STMA Chronicles October 2017

October 2017

AFTER HARVEY,
WHAT WILL HAPPEN
TO HOUSTON’S OIL
INDUSTRY?.....................................................PAGE 4-5

ARTICLE ARTICLE Promotions
.....................Pages 9-12
Halloween, Scare Up Retailers Face Gouging
Convenience Store Sales. Lawsuits Post-Hurricane.

Page 7 Page 14

STMA PREFERRED VENDORS Vendor Name Contact Person Contact #

Airup Norman 512-800-2012
Amerigas Kimberly Sinclair 210-323-5183
ATM Link Noorani Dholasaniya 281-568-4443
Big Red Benny Jaramillo 210– 662-4410
Breeden Benefit Group Darrell Breeden 512- 567-9797
Cintas Lindsey Marmolejo 210- 224-6321
Coca-Cola Devlin Howton 210- 394-3543
Del Norte Foods Gustavo Leal 210- 845-3515
Fresh Air Filter Services George Dauberman 210- 241-9578
Frito Lay Jesse Apolinar 210- 849-5543
Frito Lay- Corpus Christi Gabe Menchace 956- 369-3292
GSC Pete Bowles 210- 533-1281
Hiland Dairy Curtis Hampsten 210–380-0217
Law Security Pam 210-340-0306
Leo Chips Steve 210- 396-8175
Orkins Dan Hatcher 210- 946-2925
Pepsi George Montoya 210-452-1581
Phillip Morris USA Susan 210– 387-0645
Pinnacle Propane Express Raheed Richardson 281- 780-4783
Prestige Pest Control Paul Clark 210- 822-7378
Property Tax Frank Timmerman 210- 224-9245
Quality Nozzle Company Anil Momin 800- 243-0954
Red Bull Gerad Valdez 210- 661-6664
Star Lighting Houston Moiz Momin 832- 878-7533
Swisher Dan Karlbach 210- 733-1122
T & D Dist Donna Price 512- 755-1068
Tastee Kreme (Blue Bunny) Brian Ybarbo 210- 980-3751
TCEQ Nathan Weiss 210- 490-3096
Texas Inventory Rahim Charolia 210- 473-3208
The Hershey Company Bridget Binning 254- 498-8562
Toms & Lance Allen Pundt 210- 227-1702
Waste Managment Rachel Flores 210- 619-7749
World Pay Tanya Ali 678- 587-1279
Yumi Ice Cream Frank Martinez 210- 227-9864

2 STMA CHRONICLES - OCTOBER 2017

STMA BOARD CONTENTS
    STMA CHRONICLES - OCTOBER 2017                                   
President
Sadruddin Sarfani 4-5 After Harvey, What will happen to Houston’s oil
industry? -Cover Article
Vice-President
Nizarali Maredia 7 Halloween, Scare Up Convenience Store Sales
- Article
Honorary Secretary
Amin P Mohammad 9-12 STMA Wholesale Promotions

Treasurer 14 Retailers Face Gouging Lawsuits
Amin V Mohamed Post-Hurricane. - Article

Director 16 STMA Communication
Iqbal Karediya
18-19 Monthly promotions and promo sheet
Director
Hasam Ali
Paid Advertisement
Director
Nooru Lalani

Director
Inayatali J Momin

Director
Mustak Ali

Director
Saleem Ali

Director
Rukmuddin Momin

Director
Noorallah Dhuka

Director
Rahim Ali

_________________
OFFICE:

12054 STARCREST DR.
SAN ANTONIO,
TX-78247

MON - FRI 9AM TO 5PM

PH: 210-826-3786
FAX: 210-672-2898
WWW.MYSTMA.COM

STMA CHRONICLES - OCTOBER 2017 3

COVER ARTICLE

AFTER HARVEY, WHAT WILL
HAPPEN TO HOUSTON’S OIL
INDUSTRY?.

During this year’s record-breaking hurricane season, oil rigs and refineries were just as exposed as any structure
on the precarious Gulf Coast, and their owners were limited to the same options as everyone else: evacuate,
prepare, and hope the storm was merciful. The devastation Harvey and other storms left behind illuminates just
how defenseless oil and gas infrastructure is in the face of hurricanes that are growing in magnitude and frequency
and challenging the permanence of the oil and gas industry’s presence in the Gulf.

Harvey shut down 22 percent As weather events become more The Threat of Lost Jobs
of the nation’s refining capacity, erratic and disruptive, the question
vitally disrupted the oil and gas becomes whether the Gulf ’s oil The oil and gas industry provides
transportation networks that deliver and gas infrastructure can remain 12.2 percent of the jobs in Texas, 11
energy to much of the US, and caused functional in the long term. Will oil percent of the jobs in Louisiana, 5.3
damage to facilities that leaked more and gas companies choose to keep percent of the jobs in Mississippi, and
than a million pounds of dangerous repairing and reinforcing their 3.4 percent of the jobs in Alabama,
air pollutants into communities facilities in the Gulf, or will they according to a study conducted
around Texas. The road back to full move on? If they cut and run, what by PricewaterhouseCoopers for
operational capacity will take weeks, will happen to the communities they the American Petroleum Institute.
if not months. leave behind? Across the entire Gulf Coast, the
It’s no secret that oil and gas oil and gas industry employs 2.7
infrastructure along the Gulf Coast is million people. These jobs are
increasingly at risk and that climate concentrated in the coastal counties
change could render it useless. The and municipalities of these states,
US Government Accountability meaning that the disproportionate
Office, the Department of Energy, the over-reliance on oil and gas
Department of Natural Resources, employment in some communities
countless environmental groups, and is even more extreme than the above
oil and gas industry representatives percentages indicate.
have all openly warned of the coming The states that encircle the Gulf of
catastrophe.

4 STMA CHRONICLES - OCTOBER 2017

Mexico supply 76 percent of the
nation’s liquid fuel and maintain
nearly half of the refining capacity
of the United States.

Following the Money

Will oil and gas companies so
easily abandon decades worth of
infrastructure investment?

One consideration will be the Pushing to Diversify the other hand, are severely lacking.
ongoing cost of repairing and A portion of state subsidies could be
reinforcing energy facilities. In One way for communities to insulate redirected toward proven programs
2005, Hurricanes Katrina and themselves from the decisions of oil copied from other states, such as
Rita inflicted $10 billion worth of and gas companies is to stop leaning the Solar Ready Colorado initiative,
damage to energy infrastructure on them so heavily for employment. which retrains unemployed
alone. And the incidence of these Another is to entice industries and miners and oil and gas workers
costly reconstructions are likely to jobs that aren’t so threatened by for employment in the burgeoning
increase. According to a report by climate change. Renewable energy renewables industry.
the Department of Energy, a one fulfills both conditions. The next step would be to overhaul
degree Celsius increase in global According to a report by the Center the policy and regulatory landscapes
temperatures would make Katrina- for Climate and Energy Solutions, of Gulf states to make them more
magnitude events up to seven times the Gulf is very well situated to attractive to renewable energy
more likely. develop a flourishing renewable businesses. Overregulation is
The decision to stay or go will likely energy industry. It receives more an oft-cited economy killer, but
also hinge on the regularity and solar radiation than most of the under-regulation can cause issues,
gravity of operational disruptions. country and contains a bounty of too. With perhaps the exception
The closure of an oil and gas facility geothermal energy sources. The of Texas, the Gulf Coast policy
for even a short time has significant Department of Energy claims that landscape surrounding renewable
implications for a company’s the Gulf of Mexico has some of the energy is cloudy and ambiguous.
bottom line because they can’t just greatest offshore wind potential in The incentives that do exist are
immediately switch back on. The the US, and the Gulf currents as well also vulnerable to being capped
two biggest refineries in the US were as the region’s many rivers create an or eliminated. All of this creates
forced to shut down by Harvey. Over ideal landscape for hydropower. On an uncertainty and confusion that
two weeks later, neither is back to top of all this, the Gulf region already repels business.
full operational capacity. has a trained, experienced workforce Whether Gulf State governments
There’s no doubt that moving in the energy industry. can break away from oil and gas
the bulk of America’s oil and gas Gulf states could accomplish this influence and make these changes is
infrastructure away from the transition without federal help by yet to be seen. But the last few weeks
Gulf would be a mammoth task. rerouting some of the copious state- have made clear that the economic
The oil and gas production and level oil and gas subsidies towards consequences of climate change
transportation system is complex renewables. In Louisiana, one oil compound the destructiveness of
and interdependent, relying on company alone, Cheniere Energy, environmental ones—and Gulf
thousands of entities working in has received over $3 billion in states need to be ready if the oil and
unison around the clock. There is state subsidies. State incentives for gas industry is swept away.
also a question as to whether other renewable energy in Gulf States, on
coastal states would be as welcoming
to the buildup of pipelines that
inevitably leak or refineries that spew
toxic fumes into the neighborhoods
they inhabit.

STMA CHRONICLES - OCTOBER 2017 5

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ARTICLE

Halloween, Scare
Up Convenience
Store Sales

Increased Spending been consumed, and households
need to replenish for the actual
Halloween spending last year hit holiday. Convenience stores can be
$8.4 billion, the highest in the history the beneficiaries of these last-minute
of the National Retail Federation’s purchases because they offer quick
annual survey. service, usually 24 hours a day.

A fair share of that total will be Adults and Halloween
spent on candy, and convenience-
store retailers could benefit from a According to a study by BevMo!, 84%
surge in sales that comes the week of adults said they plan on buying
before the holiday, said Larry Levin, alcohol to celebrate Halloween. 50%
executive vice president, consumer said they will opt for a liquor-based
and shopper marketing for IRI. beverage, 24% will reach for a beer,
This year, Halloween falls on a and 23% want a glass of wine. 86%
Tuesday, and parties will likely occur of people attending holiday parties
during the weekend, with trick-or- say they will bring alcohol, only
treating on Tuesday the 31st. 11% said they will bring candy, 3%
According to the NRF survey, will bring nothing. This is another
consumers plan to spend $3.1 billion chance to increase c-store sales.
on costumes (purchased by 67% of Running alcohol promotions will
Halloween shoppers), $2.5 billion help boost sales as most adults
on candy (94.3%), $2.4 billion on attending parties plan to celebrate on
decorations (70%) and $390 million the Saturday before Halloween as the
on greeting cards (35.4%). holiday falls on a Tuesday this year.
Convenience stores should pay 37% of adults plan on attending or
attention to the week before hosting an adult party. One in five
Halloween for candy sales, Research respondents will stay home and
shows that sales surge a few days hand out candy, and 13% will take
just before a holiday. In the case their kids trick-or-treating. Only 2%
of Halloween, that’s often because plan to visit a haunted house.
candy purchased earlier may have

STMA CHRONICLES - OCTOBER 2017 7

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S T M A C H R O N I C L E S - O C T O B E R 2 0 1 7 11



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ARTICLE

Retailers Face Gouging Lawsuits Post-Hurricane

AUSTIN, Texas -- The first lawsuits have been filed against gasoline retailers over alleged hurri-
cane-related price gouging.

After receiving more than 3,300 Harvey’s landfall. In his request to the FTC, Schumer
price-gouging complaints related to Defendants found guilty of price observed that gas prices in New
Hurricane Harvey, Texas Attorney gouging face civil penalties up to York rose quickly before and during
General Ken Paxton has filed $20,000 per violation, with extra Harvey and Irma but had the
lawsuits against two fuel retailers. fines up to $250,000 for incidents potential to be “sticky,” or fall very
Texas law forbids businesses from involving a consumer who is 65 slowly, afterward.
charging exorbitant prices for years or older. “The only thing that makes a
necessities such as gasoline during devastating natural disaster worse is
a declared disaster. Gouge Watch the idea that big oil could be making
One of the retailers charged is Bains a buck off of the mess and hosing
Brothers LLC, Dallas, which owns Separately, New York Sen. Chuck consumers, even after the storm
three Texaco-branded sites in the Schumer has asked the Federal has passed us by and the recovery
Dallas-Fort Worth area. According Trade Commission (FTC) to create has begun,” Schumer said. While
to the attorney general’s lawsuit, the a “gouge watch” to ensure gasoline he noted that the FTC’s powers to
retailer was selling regular-grade prices fall as quickly as they rise control price gouging are limited,
gasoline for $2.29 per gallon on Aug. during disruptive weather events. he argued the agency could put the
30, 2017, five days after Hurricane “In terms of this nation’s supply and petroleum industry “on notice” by
Harvey’s landfall. Within less than demand for gasoline, hurricanes issuing a gouge watch.
24 hours, two of Bains Brothers’ Harvey and Irma were short-term
stations allegedly raised their price disruptions that really shouldn’t have
for regular to $6.99 per gallon. a long-term impact on prices at the
The second fuel retailer being sued pump,” said Schumer in a statement.
is Encinal Fuel LLC, which owns a “Gas prices should come back down
Chevron-branded site in Encinal, to earth just as fast as they went up,
Texas, outside of Laredo. According but right now, my worry is they will
to the attorney general’s lawsuit, the not fall as fast as they should. That is
retailer allegedly charged $8.99 and why I am asking the FTC to launch
$9.99 per gallon for regular-grade a ‘gouge watch’ with oil producers,
gasoline on Aug. 31, six days after transporters and refiners alike.”

14 S T M A C H R O N I C L E S - O C T O B E R 2 0 1 7



COMMUNICATION

ClasCsiflieadssified REBATE CHECK

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UST CLASS A AND CLASS B CERTIFICATION

Members who have successfully done UST Certification (TECQ)
class in year 2015, there certifcation is going to expire and is

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STMA Office at 210-826-3786

WEBSITE & SOCIAL MEDIA

Visit our newly design website www.mystma.com which has a new look with newly

added features. Under the members tab on the wesite, you’ll find the member’s portal, new
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Also, follow us on social media /myST MA1

16 S T M A C H R O N I C L E S - O C T O B E R 2 0 1 7

Chicago / Oct 17-20 / McCormick Place

Every year, the NACS Show brings
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industry professionals for four days of
learning, buying and selling, networking
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grow their bottom line.

Who Attends

As convenience and fuel retailing’s premier
industry event, the NACS Show attracts
more than 23,500 industry stakeholders from
around the world. Buyers and sellers come
together to conduct business and learn from
one another — all in an environment rich
with new ideas and partnerships. The NACS
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with convenience and fuel retailing industry
peers and experts.

About the Expo

The 400,000 sq. ft. expo is where you will
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Educational sessions range from specific
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For more information visit
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MONTHLY PROMOTIONS

  OCTOBER 2017                                     

COCA-COLA & 2 for BIG RED 2 for XYIENCE 2 for
FANTA PRODUCT 20 oz Bottles 16 oz Cans
$8 orsingle $3 orsingle $3.33or single at regular price.
12 PACK at regular at regular offer expires on October 31, 2017
price. price.
offer expires on October 31, 2017 offer expires on October 31, 2017

GRAB IRRESISTIBLE

FLAVORS

  NOVEMBER 2017                                     

COKE 20 OZ BOTTLE

BIGRED REDBULL FRITO LAYS
12 PACK 8 OZ CAN

18 S T M A C H R O N I C L E S - O C T O B E R 2 0 1 7

October Promo Sheet 2017 *Blended Margin% is
based on 70% Promo
and 30% Regular Sale

PROMO PRODUCTS Promo Type Case Promo invoice cost STMA Net cost after Net unit Promo Net promo Regular Blended Margin%
Qty Incentives incentives cost Pricing Margin % SRP

ALL Lays $1.69 In Store 1$ 1.12 $ 1.12 $ 1.12 2/$3.00 25% $ 1.69 28%
Hot and Spicy - Dinamitas - Cheetos In Store 1$ 1.12 $ 1.69 28%
Grandmas cookie shipper In Store 1$ 0.59 $ 1.12 $ 1.12 2/$3.00 25% $ 0.99 40%

$ 0.59 $ 0.59 $ 0.99 40%

PROMO PRODUCTS Promo Type Case Promo invoice cost STMA Net cost after Net unit Promo Net promo Regular Blended Margin%
Qty Incentives incentives cost Pricing Margin % SRP

Coke 12Pk Poster 1 2$ 8.10 $ 1.00 $ 7.10 $ 3.55 2/$8.00 11% $ 5.99 20%
12pks, FANTA, BARQS, RED FLASH Poster 1 2$ 7.60 $ 0.50 $ 7.10 $ 3.55 2/$8.00 11% $ 5.99 20%

PROMO PRODUCTS Promo Type Case Promo invoice cost STMA Net cost after Net unit Promo Net promo Regular Blended Margin%
Qty Incentives incentives cost Pricing Margin % SRP

Xyiance Energy Poster 2 12 $ 13.33 $ 13.33 $ 1.11 2/$3.33 33% $ 1.99 37%
Big Red 20oz CSD Poster 3 24 $ 20.25 $ 1.89 47%
16oz Body Armor Digital Media 12 $ 12.50 $ 20.25 $ 0.84 2/$3.00 44% $ 1.99 36%
18oz Bai Digital Media 12 $ 17.30 $ 2.99 35%
32oz Snapple Digital Media 12 $ 12.65 $ 12.50 $ 1.04 2/$3.00 31% $ 2.29 37%
Big Red 16oz cans (Qty 24) All Year 24 $ 14.50 $ 1.00 40%
S T M A C H R O N I C L E S - O C T O B E R 2 0 1 7 19 Deja Blue 1 liter (Qty 15) All Year 15 $ 7.00 $ 17.30 $ 1.44 2/$4.00 28% $ 1.29 56%
Big Red 2 liter (Qty 8) All Year 8$ 9.10 $ 1.99 35%
$ 12.65 $ 1.05 2/$3.00 30%

$ 14.50 $ 0.60 2/$2.00 40%

$ 7.00 $ 0.47 2/$2.00 53%

$ 9.10 $ 1.14 2/$3.33 32%

PROMO PRODUCTS Promo Type Case Promo invoice cost STMA Net cost after Net unit Promo Net promo Regular Blended Margin%
Qty Incentives incentives cost Pricing Margin % SRP

All 1- Liter Aquafina Spanner 15 $ 9.45 $ 9.45 $ 0.63 $ 0.99 36% $ 1.79 45%
29%
All 1-Liter Lipton Brisk Spanner 15 $ 10.50 $ 10.50 $ 0.70 $ 0.99 35% $ 1.99 40%
23%
20oz CSD Flavors " Crush, SOL, Mist Twist, Schwepps, In Store 24 $ 15.60 $ 15.60 $ 0.65 2/$2 40% $ 1.79 44%
40%
20oz Gatorade In Store 24 $ 18.50 $ 18.50 $ 0.77 2/$2 $ 2.09 35%
Net promo
Rockstar 16oz & 15oz Organic (Qty 24) All year 24 $ 21.50 $ 21.50 $ 0.90 2/$3.00 Margin % $ 1.69 42%

AMP 16oz (Qty 24) All year 24 $ 21.50 $ 21.50 $ 0.90 2/$3.00 19% $ 1.69 42%
42%
PROMO PRODUCTS Promo Type Case Promo invoice cost STMA Net cost after Net unit Promo 47% Regular Blended Margin%
For Corpus Members ONLY Qty Incentives incentives cost Pricing Net promo SRP
Margin %
Auafina 24pk In Store 1$ 3.25 $ 3.25 $ 3.25 $ 3.99 33% $ 4.99 23%

Pepsi 20oz In Store 24 $ 17.50 $ 17.50 $ 0.73 2/$2.50 $ 1.89 48%

Rockstar 16oz In Store 24 $ 21.50 $ 21.50 $ 0.90 $ 1.69 $ 2.49 52%

PROMO PRODUCTS Promo Type Case Promo invoice cost STMA Net cost after Net unit Promo Regular Blended Margin%
Qty Incentives incentives cost Pricing SRP

Red Bull 8.4oz (Qty 24) All Year 24 $ 33.90 $ 33.90 $ 1.41 2/$4.22 $ 2.29 35%

POSTER 1: Coke 12Pk @ 2/$8.00

POSTER 2: xyiance Energy 16oz @ 2/$3.33

POSTER 3: Bigred 20oz CSD @ 2/$3.00

SPANNER: Aquafina and Brisk 1liter @.99Cent

Comment: All of the promos above are Mandatory for members.

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