McDonald’s is preparing an aggressive summer promotion targeting core c-store customers.

Another month, another challenge for convenience store operators. Where is the legendary Charles Atlas when the big bad bully tries to kick sand in our collective faces?

As I’m sure you’ve heard by now this summer’s bully is, once again, McDonald’s. The hamburger chain had such obvious success stimulating its coffee sales chainwide that it is targeting convenience store customers, but this time it’s doing it with the soda fountain.

McDonald’s announced a summer-long fountain promotion that offers any size Coke product for just $1. You just have to believe that if they could get customers to upgrade their morning coffee fix during a stalled economy that they will certainly be able to grow their fountain business in the summer, especially as some economists are predicting a sharp uptick in retail sales.

Protecting Sales
It won’t do us any good to pout, shout or ignore this new competition. It’s here, it’s real and, if we play our cards right, there is an opportunity for us to actually grow fountain sales, instead of conceding sales in this misunderstood, undervalued, often ignored category. As many industry leaders have already learned, the fountain can be an extremely lucrative destination for convenience stores. Consider the following:

• As it did with coffee, McDonald’s will do a massive amount of advertising and raise consumer awareness on fountain drinks. Smart convenience store owners will use that awareness to create similar programs to convert McDonald’s customers to loyal c-store customers. Give them a taste of your foodservice program, but remember any customer could be trying your food for the first time. Make sure your foodservice program is properly executed and always fresh.
• McDonald’s, along with other QSRs, dominate breakfast and lunch category sales, but, in my mind, convenience owns the day’s fourth meal—the afternoon snack! This is what McDonald’s is after (they are also growing a fresh cookie program to build sales in this daypart) and this is what we can’t let them have.  Constantly bundle a fountain drink with a Snickers bar, Reese’s, or fresh-made cookie. Another option is to have a healthy offering from Kellogg’s, Little Debbie or Nabisco. McDonald’s simply cannot match the great array of snacks that we have to offer. If you bundle it, they will come. Do you really think any of our industry’s key vendors wants their customers choosing McDonald’s? It is indeed time to start looking for deals and asking for them when one cannot be found.
• Many of us are fortunate to be able to offer both Coke and Pepsi in our soda fountains. McDonald’s will only be offering Coke. That presents an opportunity. Pepsi’s Mountain Dew is one of the most popular carbonated soft drinks in the U.S. Exploit that huge advantage. Pepsi will jump at a chance to stay in this summer’s fountain game. But you have to ask in order to receive.
• Another point to consider is that McDonald’s largest fountain drink is 32 ounces. Many, if not all of us, offer a 44-ounce fountain drink. I personally will sell and advertise the 44-ounce fountain cup all summer long at 99 cents and still realize a strong gross margin. You might choose to offer the 44-ounce drink at $1.19 and advertise, “We give you 12 ounces more than McDonald’s.”
• Finally, while McDonald’s has milkshakes, lattes, frappachinos and fountain  drinks, they do not have a true frozen “cool you down quickly drink” like Slush Puppie, Slurpee or Arctic Blast like we do. This is just one more point of differentiation for us to go to battle with.

There are so many things that truly make convenience stores America’s destination. Let’s keep enhancing our offering and keep the bully on the run.

Jim Callahan has more than 40 years experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan502@msn.com.

A new class of products is emerging to satisfy the needs of social tobacco users.

So many thoughts that capture my mind are worthy of being written about. Some incite our emotions (like the recent attack on Terry Gallagher of Smoker Friendly who accepted the position as coach of the Boulder High School girls varsity basketball team in Colorado).

Some make us ponder the outcome (such as GlaxoSmithKline’s decision to market nicotine mini-lozenges in cherry and mint flavors. Is this a ploy to lure kids?); and others are a call to action (like supporting Tom Briant and the efforts of NATO).

But one thing we all need to think about is how the world is rapidly changing for tobacco users, distributors and retailers. Whether the issues are taxes, restrictions or changing regulations, the broad social and legal landscape for these users and retailers is changing rapidly. Recently, I read an interesting article about how even smokers are changing.

“Non-daily smokers are a fast-growing subpopulation of smokers now constituting at least 25% of all adult smokers in the U.S.,” said Saul Shiffman, a professor in the departments of psychology and pharmaceutical science at the University of Pittsburgh.

Understanding Smoker Behavior
The facts and the studies speak to one of the most underreported statistics in the U.S. with respect to smoking and tobacco usage. The fastest growing group of smokers in the country is the casual smoker—the smoker who uses traditional tobacco products when he finds himself in social situations where others are using tobacco.

These smokers use tobacco just a few times a week and are not addicted to nicotine and not likely to become addicted.

These studies fly in the face of erstwhile medical “experts” and anti-tobacco activists who would have you believe that tobacco use is a one way ticket to nicotine addiction and a lifetime of struggles.

Other very interesting research supports similar findings. Of the smokers who quit and then went back to cigarettes after six months, more than 53% polled said they did so because they miss the “activity” of smoking—the hand-to-mouth action—with something to hold and touch. The point of this statistic is that most physicians and psychologists will tell you that at six months the nicotine addiction is beat, yet, these folks return to smoking, referring to the idea that, “I needed to do something with my hands.”

The fact of the matter is that many consumers are using traditional tobacco products because of the sociability factor, hand-to-mouth activity or oral gratification that it provides. For these consumers researchers are finding, products without nicotine or tobacco will suffice in all of the situations that they now use tobacco, but without the odor, social liability and hassle. For these consumers, a new class of products, without nicotine, tobacco and, in most cases, without smoke, is the ticket. This means no regulatory restrictions, taxes or limits as to how and where they can be displayed, sampled and sold.

But the key to the success of these products, which includes electronic cigarettes, is to have them available where traditional tobacco is sold as well as new age tobacco/nicotine products. Many consumers are searching for substitutes to tobacco in places where they can no longer use it. As a result, products designed for substitution and alternatives need to be where tobacco users typically and consistently buy their tobacco products. These new products, placed on counters where the traditional smoker and casual smoker will see them, can increase margins and revenues without the accompanying tax burdens and regulatory oversight.

The trends are building and they are undeniable. Take a look at this category and don’t be afraid to stock it. This is a real opportunity to build loyalty among a growing group of identifiable consumers (social users) as well as those who are looking for options for when they choose not to smoke.

An introspective look at life through the fading eyes of a genius.

As our 28 year old daughter lay ill in Emory University Hospital, a wonderful second-generation Spanish surgeon knelt down and held my wife’s hands to share words of wisdom he learned from his father. He imparted to us what a great privilege it is to be with a family in times of crisis.

Seeing the genuine, unvarnished side of humanity, free of any airs or worldly concerns, he said, “Do not be afraid or run away. Embrace the reality of the circumstance and be forever comforted by the peace that will descend upon you.”

These are words that have stayed with us for many years. How ironic  that now, nearly 20 years later and Linda at rest, I have stumbled upon the wonderful prose of another noble Spaniard. In one of his last messages written to friends as he bowed from public life to deal with complications from lymphatic cancer, noted writer Gabriel Garcia Marquez shared wonderful thoughts and insights reminiscent of the “unvarnished manner” described above.

Several lines in particular inspired me, and I hope that sharing his wisdom perhaps may inspire you as well.

Garcia Marquez, who was awarded the Nobel Prize in Literature in 1982, said, “I would continue where others stopped and rise when others slept.”

Indeed, this to me is the very premise practiced and perfected by industry titans, such as Chester and Chet Cadieux from QuikTrip in Tulsa, Okla., the entire Sheetz family in Pennsylvania and the late Charlie Dake, brother Bill, and son Gary at Stewart’s Shops in upstate New York, as they—and so many others—have elevated our industry to proud new standards.

Keeping Focused
In another poignant passage, Garcia Marquez wrote, “Everyone wants to live at the top of the mountain, forgetting that how we climb is all that matters.”

Green Oil’s Operations Manager Walter Potts, is a case in point, setting an example that son Ray—Green Oil’s controller—has championed and elevated to new heights. The Potts family has a simple, frugal, God and family focus that leaves them comfortable with their chosen spot on the mountain.

No matter your age, status or current position in life, aspiring to improve is the mark of a leader. “If God allowed me one more piece of life, I would sleep less and dream more,” Garcia Marquez said. This is an art form exemplified by John MacDougall, founder and president of Nice N Easy Grocery Shoppes in upstate New York.

MacDougall’s leadership and compassion are proof that there is a place for smaller operations in this industry and that hard work allows for dreams to come true.

As leaders in the convenience store industry, while we might not always be able to turn life around, we are definitely in a position to strongly influence others in a positive manner. We would all take pleasure and pride in knowing we played even a small part in that process.

To that end, Garcia Marquez said, “If I know that these are the last minutes that I would see you, I would tell you how much I love you and wouldn’t assume that you know it.”

This should serve as a reminder to  us all that life is fleeting and that we are all supported and uplifted by family, friends and others more than we realize, including our coworkers. Make the time to let these people know how important they are to you—perhaps today. You’ll never regret the gesture and it will never be forgotten.

Jim Callahan has more than 40 years experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan502@msn.com.

While foodservice sales are soaring, the tobacco category is still as important as ever.

I heard recently that the the profit convenience stores derive from foodservice has overtaken that of tobacco. Now I’m right there with the rest of the industry in joining the deli revolution, but that does not mean that I’m ready to throw tobacco out with the car wash water.

Philip Morris, R.J. Reynolds and Lorillard are doing much more with less and so can we. I’m reminded of the old saying, “make new friends, but keep the old, for one is silver, the other gold.”

Let me first say this—I personally have never been a smoker. The same holds true for alcohol and many other convenience store products, but as long as they are legal and my legal aged customers want them, I’m going to sell them because it’s our right to sell them responsibly, and it is the business I’m in.

Building Sales
While foodservice may indeed have taken the top spot, few among us would argue with the premise that tobacco continues to be a far easier and faster sale to make—with less of an investment required. Tobacco requires no additional labor to sell and infinitely less than a good foodservice program. Tobacco takes up far less space, is usually within arms reach and once your employees are trained to properly ID customers, it’s a pretty smooth transaction.

If we’re going to make our living, even temporarily, as a cashier, why not assist in maximizing our sales and profits by becoming better at selling it?

I’m still convinced that one or more of the new smokeless products, like Camel Snus is going to catch on and revolutionize the tobacco industry. Convenience store retailers must believe in the enormous potential of a product that can be used anywhere, anyplace and anytime versus one that cannot be lit or smoked at work, church, restaurants, sporting events and even in many homes.

Convenience store owners need to consider creating suggestive selling contests that reward employees for outstanding sales performances. Set goals, use graphs and other visuals to identify top performers and track progress. Above all else make it fun.

Be aware that different times and occasions call for different selling techniques, for example, how close it is to pay day. Thursdays through Sundays are prime opportunities for selling cartons and chances are you can save your customer $5 or more over the single pack price.

When a customer asks for a pack of smokes, train employees to focus on promotions. For example, instead of saying, “that will be $4.99,” have them say, “you save $1 on our three-pack special.”

Cashiers are the liaison between management and the customers. They are not fulfilling their mandate without informing customers about these money-saving specials.

Cross-Promote Effectively
Another factor to consider is associated products that can be sold along with packs and cartons of cigarettes, such as lighters. Training cashiers to say, “Can I offer you a lighter for those Newport’s today for only $1.79?” will increase sales of lighters and grow store profitability.

It doesn’t end there. Promote impulse sales by putting breath mints up by the cash register as a silent suggestive seller.

As for the future of the category, the time is now to lay the foundation for growing sales. As your customers order that three-pack Marlboro special, it’s the perfect time to explain snus to them for those times when they can’t light up.

It will take a lot of practice and patience to achieve success here, but the long term rewards of growing this segment will be enormous. Suggestive selling is, for most, an acquired skill, but it’s ultimately what could set you apart from the rest of the pack.

Jim Callahan has more than 40 years experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan502@msn.com.

Whether you operate a large or small chain, there are deals to be made that can attract a lot of positive attention to your company.

I know some of you don’t place much of a value on publicity, but when was the last time you priced the cost of a retail ad in the local newspaper? The “secret” for free publicity is much the same as the secret to effective selling—match the right product with the proper occasion at the perfect time.

For two straight years, around the Fourth of July, I garnered the front page of an area newspaper—in full color at no cost. The second year I became the centerfold and, if you look closely at my picture, you’ll know I’m not centerfold material. Yet, all it took was a phone call to get this primetime publicity. I simply called the editorial department and asked them if they would like to snap a picture of Uncle Sam on July 3rd handing out American Flags in advance of their July 4th issue.  The rest is history.  Making the media’s job easier gains you many opportunities. In this case, they came to one of our stores and used the Amoco sign as a back drop.

The next year, I made the same phone call and the same editor said, “sorry, we did that last year.” I replied, “what if Uncle Sam was on rollerblades?” Not only did they run a small color shot on the front page, but I found myself as the centerfold.

Radio Days
If you’re not into having your likeness spread all over the media, fear not. There are other ways of gaining free publicity. During my time as the CEO of a seven-store chain in upstate N.Y., I was approached by a local radio station trying to sell me on being one of eight sponsors that would be involved in giving away a trip for two to Aruba. Each sponsor was asked to pay $6,400. My brain quickly calculated the station was raising more than $50,000 for the trip. I was hesitant and declined instead determined to reverse the entire scenario.

First I obtained prices from a local travel agent on not one trip, but four—one trip each to the Super Bowl, Kentucky Derby, Disney World and a cruise. The total cost was $16,000 after negotiating a discount from the travel agency for using their name on all print ads.

I then went to a radio station whose signal covered our entire marketing area and pitched the idea of making them a full partner in all four trips in return for free advertising. They loved the idea and bought in on the spot. Several times each day they’d announce their call letters, our company name and announce, “the 10th caller will automatically be registered for an all expenses paid trip for two to the Super Bowl.”

Winners were interviewed live on air and future promos were made as each winner called in live from the venue and gave rave reviews. It is so important that customers know there really is a winner.  We also partnered with one large and four small local newspapers and received free promo ads from them for adding them as sponsors. Each drawing was held live on air by the radio station in the lobby of the largest newspaper.

If this little idea is starting to pique your interest, the best is yet to come. Eight of our best vendor partners each paid $2,000 as “official sponsors” and this mighty seven-store chain got major free ads and promos all year long while giving away four great trips, all at no cost to us. Certainly business and reputation were greatly enhanced. Email me, and I’ll send you the actual promos.

The lesson here is don’t be afraid to think outside the box. Not all thoughts are going to come to fruition, and there will be times when you might wish they hadn’t, but sometimes, when your budget is stretched and your cash is strapped, keep thinking until you come up with a winning idea. If it worked for a small seven-store chain, just think what it could do for the big guys.

Jim Callahan has more than 40 years experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan502@msn.com.

With jobs being transferred overseas and business burdened with new financial challenges, more and more employees are struggling to survive.

Now I’ll be the first to admit that I don’t have a great understanding of the global economy, but there’s a disturbing trend of outsourcing jobs overseas, while at the same time hamstringing American business with higher costs, ranging from increased taxes to healthcare. I’ll quickly jump to the forefront and state—strongly—that these decisions are not working well and America is heading down a very slippery slope seemingly greased by people that do not have this country’s or the American workers’ best interests at heart.

The excessive burden on all businesses—especially smaller companies—that operate legally and have a love of this country is raging out of control. While I’ve long questioned the wisdom surrounding the systematic elimination of hundreds of thousands of American jobs and sending them to foreign countries, whether to nearby Mexico or across the ocean, here is what sets me off:  How on earth does it make long term sense to buy billions and billions of dollars of goods from China, then turn around and borrow our own money back, allowing China and others to literally buy America?

Competing for Dollars
The auto industry proved to us that competition is essential and makes for a better product. Most of us remember when you’d be well advised to trade in an American auto when the odometer approached 50,000 miles. Asian competition forced U.S. manufacturers to get better, and American corporations and American workers rose to the challenge.

What I’m talking about is that much-bandied, yet seemingly mythical, phrase called “a level playing field.” In this case the term “unfair competition” fits much better. How can we be allowed, let alone begin to justify, buying items manufactured by people forced to work in sub par conditions that would not possibly be allowed in the U.S.?

American manufacturers must comply with costly OSHA, EPD and a myriad of other state and federal rules and regulations that add heavily to the cost of each item sold. Most of us are guilty of taking advantage of a cheaper price for the newest electronic gadgets and who could blame us?

Let me pose a few more questions: Long range, how many Americans will be able to afford even the least expensive of items without more quality jobs in America? How will America be able to maintain the current standard of living that has been reduced and devalued with the debt load we’re carrying?  We have been the caretaker for the world since WWII. We must learn and practice that charity begins at home since no other country is willing to return past favors.

Industry Burden
This leads me to the convenience store and petroleum industry, which, in so many ways, is a crutch for American workers ranging from day laborers to high-ranking executives.

Convenience store owners can be proud of the track record the industry has created by providing more and more jobs with solid career paths, all while proving to be a solid backbone for America. We must continue to work to encourage a system that ensures the long-term stability of an America that the world needs. The current system is shakier and less secure than at any time in the last 50 years and it’s this generation’s time to rise to the occasion.

The industry has achieved a great record of success and has had to fight continuously to improve in the face of adversity. But this is a different type of battle, and while you may not feel it’s the industry’s to fight alone, ask yourself, “can I afford to have a large percentage of my customers unable to buy my goods?” This is not a time for standing on the sideline; this is a call that must be answered.

Jim Callahan has more than 40 years experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan502@msn.com.

It makes not one iota of difference whether you believe in Santa or celebrate Christmas to make a difference in someone’s life at this special time of the year. We all recognize that 2009—like no other year in the past 50—has created a genuine and critical need that provides both an opportunity for all of us to pull together to assist the charities that provide for the rapidly growing number of Americans that have fallen below the poverty line, in most cases through no real fault of their own.

As this challenging year draws to a close perhaps the best our downtrodden brothers and sisters can hope to receive is a simple ray of hope that 2010 is better than the previous 12 months. We all have an opportunity to fan those faint sparks of hope during this holiday season.

I can tell you firsthand that profits among convenience store and gasoline marketers have, for the most part, been sub par. But, the petroleum industry is made up of resilient and generous individuals and companies. This year you are asked to heed the call to do even more than your share to assist worthy charities. And that doesn’t mean you must spend a lot of money.

Over the years it has been proven to me over and over that, when given the challenge, our great employees will pick up the torch of fundraising activities and our super vendors are often willing to lead the way.

What’s more, wonderfully receptive though heavily burdened customers will feel the need to support a cause without stumbling All we have to do is ask. This year is not the year you can consider sitting on the sidelines and be comforted by that private somewhat guilt-reducing pledge of: “I’ll make up for it in 2010 when business improves.”  This is the year help is needed and the Christmas season is the vehicle to truly embrace the mantras “sharing is caring” and “give until it hurts.” It may hurt your wallet for a paycheck, but making a difference in someone’s life is a reward unto itself.

This plea is aimed at the scores of small chains and the very few larger chains that have not yet made charity an important part of their business model. The giving need not be huge. If we all get behind it, our collective numbers will bring great results.  Remember my friends that customers are drawn to businesses that are involved with the community.

Consider these simple examples for your own:
• One of our Green Oil stores is adopting a deserving family and providing food, clothing and toys for the children. It is truly better to give than to receive.
• For the fifth consecutive year another store, in lieu of exchanging gifts, is donating those dollars to one of our charity partners.
• All of our stores get involved with Atlanta’s Empty Stocking Fund. You might prefer Toys for Tots or a local food bank. Charity, understandably, begins at home.
• Over the past five years an average of five company operated stores and a caring Green Oil office staff has collected more than $100,000 for charity—something I am truly proud of.
• Through the years so much pride has been felt while ringing the bells for the Salvation Army. Catch the spirit and encourage employees to do the same.
My late father-in-law preached and was living proof that what we give, comes back to us tenfold. There is great need and countless ways to be involved. Choose one now and feel the true warmth of the holiday season.
Jim Callahan has more than 40 years experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan502@msn.com.

While this troubled economy lingers, there might never be a better time than right now to increase your efforts to make a positive difference in the lives of your employees.

As I reflected on gracious words attributed to a motivational speaker, the late professor Leo Buscaglia, I was both struck by his gentle touch, and simultaneously inspired by the power and wisdom contained in the message. It read:

“Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the power to turn a life around.”

It gave pause to bringing this “power” more into focus and use. It’s a power we all possess and quite obviously those of us in management are in the enviable position of being able to exercise this powerful influence over many others—a tremendous privilege that comes with an element of responsibility that we might tend to overlook or under use.

While we might not always be able to turn life around, we are definitely in a position to strongly influence others in a positive manner. We would all take pleasure and pride in knowing we played even a small part in that process.

Professor Buscaglia’s message assures us that it doesn’t have to be a tangible item or cost money. A simple pat on the back, an “attaboy or attagirl” or even a simple smile all go a long way toward making someone feel special. And, how long has it been since you, yourself felt special. Perhaps the best way to gain this winning feeling is by being special to others. It doesn’t cost a thing.

Don’t Wait Another Day
There might never be a better time than right now to increase your efforts to make a positive difference in the lives of your employees, especially now during an economy that is more troubled than most any of us can recall.

Right now we are witnessing more unemployment, underemployment, failed and failing businesses, which is troublesome for management, but maybe more so for frontline employees. But these troubled times offer us both challenges and opportunities.

It is indeed a great time to recognize and reward successes and efforts, no matter how small they seem. Believe me, family and employees alike will appreciate it. I’ve talked to a lot of employees lately, more customers and loads of truckers, and while they are bearing up on the surface, there is an undeniable tenseness and struggle going on just below their Mendoza line. It begs for stress relief.

Jobs are being lost at an unprecedented rate, homes foreclosed in record numbers, vehicles being repossessed and lights and heat being turned off. Hope is difficult to see and kindness is in short supply.

As we bear witness to this change in the American lifestyle and realize that we are indeed only as strong as our customer base, we struggle with how to do our part to make things better without damaging the trough that feeds the families that depend on us.

Let’s do all we can to help—tangible and financial if possible—but, there can be no doubt that we are all able to give that simple touch, caring smile, simple words of inspiration, and a listening ear, all of which have the power to touch the life of someone who needs it. As Forrest Gump might say “special is as special does.”

Jim Callahan has more than 40 years experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan502@msn.com.

Tips, thoughts and reminders to enhance your NACS Show experience.

Move over Ringling Brothers because the NACS Show is indeed “The Greatest Show on Earth.”

Beyond the night life, parties, shows and the glitter of the Las Vegas lights lies, by far, the best and most comprehensive trade show and conference in the industry for convenience store owners and executives. If, however, you hope to achieve the kind of success to justify a trip to the NACS Show and, more importantly, bring back the knowledge, ideas and new product information that are crucial for getting your company to the next level, it is absolutely essential that you place a great deal of thought into the planning of your show.

There is a lot to do and see and without the proper planning, whether it’s on the trade show floor or in the educational sessions, you could miss the next big idea for your business. Develop that plan, make appointments and stick to your schedule. Choose in advance from the educational meetings menu those that will do you and your organization the most good.

If you are to pay homage to this magnificent show and its star-studded line up of vendors and industry consultants, you can’t waste time. And yes, it takes all three days to do proper justice to the more than 1,300 vendors spread across 400,000-square-feet of show floor space. If you examine the displays closely, you’re likely to find the next generation of products and equipment that will rule your stores for years to come.

With upwards of 22,000 attendees, the NACS Show also offers an abundance of networking opportunities. Your peers are coming to the show ready and willing to share ideas. Don’t be shy. The finest minds in the industry will be there and they are all very approachable. Remember, it’s not just first time attendees that can learn. NACS prides itself on having something for even the saltiest dog.

To manage the key insights you’ll be learning, I suggest bringing along a tape recorder. Sure you’ll stand out in the crowd, but, more importantly, you’ll be able to write a meaningful report to share with the rest of the management team when you arrive home. Think that won’t be appreciated?

Comfort Rules
Other tips to remember include getting to the trade show early to be among the first to check out NACS’ “Hot New Products” area. There are great ideas in there for category managers and chains of all sizes, and it opens before the trade show.

Perhaps my most practical advice to one and all comes via my dad, who in his 87th year, resplendent in his blue pinstripe suit and regimental tie, was standing at the edge of the altar as the soloist at my son’s wedding. Dad’s sneakers spoke priceless volumes regarding the importance of being comfortable. Heed this sage advice! Ladies, save that great new pair of shoes for the evening. Comfort rules on the show floor.

And to our wonderful vendors, and I do mean that, it is extremely frustrating to wander through your booths while you and your fellow employees are carrying on conversations in groups of four. It happens every year and is quite counter-productive. Let this be the year we see great improvement in this troubling area. Retailers are on the show floor to learn about your products and how you can help us improve our businesses and be more efficient. Making us wait to hear your message is a bad a sign. If you make us wait in your effort to get us to be a customer, how will you treat us should we become a customer?

Lastly, don’t forget your business cards. Vendors will be scanning badges, but scanners sometimes malfunction and business cards don’t, plus they are great to exchange with the people you meet.

Jim Callahan has more than 40 years experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CSDecisions.com. He can be reached at (678) 485-4773 or via e-mail at jfcallahan502@msn.com.

Flavored products including cigarettes, RYO and loose tobaccos and rolling papers are no longer legal in U.S. stores; administration said it would look at “little cigars” and similar products on a “case-by-case basis.”

The smoking lamp on the majority of flavored tobacco products sold in convenience stores has been extinguished, but the ruling has ignited a firestorm among retailers.

In a media briefing on Sept. 22, the Food and Drug Administration (FDA) issued additional information on its far-reaching ban of flavored cigarettes. The salient points of the ruling, which went immediately into effect, include:

• Cigarettes containing an artificial or natural flavor (excluding tobacco or menthol) that is a characterizing flavor are banned.  The banned characterizing flavors include an herb or spice, strawberry, grape, orange, clove, cinnamon, pineapple, vanilla, coconut, licorice, cocoa, chocolate, cherry or coffee.

• Loose tobacco and roll-your-own (RYO) tobacco intended to be used in cigarettes can continue to be sold provided that the tobacco does not contain a characterizing flavor that is banned under the new FDA law.

• Cigarette rolling papers and cigarette filters for use in RYO cigarettes that contain a characterizing flavor are banned. Only those cigarette rolling papers and cigarette filters that do not contain a characterizing flavor are legal to sell.

• The advisory published by the FDA continues to take an ambiguous position regarding whether flavored little cigars are banned. The FDA essentially repeats the sentence that it included in its letter issued on Sept. 14 and states in the advisory that “the ban applies to all tobacco products with certain characterizing flavors” that meet its definition of a cigarette under the new Food, Drug and Cosmetic Act (FDCA) “even if they are not labeled as cigarettes or are labeled as cigars or as some other product.”

At presstime, when questioned flatly on whether the flavored tobacco ban includes flavored little cigars, Dr. Lawrence Deyton of the FDA refused to give a definitive “yes” or “no” answer. Instead, FDA lawyers said the administration would look at “little cigars” and similar products on a “case-by-case basis.”

• Pipe tobacco, that according to the FDA is bona fide pipe tobacco, is not banned.

Under the new law, the agency has broad authority to regulate the marketing and manufacture of tobacco products, but cannot ban regular cigarettes, cigars or chewing tobacco. By January, manufacturers must submit information to the agency about ingredients and additives, and by July, the industry will be barred from using terms like “light,” “low” and “mild” on products. The ban is the first major step taken by the FDA since the agency was given jurisdiction over the tobacco industry in June.

Swift Response
Retailers fear the FDA’s involvement in tobacco sales will have lasting ramifications.

“While the FDA’s initial foray into tobacco’s already much troubled and diminishing business might be labeled as somewhat mild given that most cigarette manufacturers do very little with flavored cigarettes, I do feel this is just the tip of the iceberg,” said Jim Callahan, a retailer with more than 25 years of experience and president of Convenience Store Solutions, a Georgia-based consulting firm. “Overall, I think the industry should have done more in its fight against the FDA governing the tobacco industry, which may be a short-term gain for some, but will have severe long term implications for the entire industry.”

Suppliers quickly responded to the FDA. Kretek International Inc., which imports Djarum-branded tobacco products, filed a request for declaratory judgment against the FDA in Washington, D.C.

Earlier, R.J. Reynolds, seller of Camel cigarettes, and some other tobacco makers filed a lawsuit against the FDA saying their free-speech rights have been violated by the administration’s authority to regulate tobacco. Reynolds said it seeks to protect its right to communicate with adult consumers.