Vape Persists Amidst Regulations

JOSHUA WOLFE, 36

Chief Financial Officer

Company: Two Farms Inc.

C-Store Chain Name: Royal Farms

Headquarters: Baltimore

Number of Stores: 260 Years With the Company: 8

Joshua Wolfe has spent the past eight years with Royal Farms. He is responsible for the accounting and finance department at the Baltimore-based company.

After graduating from Elizabethtown College, Wolfe began his career in assurance services at Ernst & Young and obtained his CPA license. Six years later he left the firm as an audit manager and became the director of finance at Royal Farms. He was promoted to chief financial officer in 2019. He has enjoyed building and working with a team of talented people over the last several years.

What is the biggest challenge for young executives today?

"One of the biggest challenges of the last year or two involves finding and retaining talent while adapting to the new post-COVID normal of hybrid and remote work. Everyone has different perspectives, preferences and expectations when it comes to finding the right balance of flexibility while maintaining a productive and efficient team."

HUSSEIN YATIM, 31

Vice President

Company: Yatco C-Store Chain Name: Yatco Headquarters: Marlborough, Mass. Number of Stores: 20 Years With the Company: 2

Hussein Yatim is a second-generation member of his family business. As a teenager, he worked in the stores doing everything from mopping floors to running the cash register. However, once he graduated from college, Yatim did not begin his career in convenience stores. Instead, he became an engineer and worked in the medical device industry for a decade. His career as an engineer enabled him to bring a variety of skills to Yatco in terms of problem solving, innovating and thinking outside the box. Today he’s the vice president of Yatco.

What does your current role entail? “As vice president of Yatco my role entails overseeing our marketing initiatives, including our Yatco Reward loyalty program. I also lead efforts for the company’s strategic growth; this includes new-to-industry store design concepts and new store builds. I work with our operations team to help bring new technologies to our sites.”

MARAT YESHCHIN, 38

Category Manager, Packaged Beverages & Alcohol

Company: Vintners Distributors C-Store Chain Name: Loop Neighborhood Markets Headquarters: Fremont, Calif. Number of Stores: 132 Years With the Company: 9

Marat Yeshchin began his career in the c-store industry in corporate operations with 7-Eleven Inc. Shortly after, he took a position as district manager with Loop Neighborhood as the company was opening its third location. After four years in operations, Yeshchin was promoted to category management and has been responsible for various categories. Today as category manager, packaged beverages and alcohol, he is responsible for keeping up with category innovation, assortment and trends through market research and data analytics. In addition, strategic promotional planning, contract negotiations and brand partnerships are crucial to maintaining and increasing profits. In 2023, Yeshchin looks forward to the chain expanding its private-label options.

What is the most challenging issue facing young execu-

tives today? “The most challenging issues facing young executives today are the frequent changes in costs due to supply chain constraints, raw material shortages and overall inflation.”

THE MOST AWAITED C-STORE EVENT OF THE YEAR!

SUNDAY, MARCH 26

1:00 PM – 7:30 PM Registration 4:00 PM – 5:00 PM NAG/YEO Board Meeting 6:00 PM – 7:00 PM NAG Networking Reception 7:00 PM – 10:00 PM NAG Opening Night Dinner

MONDAY, MARCH 27

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

Speakers:

Vernon Young, President | Young Oil Co. John Lofstock, Executive Director | NAG

8:15 AM – 9:15 AM GENERAL SESSION: BURNING ISSUE #1: Developing and Refi ning Your Corporate Culture

Strategy and culture are among the most important responsibilities for leaders in the workplace as they focus on the never-ending quest to maintain e ectiveness. Strategy o ers a formal logic for the company’s goals, and culture expresses these goals through values and beliefs. A strong company culture instantly refl ects the values of a company, its leaders and its employees. What values defi ne your company? What matters most to you and your employees? In this session, retailers will discuss the intense amount of work it takes to develop and maintain an outstanding culture in the convenience store industry and the communities they serve.

March 26-29, 2023

JW MARRIOTT AUSTIN

9:15 AM – 9:45 AM Networking Break

9:45 AM – 10:45 AM GENERAL SESSION: BURNING ISSUE #2: Understanding Foodservice Customers: Forecasting Future Demand

Sta scheduling, inventory management, menu analysis, guest satisfaction, profi tability and so much more rest on the shoulders of accurate foodservice forecasting. Understanding the foodservice market is more important than ever as store trips are forecasted to drop and third-party delivery services are gaining more traction. This session will examine how customers currently purchase food, what they are looking for and what the convenience store industry can expect over the next three years.

10:45 AM – 11:00 AM Networking Break 11:00 AM – 12:30 AM Information Exchanges Part 1 12:30 PM – 1:30 PM Lunch 1:00 PM – 5:00 PM Free Time/YEO Networking 1:30 PM – 6:30 PM NAG Retail Store Tours

Exploring the Best Retail Concepts in Austin

6:30 PM – 9:00 PM Dinner on Your Own to Explore Austin

8:00 AM – 9:00 AM GENERAL SESSION: BURNING ISSUE #3: Exclusive NAG Research: The Convenience Experience Report

The National Advisory Group (NAG) has partnered with Bluedot to learn exactly what Americans think about convenience stores and quick-service restaurants (QSRs) today, and what drives their behavior, sentiment and loyalty. These fi ndings will be presented for the fi rst time at NAG and o er a glimpse into the current customer experience, how digital and mobile solutions infl uence customers, as well as expectations for the convenience stores of the future across key categories, such as foodservice, fuel, snacking and tobacco.

Speaker:

• John Lofstock, Executive Director | NAG • Judy Chan, Vice President of Marketing | Bluedot

9:00 AM – 9:30 AM Networking Break

9:30 AM – 10:30 AM GENERAL SESSION: BURNING ISSUE #4: Developing Your Long-Term Fuel Strategy

The future of convenience stores is being reshaped by the increasing integration of electric vehicles and other alternative fuels. How long it takes for these fueling methods to a ect your business depends on where you live. In this session, hear from leading authorities on how your forecourt will evolve over the next fi ve years and what steps you can take now when building new stores to be ready for future changes.

10:30 AM – 11:00 AM Networking Break 11:00 AM – 12:15 AM Information Exchanges Part 2

1. Micro Stores, Food Trucks and NonTraditional Locations 2. Human Resources: Attracting Top Talent 3. Tobacco, CBD and Cannabis in C-Stores 4. Foodservice: Diversifying the Menu 5. Leadership for Young Executives 6. Foodservice: What Retail Leaders Are Doing From Apps to Delivery 7. Growing Loyalty and AI Programs 8. Buying, Selling and Financing Options

12:15 PM – 1:15 PM Lunch

1:15 PM – 2:15 PM GENERAL SESSION: BURNING ISSUE #5: Connecting Next-Generation Loyalty, Payments and POS Systems

A number of next-generation technologies are converging, including loyalty, payments and point-of-sale (POS) systems. At the intersection, retailers expect a better, di erentiated customer experience and returns to the bottom line. These technologies are enabling hyper-personalized customer experiences, seamless payments, mobile ordering, selfcheckout and other benefi ts. How are c-stores combining these technologies? What are the expectations for increased store operating profi t? Our panel of distinguished retailers will answer these questions and more.

2:30 PM – 2:45 PM Networking Break

2:45 PM – 4:00 PM YEO BREAKOUT SESSION: Getting Involved: Why Young Executives Need Political Relationships

All politics are local, and for convenience store operators, that means having a personal relationship with the legislators who can enact laws that a ect your businesses. These relationships can be complicated and di cult to develop, but they are vital for the c-store industry. Young leaders should be working on these relationships, but they need advice that’s realistic, granular and nuanced when it comes to making political connections. In this exclusive Young Executives Organization (YEO) workshop, hear what you can do to build political relationships and mentor young leaders who are beginning to journey into the cut-throat world of politics.

WEDNESDAY, MARCH 29 8:00 AM – 9:00 AM WORKING BREAKFAST: NAG Custom Research. The Impact of Digital Programs on Convenience Store Foodservice Sales and Consumer Loyalty

Digital has transformed foodservice, reframing customer expectations at convenience stores, restaurants and beyond. How are c-store retailers maintaining their food base and standing out with digital tools and promotions? Based on custom research fi elded for the NAG audience, we will explore how consumers are utilizing digital platforms to engage with c-stores. We’ll uncover ordering and delivery trends as well as the impact on basket size and customer loyalty. Our retailer panel will explore various data points and share insights on how they plan to adapt to customer expectations.

9:15 AM – 10:15 AM GENERAL SESSION: BURNING ISSUE #6: Private-Label Product Branding

The convenience store industry is seeing a rapid rise in private-label branding across all categories. Private labels are often cheaper than national brands, which is a solid selling point as fi nancially strained consumers tighten their purse strings. Two advantages — high availability and low price — have also made private-label products considerably more appealing to consumers during the COVID-19 pandemic. The shift toward private labels also benefi ts retailers, since these products are typically more profi table for them. Furthermore, high-quality private labels can gain a devoted following and become a powerful driver of customer loyalty. In this session hear from three leading retailers on why they are continuing to develop and expand private-label products.

10:15 AM – 10:30 AM Networking Break

10:45 AM – 11:30 AM IDEAS BOOT CAMP

Best practices and a conference wrap up

Speakers:

John Lofstock, Executive Director | NAG Brian Unrue, Director of Operations | Clarks Pump-n-Shop

11:30 AM Conference Wrap-Up and Takeaways 12:00 PM Departures

VAPE PERSISTS AMIDST REGULATIONS

As vape manufacturers fight back against unfavorable Federal Drug Administration rulings, retailers continue to wait for definitive outcomes for the category’s products, stocking what sells in the meantime.

Emily Boes • Associate Editor

Although vape is looking to be a challenging segment of the tobacco category as the Federal Drug Administration (FDA) continues to issue responses to the various Pre-Market Tobacco Applications (PMTAs) submitted, customers are still fl ocking to stores in search of their favorite vaping devices.

NATURAL CAFFEINE

Vape Sales Slow

Vape unit sales decreased across the board, while disposable vape saw a 2.4% rise in dollar sales from August 2022 to October 2022 compared to August 2021 through October 2021, according to National Retail Solutions (NRS).

Category

$ % Change $ Share of Category Unit % Change Top Purchase No. 1 Top Purchase No. 2 Top Purchase No. 3

Disposable

Refills Kits Chargers

2.4% 72.6 -7.3% Energy Beverages -3.7% 26.3 -9.9% Cigarettes -16.0% 1.1 -21.9% Cigarettes -38.6% 0.0 -38.7% Cigarettes Cigarettes

Beer Beer FMB/Cider

Total Tobacco Alternatives Vapor 0.5% -8.2% Cigarettes

Energy Beverages

Source: National Retail Solutions (NRS) scan data of 8,597 stores selling tobacco alternatives vapor. All change measures are same-store sales (4,813 stores) Aug. 1, 2022-Oct. 31, 2022 vs. Aug. 1, 2021-Oct. 31, 2021 Cigars

FMB/Cider FMB/Cider Beer Soft Drinks

For the 52 weeks ending Oct. 2, 2022, electronic smoking devices increased in dollar sales in the U.S. convenience channel by 13.2% to $6.87 billion, according to IRI, a Chicago-based market research firm. Unit sales, however, stayed relatively flat with only a 1% decrease. The jump in dollar sales is likely due to the price per unit rising by almost $2.

Still, convenience store retailers await the FDA’s final decisions regarding the PMTAs that were submitted by Sept. 9, 2020, for products made from tobacco, and by May 14, 2022, for products with nicotine derived from a source other than tobacco. Out of the 1 million applications for non-tobaccoderived or synthetic nicotine products, as of Oct. 7, 2022, more than 1,600 were accepted, most being for e-cigarette or e-liquid products. Refuse to Accept (RTA) letters were issued for more than 889,000 applications.

On Oct. 26, 2022, FDA issued Marketing Denial Orders (MDOs) for several of Logic Technology Development LLC’s e-cigarette products. These include the Logic Pro Menthol e-Liquid Package