conv&carwash jan feb 2014 48pgs web

JANUARY | FEBRUARY 2014

Sylvain Blouin – Rock n Wash™

DISASTER PLANNING for Survival in Today’s Marketplace

CELL SALES C-stores take advantage of Mobile Phone Products and Services

CHALLENGES AND SOLUTIONS for Modern Fuel Gauging

VIEW FROM THE WEST Alberta’s Proposed Tobacco Flavour Ban

PM41

6705

39

CANDY END

CAP RACK

BREAD

COOKIE/CRK R

HBC

GM

MULTI

SNACK RK

NUTS

SALTY

HANGING

CANDY

MEAT SN

ACKS/JER

KYCLEA

NING

PAPER

PET FO

OD

NUTS &

SEEDS

FROZEN BEVERAGE

& SOFT SERVE

HOTFOOD

BAKED

GOODS

CASH

REG

ISTE

RLI

GH

TERS

/IM

PULS

E B

UY

ITEM

S

CIGARETTES, CIGARS & OTHER

TOBACCO PRODUCTS

HANGING

CANDY

COFFEE

READ

Y TO

EAC

HTO

EAT

HOT

FO

OD

DAIRY

DELI COOLER ITEMS

RETAIL BEVERAGE

GRAB HEAT AND

EAT FOOD SERVICE

DAIRY DAIRY

GOURMET CHIPS

HANGING

CANDY

HANGING

CANDY

HANGING

CANDY

FRESH SANDWICHES/

DRINKS/YOGURT/ENTREES

www.core-mark.com

EVERYTHING YOU NEED

ONTARIO 1 (877) 864.0285

NW ONTARIO/SASK 1 (800) 665.7575

MANITOBA 1 (800) 982.7552

CALGARY 1 (800) 242.8402

VANCOUVER 1 (800) 663.9963

Become a cold beverage destination. Contact us for more information.

TM

We Do Cold Beverages

CONVENIENCE & CARWASH CANADA 3

CANDY END

CAP RACK

BREAD

COOKIE/CRK R

HBC

GM

MULTI

SNACK RK

NUTS

SALTY

HANGING

CANDY

MEAT SN

ACKS/JER

KYCLEA

NING

PAPER

PET FO

OD

NUTS &

SEEDS

FROZEN BEVERAGE

& SOFT SERVE

HOTFOOD

BAKED

GOODS

CASH

REG

ISTE

RLI

GH

TERS

/IM

PULS

E B

UY

ITEM

S

CIGARETTES, CIGARS & OTHER

TOBACCO PRODUCTS

HANGING

CANDY

COFFEE

READ

Y TO

EAC

HTO

EAT

HOT

FO

OD

DAIRY

DELI COOLER ITEMS

RETAIL BEVERAGE

GRAB HEAT AND

EAT FOOD SERVICE

DAIRY DAIRY

GOURMET CHIPS

HANGING

CANDY

HANGING

CANDY

HANGING

CANDY

FRESH SANDWICHES/


www.core-mark.com

EVERYTHING YOU NEED

ONTARIO 1 (877) 864.0285


MANITOBA 1 (800) 982.7552

CALGARY 1 (800) 242.8402

VANCOUVER 1 (800) 663.9963

Become a cold beverage destination. Contact us for more information.

TM

We Do Cold Beverages

PUBLISHER Brenda Jane Johnstone [email protected]

EDITOR Kelly Gray [email protected]

SALES Cody Johnstone 416-838-4674 [email protected]

Brenda Johnstone 204-489-5215 [email protected]

DESIGN AND PRODUCTION Doug Coates, Edge Advertising Keith House, Ad Production

EDITORIAL ADVISORY BOARD Ian Burton, PD McLaren Scott Findlay, Core-Mark Int’l Kim Hansen, MI Petro David Hoy, Peninsula Co-Op Andrew Klukas, WCSA Dave Watson, The Chamois & Convenience Store Ltd.

CONTRIBUTING WRITERS Barbara J. BowesDavid DoughertyMatthew GottfriedKelly GrayAndrew KlukasJillian MitchellPete NeilJennifer PedrizzettiHarry PetersonJohn Wiesehan Jr.

CIRCULATION James Gordon [email protected]

WEBSITE www.convenienceandcarwash.com

PUBLICATION MAIL AGREEMENT No: 41670539 Return Undeliverable Canadian addresses to: Circulation Department 543 Borebank Street Winnipeg, MB R3N 1E8

Contents

20Cell Sales From time-credit top ups to battery chargers and shock cases C-stores are perfectly placed to offer a range of mobile phone products and services.

FEATURES

06 View from the West WCSA President Andrew Klukas speaks out on Alberta’s Proposed Tobacco Flavour Ban

11 Challenges and Solutions For Modern Fuel Gauging OPW’s Pete Neil discusses fuel technologies as they continue to progress and become more operationally inclusive.

17 Responsible Retail Governments are reviewing Canada’s liquor distribution landscape and C-stores want to offer their experience as responsible retailers of age restricted products

20 Cell Sales From time-credit top ups to battery chargers and shock cases C-stores are perfectly placed to offer a range of mobile phone products and services.

22 Snack Attack In an increasingly grab-and-go world, the traditional C-store delivers excellent solutions to on-the-go snacking needs.

28 E-Cigarette Update ‘Vapes’ are delivering billions of dollars in opportunity to C-stores. Are you getting in on the action?

30 Social Media Manitoba-based Amell’s Gas & Go makes sure its customers get the message

32 Speaking of Lotteries Manitoba Liquor & Lotteries shares some wisdom on ticket sales.

34 Good Hiring Strategies HR specialist Barbara Bowes looks at getting the right people for the job and asks why some business owners don’t connect the dots to ensure hiring success.

38 Loyalty Carwash Programs How much is enough?

43 Disaster Planning How you prepare for an unexpected event determines how quickly you are able to be back in operation.

4 January | February 2014

Publisher’s Message

The convenience, gas and carwash channels have all had their “issues” and as we move into this New Year, Convenience & Carwash Canada o f f e r s y o u information on

the Liquor discussion that has been a background hum for the past few years. Retailers across Canada are interested in how our government will change – or not – the laws governing liquor sales in convenience outlets. We’re offering you some insight into this national debate and welcome your comments for publishing in follow-up issues.

Also on the legislative front the WCSA are asking all retailers across the west to “make their voices heard at the Legisla-ture” in 2014 regarding the Proposed To-bacco Flavour Ban. It’s time to speak up!

As we move into 2014 retailers are keen to grow sales and to learn new ways of doing business. This issue we are featuring an article on Social Media and how a small rural retailer in Manitoba has increased sales exponentially using this e-tool. If your store is reaching new customers using Social Media, we’d love to hear your story too.

Your success is my business, and as always my open door policy to your valu-able feedback remains not only intact, but stronger than ever. If there is a topic you’d like to have featured or if you have questions or perhaps you need an intro-duction please feel free to email me at [email protected]

In this vein we have reached out to readers for their predictions and fore-casts for 2014. Here is a sampling of some of the views of your associates and colleagues.

In BC, Ruth Emslie of the Sparwood ESSO noted that 2013 was a bit of a blur in the early months. But, she says, “Things are getting back to normal– as normal as they can be. We had a very busy year at the store, mostly local workers getting their lunches, smokes, lotto and gas. Our emphasis is still on quick and friendly. Our staff is very knowledgeable about our store offerings and this pays off. Our customers want their lunches fresh, their coffee hot, their drinks cold and the shelves stocked and we seemed to have managed to do this.

Out on Vancouver Island, Peninsula Co-op’s Petroleum Operations Manager Tom Humphries suggests the chain saw a good year in 2013. However, he suggests there are challenges to be mastered. For example, in foodservice they are still not seeing sales develop as strongly as the US model where seven per cent of consumers look for a QSR meal at a C-Store. “There is a Canadian cultural block here we can’t get through. American white and blue collar workers will think nothing of stopping at a C-Store QSR for a lunch or dinner meal, at the present time that is not going to happen in Canada.”

In Hot/Cold Beverages Humphries sees Fair Trade/Certified Organic cof-fee continuing as a consumer prefer-ence. “People want the peace of mind knowing any purchase they make will support sustainability,” he says. More, he suggests that the Starbucks/Sec-ond Cups/Horton’s will always have the competitive advantage of a full serve coffee offering. “There is an emotional experience there that a self serve cof-fee offering in C-Stores can’t compete with. We have to up our game on the execution side. C-Store coffee is good in the morning when it is fresh and hot,

but few consumers expect us to serve a good cup at 3:30 in the afternoon.

“Fresh, Healthy food choices will con-tinue to be our future. We live in a world of label readers where even teenagers are checking calorie and fat content in food items. Yogurt, fresh fruit, protein bars need to be front and centre for consumers entering sites so that we can evolve away from the traditional “Con-venience Store” stereotype of “nothing but chips and pop”. Marketers that can figure this out in the coming years will reap the sales benefits. Governments are rallying behind this as well. For example, BC is rolling out a “Healthy Choice” program in 2014.

In Saskatchewan Mr. Ahmad of Wilkie ESSO and Service is confident the western provinces will continue to grow and as the economy moves forward so too will the fortune of C-stores. “I personally feel with the recent acquisition of my distribution company with expansion in the fuel supply business in the mid west US there are optimistic signs of strong economic growth in coming months. Once again western provinces continue to grow and expand in retail C-Store, fuel and carwash business,” he says.

According to Peter Kilty of Parkland, Canada’s largest independent marketer and distributor of fuels, with nationwide network of sales channels for retail, commercial, wholesale and home heating fuel customers, the industry is going to continue to be under pressure from several fronts. Here he sees the expansion of non-traditional competitors such as drug stores, grocery stores, and big box retailers coming into the convenience and gasoline space.

In Food Service Kilty suggests opera-tors will continue to find a growing area for business with time starved consum-

Hello and Happy New YearWe wish you all an exciting and prosperous 2014.


Brenda Jane Johnstone Publisher

Upcoming Events

February 18-20, 2014WPMA National Convention & Convenience Store ExpoMirage, Las Vegaswww.wpma.com/national-convention1-888-252-5550

March 18 –19, 2014Carwacs TorontoToronto, ONhttp://toronto.convenienceu.ca

March 31 – April 2, 2014International Carwash ShowChicago, ILwww.TheCarWashShow.com

May 14, 2014NACDA Ontario Children’s Charity Golf ClassicEagle Nest Golf ClubMaple, Ontariowww.nacda.ca

June 3 – 5, 2014UNITI expoStuttgart, Germanywww.uniti-expo.com

June 10 & 11, 2014NACDA Maritime Children’s Charity Golf ClassicFox Creek Golf ClubDieppe, NBwww.nacda.ca

July 3, 2014WCSA 5th annual Charity Golf TournamentGlen Eagle Golf & Country ClubCochrane, [email protected][email protected]

August 28, 2014NACDA Quebec Children’s Charity Golf ClassicHillsdale Golf & Country ClubMirabel, QCwww.nacda.ca

ers looking for quick, convenient and quality alternatives to help them meet the needs of their families and them-selves. “This is also a great opportunity for our industry to differentiate our offer to the consumer, especially when deliv-ered with great customer service.

“Hot and Cold beverage offerings in our sector are also key and both need to be differentiated inside the store. Formal programs are becoming the norm and almost table stakes in a strong beverage offering. I believe all C-Stores need to have a well-displayed and properly stocked branded Hot Bev-erage program – even if it is simply a Keurig offering.

“I believe Specialty beverages (sport, vitamin, energy etc.) will continue to be a strong area of growth for our industry with new products and brands being in-troduced to make this an exciting busi-ness to be in and prosper from.”

In the petroleum sector – sales, equip-ment, fuels – there will be continued pressure on volume over the next few years. This will be felt more so in Eastern Canada given the strength of the West-ern economy. “New entrants, stronger offers and pressures on demand result-ing from high prices and increased taxes will all put volumes at traditional opera-tions at risk,” he says.

Tobacco – regular, contraband, fla-vored, cigars etc. – will continue to be an area of huge focus during 2014 with pending restrictions being placed on both flavoured product lines and elec-tronic or e-cigarettes could have a big impact on this category. “I also worry about further tax increases driving con-sumers away from these products,” says Kilty.

Brent Morris, President of Alberta chain Gas King is hoping for another great year in 2014. “By the start of Q2

renovations at Eastside Gas King in Lethbridge should be in full swing. We will be doing an extensive renovation at this location and, if all goes according to plan, will be adding 1-2 new branded food service options. We are hoping to have these exciting food service franchises open in the summer of 2014.

“In late 2013 we added a new state-of-the art automatic car wash at Lakev-iew Gas King in Lethbridge so the focus in early 2014 will be learning the full ex-tent of what that unit can do & then do-ing a full marketing campaign,” he says.

The upshot of all these comments is a buoyant mood for business as we move into the New Year. Here’s hoping the celebration lasts.

www.pei.org/rp

Providing PEI members with discounted rates and custom solutions for a variety of essential business services and products!

RECOMMENDED PRACTICES

Installation of Underground Liquid Storage Systems

Installation of Aboveground Storage Systems for Motor Vehicle Fueling

Installation and Testing of Vapor-Recovery Systems at Vehicle-Fueling Sites

Testing Electrical Continuity of Fuel-Dispensing Hanging Hardware

Inspection and Maintenance of Motor Fuel Dispensing Equipment

Overfill Prevention for Shop-Fabricated Aboveground Tanks

Design and Maintenance of Fluid-Distribution Systems at Vehicle Maintenance Facilities

Installation of Bulk Storage Plants

Inspection and Maintenance of UST Systems

Installation of Marina Fueling Systems

Storage and Dispensing of Diesel Exhaust Fluid (DEF)

Testing and Verification of Spill, Overfill, Leak Detection and Secondary Containment Equipment

Design, Installation, Service, Repair and Maintenance of Aviation Fueling Systems

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RP200

RP300

RP400

RP500

RP600

RP700

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Design and Installation of Fueling Systems for Emergency Generators and Fuel Oil Supplied Burner Systems

Design, Installation, Operation and Maintenance of CNG Vehicle Fueling Facilities

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Currently covering 13 subjects and soon to expand to 15, PEI recommended practices address the most important operational

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Nov2013PEI_FPad_CCC Magazine B.indd 1 11/6/13 2:06 PM


As I’m sure many of you have heard, the Alberta Government has recently passed legislation to ban all flavoured tobacco products. This will have an impact on your business. However, The government has yet to decide which products to exclude from the ban. It is critical that retailers speak out. It will make a difference.

The goal of the flavour ban is to reduce to-bacco consumption by youth. Age testing by re-sponsible retailers has proven to be a very effec-tive way to prevent youth smoking, and retailers obviously take it seriously. Since 1999, retailer compliance with age testing requirements has increased by over 15%-from 68% to 84.3%. Dur-ing the same period, youth smoking declined from 27.2% to 10.9% – a 60% reduction!

That means retailers are an important part of the solution to ensure minors don’t access tobacco products. Product bans tend to have

Alberta Retailers – We Need Your Help!SPEAK OUT NOW ON THE PROPOSED TOBACCO FLAVOUR BAN

TO CALL OR EMAIL

Fred Horne, Minister of Health and Wellness: T: (780) 427-3665 E: [email protected]

the opposite result. As we learned from the recent federal flavour ban, an overreaching product ban will lead to an in-crease in contraband (illegal) tobacco sales. Youth will find ways to access banned products as it will increase activity in the illegal tobacco market. Contraband (illegal tobacco)

products are sold to anyone, regardless of age.The proposed ban targets established fla-

voured products that are legally consumed by adults. The lost sales resulting from the inclu-sion of these established products will have very negative consequences for the industry.

Our Association has requested that the Al-berta government increase retailer training, better enforce youth possession laws, and intro-duce stronger measures to fight illegal tobacco. We now need you to speak out about what this means for your business.

ON BEHALF OF THE WESTERN CONVENIENCE STORES ASSOCIATION, I

AM ASKING YOU TO MAKE YOUR VOICES HEARD AT THE LEGISLATURE.

POLITICIANS NEED TO KNOW THE NEGATIVE OUTCOMES OF THIS LEGISLATION AND HOW IT WILL IMPACT YOUR

BUSINESS. AND WHAT HAPPENS IN ALBERTA MIGHT ECHO IN OTHER PROVINCES.

WHAT YOU CAN DO:Write or call Minister of Health Fred Horne and Associate Minister of Wellness Minister Dave Rodney today and make your voice heard about what this means for your operations.

You can also find your MLA here and contact them individually: http://www.assembly.ab.ca/lao/mla/mla_help.htm

TO WRITE

Fred Horne, Minister of Health and Wellness:Post Office Box 1360 Station Main Edmonton, ABCanada T5J 2N3

Dave Rodney, Associate Minister of Wellness:T: (780) 415-0482 E: [email protected]

Dave Rodney, Associate Minister of Wellness:418 Legislature Building10800 97 AvenueEdmonton, ABCanada T5K 2B6

www.pei.org/rp

Providing PEI members with discounted rates and custom solutions for a variety of essential business services and products!

RECOMMENDED PRACTICES

Installation of Underground Liquid Storage Systems

Installation of Aboveground Storage Systems for Motor Vehicle Fueling

Installation and Testing of Vapor-Recovery Systems at Vehicle-Fueling Sites

Testing Electrical Continuity of Fuel-Dispensing Hanging Hardware

Inspection and Maintenance of Motor Fuel Dispensing Equipment

Overfill Prevention for Shop-Fabricated Aboveground Tanks

Design and Maintenance of Fluid-Distribution Systems at Vehicle Maintenance Facilities

Installation of Bulk Storage Plants

Inspection and Maintenance of UST Systems

Installation of Marina Fueling Systems

Storage and Dispensing of Diesel Exhaust Fluid (DEF)

Testing and Verification of Spill, Overfill, Leak Detection and Secondary Containment Equipment

Design, Installation, Service, Repair and Maintenance of Aviation Fueling Systems

RP100

RP200

RP300

RP400

RP500

RP600

RP700

RP800

RP900

RP1000

RP1100

RP1200

RP1300

COMING IN 2014

• Based on thorough research• Written by an appointed committee of industry experts• Undergo an extensive public comment period• Reviewed at least once every 5 years• Online testing offered for all titles

Design and Installation of Fueling Systems for Emergency Generators and Fuel Oil Supplied Burner Systems

Design, Installation, Operation and Maintenance of CNG Vehicle Fueling Facilities

RP1400

RP1500

Currently covering 13 subjects and soon to expand to 15, PEI recommended practices address the most important operational

issues facing the fuel and fluid handling equipment industry.

Nov2013PEI_FPad_CCC Magazine B.indd 1 11/6/13 2:06 PM


SINCE 2007, SPECIAL INTEREST GROUPS IN CANADA HAVE BEEN AGGRESSIVELY LOBBYING CANADIAN GOVERNMENTS TO BAN FLAVORS IN TOBACCO PRODUCTS. THE ARGUMENT PRESENTED BY THESE GROUPS IS THAT NO ADULT WOULD EVER SMOKE FLAVORED TOBACCO PRODUCTS AND SO THEY ARE CLEARLY TARGETED TOWARDS KIDS. THE CLAIM IS THAT MORE KIDS IN CANADA WERE STARTING TO SMOKE AS A RESULT OF THE FLAVORS AND THUS A BAN ON THESE PRODUCTS WAS NECESSARY.

Alberta Bill 206

May Threaten Tobacco Retail

Sales


Suppliers within the tobacco industry however believe these arguments are not supported by actual facts. While kids may have illegal access to these products, they also have access to alcohol, illicit drugs, and other non-flavored tobacco products. In fact, more kids consume non-flavored tobacco products in much greater numbers and quantities. The federal government’s own research has also indicated flavored tobacco products are a legal-age market-driven product.

According to Luc Martial, the VP of Government Affairs for Casa Cubana, “The vast majority of what has been and is being said about flavoured tobacco products and the indus-try is tantamount to an outright lie.” Martial holds a senior position within Casa Cubana, a private company that has imported and distributed cigars, tobacco accessories, and convenience products since 1998. Martial has also made numerous senior postings within Canada’s anti-tobacco groups, the national health community and Health Canada (Tobacco Control Pro-gramme).

Martial goes on to state, “Proposed government bans on flavoured tobac-co products and existing legislation are not founded on any fair or accu-rate research data. They are purely anti-business in nature and not about kids or health or accountable tobacco control policies.”

Martial is not alone in his criticism of this legislation and numerous other is-sues have been raised by the tobacco industry. Luc Dumulong the Vice Presi-dent of Sales and Marketing for Distribution G.V.A. believes a ban on flavored tobacco would most certainly affect retailers.

According to Dumulong, tobacco product sales represent between 35% and 50% of a retailer’s sales and forbidding them to legally offer to adult consumers a product of their choice will have a negative impact. Dumulong has surveyed several of his retail customers and estimates a loss of 10-15% is likely to be the final impact. He also believes that small, family operated stores will be affected even more. His con-cern is that stores barely making ends meet now may be forced to close.

Attention by the special interest groups appears to be fo-cused on cigarillos or “little cigars.” These are defined as cigars that weight 1.4g or less and/or have a cigarette filter.

In 2009 federal legislation was introduced in bill C-32 that came to prohibit the use of some flavors in some tobacco products. The result of this bill was that as of April 2010, little cigar products must be sold in packages of 20 and as of July 2010 certain flavors in little cigars are banned.

After 2010, suppliers were able to continue selling flavored tobacco products but only after making design modifications to be in compliance with C-32. Despite the modifications however, health organizations, special interest groups and some politicians sustained media campaigns that alleged

the law was being abused and tobacco companies were cir-cumventing the new legislation to the detriment of Canada’s youth.

As a result, media attention on banning all flavors in to-bacco products has increased dramatically and new legisla-tion is being introduced. Thus far, attempts were made in Newfoundland, PEI, Nova Scotia, New Brunswick, Ontario, Quebec, British Columbia and Alberta. New Brunswick in-troduced legislation but never proclaimed it. Ontario and Saskatchewan introduced legislation but it simply mirrored the federal legislation C-32.

Tobacco suppliers feel the most immediate and seri-ous threat to banning flavors is Alberta Bill 206. This emerging legislation was founded in response to Alberta health groups’ efforts and recommendations. Bill 206 was introduced and passed the first reading in December 2012 and passed a second reading in May 2013.

The concern among suppliers is that the legislation in Alberta would create the foundation and leverage for current similar interests in Ontario, Saskatch-ewan, Québec, and the federal govern-ment.

According to Dumulong there are many questions that have not been answered or addressed by the Alberta government. He questions why small business owners and not only the big cigarette manufacturers have not at least been consulted in order to draft this legislation and why there has been no substantial evidence to support that such a drastic measure will have any real

impact on tobacco smoking. He also points out that ban-ning all flavors in all tobacco products will only direct smokers back to cigarettes and also fuel more organized crime and interprovincial tobacco contraband. He wants to know who will bear the increased costs for policing this policy due to increased criminality.

To address the real issue of keeping kids away from to-bacco products, Dumulong states, “I have yet to see a to-bacco contraband network asking for proof of age! The best way to secure and control underage accessibility to tobacco products is to work with the Alberta retailers. And for those unscrupulous ones selling to under aged, a strict application of the current laws.”

Martial also questions why there seems to be no clear ex-planation by the special interest groups and politicians as to why the rampant use of flavors in a much wider-variety and greater quantity of alcohol products approved for sale by Canadian governments everyday was okay, but flavors in tobacco were not.

Both Dumulong and Martial agree that the Government has the obligation to be transparent and accountable to Albertans, not only to the anti-tobacco lobby groups. For now, Bill 206 re-mains at the Committee of the Whole stage and as of October 2013 there have been no further updates.

TOBACCO PRODUCT SALES REPRESENT

BETWEEN 35% AND 50% OF A

RETAILER’S SALES AND FORBIDDING THEM

TO LEGALLY OFFER TO ADULT CONSUMERS A PRODUCT OF THEIR CHOICE WILL HAVE A NEGATIVE IMPACT.

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With so many challenges thrown at today’s modern fuel-site operator, it can be hard to know exactly where to begin. Operational costs have soared in recent years, as have fuel prices. Inventory control can also be a tough task, depending on specific market variations, location, and even supplier or logistical complications. The list never ends; however, some of the very real problems that face fuel-center operators, thanks in part to new technologies, have very real answers.

Protecting fuel levels and transport is paramount in the ef-

Challenges and Solutions for Modern Fuel Gauging

AS FUEL TECHNOLOGIES CONTINUE TO PROGRESS AND BECOME MORE OPERATIONALLY INCLUSIVE, SOLUTIONS TO ONCE-COMPLEX FIELD CHALLENGES

ARE BEGINNING TO APPEAR

fort to curb product loss and maintain steady and productive profit lines. Still, the untimely malfunction of fueling equip-ment that is relied on every day can impact inventory con-trol and even jeopardize the safety of the operation and its patrons.

One of the keys to an operation’s profitability lies mainly in its ability to safely and efficiently account for, protect and transport fuel from “point A” to “point B.” In order to do this and, in turn, drive profitability, fuel-site operators must rely

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on quality fuel management systems to streamline important operations, prevent theft, account for fuel levels and tank issues, and control the supply of fuel at a very high level of efficiency.

Recent innovations in tank gauging have not only worked to alleviate the pains in-volved in basic operations and functional-ity, but have also succeeded in driving down costs. Many system developers have ac-complished this by moving to a more robust communication platform for their tank-gauge units, including standard options for various connectivity methods. Wi-Fi, Ethernet, USB and even satellites are now common meth-ods of communication. Better programming and software has increased these applica-tions’ overall usability in customer-friendly platforms that have grown tremendously over the past few years.

WHEN A PASS IS NOT A PASSAside from maintaining profitability, fuel-site operators must develop a sense of trust with their tank-gauging equipment. A challenge most operators are faced with is dealing with “False Pass” conditions. Generally, there are four main causes and types of False Pass conditions. One of the more familiar causes is if a tank gauge’s maximum certified monthly throughput

is exceeded or if the gauge’s maximum line capacity is surpassed. Incorrect site characteristics that are entered during tank-gauge configuration can also lead to false pass

testing.Situations like this can arise when tank

gauges unknowingly submit what is com-monly known as a “false positive,” or a leak-test result that incorrectly indicates that a fuel site is in complete environmental com-pliance. These test results can often lead to less-than-optimal operational output for managers, including increased product loss, inaccurate inventory and reconciliation data, and even prolonged leaks that make the site an environmental hazard.

The accuracy of these tests is usually di-rectly dependent upon a mathematical equation and the assumption that these measurements and inputs are accurate. Un-less exact line lengths, types and diameters are known, pressure-decay line leak testing methods cannot perform properly. If a false fail is generated, system downtime is expe-rienced. On the other hand, if a false pass is

generated, then the site is no longer compliant and leaks are unknowingly taking place.

If identified by regulators, allowing false pass test results can lead to increased test scrutiny across all of an organiza-

IF IDENTIFIED BY REGULATORS, ALLOWING

FALSE PASS TEST RESULTS CAN LEAD TO INCREASED TEST

SCRUTINY ACROSS ALL OF AN ORGANIZATION’S SITES, TEMPORARY SITE

SHUTDOWNS, BEING FORCED TO REPLACE

ERROR-CAUSING EQUIPMENT, AND EVEN

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save you time and money

The TLS-450 is future-forward technology and our most fully featured tank guage solution.Designed to monitor and help protect your tanks, it offers industry-lead-ing accuracy and maximum flexibility for your station operations.Manage inventory, deliveries, and alarm information from any computer, smart device/phone, or iPad - anywhere

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XL1022E Cardinal Red

CONVENIENCE & CARWASH CANADA 15MI Petro and MPI

(403) 266-5558 [email protected] www.mipetro.com

Western Canada’s retail petroleum experts.Call us to learn how MPI can

save you time and money

The TLS-450 is future-forward technology and our most fully featured tank guage solution.Designed to monitor and help protect your tanks, it offers industry-lead-ing accuracy and maximum flexibility for your station operations.Manage inventory, deliveries, and alarm information from any computer, smart device/phone, or iPad - anywhere

Ph: 780.577.5700 Fax: 780.577.5701

Please look over this proof carefully to ensure complete accuracy. Check one box, sign below

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OFFICE USE ONLY(FOR REPEAT ORDERS)

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Job Description: Computer Cut Graphics in 7725-31 Medium Grey - Weeded and Premasked .

2010\M

Scale: 1:2.5 (40%) artist: m.desjardns / rep: 038

Source Drawing: ADJF 2007/19797

Rev0:Font:

51XXX

Page 1 of 1 First proof and one revision are included in quoted price. All further changes will be billed out at $95.00 per hour.

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19.625 ins

6 ins

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XL1022E Cardinal Red

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tion’s sites, temporary site shutdowns, being forced to replace error-causing equipment, and even severe fines and penalties that can be levied retroactively if prior faulty testing is proven. And that’s the good news. Because ignored or non-identified false pass readings can lead to some very serious and potentially environmentally threatening conditions.

However, when deciding on a specific tank-gauge system to outfit a fueling operation, how do fuel-site operators know which one will be the smart, economical, accurate and dependable choice to keep fuel levels well maintained and monitored? The answer is often found by looking no further than a con-sole that provides complete tank monitoring, inventory management and environmental-compliance testing through the incorporation of the latest computer technology, which al-lows users to view data remotely from any-where in the world via Internet connection.

MARKET SOLUTIONSOPW Fuel Management Systems, Hodgkins, IL, has recognized the tank-gauging challenges faced by fuel-site operators and has responded with the SiteSentinel® Integra family of automatic tank gauge (ATG) systems. These gauges use Volumetric Line Leak Detection technology, which measures actual leak rates. This prevents the gauges from issuing false line passes due to user error or manipulation; saving time, money and resources.

The consoles in this family of ATGs have been designed to lower installation costs by reducing the number of wires that need to be run to the probes, sensors and leak-detection devices that are connected to its internal I.S. module. It offers a complete site solution that ensures regulatory compliance at all times.

In addition, all devices are automatically detected and con-figured by using the touch-screen interface, making it one of the easiest ATG systems in the industry to install, configure and use. Other tank gauges on the market use a pressure-decay equation and user-provided site data to calculate leak rates. If any of the entered data is incorrect, any leak-test re-sults will be invalid, regardless of their pass or fail status.

In addition, when using outdated tank gauges, operators who had existing devices that needed to be integrated of-ten were required to upgrade their entire system, driving costs up even more. Expensive upgrades to internal hard-ware would also be needed if operators chose to implement system expansions and updates. The overall configuration of fuel-control systems has become menu-driven, focusing on simple tasks and saving more time. These days, even the most affordable systems provide expandable memory, allowing the fuel-site controller to store a virtually unlimited number of transactions. Ease-of-use and installation are both important when dealing with a fuel-control system, and the emergence of affordable turnkey systems has made both achievable. Advances in technology have made field-upgradeable soft-ware a standard feature, eliminating expensive upgrades and

minimizing downtime and ultimately the amount of profit lost.

Using trouble-free equipment is ideal but means very little if that equipment offers limited capabilities. Any fuel facil-ity that operates at all hours requires a leak-detection method that can operate effectively with minimum disruptions to pumping activity. Tank-gauge systems have traditionally offered a method of leak detection called “static leak detec-tion” to ensure that a fuel operator’s sites remain within compliance.

However, whatever equipment you de-cide on, be mindful of systems that can over-promise and under-deliver. Most tank-gauging equipment is not certified for leak-detection purposes, or have cer-tification limits on tank size and monthly throughput levels. This means that even with this equipment installed, the gauges will operate as if the results they provide are accurate and certifiable, even though they are not.

The other side of inventory control in fuel operations is distribution of the fuel. In conjunction with their responsibili-ties to inventory, fuel-site operators must also be able to ef-

SITESENTINEL® INTEGRA FAMILY OF AUTOMATIC

TANK GAUGE (ATG) SYSTEMS. THESE GAUGES

USE VOLUMETRIC LINE LEAK DETECTION TECHNOLOGY, WHICH

MEASURES ACTUAL LEAK RATES.


ficiently control and accurately account for fuel consumption. Automated fuel-control systems can provide these ca-pabilities effectively and cost-efficiently in today’s fuel-site operations. The fol-lowing are some functions every reliable tank gauge should perform:• Reinforce that a site is installed and

operating correctly• Know that any alarms provided by

the system are accurate• Ensure continued environmental

complianceThey should also protect against problems like:• Increased loss of product• Inaccurate inventory and reconcilia-

tion data• Prolonged leaks that render a site an

environmental hazard

ABOUT THE AUTHOR:Pete Neil is Product Manager – Tank Gauge for OPW Fuel Management Systems and can be contacted at [email protected] Fuel Management Systems specializes in the design and manufacture of tank gauges and automated fuel control systems. OPW Fuel Management Systems is a business unit of OPW, the leader in commercial and retail fueling solutions worldwide. You can contact OPW Fuel Management Systems at+1 (708) 485-4200 or www.opwglobal.com.

CONCLUSIONProactively, much can be done to address the challenges facing teams of fuel site operators. As technology continues to develop around this petroleum-based economy, expect to see more of the same. These advanced tank-gauge options enable retailers to create a system of comprehensive fuel information management that can efficiently handle the details of environmental compliance.

Advanced functions like centralized site management, precision inventory rec-onciliation and loss-prevention analysis provide a higher level of fuel-manage-ment capabilities. Higher prices, tougher regulations and growing fuel demand are all expected on the horizon. Being able to withstand the natural ebb and flow of the fueling business and how well each retailer can embrace next-generation tank-gauging systems will be paramount to long-term success.


by Kelly Gray

Canada’s liquor laws are getting a bit of a shake-up. Most would agree that any change in our collection of arcane and ridiculous beverage alcohol regulations has to be positive. Indeed, Canada is home to some of the world’s most restrictive and paternalistic liquor laws. Now it appears there is hope with provinces looking into new forms of retail distribution.

Here in Canada the federal government stipulates each province must be the initial importer or distributor of beverage al-cohol products. It is then up to each province to write the laws gov-erning the distribution and consumption of these products. Each province operates an authority that imports and distributes as well as maintains a staff of inspectors who are responsible for enforcement.

And, while Quebec has long offered beer and wine at private stores and Newfoundland now sells local brew in C-stores, it is re-ally Alberta that has truly broken the mould offering an example to other provinces. Back in 1993 and the Ralph Klein government, the province decided to privatize the sector and shutter its liquor out-lets in favour of a plan that would have private sector stores under government distribution. Alberta would make its money on sales tax and wholesale mark up. What transpired was a revolution in thinking that lowered prices, increased employment and increased revenues to the province from reduced operational expenses. Consider the changes. Before privatization the government operated about 200-plus liquor stores with the private sector running 65 full-product out-lets and 530 hotels selling beer for off sale. Since 1993, private sector participation has climbed to 1,982 outlets in total. These stores have made selection available with an expansion of liquor SKUs up from 2,200 in 1993 to over 19,000 today. Employment in retail liquor stores also jumped with operators now hiring three times the number of staff they had prior to privatization. True, the wages paid to workers declined in an environment that was more akin to traditional retail models than those found in the standard government liquor store and its unionized staff. Still, private industry opened dedicated wine stores with knowledgeable personnel and Calgary is home to more than one location where patrons can discuss the finer points of world leading whiskies with any of the workers. More, Albertan’s got better opening hours, greater convenience thanks to more locations and, with more competition came lower pricing. In fact few jurisdictions in Canada can match Alberta pricing. All this said, Alberta does not allow convenience stores to market beer, wine or spirits.

Responsible RetailConvenience Liquor

CANADA’S C-STORE OPERATORS WANT TO OFFER THEIR EXPERIENCE TO SELL LIQUOR IN NEIGHBOURHOOD STORES. GOVERNMENTS ARE LOOKING AT THE OPTIONS.


By John Wiesehan Jr.

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IN THE CCSA STUDY 87.3 % OF UNDERAGE

CUSTOMERS WERE DENIED TOBACCO

PRODUCTS BY A C-STORE WHILE THE BEER STORE

DENIED JUST 80.7 % (BEER/TOBACCO) AND THE LCBO (LIQUOR) REFUSED 74.6%.

It is only Quebec and Newfoundland & Labrador that have this distinction. Since forever, Quebec has been home to the ubiquitous dépanneur – a C-store that is the place for not only bread and milk but Laurentide and Veuve Clicquot as well. These stores are open early to late and are on corners everywhere in the province. Behind the counters are workers who check for ID, just as they do for tobacco products, and watch for problem

consumption issues. In fact, Canada’s C-store operators have proven them-selves to be the toughest gatekeepers of age-restricted products following se-cret shopper testing to determine sales of cigarettes to minors. In studies done by Health Canada over 10 years and in Ontario by the Canadian Convenience Stores Association (CCSA), the coun-try’s C-stores proved themselves to be the best at keeping age-restricted products out of the hands of minors. In the CCSA study 87.3 per cent of under-age customers were denied tobacco products by a C-store while The Beer Store denied just 80.7 per cent (beer/

tobacco) and the LCBO (liquor) refused 74.6 per cent. Interestingly the LCBO only carded 40.5 per cent of young consumers in the study compared to 73.9 per cent at convenience retailers. In the more inclusive Health Canada report that looked nation-ally to more than 5000 stores of which 87 per cent were from the convenience sector, more than 84 per cent were compliant in not selling to underage customers.

“It makes good sense from the perspective of consumer choice and convenience,” says Mike Hammoud, president of the Atlantic Convenience Stores Association (ACSA). “There’s a pretty good link between selection, accessibility, convenience and sales. And c-store retailers are already heavily regulated and experienced in the sale of age-re-stricted products like lottery and tobacco,” he says.

Hammoud is currently lobbying the New Bruns-wick government to look hard at allowing C-stores to market beer and wine. He looks at the models in both Quebec and Newfoundland as well as those in the US and sees a benefit for the government and local business as well as to consumers who would enjoy greater convenience.

In Ontario, Mac’s is hoping to drive greater con-venience for its shoppers if the government there will see its way to allowing privatized sales of beer and wine. The Mac’s chain is owned by Alimen-tation Couche-Tard Inc. of Montreal, one of the country’s most experienced marketers of beer and wines. Couche-Tard not only sells from locations in Quebec, but as one of the largest convenience store groups in the world, the company offers al-cohol products at its US sites as well as those in a wide range of other countries. In Ontario Couche-

Tard’s Mac’s division proposes to make a $54 mil-lion investment in 27 new stores hiring close to 150 new staff if the province green lights convenience store liquor sales.

BC’s recent announcement that a review of li-quor policy would likely see the province’s grocery stores take on new beer and wine skus has C-store lobbyists scratching their collective noggins. The province has been undergoing continual review of its liquor policy since 2002. Much has loosened up with the province now home to some 700 pri-vate stand-alone beer and wine stores. Hopes had been that the current round of talks would cede some of the market to BC’s convenience industry but the government’s point man, Richmond MLA John Yap, saw the marriage of convenience and liquor as a bad thing.

“When this topic comes up in my meetings with health, safety and law-and-order advocates, the question will surely become that already we see 30 per cent of late-night attendees at a typical BC emergency department report alcohol consump-tion in the six hours prior to their injury or illness,” Yap said. “If we make it more available for the sake of convenience, will we see rates like this rise?” he asks.

The question is really moot, because with gro-cers now offering longer hours and seven-day ser-vice the availability would be little different from what one might find at a C-store. However, C-stores would offer more locations that are staffed with personnel trained to keep age-restricted products out of the hands of minors. More, the province’s private liquor outlets note that already there is ei-ther private or provincial liquor store with-in 100m of most grocery stores in the province. Now with major players like Costco and The Pattison Group getting the go ahead, suggestions are that some private stores may close and employment may suf-fer as grocers ramp up selection.

Behind the move to add liquor to Canada’s C-store selections is a need by retailers to counter the declines in key areas. Already stores are seeing sales of tobacco and related products, goods that are responsible for nearly 30 per cent of sales, be-gin to suffer as Canadians smoke less. Other tradi-tional products such as soft drinks and snack foods are also being impacted by ‘nanny state’ policies that are working to push sales downward.

“Canada’s C-stores are an integral part of the business and social fabric of this country,” con-cludes Canadian Convenience Stores Association President Alex Scholten. “We are the stores right in neighbourhoods and are a key part of every community. With governments impacting in so many ways on our businesses I believe it is incum-bent on them to work together with us for positive change. Altering the regulations so that Canada’s convenience retail industry can market beer and wine would be a great place to start.”


March 31 – April 2 | McCormick Place | Chicago, Illinois

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Canada loves its cell phones. We are among the most wirelessly connected peoples on Earth with more than 20 teleco’s delivering service to some 31.02 million subscribers in both pre-paid and post paid plans. Impressive market penetration indeed given the fact that Canada’s population stands at just above 35 million people. These numbers reveal a market that services virtually every Canadian over the age of 8.Where do C-stores come into the equation?Last year we utilized prepaid wireless plans for 3.7 million phones. True, the numbers for prepaid wireless are declining by roughly 9 per cent in favour of contracted post-paid

CellSellFROM TIME CREDIT TOP UPS TO BATTERY CHARGERS AND SHOCK CASES C-STORES ARE PERFECTLY PLACED TO OFFER A RANGE OF MOBILE PHONE PRODUCTS AND SERVICES.

formats. Still, the dollars are there in large enough quantities for operators such as Petro Canada and 7/Eleven to offer their own stand alone pay-as-you-go programs.

“When it comes to cell phone products you really have to know your customer,” says Jerry Schmidt, an independent operator who runs a single C-store in Toronto. “Pre-paid is perfect for kids and people who have credit issues or those who want to keep phone costs in line.”

Schmidt tells that he considered getting into a program where he could team with a service provider to offer pre-paid cell. The neighbourhood in which his store is located is

by Kelly Gray


“AT OUR STORE WE ARE ALL ABOUT

CONVENIENCE,” SAYS SCHIMDT.

“WHY WOULDN’T WE OFFER CELL PHONE

PRODUCTS? REALLY, IT’S A

MARRIAGE MADE IN HEAVEN.”

a lower income community with a high population of seniors and students. “I think we are a perfect fit, but it was hard to get a program going,” he says noting that he decided to just offer PIN sales where customers can buy top up credits for their in- hand prepaid phones. “I make a small amount per transaction, but it adds up and the sales are easy.”

Schmidt’s example is similar across the country where teleco’s are not terribly interested in promoting pay-as-you-go. In fact, the Canadian Wireless Telecommunications As-sociation reports pre-paid subscriber rates declined last year by 344,471 while post paid contract sales increased by more than 700,000.

This is a trend that is counter to Europe and the US where prepaid options are much stronger in a market where acces-sibility to top ups and phones is high and the cost of prepaid service is much lower. Consider that a European pay as you go plan might cost 15 Euro ($19) for unlimited in country call-ing and 1 gigabyte of data plus 100 text messages. Top ups are available at every gas station, C-store and grocer as well as in cell stores like T-Mobile and O2 that are liberally pep-pered everywhere in all major European countries. The same is true in the US where costs for pre-paid are much lower and service packages more inclusive.

“The bundle packages are just so much bet-ter, consumers have decided to go in this direc-tion,” says Brian Minaker – Manager Consumer Market Management, MTS Allstream, a lead-ing market player with some 500,000 subscrib-ers in both pre-paid and post paid formats. He reports that five years ago, prepaid was a way for consumers to dip a toe into market waters. This trial and error period is now over with con-sumers well acquainted with products, services and costs. Still, prepaid is popular with demo-graphics such as seniors who want to keep a handle on telecom costs and have the security of wireless communications. Parents are also turning to prepaid for phones for their children so that they don’t run the risk of nasty billing overages when kid’s send out too many texts or download too much data.

MTS offers its prepaid phones, CDMA (voice) and HSPA (mostly smartphones) devices, at locations such as7/Eleven where they compete with the chain’s Speak Out cell phone program.

“In convenience stores, we sell 2 CDMA Huawei (M570 & M636). These are our 2 most popular phones due to pricing and don’t require a SIM card, meaning the customer can just buy the handset box from the store and activate later by call-ing MTS. The Convenience Store only has to sell these boxes and customers are directed to MTS Customer Care for any questions or issues,” he says noting that top up options are simple with access via Prepaid Airtime Cards (PIN Cards), on-line (with credit card), by phone (with credit card).

According to Jerry Schmidt operators need to consider whether they want to allocate floor real estate to displays. “If you have a customer base that is employed and earning well prepaid phones will not sell because these customers have

phones and plans already. You have to look at other options such as PIN sales and sales of accessories if you want to get the best bang for your footprint buck,” he says.

At Toronto-based Display Distribution they are making sol-id market inroads with a range of floor displays that include items for mobile communications. “Our best selling (display unit) is the Cell Phone accessory Flamingo display”, says company president Zahir Momin. This floor display takes up just one square foot of space. The entire rack complete with cell phone accessory products, sells for $699.99 and offers a100 percent margin. “We have locations in Alberta, Ontario & Quebec selling 30 plus items each month and in the GTA area there are locations selling 50 pieces a month,” he says.

Brian Minaker remarks here that PIN sales can be anoth-er great addition to a store’s service package. “Customers who purchase a prepaid PIN go about it in a similar way to purchasing a prepaid card. Through the Convenience Store they purchase the PIN, it’s printed out similar to a receipt and they call in with their PIN to add the amount to their prepaid account,” he says, adding that when a new virtual PIN provider wishes to order PINs from MTS they draft an agreement allowing them to sell any denomination of PIN

($15, $30, $60, $100). “Once the agreement is fi-nalized the provider goes through [email protected] to order pins. They can also request collateral from us if they wish to show-case the PINs within their stores.”

Both Momin and Minaker suggest that place-ment of display is key to obtaining the best sales. And, while most would tell operators that a display must be as close to the till as possible to maximize return, the reality is that a well mer-chandised display in a visible location will at-tract not just impulse sales, but will establish the C-store as a centre for cellphone services and products. “This means return business as well as collateral business where a customer comes

in to pick up a $15 top up for a prepaid plan and buys a soft drink and a lottery ticket at the same time,” says Minaker. “This customer now knows he can go to his neighbourhood convenience store to get credits for his phone and this makes him a regular returning customer.

Is it worthwhile to offer cell phone services at your C-store? With tobacco and other key product groups in decline any new revenue stream is welcome. And, while it’s true that pay-as-you-go prepaid cell business is a sector that is in decline, for some segments of Canada’s population such as those with credit or cash flow issues (and this is where you need to know your customer) pre-paid options are the only options for cell service. It is here that Canada’s C-stores can step in to offer a convenience solution for those looking for wireless communication.

“At our store we are all about convenience,” says Schimdt. “Why wouldn’t we offer cell phone products? Really, it’s a marriage made in heaven.”


CANDY END

CAP RACK

BREAD

COOKIE/CRK R

HBC

GM

MULTI

SNACK RK

NUTS

SALTY

HANGING

CANDY

GOURMET CHIPS

MEAT SN

ACKS/JER

KYCLEA

NING

PAPER

PET FO

OD

NUTS &

SEEDS

FROZEN BEVERAGE

& SOFT SERVE

HOTFOODC

ASH

REG

ISTE

RLI

GH

TERS

/IM

PULS

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UY

ITEM

S

CIGARETTES, CIGARS & OTHER TOBACCO

PRODUCTS

HANGING

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HANGING

CANDY

READ

Y TO

EAC

HTO

EAT

HOT

FO

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DAIRY

DELI COOLER ITEMS

RETAIL BEVERAGE

FRESH SANDWICHES/


GRAB HEAT AND

EAT FOOD SERVICE

DAIRY DAIRY

www.core-mark.com

BAKED

GOODS

COFFEE

EVERYTHING YOU NEED

ONTARIO 1 (877) 864.0285


MANITOBA 1 (800) 982.7552

CALGARY 1 (800) 242.8402

VANCOUVER 1 (800) 663.9963

Become a food service destination.

TM

We Do Food Programs

Leading the munchies trend are salty snacks—chips, pretzels, nuts (salted and unsalted), cheese, ready-to-eat popcorn, meat snacks (jerky), and crackers. And, this year, nothing is “off the table” when it comes to flavours!

“Consumers are continually looking for new and unique flavours within the snack category,” shares Kelly Greenspoon, director of Business Devel-opment – Small Format for PepsiCo Food Canada,

Snack Attack: Canadians Looking to

Excite Taste Buds at Local C-Stores

WHETHER OUT ON THE ROAD OR RUNNING ERRANDS AROUND TOWN, IT’S INEVITABLE THE OLD HUNGER PANGS WILL MAKE AN APPEARANCE EN ROUTE.

IN AN INCREASINGLY GRAB-AND-GO WORLD, THE TRADITIONAL C-STORE PROVES AN EXCELLENT SOLUTION TO THE ON-THE-GO TUMMY GURGLES.

citing the Lays® ‘Do us a Flavour’ campaign as a prime example.

Grilled cheese and ketchup, creamy garlic Caesar, perogy platter, and maple moose were among the competition’s four finalists, all of which were suggest-ed by Canadian consumers and “enjoyed great suc-cess in the marketplace because of their uniqueness,” says Greenspoon. In the end, it was maple moose that trumped its way into the company’s permanent lineup.

by Jillian Mitchell

CANDY END

CAP RACK

BREAD

COOKIE/CRK R

HBC

GMM

ULTI

SNACK RK

NUTS

SALTY

HANGING

CANDY

GOURMET CHIPS

MEAT SN

ACKS/JER

KYCLEA

NING

PAPER

PET FO

OD

NUTS &

SEEDS

FROZEN BEVERAGE

& SOFT SERVE

HOTFOODC

ASH

REG

ISTE

RLI

GH

TERS

/IM

PULS

E B

UY

ITEM

S

CIGARETTES, CIGARS & OTHER TOBACCO

PRODUCTS

HANGING

CANDY

HANGING

CANDY

HANGING

CANDY

HANGING

CANDY

READ

Y TO

EAC

HTO

EAT

HOT

FO

OD

DAIRY

DELI COOLER ITEMS

RETAIL BEVERAGE

FRESH SANDWICHES/


GRAB HEAT AND

EAT FOOD SERVICE

DAIRY DAIRY

www.core-mark.com

BAKED

GOODS

COFFEE

EVERYTHING YOU NEED

ONTARIO 1 (877) 864.0285


MANITOBA 1 (800) 982.7552

CALGARY 1 (800) 242.8402

VANCOUVER 1 (800) 663.9963

Become a food service destination.

TM

We Do Food Programs


Spicy is another trend that is anticipated to continue. As such, PepsiCo Foods has continued to innovate with some of their mainstream brands such as Doritos, launching an Inferno offering this year to follow up on others launched in previous years. Cheetos Jalapeno Cheddar is another one with a spicy tinge that has also worked well for the company, she adds.

Ethnic flavors such as Mexican, Thai, Vietnamese, Indian, and Middle Eastern cuisines, where the hot pepper is a major fac-tor, is also trending in the sector. At GCS, Vice President Sales, Aubrey Zelman reports that Gourmet Chips and Sauces (GCS) continues to show excellent growth in the snack industry with signature spicy products such as Habanero XXX and Buffalo-Wing chips, and new and exciting products such as Jolokia (the second hottest pepper harvested) and Ancho Chiliburger chips, all of which are finding their way to new, younger, ex-treme consumers looking for real hot and spicy snacks.

“Hot and spicy continues to be a major force in the Cana-dian market. New hot-and-spicy items are appearing on the shelves of your favourite supermarket and specialty food stores “, and many of the major QSR chains are marketing to the younger consumer who want hotter and spicier tasting items,” says Zelman, citing the hot peppers nutritional benefits (rich in antioxidants, vitamins A,

C and K) and anti-aging properties. “We are the leaders in Canada for hot and spicy snacks, hot sauces and condiments; no one does it hotter than us!”

Similarly, Old Dutch Foods Ltd. is continually adding new excitement across their line-up. New flavours and line exten-sions are definitely trends expected to continue as the industry continues to add excitement for consumers, says Scott Kele-men, national director of Marketing, Old Dutch Foods Ltd.

According to Kelemen, though consumers are still buying more mainstream than BFY (Better For You) in this segment, steps are being taken to appeal to the health conscious con-sumers as well. Over the last three years, Old Dutch Foods has reduced sodium substantially and clearly identifies products that are gluten-free, have natural flavours and colours and are free of MSG across major segments, such as the Old Dutch Potato, Dutch Crunch Kettle Cooked Potato, and the Restau-rante Tortilla Chip line-ups. Low-fat, low-sodium, and high-fibre options are also worthy of notice, he says.

“We understand that snacking is for pleasure and that taste is still key with our consumers. Ensuring our mainstream offerings are the best that they can be and offering a line-up of better-for-you options allows our consumers to make the choice, and we are confident that when

HOT AND SPICY CONTINUES TO BE A MAJOR FORCE IN THE CANADIAN MARKET.

NEW HOT-AND-SPICY ITEMS ARE APPEARING ON THE

SHELVES OF YOUR FAVOURITE SUPERMARKET AND

SPECIALTY FOOD STORES

THE COMPANY’S PRODUCT PACKAGING DIRECTS

CONSUMERS TO THEIR RECENTLY REVAMPED

WEBSITE, WHICH CONTAINS ADDITIONAL, DESCRIPTIVE

NUTRITIONAL INFORMATION. THEIR HIGH-PROTEIN, LOW-

CARB, GLUTEN-FREE BIG CHIEF ORIGINAL BEEF JERKY

IS ALWAYS A FAVOURITE


they try our products they will agree that ‘quality lives here,’” adds Kelemen. “We see that while there are many picking up our multigrain, baked, low-sodium, reduced-salt options, and even our Grand Prix winner, the Northern Choice Chickpea Tortilla Chips, our mainstream offerings are selling extremely well.”

Though mainstream snacks continue to dominate the mar-ketplace, it’s no secret that a great number of Canadians are looking for healthy and convenient snacks. As such, many c-stores now offer a selection of fresh and healthy choices, such as whole grain cereal cups, energy bars, nuts, yogurt, fruit and vegetable juices, trail mix, veggie plates and fruit cups, and beef jerky, to name a few, in addition to an array of healthy meal options.

Scholtens Inc. reports regular sales increases on their healthy options. Top sellers include their All Natural Har-vest Mix, which is an all natural, raw, no salt added, no sugar added trail mix, and the Cottage Country Candy, Nut and Trail Mixes program, which is readily available at better convenience retailers nationwide.

Company president Jack Scholtens attri-butes the sales increase to product place-ment—front and centre in the stores where

the convenient and attractive merchandise display racks are placed by the till—and to the products’ clear packaging re-vealing the high quality product contained in the bag. As well, the adhesive label on each bag doubles as a resealing devise once the package is opened, a development that has further increased sales by 20 per cent, reports Scholtens.

“We expect consumers to be looking more for no salt add-ed, no sugar added, and gluten free products. We give high profile to the fact that we offer the option of healthier choic-es,” he says. “There is strong competition in the lunch market, but consistent, good quality, and fast and friendly service will win the day. It always has and it always will.”

And then there was beef jerky—the food item that lives on both sides of the snack-food fence.

“While some people might say they think beef jerky is a healthy snack, others may consider it to be junk food,” says

Hayley Bendzik, marketing associate at Big Chief. “As consumers are becom-ing increasingly health conscious, and trends like gluten-free continue to grow, Big Chief has devoted more efforts into setting the record straight. When you buy Big Chief beef jerky, you are paying for a convenient, ready to eat, 100%-beef snack


that contains many more nutritional values than an unhealthy snack that might be less expensive.”

Going the extra mile, the company’s product packaging directs consumers to their recently revamped website, which contains additional, descriptive nutritional information. Their high-protein, low-carb, gluten-free Big Chief original beef jerky is always a favourite, says Bendzik, and the 30-gram pouch is a proven bestseller. Additionally, the company’s 120-gram original beef jerky is the best value price-wise, she says, and its new re-sealable bag encourages healthy-eating habits.

“The biggest change we have made is not necessarily to our products, but rather helping the consumer understand the nutritional aspects of Big Chief products through educa-tion,” adds Bendzik. “For instance, many consumers were unaware that Big Chief Original is gluten-free, and that it is a low-calorie snack. We now utilize social me-dia like Facebook, Twitter, and Instagram in addition to our website to help us do this.”

Also leading the healthy-options trend is PepsiCo Foods Canada, one of the first companies to eliminate trans-fats from their products back in 2005. In 2009, the company reduced sodium levels across the Lay’s portfolio by at least 25% per 50-gram serving, and in some cases up to 50%. The launch of Twistos Baked Snack Bites in 2012 further expanded their sensible snack port-

folio, and low-fat and low-sodium versions of snack foods are growing faster (up to +19% from last year).1

However, when speaking to proven product winners, Greenspoon cites mainstream snacks as the bulk of their busi-ness, offering the highest sales growth: “At PepsiCo Foods Canada, we believe that all foods can be enjoyed in modera-tion and we’re committed to offering a wide range of snacks and foods that fit into any lifestyle. We continue to make tre-mendous strides in transforming our portfolio by renovating existing products and innovating to create new ones, while maintaining the great taste and quality that Canadians expect from our brands.”

A great equalizer, the single-serve offerings speak to both the health-conscious consumer and the consumer looking for something new, without a hefty investment. It also helps

reach consumers through brand communi-cation due to a low price point/consumer investment and high-availability, offers Greenspoon.

“We invest with our C&C partners uniquely through single-serve-only, lim-ited-time-innovation products that are targeted toward C-store customers,” she says. “By having these exciting flavours available exclusively in single-serve, con-sumers are drawn to the channel to find these products.”

LEADING THE HEALTHY-OPTIONS TREND IS PEPSICO

FOODS CANADA, ONE OF THE FIRST COMPANIES TO

ELIMINATE TRANS-FATS FROM THEIR PRODUCTS

BACK IN 2005. IN 2009, THE COMPANY REDUCED SODIUM

LEVELS ACROSS THE LAY’S PORTFOLIO BY AT LEAST 25%


South of the Border

This viewpoint is understandable given some the lifestyle marketing campaigns among a few e-cigarette companies. We believe that electronic cigarette manufacturers should only be targeting adult smokers, educating consumers on this unique alternative to traditional tobacco, rather than trying to make “vaping” hip or cool.

Despite the great strides made over the past few decades helping people quit, cigarette smoking is the leading cause of preventable death in the United States, according to the Centers for Disease Control and Prevention (CDC), accounting for ap-proximately 443,000 deaths each year. Moreover, the economic impact of smoking is devastating, generating $193 billion in annual health-related economic losses.

THE MARKET OPPORTUNITYRegardless of the health concerns, an estimated 45.3 million American adults continue to smoke cigarettes. The good news is that nearly 70 percent of these smokers want to quit completely. For many of these people, however, conventional smoking cessation products do not fulfill the sensation of smoking traditional tobacco as does an electronic cigarette.

That’s why the e-cigarette industry is growing at a record rate, probably reaching $2 billion this year. According to Wall Street estimates, the e-cigarette category in the U.S. alone is expected to reach $90 billion in sales over the next 10 years. Findings from the Wells Fargo Securities’ Inaugural E-Cig Forum recently held in New York City confirmed the explo-sive growth and market opportunity for electronic cigarettes, reporting that “there is vast opportunity for the category and it is only just getting started.”

While there is limited scientific research on the ef-ficacy of electronic cigarettes, initial studies indicate that these devices work just as good, if not better

by John Wiesehan Jr. CEO, Mistic Electronic Cigarettes

than conventional smoking cessation products. A University of Auckland study of traditional smokers looking to quit found that 7.3 percent of e-cigarette users had quit within six months, compared with 5.8 percent of those on nicotine patches. The study also found that 57 percent of e-cigarette users cut their daily cigarette intake by half, compared to only 41 percent of people using patches.

The medical community also may be coming around. A Wells Fargo public health panel that was moderated by David Sweanor, adjunct professor of law at the University of Ottawa, revealed that e-cigarettes are significantly less harmful than tradi-tional cigarettes and offer a compelling alternative to smokers. The panel of leading healthcare experts also concluded that more research is needed as well as sensible regulation, but found there is broad be-lief in the benefits of electronic cigarettes and the vast public health opportunity.

THE E-CIGARETTE DIFFERENCEThe words “vape” or “vaping” are derived from water vapor, which is emitted when someone draws or takes a puff on an electronic cigarette. The e-liquid is heated until it produces a mist. There is no smoke, ash, smell or even staining. In fact, most electronic cigarettes contain only a handful of ingredients, such as nicotine, flavoring, water and propylene glycol, which is used as a binding agent in many food products and has been generally recognized as safe (GRAS) for consumption by the FDA. This is a sharp contrast to traditional cigarettes that contain a deadly mix of more than 7,000 chemicals, many of which are toxic and cause cancer.

People who enjoy smoking like the idea of an al-ternative to traditional tobacco. Smokers also like the way e-cigarettes mimic tobacco cigarettes. While municipalities in the U.S. are working to establish lo-cal laws where electronic cigarettes can and can’t be

The $90 Billion Market OpportunityTHE PROLIFERATION OF ELECTRONIC CIGARETTES IN THE U.S. HAS STIRRED MUCH DEBATE BOTH INSIDE AND OUTSIDE THE COUNTRY. THE TREND IS SO POPULAR THAT SOME HEALTHCARE AND CONSUMER ADVOCATES ARE CONCERNED THAT ELECTRONIC CIGARETTES WILL MAKE SMOKING FASHIONABLE AGAIN, CREATING A NEW BREED OF “VAPERS.”


used, most places accept their use where traditional cigarettes are prohibited.

They’re less expensive, too. The cost of most electronic cigarettes is considerably lower than tobacco cigarettes, making it very attractive to traditional smokers. A pack per day smoker of traditional tobac-co cigarettes in the US spends an aver-age of $2,200 annually. For example, the cost equivalent for Mistic refill cartridges compared to a pack of cigarettes is only $1, making it 83 percent less expensive than traditional tobacco cigarettes.

HIGH MARGINS AND GLOBAL EXPANSIONThe e-cigarette category has enormous potential to be a valued player in the global retail sector. Same store sales are rapidly growing for e-cigarette brands like Mistic that have implemented a “razor-razorblade” model. Because e-cigarette products are rechargeable, repeat sales offer high revenue growth opportunities, with margins reaching the mid 40 percent range by 2017, according to Wells Fargo Securities.

Despite the fact that some countries

[Canada] don’t allow the sale of nicotine-infused electronic cigarettes, U.S. companies are exploring international expansion through acquisitions. Many e-cigarette brands also offer zero percent nicotine refill cartridges to accommodate local laws. U.S.-based Lorillard recently acquired SKYCIG, a pre-mium brand of e-cigarettes based in the United Kingdom, while other American companies are ex-panding their retail footprints through international distribution.

While all signs point to continued disruption of the global $500 billion tobacco market by electronic cigarettes, regulation still hangs in the balance, as well as the need for scientific research and the adop-tion of rigorous high-quality standards. The recent decision by the European Parliament declining to ban e-cigarettes speaks volumes to the continued growth of these devices as unique alternatives to traditional tobacco. There’s no doubt that electronic cigarettes will win in the end, sooner than later, and that time may already be here.

Mistic® electronic cigarettes and vapor products are sold in approximately 40,000 retail outlets across the country, including Walmart, Walmart Neighbor-hood Market Stores, Rite Aid Drug Stores, Kanga-roo Express, Circle K, Winn Dixie/Bi-Lo, Food Lion, among many others.

THE COST EQUIVALENT FOR MISTIC REFILL

CARTRIDGES COMPARED TO A PACK OF

CIGARETTES IS ONLY $1, MAKING IT 83 PERCENT LESS EXPENSIVE THAN TRADITIONAL TOBACCO

CIGARETTES.


Social Media Messaging is Great

for Business.PLACING THE CUSTOMER FIRST AND

GIVING BACK IS GREAT FOR THE COMMUNITY.

Amell’s Gas & Go in Pilot Mound, MB


Tyler and Lindsay Amell have been operating Amell’s Gas & Go in Pilot Mound, Manitoba since June 1, 2010. To grow their business in the small

community about two hours southwest of Winnipeg, they decided to renovate the building and upgrade their forecourt equipment by installing new gas pumps and signage. The husband and wife have also built a strong brand in Amell’s Gas & Go, a brand that shows they care about their customers and also offer great products and services. Most importantly, they enjoy running the business and invite their community into the store everyday using creative marketing messages delivered through their Facebook Page www.facebook.com/amellsgas

The store is unique given the fact that it is the only gas station within 15 miles of Pi-lot Mound that is not a card-lock site. As well, Amell’s is one of the only full serve sta-tions in the area and is the

only C-store/gas bar with a restaurant within 35 miles. Their menu is inviting and fresh, drawing in the local community and people passing through. Customers hear about Amell’s great food through the local paper, The Sentinel, or follow them on Facebook to discover the store’s latest offerings.

Acquiring new customers in a small community of 2500 can be challeng-ing. It takes more than just offering a low price or coupons, it means adding value to the community and providing great customer service. Ad-ditionally, making profits has become even more difficult as the cost of la-bour have increased by $2 per hour over just the last 3 years.

The Amell’s have kept their focus on the customer and are using cre-ative and affordable marketing ap-proaches to draw customers into the store. With a small marketing budget they are tak-ing advantage of social media outlets like Face-Book. The Amell’s Facebook page is inviting, has great offers, helpful information, and well execut-ed graphics that illustrate their offerings and make

AMELL’S HELD A WEEKLY DRAW FOR A $25 GIFT

CARD FOR PEOPLE WHO “LIKE” THEIR SITE. THIS

GENERATED LOYALTY AND FOLLOWERSHIP.

CUSTOMERS FREQUENTLY RECOMMENDED THE SITE AS WELL. AFTER RUNNING

THIS PROMOTION FOR EIGHT WEEKS, AMELL’S GAS & GO GENERATED OVER 100

“LIKES”. THIS CREATIVE PROMOTION COST THEM

ONLY $200.

them enticing. The page is updated frequently so customers can always expect something new.

Amell’s posts weekly gas price updates, offers specials, and rewards their customers by entering them to win gift cards. They also use Facebook to find out what customers enjoy and will recom-mend to their friends. In order to gather “LIKES” to their Facebook site, Amell’s held a weekly draw for a $25 gift card for people who “LIKE” their site. This generated loyalty and followership. Custom-ers frequently recommended the site as well. After running this promotion for eight weeks, Amell’s Gas & Go generated over 100 “LIKES”. This cre-ative promotion cost them only $200. They also engaged customers and created buzz by hold-ing a contest to name a new burger offering. This contest was a fun way to interact with customers and also bring them into the restaurant to try the new burger. Many customers like to be asked what their opinion is, especially in a smaller community. Customer feedback is valuable to any business.

Not all of Amell’s advertising is through so-cial media, they also run ads in the newspaper to target the elderly and others in an approach designed to maximize visibility. To further grab customer attention they placed a digital message board at the store’s cash stations where ads can be seen by people dining or paying.

While advertising brings great returns to Amell’s Gas & Go, nothing has a greater impact than their community involvement. You see, the Amell’s are not in business just to make money, they care about their community and feel it is important give

back as well. Smaller communities rely on the generosity and partici-pation of their corporate sponsors.

So how do Tyler and Lindsay Amell measure success? Over the past three years business has doubled and so has their customer count. Additionally, they have in-creased their annual fuel sales by 60%, even though the population in the area has not grown. Growing a business is only one measure of success, you have to take pride in what you do, enjoy your commu-nity, and give back. In that regard, Amell’s Gas & Go is a great success story.

Share your story. If you are a retailer in the Convenience Car-wash Industry, share your suc-

cess tips with our readers. Convenience & Car-wash Canada will feature a retailer each issue.

If you’d like to share your story email: [email protected]


We also understand that for the customer, the most exciting part of playing lottery games is when they win and return to the store to validate their ticket and receive a prize. That winning experience drives business back to your store which is why correctly executing the validation process and payment of prizes is very important.

Speaking of LotteriesThere are lots of things to know… you know?

MANITOBA LIQUOR & LOTTERIES CONTINUALLY FOCUSSES ON PROVIDING PRODUCTS, EQUIPMENT, ADVERTISING MATERIALS, SIGNS AND FIXTURES, SALES AND TELEMARKETING SUPPORT TO HELP RETAILERS SERVICE THE NEEDS OF THEIR LOTTERY CUSTOMERS.

Many changes such as Lottery Ticket Self-Checkers, customer signature lines on tickets, audible winning sounds and customer display units indicating prize amounts, have been made to the ticket validation process in the past years, but the one constant is that Lottery Retailers are at the forefront of the process. Mani-

toba Liquor & Lotteries’ Retailers are paid 2% commission and may process validations and payout up to and including $1,000. Validating and prize payment of a winning ticket is not a complicated process. Here are a few steps to ensure the process is properly managed:

by: Matthew Gottfried


ENSURE YOU HAVE THE FUNDS TO PAY THE CUSTOMER• We understand that balancing customer service needs

with security procedures can be difficult as you do not want to have too much cash on hand.

• The Lottery Terminal is programmed to stop the validation process to confirm you have funds to pay the customer for any lottery validation of $200 or more before proceeding to processing the function. This is a great opportunity to back-out if you don’t have money to payout your winner.

• It is very important that you do not rip the ticket if you can-not pay a prize that. Instead, return it to the customer intact so they can take it elsewhere to complete the validation.

ALWAYS CHECK FOR THE SIGNATURE• There is a line on the front of all online tickets for the

customer’s name and if they have signed the back of the ticket, that is okay too.

• We ask that the customer’s name be printed, a signature provided, or a distinguishing mark to be made by the cus-tomer, identifying ownership of the ticket. As long as one of these exists, you may proceed with the validation.

• If a customer refuses to sign or put their name on the ticket, we prefer that it not be validated. If they dispute the requirement, please refer the customer to the toll free number on the back of all lottery and Scratch ‘n Win tick-ets (1-800-265-3313). They will be advised of the require-ment by a Western Canada Lottery Corporation (WCLC)– Customer Care Representative.

NEED HELP WITH TRAINING?If you are a retailer with new or current untrained staff or if you are looking for a bit of a refresher, Manitoba Liquor & Lotteries has an Organizational Programs & Development department that can address any lottery training issues. Call Tony Batista and he can help you set up an in-class training session at our offices. If you would like to take the training on-line, he can provide you with a link and passwords to allow you or your staff to complete the training on your time and on your personal computer. Either method will provide employees an opportunity to become fully certified to operate a Lottery Ticket Terminal.

On behalf of Manitoba Liquor & Lotteries, we hope that you had a wonderful and warm holiday season. We wish our lottery retail partners all the best for a 2014 filled with peace, health and prosperity.

IN WINNIPEG PLEASE CALL 204-957-2500 (EXTENSION 5555) AND OUTSIDE THE CITY OF WINNIPEG PLEASE CALL 1-800-265-3912 (EXTENSION 5555) AND WE’LL SCHEDULE YOU TODAY.

ENSURE THAT THE CORRECT PRIZE IS PAID• We know how many customers you serve in a day and

that mistakes can happen, but please ensure extra care is taken when providing payment for winning lottery tickets.

WHAT DO YOU GIVE BACK TO THE CUSTOMER?Winning Ticket• Tear and return the winning ticket• Give the customer their validation slip (you can print a

copy for your records)• Pay the correct prizeNon-Winning Ticket• DO NOT tear the ticket• Return the intact ticket along with the validation slip to

the customerIn the event that a customer disputes a prize or that a ticket

should be a winner, please return all tickets to the customer and have them contact the toll free number on the back of the ticket so a representative from WCLC – Customer Care can instruct them on the proper process.

Finally, you must always remember that for all lottery validations and purchases of lottery products, customers must be 18 years of age or older to participate. As a general guideline and similar to other retail packaged goods, if they look younger than 25, ask for I.D.


The Ultimate Guide to Good Hiring Strategies

Have you ever been disappointed to find that someone you

hired was not the person you thought they were?

Where did you go wrong?

Was the problem a set of poor interview questions?

Did you misinterpret the candidate’s responses?

Did you fail to make notes?

Did you fail to check references?

by Barbara J. Bowes


In most cases where a candidate turns out to be a disappointment, the problem lies in the fact that the business owner did not investigate and confirm the specific selection criteria that would ensure success for their organization. When this situation occurs, then the questions used in the interview are also more than likely not going to identify the

best candidate. This forces owners to rely on their first impression and the “good feeling” they get from a candidate.

Yet, hiring mistakes cost money. In fact, it’s well known that a hiring mis-take can cost up to three times the annual salary of a former employee. These costs include such things as overtime for relief staff, time to hire, advertising costs and the time and in-volvement of the other people it takes

to interview candidates.The ideal situation for any business owner is to

have a stable, steady staff complement that you can count on. The following guidelines will help to make this happen.Identify why someone would want to work for you – put yourself in the shoes of a potential new employee. What will they be looking for? Are they interested in full time or part time work? Are they seeking flexibility or consistency? Are they seeking an opportunity to learn new skills, meet new people, or simply gain work experience? What specific benefits can you offer? Keep in mind that money isn’t everything. People are motivated by different things such as independence, challenge, helping, being in a fast paced environment or being able to make improvements in processes or systems. If you can define what you offer, then you will have more success in attracting the right candidate for your job and the better the match, the longer they’ll stay.Define your selection criteria – selection criteria

is defined as the key characteristics that you wish your employees to demonstrate. They

include such things as honesty, integrity, strong personal professional

presence, a good customer service attitude, a positive personality,

good computer skills, a quick learner and/or the ability to be bonded. To start this list, it is best to define the characteristics you would want in an ideal employee

and then create a priority skills list. At the same time, determine

your tradeoffs; in other words, what could you forgive if a candidate did not possess all the skills you are looking for. Finally, prioritize your list and focus on the top five selection criteria.

Determine a marketing strategy – placing an ad-vertisement in the newspaper will attract a wide va-riety of candidates which in turn will require a good deal of time to sift through all the responses. You are much better off to determine where you would find a candidate that matches your description and then target these individuals through your advertis-ing. If you could offer part time work to a student, then post your opportunity at a local school. Don’t forget about the many seniors who are seeking part time work. Post your opportunity at a local seniors centre. In many cases, asking current employees or from frequent customers to refer you to potential candidates is a good strategy.

Pay attention to the resume – how candidates put together a resume shows you something about their attention to detail and their concern about how to present themselves. Look for experience similar to your needs and pay attention to the time spent in each job. On the other hand, especially for young people, don’t discount the candidate if they have moved around a good deal. Save this information for your interview. Stand back and ask yourself, “what impression does the resume leave with you? In many cases, people simply state the job title but they don’t indicate what they did nor what skills they used. Review the resume and make some assumptions about roles and responsibilities and skills and include these issues in the interview.

Prepare your interview strategy – the interview process should be more than simply one face to face interview. Structure the process so that you can do a telephone interview prior to conducting a face to face meeting. This will give you a good idea of telephone manners and tone of voice and may well let you assess personal flexibility, especially when scheduling an in-person interview. Where possible, either include other people in the interview and/or have the candidate meet someone else in your company so that you have two opinions on assur-ing the right fit. If you are able, have each candi-date complete a psychometric assessment as this will confirm what you have learned in an interview.

Be clever about your interview questions – first of all, prioritize the selection criteria and then ask yourself what challenges or problems an employee would face when applying each of the selection cri-teria. Next, create a question that will help to give you the answer you are looking for. For instance, asking a candidate to “tell me about a time when you were challenged by a disgruntled customer”

HIRING MISTAKES COST MONEY. IN FACT, IT’S WELL

KNOWN THAT A HIRING MISTAKE CAN COST UP TO THREE TIMES THE ANNUAL

SALARY OF A FORMER EMPLOYEE.


National Convention & Convenience Store Expo

www.wpma.com/national-conventionCall 1-888-252-5550 with questions on convention events

2014 Keynote: Mike Walsh• Futurist• Innovation Coach• Founder and CEO of Tomorrow, a consumer innovation research lab

The line-up is still building: Check online for exact dates, times and the most current listing of educational seminars and speakers.

Fueling Future Driving to Success

theWednesday, February 18-20, 2014

At theLas Vegas, Nevada, USA

Come Join Us

Five Reasons to be Optimistic about Future Energy

and Power SuppliesRobert Bryce, Prominent Energy Journalist

iPads in the Office Not just a browsing toolPatrick Godfrey & KC Comadena, Founders

Federal Legislative UpdateDan Gilligan, President

Ladies’ Luncheon

Pacific Rim’s Celebrity Chef Sam Choy Culinary ambassador of Hailua-Kona, Hawaii

Obamacare UpdateDavid Leo, President

Panel of Industry Experts moderated by PEI with Eaton Sales & Service and Northwest Pump & Equipment Panel

CCCMag13 NovDec hlf1014.indd 1 10/15/13 12:38 PM

should give you a good idea of both their person-al experience and also how they would go about dealing with this type of customer. Be sure to avoid questions such as, “tell me about yourself” because they are not tied to any selection criteria

and will only result in a general an-swer that doesn’t help you to assess the individual. Limit your questions to approximately 7-10 and select those that fit your priority selection criteria.Document your interview – whereas you will more than likely be interviewing more than one candidate, it is best to document each interview so that you can review later and compare and contrast each candidate. This is important not only for decision making but if ever a

complaint about discrimination arose, you will have documentation to support your decision. Make yourself a chart; include the question on the left, leave a space for your notes and then on the right

Barbara J. Bowes, FCHRP, CMC, CCP, M.Ed is president of Legacy Bowes Group located in Winnipeg, Manitoba. Barbara is also an author, a radio host, public speaker and workshop leader. She can be reached at [email protected]

hand side, give your rating for each answer and the rationale for each. Keep these documents in your files, review the interview questions and reflect on their appropriateness when you need to hire new candidates in the future.Don’t forget reference checks – references are used to confirm experience, expertise, personality and skills. Ask for three references; one or two from a former supervisor and one from former colleague with whom they worked. This is important in order to confirm their ability to work independently and/or as part of a team. When calling a reference, use the same questions that you did for the face to face interviews. This strategy will give you confidence with respect to hiring this person.

Hiring the right person with the right skills at the right time is more than an art, it is a systematic sci-ence. In other words, creating a recruitment strat-egy and structure that is consistently followed will ensure that you attract the right candidates, ac-curately assess the skills and cultural fit and avoid those dreaded hiring mistakes.

HIRING THE RIGHT PERSON WITH

THE RIGHT SKILLS AT THE RIGHT TIME IS MORE

THAN AN ART, IT IS A SYSTEMATIC

SCIENCE.

CONVENIENCE & CARWASH CANADA 37CONVENIENCE & CARWASH CANADA 37


IT IS TRUE THAT IF CUSTOMER LOYALTY WERE EASY TO COME BY THEN EVERY BUSINESS WOULD BE SHOWING SUCCESSFUL PROGRAM RETENTIONS AND EXTENSIVE REVENUE GROWTH YEAR AFTER YEAR. SO, HOW MUCH LOYALTY IS NECESSARY TO BE SUCCESSFUL?

by David Dougherty

Loyalty Car Wash Programs Create Longevity, Revenue Growth

For retail-petroleum or convenience-store site owners/operators who offer a car wash, research data suggests that retaining just 5% more of the customer base can mean as much as a 50% gain in revenues*. For most owner/operators, those kinds of numbers make the investment in loyalty programs well worth it.


So, why does loyalty pay so well and how can an operator achieve a level of customer loyalty that ensures success month-in and month-out? It be-gins with understanding that attaining customer loyalty is not easy—but, when achieved, it pays dividends far beyond any month-to-month reten-tion program or a one-time discount coupon offer.

Those loyal customers, who can be counted on to return to a business time and again for a prod-uct or service, often do it not to save money, but to feel special, feel appreciated or as a conve-nience for their personal time. Like most aspects of successful businesses, loyalty comes down to bottom-line decisions.

What a car wash loyalty program needs to do is build and cement a strong, positive feeling about a specific car wash. In fact, in their fast-paced, jam-packed daily schedules, customers have a lot on their minds. They have a lot of businesses and services fighting for their attention. Any c-store operator hoping to secure loyal customers for his car wash must be willing to fight. Fight for their attention, fight for the right to be their choice for

a car wash, fight to win their loyalty.There are many paths to creating loyal custom-

ers, but it all starts with communication. From the attention garnered by a modern sign that draws potential clients to a certain facility, to the mes-saging they receive at the entry station, to the very real opportunity to land a return customer with a follow-up ”thank you” email, communication is critical to getting customers’ attention, holding it and re-engaging them in the future.

Give customers a reason to return to your car wash. Start by focusing on keeping the messag-ing fresh, don’t let things become static, worn out or dated.

In order for a loyal customer to return, there must be some tangible payoff, a real benefit. If they are on the other side of town, will they make the effort to return, or will they do what is con-venient?

When it comes to a loyalty program, the golden rule is: You get out of it what you put into it. Good c-store operators are good at customer satisfac-tion, which is the foundation of customer loyalty. Customers have to be satisfied before they can become loyal.

LOYALTY NEEDS COMMUNICATIONIf a car wash satisfies a customer, it doesn’t automatically mean they will return for future washes. Therefore, operators must create extra incentives to really make sure customers are loyal. Consider offering loyal customers a special car wash lane or providing “loyalty” discount incentives.

The nail in the coffin for any c-store operator with a car wash is complacency. In order to create an effective loyalty program, an operator must be willing to go the extra mile to communicate and appeal to customers. Assuming a traffic pattern or catchy sign will keep them lining up outside the bay or tunnel year after year is not a sustainable revenue-growth model.

Recognizing that every customer wants great service, ease of use and efficiency in their car wash operation, creating a loyalty program that is successful must begin with understanding the customers’ habits, likes and dislikes. Ask yourself: What kind of experience do I need to deliver in order to create a return visit, or even better, a loyal customer who will return every time?

Actively working to connect with customers, creating and maintaining relationships, should be the first expectation in starting a loyalty program. The challenge is to choose the correct system for a local market based on demographics and com-petition, and to constantly monitor customers to make sure that the car wash is on the winning side of the market.

Whichever loyalty process is selected, the car

The Wash Access Loyalty System (WALS) from PDQ Manufacturing features easy-to-use customer-relationship management software that helps car wash operators build loyalty programs that are impactful and relevant to all of their customers.


wash operator must be clearly focused on it and confident that it is performing well. Change is necessary to keep things fresh, but changing a program or loyalty approach should not be done for the sake of change, it requires having a target or goal from real data or behavioral patterns.

EMBRACE TECHNOLOGYWhen it comes to loyalty programs, technology is a friend. From the intuitive nature of the entry station to the online application the driver interfaces with at a website, to a cellular app that reminds them of existing loyalty credits or a free car wash, technology can manifest itself in many forms.

Good use of technology starts with hardware that needs to be capable of interfacing with the client in an easy-to-use, intuitive manner. Ad screens at entry stations can deliver special of-fers, incentives for loyalty, or possibly even a local business who may reciprocate in a co-branding arrangement. The entry station should also be capable of efficiently assisting the clients through the purchasing process, ensuring a simple pro-cess will help create a positive experience.

Radio-frequency identification (RFID) technol-ogy is one of the most exciting pay-station ad-vancements of recent years, mainly because it makes the entry process hands-free and no-hassle for loyalty-program members. An RFID transpon-der embedded on the driver’s vehicle registers as the driver approaches the wash entrance. An RFID

reader captures the driver’s account information and relays it through the pay station’s software system, which will automatically begin the wash process. The client will not even need to roll down the window. This is another means of focusing on generating that positive experience for your cli-ents.

Subscription accounts offer clients increased flexibility to match their personal lifestyle and individual wash needs. Subscription-based pro-grams are great incentives for the loyal customer. Set up as a loyalty benefit, this style of account allows the client to have their credit cards auto-matically charged on a monthly basis in exchange for convenient use at your car wash.

This type of program illustrates outstanding use of technology to identify the loyal customer who might be offered the special benefit, while deliv-ering a virtually labor-free opportunity to provide special treatment and service at the car wash. Direct withdrawal of the funds ensures that little time is needed by the customer to manage the account. This is a win-win for the owner/opera-tor—and the client.

A reliable system, offering infinite code varia-tions and tracking abilities that can be used to identify the very best customers and to create manageable loyalty programs, is the Wash Ac-cess Loyalty System (WALS). A web-based system that provides the data-management and techno-logical resources needed to operate a successful loyalty program, WALS compiles real data that can be used to make educated decisions on the tendencies of potentially loyal customers.

CONCLUSIONTo provide success for the car wash operating in a competitive petroleum-retail and c-store marketplace, making an effort to set up a loyalty program that can attain a 15% to 20% retention rate is well worth the cost and effort. To ensure that once a level of loyalty is achieved it is not squandered, it is up to the operator to initiate direct communication and utilize technology and data to sustain a program. Sustained success and incremental revenue increases are the payoff for those efforts.*Based on Fredrick Retchheld, the Author of “The Loyalty Effect”

ABOUT THE AUTHOR:David Dougherty is the Senior Product Manager for In-Bay Automatics at PDQ Manufacturing, Inc., De Pere, WI. PDQ Manufacturing is recognized as the technological leader in vehicle wash systems, providing superior quality, outstanding support, and products that contribute to its customers’ profitability. Brands include LaserWash® and ProTouch® In-Bay Automatic Vehicle Wash Systems, SwingAir® and MaxAir® Dryers, Access® Wash Activation Systems, Cortex and WALS. Products are sold and supported worldwide through an extensive distribution network. For more information, visit www.pdqinc.com or call (800) 227-3373. David can be reached at [email protected].

PDQ’s Access S-Series entry station readily accepts loyalty cards and also allows car wash operators to replenish their Wash Access Loyalty System (WALS) accounts.


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The extent of the disaster is determined by how you prepare for the event and how quickly you are able to be back in operation. With this in mind, you need to address all aspects of a situation from what happens if the disaster destroys your location entirely, to whether you can reopen at the same place in a timely manner.

Try to imagine what would happen if you are shut down by civil authority. No warning, you are just told that no, you

DISASTERS NEED NOT BE TOTAL FIRE LOSSES, FLOOD INUNDATIONS OR EARTHQUAKES. IN FACT, MOST DISASTERS INVOLVE A SMALL INCIDENT THAT DISRUPTS YOUR BUSINESS TO THE EXTENT THAT YOU ARE UNABLE TO CARRY ON SERVING YOUR CUSTOMERS.

Disaster Planningcannot go back to your place of business. Think it can’t happen, just look at the situa-tion that arises when a forest fire comes close

to a community. Can your shop be left unattended for a day, a week or even longer, without you being able to do a normal closing procedure?

While it is impossible to eliminate the possibility of some disasters, floods and earthquakes are out of your control, you can mitigate other events. Fire suppression systems such as sprinklers, extinguishers and gas cut-offs need to be inspect-ed and updated on a regular basis. Test your smoke detectors.

by Harry Peterson, CCIB


How much discarded flammable material has piled up and do you keep these materials away from sources of heat. If you are in an area subject to extreme cold, do you have a backup solution for loss of electrical power and the resultant damage that could occur.

Everyone preaches the need for information backup, but that is only part of the solution. Where are you going to run the backups? Do you have inter-net connectivity allowing you to contact your suppliers so that they know you need help, or to stop the delivery of an order? Are you able to contact your staff? Here an emergency list of staff and their phone numbers that are kept off-premises and not just on your computer is a must. Have you ever held a drill whereby staff has to locate and know how to use emergency equipment? Try, it. You may be unpleasantly surprised.

Before anything does happen, get a check list similar to the one below and then think of how you would fill each need if you lost all your records. Please keep in mind that your insurance is not a re-placement for good planning, it is only a tool to help you

THE DISASTER• Know how to contact your insurance broker dur-

ing and after business hours.

• Keep a backup of your computer data and store it off-site or on the cloud.

• Make sure you include payroll, inventory, pay-ables and receivables and keep it current.

• Have information at hand allowing you to contact your alarm reporting station.

• Have a method to get telephone calls redirected to owners, or managers, cell phone.

• Advise all suppliers of a backup method of con-tacting you in the event of a loss.

• Have all documents of incorporation, business license, etc. stored off premises or on the cloud.

• Keep a “grab and go” bag with some first aid items, flashlight, batteries, radio etc near an exit.

THE DISASTER• If necessary – get a new location as soon as possible.

• Secure your existing location to avoid intruders, speak to your security company for assistance.

• Have your security company or a locksmith change locks at the new location.

• Have the post office redirect mail (in BC you may need to produce your business license for this).

• Install signage on your premises, or close by, informing your customers how to contact you.

• If the store computer is not immediately accessible, get a new laptop or tablet.

• Schedule a meeting with your staff to strategize workflow and timing around re-opening.

• Whatever you have had to replace, document it immediately as trying to sort it out later can be a nightmare.

recover what you have lost and if you don’t carry adequate amounts, especially for business interruption, you may never reopen.

Each owner and manager needs to take time to picture how a disaster scenario could happen in their community. Talk to your staff and be proactive in addressing aspects of your oper-

ations that would need to be either controlled, corrected or put aside to handle at a later date.

It may not be imperative to involve your in-surance in the first hours while you try to quickly control the situation. Other instances may have physical aspects where control of the situation is out of your hands. The fire department work-ing to extinguish a blaze means you can put your time to use being on your cell phone call-ing staff, the telephone company, your insur-ance broker, etc.

Pausing for a moment to think of positive ac-tion, as opposed to worrying about the event, can be the best action you take during and after the initial shock. Take a time to prepare

and when the time comes, take a deep breath and start the recovery.

BEFORE AFTER

Harry Peterson is Executive Vice-President SHAW SABEY& ASSOCIATES LTD, one of Western Canada’s largest privately owned insurance brokers.

BEFORE ANYTHING DOES HAPPEN, GET A CHECK LIST SIMILAR TO THE ONE BELOW AND THEN THINK OF HOW YOU WOULD

FILL EACH NEED IF YOU LOST ALL YOUR

RECORDS.

Putting Spam Back in the CanBill C-28 is an attempt to put a stop to malicious electronic messaging. Canada’s business community needs to get on the right side of the legislation

Canada’s electronic world will undergo change this July when much of Bill C-28, the country’s new anti-spam legislation, comes into effect. The Bill seeks to address the problem of mass commercial e-mails (CEM) that currently stands at about 80 per cent of global message traffic. The short take on the Bill is that it will limit online marketers’ ability to obtain your E-address and send bulk messages that clog inboxes. The longer view is that it will create change that will see marketers move to new techniques to reach the largest market in the history of human kind.

Here’s what the bill seeks to achieve.

When the new law is in force, it will generally prohibit the sending of commercial electronic messages without the recipient’s consent (permission), including messages to email addresses and social networking accounts, and text messages sent to a cell phone. The law will prohibit the alteration of transmission data in an electronic message that results in the message being delivered to a different destination without express consent. The Bill also regulates the installation of computer programs without the express consent of the owner of the computer system or its agent, such as an authorized employee. Under the new regs there must not be use of false or misleading representations online in the promotion of products or services. As well, the collection of personal information through accessing a computer system would be in violation of federal law (e.g. the Criminal Code of Canada); and the collection of electronic addresses by the use of computer programs or the use of such addresses, without permission (address harvesting).

Much of what the Bill does

involves the notion of ‘consent’. This may come in the form of an explicit request such as an opt-in from a website or a written note asking for messaging. Those who already have an established business relationship over the past two years may also receive a message as well as those who have made a request for information over the past six months. Those with personal relationships with the sender are free to receive CEM’s, as are those who are classed as volunteers or people with a relationship related to the business. People who have published their e-mail addresses in directories, web pages and business listings are considered fair game to marketers as well as those who have offered a business card at a trade show.

With fines of up to $1 million for individuals and $10 million for businesses, companies need to stay on the right side of the legislation by instituting a list of best practices.• Ask permission• Stay in touch• Provide choices• Keep lists clean• Send only what people want• Segment your lists• Manage your infoMore information on Canada’s new Anti-Spam laws can be found on the Internet at http://laws-lois.justice.gc.ca/eng/acts/E-1.6/index.html

GVA to Add New Lines for Canadian Market

Distribution GVA has announced the importation, for the Canadian market, of two new exclusive premium cigar lines: Fuente Aged Selection & Prometheus.

As part of GVA’s value added “Private Importation Program”, Canadian tobacconists will be soon able to offer to their most astute cigar lovers, such exclusivities as Fuente Fuente Opus X [FFOX] (aka Opus 22 -10th anniversary) and the God of Fire cigars & accessories lines.

FFOX was launched 10

years ago to support the very worthy Cigar Family Charitable Foundation (www.cf-cf.org ) which supports educational endeavors in the Dominican Republic. In addition to the Opus22 10th Release Commemorative Humidors (22 + 1), Fuente Aged Selection will release 1,500 of the 6-cigar assortments encased in the limited edition travel humidors (FFOX 6 for CFCF) and 150 of the Limited Edition.

The Prometheus brand was created in 1992 and named after the god from Greek mythology who stole fire from Zeus and gave it to humans. Prometheus has become a true global brand whose products are now sold at the finest cigar shops in 25 countries. The Prometheus products are known worldwide for their superb quality, and stylish modern designs. Thanks to your generous support, Prometheus and God of Fire have been able to donate over $850,000 to Cigar Family Charitable Foundation from the sales proceeds since its inception in 2004.

NACDA is delighted to announce that Anne Kotha-wala has been hired as the new President of NACDA. Anne as-

sumed responsibility of NACDA as of November 18th, and is quickly becoming involved in the day to day activities. She will be reaching out to members in the coming weeks to hear about your business challenges and how NACDA can best address them.

Anne Kothawala is a bilin-gual, strategic, results-driven senior executive with expertise in stakeholder management, strategy, government relations and communications. She has a solid track record as an associa-tion manager gaining profile and achieving results for several industries. She looks forward to learning more about the convenience store distribution industry and applying her past experience to achieve success for NACDA members.

The NACDA Board of Direc-tors looks forward to work-ing with our membership to enhance our value. We are confident that Anne’s profes-sionalism, leadership, experi-ence and can-do attitude will have a positive and immediate impact to increase NACDA’s profile and the work we do for our members.

Please join us in wishing Anne a warm welcome to the NACDA team!

WHAT’S NEW


Ad IndexBulloch Technologies Inc. ........................................................ 29

Containment Solutions ........................................................... 16

Core-Mark International Inc. ............................................... 2, 23

DirectCash ............................................................................OBC

eGenuity LLC ........................................................................... 42

Gourmet Chips ...................................................................... IBC

Istobal USA ............................................................................... 41

International Carwash Association .......................................... 19

MI Petro/McIntosh Petroleum .......................................... 12, 14

National DSD ........................................................................... 27

OPW.......................................................................................... 10

PDQ Manufacturing ................................................................ 37

PEI ............................................................................................... 7

Pumps & Pressure .................................................................... 15

Tanknology Canada Inc. .......................................................... 13

WPMA ....................................................................................... 36


There are 10 differences between these 2 photos. See if you can spot them.

CHANGEOVER

Differences between left and right photos. Spot all 10.10

1. copper line below celing, 2. black pipe on wall, 3. pale yellow frame around menu, 4. small sign on cookie display, 5. pasteries in tray right side, 6. colour of sign on small jar left side, 7. sign on floor, 8. colour of man’s t-shirt, 9. small label on monitor below man’s arm, 10. text on chalk board right side wall.


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DirectCash Orange Aug 2012.pdf 1 8/23/2012 4:42:41 PM

conv&carwash jan feb 2014 48pgs web

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