The conference formally launched this past Tuesday with a well-attended welcome reception at its new home, the convention center of the Paris Hotel. The next morning, during the general session, Keith Canning accepted the gavel from departing AWMA chairman Jon Burkland of Burkland Distributors, East Peoria, Ill.
Canning, president of Pine [image-nocss] State Trading Co., Augusta, Maine, which serves convenience stores in seven Northeast states, led the crowd in a recitation of the Pledge of Allegiance--a Pine State tradition--and a quick meet-and-greet. He then discussed his main initiative for his chairmanship: growing AWMA's InfoMetrics database of distributor store sales data, which currently has 80 participating distributors representing 80,000 c-stores.
"It will allow us to work collaboratively and create a new model of the c-store channel," he told attendees, adding that the resulting data will also enable AWMA to shine a spotlight on the convenience distribution channel and better present its importance to legislators. "With the right tools, determination and willingness to adapt to change, our future is very, very bright," he said.
Keynote speaker Sonja Hubbard, CEO of E-Z Mart Stores Inc., Texarkana, Texas, highlighted cooperation as a "huge opportunity to grow our businesses, profits and future together." She said, "If you want to be incrementally better, be competitive. If you want to be exponentially better, be cooperative."
In particular, Hubbard noted foodservice as an area where distributors, retailers and manufacturers can make quick headway. E-Z Mart has struggled with the category, she said, with sales down 1.6% because the chain had to pull some programs that did not meet expectations. She suspects that a more targeted approach by store may be key, but added, "We need quality products developed for our customers." E-Z Mart would be available for sampling or test marketing such products, she said, provided they fit its needs.
Cigarettes were another area that requires an all-hands-on-deck effort, said Hubbard, whose chain generates 41% of inside sales from the category. The industry needs to coalesce on regulatory issues and excise taxes, she urged, while citing the passage of the PACT Act as an example of how well cooperation can work.
For its part, E-Z Mart has upgraded its tobacco displays and established plan-o-grams for moist snuff and cigars, but has had challenges with keeping new products in stock. Hubbard credited an in-stock compliance assistance program from E-Z Mart's wholesaler, Texas-based GSC Enterprises Inc., as a valuable tool to counter this problem, particularly in the area of smokeless tobacco.
"The No. 1 way to improve customer service is to be in stock," Hubbard said.
Following a breakout of educational sessions, Michael Sansolo, a retail food industry consultant with Sansolo Solutions LLC, and former editor of Progressive Grocer magazine, told attendees about the demographic tsunami about to hit the United States as the population of young and old both grow at rapid rates. Most concerning for business leaders: Many baby boomers are delaying retirement for financial reasons, he noted, and are thus "jamming up the management jobs" that younger employees hope to transition into.
He encouraged businesses to make this industry more attractive to younger workers by providing greater opportunity to learn and advance within their companies, and communicate with them through social media and other "tools of the day." He said, "In 10 to 15 years, this could be an existential problem for you."
Some 200 exhibitors packed the sold-out AWMA Show Expo floor, which included a small Foodservice Pavilion for the first time. Among the booths, sleep/relaxation and energy products were widespread, as well as e-cigarette exhibitors, with a half-dozen new products showcased among them. This is despite the reluctance of some distributors to carry the item due to the continued legal wrangling with the Food & Drug Administration (FDA) over how the product should be regulated.
Roll-your-own machines, another product with an uncertain legal future, were also a topic of discussion at the show and widely seen in the exhibit hall. The U.S. Treasury Department's Alcohol & Tobacco Tax and Trade Bureau (TTB) had ruled last September that retailers who operate RYO machines qualify as manufacturers, and thus subject to new record-keeping and taxation requirements. A preliminary injunction was granted in December to stop enforcement; meanwhile the TTB has appealed the ruling.
At least one major cigarette manufacturer reportedly refuses to sign contracts with businesses that operate one within the store, while the others have not taken a formal stand on the issue. Miguel Martin, senior vice president and general manager at Altria Sales & Distribution, told attendees of an early morning tobacco session at the AWMA conference that RYO machines "are not our business model," and while his company continues to follow the legal developments, it will not issue a formal statement.
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