SACRAMENTO, Calif. — Tesoro Corp. has paid more than $1 million in penalties for violating California reformulated gasoline regulations.

The California Air Resources Board (CARB) has fined San Antonio, Texas-based Tesoro, which has two of its six refineries in California, $1.01 million for four separate violations over a period of 52 violation days.

According to CARB, in three of the cases Tesoro sold, offered for sale, supplied or offered for supply gasoline that had a sulfur, aromatics or olefin content exceeding California’s specified limits. The sulfur and hydrocarbon compounds worsen air pollution. In each of the three cases, the offending fuel entered the marketplace and was discovered during routine sampling by CARB inspectors.

Tesoro blamed laboratory issues for the noncompliant fuel and said it made changes to procedures to prevent future violations.
In a fourth incident, Tesoro had incorrectly combined conventional gasoline and California reformulated gasoline blendstock for oxygenate blending (CARBOB) at Kinder Morgan’s Concord terminal. Tesoro self-disclosed this violation, and cited operator error. None of this fuel entered the market.
Officials at CARB note that Tesoro cooperated fully and took steps to comply, to reduce the number of violation days and to prevent future similar incidents. About three-quarters of the $1 million in penalties will go to the California Air Pollution Control Fund, while the remaining money will go into a fund to pay for retrofitting school buses with diesel particulate filters.

San Antonio-based Tesoro is an independent refiner and marketer of petroleum products. Through its subsidiaries, it operates six refineries in the western United States with a combined capacity of more than 850,000 barrels per day and ownership in a logistics business which includes a 35% interest in Tesoro Logistics and ownership of its general partner. Tesoro’s retail-marketing system includes more than 2,200 gas stations under the ARCO, Shell, Exxon, Mobil, USA Gasoline and Tesoro brands.

FERGUSON, Mo. – The Urban League of Metropolitan St. Louis Inc. (ULSTL) hosted a groundbreaking on July 9 in Ferguson, Mo., on the site of the former QuikTrip convenience store looted and burned during the riot following the fatal police shooting of Michael Brown on August 9, 2014.

The new Urban League Community Empowerment Center of Ferguson will feature programs, including job training, from the Urban League and various social service partners to serve the surrounding neighborhoods.

Tulsa, Okla.-based QuikTrip Corp. donated the property in March.

“We are grateful to the community for enabling us to build the Community Empowerment Center of Ferguson. It is our hope that the center will assist thousands of young men and their families throughout the North County area,” said Michael P. McMillan, president and CEO of the ULSTL.

The new facility will house the Urban League’s “Save Our Sons” workforce program, which will provide job training and placement services for up to 500 African-Americans and other young men in Ferguson and North St. Louis County over the next two years. It also initially will have offices for Provident, Better Family Life, Lutheran Church-Missouri Synod and Home State Health.

Construction management firm Kwame Building Group Inc. will provide owner’s representative services for the new community center.

“The Urban League believes their mission of helping African American men find jobs includes giving them the opportunity to build the center itself,” said Joshua Randall, president of Kwame Building Group. “So an important part of our role as construction manager is to achieve the maximum MBE and minority workforce participation possible.”

The new building will be an expansion of the Urban League’s existing job training and education efforts. The center will offer four-week job-training programs to help young black men learn how to get jobs, keep them and work towards promotions. The center also will offer counseling for housing, rent and utility assistance and mental health services provided by Provident Inc.

“We want to be part of our community’s healing. For this community to be everything it can be, these young men need the opportunity to be everything they can be.”

“We want to be part of the solution, and we are not leaving Ferguson,” QuikTrip board member Michael Johnson said when the company donated the property. “We want to be part of our community’s healing. For this community to be everything it can be, these young men need the opportunity to be everything they can be.”

Tulsa, Okla.-based QuikTrip operates more than 700 convenience stores in 11 states: Arizona, Georgia, Illinois, Iowa, Kansas, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina and Texas.

CHICAGO – Imported-wine volume is in need of a consumption infusion.

The glimmer of hope might be this: Of all the various alcohol beverage segments, wine consumers overindex on diversity. Wine drinkers are considered more likely to try new types of wines than consumers of spirits and beer are.

According to Technomic’s soon-to-be-released 2015 WineTAB report, volume of imported table wine declined in 2014, and the 2015 outlook is similar, said Donna Hood Crecca, senior director of the Technomic Adult Beverage Resource Group, in a recent blog.

Indeed, imported wine has struggled in recent years, while domestic wine continues to grow. Various factors are contributing to lagging import consumption, including challenges faced by some leading brands.

With per capita wine consumption continuing to rise, consumers indicate greater familiarity with domestic wines than imported, with only 5% report being more familiar with imported than domestic wines, according to the On-Premise Wine study.

“The best routes to growth for imported wine likely lie in building consumer awareness and tapping into emerging preferences,” Crecca wrote.

Fortunately there is another ace in the hole that can have an effect: Wine consumers are regarded as the most brand-adventurous. For example, 19% of consumers who purchase several times a year have tried more than 10 brands in the past year, according to a recent Nielsen survey of more than 2,000 adult beer, wine or spirits drinkers.

And the more wine they buy, the more new offerings they try: Thirty-three percent of wine drinkers who purchase once a week have tried more than 10 brands in the past year, according to Nielsen.

Paling by comparison, only 15% of beer drinkers and 5% of spirits drinkers who purchase several times per year have tried more than 10 brands in the past year.

Crecca pointed out that when ordering wine in restaurants and bars, “consumers are not always aware of the origin of the wine they select; on their most recent occasion, three in 10 did not know if the wine ordered was imported or domestic.”

Evolving consumer wine preferences point to opportunities for imported wine, particularly among younger consumers who show higher interest in different wine varietals and styles than their older counterparts do, she wrote.  

For example, three in 10 younger consumers (ages 21-34) report ordering the Spanish wine Albariño in restaurants and bars once a month or more often, notably more than the 12% of those 35 and older who say the same. Slightly more than one-third (36%) of younger consumers report ordering a Malbec varietal as frequently, as compared with 17% of older consumers.

“Given the interest in exploration and authenticity, particularly among younger consumers, raising consumers’ awareness of the range of varietals available and educating them about wine origins may spark increased interest and sales and turn the tide for imported wine,” Crecca wrote.

MINONG, Wis. — Jack Link’s, a leading meat snack manufacturer has introduced Jack Link’s Original Chicken Jerky.

“With the ever-growing popularity of healthier snacking options and the incredible success of our Turkey Jerky, we want to provide consumers with another great, snacking option,” said Kevin Papacek, director of marketing for Jack Link’s.

Filling consumers’ need for a portable, shelf-stable chicken snack, Jack Link’s Original Chicken Jerky is a source of protein for on-the-go lifestyles. Naturally low in fat and carbs, one serving has 11 grams of protein, is 98% fat-free and has 80 calories.

Jack Link’s Original Chicken Jerky starts with lean white meat chicken breast seasoned and marinated with cracked black pepper and sweet and savory spices. The tender chicken strips are then smoked. The strips are then sliced so they are sized for snacking.

Jack Link’s Original Chicken Jerky is now available at retail locations across the country for a suggested retail price of $6.99.
Based in Minong, Wis., Jack Link’s is a family-owned company that offers more than 100 premium protein snacks in a variety of flavors, sizes and price points, appealing to nearly every consumer and occasion.

CAMARILLO, Calif. — The U.S. average pump price for regular gasoline dropped 1.66 cents per gallon over two weeks. Over one month, it is down 3.34 cents. Retail margin is a hungry 10.93 cents, having lost 10.49 cents since June 26, according to the most recent Lundberg Survey of approximately 2,500 U.S. gas stations.

The downdrift of the U.S. street price would have been steeper if not for California, which is suffering a supply crisis. The average street price in the state rose nine cents over two weeks, and in a special July 11 West Coast survey Lundberg found California retail prices shot up about another 12 cents while Pacific Northwest prices were mostly unchanged.

Many California retail margins and some fed by California supply have been capsized. In San Diego and Los Angeles, the worst hit by the supply crunch, July 10 margins were nearly 18 and 16 cents negative.

But the special July 11 wholesale price survey shows that most of the wholesale price spikes are already spent. Retailers will urgently pass through current wholesale price hikes to the street to save themselves.

But the crisis is destined to end soon as the wholesale price differential between troubled California markets and others, elsewhere in the United States and abroad, spells huge financial incentive for additional gallons to come in. It is a magnet of much more than $1 per gallon that they cannot resist.

California was already tight after refining glitches with one plant still down, experiencing year on year demand growth, then recently lower prices deprived non-California gallons of enough incentive to migrate into the state. California is panting for imports. The recent wholesale price spikes are the upcoming cure for the supply crisis.

Other markets where margins are severely pinched in the July 11 snapshot include Albuquerque, Billings and Charleston, S.C.

While retailers lost half their margin on average nationally in these two weeks, refiners got a gasoline margin bonanza. Lower crude oil prices–gifted to them by an oil market concerned about demand thanks to Greece and China economic troubles and about supply thanks to a still possible agreement with Iran unleashing more oil–spell opportunities for refiners to slash wholesale gasoline prices to chase sales. This is how many retailers now in hot water will be rescued.

Camarillo, Calif.-based Lundberg Survey Inc. is an independent market research company specializing in the U.S. petroleum marketing and related industries.

Click here for previous Lundberg Survey reports in CSP Daily News.

WHITE PLAINS, N.Y. — Heineken USA announced the return of its Beers of Mexico variety pack for the fall and holiday entertaining seasons.

Dos Equis Roja—a red lager crafted with Mexican malted barley and hops—joins the mix of perennial favorites like Dos Equis Lager, Tecate and Sol. This latest version of the Beers of Mexico pack will be available in 12- and 24-packs starting August 1.

“Variety packs have experienced incredible growth, contributing an incremental $224 million and more than doubling retailer profits over the last five years,” said Ryan Thompson, brand director for Dos Equis, Heineken USA. “Import variety packs, including the Beers of Mexico pack, are outpacing (+18.5%) the total variety pack segment (+14.0%) [according to Nielsen data] offering retailers the opportunity to further boost sales and profits this fall. Our Beers of Mexico pack with new Roja, leverages the strength and momentum of Dos Equis (+12%) and Tecate (+5.7%), while offering consumers an exciting new taste from a favorite Mexican import brand.”

To build awareness and encourage purchase of the latest Beers of Mexico variety pack, custom designed “Bring Something New to the Party” case stackers and point-of-sale elements will be available to merchandise retail shelves, floors and cold boxes.

The Beers of Mexico program runs August through December 2015.

White Plains, N.Y.-based Heineken USA Inc. is a subsidiary of Heineken International BV. European brands imported into the U.S. include Heineken, Strongbow Hard Apple Ciders, Desperados, Amstel Light and Newcastle Brown Ale. Heineken USA also imports the Dos Equis franchise, Tecate franchise, Sol, Indio, Carta Blanca and Bohemia brands from Mexico.

DULUTH, Ga. —For retailers moving into digital and mobile technologies both within their operations and with their customers, a common problem is having to “bolt together” disparate solutions. Technology provider NCR, Duluth, Ga., is offering Retail One, an omnichannel solution for retailers hoping to keep legacy systems while connecting with best-in-breed digital solutions.

The company unveil its new solution at its recent Synergy conference in Orlando, Fla. Nadine Routhier, vice president of marketing at NCR, told CSP Daily News that consumers today want to shop wherever they are, be it at home on the computer or on the phone while on the go. They may want to order something online and pick it up at a store or get a notice on a hot dog deal on their phone and go into the store to get it.

But for retailers, the problem is developing that all-around solution. “Omnichannel is not just about connectivity, it’s mobility, self-service devices” Routhier said. “It’s about unifying all that into an integrated, frictionless solution, where consumers can shop, anytime any way they want.”

The trouble with existing technology is that retailers need to purchase—and keep purchasing—components from one vendor then another in order to create an end-to-end solution that is truly integrated, she said. Not only does this create vendor lock-in and a closed environment that is stifling innovation, but it simply isn’t feasible for most retailers who work with multiple vendors and are managing separate information technology (IT) systems (point of sale, marketing, loyalty program, inventory management, mobile, e-commerce and others) with limited connectivity between them. To date, providing a truly seamless customer experience across all channels continues to be a pipedream, she said.

NCR’s solution creates an integration layer that ties retailers’ existing and future IT infrastructure and applications together. The platform is built upon open interfaces that act as a connection point between the various software, hardware and payments systems in a retailer’s environment.

The solution includes an app store and marketplace that will feature apps customized for retailers from NCR and major industry partners.

OAKVILLE, Ontario — Fast feeder Burger King, following in the footsteps of convenience-store retailer 7-Eleven Inc., is reportedly testing Doritos Loaded “in a handful of stores,” reported the food website Eater.com. Burger King has not officially announced the test or the item’s launch.

Dallas-based 7-Eleven Inc. and PepsiCo Inc. announced the then-exclusive national launch of Doritos Loaded on July 2, 2014. The companies developed the new snack, which is triangular in shape, filled with melted cheese and encrusted with Doritos Nacho Cheese flavor. The 7-Eleven version of Doritos Loaded costs $1.99 for a box of four and is served warm.

Burger King’s version also comes in a box of four.

Click here for a taste-test review of Burger King’s version of Doritos Loaded by the Trillist.com.

The product is part of a trend of foodservice and snack-food mashups.

In December 2014, Pizza Hut Australia introduced a Doritos Crunchy Crust Pizza.

In 2012, Taco Bell introduced Doritos Locos Tacos, featuring a shell made out of Nacho Cheese Doritos snack chips. It later added cool ranch and “fiery” flavors. Doritos then came out with a chip that tastes like the taco that tastes like the chip.

Plano, Texas-based Doritos is one of the leading brands of PepsiCo’s global snack portfolio. PepsiCo Inc., Purchase, N.Y., is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. Its main businesses are Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola.

Founded in 1954, Miami-based Burger King is the second-largest fast-food hamburger chain in the world. It operates more than 14,000 locations in 100 countries and territories worldwide. In late 2014, it acquired Canadian coffee and doughnut chain Tim Hortons to become Restaurant Brands International Inc., based in Oakville, Ontario.

AUSTIN, Texas — 7‑Eleven now offers on-demand delivery in Austin, Texas, the second market where the company has launched its new service. The first was last week in the San Francisco area. In both markets, on-demand delivery is powered by Postmates.

San Francisco-based Postmates is a technology and logistics company that operates a network of couriers. A user downloads the Postmates app through an iOS, Android or web app operated by Postmates, then scrolls through the list of retailers to select products they want to order. Postmates coordinates the delivery from the most convenient outlet and nearby courier to fulfill the customer’s order within an hour.

In Austin, 36 participating 7-Eleven convenience stores offer an assortment of products from hot foods and snacks to cold beverages and other convenience items.

“7‑Eleven’s founder, Joe C. Thompson Jr., used to say 7‑Eleven’s mission was to ‘give customers what they want, when and where they want it’,” said Raja Doddala, 7‑Eleven’s vice president of innovation and omnichannel strategy. “Through the modern technology that Postmates provides, we can fulfill that promise in a way we haven’t done before.”

The partnership with Postmates is 7‑Eleven’s first official venture into the on-demand economy and plays a role in the company’s omnichannel strategy to provide time-pressed customers solutions to their everyday needs.

“Through our partnership with Postmates, 7‑Eleven’s reach extends beyond our physical stores,” Doddala said. “The program should work well for us because it appeals to our customers who are more on-the-go, connected 24/7 and prefer fast-paced, urban living.

“Plus, we have market concentration in these geographic areas, which makes shopping with us through Postmates even more convenient for customers,” said Doddala, adding that “Postmates has figured out how to keep the Slurpee drinks cold and the Big Bites hot.”

Holger Luedorf, Postmates senior vice president, said, “By partnering with 7‑Eleven, we are able to offer both 7‑Eleven and Postmates customers access to groceries, fresh food and other goods across all markets that our companies are both operating in. In providing 7‑Eleven with a digital storefront and giving its team access to our fleet of more than 12,000 Postmates couriers, we are making the experience even more convenient for our joint customers.”

Doddala expects to expand delivery later this year to other areas with a high density of 7‑Eleven stores, such as New York, Los Angeles, Washington, D.C., and Chicago.

Dallas-based 7-Eleven Inc. operates, franchises or licenses nearly 10,500 7-Eleven convenience stores in North America. Globally, there are more than 56,200 7-Eleven c-stores in 16 countries. During 2013, 7-Eleven c-stores generated total worldwide sales close to $84.5 billion.

BECKLEY, W.Va. — Convenience-store retailer and Dunkin’ Donuts franchise group Little General Stores, led by Greg Darby, plans to develop five new Dunkin’ Donuts restaurants in Charleston and Beckley, W.Va.

Its next Dunkin’ Donuts restaurant is planned to open in 2016.

This team currently operates more than 60 quick-service restaurant (QSR) concepts throughout West Virginia and owns more than 80 gas-station and convenience-store operations.

Dunkin’ Donuts announced the Little General multi-unit store development agreement with six other franchise groups developing a total of 51 new QSRs in Virginia and West Virginia over the next several years.

Dunkin’ Donuts offerings include hot and iced coffee, flavored coffees, lattes, hot and iced tea, Dunkin’ Donuts K-Cup Packs, Coolatta frozen drinks, donuts, muffins, bagels, breakfast and bakery sandwiches and a DDSMART menu featuring better-for-you items.

Based in Canton, Mass., Dunkin’ Donuts–part of the Dunkin’ Brands Group Inc.–has more than 11,300 restaurants in 37 countries worldwide.

Beckley, W.Va.-based Little General Store operates in West Virginia, Virginia and Ohio. Little General Stores offer the Exxon, BP, Sunoco, Marathon and Shell fuel brands. The company is also a franchisee for Subway, Godfather’s Pizza, Sam’s Hot Dogs, Burger King, Arby’s, Taco Bell, Chester’s Chicken, Steak Escape, Custard Stand Hot Dog and the 79er Restaurant.