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Giant Food Stores Debuts Choice Rewards in Lancaster County, Pa.

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CARLISLE, Pa. — Beginning September 17, Giant Food Stores customers who earn rewards points by shopping at any Giant supermarket can now choose what type of savings is best for them—Gas Extra Rewards or 5% off groceries.

When using a Giant Bonus card, customers earn rewards points and accumulate them every time they shop. For every dollar a customer spends, he or she receives one point.

  • For every $100 spent, the customer receives 100 points; 100 points can be redeemed for 10 cents off gas.
  • For every $200 spent, the customer receives 200 points; 200 points can be redeemed for 20 cents on gas.
  • For every $300 spent, the customer receives 300 points; 300 points can be redeemed for 30 cents of gas or 5% off of the next grocery purchase.

There is no limit to the number of rewards a household can earn.

Rewards that a customer earns in one month must be redeemed by the end of the following month; for example, any points earned in September need to be redeemed by October 31. Reward points are tracked at the bottom of the Giant receipt.

“As part of Giant’s commitment to offering quality, selection and savings every day, we are always looking for ways to pass along even more savings to our customers,” said Tom Lenkevich, president of Giant Food Stores. “In addition to already low prices, we are now giving our Lancaster customers the opportunity to personalize their savings experience by choosing how they use their rewards points.”

Customers can redeem Gas Extra Rewards at Giant’s Lancaster County fuel stations.

Founded in 1923 in Carlisle, Pa., Giant/Martin’s operates nearly 200 grocery stores in Pennsylvania, Maryland, Virginia and West Virginia, under the names of Giant Food Stores and Martin’s Food Markets. It is a division of Ahold USA.

CVS Marks First Anniversary of Tobacco Removal

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WOONSOCKET, R.I. — CVS Health has marked the first anniversary of its ending tobacco sales at CVS/pharmacy by releasing new data that it said shows a measurable reduction in cigarette purchases over the past year.

“One year ago, we stopped selling tobacco products because it conflicted with our purpose of helping people on their path to better health,” said Troyen A. Brennan, M.D., M.P.H., chief medical officer at CVS Health. “Today, we are excited to release new data demonstrating the positive impact our decision has had on public health overall as shown by a measurable decrease in the number of cigarette purchases across all retailers.”

Conducted by the CVS Health Research Institute, the study evaluated cigarette pack purchases at drug, food, big-box, dollar, convenience-store and gas-station retailers in the eight months after CVS/pharmacy stopped selling tobacco products.

The study found an additional 1% reduction in cigarette pack sales in states where CVS/pharmacy had a 15% or greater share of the retail pharmacy market, compared to states with no CVS/pharmacy stores. Over the same eight-month period, the average smoker in these states purchased five fewer cigarette packs and, in total, retailers old approximately 95 million fewer packs, it said.

The study also showed a 4% increase in nicotine patch purchases in the states with a CVS/pharmacy market share of 15% of more, in the period immediately following the end of tobacco sales. This indicates that there was also a positive effect on attempts to quit smoking, it said.

“We know that more than two-thirds of smokers want to quit, and that half of smokers try to quit each year. We also know that cigarette purchases are often spontaneous. And so we reasoned that removing a convenient location to buy cigarettes could decrease overall tobacco use,” Brennan said. “This new data demonstrates that CVS Health’s decision to stop selling tobacco did indeed have a real public health impact.”

So far, none of CVS’ rivals, including Wal-Mart, Rite Aid, Walgreens Boots Alliance or convenience-store chains, have followed or disclosed plans to stop selling cigarettes, said a Forbes report. Walgreens has said it is instead pushing harder on smoking cessation programs for its customers. Of the estimated 250,000 retail outlets selling tobacco products, Walgreens has said just 4% are pharmacies. “Our goal is to help get the U.S. smoking rate, which has leveled off at around 18% of the adult population for a decade, moving lower again,” Walgreens said in a statement.

Woonsocket, R.I.-based CVS Health operates 7,800 retail pharmacies.

Gallo Tests Barefoot Refresh Cans

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OAKBROOK TERRACE, Ill. — As more and more beer makes its way into cans, the trend has not been lost on E. & J. Gallo Winery.

“Alternative packaging has been a growth driver for the entire category; these include 187 ml [bottles], Tetra Pak and now cans,” said George Ubing, national sales director, convenience channel, for Gallo.

Recognizing the movement, Modesto, Calif.-based E. & J. Gallo Winery is testing a canned version of its popular Barefoot Refresh Spritzer wines in Arizona and Minnesota markets that include convenience stores and grocery stores. Tests will continue into 2016, but Ubing said the can could potentially be offered outside test markets as a seasonal item during summer 2016.

The 8.5-ounce Barefoot Refresh cans have an alcohol by volume (ABV) of 6.5% and come in two flavors: Crisp White Spritzer, which has melon and pear aromas and a lemon-lime finish; and Summer Red Spritzer, which contains notes of raspberry, orange and freshly picked berries.

The growing popularity of the can format can be attributed to portion control, sustainability, convenience and less waste, Ubing said. Nonglass products appeal to restaurants, golf courses and stadiums and are more likely to be allowed in parks and outdoor events, he said. 

“We think the can will allow us to go into venues that we’ve normally not gone into before,” Ubing said.

But first, Gallo will look to see if Barefoot Refresh cans have staying power.

“Our primary objective for this test is to understand how incremental the Barefoot Refresh single-serve is to the Barefoot franchise,” Ubing said.

Success could come from the c-store channel: Barefoot’s standard line of 187-ml bottles accounts for about 13% of its business in c-stores, according to national IRI c-store data.

“A lot of people want those small formats, sizes for various reasons, but in the c-store channel it’s all about small format,” he said.

Gallo is also testing Barefoot Refresh in a 250-ml bottle in Nevada and North Carolina.

Author(s): 
Kristina Peters

Hard Rock Energy Makes 7-Eleven Debut

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HOLLYWOOD, Fla. — A reformulated Hard Rock Energy Drink will make a splash in retail this week by debuting in 650 7-Eleven convenience stores in Texas.

Hard Rock Energy Drink is a natural energy drink developed by Enterprise Beverage Group LLC (EBG) for restaurant, hotel and casino brand Hard Rock International. The drink, which debuted in 2013 in limited markets, will be available in 7-Eleven locations in Austin, Dallas, Fort Worth, San Antonio and neighboring cities, according to EBG.

Hard Rock Energy Drink offers three naturally caffeinated options that are formulated with vitamins B6 and B12 to provide consumers with a quick energy boost without the post-crash often associated with energy drinks, the company said. Flavors include Paradise Punch, Citrus and Sugar Free Citrus, each with 80 mg of caffeine. The updated, 16-ounce cans in white, black and red, are emblazoned with the iconic Hard Rock logo and retro electric guitar graphics.

“This is a huge step for Hard Rock Energy Drink to be introduced in 7-Eleven stores,” said David Drow, CEO of EBG. “EBG and HRI have put a lot of energy into this product, and we look forward to taking Texas by storm.”

As a special introductory offer, in September and October, when consumers purchase one Hard Rock Energy Drink at participating 7-Eleven stores for $2.19, they will receive another one for free.

Recently, EBG introduced the drinks in more than 40 Hard Rock Cafés across the continental United States, including locations in Dallas, San Antonio and Houston. Hard Rock Energy Drink was officially launched in select U.S. markets in December 2013. The energy drink is available online and in select retailers including Kum & Go, HyVee, Sunoco and Albertson’s.

Turkey Hill Minit Markets to Acquire Two Giant to Go C-Stores

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LANCASTER, Pa. — Turkey Hill Minit Markets has completed an agreement to acquire two Giant to Go convenience stores in Lancaster, Pa., from Giant Food Stores LLC.

Both of the nearly 4,100-square-foot properties—the supermarket chain’s only Giant to Go c-stores—will be rebranded as Turkey Hill.

Settlement on both properties is scheduled for the third week of September.

“This difficult decision to sell our two c-store locations to Turkey Hill is the result of an ongoing assessment of our store fleet and enables us to redirect resources back to our traditional grocery store locations,” Giant Foods spokesperson Samantha Krepps told CSP Daily News. “We are always evaluating our business operations to ensure we have the right mix of offerings in the right locations to serve our customers.”

Outside, the enhanced product mix will include six fueling locations at the Oregon Pike store and four fueling locations at Fruitville Pike, with the addition of diesel at the Oregon Pike store.

Inside, it will include touch screen ordering of Turkey Hill’s signature menu of fresh foodservice items including Built Your Way sandwiches, subs, pizza and other selections for breakfast, lunch, dinner and snacks, as well as Turkey Hill’s beverage and frozen product lines including fresh-brewed coffee and cappuccinos, fountain drinks and Slusheys and a wide selection of Turkey Hill ice cream, iced teas and drinks.

The stores will also enable customers to save on fuel with the Turkey Hill Rewards Card, including three-cents-per-gallon savings every day and opportunities to earn points on most purchases at Turkey Hill toward additional fuel savings.

The Fruitville Pike store will close briefly for renovation following the settlement and re-open a few days later, while the company said it expects the Oregon Pike property to re-open in November after remodeling of the interior and fuel service areas.

“We look forward to this exciting opportunity to serve customers with a new level of variety and convenience at these two locations when they re-open as Turkey Hill stores,” said Turkey Hill spokesperson Kim Hertzog.

Founded in 1923 in Carlisle, Pa., Giant/Martin’s operates nearly 200 grocery stores in Pennsylvania, Maryland, Virginia and West Virginia, under the names of Giant Food Stores and Martin’s Food Markets. It is a division of Ahold USA.

With corporate offices in Lancaster County, Pa., Turkey Hill has stores across the Keystone State, as well as an expanding presence in Ohio and Indiana. The chain of stores offers customers a wide range of products and services including gasoline, deli sandwiches, lottery tickets and gift cards. Turkey Hill is also the largest distributor of Turkey Hill Dairy milk, ice cream and iced tea.

Turkey Hill Minit Markets is one of five convenience-store divisions operated by The Kroger Co., Cincinnati.

Author(s): 
Greg Lindenberg

AAA: Highest Labor Day Travel Volume Since 2008

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TAMPA, Fla. — AAA Travel projects that 35.5 million Americans will journey 50 miles or more from home during the Labor Day holiday weekend, the highest volume for the holiday since 2008 and a 1% increase from the 35 million over 2014. This will mark the fourth consecutive year of overall travel growth for the Labor Day holiday period, and the seventh out of the past nine years to see year-over-year increase in volume.

The holiday period is defined as Thursday, September 3 to Monday, September 7.

Gas prices for the holiday should be the lowest in a decade.

An estimated 85.8% of travelers will drive. Automobile travel will increase by 1.1% this year, with 30.4 million travelers hitting the road.

An estimated 7.4% of travelers (2.64 million) will fly, a 1% increase from last year; 6.8% of travelers (2.42 million) will go by other modes of transportation like train, bus or cruise.

“The summer travel season is almost over and many kids are back in school, but an extended weekend and positive economic fundamentals should be enough to convince millions of Americans to take one more trip during Labor Day weekend,” said Brent Stahlheber, senior vice president of brand marketing and travel for AAA The Auto Club Group.

“Historically, more Americans have shown a higher tendency to travel when Labor Day weekend begins in August,” he said. “Although this year’s holiday begins in September, AAA still expects more Labor Day travelers than last year, primarily due to low gas prices, solid income gains, rising household net worth and an improving housing market.”

Motorists could find the lowest Labor Day gas prices in a decade. The national average price for a gallon of regular unleaded was $2.56 on Wednesday, Aug. 26, 2015—88 cents cheaper than the price on Labor Day 2014, and lower than all Labor Day national average prices dating back to 2004.

The price of oil continues to sink, putting downward pressure on gas prices. West Texas Intermediate dipped below $40 a barrel this week for the first time since February 2009to close at $39.31.

The 30.4 million anticipated auto travelers will mark the fifth consecutive year of rising travel volume by automobile. The 2015 forecast is expected to be the second highest volume by this mode since 2003. Low gasoline prices are making it easier, especially for low-income families, to take a last minute Labor Day road trip.

Coin-Operated Tire Inflation Business Pioneer to Retire

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EGAN, Minn. — Dave Bobert, a pioneer of the coin-operated tire inflation business, has announced his retirement. Bobert formed AIR-vend Inc. in 1981 and developed the AIR-vend, AIR-serv and VAC-serv brands.

He grew AIR-vend to nearly 5,000 locations, $20 million in annual sales, and sold all those assets to Prometheus Partners LLP in 1998.

In 2009, Bobert made the determination that the industry was in need of new technology, and machine upgrades, so he got back into the coin-operated tire inflation business. Bobert reactivated his company ARV Inc. “When I got back into this business in 2009, I was surprised to find that the technology had not changed much in the 12 years since I had been in the business,” said Bobert.

Bobert went on, “I discovered that the air and air/vac equipment that was being manufactured was lacking innovation, so I made the decision to re-engineer the machines and build my own”.

In March 2015, Bobert sold the assets of ARV Inc., to a group of entrepreneurs and investors based in Eagan, Minn. This buyer group also owns and runs VerticalXchange LLC. The new company was named Certus Manufacturing.

Bobert will be serving as a consultant to Certus.

Chris Frost, an 11-year veteran with VerticalXchange, has been named president of Certus Manufacturing.

“Working with an innovator like Dave Bobert has truly been an honor. Following Dave’s vision of consistently using innovative technology as a differentiator will continue to be the philosophy of Certus moving forward” said Frost.

Advantage Sales & Marketing Acquires Marlin Network

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IRVINE, Calif. — Advantage Sales & Marketing LLC has expanded its marketing capability and expertise in foodservice with the acquisition of Marlin Network Inc., which operates five independent business units, Marlin, deep, The Alchemedia Project, Food IQ and StarAwards. Marlin Network has a 30-year legacy of designing high-impact creative and strategic marketing campaigns that drive sales, build brand awareness and foster brand engagement for leading brands.

“This is exciting news for Advantage. Together with Waypoint, our foodservice sales organization, we now offer services that encompass coverage from point-of-purchase through to point-of-consumption for brands and operators. This acquisition also enhances our marketing expertise, and improves our value proposition and effectiveness for a variety of clients, customers and industries,” said Tanya Domier, Advantage CEO.

“Our partnership with Advantage will provide us with greater access to resources and talent to help brands reach consumers at home and away from home. We will generate more impactful programs through better synchronization with sales strategies and deeper investment in data and analytics, expand our operating geographies, and offer new opportunities for our talented associates here in Springfield and throughout North America,” said Dennis Marlin, founder and CEO of Marlin Network.

Marlin Network will continue to be led by Dennis Marlin. The division will continue to be based in Springfield, Mo. It represents more than 80 food and beverage brands.

Founded in 1987, Irvine, Calif.-based Advantage Sales & Marketing is a sales and marketing solutions company committed to building brand value. Advantage’s customized sales and marketing solutions include headquarter sales, retail merchandising and marketing services like shopper, experiential, digital/social and multicultural marketing, for the grocery, drugstore, club, convenience-store, natural/specialty, consumer electronics, home center and foodservice industries.

Dollar General Prototype Sounds Like a Convenience Store

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GOODLETTSVILLE, Tenn. — Discount chain Dollar General will roll out a new prototype in 2016 that sounds an awful lot like a convenience store. The dollar channel has always been the poor cousin to traditional convenience-store channel, but in recent years, the major players have been upgrading their merchandise mix to include groceries, beer, cigarettes and more.

“Our new store prototype will be rolled out in 2016 for all new stores, relocations and remodels,” Todd J. Vasos, CEO and director of Dollar General, said during the company’s second-quarter 2015 earnings call. “The format will allow for a more customer-friendly shopping experience and in this prototype, the consumer will be able to and have faster, more convenient checkout, an attribute that is a high priority for our core consumer. We have value engineered the design to be capital efficient and easier to operate for our store teams. Given the early results from our test, we are encouraged about the prototype.”

Dollar General previously rolled out an upscale version dubbed DG Markets, as well as the Plus format, both of which offer a wider variety of groceries, perishables, frozen foods and merchandise selections than at a typical Dollar General store.

“We continue to use DG Markets as a test lab, continue to learn in those stores,” he said. “Some of the pieces that you’ll see in our new store prototype in 2016 [were] generated from the Market store concept and the Plus concept.

As for the new prototype, Vasos said “the store will visibly look different to the consumer. They will definitely see a difference as they walk in the store. The checkout area is a big, big difference and a departure from where we’ve been, but really is consumer-centric. And I could tell you that all of the work that we’ve done around this and as you can imagine here at Dollar General, we don’t do anything without bringing our consumers along with us. ‘She’ loves that new front-end, that new prototype.”

He said that investments will come in areas such as cooler expansion, but that the team “looked at ways to pull costs out of the build, as well as the investments inside the box, to help offset that.”

Goodlettsville, Tenn.-based Dollar General operates 12,198 stores in 43 states as of July 31, 2015.

Author(s): 
Greg Lindenberg

Tech Startups Moving from Concept to Convenience Store

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DEERFIELD, Ill. — Strap, a technology startup that analyzes information from smartphones, wearables and health data applications to securely engage consumers while building brand loyalty, is working with Trident and Kum & Go as part of Mondelez International’s Shopper Futures program.

Mondelēz recently named eight startups to participate in  Shopper Futures, the company’s innovation initiative, bringing together retailers, entrepreneurs and its own “power brands” to help transform the consumer retail experience.

The Strap pilot will bring Trident and Kum & Go critical insights into consumers’ activity, sleep, food and body data to improve their personalization marketing efforts and help lift sales.

Cincinnati-based Strap applied to Shopper Futures in June and won the opportunity to pitch in person at the Mondelez headquarters in New Jersey.

“We pitched with 17 other startups over two days to Mondelez power brands and leading retailers,” Strap said. “In the week leading up to the pitch, our team took over the shared startup conference room … and spent many early mornings and late nights cranking on the perfect pitch deck and script.”

In mid-September, Trident representatives will visit Strap in Cincinnati to begin work on the pilot.

Meanwhile, Turnstyle Solutions, a location-based marketing and analytics platform that uses public Wi-Fi to attract, retain and reward customers, is participating in two pilot programs. The Toronto-based company will be collaborating with QuickChek and Mondelez’s Swedish Fish brand in the United States, as well as Mac’s Convenience Stores (Ontario Division) and Mondelez’s Cadbury brand in Canada.

“We are hosting both teams at our offices throughout September to build out our go-to-market plan,” said Ryan Freeman, senior director of partnerships and business development.

Toronto-based Freckle IoT, with a network of beacons that help retailers reach consumers, is collaborating with 7-Eleven and Mondelez’s Oreo and belVita brands in the United States. Chicago-based Earshot, which synthesizing location-based insights and real-time information to provide brands with a smarter approach to real-time precision-based marketing, is collaborating with 7-Eleven Canada and Mondelez’s Dentyne brand in Canada.

The eight selected startups will now work with major retailers in collaboration with Mondelēz International brands to bring in-market pilots to life over the next 90 days. How the convenience-store retailers will implement the startups’ technologies in a real-world retail situation has yet to be determined.

“We know the path of purchase with technology has become complex, with consumers really making shopping an anytime, anywhere experience,” Kim Yansen, director of field shopper marketing for Mondelez, told CSP Daily News earlier this week. “So the trick with mobile is how to interject and connect with people, making shoppers into consumers.”

Retailers in particular play an important role for Mondelez, Yansen told CSP Daily News, in that snacks and candy are impulse buys that sell best when customers are physically in a store.

“Our categories are not planned purchases,” she said, “So when people park and go inside, we have to … make sure they buy something and lift the category for retailers.”

A spokesperson for Kum & Go told CSP Daily News that after helping vet the startups, it is waiting to engage further in the process as Mondelez and Strap are meeting first.

West Des Moines, Iowa-based Kum & Go has more than 430 stores in 11 states: Iowa, Arkansas, Colorado, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota and Wyoming.

Whitehouse Station, N.J.-based QuickChek did not respond by press time. It has approximately 140 convenience stores in New York and New Jersey.

Dallas-based 7-Eleven, with nearly 10,500 convenience stores in North America, declined to comment.

Deerfield, Ill.-based Mondelēz is a global snacking company with 2014 revenue of more than $30 billion. It is a world leader in biscuits, chocolate, gum, candy and powdered beverages, with billion-dollar brands such as Oreo, LU and Nabisco biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolate; Trident gum and Tang powdered beverages.

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