Convenience Retailer

Product of the Day—Arma Energy SNX

ARMA Energy SNX offers a line of snack foods with energy dosages on par with leading energy drinks. The company recently released two new products Cobra Kettle Cooked BBQ Chips and Hellfire Hot & Spicy Tortilla Mix, both sure to give your snacktime a boost. Cobra Smoked BBQ Potato chips are cut from the freshest potatoes, kettle cooked in sunflower oil and seasoned with chili pepper and maple sugar, delivering both a sweet and spicy flavor. Hellfire Hot & Spicy Tortilla Mix is a carefully selected assortment of almonds, peanuts, pepitas and corn sticks mixed with chipotle and paprika, topped off with Cheddar and Romano. It’s a hot and spicy party mix with a zesty Tex-Mex flavor. One bag of Cobra Kettle Cooked BBQ Potato Chips delivers more energy than a regular bag of kettle style potato chips. Infused with caffeine (70 milligrams), taurine (1000 milligrams), and a host of B-vitamins (70 milligrams), it is comparable to the leading energy drink. Whether you’re snacking at work or barbecuing with friends this summer, Arma Energy delivers the charge you need to wage the war on fatigue and hunger.

In the News—Court Rules RYO Retailers are Tobacco Manufacturers

Less than two months after the federal government issued new guidelines for retailers who offer roll-your-own tobacco services to their clientele, RYO shops are already shutting down across the country. And now many of these retailers have lost what could have been their last hope for staying in business.

When Congress passed a new transportation bill in July, many lawmakers were likely unaware of the impact the bill would have on hundreds of RYO tobacco retailers nationwide. This is because they may not have known that Sen. Max Baucus slipped into the bill a rider which reclassifies RYO tobacco retailers as manufacturers and also reclassifies the tobacco they sell in a higher tax category. Now, in order to stay in business, these retailers must apply and pay for manufacturer licenses. For many, this is an impossibility, as their shops are in areas zoned for retail only. In addition, their businesses are further crippled by the fact that higher taxes are forcing prices up, alienating a customer base that is attracted to RYO cigarettes largely because they are cheaper than pre-manufactured brands.

This week, a federal appeals court in Cincinnati bolstered the U.S. government’s position that RYO tobacco retailers are manufacturers, a decision which could be the final nail in the industry’s coffin. The court argued that in passing the federal transportation bill with the RYO tobacco rider, it ended any vagueness which previously existed as to the classification of RYO tobacco retailers.

Proponents of this reclassification of RYO shops argue that their owners were merely taking advantage of a tax code loophole, which is now closed. In addition, large tobacco manufacturers argue that this change will remove the unfair competitive advantage that RYO retailers previously held within the larger industry. Finally, the new law is expected to generate $100 million annually in additional government revenue.

Currently, there exist around 1,000 stores nationwide, which offer RYO tobacco. It is uncertain how many if any of these operations will be able to remain viable under the new federal guidelines.

*photo by Raul Lieberwirth

New Product of the Day—Seagram’s Sparkling Seltzer Water

Whether it’s a backyard barbecue, a day on the golf course or just a little break at the end of your work day, nothing beats the heat better than the cool taste of Seagram’s Sparkling Seltzer Water. Just in time for summer, Seagram’s recently introduced four new naturally flavored sparkling waters that are sure to add serious refreshment to your day. The new flavors include Key Lime, Orange Citrus, Blackberry Raspberry and White Peach. All five drinks are sugar-free, calorie-free and caffeine-free.

Simple and fresh on the inside, Seagram’s Sparkling Seltzer Water also features a fresh, modern look on its packaging, adding some simple refinement to any occasion. “Whether you’re celebrating a special occasion or just looking for something new and interesting to help unwind at the end of the day, Seagram’s Sparkling Seltzer Water offers the true taste of comfortable sophistication,” said Sabrina Tandon, Director of New Growth Platforms, Coca-Cola North America, parent company of Seagram’s. “These beverages are a perfectly simple option that can help you recharge or relax anytime, anywhere.”

The Coca-Cola Company
www.seagramsmixers.com

Cash Register Services Integrates VALID Check Cashing Systems

Cash Register Services, Inc. recently announced the integration of VALID Systems’ state-of-the-art check cashing technology into its register system. CRS joins a number of major players in banking and financial services in VALID’s growing network of customers and partners.

CRS has been piloting its use of VALID check cashing technology in 100 stores and will begin offering the system to its thousands of customers immediately. This new integrated approach is easier and faster for customers and clerks to use, and it will allow service to a wider range of customers in a safe and secure manner. The move represents a major step forward in retail check cashing.

The new system integrates existing hardware alongside new technologies. The verification and approval process is fully automated and takes less than two seconds, with the entire transaction being under one minute.

By bringing industry leaders together to optimize this program, VALID has once again demonstrated its capacity to advance financial services. It is this flexibility and strategic vision, as much as its groundbreaking technology, that has led to the success of the program. VALID believes CRS’s program is a strong model for the industry, providing consumers with immediate access to cash and the convenience of one-stop shopping.

“CRS is a national leader in point of sale systems and VALID’s retail product was designed with companies like CRS in mind, offering the safety, cost-effectiveness, speed and convenience vital to implementation and operation in a multi-store environment,” said John Templer, Jr., CEO of VALID. “We look forward to helping CRS deliver robust growth in the years to come.”

Steven Watters, CRS President, said, “We are excited to offer VALID’s advanced check cashing solution to our customers. Here at CRS, we strive to provide the most sophisticated and innovative answers for our customers, and I have no doubt VALID’s check cashing solution will serve as an answer to customers’ needs.”

Headquartered in Fort Worth, Texas, VALID Systems’ leadership team has delivered cutting-edge products to the underbanked financial services space for over 20 years. VALID’s products are deployed coast-to-coast. Its customers include top banks, financial services companies and retailers. VALID has a fast, flexible, low-cost approach to better attracting and serving new and underbanked consumers. For more information on VALID, visit www.validadvantage.com.

New Product of the Day—AeroShot Chocolate

Recently launched nationwide, AeroShot Chocolate is an aerodynamic chocolate product invented by Harvard professor David Edwards that delivers the taste of chocolate without the calories. Using a small lipstick-sized tube, consumers draw fine particles of chocolate into their mouth for a unique chocolate experience. Following the widely reported launch of AeroShot Energy earlier this year, AeroShot Chocolate uses the same patented delivery system to deliver high-quality, imported dark chocolate with no added caffeine. “Delivering chocolate particles through the air to the mouth, with sizes small enough to enter the mouth and too large to go beyond it, [Aeroshot] provides the taste sensation of pure chocolate,” said inventor David Edwards. “The chocolate melts immediately upon landing in your mouth. Since the particles are so small and uniformly dispersed by the air, the taste is immediate, too.” Aeroshot is available in three delicious flavors, pure chocolate, mint chocolate, and cherry chocolate.

AeroShots
www.aeroshots.com

MoonPie Increases Sales with Fresh, Updated New Packaging

MoonPie, the iconic Southern brand of marshmallow cookie sandwiches, recently updated its look with an entirely fresh, new package design. And the revised packaging is already generating solid sales growth in select accounts nationwide.

“It had been nearly two decades since MoonPie made a major change to its packaging, so this was an important decision with strategic implications for our company,” said Tory Johnston, Vice President of Marketing at Chattanooga Bakery, Inc. “It was time to take an honest, fresh look and to further distinguish our brand for a new generation of consumers.”

“The feedback on MoonPie’s previous color combination was that it didn’t set them apart when you saw it on the shelf,” said Terri Goldstein, CEO of The Goldstein Group. “When we did a competitive analysis, we observed the blue-and-white package themes playing prominent roles in the snack cake and cookie categories across many leading brands.” These observations were confirmed in the verbatim comments from focus groups.

The Goldstein Group’s analysis and research led the design team to determine the best way to retain the celestial theme MoonPie was known for, while contemporizing a nostalgic Southern brand and differentiating MoonPie from its neighbors on the shelf.

The new MoonPie packaging was completely overhauled, with an emphasis on a darker blue midnight sky, accented with whimsical lighter blue swirls, all creating a unique, fresh look in comparison to MoonPie’s competitors. White cloud-like art was used to convey the fluffy texture of marshmallow, while adding depth to the graphic. Small white stars complete the night-sky feel. And new size-specific badges call more attention to size.

“We love how the new packaging celebrates the night sky, overtly plays up the ‘moon’ part of MoonPie, and also transforms the white—which holds big brand equity for us—into a fluffy cloud,” said Johnston.

Johnston said that while the design was heartily accepted in consumer research, there was considerable thought and discussion about the actual product shot of the MoonPie on the package. “The hero shot is probably the thing The Goldstein Group had to work hardest to persuade us to reconsider,” said Johnston. The Goldstein Group created a new digital illustration that accentuates and highlights the appetite.

“It is nice to see consumers are responding favorably to the new look and feel,” said Johnston. If early sales results of the MoonPie Minis are any indication, the new package design and digital rendering have hit the mark.

With the acceptance of the new package design and the resulting sales growth, Chattanooga Bakery, Inc. is moving forward to integrate the new design in to all its MoonPie product lines. For more information on MoonPie, visit www.MoonPie.com

In the News—Calif., Ill., Conn. in Lead as Gas Prices Reach Record High Nationally

With drivers paying an average $3.72 per gallon nationwide, average fuel prices reached an all time high for today’s date. The previous record price for August 20 occurred in 2008 when the average per gallon cost for fuel was $3.717. Last year, drivers paid just $3.578 per gallon on the date.

Drivers in California are currently facing the highest gas prices in the continental United States ($4.099/gallon), followed by Illinois ($4.047/gallon), Connecticut ($3.978/gallon) and Washington ($3.966). Chicago, San Francisco and Santa Barbara lead the nation as the metropolitan areas with the highest prices at the pump. South Carolina has the distinction of offering drivers the lowest average gas price in the nation ($3.411). This is followed by Arizona ($3.431), New Mexico ($3.451) and New Mexico ($3.47).

Industry experts predict that gas prices are going to continue to rise over the coming weeks, with more daily records sure to be broken. By Labor Day weekend, the average national fuel price will likely hit $3.75 per gallon.

There are a number of reasons currently being cited as to the recent rise in fuel prices. Problems with the U.S. fuel infrastructure including recent fires at a Chevron refinery in California and a BP refinery in Indiana have resulted in shortages in some regions of the country. Concerns over the economies of Europe are impacting the trade in oil futures. And perhaps most significantly, the drought plaguing our nation this summer has deeply damaged the U.S. corn crop, precipitating higher ethanol prices and, subsequently, higher prices at the pump.

With gasoline demand typically waning after Labor Day, drivers can expect a reprieve from high fuel prices after September 3. However, for the time being, most are likely to continue paying over $3.70 per gallon.

*photo by Jose Carlos Norte

New Product of the Day—Lil’ Drug Store Products EZ Bins

Lil’ Drug Store Products, the leading Health and Beauty Care product supplier to the convenience channel recently introduces EZ Bins, a fresh, new merchandising solution for convenience store personal care sections. EZ Bins are the solution to the fundamental problems of convenience store HBC sales, providing high-quality graphics, a single, accessible price point, and clean and consistent merchandising. The result is an up 300 percent increase in retail sales. EZ Bins offer a top-selling product mix with 9 different SKUs. The bins enable retailers to do 82 percent of their personal care item sales, while utilizing just a compact three-foot section of retail space, maximizing space efficiency as well as retail sales and profits. Raise the bar for your HBC sales with sleek branding and a smart product mix, by introducing EZ Bins from Lil’ Drug Store Products into your convenience store. Lil’ Drug Store Products markets over 250 convenience-size health and beauty items. Their products are available in more than 100,000 locations across the country.

Lil’ Drug Store
877.507.6516
www.lildrugstore.com

Majority of National Brands Now Invest in Local Marketing Initiatives

According to a recent study by Balihoo, the premier provider of Local Marketing Automation technology and services, 66 percent of national brands surveyed said they are investing some portion of their budget in local marketing. However, levels of local marketing investment continue to vary widely. The survey also revealed that many national brands lack knowledge of the Return on Investment they receive from local marketing.

When asked what percentage of their overall marketing budget is allocated to local marketing, 21 percent of national brands said they invest a quarter or more of their total marketing budget into local. On the other hand, 29 percent said they allocated only 1-5 percent of their marketing budgets in local marketing. Fourteen percent said they allocate 6-10 percent in local marketing initiatives.

“It’s impressive that twenty-one percent of national brands are allocating a quarter or more of their total marketing budgets to local marketing, demonstrating the growing need for brands to engage with consumers closer to the point of purchase,” said Pete Gombert, CEO of Balihoo. “The survey also shows growing awareness of the important role local marketing plays in driving sales for national brands, especially for companies that use ROI to track marketing success.”

Overall, the survey indicated a lack of ROI measurement by national brands for both national and local marketing campaigns. Fifty-eight percent surveyed said they don’t use ROI as a marketing metric for local campaigns compared with 44 percent who reported the same lack of ROI measurement for national marketing initiatives. At the same time, companies that said they use ROI metrics to measure national campaigns are 35 percent more likely to invest in local marketing than companies that don’t use ROI as a marketing metric.

“National brands that use ROI metrics are gaining insights that enable them to invest more in local marketing, and we expect that trend to continue as ROI metrics are more widely used for both national and local marketing initiatives,” said Gombert. “Local marketing automation platforms can help national brands scale across multiple markets while also measuring local marketing ROI with built in metrics tools.”

Marketers can learn more about the study and download a micro-study report brief with charts, graphs and more detailed results by visiting http://info.balihoo.com.

Product of the Day—SVM Gasoline Promotional Cards

SVM, the global leader in gift cards for businesses, continues its market-leading tradition in developing innovative products for use in reward and promotional programs. Gasoline promotional cards offer businesses unique features to incentivize and reward customer behavior, while also controlling their marketing and promotional campaigns and budgets. Gasoline promotional cards combine the attractiveness of gasoline as a reward currency, the convenience of being able to pay for gasoline at the pump and the flexibility of expiration dates to create an attractive reward solution. Businesses can now create compelling marketing campaigns using gasoline cards with defined durations, controlled costs and nationwide coverage for their promotional and incentive programs. The applications for gasoline promotional cards apply across all businesses and industries, including grocery, retail, services, manufacturing and more. Co-branding and card customization options are also available. For additional promotional products, SVM provides gasoline gift cards from all the major oil companies in the United States, along with Award Codes and e-Gift Cards.

SVM, LP
Jim Speir, Director of Sales
847.553.9105