MARCH 2024
STMA CHRONICLES TABLE OF CONTENTS RIYAZ MOMIN Director IMTIYAZ PRASLA Director ARIF MOHAMMED Director BAHADUR RATNANI Director RAFIK MOMIN Director AHMED BADARPURA President NAUSHADALI MAREDIA Vice. President INAYAT MOMIN Hon. Secretary SHAUKAT MOMIN Treasurer STMA vendor contact list � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 3 Featured stores of the month � � � � � � � � � � � � � � � � � � � � � � � � � � � � 6 - 7 C-store Shoppers Are Tapping Into Innovation in the Cold Vault � � � 10 - 11 In The Box March 2024 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 18 March 2024 Promo Sheet � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 19 Small Operators Face 2024 With Tempered Optimism � � � � � � � � 16 - 17 BOARD OF DIRECTORS MARCH 2024 2 STMA Newsletter March 2024
SOUTH TEXAS MERCHANTS ASSOCIATION VENDOR CONTACT LIST COMPANY VENDOR CONTACT NAME EMAIL ADDRESS PHONE NUMBER ALKA HYDRATE WATER ADRIAN MENDIOLA [email protected] 210-385-9264 AMCOM RESEARCH COMPANY BRYAN HENN 412-401-0938 BIG RED (KDP) BENNY JARAMILLO [email protected] 210-669-5360 BIG RED (KDP) DARRYL LEMEAR [email protected] 512-851-6997 BIMBO BACKERY EXPRESS SOUTH RECARDO GONZALEZ [email protected] 510-755-0495 BIMBO BACKERY EXPRESS SOUTH JESSE APOLINAR [email protected] 210-849-5543 BLUE RHINO ROLAND PUREVICH [email protected] 317-919-6992 BLUEBONNET ICE CREAM MELODI ROUHANI - 972-251-2100 BLUEBONNET ICE CREAM BRIAN YBARBO bybarbo@bluebonne�cecream.com 210-267-2799 BREEDEN BENEFIT GROUP TENA GARCIA [email protected] 512-567-9797 BREEDEN BENEFIT GROUP DARELL BREEDEN [email protected] 512-567-9797 BUGS HUNTERS PEST CONTROL INC SILVIA BURGESS [email protected] 210-816-0284 C4 ENERGY MARCUS GONZALEZ [email protected] 210-897-8779 C4 ENERGY MIKE GUTMAN [email protected] 940-315-6523 CELSIUS ENERGY JOE LUETGE [email protected] 561-765-0059 CELSIUS ENERGY ERICH KLEEMAN [email protected] 830-456-1738 CINTAS RYAN WILHITE [email protected] 210-648-3075 CINTAS FIRE JERMY MOYE - 832-641-6693 COKE BRIAN KELLEY [email protected] 210-749-9075 COINCLOUD BITCOIN RICH CARETSKTY - 305-582-0178 COKE JERMY SCHMITTOU jeremy.schmi�[email protected] 210-487-1736 CONGO BRANDS (PRIME AND ALANI) MEGAN DIMAS [email protected] 210-324-3519 ELECTROLIT USA SEAN CUNNINGHAM [email protected] 713-791-4659 EMPIRE PAYTECH KARISHMA SHARIF 713-979-6585 ESSENTIA WATER CHARLONDA MCDONALD [email protected] [email protected] 214-236-7960 EVAMOR WATER GLENN CARTER [email protected] 210-837-1093 FIJI WATER KEN JONES [email protected] 346-386-9842 FRITO LAY EMILY SCHWARTZKOPF-GATEWOOD [email protected] 618-314-3300 GLAZERS - For Alcholic Products Distribu�ons JJ GONZALEZ [email protected] 210-887-8667 GLAZERS - For Non Alcholic Products Distribu�ons JUSTIN TUCKERS jus�[email protected] 210-838-3741 HILAND DAIRY FOODS CURTIS HAMPSTEN [email protected] 210-380-0127 LAW SECURITY PAM WOOD - 210-771-7714 MEXICAN SNACKS MARIO GODINEZ [email protected] 956-440-9127 MODISOFT ZARIFA ARIFI admin@modiso�.com 281-201-6838 NATIONAL BITCOIN KENDALL JASCO 949-329-2845 OCONNOR COMMERCIAL PROPERTY TAX CONSULTANT DEREK PENA [email protected] 210-323-7876 PEPSI KEVIN CUELLAR [email protected] 210-372-3881 PEPSI LARRY MIRELES [email protected] 210-775-8378 PEPSI AYMAN JARADI [email protected] 832-526-7544 PEPSI RAMIRO GARZA [email protected] 210-774-7729 RAPIDXCHANGE SAM HARDIN [email protected] 713-444-1678 REDBULL MANUEL GONZALEZ [email protected] 210-997-2337 REDBULL KENDRA DAVIS [email protected] 210-784-7180 SILVER EAGLE BEVERAGES - For Alcholic Products Distribu�ons DENNIS DIEM [email protected] 210-475-6930 SILVER EAGLE BEVERAGES - For Non Alcholic Products Distribu�ons MARK NAVARRO [email protected] 210-685-6000 SOLVE HR DAN CARDENAS [email protected] 210-912-4002 STMA PRINTING ZEESHAN DHUKA prin�[email protected] 210-672-6006 EXT:109 STMA WAREHOUSE MARIA BEGUM / JASSAD MOMIN [email protected] 210-672-6006 T&D DIST DONA PICE [email protected] 512-755-1068 UPTIME ENERGY TRAVIS WILKERSON twilkerson@up�meenergy.com 409-790-3059 UPTIME ENERGY VENNIE PALMIERI vpalmieri@up�meenergy.com 661-210-9787 WASTE MANAGEMENT CUSTOMER CARE - 800-800-5804 WASTE MANAGEMENT GUZMAN JR. JAMES [email protected] 210-365-9802 XPRESS SANI AARON WOOD [email protected] 210-733-1122 YUMI ICE CREAM GERARDO MORALES [email protected] 120-540-3472 ZEN WATER DUSTIN MEADE dus�[email protected] 832-702-6902 STMA Newsletter March 2024 3
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Houston: 294-0466 EFax: (800) 783-0422 San Antonio: 729-1000 EFax: (800) 783-0422 Mohammed Manji: Mobile: (210) 373-9209 Toll Free: (866) 294-0466 Email: [email protected] Address: 1449 Highway 6 Suite #300 Sugar Land, TX 77478 WebSite: www.empirepaytech.com STMA Newsletter March 2024 5
OF THE MONTH FEATURED STORES COYOTE EXPRESS STMA ID: 3791 6 STMA Newsletter March 2024
OF THE MONTH FEATURED STORES MEGA SHOP STMA ID: 4240 STMA Newsletter March 2024 7
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ARE ON POINT IN THE PACKAGED BEVERAGES CATEGORY. Coca-Cola’s “2023 iSHOP Tracking Study” showed that consumers in the 16-to-24 age range shop 25% more in the convenience channel than the average shopper. “And we know that younger drinkers prioritize fun and discovery,” Austin noted. By: Kathleen Furore || Retrieved from: https://csnews.com/c-store-shoppers-are-tapping-innovation-cold-vault OPTIONS AND NEW PACKAGING NATIONAL REPORT — The horizon appears bright for packaged beverages in the convenience channel, as the category turned in a solid performance for most of last year. Convenience store retailers are also cautiously optimistic about the category’s 2024 prospects. More than half of the c-store retailers surveyed for the 2024 Convenience Store News Forecast Study (52%) said they foresee their average per-store dollar sales of packaged beverages increasing in 2024, while 43% expect sales to hold steady. Just 5% expect a decrease. In terms of unit volume, the percentage of c-store retailers who anticipate their packaged beverage volume will increase in 2024 jumped 10 points vs. last year to reach 49%, while 43% expect steady volume. Just 8% are bracing for a decrease in average per-store volume. Innovation and limited-edition flavors are top trends for both the category and the channel — and they’re things retailers and suppliers alike are seeking as they try to attract the next generation of shoppers, specifically Generation Z consumers who over-index in the convenience retail channel, according to Carlton Austin, director of convenience retail strategy for the North America Operating Unit of The Coca-Cola Co. He also cited a 2022 YouGov study on packaging that revealed new and different packaging is a key purchase driver. “Snacking also is on the rise, and younger drinkers are looking for the right-size packaging for every drinking occasion,” he said. “For c-store, this could take shape in the form of offering a wider variety of packaging sizes to meet the consumption preferences of Gen Z.” Coca-Cola is tapping into that push for packaging options with 12-ounce sleek cans for products including its core Coca-Cola, Sprite and Coke Zero brands, and its new CocaCola Spiced that is launching in February. This packaging is geared toward Gen Zers “who view 12-ounce as the ideal ARTICLE 2024 MARCH C-STORE SHOPPERS ARE TAPPING INTO INNOVATION IN THE COLD VAULT ZERO-SUGAR 10 STMA Newsletter March 2024
Look for innovative, trending products. This is especially key to attracting Gen Z consumers, according to Austin, who recommends considering products with unique flavors, functional benefits and sustainable packaging. Refresh and diversify your range of products in-store regularly. “That can create a sense of excitement and novelty, encouraging repeat purchases and fostering brand loyalty among Gen Z consumers,” Austin pointed out. Consider grab-and-go options along with food and beverage and snack pairings. According to Matthews, this will attract today’s consumers who want their shopping experience, especially at convenience stores, to be tailored to meet the needs of their busy lifestyles. “We know 60% of c-store shoppers are looking for a meal, so it is important to make the meal experience even more complete and convenient by bundling prepared foods with the right snacks and beverages,” he said. Merchandise relevant food and beverage items at checkout for impulse purchases. This approach, Matthews said, “is among the top drivers of choice for shoppers.” Implement a comprehensive pump-to-purchase marketing strategy. This will allow retailers to engage customers at every stage of their shopping journey, from the moment they approach the store to when they make a purchase and leave, Austin said. “Utilize eye-catching signage, interactive displays and appealing visual merchandising both inside and outside the store to capture their attention and guide them to the beverage section,” he suggested. Enhance omnichannel marketing. Increasing the touchpoints throughout the entire shopper journey, starting with digital communications and continuing the messaging from the curb to the cold vault, is one of the biggest ways retailers can communicate with customers to boost packaged beverage sales. consumption size, and also offers additional space for marketing, allowing brands to capitalize on exciting graphics and offers that appeal to this audience,” Austin said. At PepsiCo Beverages North America, the company is seeing increased interest in better-for-you, zero-sugar offerings. Chief Commercial Officer Chad Matthews pointed to this segment as a key growth area for PepsiCo brands. “When our flagship brand Pepsi unveiled its new logo and visual identity [last] year, the design brought in the color black, further showing the brand’s commitment to Pepsi Zero Sugar,” Matthews explained. “Throughout our portfolio, we’re leaning into zero-sugar options, including recently launched Starry and Mug Zero Sugar launching in 2024.” Matthews also identified consumer desire for all-day hydration and for products in the functional energy space as current packaged beverage trends. Electrolyte-infused Gatorade Water — PepsiCo’s first unflavored water, launching in the first quarter of 2024 — is the company’s pitch to active consumers looking for all-day hydration, while Rockstar Focus — a 12-ounce subline launching nationally in Q1 2024 — meets the demand for functional energy beverages thanks to its 200 milligrams of caffeine, zero sugar, zero calories and Lion’s Mane extract. With so many options in the packaged beverages category, knowing the best products to carry can be challenging, especially for stores with limited shelf and cold vault space. Austin and Matthews say there are several things to keep in mind when deciding on inventory. “First and foremost, retailers should prioritize high-velocity SKUs to ensure that they are maximizing the turnover rate of products within the confined space,” Austin said, noting however that it is equally important to not lose sight of emerging trends and the potential for the next big thing. “Striking the right balance between best-sellers and upcoming innovations can help maintain a competitive edge.” Austin and Matthews also offered up the following suggestions for how convenience store retailers should merchandise and market packaged beverages to boost sales: Keeping a keen focus on the shopper’s perspective while developing the product set is crucial as well, according to Austin. By taking this step, “retailers can ensure that the selection resonates with the needs, preferences and shopping habits of their audience, thereby enhancing the chances of increased sales and customer satisfaction,” he explained. Matthews likewise stressed the importance of employing a customer-focused approach to packaged beverage inventory, noting that “the best way to optimize growth is to leverage data to meet shoppers’ specific needs.” “We’ve found it is important to adapt assortment based on shopper attitudes and preferences as a way to win repeat visits and increase market share, and even compete with quick-service restaurants,” he added. TIPS ON INVENTORY TIPS ON MERCHANDISING & MARKETING STMA Newsletter March 2024 11
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competitors Instagram accounts. A good idea not copied is a good idea wasted. INSTALLATION & DELIVERY CONTRACTORS, TECHNICIANS, SALES REPS WANTED Walk-in Coolers & Freezers Beer Caves New Construction Commercial & Industrial Refrigeration FINANCING AVAILABLE ( 8 3 3 ) 7 8 0 - 3 1 3 2 s a l e s @ c o m m e r c i a l r e f r i g e r a t i o n c o . c o m w w w . c o m m e r c i a l r e f r i g e r a t i o n c o . c o m STMA Newsletter March 2024 13
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PepsiCo Confidential 1 March 1st – 31st Promotion PPW’s 2024 Merchandising Compliance on Promotion Destination: High Traffic Perimeter Accounts $400> Innovation/New Item Clip Strips • Accounts with a WSA > $300 • Destination: FEM or UTC All In One Rack or Cardboard Weekender Display to support monthly promotion CMA Spinner Tree Stores +>$400 Innovation PPW TIMING: March 10th 1 Mandated per Store • Accounts with a WSA > $400 • Destination: All in One Rack or high traffic area UCLPPW Timing: March 24th 1 Mandated per Store • Accounts with a WSA > $400 • Destination: All in One Rack or high traffic area Invoice details Promo Timing: 3/01 – 3/31 SDV (cost): $1.98 PA: $0.07 Final Cost: $1.91 Margin: 23.7% Promo: 2/$5.00 or One for Regular Price $2.69 2/$5 Value Line STMA Newsletter March 2024 15
Foot traffic in the new year could be a stumbling block. There is more pessimism in the c-store retailer community toward foot traffic patterns this year. Only 32% of small operators and 33% of large operators expect their foot traffic to increase this year, a drop of 11 points and 3 points, respectively. Nearly half of small operators (46%) expect their foot traffic to stay the same, up 5 points year over year, while the other 22% are bracing for a decrease, up 6 points vs. a year ago. COMPETITIVE WATCH THOUGH SOME ARE MORE BULLISH ABOUT THEIR PROSPECTS. MANY OF THE CONVENIENCE CHANNEL’S SMALLER By: Danielle Romano || Retrieved from: https://csnews.com/small-operators-face-2024-tempered-optimism RETAILERS EXPECT THE STATUS QUO NATIONAL REPORT — The last few years have been a mixed bag of expectations for the convenience store industry’s small operators (those operating 20 stores or less). As 2023 approached, the channel’s smaller players were trepidatious, still plagued by the unprecedented economic pressures brought on by the COVID-19 pandemic and worried about the vitality of their businesses in the coming year. Now, with a new year ahead of them, the small operators who participated in the 2024 Convenience Store News Forecast Study don’t feel much different than those who participated in last year’s study. However, there are some areas of improvement heading into 2024. The number of small operators who report a positive outlook on the economy is up 8 points from last year’s forecast. Still, less than a quarter of small operators (22%) have a positive economic outlook. Similarly, while the percentage of small operators who view the U.S. economy in a negative light is down by 13 points year over year, this number still accounts for more than half of smaller retailers (54%). The other 24% say they are neutral. “Inflation is driving fewer impulse purchases, and the national outlook also has people watching spending closer,” one small operator observed. On a scale of one to five — where 1 represents “Terrible, wake me up when it’s over” and 5 represents “It’s going to be our best year ever!” — the largest percentage of small operators (43%) rate their expectations for 2024 at a 3. Reflecting a slight shift in optimism by some small operators, 14% of respondents put their expectations at a 5, a 7 point increase compared to the 2023 study. Another bright spot: No small operator surveyed for this year’s forecast selected a rating of 1. ARTICLE 2024 MARCH SMALL OPERATORS FACE 2024 WITH TEMPERED OPTIMISM 16 STMA Newsletter March 2024
When it comes to what will impact their sales and profitability in 2024, the industry’s small operators are apprehensive about a multitude of factors. Labor turnover and hiring jumped into the No. 1 slot this year, while other top areas of concern are increasing operational costs, inflation and economic issues (last year’s No. 1), and motor fuel prices. On the labor front, small operators lamented: Similar to their larger counterparts, small operators are less concerned about supply chain issues in 2024. However, unlike the industry’s larger retailers, small operators are more concerned about the impact of tobacco regulations on their stores. Another issue affecting the outlook of both small and large operators is increasing cross-channel competition, as cited by 60% of small operators and 73% of large operators. Both small and large operators view dollar stores as the biggest threat. Interestingly, small operators are more concerned about Amazon/Amazon Fresh than their larger counterparts (35% vs. 23%). However, large operators are more concerned than smaller retailers about the threat of quick-service restaurants and food delivery apps such as Uber Eats and DoorDash. “Slim pickings in the hiring pool.” “We are seeing a sharp decline in the number of applicants for all levels of jobs and the ones who are applying are asking for significantly higher pay and benefits.” “In order to provide the service level we aspire to, we require a higher staff count. It is difficult to find the necessary talent at the current hourly wages.” “With 100% turnover, we can’t train fast enough.” Editor’s note: MAKING IMPROVEMENTS Other top initiatives planned by small operators for the coming months are adding delivery via a thirdparty service (24%) and adding contactless shopping via kiosks (22%). “We want to succeed and will do whatever it takes,” one small operator remarked. Despite their apprehensions, small operators are prepared to make their stores more attractive to customers this year by meeting their expectations for enhanced convenience services. Slightly more than three-quarters of the small operators surveyed (76%) currently offer mobile payment in-store, with 8% planning to add it in 2024. At the pump, 68% of small operators now offer mobile payment, with 8% saying this feature will be added in the coming year. STMA Newsletter March 2024 17
SPANNER POSTER COOLER DO0R DECALS SHELF TALKER IN THE STMA BOX MARCH 2024 18 STMA Newsletter March 2024
Blended Margin% is based on 70% Promo and 30% Regular Sale Vendor PROMO PRODUCTS Promo Type Case Qty Regular Price Promo invoice cost Off Invoice Incen�ve Net cost a�er incen�ves Net unit cost Promo Pricing Net promo Margin % Suggested Retail Price Blended Margin% Spanner & Posters Promo�ons: CSD 20 oz - 2 / $3.75 24 35.46 $ 30.00 $ $ - 30.00 $ $ 1.25 2 / $3.75 33.51% $2.79 40.02% Gatorade 28 oz - 2 /$5.29 15 28.51 $ 26.10 $ $ - 26.10 $ $ 1.74 2 / $5.29 34.34% $3.59 39.50% Pepsi 1 Ltr Aquafina & Brisk Tea (Mix & Match) - 2 / $3.00 Poster 1 15 AllYear Promo$15.00 14.00 $ $ - 14.00 $ $ 0.93 2 / $3.00 37.78% $2.49 45.20% Redbull 8 - 8.4 OZ - 2 / $5.00 24 40.75 $ 39.75 $ $ - 39.75 $ $ 1.66 2 / $5.00 33.75% $2.99 37.01% Redbull 12 OZ - 3 / $8.50 *** 24 53.45 $ 49.95 $ $ - 49.95 $ $ 2.08 3 /$8.50 26.54% $3.99 37.19% Coke Powerade 28 oz - 2 /$4.22 Poster 3 15 22.35 $ 18.90 $ $ - 18.90 $ $ 1.26 2 / $4.22 40.28% $2.79 44.65% In-Stores & Digital Media Promo�ons: Fiji Fiji 1 Ltr - 2 / $5.50 Digital & Instore 12 23.56 $ 20.56 $ $ - 20.56 $ $ 1.71 2 / $5.50 37.70% $3.69 42.46% Celsius Celsius 12 oz - 2 / $5.00 Digital & Instore 12 19.00 $ 18.00 $ $ - 18.00 $ $ 1.50 2 / $5.00 40.00% $3.29 44.32% KDP CSD 20 oz - 2 / $4.00 Digital & Instore 24 31.60 $ 28.80 $ $ - 28.80 $ $ 1.20 2 / $4.00 40.00% $2.69 44.62% KDP Core Water 30.4 oz - 2 / $5.00 Digital & Instore 12 19.50 $ 17.20 $ $ - 17.20 $ $ 1.43 2 /$5.00 42.67% $3.29 46.80% KDP Snapple 16oz/15.9 oz - 2 / $3.00 Instore 12 15.80 $ 11.00 $ $ - 11.00 $ $ 0.92 2 /$3.00 38.89% $2.49 46.18% KDP Vita Coco 16.9 oz Pet - 2 / $5.60 Instore 12 25.00 $ 20.70 $ $ - 20.70 $ $ 1.73 2 /$5.60 38.39% $3.89 43.57% C4 Energy C4 Energy 16 oz - 2 / $5.00 Digital & Instore 12 20.00 $ 18.00 $ $ - 18.00 $ $ 1.50 2 /$5.00 40.00% $3.29 44.32% Electrolit Electrolit 21 oz - - 2 / $5.50 Digital & Instore 12 21.60 $ 19.80 $ $ - 19.80 $ $ 1.65 2 /$5.50 40.00% $3.59 44.21% Coke Dasani Water 20 oz - 2 / $3.00 Digital & Instore 24 27.84 $ 21.36 $ $ - 21.36 $ $ 0.89 2 /$3.00 40.67% $2.09 45.69% Coke Smart Water 1 Ltr - 2 / $5.80 Digital & Instore 12 24.00 $ 20.76 $ $ - 20.76 $ $ 1.73 2 /$5.80 40.34% $3.69 44.18% Coke Dasani 24pk - 16.9 oz 1 / $5.99 In Store 1 6.90 $ 4.40 $ $ - 4.40 $ $ 4.40 1 / $5.99 26.54% $5.99 26.54% UpTime UpTime Energy 12 oz - 2 / $5.00 **** Digital & Instore 12 19.00 $ 14.61 $ $ - 14.61 $ $ 1.22 2 /$5.00 51.30% $2.99 53.69% Congo Alani NU Energy 12 oz - 2 / $5.00 In Store 24 40.00 $ 36.00 $ $ - 36.00 $ $ 1.50 2 /$5.00 40.00% $3.29 44.32% Congo Prime Hydra�on 16 oz - 2 / $5.00 In Store 12 18.00 $ 17.00 $ $ - 17.00 $ $ 1.42 2 /$5.00 43.33% $3.09 46.58% Fritolay $2.69 Value Line Flavors - 2 / $5.00 *** Digital & Instore 1 1.98 $ 1.91 $ $ - 1.91 $ $ 1.91 2 /$5.00 23.60% $2.69 26.30% *** Redbull 12 oz and Fritolay Value blended margin 50% | 50% *** UpTime Promo Price of $14.61 is ac�viated with Buy 3 Get 1 Free Deal, or else regular price MAR 2024 PROMO (Please Note: It is Mandatory for members to run all the Promos) Spanner Pepsi Red bull Poster SOUTH TEXAS MERCHANTS ASSOCIATION 2 MARCH 2024 PROMO (Please Note: Its Mandatory For Members to run all the promos) STMA Newsletter March 2024 19
ADDRESS 12054 Starcrest DR. San antonio. TX-78247 HOURS OF OPERATION: Mon - Fri 9am to 5pm STMA WHOLESALE: Ph: (210) 672 6006 STMA PRINTING Ph: (210) 672-6006 EXT:109 STMA COOP OFFICE Ph: (210) 826 3786 Fax: (210) 672 2898 www.mystma.com QUEST FUEL Branding (210)-383-2829 Dispatch (210)-632-1894 Invoicing (210)-672-6039 GET IN TOUCH SOUTH TEXAS MERCHANTS ASSOCIATION