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The Home-Soda Market Heats Up

jota

WATERBURY, Vt. — Shots were fired this week in what will be an interesting showdown between home-soda brewers SodaStream and Keurig Kold.

After months of buildup, Keurig initiated sales of its soda maker this morning to customers on its email-marketing list. For $369.99, those customers can “be the first to experience the power of beverage making,” according to the email. And the company is marketing the soda brewer as nothing short of revolutionary.

“Keurig has redefined the way consumers enjoy coffee and tea in their homes and offices, and today with the launch of Keurig Kold, we’re embarking on a new journey that will change the way consumers enjoy cold beverages at home,” said Brian Kelley, president and CEO of Keurig. The brewers will be available at retail in six cities in early October, with a national rollout to follow in 2016.

Primary competitor SodaStream International, perhaps trying to steal Keurig’s rollout thunder, announced Friday the hiring of a new president for its U.S. operations, beefing up its own team just as the competition launches.

John Sheppard comes to SodaStream with more than 25 years of senior leadership roles and an exceptional track record with some of the world’s largest beverage and consumer goods companies, including Coca-Cola, Cott Corp. and Oneida.

He joins the company as president of SodaStream U.S., overseeing all operations for the brand in the United States. He will report directly to Daniel Birnbaum, chief executive officer of SodaStream.

“We … look forward to seeing [Sheppard] and the team turn around and reignite our business in the United States,” said Birnbaum. “John is passionate, enthusiastic and brings fresh energy to the table. With the beverage business in his blood, John has been impressed with the SodaStream brand since it initially broke into the market. He … will help return the brand to its role as a disruptive player in the beverage industry.”

Perhaps SodaStream’s biggest advantage today is its price point. Its CO2-based soda-makers can be purchased for as little as $50, a seventh of the list price for Keurig Kold, which adds bubbles to its drinks through something it calls a Karbinator.

But for now, Keurig is grabbing the headlines from USA Today to the Wall Street Journal and the New York Times to Time magazine as it touts the big-name brands its machine can make right on your kitchen counter. Bottom line: As one company offers up another new place—right in the home—where consumers can get their carbonated-soft-drink fix, another is gearing up to push its brand hard. Convenience retailers beware.

Author(s): 
Steve Holtz

TA Acquires Additional C-Stores in Missouri, Kansas

jota

WESTLAKE, Ohio — TravelCenters of America LLC (TA) has announced it has completed its previously disclosed acquisitions of convenience stores located throughout Missouri and Kansas, saying “36 stores were acquired today.”

The company did not name the seller or sellers from whom it acquired the locations.

TA has begun to operate all of the acquired stores, it said.

The company said it expects that it will rebrand these 36 convenience stores as Minit Mart convenience stores and the sites will undergo improvements in the coming months.

The acquisition continues TA’s strategy to expand its convenience-store network.

In August, it acquired 21 Thoroughbred Energy-branded c-stores in Kentucky from Traxx Cos. and expects to acquire 13 additional principally leased locations upon the seller satisfying certain closing conditions.

Earlier in August, the company completed its acquisition of 33 c-stores in northern Illinois with the purchase of MKM Oil Co.’s Fast N Fresh chain.

These deals are part of TA’s previously disclosed acquisitions of 124 c-stores for about $230 million in six separate transactions between August and the end of the year, with additional transactions in the works.

“Our convenience-store portfolio will have grown from 34 locations principally in one state at the beginning of the year to over 200 locations in 11 principally Midwest states,” CEO Thomas O’Brien said during the company’s recent earnings call.

TA began its expansion into the convenience-store space when it purchased 31 Minit Mart stores in the Bowling Green, Ky., in 2013 for $67 million.

During first-quarter 2015, TA acquired two travel centers, including one the company previously operated under a management agreement, for $8.4 million, and 26 convenience stores for $38.7 million, in three separate transactions including 19 Best Oil Little Stores, mostly in Minnesota. Additionally, during second-quarter 2015, it acquired 19 convenience stores principally in Kansas and Missouri from Overland Park, Kansas-based GasMart USA for $27 million.

TravelCenters of America is based in Westlake, Ohio, and operates in 43 states and Canada under the Minit Mart, TA and Petro Stopping Centers brands. Its business includes 406 convenience stores, including 256 which are located at travel centers.

RAI Selling Natural American Spirit International Rights to JT Group

jota

WINSTON-SALEM, N.C. — Reynolds American Inc. (RAI) announced today that it will sell the international rights to the Natural American Spirit tobacco brand name and associated trademarks, along with the international companies that distribute and market the brand outside the United States, to the Japan Tobacco Group of companies in an all-cash transaction with a value of approximately $5 billion.

The purchase does not include the rights to the Natural American Spirit brand name and associated trademarks in the U.S. market, U.S. duty-free locations, U.S. territories or in U.S. military outlets, all of which will be retained by Santa Fe Natural Tobacco Co. Inc. Santa Fe is a wholly owned subsidiary of RAI.

The international companies, primarily in Europe and Japan, distribute and market Natural American Spirit additive-free and organic styles of cigarettes and roll-your-own tobacco primarily in European and Asian markets. The brand’s largest markets are Japan, Germany and Switzerland.

The transactions must be approved by regulatory authorities in a number of countries.

Japan Tobacco Inc. is a leading international tobacco company. Its sells its products in more than 120 countries, and its brands include Winston, Camel, Mevius and LD.

Winston-Salem, N.C.-based Reynolds American Inc. is the parent company of R.J. Reynolds Tobacco Co.; Santa Fe Natural Tobacco Co. Inc.; American Snuff Co. LLC; Niconovum USA Inc.; Niconovum AB; and R.J. Reynolds Vapor Co.

R.J. Reynolds Tobacco’s brands include Newport, Camel and Pall Mall cigarettes; American Snuff’s brands include Grizzly and Kodiak smokeless tobacco products; Santa Fe Natural Tobacco manufactures and markets Natural American Spirit 100% additive-free natural tobacco products, including styles made with organic tobacco; Niconovum USA and Niconovum AB market nicotine replacement therapy products in the United States and Sweden, respectively, under the Zonnic brand name; and R.J. Reynolds Vapor manufactures and markets Vuse electronic cigarettes.

Watch for details on CSPnet.com and in CSP Daily News.

RAI Selling Natural American Spirit International Rights to JT Group

jota

WINSTON-SALEM, N.C. — Reynolds American Inc. (RAI) announced today that it will sell the international rights to the Natural American Spirit tobacco brand name and associated trademarks, along with the international companies that distribute and market the brand outside the United States, to the Japan Tobacco Group of companies in an all-cash transaction with a value of approximately $5 billion.

The purchase does not include the rights to the Natural American Spirit brand name and associated trademarks in the U.S. market, U.S. duty-free locations, U.S. territories or in U.S. military outlets, all of which will be retained by Santa Fe Natural Tobacco Co. Inc. Santa Fe is a wholly owned subsidiary of RAI.

The international companies, primarily in Europe and Japan, distribute and market Natural American Spirit additive-free and organic styles of cigarettes and roll-your-own tobacco primarily in European and Asian markets. The brand’s largest markets are Japan, Germany and Switzerland.

The transactions must be approved by regulatory authorities in a number of countries.

Japan Tobacco Inc. is a leading international tobacco company. Its sells its products in more than 120 countries, and its brands include Winston, Camel, Mevius and LD.

Winston-Salem, N.C.-based Reynolds American Inc. is the parent company of R.J. Reynolds Tobacco Co.; Santa Fe Natural Tobacco Co. Inc.; American Snuff Co. LLC; Niconovum USA Inc.; Niconovum AB; and R.J. Reynolds Vapor Co.

R.J. Reynolds Tobacco’s brands include Newport, Camel and Pall Mall cigarettes; American Snuff’s brands include Grizzly and Kodiak smokeless tobacco products; Santa Fe Natural Tobacco manufactures and markets Natural American Spirit 100% additive-free natural tobacco products, including styles made with organic tobacco; Niconovum USA and Niconovum AB market nicotine replacement therapy products in the United States and Sweden, respectively, under the Zonnic brand name; and R.J. Reynolds Vapor manufactures and markets Vuse electronic cigarettes.

Watch for details on CSPnet.com and in CSP Daily News.

Sheetz Goes Back to College

jota

STATE COLLEGE, Pa. — Convenience-store retailer Sheetz Inc. opened its second new restaurant/grocery concept store on September 28 in State College, Pa. This location focuses on the food and beverage and does not offer fuel.

“We are proud to open the second Sheetz restaurant concept at Penn State, my alma mater,” said Ryan Sheetz, Director of Brand for Sheetz. “At Sheetz, we are constantly reinventing ourselves and bringing innovation to our industry. This new restaurant concept is just one example of how Sheetz will continue to push the envelope this year.”

As with the only other fuel-free location companywide, located at West Virginia University in Morgantown, W.Va., this new concept will have a heavy focus on Sheetz’ traditional Made-to-Order (MTO) selections, sandwiches and salads, prepared food and bakery items, and the newly launched Sheetz Bros. Coffee.

The 5,000-square-foot location will be open 24/7, can accommodate 144 people with indoor and outdoor seating and offers a Sheetz “beer cave.”

The Pugh Street store will create 35 to 40 jobs for the area.

During the grand opening event from 11 a.m. to 3 p.m., activities included a ribbon cutting and celebration featuring free self-serve coffee, fountain drinks and samples as well as games, music and prizes. Giveaways include z cards and Sheetz Swag winners with the grand prize of a tailgate package featuring a tent, Yeti cooler, grill and chairs. Additionally, during the week of the grand opening, the company will donate 15% of any menu item ordered on Sheetz’ signature MTO screens, up to $10,000, to Thon, a Penn State student-run fundraising effort aimed at raising awareness for the fight against pediatric cancer.

At 6 p.m. on October 5, Sheetz will present a check to the representatives of Thon, awarding the donations raised from the weeklong grand opening event. Also, the company will announce the winner of the tailgate package and five $100 Z-cards.

To continue the momentum around the opening, Sheetz will launch a Shwipe &d Win campaign that will run from October 9 through November 9. This promotion will give entrants the opportunity to win prizes such as an Xbox, Beats by Dre Headphones‎, Beats Pill Portable Speaker an iPad mini and more. The company will announce a winner every Monday during the contest period.

As with every grand opening, Sheetz will make a donation of $2,500 to Special Olympics Pennsylvania, a cause that is valued by the company and employees.

Altoona, Pa.-based Sheetz is one of America’s fastest growing family-owned and operated convenience store chains, with more than $6.9 billion in revenue and more than 16,000 employees. The company operates more than 500 locations in Pennsylvania, West Virginia, Virginia, Maryland, Ohio and North Carolina.

Spirits Willing, But Spending Dip Expected for Halloween 2015

jota

WASHINGTON — More than 157 million Americans plan to celebrate Halloween this year, according to the National Retail Federation’s Halloween Consumer Spending Survey conducted by Prosper Insights & Analytics. The average person celebrating will spend $74.34, compared with $77.52 last year. Total spending on Halloween is expected to reach $6.9 billion, compared to $7.4 billion last year.

“After a long summer, consumers are eager to embrace fall and all of the celebrations that come with it,” NRF president and CEO Matthew Shay said. “We expect those celebrating Halloween this year will look for several different activities to do with their family and friends. Consumers are ready to take advantage of promotions on candy, decorations and costumes, and retailers are ready to serve them.”

Nine in 10 (93.7%) Halloween shoppers will buy candy, spending a total of $2.1 billion, and an additional 33.5% will buy greeting cards, spending a total of $330 million.

Consumers celebrating Halloween plan to spend an average of $27.33 on costumes for the whole family, and a total of $2.5 billion on store-bought, homemade, large and small costumes. Those celebrating will spend the most on adult costumes ($1.2 billion), and will spend a total of $950 million on children’s costumes and $350 million on fashionable and fun costumes for their furry friends. It’s estimated that 68 million Americans will dress up this Halloween and another 20 million pet owners will dress up their pet.

Two in five celebrants (44.8%) plan to decorate their home or yard, meaning there’s no question consumers will see their fair share of pumpkins, hay bales and even life-size Minions and black cats strewn across their neighborhoods. The average person planning to buy decorations will spend $20.34 with total spending expected to reach $1.9 billion.

When it comes to how consumers plan to celebrate, most will hand out candy (67.8%), or dress in costume (43.5%), though there will be no shortage of jack-o-lanterns lighting up windows this year with 41% of people planning to carve pumpkins. Nearly one-third of consumers (31.5%) plan to throw or attend a party with friends and family.

More consumers have decided to head to stores or shop online early to pick out costumes and decorations. More than one-third of consumers (34.1%) will start their Halloween shopping before the first of October, up slightly from 32.1% last year, while 40.9% will get started in the first half of the month and one-quarter (25%) of celebrants will wait for the final weeks of October.

Similar to past years, the majority of consumers will find inspiration for their costumes online (31.4%) or will head to costume shops and retail stores (26.8%) before they make a final decision. Pinterest continues to grow in popularity among those looking for costume inspiration (13.3%), as this year’s percentage is nearly double the amount who used the site for inspiration just three years ago (7.1%).

Millennials remain the drivers of Pinterest traffic around Halloween though with 24.9% of 18-24 year olds and 23.7% of 25-34 year olds using the site for costume inspiration.

NRF’s 2015 Halloween Consumer Spending Survey was designed to gauge consumer behavior and shopping trends related to Halloween spending. The survey was conducted for NRF by Prosper Insights & Analytics. The poll of 6,754 consumers was conducted September 1-8, 2015. The consumer poll has a margin of error of plus or minus 1.3 percentage points.

Click here for the data.

Spirits Willing, But Spending Dip Expected for Halloween 2015

jota

WASHINGTON — More than 157 million Americans plan to celebrate Halloween this year, according to the National Retail Federation’s Halloween Consumer Spending Survey conducted by Prosper Insights & Analytics. The average person celebrating will spend $74.34, compared with $77.52 last year. Total spending on Halloween is expected to reach $6.9 billion, compared to $7.4 billion last year.

“After a long summer, consumers are eager to embrace fall and all of the celebrations that come with it,” NRF president and CEO Matthew Shay said. “We expect those celebrating Halloween this year will look for several different activities to do with their family and friends. Consumers are ready to take advantage of promotions on candy, decorations and costumes, and retailers are ready to serve them.”

Nine in 10 (93.7%) Halloween shoppers will buy candy, spending a total of $2.1 billion, and an additional 33.5% will buy greeting cards, spending a total of $330 million.

Consumers celebrating Halloween plan to spend an average of $27.33 on costumes for the whole family, and a total of $2.5 billion on store-bought, homemade, large and small costumes. Those celebrating will spend the most on adult costumes ($1.2 billion), and will spend a total of $950 million on children’s costumes and $350 million on fashionable and fun costumes for their furry friends. It’s estimated that 68 million Americans will dress up this Halloween and another 20 million pet owners will dress up their pet.

Two in five celebrants (44.8%) plan to decorate their home or yard, meaning there’s no question consumers will see their fair share of pumpkins, hay bales and even life-size Minions and black cats strewn across their neighborhoods. The average person planning to buy decorations will spend $20.34 with total spending expected to reach $1.9 billion.

When it comes to how consumers plan to celebrate, most will hand out candy (67.8%), or dress in costume (43.5%), though there will be no shortage of jack-o-lanterns lighting up windows this year with 41% of people planning to carve pumpkins. Nearly one-third of consumers (31.5%) plan to throw or attend a party with friends and family.

More consumers have decided to head to stores or shop online early to pick out costumes and decorations. More than one-third of consumers (34.1%) will start their Halloween shopping before the first of October, up slightly from 32.1% last year, while 40.9% will get started in the first half of the month and one-quarter (25%) of celebrants will wait for the final weeks of October.

Similar to past years, the majority of consumers will find inspiration for their costumes online (31.4%) or will head to costume shops and retail stores (26.8%) before they make a final decision. Pinterest continues to grow in popularity among those looking for costume inspiration (13.3%), as this year’s percentage is nearly double the amount who used the site for inspiration just three years ago (7.1%).

Millennials remain the drivers of Pinterest traffic around Halloween though with 24.9% of 18-24 year olds and 23.7% of 25-34 year olds using the site for costume inspiration.

NRF’s 2015 Halloween Consumer Spending Survey was designed to gauge consumer behavior and shopping trends related to Halloween spending. The survey was conducted for NRF by Prosper Insights & Analytics. The poll of 6,754 consumers was conducted September 1-8, 2015. The consumer poll has a margin of error of plus or minus 1.3 percentage points.

Click here for the data.

Space Constraints: Be Gone

jota

Brought to you by Curtis Coffee Equipment.

OAKBROOK TERRACE, Ill. — It’s no secret that most convenience retailers are pressed for counter space. But that shouldn’t be a barrier to what could potentially be a major revenue boost. Thanks to modern technology, c-stores can expand their cold-beverage selections as more consumers step away from soda and look for other options.

Consumer consumption of iced coffee and tea is trending, according to Donna Hood Crecca, senior director at research firm Technomic. The share of consumers buying fountain drinks and iced tea in convenience stores for lunch and dinner dayparts has increased from 2013, with a 23% increase for fountain drinks and 27% for tea.

Tea in particular has grown in popularity. “The advent of flavored iced teas, organics and naturally sweetened selections, as well as the new sparkling teas, is drawing additional attention to the category,” said Crecca.

Additionally, the United States has embraced the cold-coffee trend more than most countries, especially in foodservice, according to recent Mintel research. Restaurants and coffeehouses jump-started the trend in 2012, when shares of cold coffee on menus had increased 22%. Now, iced coffee and tea have transcended a summer-only appeal, particularly as consumers look to widen their variety of cold beverages.

“The fact that so many consumers feel that coffee makes them more productive at work explains why energy drinks and shots have been such a huge growth market, appealing to people’s desire to have more than just a tasty and refreshing drink but one which actually alters their mood,” Jonny Forsyth, global drinks analyst at Mintel, has said. Iced coffee and tea has just as much appeal as a chilled, easy-to-drink beverage.

For c-stores wanting to bump up their iced-tea and iced-coffee offerings even with limited space, the good news is there are equipment and solutions out there to help.

Modern technology has paved the way for brewing iced tea and coffee in one compact dual-brewing machine to save space. Curtis Coffee Equipment’s machine uses G3 technology, for example, which brews coffee or iced coffee and tea in two separate containers at the same time using a shared programming control pad. Coffee is brewed straight for hot or cold consumption, while tea is brewed as a concentrate and then diluted with water before dispensing.

Machines can be programmed for a full or half brew during less busy times when beverages need refreshing. The save mode automatically activates when the brewer is idle.

Operators looking to save shelf space on packaged iced-tea products, however, and offer an in-house brewed iced tea can use the “tuneability” function through two separate precision valves to fine-tune and adjust tea concentration for regular, tropical, sweet and other tea flavors.

While the dual tea and coffee machine might not be suitable for regular coffee production at higher volume stores, the smaller unit can help brew fresh iced tea and coffee during off-peak hours or as part of a late-night program.

MotoMart Upgrades Network With Acumera

jota

BELLEVILLE, Ill. — MotoMart convenience stores has completed the rollout of technology provider Acumera’s C-Store Connections package.

Part of family-owned FKG Oil Co., MotoMart is based in Belleville, Ill., and operates 78 convenience stores in six states in the Midwest: Illinois, Missouri, Indiana, Ohio, Wisconsin and Minnesota. According to Matt Mueller, systems administrator of MotoMart, the company engaged Acumera to enhance network reliability and uptime and improve remote support services.

“Reliable and secure connectivity for payment card processing is a critical part of our business, and PCI compliance is more important than ever before,” said Mueller. “Acumera not only helps ensure security with its PCI Tools solution, but also delivers the dependable connections and troubleshooting services we need to keep our operations running smoothly.”

The C-Store Connections package is a comprehensive network management solution designed specifically for the needs of multi-site convenience store operators. It includes integration of the Acumera Merchant Gateway perimeter security device at each site, as well as access to the AcuVigil dashboard and Apps for Your Network services.

In addition to the C-Store Connections package, MotoMart is implementing the Dual WAN Failover app, which provides high availability wide area network (WAN) connectivity for convenience stores by automatically switching to a secondary connection whenever occasional interruptions in the primary connection occur.

“In order for convenience stores to maximize uptime and revenue, they need a solid backup system,” said Tom Yemington, Acumera’s vice president of sales and marketing. “The Dual WAN Failover app gives MotoMart the backup solution needed to reduce equipment downtime and maintain visibility at all locations.”

Austin, Texas-based Acumera is a leading provider of trusted connections services for convenience stores, gas stations and petroleum wholesalers. Its network management services, tools and applications give multi-site retailers security, visibility and connectivity to support operations management.

How Foodservice Can Digest New Technology

jota

WASHINGTON — With technology poised to reinvent everything from food ordering to customer-staff interaction, an executive-level panel at the opening general session of Winsight’s FSTEC conference discussed the challenges and opportunities facing the foodservice industry.

Assembled with multiple departments in mind, executives representing roles such as CEO, marketing, operations, information technology (IT) and human resources squared off on topics ranging from integration to customer relationship management (CRM) at the annual FSTEC foodservice technology conference.

“We’re drowning in data and starving for meaning,” said Burton Heiss, CEO, Nando’s USA, Johannesburg, South Africa, noting how information doesn’t necessarily provide foodservice operators direction. “The challenge is the accelerating rate of change [in technology] both on a consumer standpoint and internally. It’s about establishing priorities to achieve a greater vision.”

With a discussion landing on Seattle-based Starbucks and its new food-ordering and pickup app feature, Heiss, whose restaurant chain focuses on South African “peri-peri” chicken, said operators have yet to determine what customers will really respond to regarding technology, with a dangerous pitfall being investing in something they won’t use.

To that end, Trip Sessions, senior vice president and chief digital and technology officer for TGI Friday’s, Exton, Pa., said a challenge foodservice operators face is being able to integrate third-party data with what an operator is able to collect at the point-of-sale (POS). Oftentimes, legacy systems and processes are barriers to “matching up” with other data resources to discover richer insight.

The panel also talked about what technology challenges concerned them the most. These topics included:

  • Engaging staff internally using the latest in hiring, “onboarding,” scheduling and e-learning applications.

  • How customers engage the brand, from learning about menu offers to reviewing the food.

  • Executing new technologies, with issues ranging from developing the proper consumer interfaces to integration with current IT platforms.

  • Working with payments, everything from data security to new types of cards.

  • Developing and experience that leads to customer “stickiness.”

In a discussion about strategy, Bonnie Lippincott, vice president and COO, The Rose Group, Newtown, Pa., said one of the biggest challenges operators face is engaging their IT teams in the development process. “It seems IT is always brought into the process too late,” she told the audience of about 350 attendees. “It’s one of the biggest challenges, because IT has to make it work.”

Author(s): 
Angel Abcede

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