When In Doubt, Bet On Chocolate

A few days ago, Mintel published figures that nearly any stressed out, middle-aged woman could have intuitively come up with -- even in a worldwide recession, countries near and far are reporting increasing chocolate sales.

In China and the Ukraine -- two countries hardly recognized for an abundance of chocoholic -- chocolate confectionery sales rose 18 percent and 12 percent, respectively, this year. I'll drink a hot Ovaltine and gobble a handful of M&Ms to that.

Other countries have seen chocolate bars, bags and boxes flying off the shelves, though at lower rates. The British drove their chocolate market up nearly 6 percent, while Americans purchased 2.6 percent more chocolate this year than in 2008. (Mintel didn't break out regional increases, but I suspect the 10804 zip code probably saw a huge bump.)

Argentinean sales rose nearly 2 percent this year, while Belgium, a country that lays claim to some of the world’s best chocolate, saw sales increase by more than 3 percent.

"It's clear that despite economic trouble this year, the world's chocolate lovers didn't deviate from their favorite treat. Chocolate is a small, affordable indulgence for shoppers who are cutting back on spending elsewhere. Even in countries not known for chocolate consumption, sales are on the rise," noted Marcia Mogelonsky, Mintel's global food and drink analyst.

The Swiss spent the most on chocolate, forking over the equivalent of $206 per person per year. Brits and Belgians followed, spending $106 and $90, respectively. Americans satisified their chocolate cravings by spending $55 on average. (Scores of Americans must be spending zero on chocolate, since my friends and I probably spend in the triple digits).

Mintel’s Global New Products Database (GNPD) reports that manufacturers launched nearly the same number of chocolate products this year as in 2008. I've seen other research indicating 2010 will be a big year for new candy item introductions.

For more information on how U.S. c-store operators can nab more chocolate sales, especially as new items are first released, the February 2010 issue of Convenience Store News. Until then, pull up a chair and have a few of these dark chocolate holiday Hershey Kisses that found their way to my desk. -- Barb Grondin Francella

Value In Vogue

As most of us say a very hearty "See ya!" to 2009 and look to better times in the new year, c-stores more than ever need focus on offering a value.

It's taken more than a decade for the c-store industry to shed its reputation as a place to buy cigarettes, beer and gasoline and an overpriced purveyor of nearly everything else. Now, many c-store chains have weathered the recession by offering true value, in the shape of quality, affordable take-out options, everyday fair pricing and private-label alternatives. Recent research by The Nielsen Co. revealed consumers’ fundamental spending adjustments brought on by the long recession are likely to last well into the next year. Either by choice or necessity, consumers' new-found thriftiness will continue. But focusing on very low prices at the expense of all other variables threatens margins, Nielsen noted. Value messaging must also include some point of differentiation. My mind immediately goes to Trader Joe's whenever I think about this. Their relatively limited selection includes unique products at lower-than-supermarket prices.

 Case in point: The chain's one-of-a-kind, delicious holiday shortbread star-shaped cookies dipped in dark chocolate and tiny gingerbread men cookies, which retail at two-thirds the price of a package of Oreos. In the fresh foods area, the packaged salads are priced $2 less than the nearest Cosi casual restaurant; my teenager packs them for her school lunch.

 But they still bring in a margin. We also stock up on the  terrific frozen four-cheese mac and cheese my five-year-old requests daily that retails for nearly $5. (Or fives times the boxed stuff when it's on sale.)

I drive five miles out of my  way to shop at this store. Can't say that about many -- actually any -- other food retailers. Plus, they give out balloons and let you enter a weekly contest for a gift card whenever you bring in your own bags. Can't beat that.  -- Barbara Grondin Francella

The Best News of '09

CSNews Online just revealed its 2009 Year in Review, a compilation of the most popular news stories published on its Web site, based on the number of online views, for each month of 2009.

The staff at CSNews would like to know which news stories were your favorites from the past year -- be it informative articles that helped your business or lighthearted stories that made you smile -- and why.

My personal favorite for 2009 was an article about an online advertising campaign launched by Alimentation Couche-Tard Inc., which received criticism by professional clowns.

One of the campaigns featured: "a multi-colored clown … being pushed through a saw, with a similar wave of festive confetti coming out the other end," CSNews.com reported in May 2009.

While it may sound shocking, the videos are done in a zany, amusing way that makes you wonder what's in the drinking water of our northern neighbors. Check them out at sloche.com.

What's your favorite news from 2009?

Florida Health Officials Going to the Dogs

The efforts of Florida Health and Agricultural Department officials to ban Cody, the convenience store dog as he’s become known, from a Clearwater, Fla., BP c-store/gas station would be laughable if it wasn’t another sign of government bureaucrats run amok.
If you haven’t heard about him already, Cody is the chocolate Labrador pet of Clearwater BP owner Karim Mansour. The dog had become a minor celebrity as he greeted local customers at the store’s drive-thru window and inside the store. Then, Florida Health Department inspectors – who apparently have no serious health issues to deal with – decided to add Cody to the state’s swelling unemployment roles. They said the presence of a dog in an area where food is sold is a violation of Florida health laws – even though the only food sold are packaged items like canned energy drinks, chips, crackers, meat snacks, and candy. No food is prepared at the site.
After a warning, Agriculture Department officials then got involved and told Mansour, who adopted the six-year-old pooch three years ago, to stop bringing Cody to work, or all of his food items — mostly things like canned energy drinks and Slim Jims — would be declared unfit for consumption.
Well, customers aren’t taking this laying down. Last weekend a Facebook group supporting Cody was created and quickly collected about 3,000 members. “Cody is my HERO!!! I would drive an extra hour to be greeted by this smiling face. Let Cody stay ,” said one poster.
It doesn’t appear yet that any of this support will sway Florida officials, though. Pity. And, we still want to put health care in the hands of government bozos?
To view a video of Cody greeting customers before he was banned, go to http://www.tampabay.com/news/humaninterest/article1056121.ece.

-- Don Longo

Stewart's Shops Strengthened By Community Ties

Those of us who subscribe to the "what goes around, comes around" theory of life should take a minute and think about Stewart's Shops.

 

Search "Stewart's Shops" in Google News and the breadth of the 327-store chain's charitable efforts becomes immediately clear. (Well, first you have to wade through the scores of news items about Twilight star Kristen Stewart.)

 

While the recent $3.9-million donation by Stewart's Shops'  co-owners Susan and Bill Dake benefiting the Community Foundation for the Capital Region scored a few local headlines, much of what the chain does goes unheralded.

 

Currently, the Saratoga Springs, N.Y.-based retailer's annual Holiday Match,  a qualified 5013c program, is in full swing. In short:  Stewart's Shops matches customer contributions to thousands of local children's organizations. In place since 1986, Holiday Match has raised $12 million. (The chain does not deduct administrative costs.)

 

Stewart's Shop's 2008 Holiday Match raised $1.1 million. This year, the chain expects more than 1,000 applications for grants.

 

Also this holiday season, Stewart's Shop is selling admission buttons to Saratoga's First Night event, the family-oriented, alcohol-free celebration on New Year's Eve, the only c-store operator to do so. Though not a charitable endeavor, it is one of many local activities in which the chain involves itself.

 

This retailer's community service and activities are widespread, year-round -- and diverse. The chain supports food pantries by donating certificates for milk and helps fund wildlife biologist Beth Bidwell, who gives up to 200 educational presentations each year featuring rehabilitated animals.  

 

This type of community face time, along with a conservative growth strategy and honest communication with store employees, is no doubt a crucial factor in Stewart's steady performance through the recession.  Last year, sales grew 5 percent last year; profits were up 7 percent.

 

I'm betting Stewart's karma will be on display when this year's sales results are posted too. -- Barbara Grondin Francella