Craveable and flavorful drinks can set convenience-store menus apart, and consumers and operators agree that beverage innovation is a must. In fact, convenience operators that prioritize beverages are seeing a return on their investment: There’s been a 13% jump in the percentage of consumers who frequently visit c-stores for a beverage during snack occasions, according to Technomic. Here is a look at some recent retail and restaurant drink rollouts that hit on key trends, as well as insights on what’s driving consumers to buy more beverages.

WASHINGTON — Scott Gottlieb, the U.S. Food and Drug Administration’s new commissioner, said he envisions “a world where cigarettes would no longer create or sustain addiction, and where adults who still need or want nicotine could get it from alternative and less harmful sources.” That, he said, is the “cornerstone” of the FDA’s new effort to reduce cigarette use in the United States while consciously shifting smokers to electronic cigarettes.

As part of its new regulatory program announced July 28, the FDA will begin a public dialogue about lowering nicotine levels in combustible cigarettes to nonaddictive levels. It will issue an Advance Notice of Proposed Rulemaking (ANPRM) to seek input on the potential public health benefits and any possible adverse effects of lowering nicotine in cigarettes.

Furthermore, the FDA has declared its commitment to innovations that could lead to less harmful products.

“We need to make sure we strike the right balance between FDA fulfilling its vital consumer protection role while also fostering innovation when it comes to potentially less harmful forms of nicotine delivery,” Gottlieb said.

To do this, the agency intends to extend timelines to submit tobacco product review applications for newly regulated tobacco products that were on the market as of Aug. 8, 2016. Under the expected revised timelines, applications to market newly regulated combustible products, such as cigars, pipe tobacco and hookah tobacco, would be submitted by Aug. 8, 2021, and applications to market newly regulated noncombustible products, such as electronic nicotine delivery systems (ENDS) or e-cigarettes, would be submitted by Aug. 8, 2022.

All other compliance deadlines for manufacturers will remain the same, and the anticipated new enforcement policy does not affect any current requirements for cigarettes and smokeless tobacco—only the newly regulated tobacco products such as cigars and e-cigarettes.

In order to further explore how best to protect public health in the evolving tobacco marketplace, the FDA intends to issue ANPRMs to seek public comment on the role that flavors in tobacco products (including menthol) play in attracting youth, as well as the role they may play in helping some smokers switch to potentially less harmful forms of nicotine delivery; and solicit additional comments and scientific data related to the patterns of use and resulting public health impacts from premium cigars.

“Public input on these complex issues will help ensure the agency has the proper science-based policies in place to meaningfully reduce the harms caused by tobacco use,” said Mitch Zeller, director of the FDA’s Center for Tobacco Products.

To complement these larger policy considerations, the FDA plans to issue foundational rules to make the product review process more efficient, predictable and transparent for manufacturers. It will issue regulations outlining what information the agency expects to be included in premarket tobacco applications (PMTAs), modified risk tobacco product (MRTP) applications, and reports to demonstrate substantial equivalence (SE). The FDA also plans to finalize guidance on how it intends to review PMTAs for ENDS.

Gottlieb was confirmed as commissioner of the FDA on May 9.

WASHINGTON — The U.S. Food and Drug Administration (FDA) aims to reduce nicotine levels in cigarettes while exploring measures to shift smokers toward e-cigarettes in a major new regulatory program announced by FDA Commissioner Scott Gottlieb on July 28.

The FDA said it would extend the timeline for newly regulated products, including e-cigarettes, to submit applications for approval and allow existing products that were on the market as of Aug. 8, 2016, to remain on the market, a boon for e-cigarette manufacturers.

The news sent stocks of combustible-cigarette companies plunging, according to a Reuters report.

Watch for details on CSP Daily News.

DENVER — It’s a bird! It’s a plane! It’s a … gum-laden jetpack?

Denver-based Apollo Energy Gum has recently been making some deliveries via an 800-horsepower jetpack, surprising retailers, customers and curious onlookers alike when touching down at locations such as a 7-Eleven store and Union Station in downtown Denver.

The company partnered with Apollo Flight Labs, also of Denver, on a project it says is “the future of clean, fast-acting energy with the world’s first jetpack delivery service.”

Apollo’s Energy Gum is sugarless and contains 80 milligrams of caffeine, promising a healthy, portable energy boost.

Apollo Flight Labs pilots Nick Macomber and Eric Scott are responsible for flying the Apollo jetpacks, which are propelled by steam and oxygen, producing no flame or carbon exhaust. Upon landing, the pilot removes a box of Apollo gum from a special harness and hands it to the customer.

The company said the service is a “more cutting-edge” version of Amazon’s drone-delivery service, which is still under development.

Not all of Apollo’s deliveries are made via jetpack. “As we add more chains and distributors and build more jetpacks, we will definitely plan more and more delivery flights,” said Ryan Darling, digital marketing manager for Apollo.

Though the deliveries are currently limited to Denver, Apollo plans to launch a worldwide tour of the deliveries to promote the gum.

YORK, Pa. — Retailer Rutter’s Farm Stores, York, Pa., has partnered with Restaurant Technologies to install the company’s Total Oil Management system in 55 of the chain’s convenience stores. The oil-management solution will be used in all stores that offer fried foods and installed in Rutter’s new stores going forward.

“The Total Oil Management system has completely transformed the way we manage oil,” said Ryan Krebs, Rutter’s director of foodservice. “It eliminates the need for our employees to manually handle fryer oil at any point in the process. This modernizes our operations and greatly boosts our labor efficiencies, allowing staff to focus on the customer and more productive tasks.”

Previously, Rutter’s manually managed fryer oil by shuttling 35-pound jugs of hot, used oil to a rendering tank located outside of each facility, and pouring equally heavy jugs of new oil into the hot fryer. According to the company, this process was causing labor inefficiencies in the convenience store’s standard operating procedures and raised employee safety concerns.

Rutter’s ran a 60-day test of the oil management system in three locations; the new system reduced the chain’s oil usage in these units by about 15%. Additionally, Rutter’s managers reported improvement and consistency in food quality due to the system’s requirement to filter the oil every day for a minimum of 5 minutes—ensuring that the oil is cleaner and fresher.

Rutter’s also reported that automated oil management has helped the chain maintain a cleaner facility in the test stores, since oil spills have been eliminated.

“The increased demands for quality, on-the-go meal options has accelerated the adoption of the Total Oil Management system across the c-store segment,” said Kevin Thorne, national sales executive for Restaurant Technologies. “It’s an honor to support Rutter’s as they continue to improve their fried-food quality and operational efficiency to meet consumers’ expectations.”

Mendota Heights, Minn.-based Restaurant Technologies is a provider of cooking-oil management and back-of-house exhaust cleaning solutions to more than 25,000 national quick-service and full-service restaurant chains, independent restaurants, grocery delis, hotels, casinos, universities and hospitals.

CHICAGO — Krispy Krunchy Chicken has been a convenience-store success story, quietly growing its quick-service-restaurant base in c-stores across the country since 1989. But it looks like Krispy Krunchy is spreading its wings beyond the c-store segment—at least in terms of its reputation.

In a recent feature, Thrillist.com told its readers, “You probably haven’t heard of America’s best fried chicken chain,” and described Krispy Krunchy Chicken (KKC) as “America’s best-kept fast-food secret.”

Writer Ryan Joseph called out Krispy Krunchy’s distinctive flavor profile as the characteristic that sets its chicken apart from others in its competitive set:

“The 28-year-old company might not be as recognizable as Popeyes, but make no mistake: Its poultry can hold its own against the industry standard-bearer,” Joseph wrote. “Both chains specialize in Cajun-style chicken (which is heavily spiced, breaded and flavorful) from Louisiana; but Krispy Krunchy Chicken’s perfectly seasoned and juicy pieces might be the most underrated item in fast food today. While that declaration might sound sacrilegious, KKC’s chicken is expertly balanced with the right amount of garlic, paprika and black pepper. The golden exoskeleton on KKC’s pieces has an airy flakiness and a sturdy architecture that never crumbles, all thanks to the aforementioned spice blend.”

Joseph also touted the uniqueness of Krispy Krunchy’s sides, which stand out from the conventional accompaniments that are typically available at major chicken QSRs. In addition to traditional favorites such as macaroni and cheese and biscuits, the menu also features rice-and-pork-stuffed boudin bites, jambalaya, peach cobbler, sweet potato pie and even breakfast empanadas filled with egg and chorizo.

Krispy Krunchy is also lauded for the consistency of its product across locations in its system, as the chain requires all operators to use Tyson chicken products as well as its proprietary marinade.

Prominent foodies, such as former “Top Chef” contestant and New York restaurateur Dale Talde and Cleveland chef Jeremy Umansky, also sing the praises of the Louisiana-based chain’s chicken in the article. Joseph refers to KKC superfans as “obsessed.”

“The first time I had it was in Brooklyn,” Talde said, adding he now frequents a location in Miami. “I go there every time that I’m in Miami, and I’m in Miami once per month.”

“If someone visited me from overseas and never had American fried chicken, Krispy Krunchy Chicken would be my introductory fried chicken,” said Umanksy. “[This would] give them an idea about what fried chicken is truly like in America. They’re just doing it right.”

While Krispy Krunchy boasts 2,200 locations in 41 states, compared to Popeye’s 2,700 units worldwide, Joseph attributes KKC’s under-the-radar status to the fact that it is positioned inside travel plazas, traditional c-stores and gas stations. Krispy Krunchy also doesn’t advertise much, meaning that its aficionados are guided by trial and word-of-mouth.

Allison Shapiro, director of technology and communications for KKC, told Thrillist that the company is currently focused on ramping up its digital marketing outreach, which should drive brand visibility among consumer audiences that may be unaware of KKC.

And the time may be just right for Krispy Krunchy to make its move; by increasingly selling its quality story, the chain could be well-positioned to draw the millennial consumer who’s most likely to visit c-store foodservice for low-priced, yet high-quality, meals and snacks.

How long will it be before one of our industry’s best-kept secrets becomes the next big thing?

IRVINE, Calif. — Longtime convenience-store supplier representative Tony Gaines will bring his experience to Advantage Solutions, where he will be senior vice president of sales beginning July 31.

Gaines has more than 25 years of industry experience at c-store-facing companies including Logic Technologies, Anheuser-Busch and E&J Gallo Wine Co. Most recently, he was vice president of sales for the Logic business unit of Japan Tobacco Inc., where he was responsible for overseeing sales and customer management. Gaines is also an active member of the NACSPAC Committee, has served on the NACS Supplier Board and was a co-chair of Winsight’s Outlook Leadership conference.

“I am excited at the new chapter in my life as this new position meets a trifecta of my passions,” Gaines said, “working with multiple manufacturers on growing their business, being a strategic partner with convenience, drug and dollar stores on improving traffic count and in-stocks, as well as the ability to move back home to Arizona with my family support system.”

Gaines will lead Advantage’s small-format business, working from Arizona. He will report to Michael O’Keefe, president of sales for Advantage Solutions.

“We are thrilled to welcome Tony to Advantage,” the company said in a press release. “We look forward to gaining from the extensive experience and deep domain expertise that Tony has developed in the industry. We are confident that he will contribute to the overall success of the Advantage Solutions enterprise.”

Irvine, Calif.-based Advantage Solutions, a national sales and marketing agency, was formed in October 1997. Today, the company represents more than 1,200 clients. The combined operations of Advantage Solutions have a revenue base that exceeds $700 million with an associate base of more than 12,900 people. Some of the company’s top clients include SC Johnson, Unilever, Quaker/Tropicana/Gatorade, Schering Plough Health Care, GlaxoSmithKline, Church & Dwight and Del Monte.

Brought to you by Growth Energy.

As drivers shifted into gear this summer and hit the open road, they probably headed to the gas station to fill up the tank. For some, that means one thing—pumping E15 fuel into their vehicles.

A better selection, a better value

Sheetz, a chain of convenience stores based in Altoona, Pa., with locations in Kentucky, Maryland, North Carolina, Ohio, Pennsylvania, Virginia and West Virginia, is currently the largest retailer of E15 fuel. According to Mike Lorenz, executive vice president of petroleum supply for Sheetz, the decision to add E15 gas to Sheetz locations had to do with offering consumers more choice.

“We have an amazing selection of made-to-order food, ready-to-eat food, snacks and beverages to choose from inside the store, so we thought it was time we improved our offers on the forecourt as well,” Lorenz says.

But it wasn’t just choice—it was also about offering a good value to consumers. “We like that we can sell it for less than 87 gas,” Lorenz says. “The consumer is very price-sensitive. As little as 3 cents a gallon can change their buying behavior, so we’re currently selling it for 5 cents less than 87.”

Educating consumers, expanding offerings

Not all consumers know what E15 fuel is yet, or have heard of its benefits, but the good news is that knowledge and buzz surrounding the higher octane fuel is spreading, thanks in part to its wider availability at gas stations and c-stores. This increase in availability comes at an ideal time—E15 is now approved for use in vehicles with a model year of 2001 or later, which amounts to about 90% of vehicles on the road today.

But when it comes to attracting more buyers, Lorenz says that the biggest challenge is educating them about the benefits that E15 offers. “It’s cheaper, it’s cleaner burning, it’s higher octane, which is better performing,” he says. By offering it at more locations, Sheetz can spread the information to more consumers.

Making it available to the consumer at a location that’s at least relatively close to them has been a priority for Sheetz, says Lorenz. The retailer held off on marketing E15 fuel, noting that a concern until recently had been its limited availability. Nowadays, though, E15 fuel is offered at several chains of c-stores across the United States, but Sheetz is the top seller—E15 fuel is available at more than 190 Sheetz locations in five states. If consumers are looking for it in their towns, it seems it’s only a matter of time.

BATESVILLE, Miss. — Graves Oil Co. has purchased AIMS Inc.’s COMPAS Commander accounting software. AIMS will provide Graves with a comprehensive accounting solution that includes process automation.

“In today’s market you have to stay ahead of the game,” said Kenny Hopper, treasurer of Graves Oil Co. “With technology changing every day, we realized that we had to make a change with our fuel and accounting software. After several months of looking at different software companies, we chose AIMS’ Commander accounting software. I believe both Commander and the people of AIMS will help our company continue to move forward for many years down the road. They are down-to-earth folks and have been very helpful and friendly.”

“We appreciate the extensive software analysis that Kenny conducted and are delighted that he selected AIMS as his accounting software vendor,” said David Dorries, director of sales and marketing of AIMS.

Batesville, Miss.-based Graves Oil Co. owns and operates gas and fuel stations with convenience stores. The company also provides oil-well drilling services.

Monroe, La.-based AIMS develops and markets a top-tier accounting software solution, COMPAS Commander, for the wholesale petroleum-marketing industry. Sophisticated process-automation modules interface directly with Commander’s Core System to deliver increased office efficiency and productivity. Commander’s integrated but modular design allows wholesale marketers to select functionality that meets their exact needs and budget, regardless of their business size.

WEST DES MOINES, Iowa — Supermarket and convenience-store chain Hy-Vee Inc. will open a larger-than-usual c-store in Lakeview, Minn.

At approximately 8,800 square feet, the new store will be much bigger than traditional convenience stores, which range from 1,500 to 5,000 square feet. When the company first announced the concept store earlier this year, it said the store would be between 10,000 to 15,000 square feet.

The store will be 3 miles from Hy-Vee’s 91,000-square-foot Lakeville supermarket, according to a report by the Pioneer Press.

West Des Moines, Iowa-based Hy-Vee operates more than 140 c-stores with fuel in the parking lots of its grocery stores.

• Hy-Vee Gas is No. 49 on CSP’s Top 202 c-store chain ranking for 2017.

“It’s a new concept,” Phil Hoey, director of real estate for Hy-Vee, said at the Lakeville City Council meeting on July 17. “It’s a very fresh convenience store with coffee.”

It features a Starbucks with a drive-thru and a “miniature” Market Grille, as well as produce, prepared meals and a meat department.

He explained Hy-Vee’s strategy with the concept: “What we’re trying to do with this concept is meet the needs of those folks who live busy lives, their kids are involved in extracurricular activities, and preparing meals at home is maybe a challenge for them. So they can come here, pick up a healthy prepared meal, pick up some fresh produce, pick up their milk, pick up their eggs, pick up a pound of hamburger or some steaks, and be able to take that home.”

The difference between the new concept and traditional c-stores is “the variety of what is offered inside,” he said. “Most convenience stores you walk in today and you a say, ‘this feels large,’ those are less than 5,000 square feet. So this is quite a bit larger than the largest convenience store you’ve been in. And inside, we’ve filled that with more fresh produce, more fresh prepared meals. So when you walk into a convenience store today, you’ll see the chip aisle and the candy aisle and the snack aisle and you’ll see the coolers with the pop. This will have a significantly different feel to it, because it will have a whole section just devoted to prepared meals … that a normal convenience store would not have.”

The new store will be the first of its kind in the Twin Cities. “We currently do not have any other Hy-Vee convenience stores like this in our eight-state operating territory,” Hy-Vee spokesperson Tara Deering-Hansen told CSP Daily News. “There are no other Hy-Vee convenience stores like this planned in the Twin Cities, but we are reviewing other potential locations in the Twin Cities and our other markets for this type of concept.”

The company proposed one of the large-format c-stores to the Eden Prairie, Minn., planning commission in September 2016, but the company is no longer pursuing that location. “The project did not move forward because of site access issues,” she said.

Deering-Hansen did not say when the Lakeville store will open. “At this time, we do not have a definitive construction timeline for this project,” she said.

Hy-Vee is an employee-owned corporation operating more than 240 retail stores across eight Midwestern states with sales of $9.8 billion annually.