Oser Communications Group

Convenience Retailer Show Daily Day 3 NACS 2013

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C o n v e n i e n c e R e t a i l e r S h o w D a i l y 5 7 M o n d a y, O c t o b e r 1 4 , 2 0 1 3 ZICO continues to innovate within the category. With delicious flavor extensions like Chocolate, ZICO has brought count- less new consumers into the category by offering familiar flavors combined with exotic, natural coconut water. That for- ward-thinking and holistic vision from ZICO's executive team has also led to exciting offerings like Latte, a dairy and gluten-free coffee and coconut water com- bination that has been waking up NYC and Amazon.com with national expansion underway. Coca-Cola North America's Venturing and Emerging Brands (VEB) Business Unit is leading the way for the partnership from Coca-Cola's end, and are excited about the potential they see in ZICO's line of products. "This was not a difficult decision," said Deryck van Rensburg, President and General Manager, Venturing and Emerging Brands, Coca-Cola North America. "ZICO has proven to be a cate- gory leader in the two years since our ini- tial investment. We are dedicated to growing the brand and now was the right time to show that commitment." Zico (Cont'd. from p. 1) Though ZICO has experienced explosive growth through multiple dis- tributors, the transition to Coca-Cola's powerhouse of national distribution stands to be a game-changer for the brand. Both companies have expressed tremendous enthusiasm as the relation- ship grows, taking ZICO to the next level and moving it a huge step forward in the beverage world. "ZICO is looking forward to uti- lizing Coca-Cola's incredible distribu- tion system to accelerate our continued growth," said Mark Rampolla, ZICO's Founder and Chief Executive Officer. "We really value our partners at Coca-Cola and VEB, particularly for their innovation expertise and their domestic and global marketing assets. Longer term, I am confident that our continued partnership will allow us to achieve our vision of creat- ing a global healthy, lifestyle brand, synonymous with all-natural hydration and replenishment: ZICO Pure Premium Coconut Water." For more information, visit booth 2721 at the NACS show or go online to www.zico.com. take on the opportunities available to retailers in the HBW category. CRSD: How important is the HBW cate- gory for convenience store operators? KF: The HBW category provides some of the highest gross margin levels in a convenience store, with $1.5 billion dol- lars in annual sales. Overall, according to the NACS 2012 State of the Industry Summit, dollar sales are up 5.6 percent and gross profit dollars are up 8.3 per- cent. So, certainly, there is a lot of rev- enue at stake in this category. CRSD: How does CROSSMARK Convenience help operators make deci- sions on determining the best product assortment for the HBW category? KF: With annual growth of more than 5.5 percent, the HBC category has the poten- tial to grow sales at virtually any store. So we start by measuring performance of the category, identifying top-selling segments and confirming the item assortment that best represents what shoppers expect to find. Then we look at the balance. Balance is key in maximizing sales when space allocated to the category can be as small as a three-foot section of the store. Because HBW offers emergency solutions to the shopper, it's no secret that this category ranks high in delivering strong profit dol- lars per transaction. By ensuring an ade- quate combination of full-size and daily- dose items, profits are maximized. CRSD: What other strategies does Crossmark (Cont'd. from p. 1) CROSSMARK Convenience suggest to grow sales in the HBW category? KF: We have five areas we look at when consulting with a retailer: Identifying high-volume, high- growth segments that drive sales: Health care segments continue to show steady, positive growth. Space allocation should resemble the trends. Applying merchandising techniques that encourage trade-up sales and/or multiple purchases: merchandising HBW to match a shopper's purchase process increases transaction size. For example, we might suggest placing eye care and nasal care adjacent to the aller- gy segment. Encouraging top-selling national brands: shoppers recognize, trust, and identify with national brands in the HBW section of the store. Brands that offer stronger-performing innovations are usu- ally supported by consumer advertis- ing/education in the marketplace. Supporting private label in top-per- forming segments: private label offers consumer value when compared to the national brand equivalent. Private label and national brands should be merchan- dised adjacently for ingredient and cost comparison. Allocating proper space for full-size packages and daily-dose packages: An opportunity is missed by not offering both to the shopper. Full-size supports consumer value in lower cost-per-dose while daily-dose is an affordable option for a limited length of illness. For more information, stop by booth 2709 or email kennith.fries@crossmark.com. joint venture lined up to convert an ethanol plant to isobutanol production. Isobutanol has broad market applica- tions as a gasoline blendstock that can help petroleum retailers meet renewable fuel and clean air obligations. CRSD: What is isobutanol? GB: Isobutanol is a naturally-occurring four carbon alcohol. Isobutanol is a "drop-in" product that should allow customers to replace first-generation fuels with isobutanol-derived raw materials. Because isobutanol can drop into existing infrastructure, it should provide for easy integration into exist- ing refining processes and the petrole- um retail channel. CRSD: How does Gevo make isobu- tanol? GB: Gevo has pioneered a platform technology based on a proprietary fer- mentation method that relies on an innovative biocatalyst and the efficient separation of isobutanol. The combina- tion of these two proprietary innova- tions – Gevo's Integrated Fermentation Technology ® – was designed to enable the low-cost retrofit of existing ethanol facilities for isobutanol production. When cellulosic biomass processing technology is ready for commercializa- tion, Gevo plans to deploy cellulosic butanol technology. CRSD: When will isobutanol be com- mercially available for the petroleum retail market? GB: Gevo's isobutanol has successfully cleared registration with the U.S. Environmental Protection Agency (EPA) as a fuel additive, is the first isobutanol to be listed in the EPA's Fuel Registration Directory, and is now approved for blending with gasoline. Gevo's initial launch markets for isobu- Gevo Inc. (Cont'd. from p. 1) tanol for fuel are the marina, small engine, jet and recreation sectors, and we are targeting select retail pilots in the near term. CRSD: Will buyers have to purchase new dispensers to sell advanced biofuels containing isobutanol? GB: No, bio-based isobutanol enables petroleum retailers to economically meet both Renewable Fuel Standard (RFS) requirements and customer needs for advanced biofuels with existing forecourt fueling equipment. Isobutanol is compat- ible with all fuel handling equipment. CRSD: Will customers experience mis- fueling issues with advanced biofuels containing isobutanol? GB: According to the Environmental Protection Agency, isobutanol is "sub- stantially similar" to gasoline, which mit- igates misfueling issues. Testing with small engines has shown substantial ben- efits over first-generation biofuels. CRSD: What types of gas mileage will isobutanol deliver? GB: Isobutanol has higher energy con- tent than first generation biofuels. Isobutanol has 30 percent higher energy content than ethanol which generally translates into mileage. Gevo and others are currently testing isobutanol in the field to validate actual miles per gallon (MPG) and emissions. CRSD: Will isobutanol replace ethanol? GB: The future of the advanced biofuels industry will be built on the success of the first-generation biofuels such as ethanol. We believe converting existing ethanol production facilities to make isobutanol, a drop-in molecule, will enhance the market adoption for next generation biofuels. For more information, visit www.gevo.com. & Johnson, Pfizer, Bayer HealthCare and Prestige Brands to name just a few. "We feel both proud and privileged to partner with Children's Miracle Network Hospitals, a most trusted and nationally known children's charity," said David Baum, President and CEO of Convenience Valet. As a leader in the C-store channel for over 20 years, with our single/double dose over-the- counter (OTC) medications and con- venience/travel size personal care and general merchandise, we feel this part- nership makes our best-in-class pro- gram even better! Since 1983, Children's Miracle Network Hospitals has raised more than $4.7 billion – most of it $1 at a time – for 170 children's hospitals across the United States and Canada. "A child enters a Childrens Miracle Network Hospital for treatment every single second," said John Lauck, President and CEO, Children's Miracle Network Hospitals. Thanks to the gener- ous support of partners like Convenience Valet, our member hospi- tals are able to provide the hope and healing every child deserves. Retailers can support Children's Convenience Valet (Cont'd. from p. 1) Miracle Network Hospitals simply by buying Convenience Valet's best-selling carded OTC medications, personal care and GM items from their distributor. About Children's Miracle Network Hospitals: Children's Miracle Network Hospitals raises funds and awareness for 170 member hospitals that provide 32 mil- lion treatments each year to kids across the U.S. and Canada. Donations stay local to fund critical treatments and healthcare services, pediatric medical equipment and charitable care. Its var- ious fundraising partners and programs support the nonprofit's mission to save and improve the lives of as many chil- dren as possible. Find out why chil- dren's hospitals need community sup- port, and learn about your member hos- pital, at CMNHospitals.org and face- book.com/CMNHospitals. For more information on Convenience Valet and its partnership with Childrens Miracle Network Hospitals, visit NACS booth 3263 or contact Jim Blosser direct- ly at jblosser@cvalet.com or 773-230- 5678. To learn more about Convenience Valet's products and services, visit www.cvalet.com.

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