12 More Big Ideas From the 2017 NACS Show
By CSP Staff on Oct. 26, 2017CHICAGO -- Things heated up on the NACS Show floor and in the educational sessions as the trade show rolled on Oct. 17-20 in Chicago. How will gasoline prices hold up for the rest of this year? What’s new in product innovation? Why are c-stores America’s trash can?
These questions and more are answered right here.
1. Steady as she goes
One word to describe the outlook for oil in the year ahead: predictable. At a NACS Show educational session on fuel price causes and consequences, Denton Cinquegrana, chief oil analyst for Oil Price Information Service, said prices will remain “remarkably steady” in 2017, sticking within a slim range for the remainder of 2017 and into 2018. A huge oversupply of oil, higher-than-average inventories, strong global oil demand and strong refinery margins should keep the forces of supply and demand relatively in check. “Shale’s the game changer,” said Cinquegrana, pointing out that it has insulated the United States from pricing shocks.
2. Confection out of the box
While core business is booming at some of the biggest confectioners in the United States, that’s not keeping these suppliers from innovating beyond candy. At Hershey’s, chefs are crafting foodservice offerings from coffee to spicy Jolly Rancher slushie products, complete with chips of the hard candy sprinkled on top. At Mars, innovative new products such as Alert Caffeinated Gum are helping extend the brand beyond its core chocolate offerings—but that’s not to say the firm isn’t continuing to innovate those items as well. Convenience-store sized seasonal offerings are showing that the manufacturer knows how to innovate within its own central brands but beyond the product itself.
3. Corrode or comply
In an examination of 42 steel and fiberglass underground storage tanks (USTs), the U.S. Environmental Protection Agency (EPA) found that 83% had moderate to severe corrosion, said Carolyn Hoskinson, director of the EPA’s office of underground storage tanks, during an educational session on protecting fuel business investments. Meanwhile, more than 75% of the owners/operators did not know they had corrosion. When equipment corrodes to the point that it is no longer working properly, it may be subject to compliance violations from the EPA, Hoskinson said. She advised retailers to inspect their USTs often and look out for signs of corrosion. For example, when changing out fuel filters, do they appear to contain coffee grounds?
4. Look past the logo
"Common misperception: Your logo is not your brand. It's part of it, but it's so much more," said Scott Willy, co-founder of the Three Sixty Group, Indianapolis, during an educational session titled Creating & Executing a Brand Strategy Without Breaking the Bank. The other parts include color, a consistent typeface and voice, and brand promise (aka a tagline). And when it comes to a tagline, Willy said, "Spend the money to protect it; own it and make it your own." He used Texas chain Kwik Chek as an example, which protects its "krave the kwik" tagline.
5. Plugged in
Are electric vehicles (EVs) poised to disrupt the fueling industry slowly or quickly? “I think what will happen is glacial change,” said Ron Sabia, chief strategy officer for Gulf Oil, during an educational session on fuel price causes and consequences. He pointed to how long it will take for the U.S. vehicle fleet to turn over, even under the most optimistic projections for EVs, based in part on how long the average vehicle is owned: 11 years.
6. Not charged up …
Not every retailer is as enthusiastic about alternative fuels. Mary Braddock, co-founder of Meiners Market and president of the Missouri Petroleum Marketers and Convenience Store Association (MPCA), sees them as a threat to her business. At a recent Kansas City Royals baseball game at Kauffman Stadium, she saw a banner ad that read “Bye, Bye Gas,” sponsored by Kansas City Power and Light. “I had to stare at this ad for three hours,” she said. “I wouldn’t have been quite so upset had the ad just been spelled properly: ‘Buy, Buy Gas.’ ”
7. … But open to a spark of innovation
That doesn’t mean Braddock is opposed to testing alternative fuels. In addition to owning and operating two convenience stores, Meiners also owns apartments and a hotel in the Kansas City area. At the hotel, at the request of the corporate brand, Braddock installed electric-vehicle charging stations. Showing a photo of the vacant units, she said, “To take this picture, I didn’t have to ask anyone to move out of the way, and I didn’t have to wait for cars to finish charging. These parking spots look the same day after day. No one uses them. This is really good news for our industry. We still have time to figure out which alternative fuels are going to stay around long term and how we can incorporate them into our operations. This threat really becomes an opportunity.”
8. Energy in other forms
Consumers looking for an energy boost have more options now than ever. Beyond beverages and shots, they can get energy from an oral spray such as Instavit or a gummy such as Chewable Coffee Go Cubes, which are made with iced coffee. Also returning to shelves: Mars Wrigley Confectionery’s Alert Caffeine Gum.
9. Gatekeeper cred
For retailers hoping to persuade local lawmakers against passing tobacco regulations, Paige Anderson, director of government relations for NACS, said to emphasize the work retailers have done to responsibly sell legal products. Retailers are the last chance for stopping sales to minors.
10. Keep it clean
NACS found that 70% of trash at convenience stores is brought onto the lot by drivers. "Are we America's trash can?” joked NACS President Hank Armour.
11. The NACS effect
Many prominent companies exhibiting at the NACS Show chose the event to serve as the launching ground for their newest, most innovative releases. Jack Link’s hinted at several big new offerings, such as snack combo packs from its Lorissa’s Kitchen brand, including nuts, fruits and the company’s jerky, to be released in early 2018. Snack-bar manufacturer PowerBar exhibited a new meat, nut and fruit bar called Jerky Bar, as well as a plant-based protein bar. Both are expected to release in 2018. And Nestle Waters unveiled its regional water brands in sparkling versions, each with subtle and refreshing flavors, available nationwide.
12. Spruce up those legal signs
Legal signs, such as We Card and smoking restrictions, that retailers display on doors and windows can be a part of a retailer’s brand, said Willy of the Three Sixty Group in his aforementioned educational session. Willy used Indiana retailer Ricker's as an example. The retailer used its colors to give the signs a cohesive look. "It's the little things," Willy said.