Engagement High at Marketplace Virtual

Convenience Distribution Marketplace Virtual kicked off with a scintillating Welcome and Opening Keynote.

Mary Kelly, PhD, CEO, Leadership & Business Growth, internationally-known economist and leadership expert, specializing in productivity, communication, and business profit growth, provided Marketplace attendees with valuable insight into where the economy is and where it is headed. In her presentation, “Knowledge is Power: Using This Economic Outlook to Your Advantage”, Kelly explained how economics is emotional for many people, and that the country is not currently in a recession.

Business growth is dependent on strategizing, optimizing, defining opportunities and differentiation of products and services. The challenge for c-stores is staying convenient. The industry needs to think like entrepreneurs, looking at the next opportunities.

“It’s harder to make profits and be smarter in how you do business,” Kelly said.

As a Hall of Fame Speaker and Thought Leader, Jim Pancero, CSP, CPAE focuses on the bottom line—increasing an organization’s strategic advantage and market uniqueness using his more than four decades of business to business selling.

His Marketplace Education Session, “6 Things You Can Do to Gain a Competitive Edge During This National Reboot,” combined humor and real-world examples from his experience researching and training in more than 80 industries.

Improving your message of value and uniqueness is about solutions and solving problems. It’s important to be more proactive and an initiator of ideas to help people through significant changes.

In the Marketplace Highlight, Focus on Foodservice, Kellie Janssen, president of Henry’s Foods Inc., discussed the potential of growing foodservice initiatives for retail customers. She brought her passion for customer development and experience in business and finance to provide insight on the best ways to move forward in today’s environment.

Devin Fogleman, director of sales-convenience channel for Dot Foods, provided insight on source development and category diversification. A 24-year veteran with the company mainly focusing on retail segments, Fogleman noted that some distributors are more successful and sophisticated than others.

“With the more successful distributors, it boils down to resources tapping into either external or internal [components],” he said. “With internal, it’s the foundation of a successful foodservice program.”

The cornerstone is ownership and stakeholders of the business and their commitment to a foodservice program.

In addition, buying groups that distributors have had relationships with on the foodservice side have expertise in this segment, and manufacturers can be a conduit in assisting c-store distributors.

“CDA is in a great position to help in the growth of foodservice,” Fogleman said.

Kellogg Co.’s Bill Henry, senior director, national accounts & industry relations–convenience, a 40-plus year industry veteran, spoke about sourcing management and support, keys to successful foodservice programs.

“Look at distributor networks and fellow CDA members doing well with foodservice,” Henry advised. “Reach out and ask what they did and how they got started. Retail customers may be supplied by broadline distributors, so tap into them, find out their needs and how you can help with supply.”

It’s also vital to keep up with the pipeline of foodservice innovation and keep in mind that best price is not always the most important factor.

“CMetrics will tell you where the big fish are,” Henry said. “Talk to customers to find out their needs and how to help them become a foodservice destination.”

PFSbrands’ founder and CEO Shawn Burcham, whose company has over 1,300 branded foodservice locations across 39 states and works predominately with supermarkets and convenience stores across the country, discussed how the pandemic has impacted foodservice.

Restaurant closures and more stand-alone c-stores will result in increased prospects for c-stores to make more money in foodservice.

“The future is extremely bright for c-store operators, and the time is right for retailers to double down on foodservice,” Burcham said.

Investigating Demographic Influence and A Tobacco Industry Update

On Tuesday, Marketplace’s Business Keynote and Education Session provided insight on how demographics can be used as a forecasting tool in all aspects of business, along with a detailed and timely update on tobacco industry regulations and legislation.

In his Business Keynote, “Demography is Destiny: What it Means for Your Business,” Ken Gronbach, president of KGC Direct, LLC, nationally-recognized author, expert and futurist in the field of demography and generational marketing, said Baby Boomers are c-stores’ main customers.

“Everything to do with c-stores has to do with bigger audiences,” Gronbach said. “Generation Y is the largest generation ever born,” he said. “Also, most business decisions are based on money but they should be based on people.”

Demographics precipitates economics, not the other way around.

Gronbach then detailed demographic impacts, including the current housing shortage with a 25 million house deficit; women will lead in business; Latinos make up 18.5% of the work force; and those between 40 and 60 years of age have the biggest incomes.

In his Education Session, “Tobacco: The State of the Industry”, Tom Briant, executive director of National Association of Tobacco Outlets (NATO), provided a detailed update on a wide range of tobacco topics. The 30-year industry veteran began with a thorough explanation of the Premarket Tobacco Product Application (PMTA), in which the deadline was Sept. 9, 2020, including the four step process.

To the right, Kim Reed, ITG Brands, attends a session in the Marketplace Virtual platform.

“This includes a preliminary review of applications to verify they’re complete. The agency files the application with necessary accompanying data, with a substantive review of the application, which can take up to a year,” Briant said. “The FDA submits the order to approve or not approve the application, and the product has to be appropriate for the protection of public health.”

According to the FDA website, 268 PMTA’s were filed between October 2019 and July 2020. This increased substantially in August 2020, when 10,184 PMTA’s were filed and in September 2020, with another 4,567 PMTA applications. The FDA will publish a list of filed PMTA’s in the future.

Briant also discussed the details of FDA’s new graphic cigarette warnings that replace Surgeon General warnings and go into effect on Jan. 14, 2022.

The presentation detailed the graphic cigarette health warning rotational plan, which needs to be filed with FDA for review and approval. Briant talked about what this is, who must file the plan, the kinds of ads that need warnings and rotational plan requirements.

There also are cigarette health warning lawsuits seeking to overturn FDA’s health warnings, claiming these warnings violate free speech. There have been no ruling so far, according to Briant.

He also covered the PACT Act expansion to vaping, which became law in 2010 and was amended in December 2020.

Along with an update on corrective statements, Briant said there is legislative activity in all states.

To the right, taking in a Marketplace Virtual session is Jodi Buckner, Lyons Specialty Co.

In 2021, flavor bans have been expanded to include 14 states, with tobacco ordinances in more than 30 states currently.

NATO’s Local Ordinance Tracker includes more than 1,000 ordinances, along with links to all local ordinances since 2012, Briant said.

A Night of Family-Friendly Entertainment

Our second day of Marketplace was capped off by “Let the Games Begin," family-friendly entertainment sponsored by The Hershey Co. and emceed by game show host and entertainer Rob Ferre from Life of the Party Entertainment.

Marketplace attendees had the opportunity to participate in exciting activities throughout this online event, including Name That TV Theme Song, Name That Band and a trivia contest.

Winners of the night were:

$50 Visa Gift Card: Rachel Wieten, S. Abraham & Sons, Inc.; Evan Sincavich, Team Sledd; Tremayne Arnold, Capitol Distributing, Inc.; and Tim Hiestand, Richmond-Master Distributors, Inc.

The winner of a $100 Visa Gift Card: Taylor Douglas, Douglas Companies, Inc.

The winner of the House of Hershey Trivia Game: Christa Verrier, S. Abraham & Sons, Inc. Christa will receive a special gift from Hershey.

Thank you to The Hershey Company for sponsoring this evening social!

Highlighting Inclusive Practices,
Looking at the State of the CBD and Cannabis Industry

Wednesday’s sessions did not disappoint, as the Diversity and Inclusion Keynote provided practical tips on inclusion practices, while the Education Session gave attendees the latest information on the state of the CBD and Cannabis industry.

Dr. Jermaine Davis, founder and CEO of Jermaine M. Davis Seminars & Workshops, Inc., talked about diversity and inclusion in his presentation “Leading with an Inclusive Lens to Achieve Organizational Synergy”.

“How do we achieve organizational synergy with inclusion, moving from chaos and conflict to communication and cooperation?” Davis asked. “When we talk about diversity, equity and inclusion, we talk about leadership or influencing others to take positive action and set the tone.”

By walking the walk and talking the talk, individuals within an organization or industry will follow your lead.

“Language is the software of the mind,” Davis asked. “When we talk about, and don’t run from, a topic, it becomes normalized; if we never talk about the issues, it’s not normalized and, when it comes up, it’s an issue.”

For those who say they value diversity and inclusion, look at how that is being manifested.

“It’s about your ability to get them to buy into the messages you’re conveying to them,” he said. “So, think about your leadership brand, which is who you are known as, and cultivate an authentic brand.”

People are more apt to listen to those who have a trusted brand and will be motivated by what they say.

Above, 2021 CDA Chair John Prickette takes in Marketplace Virtual.

“Identify and manage your biases, assumptions, prejudices and stereotypes, as these interfere with effective communication and equitable treatment of others,” Davis said.

Management Science Associates’ senior vice president Don Burke provided Marketplace attendees with the latest insight on issues and trends for the ever evolving CBD and Cannabis industry. In 2020, since the beginning of the pandemic, cannabis has been increasing in sales. “The CBD industry has been doing well in 2020 and will continue until the economy is back to more normal times,” Burke said. CBD users tend to be males 18-49, females 18-34, and are more likely blue collar workers with incomes under $50,000. These consumers are most likely single and childless, renters, pet owners and liberal.

“The typical convenience shopper is a CBD user,” Burke said. “And CBD users are two to three times more likely to use tobacco than the general population.”

In terms of purchases, 61% of CBD users buy these products once a month, and 42% spend less than $30 a month, while 30% spend $30-$99 a month. The majority, or 35%, purchase edibles and topicals, and 29% prefer tinctures.

“Thirty three percent are likely to purchase from c-stores, but only half of distributors carried CBD items in early 2019, and at the end of December 2020 this number was at 88%,” Burke said.

The number of unique CBD items has leveled off, with topicals accounting for 13% of SKUs and 27% of dollars, while vape accounts for 15% of SKUs and 3% of dollars.

“Total CBD sales rebounded in Q4 2020 after a significant decline in Q3 2020, with an increase of 7%,” Burke said. “C-stores have shown steady growth in overall CBD dollar share, representing 60% of all CBD sales in January 2019 to almost 90% in January 2021.”

Above, Danielle Holloway, Altria Group Distribution Co., checks her Marketplace Virtual schedule.

Winners of The Game

This year’s Marketplace Virtual included some friendly competition for distributor attendees with “The Game.” Participants obtained passcodes by visiting Showcases and attending keynotes and education sessions to earn points to be eligible to win prizes.

Distributor attendees with the top three highest scores received first, second and third place prizes:

First place: A standard room upgrade to a King Suite at JW Marriott Tampa Water Street for three nights during CDM 2022, February 7 – 9, 2022, with a welcome amenity upon arrival.*

Second Place: Complimentary roundtrip sedan transfer between Tampa International Airport and JW Marriott Tampa Water Street for CDM 2022 February 7 – 9, 2022.*

Third Place: Kiyo Broadcasting Camera with Illumination for video conferences.

Competition was fierce, as 21 attendees tied for first place with 650 points! First, second and third place names were randomly drawn from the top scorers. The winners are:

First place:
Lou Lohsl, McAneny Bros. Inc

Second place:
Amanda Robinson, Stephenson Wholesale Co.

Third place:
Bill Yost, Gummer Wholesale

In addition, all distributor attendees with at least 150 points who did not win one of the top three prizes were entered to win one of 10 $50 gift cards. A total of 78 attendees accumulated 150 points or more, and names were randomly drawn for these prizes. Winners of the 10 $50 gift cards are:

Congratulations to the 13 winners of The Game, and thank you to the nearly 100 distributor attendees who competed in this exciting competition! CDA will reach out to all winners by email with details on obtaining their prizes.

*The awarding of prizes relating to CDM 2022 is contingent on the ability of CDA to host CDM 2022. In the event that CDM 2022 is not held in Tampa, Florida, commensurate prizes will be awarded to the prize winners.

The 2021 Grand Prize Winner

Winning Wednesday's Grand Prize drawing was Betty Wettstein, Mason Brothers Co.

Thanks to Galactic Performance Solutions, all CDA member distributor Marketplace attendees were eligible to win an all-inclusive Baja Bliss Grand Prize trip. This includes five-day/four-night accommodations at the luxurious Hyatt Ziva Los Cabos Resort, Mexico, with roundtrip coach airfare for two.

“Congratulations to our Grand Prize winner! We are so excited for you to experience an incredible trip to Cabo!" said Gary Cornwell, Galactic Performance Solutions. "Thank you to all that participated and to the planners and organizers for putting this important industry event together. We hope this was a successful Marketplace for all and look forward to seeing you in person next year.”

Congratulations, Betty!

Your Partnership Makes a Difference!