sticks earlier this year. Each stick is crafted with grass-fed beef and natural pork and is made with real ingredients.

The new Footlong Sticks are packed with 15 grams of protein per serving and were created specifically as a better-for-you option. They are available in Classic, the traditional recipe with a natural smoke flavor; Teriyaki, tender beef in a savory marinade with hints of pineapple, ginger and garlic; and Fuego, a fiery blend of red and white pepper, chipotle chiles and chili powder.

Country Archer

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Ferrara

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Bite-Sized, Poppable Snacks Kellogg’s is introducing one of its newest innovations, Cheez-It Puff’d, among a line of new snacks from the Kellogg’s brands, such as Pop Tarts, Rice Krispies and Pringles. The snack comes in bite-sized, poppable shapes that melt in the mouth. They are baked with 100% real cheese inside and out for the cheesiest taste.

They are available in Double Cheese and White Cheddar, coming to c-stores starting January 2022.

Kellogg’s

www.kelloggs.com 82

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PRODUCTShowcase

Margarita Hard Seltzer Variety Pack Molson Coors Beverage Co. announced Topo Chico Hard Seltzer’s second variety pack and first full-flavor extension — Topo Chico Margarita Hard Seltzer Variety Pack. Arriving in 2022, the Margarita Hard Seltzer Variety Pack comes just weeks after Molson Coors shared its plans to expand Topo Chico Hard Seltzer from its current regional footprint to all 50 states in January 2022. The Topo Chico Margarita Hard Seltzer Variety Pack will feature four tropical flavors, including Signature Margarita, Tropical Pineapple, Strawberry Hibiscus and Prickly Pear, each in 12-ounce cans and with 100 calories and 4.5% ABV per serving.

Molson Coors Beverage Co.

www.molsoncoors.com

Carbonated Energy Drink Living Essentials, the makers of 5-hour Energy shots, launched a new carbonated energy beverage in a 16-ounce can. The company announced the beverage with simultaneous exhibits and events at the National Beer Wholesalers Association (NBWA) convention in Las Vegas and at the National Association of Convenience Stores (NACS) convention in Chicago. The new beverages are available in three flavors: Berry, Grape and Watermelon.

The launch flavors are among the most popular of the shot.

Spicy, Stackable Potato Crisps

Living Essentials

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Functional CBD Gummy Options Charlotte’s Web has added three new functional CBD gummies products: Daily Wellness, THC-Free and Immunity. These are vegan, non-GMO and available in 60-count containers.

Daily Wellness is available in 15- or 25-milligram CBD strengths per serving. It comes in a raspberry-lime flavor with a suggested retail price (SRP) of $44.99 and $69.99, respectively.

THC-Free is available in 15- or 25-milligram CBD strengths per serving and comes in a mango-peach flavor with an SRP of $44.99 and $69.99, respectively. With 10-milligram CBD strengths per serving, Immunity comes in lemon-berry flavor with an SRP of $44.99.

Charlotte’s Web Holdings Inc.

www.charlottesweb.com cstoredecisions.com

Takis, the spicy rolled tortilla chip brand, announced Takis Crisps, the latest addition to the brand’s growing list of bold salty snack offerings. Infused with the full force of Takis Fuego signature variety, these stackable potato crisps are hitting store shelves in a perfectly portable container. Now available nationwide in two-ounce and 5.5-ounce containers, Takis Crisps can be found in stores at a suggested retail price of $1.19 and $1.69, respectively.

Barcel USA

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December 2021 • CSTORE DECISIONS

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IndustryPerspective

‘C’ Is for Community:

Meeting Shoppers’ Expectations Around Sustainability Customers expect c-stores to serve their local community beyond providing products and services.

Michael Sansolo • CCRRC

For a number of years, the National Association of Convenience Stores (NACS) has argued that the “C” in its name could actually stand for community — and during the COVID-19 pandemic, shoppers seemed to agree. This emphasis on community offers important opportunities and challenges for convenience store operators, especially when it comes to meeting consumer expectations around sustainability.

“Convenience Store Customers and Sustainability: The Journey to Creating Brand Ambassadors,” the newest study from the NACS Coca-Cola Retailing Research Council (CCRRC), examines a range of convenience store shopper attitudes, particularly around issues like sustainability and social responsibility.

Shoppers surveyed spoke about the importance of their local convenience store, with some saying they simply could not imagine their community without it. This sentiment was especially strong during the pandemic, as many shoppers lauded their local c-stores for providing a safe shopping experience that was often easier than larger stores.

However, the survey also revealed that those positive consumer feelings translate into real expectations that c-stores will serve the needs of the local community well beyond providing products and services.

In those same interviews, shoppers identified a range of activities and services they would like to see c-stores offer to help customers and their communities live more sustainably. Those requests ranged from the simple (adding recycling receptacles near gas pumps) to complex (adding electric vehicle charging stations).The report includes a road map that can help individual c-store operators chart a realistic course of action as they determine which sustainable activities are most impactful, while also balancing feasibility.

For businesspeople who may question whether such activities benefit their bottom line, the survey paints a clear picture: 68% of frequent shoppers report that a 86

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company’s environmental reputation has a moderate to very strong impact on purchase intent. Not to mention that many sustainability initiatives — such as the use of energy-efficient lighting, coolers and store design — can reduce costs.

The study also makes clear that shoppers are largely unaware of sustainability efforts already underway by retailers, indicating the need for improved communication.

For example, if stores are switching to more energyefficient lighting or construction, or even simply partnering with local charities and food banks, shoppers say they want to hear about it. Retailers would be wise to use social media, in-store signage, emails and text updates to highlight these efforts.

And sustainability isn’t the only issue of importance to c-store shoppers. Those same shoppers also want cstores to be active in local charities, compensate employees fairly and encourage employees to support community causes. And, at the very minimum, nearly all shoppers expect companies to operate ethically.

For more insights and recommendations, the full report may be downloaded for free at ccrrc.org.

Michael Sansolo serves as the research director of the Coca-Cola Retailing Research Councils of North America for supermarkets and convenience stores, and has nearly 40 years of experience in the food retail industry through his work with trade associations and industry publications.

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