Maximizing Candy and Gum Sales

What’s Coming? Thinking about a planogram refresh in candy? The National Confectioners Association (NCA) in Washington, D.C. advised that the category is taking a turn toward the upscale. “There is a big gourmet boom. I think we’re also going to have a ‘chocolate-covered’ category made up of things you don’t normally see covered in chocolate,

Finding Profits with Tobacco Accessories

Food and Drug Administration (FDA) mandates, scheduled to go into effect on June 22, prohibit retailers from selling cigarettes and smokeless products in self-service displays except in age-restricted stores that ban customers younger than 18 years of age. While retailers in some states, such as New York and Idaho, have already had to comply with

Marketing the Beverage Bar

While frozen dispensed beverages are not a huge portion of the typical store’s overall sales, the product is proving to be quite profitable, thanks to a gross margin north of 50%. Although the slush-style drink was a c-store original, other retailers recognized its potential, and today, frozen beverages with a variety of names and logos

A Taxing Time for Tobacco

Last year was truly a difficult time for tobacco. The State Children’s Health Insurance Program (SCHIP) increased tobacco taxes from a “modest” 158% increase on cigarettes up to a hideous 2,000 plus percentage increase on roll your own tobacco and small cigars. (RYO went from $1.10 per pound to $24.68 and small cigars went from

Sweetening Candy Sales

 Americans’ love affair with chocolate will never end. That said, sales of non-chocolate candy and gum are rising steadily, fueled by the economy and the search for innovative, flavorful new products. “Yes, people are right in calling this a strong category,” said Bill Singer, a principal in Singer’s Chevron Inc. in Walla Walla, Wash. “When

Efficient Exit Strategies Sweeten Candy Profits

Developing an effective exit strategy for candy and reviewing product performance regularly can boost profits in the candy segment. “On a basic level you want to discontinue the slow moving items that rank in the bottom of the category to bring in something new that is going to contribute sales and margins to the category,”

RYO Rolls Into 2010

RYO Pounds Sold Per Year Roll your own (RYO) cigarettes is a growing trend. Sales have climbed during the past five years, yet took a dive in 2009 as customers started using pipe tobacco to roll cigarettes as a result of increased taxes. On the other hand, customers used 10.6 million pounds of pipe tobacco

Cold and Frozen Beverages Offer Promise

Inside the Numbers: J&H Family Express Stores 60+% Profit margin on fountain drinks. $5,000 Amount spent on cold and frozen dispensing equipment per store. 10 Stores Scheduled to have cold/frozen equipment upgraded in 2010. 2 Years Anticipated ROI for the beverage units. 10% Projected percentage of store sales from cold and frozen dispensed beverages with

Realizing Prepaid’s Potential

The major prepaid areas c-store retailers are going to want to watch over the next year are general purpose reloadable cards (GPR), both open and closed loop gift cards, and cards for digital media, game and ring tones. The economy especially has spurred the growth of GPR products. “You’re going to see more folks buying

Core Brands Drive Candy

The confectionery retail market grew across all trade channels in 2009, but supermarkets, dollar stores and warehouse clubs outpaced the overall retail market in 2009, according to the National Confectioners Association (NCA). NCA also noted c-stores brought in $4.6 billion in dollar sales in 2009, up 3%. Seasonal confectionary sales were up 1.2% in 2009

Brands, Promotions Benefit CSDs

Concern For CSDs 16 million fewer Americans are drinking sugary soft drinks today compared to six years ago (68% of adults versus 76%). 7.8 million switched to diet soft drinks. 24 million have moved to bottled water. 17 million are opting for energy drinks. 11 million have tried sports drinks. 16 percent of Americans are

Putting the Back-Office to Work

Inside the Numbers: Zarco 66 8 Number of stores. $35 million Total annual systemwide revenue. $20,000 Cost of its new POS/back office system on the front end. $70,000 Cost of its new POS/back office system on the back end. 25% Percentage of store sales from foodservice at the chain’s first store with the new system

Customer Surge in Snacking

The dried meat snacks category overall (including jerky) celebrated a healthy 2009 ringing up more $872.48 million in total dollar sales, up about 1% compared to 2008. Unit sales, however, slipped 3% to 424.43 million for the 52 weeks ended Dec. 27, 2009, according to Information Resources (IRI) . Breaking down the category by segment,

Juices and Teas Bounce Back

Innovation, health and pricing are some of the factors that will help or hinder c-store operators looking to make money with juices and teas in 2010. While juices and teas have struggled over the past few years, 2009 was sort of a renaissance year for the category as both segments experienced sales gains. Overall, for

Raising the Bar on Energy Sales

The first sports and energy bars in the U.S. were marketed primarily to serious athletes, through alternative channels such as health food stores. These bars did not have wide appeal or distribution as recently as 1990, but over the past two decades these products have since gained mass appeal and distribution after greatly improving flavor

Buzzing Over Beer Sales

State of beer: Despite a strong outlook for 2010, U.S. beer shipments dropped by 2.2% in 2009. Thousands of        Barrels Shipped $2,008 2,009 Change Anheuser-Busch $107,025 104,800 ($2,225.00) MillerCoors $64,500 63,300 ($1,200.00) Crown Imports $11,583 11,000 ($583.00) Heineken USA $8,960 8,575 ($385.00) Pabst $5,900 5,700 ($125.00) Selling beer, wine and other adult

Marketing Cigars in Tough Times

Despite the SCHIP tobacco taxes that hit on April 1, 2009, cigar sales continue to persevere. The federal taxes on large cigars rose from 20.719% of the wholesale price with a tax cap of 4.875 cents per cigar to 52.75% of the wholesale price with a tax cap of 40.26 cents per cigar. The tax

Rolling Right Along

Turning a Profit The times have changed. Just as c-store foodservice evolved to meet the needs of fresh, fast and friendly service, so have the items that star on the roller grill. “Gone are the days of the shriveled hot dog, whose origins and expiration date are unknown,” said Tim Powell, the c-store foodservice program

Dairy and Ice Cream Deliver Health, Value

DID YOU KNOW? After several years of decline, the frozen novelties category was up close to 2% for the 52 weeks ended Dec. 27, 2009. Retailers can expect to see more customers eating at home, searching for value on purchases and buying more healthful food items, according to the International Dairy Deli Bakery Association (IDDBA).

Renewed Optimism for Smokeless tobacco and tobacco chewing products

The simple truth is that no one is certain what the Food and Drug Administration (FDA) will come up with next now that it has been given de facto control of the tobacco industry. But between bureaucratic control freaks, national, state and local taxes, and even the whispered fear of retailer liability concerns ahead, many

Perfecting Pizza

THE POWER OF PIZZA $38 Billion Estimated total annual sales in pizza restaurants. 70,000 Number of pizza restaurants across the country. $19.6 Billion Total revenue accounted for by the top four pizza chains (Pizza Hut, Domino’s, Papa John’s, Little Caesars) Source: National Association of Pizzeria Operators To do well in 2010 with pizza, convenience store

Value is Key to HBC

In the HBC category, miscellaneous health remedies brought in $74,935,760 in dollar sales, a 4% decline from the previous year according to Information Resources Inc. (IRI) data for the 52 weeks ended Dec. 27, 2009. Meanwhile the cold allergy and sinus liquids and tablets were down 11.6% for the same period. “We’re seeing increases in

Flexibility Fuels Chicken

TOP FIVE U.S. Chicken producers Average Weekly Production (in million pounds)    Market    Share %     Pilgrim’s Pride 146 20.30% Tyson Foods 144 20.00% Perdue Farms 55 7.60% Sanderson Farms 42 5.80% Wayne Farms 34 4.70%   Investing in foodservice is a big step for any c-store chain, but if it’s done right, the

Thinking Outside the Box

In 2010, retailers are getting creative to reach customers with the general merchandise category. As with other categories, expect customers to be focused on finding more value for their dollar. 7-Eleven Inc. sees quirky, fun products attracting customer attention at its chain in 2010. The Dallas-based chain ended the fourth quarter of 2009 with an

Strength in Numbers

Resilient, tough and tested. These are just a few of the words analysts and retailers alike used to describe the convenience store and petroleum industry over the past 12 months. With the economy suffering its most difficult period in some 80 years, convenience stores held up rather admirably considering how consumer confidence plunged and the

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