ConvenienceRETAILER

Grape joins popular line of categoryleading Energy Shots

Sitting atop the growing liquid energy shot category by a substantialmargin, 5-Hour Energy® seeks to con-tinue its category dominance with theintroduction of its newest flavor, Grape,in late September.

Founded in 2004, 5-Hour Energy is atwo-ounce energy shot that provideshours of energy with no crash* or jittersthrough a blend of B-Vitamins and aminoacids. Containing caffeine comparable toa cup of the leading premium coffee,there’s zero sugar, zero net carbs, zeroherbal stimulants and only four caloriesin each two-ounce shot.

Grape joins 5-Hour Energy’s grow-ing product line that includes berry,lemon-lime and orange flavors, as well asDecaf and Extra Strength** versions.

As the original two-ounce energyshot, we are proud of the reputation we’veestablished and the brand loyalty 5-HourEnergy has developed in just a few shortyears,” says Carl Sperber, Director of

5-HOUR ENERGYTO INTRODUCENEW FLAVOR

Continued on Page 15

THE NACS SHOW 09 PRESHOW ISSUEVolume 2, Number 4 July/August 2009

Continued on Page 15

NACS has just released the NACS Stateof the Industry Report of 2008 Data, theindustry’s premier benchmarking tooland most comprehensive collection offirm-level, store-level and category dataand trends based on the conveniencestore industry’s 2008 performance.

Compiling and analyzing totals,trends and averages for the industry, the176-page report also examines economicconditions and their potential impact onthe industry. It features more than 100charts and tables focusing on everyaspect of the industry’s 2008 perform-ance, including financials, store opera-tions, merchandising, motor fuels salesand quartile analysis. New this year, thereport features a five-year perspective ofsame-store data and separate chapters formerchandise and foodservice.

“Retailers who want to improve theiroperations and communicate the indus-try’s perspectives on motor fuels salesand other industry trends rely on the

‘NACS STATE OF THE INDUSTRYREPORT OF 2008 DATA’ NOW AVAILABLEJOHNSONVILLE

RELEASES NEWHEAT-AND-EAT SANDWICHES

CERTEGY’S PAYCHECK ACCEPT: CHECK CASHINGWITHOUT THE RISK

FLYING J AND PILOTANNOUNCE PRELIMINARYMERGER AGREEMENT

COINSTAR AND REDBOX PARTNER TO HELP FAMILIES HAVE FUN

SNICKERS BRAND AND DAVID ARQUETTE MAKE A BIG MOVE TO HELP FEED AMERICA

Profits Soar with Preferred

Energy Shots

5-Hour EnergyNo. 1 Energy Shot

BAERO North America Inc.Canopus Batwing

Bambu Sales Inc.World’s Finest Rolling Papers

Conwood Company LLCGrizzly Smokeless Tobacco

Dr Pepper-Snapple GroupDr Pepper Cherry

Energy Club Inc.Stand Up Bag Mixes

Mueller Sports Medicine Inc.Quench Pint Bottle

Oberto Sausage CompanyHigh-Velocity SKUs

new products

4 ConvenienceRETAILER July/August 2009

Lee M. OserCEO and Editor-in-Chief

Steve CoxKim ForresterKate Seymour

Associate Publishers

Lorrie BaumannBusiness Affairs Manager

Jenna CrisostomoSenior Associate Editor

Chris BonneyAssociate Editor

Valerie WilsonArt Director

Yasmine BrownGraphic Designer

Michael HarrisNational Director of Sales

Andrew OsemanSenior Account Manager

Enrico CecchiEuropean Sales

Convenience Retailer is published byOser Communications Group ©2009.

All rights reserved. BPA Worldwide Membership Applied for September 2008.

Executive and editorial offices at: 1877 N. Kolb Road, Tucson, AZ 85715

520-721-1300/Fax: 520-721-6300www.oser.com/www.convenienceretailer.net

European offices located at Lungarno Benvenuto

Cellini, 11, 50125 Florence, Italy.

ConvenienceRETAILER

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news briefs

JOHNSONVILLE ANNOUNCES NEWHEAT-AND-EAT SANDWICHESAmerica’s leading sausage companyintroduces three bold varieties of grab ‘n’ go goodness

To meet demands of today’s busy con-sumer seeking convenient, flavorful andaffordable breakfast and snack solutions,Johnsonville® Sausage LLC, introduceshand-held sandwiches featuring the com-pany’s famous link sausage enrobed in asoft, warm roll.

The five-ounce sandwiches—whichdebuted at the 2009 Research ChefAssociation Conference in Dallas andPizza Expo in Las Vegas this spring—feature on-trend flavors and intriguingingredients already built into a juicy,savory smoked-sausage link, including:• Southwestern Style—corn kernels,

black beans and bell pepper, with just theright blend of seasonings to perk up tastebuds any time of day or night.• Spicy Sunrise—scrambled egg, cheeseand onion for a tantalizing jump-start tomorning.• Sweet & Smokey—the sweet contrastof real Vermont maple syrup for at-the-breakfast-table flavor.

For time-starved customers on the go,Johnsonville’s hand-held sandwiches—frozen to lock in just-made freshness—are individually wrapped and go fromfreezer or refrigerator case to themicrowave for a hot sandwich in 75 sec-onds or less. Or, merchandise straightfrom your point-of-sale warmer, wheresandwiches maintain optimum quality

for up to four hours.The full line ofJohnsonville’s newgrab ‘n’ go sandwichesalso includes SmokedBratwurst and SmokeyCheddar Sausage.

J o h n s o n v i l l e ’ shand-held sausagesandwiches satisfy thecravings of an increas-ing number of cus-tomers who seek something extremelyflavorful that can be eaten in the car, atthe office, between classes—virtuallyany occasion that requires a quick andtasty meal solution,” says Sarah Babb,Johnsonville’s Senior Brand Manager.“What’s more, because our sandwichesare priced to sell quickly, outlets likeC-stores and food kiosks in publicareas gain a competitive edge overquick-service restaurants, buildingcustomer frequency.”

About Johnsonville Sausage

Johnsonville Sausage, America’s No. 1sausage brand according to AC Nielsen,is known and trusted in 27 countriesthroughout the world. Through its com-mitment to providing “world-class culi-nary” sausage solutions to customersthrough unparalleled quality and flavor,Johnsonville endeavors to create aware-ness for sausage as a key ingredient ontrend-setting menus while influencingthe menu trends of tomorrow.

DESIGNER WHEY PROTEIN WATERHAS 60 ‘GOOD-FOR-YOU CALORIES’IN EVERY BOTTLE

Four Delicious Flavors of PROTEINWATER: Orange Mango, PomegranateFruit, Cranapple, Blue Raspberry

Nutrition comes in many forms, shapesand sizes. DESIGNER WHEY®,America’s No. 1 Protein Since 1993®,

recognizes the need for ahealthy, refreshing and nutri-tional option in a bottle forthose looking to stay trim.DESIGNER WHEY ispleased to announce therelease of their 16 fluid ouncePROTEIN WATER, the on-the-go, drink-anywhere alternative to sugary sodas andenhanced drinks that can leave you

unsatisfied. DESIGNER WHEYPROTEIN WATER will bemade available at selectretailers nationwide with anMSRP of $2.99.

“PROTEIN WATER com-bines water with whey protein

isolate, dietary fiber and amazing natural

Continued on Page 12

10 ConvenienceRETAILER July/August 2009

‘G.I. JOE: THE RISE OFTHE COBRA’ ADVANCESON 7-ELEVEN STORES

Retailer takes aim at G.I. JOE fans withLiquid Artillery Slurpee®, ‘GO JOE’Energy Cappuccino and sweepstakes

7-Eleven Inc. reports for duty this Julyas it joins forces with ParamountPictures to promote the Aug. 7 releaseof the new action movie, G.I. Joe: TheRise of Cobra.

At the center of the promotion, start-ing Wednesday, is a new G.I. JOE-themed true-blue Slurpee® flavor—Liquid Artillery, a summer fruit blend ofstrawberry, pineapple and lime flavorscreated by The Coca-Cola Company.Four 22-ounce collectible Slurpee cupswith matching character straws featureG.I. JOE team members CONRADDUKE HOWSER and SNAKE EYES,and COBRA members, BARONESS andSTORM SHADOW. An online SlurpeeNation sweepstakes offers a grand-prizetrip for two to attend the Los Angelespremiere of the movie.

Besides its frozen blue Slurpeedrink, 7-Eleven has added a hot beveragetie-in with a ‘GO JOE’ Cappuccino,

mocha-flavored with three natural energyingredients—taurine, guarana and caf-feine. One 12-ounce cup has as muchcaffeine as an eight-ounce energy drink.Refillable silver and black 16-ounce cof-fee mugs featuring the G.I. JOE logo alsoare available while supplies last.

“G.I. JOE is probably the best-known boy’s toy in the world,” says JayWilkins, 7-Eleven Brand Manager forcold beverages. “The movie has a ready-made audience of boys and men whoplayed with G.I. JOE, and we want tobring back some of those great childhoodmemories by promoting ‘G. I. Joe: TheRise of Cobra’ with a great, new Slurpeedrink, fun cups and straws.”

“This program brings the excite-ment of the new movie right inside 7-Eleven stores,” comments LeeAnneStables, Executive Vice President ofworldwide marketing partnerships atParamount Pictures. “Fans will get anearly taste of this big screen update oftheir favorite characters from thisincredible action-packed G.I. Joe: TheRise of Cobra film.”

In addition to the four plastic 3Dcups, 7-Eleven has created two paperSlurpee cups with movie graphics alongwith Slurpee Nation reward codes thatcan be used to enter an online instant-winsweepstakes at www.slurpee.com.

Prizes awarded in the month-longsweepstakes include Xbox 360Entertainment Systems, G.I. JOE Xbox360 videogames, Xbox LIVE Gold sub-scriptions and one-year subscriptions toSymantec’s Norton Antivirus and spy-ware removal program.

Introduced in the United States byHasbro in 1964, G.I. JOE celebrates its45-year anniversary this year as theworld’s first “action figure.” As enemies,military uniforms and gear changed, thetoy line evolved over the years. G.I. Joe:The Rise of Cobra is a live-action filmadaptation based on the 1980s version ofthe franchise, which set up the conflictbetween G.I. JOE and COBRA and intro-duced audiences to characters, likeSNAKE EYES, BARONESS andSTORM SHADOW.

Directed by Stephen Sommers (“TheMummy”), the cast of G.I. Joe: The Riseof Cobra includes Sienna Miller,Channing Tatum, Marlon Wayons andDennis Quaid. Set 10 years in the future,the film shows the rise of the COBRAorganization and focuses on the creationof an international force of operatives

who use high-tech equipment to battletheir enemies.

Besides the online sweepstakes andin-store signage, cups and collectibles, 7-Eleven will run radio advertising promot-ing the “G.I. Joe: The Rise of Cobra”campaign in select markets. Assisting 7-Eleven in developing the partnershipsand promotions for the G.I. JOE programis FreshWorks, 7-Eleven Inc.’s advertis-ing and marketing agency, which is aconsortium of Omnicom companies.

About 7 Eleven Inc.

7 Eleven Inc. is the premier name andlargest chain in the convenience retailingindustry. Based in Dallas, Texas, 7-Eleven operates, franchises or licensesapproximately 7,800 7-Eleven® stores inNorth America. Globally, 7-Eleven oper-ates, franchises or licenses more than36,200 stores in 15 countries. During2008, 7-Eleven stores worldwide gener-ated total sales of more than $53.7 bil-lion. For 15 consecutive years 7-Elevenhas been listed among HispanicMagazine ’s Hispanic Corporate Top 100Companies that provide the most oppor-tunities to Hispanics. 7-Eleven is fran-chising its stores in the U.S., and isexpanding through organic growth,acquisitions, and its Business ConversionProgram. Find out more online atwww.7-Eleven.com.

For the many Americans forgoing a vaca-tion this summer as they look to savemoney, there are plenty of inexpensiveways to have fun while staying at home.To help families create an unforgettablestart to the summer, Coinstar and redboxare partnering with travelgirl magazineEditor-in-Chief Stephanie Oswald, giv-ing families tips on how to get creativewith their stay-at-home vacations.

As a mother, taking a summer stay-cation can be the best of both worlds,”says Oswald. “You get to have fun spend-ing time with family away from work anddon’t have to break the bank to do it.”

According to Coinstar, there’sapproximately $90 of loose change hid-ing in the average U.S. household.Before starting a staycation, Oswald rec-ommends asking each family member toempty out their piggy bank, coin jar orchange drawer. Then, take all of the coinsto the nearest Coinstar Center and usethe cash to help pay for some of those

staycation expenses. With this “found” money, Oswald

offers the following ideas for making themost of a summer staycation, regardlessof your location, interest or budget:

Become a tourist—Checkcheck outthose local sites and landmarks thatyou’ve often thought about but neverexplored. Whether it’s a historic muse-um, city tour or an amusement park, havea family meeting and allow each member

to pick at least onespecial event. Ifyou’re on your own,the sky is the limit butremember to bring acamera to capturethose memories.

Host a film festi-val—– Eescape to themovies by watchingback-to-back filmsthroughout the day.

Visit your local grocery store topick-up the family’s favorite snacks andmovies from redbox. For added fun, playa movie trivia game to determine whogets to choose the next movie and makethe popcorn. Visit www.redbox.com fora list of redbox locations and availabletitles near you.

Invite the Neighbors—now is a goodtime to get to know your neighbors.Organize a neighborhood cookout andinvite each family to bring a dish. Set upgames to make it fun for the kids and tryto meet as many new people as possible.It might be fun to accept nominations forhosting the next neighborhood party.

Stage a backyard campout—enjoythe great outdoors just steps away fromhome. The key to any backyard campoutis to make it as realistic as possible.Gather your gear and pack everything

news briefs

COINSTAR AND REDBOX PARTNERTO HELP FAMILIES HAVE FUNAT HOME THIS SUMMER

Continued on Page 12

12 ConvenienceRETAILER July/August 2009

news briefs

SNICKERS BRAND AND DAVIDARQUETTE MAKE A BIG MOVETO HELP FEED AMERICA

America’s favorite real chocolate brandkicks off new Feeding America partner-ship with massive meal commitment

Mars Snackfood US announced that itsSnickers® Brand is teaming up withFeeding America to ‘Bar Hunger’—acampaign to help the one in eightAmericans struggling with hunger1. Aspart of Bar Hunger, Snickers will donatethe equivalent of at least three millionmeals to Feeding America in 2009. Thebrand will also educate and inspireAmericans to help through special brand-ing and educational verbiage on itsSnickers packaging, dedicated nationaladvertising, its Facebook® Page locatedat www.facebook.com/snickers, as wellas series of events throughout the year.

Snickers enlisted the support of actorand chairman of Feeding America’sEntertainment Council, David Arquette(pictured), who spent the better part oftwo days atop the famed Madison SquareGarden Marquee, July 14 and 15.Arquette hopes to raise $250,000 indonations for Feeding America, at a timethat is especially trying for the growingnumber of Americans at risk of hunger,through the Snickers Facebook Page, textmessaging and on-site collections.

“The Snickers brand has always sat-isfied hunger,” says Carole Walker, VicePresident, integrated marketing commu-nications for Mars Snackfood US. “The‘Bar Hunger’ campaign is designed todraw attention to a very real challengefacing America. But this charitable effort

is about more thanputting a logo onour wrapper. Wewant people tojoin the effort andhelp in any waythey can.”

Snickers hasteamed withArquette becauseof his passionateparticipation inthe fight against hunger. Aside from hisrole as the first-ever chairman of FeedingAmerica’s Entertainment Council, healso regularly volunteers at a food bankin Venice, Calif.

“I’ve seen first hand the impact ofhunger, which is why campaigns like‘Bar Hunger’ are so critical,” saysArquette. “But Snickers and I can’t do italone. We need to educate all Americansabout this issue and mobilize them to dosomething. The only way we can truly‘Bar Hunger’ is together.”

As the nation’s largest domestichunger-relief charity, Feeding Americafeeds 25 million Americans at risk ofhunger each year through a nationwidenetwork of food banks and engages thecountry in the fight to end hunger.

“We’re very thankful for the supportof Snickers,” says Vicki Escarra,President and CEO of Feeding America.“The dedication of our corporate partnerslike Snickers, as well as individuals likeDavid Arquette, is critical for us to gen-erate awareness about hunger, as well as

you need beforehand. Work together topitch a tent, and build a campfire forcooking. Finish off the night with a fewstories by the fire and a game of flash-light tag for a fun night under the stars.

About Redbox

Redbox Automated Retail LLC, awholly-owned subsidiary of CoinstarInc., offers new release DVD rentalsfor $1 per night through its network ofconveniently located, self-servicekiosks. Redbox is available at morethan 15,000 locations nationwide,including select McDonald’s restau-rants, leading grocery and convenience

stores, and Wal-Mart and Walgreenslocations in select markets. For moreinformation, visit www.redbox.com.

About Coinstar Inc.

Coinstar Inc. is a multi-national companyoffering a range of 4th Wall® solutionsfor the retailers’ front of store consistingof self-service coin counting, DVDrental, money transfer, electronic pay-ment solutions and entertainment servic-es. The company’s products and servicescan be found at more than 90,000 pointsof presence including supermarkets, drugstores, mass merchants, financial institu-tions, convenience stores, restaurants andmoney transfer agent locations. For moreinformation, visit www.coinstar.com.

Coinstar Inc. (Con’t. from p. 10)

flavors to help reach peak performanceduring workouts, minimize hunger andmanage weight loss,” states DavidJenkins, Founder and Chief ExecutiveOfficer for NEXT Proteins, the makers ofDESIGNER WHEY, “There are manychoices in the marketplace, but with ourinsistence on in-depth product develop-ment and extensive research, we feel thatPROTEIN WATER, with its 60 ‘good-for-you calories,’ is the best choice.PROTEIN WATER should be a staple foranyone looking for a great-tasting,healthy alternative to sugary beverages.”PROTEIN WATER Facts:• 60 ‘Good For You’ Calories• 12 grams of 100% Whey Protein Isolate• 5 grams of hunger-curbing fiber to help

promote a feeling of fullness• Only one gram of sugar and no fat• 16-ounce serving• Lactose free

DESIGNER WHEY PROTEIN WATERis designed to help on-the-go fitnessminded women and men get their dailyintake of protein to optimize their work-outs and increase their daily energy easi-ly. PROTEIN WATER is great for use atthe gym, carpool lane, the office, on abusiness trip or in the comfort of one’sown living room. Helping to curb hungercravings with just 60 calories, 5 grams of

fiber, zero grams of fat and 12 grams ofDESIGNER WHEY protein, PROTEINWATER is perfect for those looking tomaintain and embrace a healthy lifestyle.

About DESIGNER WHEY

For more than 15 years, DESIGNERWHEY has created the greatest-tasting,results-proven products in the market-place including powders and beveragesthat help consumers live healthier liveswith the benefits of “nature’s perfect pro-tein”. America’s No. 1 protein since 1993,DESIGNER WHEY has dedicated morethan $10.5 million to research and devel-opment. DESIGNER WHEY is scientifi-cally proven to enhance the fat-burning,muscle-building benefits of exercise.DESIGNER WHEY powers a full line ofpremium-quality products such as thenew BIGGEST LOSER PROTEIN pow-der, DESIGNER WHEY Protein·2GO®–single-serving packets for an on-the-golifestyle, and DESIGNER WHEYProtein BLITZ™ and DESIGNERWHEY Protein WATER, the latest inready-to-drink refreshment. DESIGNERWHEY’S BIGGEST LOSER PROTEIN,featured on NBC television’s mega-hitreality weight loss show, is designed tohelp real people get real results with theiroverall health and nutrition needs. Formore information on the company or thefull line of DESIGNER WHEY products,visit www.designerwhey.com.

DESIGNER WHEY (Con’t. from p. 6)

continue to provide food to millions of Americans each year who would otherwise go hungry.”

For more information about the BarHunger campaign, visit the SnickersFacebook Page at www.facebook.com/snickers or www.barhunger.com.

About Mars Snackfood US

Headquartered in Hackettstown, N.J.,Mars Snackfood US is the United Statessnack operations of Mars Incorporated.Mars Incorporated is a private, family-owned company founded in 1911 andemploys 70,000 associates at 250 sites,including 151 factories, in 67 countriesworldwide. Headquartered in McLean,Va., Mars Incorporated is one of theworld’s largest food companies, generat-ing global revenues of more than $30 billion annually.

About Feeding America (Formerly

America’s Second Harvest—

The Nation’s Food Bank Network)

Feeding America provides low-incomeindividuals and families with the fuel tosurvive and even thrive. As the nation’sleading domestic hunger-relief charity,our network members supply food tomore than 25 million Americans eachyear, including nine million childrenand three million seniors. Serving theentire United States, more than 200member food banks operate 63,000agencies that address hunger in all of itsforms. For more information on howyou can fight hunger in your communi-ty and across the country, visitwww.feedingamerica.org.

1 1 in 8 PSA Campaign, Feeding Americaand Ad Council

CERTEGY’S PAYCHECK ACCEPT: CHECK CASHING WITHOUT THE RISK

PayCheck Accept’s® proven patentedcheck cashing solution creates customerloyalty that will generate repeat business.More than 13,000 retail locations-fromsmall corner grocery stores to the world’slargest retailer, companies across the coun-try making PayCheck Accept, the largestcheck casing authorization provider in theindustry, to provide safe and convenientsolutions for their paycheck and govern-ment check cashing services.

Secure. With PayCheck Accept yourbusiness is completely protected from thefraud commonly associated with checkcashing. Using state-of-the art technologyand more than 45 years of industry experi-ence, we’ve designed PayCheck Accept toeliminate the risks of counterfeit checks,bad checks, stolen checks and the need forcollections, allowing you to confidentlycash payroll and government issued checks.

Flexible. PayCheck Accept is aremarkable user-friendly and flexible serv-ice. The only requirement is access to ourauthorization center from the desiredcheck cashing location-this can be

accomplished viaPOS integration,browser-based access or the installation ofa “plug and play” stand-alone device.

Quick and easy. In order to protectyou and your customer’s identity, cus-tomers cashing a check for the first timemust enroll in our system through a sim-ple, no application approval process.Once enrolled, future transactions do notrequire all of the data input, greatlyreducing data entry time. After the checkinformation is entered, the transactionapproval takes just seconds.

Now you can expand your financialservices offerings, create loyalty andgenerate additional revenue by partner-ing with Certegy, the recognized worldwide leader in advanced paymentservices and loss prevention tools. No more paper, no more manual back-ground checks, no biometrics—just moreconvenience and services for your customer. Call 800-215-6280, ext.75598, for a no obligation demo or emailpaycheck.accept@fnis.com.

top news

ConvenienceRETAILER 15July/August 2009

information contained in the annualNACS State of the Industry Report,” saysNACS Director of Research and StatisticsBob Swanson, noting that retailers consider the report a vital resource forbenchmarking store performance andimproving their profitability.

According to the report, overall con-venience store industry profits rose 54percent in 2008 to reach $5.2 billion,reversing a two-year decline where prof-its dropped 42 percent over that period.Industry sales jumped 8.1 percent toreach $624.1 billion, with both motorfuels sales (up 10.1 percent to $450.2 bil-lion) and in-store sales (up 3.2 percent to$173.9 billion) showing growth.

While revenues increased, so didexpenses. Credit card fees continue to bethe industry’s top pain point, surginganother 10.5 percent in 2008 to reach arecord $8.4 billion—nearly three timesthe level just five years ago.

Complimentary copies of this year’sreport have been shipped to companiesthat participated in the annual survey.

“We are extremely grateful to those whosubmitted data for this year’s survey. Notonly does the NACS State of the IndustryReport serve as the industry’s premierbenchmarking tool, the industry numberscompiled are critical to our outreachefforts in quantifying the industry and itspriority issues, both on Capitol Hill andwith the national media,” says Swanson.

Purchasers of the NACS State of theIndustry Report of 2008 Data report mayalso download the NACS ConvenienceStore Industry Fact Book fromwww.nacsonline.com in early August.The 22nd edition of the Fact Book pro-vides a detailed account of industry dataover the past several years—or in somecases, decades—as well as a historicalrecap of the industry and key definitionsand events that have shaped it.

To order the NACS State of theIndustry Report of 2008 Data/Convenience Store Industry Fact Bookpackage, visit www.nacsonline.com/shop or call NACS Customer Service at800-966-6227.

The State of the Industry Report of2008 Data and the Convenience StoreIndustry Fact Book are available toNACS member companies (order number40022033) for $175 ($600 regular price).Additional copies of the State of theIndustry Report of 2008 Data/Fact Book(order number 40022034) are available toNACS members for $40 ($175 regularprice). The Report is also available as anelectronic PDF edition (order number40022035) to NACS members for $500($1,000 regular price).

About NACS

NACS, the association for convenienceand petroleum retailing, is an interna-tional trade association representingmore than 2,200 retail and 1,800 sup-plier member companies. The U.S.convenience store industry, withmore than 146,000 stores across thecountry, posted $577.4 billion in

total sales in 2007, with $408.9 billion inmotor fuels sales.

NACS (Con’t. from p. 1)

Corporate Communications for LivingEssentials, the makers of 5-Hour Energy.

“While our current line of productsremains extremely popular, we are confi-dent that 5-Hour Energy customers willenjoy the bold taste and energy boost theyreceive from the new Grape flavor.

“We will continue to exploreadding additional flavors in the futureso our customers have a wide variety of 5-Hour Energy options to choosefrom,” adds Sperber.

According to figures recently provid-ed by AC Nielsen, 5-Hour Energy enjoys

5-Hour Energy (Con’t. from p. 1) a 70 percent share of all liquid energyshot sales, leading its nearest competitorby more than 9-to-1. With four of its fla-vors in the top five in sales, 5-HourEnergy outsells all of the other energyshot brands combined by over 2-to-1.

*Crash equals energy below baseline.Individual results may vary. See www.5hourenergy.com for more information.**5-Hour Energy contains caffeine com-parable to a cup of the leading premiumcoffee. Decaf 5-Hour Energy contains sixmgs of caffeine—about as much as a halfa cup of decaffeinated coffee. ExtraStrength 5-Hour Energy contains caf-feine comparable to 12 ounces of theleading premium coffee. Limit caffeineproducts to avoid nervousness, sleepless-ness and occasional rapid heartbeat.

These statements have not been evaluat-ed by the Food and Drug Administration.This product is not intended to diagnose,treat, cure or prevent any disease.

NACS applauded the Senate reintroduc-tion of the “Credit Card Fair Fee Act,”legislation introduced on June 9 bySenate Majority Whip Richard Durbin(D-IL) that seeks to address the morethan $48 billion that Americans annuallypay in credit card swipe fees.

The bill (S. 1212) seeks to help levelthe playing field for retailers by givingthem a seat at the negotiating table withbanks to determine the fees assessed forevery sale made by credit card, and ulti-mately reduce the costs of everydaygoods for consumers.

“Senator Durbin’s introduction ofthis bill, following the introduction ofsimilar legislation last week in the Houseof Representatives, is further proof thatCongress is fed up with the shell gamebeing played by the credit card compa-nies,” says NACS Chairman SonjaHubbard, CEO of Texarkana, Texas-based E-Z Mart Stores. “Congress hasalready addressed outrageous lendingfees and policies directly targeting con-sumers, and it is vital that it also address

those secret fees and policies that affectmerchants and their customers.”

Credit card swipe fees—called“interchange fees” by the big banks thatset these rates—are a percentage of eachtransaction that Visa and MasterCard andtheir member banks collect from retailersevery time a credit or debit card is used.These fees average about two percent inthe United States, the highest rate in theindustrialized world.

“It is time to level the playing fieldfor merchants and consumers,” Sen.Conyers says in a statement introducingthe bill. “It is not an attempt at regulatingthe industry and does not mandate anyparticular outcome. This bill simplyenhances competition by allowing mer-chants to negotiate with the dominantbanks for the terms and rates of the fees.”

In 2008, credit card fees cost U.S.convenience stores $8.4 billion—com-pared to only $5.2 billion in store profits,according to NACS data. Almost all ofthese credit card fees are attributable tocredit card swipe fees.

NACS APPLAUDS SENATE INTRODUCTION OF CREDITCARD FAIR FEE ACT

FLYING J AND PILOT ANNOUNCE PRELIMINARY MERGER AGREEMENTFlying J Inc. (“Flying J”) and Pilot TravelCenters LLC (“Pilot”) announced thatthey have entered into a preliminarymerger agreement that will provide aframework for Flying J’s core travel plazabusiness to emerge from Chapter 11bankruptcy protection. Under the terms ofthe Letter of Intent filed July 14 with theU.S. Bankruptcy Court in Delaware, thevalue indicated would allow all Flying Jcreditor obligations to be paid in full.Pilot has also agreed to provide $100 mil-lion in Debtor-in-Possession financing forFlying J’s operations, subject to Courtapproval and various conditions.

“After a careful and exhaustivereview of the alternatives available, wehave concluded that a merger with Pilotrepresents the best possible outcome forFlying J, our creditors, our customers andour employees,” says Crystal CallMaggelet, Chairman of the Board, FlyingJ. “Over the next few months, we willnegotiate definitive agreements to mergeour companies. This transaction will allowus to emerge from the bankruptcy processrelatively quickly thereafter and to start anew chapter in the Flying J story.”

Jimmy Haslam, CEO of Pilot, says,“We believe that by combining Flying Jand Pilot we will better serve our cus-tomers by more efficiently providingthem with the products and services theyneed. We look forward to working close-ly with Flying J and its employees duringthe Chapter 11 emergence process, and aswe take the next steps of a new beginningfor both of our companies.”

The preliminary merger agreement

with Pilot pertains specifically to FlyingJ’s core travel plaza business, and itexcludes Longhorn Pipeline, Big WestOil, Flying J Oil & Gas, HaycockPetroleum and Transportation AllianceBank. Flying J is in the process of pursu-ing or evaluating alternatives for each ofthese other businesses.

Flying J filed for Chapter 11 protec-tions on Dec. 22, 2008, after a precipi-tous drop in oil prices and disruption inthe credit markets brought to bear signif-icant short-term pressure on the compa-ny’s liquidity position.

Flying J’s legal advisor is Kirkland& Ellis LLP and its financial advisor isThe Blackstone Group L.P. Pilot’s legaladvisor is White & Case LLP.

About Flying J

Based in Ogden, Utah, Flying J Inc. isamong the 20 largest private companiesin America, with 2007 sales exceeding$16 billion. This fully integrated oil com-pany employs approximately 14,700 peo-ple in the U.S. and Canada through itsinterstate operations, transportation,refining and supply, exploration and pro-duction, as well as its financial servicesand communications divisions.

About Pilot

Pilot Travel Centers LLC is the nation’slargest retail operator of Travel Centers,catering to the professional driver andtraveling motorist in 41 states with morethan 300 retail interstate properties. Thecompany is headquartered in Knoxville,Tenn. and employs 13,000 nationwide.

new productsnew products

ConvenienceRETAILER 17July/August 2009

As the No. 1 selling brand of smokeless tobacco inthe country, Grizzly® has come a long way from itsfirst introduction in 2001. More than one out ofevery five cans of moist smokeless sold is Grizzly.Grizzly continues to grow into a category giant—having 25 percent market share and capturing 99percent of the category growth.

Conwood Company LLCPhone: 901-761-2050www.cwdlp.com

Introducing Dr Pepper Cherry. The newest,smoothest addition to the Dr Pepper family that’sso amazingly smooth you just have to try it. NewDr Pepper Cherry. A kiss of cherry flavor makesit the smoothest Dr Pepper ever. Drink it smooth.Dr’s orders.

Dr Pepper-Snapple Groupwww.drpeppersnapplegroup.com

Oberto is bigger and better than Ever! Now Obertois delivering a complete line-up of high-velocitySKUs, improved margins and better penny profit forretailers. Watch for exciting integrated marketingprograms and continuous innovation hitting themarket in 2010. To order, contact Harry Parent at469-814-1647 or harry.parent@crossmark.com.

Oberto Sausage CompanyPhone: 877-453-7591www.obertosausagecompany.com

Sheetz Inc. will offer First Data’s GO-Tag pay-ment technology solution, allowing consumers tomake purchases by tapping their sticker on a con-tactless reader, and will being selling it at all of its350 locations across the U.S. by the end of July,the company reports. The GO-Tag solutiondeployed by Sheetz is configured as an open-loop,reloadable prepaid payment sticker and can beused wherever Visa payWave is accepted. Forthose merchant locations that do not accept con-tactless payments, the GO-Tag solution includes aseparate magnetic-stripe Visa prepaid card,according to the company.

“We are always looking for ways to improve thein-store experience for our customers by makingpurchases faster and more convenient,” says LouieSheetz, Executive Vice President, Sheetz marketing.“This new GO-Tag technology will make things eas-ier for customers, as well as for our store employees.We are excited to be among the first retailers toimplement this system.”

The GO-Tag solution offers consumers the flex-ibility to place the contactless payment sticker onanything they routinely carry, such as an employeebadge, student ID or other personal item.

Sheetz Inc.www.sheetz.com

Kids love the new Quench® Pint Bottle—filled withapproximately 25 chunks of Quench Gum.Reuseable BPA-free water bottle contains assort-ment of Orange, Fruit and Lemon flavors. It’s aneye-catching way to tell the mouth quenching storyof Quench® Gum. Kids Love It. Athletes DemandIt.™ Complement the “On The Go” water bottlewith the Quench Gum water bottle sidekick/countertop display. Waterbottle is a great way tomerchandise Quench 10-stick packs.

Mueller Sports Medicine Inc.Phone: 608-643-8530, ext. 376sarah.stout@muellersportsmed.comwww.muellersportsmed.com

Bambu opened its doors in 1764 (originally makingBible paper!) to gradually become the manufacturerof The World’s Finest Rolling Papers. The Bambuname lives on today through their reputation ofquality paper products, which are available in ninenew flavors as well as their classic Regular, and BigBambu and Pure Hemp papers!

Bambu Sales Inc.Phone: 516-333-4080 www.bambu.com

Energy Club Inc. introduces alarge Stand Up Bag Program of healthy mixes! With almosttwo pounds in each bag, EnergyClub successfully combines high perceived value withupscale graphics and qualityproduct to produce a sure winner.Re-closable with a zip lock top,long shelf life and wide appeal.

Energy Club Inc.Phone: 800-324-9180vguiliano@energyclub.com

18 ConvenienceRETAILER July/August 2009

new products

For more than five decades, BAERO has been theEuropean leader in market lighting. In 2006,BAERO North America Inc. introduced the sameGerman engineered luminaires and lamps to theUnited States and Canada. Included in BAERO’sline of lighting products is the Canopus Batwingwhich provides both unmatched product display andincredible energy efficiency.

BAERO North America Inc. Phone: 314-692-2270 www.baerousa.com

YoCream introduces new Tremor™ flavors undertheir Rancher™ Beverage brand: Wild Berry,Mango, Fruit Punch and Green. The exciting newbeverages are boldly flavored, less sweet, a little tartand intensely colored. Available for frozen carbon-ated and uncarbonated applications.

Yo-Cream International Inc.Phone: 800-YOCREAM (800-962-7326)www.yocream.com

5-Hour Energy is the original two-ounce energy shot and outsells the No. 2 brand over 11-to-1, and outsells all other brands combinedby nearly 2.5-to-1. The top four selling energyshot SKUs are 5-Hour Energy. Do your storescarry all four?

5-Hour EnergyPhone: 248-960-1700www.5hourenergy.com

The Kellogg ConvenienceStore Team is announcinganother exciting additionto the channel—Special

K® Chocolatey Drizzle Cereal Bar! Every bite ofthis delicious, 90-calorie snack bar is full of rich chocolatey drizzle. The combination ofKellogg’s® Special K cereal and lightly sweetenedicing is one reason this bar is the fastest growingSpecial K bar flavor. And, with health-consciousconsumers wanting delicious, low-calorie, on-the-go snacks, this bar is just what consumers arelooking for.

Kellogg CompanyPhone: 269-961-2000 www.kelloggcompany.com

The snack fanatics and makers ofpopchips™, the pioneering all-natural popped chip company,announce the two newest popstarsin their all-natural line of poppedpotato chips: sour cream & onion,and cheddar. Fellow snackers whohave enjoyed spoiling their dinners

with popchips can now savor the creamy dip-with-in-a-chip taste of sour cream & onion, or the savorycheesy boldness of cheddar popped potato chips. Or better yet, both, now that they have two newdelicious (and still healthier) flavors to try.

popchipsPhone: 866-217-9327www.popchips.com

Meet the newest member of the Dot Foods premiumindividually wrapped brownie product line madewith branded ingredients. These moist and richbrownies are topped with real OREO® CookiePieces and baked to perfection. Sleek, upscale pack-aging and a beautiful, full color shipper/pop-up display merchandiser holding 12 individuallywrapped treats are guaranteed to get your customer-s’ attention. Love and Quiches Desserts’ quality willkeep them coming back for more. These super pre-mium three-ounce bars contain zero grams trans fatsand are kosher dairy.

Dot Foods Inc.Phone: 800-366-3687 www.dotfoods.com

The only clear, fruit-flavored, protein-based nutritiondrink on the market, Isopure Plus Nutritional Drinkis excellent for adults of all ages, shapes and sizeswho don't have time to eat properly. It's also ideal forseniors, chemotherapy patients and people receivinganti-retroviral therapy who often have difficulty get-ting enough protein into their diets. Packed with 15grams of high-quality ion-exchange whey proteinisolate, Isopure Plus Nutritional Drink has the high-est protein content per eight-ounce bottle in its cate-gory. It also contains all eight essential amino acidsin a fat-free, cholesterol-free formula.

With two great-tasting fruit flavors to choosefrom—Alpine Punch and Grape Frost—IsopurePlus is the clear alternative to thick or milkynutrition drinks.

The Isopure Company LLCPhone: 800-345-2378www.isopureplus.com

Launching a new C-store product? Email Jenna Crisostomo at editor@oser.com with “Convenience Retailer” in the subject line for alist of what to include and deadlines.

Republic Tobacco’s TOP Tobacco brand is giving adult smokers relief from high cigarette prices with its new TOP Superoll Tobacco, which is specially blended to provide more cigarettes for the price than other pouch or canned tobaccos, the companystateds. Top Superoll is blended from premium tobaccos, and is available in threestyles—Full Flavor, Menthol and Light. The new product will be available in small,

medium and large bags, along with pouch and canister packages.

Republic Tobacco Phone: 800-288-8888www.andromedan.com/republic/