Convenience Retailer

New product of the day—Hersheys Rainforest Alliance Certified Bliss Chocolates

The Hershey Company is making the candy aisle a little sweeter with the launch of Hershey’s Bliss® chocolates made with 100 percent Rainforest Alliance certified cocoa. The rollout of certified Hershey’s Bliss chocolates builds on The Hershey Company’s programs in West Africa to increase the income and livelihoods of the region’s two million cocoa farmers.

Last January, Hershey first announced it would make all of its popular Hershey’s Bliss milk, dark and white chocolates from Rainforest Alliance certified cocoa. Certified cocoa is sourced from farms that have met comprehensive sustainability standards that strive to protect the environment and the safety and well being of workers, their families and communities.

Coordinating with ongoing industry and government sustainability initiatives, the Rainforest Alliance certification process utilizes independent inspectors to monitor and audit the labor and farming practices on farms supplying certified beans used to make Hershey products. Hershey and the Rainforest Alliance also collaborate to provide cocoa farmers with training to help them improve farming practices, increase farmer income, Improve labor practices, increase school attendance and address global climate change.

“Hershey’s Bliss chocolates have always been about using distinct, high-quality ingredients to craft rich chocolate with an exceptional creaminess. Now consumers can enjoy the smooth taste of Hershey’s Bliss chocolates and know that they are helping to protect the environment and supporting safe and healthy conditions for family cocoa farmers,” said Kristin Harper, Director for Hershey’s Kisses® and Bliss Brands. “We listened to consumers and responded by giving them an easy and delicious way to enjoy 100 percent certified chocolate.”

Hershey’s Bliss chocolates are available at more than 35,000 retail outlets across the United States. The certified products began rolling out last fall and are continuing to arrive at retailers across the country. Consumers can identify certified Hershey’s Bliss products by the distinctive Rainforest Alliance green frog seal on the exterior bag packaging. Bliss brand chocolates are available in milk chocolate, dark chocolate, white chocolate meltaway, dark chocolate with caramel and crème de menthe meltaway varieties.

In October, Hershey announced its 2020 cocoa certification commitment, a substantial commitment to addressing long-term cocoa sustainability issues in the cocoa supply chain. Hershey will source 100 percent certified cocoa for all of its chocolate product lines around the world by 2020 and accelerate its sustainability programs in Ghana and the Ivory Coast.
Hershey regularly updates its progress on these programs through its Corporate Social Responsibility reporting. More information about Hershey’s cocoa sustainability efforts is available at www.hersheycocoasustainability.com.

The Hershey Company is the largest producer of quality chocolate in North America and a global leader in chocolate and sugar confectionery. With revenues of more than $6 billion, Hershey offers confectionery products under more than 80 brand names, including iconic brands Hershey’s, Reese’s, Kit Kat, Twizzlers, Jolly Rancher and Ice Breakers. For more information on the company and its brands, visit www.hersheys.com.

Retailers Respond as USDA Cracks Down on SNAP Fraud

By Lucas Witman

On February 6, the Ulster County, N.Y. Sheriff’s Department arrested three employees of Star Grocery, a convenience store in the city of Accord, after a two year police investigation revealed the trio’s alleged efforts to defraud the Supplemental Nutrition Assistance Program by using electronic food stamp cards to purchase non-food items. Just weeks earlier, on January 25, the owner of a convenience store in Arlington, Texas was sentenced to five years in federal prison after pleading guilty to illegally using SNAP cards as part of a larger wire fraud scheme. And in November, eight owners and clerks at five convenience stores in Brockton, Mass., were similarly arrested for allegedly trading customers’ SNAP cards for cash.

Currently, nearly 46 million Americans receive food stamp benefits, with the average monthly allowance standing at $132 per person. In total, the budget for the federal SNAP program stands at $75 billion. The enormity of the program potentially makes food stamp fraud an extremely profitable enterprise. And the vast bulk of those who are profiting off of such illegal activity are not those who own and work at major grocery stores, but rather convenience retailers and store clerks.

There are several common ways through which criminals illegally profit off of the SNAP program. First, some retailers and store clerks work with customers to trade electronic benefits for cash. For example, a customer with a $100 Electronic Benefit Transfer card may be illegally given $60 in cash. The retailer then charges the customer the full $100 for the transfer, pocketing the balance. In another scheme, a retailer may pay a customer for their EBT card and then use that card to purchase groceries for resale in their store. Finally, another method of SNAP fraud occurs when those enrolled in the program sell their physical EBT cards on the black market, later requesting replacement cards from the government.

The cost of SNAP fraud to taxpayers is not insignificant. The government estimates that each year, food stamp fraud costs $750 million, one percent of the program’s entire budget. Despite the fact that penalties for engaging in such fraud are severe, the potential rewards are too attractive for some unscrupulous retailers to ignore. Investigators allege that Pat’s Mini Mart, one of the accused Brockton convenience stores perpetrated as much as $70,000 in fraudulent transactions each month, giving each owner a $30,000 cut.

As food stamp fraud continues to grow in prevalence and cost, the U.S. Department of Agriculture has recently announced a renewed effort to eliminate fraud from the SNAP program. The department has pledged to work more closely with stores to identify fraudulent retailers and eliminate them from participating in the program. When applying to participate in SNAP, retailers who have a history of fraud, who have been proven guilty of other violations of business integrity or who have a history of non-compliance with government programs will be denied admittance. In addition, the USDA is also updating its Anti-Fraud Locator system to better identify suspicious behavior and stores that should be investigated.

“Our message today is clear and firm: abuse of SNAP benefits—and the American taxpayer’s trust—will not be tolerated and carries severe consequences,” said Kevin Concannon, USDA Under Secretary for Food, Nutrition and Consumer Services. “In the coming year, we will take further steps to strengthen SNAP integrity and continue to hold accountable those few bad actors that try to take advantage of the program. We are committed to ensuring these dollars are spent as intended, helping millions of American families put healthy food on the table.”

There are a number of ways that convenience retailers can work to ensure that their stores and employees are in compliance with the SNAP program, thus avoiding potential criminal investigations, huge fines and potential jail sentences. First, retailers that participate in the program should take steps to adequately train their staff on SNAP rules and procedures. An acceptable training program for new employees includes reviewing program regulations, educating employees on how to use point of sale equipment when handling SNAP transactions and reviewing what are approved and non-approved SNAP purchases. In order to prove compliance with USDA-mandated employee training requirements, retailers must carefully document who took the classes and what was covered.

Many convenience retailers are going a step further in ensuring SNAP compliance by working with outside tech companies to monitor their own stores for potential fraud and to document SNAP purchases in the event that an accusation of fraud by the USDA surfaces. Agilence, Inc., a company specializing in retail analysis and point of sale video auditing, last year launched a video auditing service to help retailers document SNAP compliance. Members of Agilence’s trained auditing team monitor video footage at participating stores to identify when an employee or customer may be attempting to defraud the program. And in the event that the USDA chooses to conduct its own audit of the retailer, Agilence can then provide the department with a detailed account of every transaction in which food stamps were tendered, along with video footage of those transactions.

As the government continues to crack down on those stores that are potentially defrauding the SNAP program and as penalties become increasingly steep, it is the onus of retailers to prove that they are abiding by the rules and regulations of the program and to protect themselves from unscrupulous customers and employees. 

New product of the day—Lil’ Auto Booster Cables

Jump-start your automotive section sales with Lil’ Auto Booster Cables & Rayovac batteries and flashlights, three new offerings from global consumer products company Lil’ Drug Store. Do not leave your shoppers stranded. These newly available auto and general merchandise essentials give your customers a backup plan for when they encounter those inevitable travel snafus. With a handy tote bag and simple step-by-step instructions, Lil’ Auto Booster Cables give winter drivers peace of mind, while providing great profits for retailers. Rayovac batteries and flashlights are another winter staple and a must-have for every convenience store’s general merchandise section. Don’t miss out on big sales. Stock up on Lil’ Auto Booster Cables and Rayovac Batteries and Flashlights from Lil’ Drug Store Products. Lil’ Auto Booster Cables are available now at convenience stores nationwide at a suggested retail price of $12.99. Rayovac flashlights are available at a MSRP of $2.99 to $8.99. And Rayovac Batteries are available at a MSRP of $5.99.

Lil’ Drug Store Products
877.507.6516
www.lildrugstore.com

Product of the day—Active D’Lites

The proprietary formulation of Active D’Lites is anchored on pre- and probiotics. Probiotics are live microorganisms that promote the body’s digestive and immune systems. Research has shown that the largest immune system in the human body is the intestines—the part of the body where probiotic bacteria is found. The presence of probiotic bacteria helps the body fight infection and improves intestinal functioning. Harnessing the power of these beneficial bacteria, Active D’lites has created chocolate and ice cream bars that can be enjoyed on a daily basis without worry of getting off track from weight-loss goals. With 9 grams of fiber and zero grams of sugar or net carbs, each chocolate bar is designed to help you maintain your figure while enjoying the health benefits of probiotics. Instead of giving up because of a frustratingly restrictive diet, go ahead and indulge in Active D’Lites chocolate and ice cream bars, available in almond, caramel, chocolate crisp and peanut butter varieties. Active D’Lites is sure to give health-conscious consumers a healthier body and a satisfied sweet tooth.

Active D’Lites
435.232.3646
www.activedlites.com

Alula Making it Easy for Retail Customers to Exchange Gift Cards for Cash

According to the National Retail Federation, the U.S. gift card industry is responsible for annual sales of $28 billion. However, Time Magazine recently reported that as much as $2 billion in sold gift card value went unredeemed last year. With almost 8 percent of all gift cards languishing unspent, it is likely that most shoppers have at least one such ignored card in their wallets. Now, one company is making it possible for consumers to conveniently exchange unwanted gift cards for cash, all while running their usual day-to-day errands.

Recently introduced in a handful of stores across the United States, Alula is already garnering significant media attention as an innovative new addition to the retail landscape. The company operates a line of self-service kiosks where customers can simply insert unwanted gift cards and receive cash on location. Much like the popular Coinstar cash-for-coins kiosks, Alula gives the customer a voucher that can then be redeemed for money at the store register. Each gift card traded is worth between 60 and 85 percent of its original value.

Alula prides itself on its simplicity. There is no need to haggle with a store salesperson. There are no mail-in rebates. The customer receives cash in hand in a matter of minutes. The company is also working hard to protect its customers and eliminate potential fraud, by requiring users to
identify themselves and limiting the number of gift cards that can be redeemed in a given period.

Currently, Alula accepts gift cards from over 170 companies, including major retailers like Best Buy, Target and Home Depot, national restaurant chains like Chili’s, Cheesecake Factory and Olive Garden, entertainment companies like Cinemark, AMC Theaters and Ticketmaster and convenience store and fuel retail chains, such as Shell, Texaco and Exxon Mobil. Gift cards purchased by Alula are resold at a discount through other channels and company partners.
Currently, Alula is available at Columbus, Ohio-area Giant Eagle locations, Phoenix-area Safeway locations and Chicago-area Jewel-Osco locations. More Alula kiosks are expected to launch in the near future.

For more information on Alula, visit www.alula.com or call 855.462.5852.

New product of the day—Popcorn, Indiana Fit

Popcorn, Indiana®, innovator of all-natural popcorn snacks, recently announced the debut of Popcorn, Indiana Fit™, a new line of better-for-you popcorn now available nationwide. Boasting amazing taste and crispy crunch, but less than 40 calories per serving and with just 2 g of fat per cup, Fit is ideal for those who are looking to snack smarter but who do not want to sacrifice on flavor. Popcorn, Indiana’s chefs, masters in the art of creating delicious high-quality snacks, crafted Fit in four mouthwatering flavors: sea salt, parmesan & herb, extra virgin olive oil and onion dijon. Two of the flavors, extra virgin olive oil and sea salt, will carry the Non-GMO Project Verified seal. As with all Popcorn, Indiana products, Fit contains whole grains, is certified gluten free by the GFCO and is free of artificial flavoring and preservatives. “With this new line, snackers can have it all,” said Hitesh Hajarnavis, President and CEO of Popcorn, Indiana. “With every delectable bite, Fit features a fresh and savory taste that puts the fun back into guilt-free snacking. There is no need to make any compromises.”

Popcorn, Indiana
800.707.4444
www.popcornindiana.com

Consumers Willing to Pay a Premium for Local Foods According to New Study

A new study by global management consulting firm A.T. Kearney delves into how consumers are increasingly embracing the local foods trend. Across a variety of measures, consumers indicated that local food is a much more important consideration than organic food. The study also revealed that consumers have trust issues when buying local food at national and big box retailers.

The results of the study, “Buying into the Local Food Movement,” show that consumers embrace local food options for a number of reasons. First, 66 percent of those surveyed believe it helps local economies. Next, 60 percent believe it delivers a broader and better assortment of products. And third, 45 percent believe that local foods provide healthier alternatives. Almost 30 percent of grocery shoppers say they would consider purchasing food elsewhere if their preferred store stopped carrying local foods.

Trust is a major issue with consumers when purchasing local food. When asked about the trustworthiness of different formats to deliver local food, farmers markets and farm stores rank first, followed by natural food markets, local food markets, national supermarkets and big box retailers. Online retailers were ranked last. To overcome the trust gap, national supermarkets and big box retailers need to excel in assortment and presentation.

When asked if they believe organic and local food contribute positively to sustainability, 68 percent of respondents said that local food contributes positively, while only 50 percent believe organic foods contribute. The implication is that environmentally conscious consumers will seek out local food more actively than organic food.

The study also found that across all income segments, consumers indicated that they were willing to pay a premium for local food, with 70 percent of consumers stating that they are willing to pay more for an food item that is sourced locally.

“Clearly, local food cannot be ignored as a growing segment for the grocery industry, and we’ve learned that larger-format food retailers still have much work to do to earn the trust of consumers in providing quality local food products,” said James Rushing, A.T. Kearney partner and the leader of the study. “But the additional work and costs are worth the effort in the customer loyalty gained.”

In order to further reach out to consumers who are embracing the local food trend, retailers. Must understand that freshness matters. No matter the format, freshness and quality are paramount. It is critical that local food products are adequately presented in terms of shelf space and location.
Retailers also need to work to convey the authenticity of local products. It is important for national grocers and big box retailers to overcome consumer suspicions and generate trust for local products merchandised in their stores. Developing dedicated sections with in-store signage is a strategy for highlighting local food assortments. Another option is to create a store brand for local food products.

In addition, retailers should consider the implications for buying and category management. Category buyers must establish visibility within each defined region with regard to price and quantities and make decisions on local assortments.

Finally, do not underestimate the supply chain impact. Having local farmers supply nearby stores, even in limited quantities, will force a reconsideration and redesign of the traditional supply chain model.

To read the report in its entirety, visit www.atkearney.com.

New product of the day—Emergen-C Tangerine 2-Count Packages

Be Ready for cold and flu Season with Emergen-C® Tangerine 2-count packages from Lil’ Drug Store Products. New trial size Emergen-C Tangerine is now available to convenience stores in smaller 2-count packages that are ideal for the convenience channel. Outpacing the vitamin category in growth, Emergen-C contains 1,000 mg of Vitamin C, zinc, quercetin and antioxidants to enhance and support the immune system. In addition, it contains seven B vitamins, including B1, B2, B3, B6 and B12, which work together to enhance energy naturally. Because Emergen-C contains no caffeine, there is no crash that is so often associated with other cold and flu products. And as the product is replete with electrolytes, it is designed to reinvigorate you throughout your day. Emergen-C truly offers all of the formula, flavor, fizz and fun you are looking for. Emergen-C Tangerine is now available in convenience stores from Lil’ Drug Store Products at a suggested retail price of $1.99.

Lil’ Drug Store Products
877.507.6516
www.lildrugstore.com

New product of the day—Red Bull Editions

Energy drink pioneer Red Bull is once again revolutionizing the industry with the first ever new flavor extensions in the history of the company’s product line. Available now in red, silver and blue cans, Red Bull Editions provide the same energy and functional benefits of the original product, but with the taste of sweet cranberry, fresh lime and fruity blueberry. Available since late 2012 exclusively at 7-Eleven stores, as of March, Red Bull Editions are launching at retailers nationwide. Red Bull Editions differ little from the original product, providing the same energizing ingredients, but with enticing new tastes. Red Bull chose the three new flavors specifically because of the way they compliment the original Red Bull energy drink. Red Bull Editions join the company’s already immensely popular product portfolio, which includes original Red Bull, Red Bull Sugar Free and Red Bull Total Zero. The new Editions are available in 8.4-oz. cans at the same suggested retail price as a regular Red Bull.

Red Bull
310.393.4647
www.redbullusa.com

NRF Applauds Recent Proposals on Immigration Reform

The National Retail Federation has issued the following statement from President and CEO Matthew Shay on recent proposals to reform the immigration system:

“Our current immigration system is broken and unworkable, and it is in desperate need of reform. We applaud the President’s commitment and Congress’ resolve to address immigration reform this year.

“NRF has been and continues to be a strong advocate for bipartisan, comprehensive immigration reform.

“In order to compete in the global marketplace, where trade and talent are borderless, the United States needs an immigration and visa system that is both agile and responsive, and addresses employers’ needs and demands and those of today’s more agile and transient workforce.

“NRF will continue to support practical, comprehensive immigration reform that protects employers, retailers and the broader workforce.”

As the world’s largest retail trade association and the voice of retail worldwide, NRF represents retailers of all types and sizes, including chain restaurants and industry partners, from the United States and more than 45 countries abroad. Retailers operate more than 3.6 million U.S. establishments that support one in four U.S. jobs—42 million working Americans. Contributing $2.5 trillion to annual GDP, retail is a daily barometer for the nation’s economy. NRF’s Retail Means Jobs campaign emphasizes the economic importance of retail and encourages policymakers to support a “Jobs, Innovation and Consumer Value Agenda” aimed at boosting economic growth and job creation. For more information, visit www.nrf.com.