Profit Opportunities in New C-Store Categories

 Profit Opportunities in New C-Store Categories

Cigarettes and tobacco have been and still represent a very large share of our business, but there are profit opportunities that can be gained by focusing our attention on these new convenience store categories.   We, as a company and an industry, have to do a better job penetrating our accounts selling them everything we possibly can.”

Christopher Dempsey, vice president of business development at Myers-Cox Co., Peosta, IA, said his company continues to expand its foodservice capabilities and is now offering fresh chicken, dairy and fresh produce.  “We can now be that foodservice distributor, as well as a convenience products distributor, for our customers,” he said.

“We are in a big push to pick up new business,” he added, noting that a major initiative is to convince convenience customers who purchase their foodservice items from a separate distributor that Myers-Cox can meet that need and improve efficiency for them.   “Foodservice at retail is booming and we have made a conscious effort to be able to provide what they need,” Dempsey said.

Perhaps the most bullish of all is Pine State’s Canning.

“There are terrific opportunities to grow our business and build on our core competencies with the introduction of so many new products in the categories that we sell,” he said, adding that manufacturers’ need for distributors has never been greater as they seek to penetrate the convenience industry.

The investment that manufacturers are making in new and innovative products, including varieties of e-cigarettes, means that they need to get those products to retail and retailers need those products delivered in an efficient and effective way.

“Look at the amount of promotional activity and special packaging and support  the major tobacco manufacturers have developed. They need support from the warehouse distributor to execute those products in time to match their marketing programs. Distributors are needed more than ever.”

The same holds true in foodservice, said Canning, as new innovations and new products mean that distributors with the capability of delivering these new food items, many of them fresh and temperature sensitive, are in high demand.

“We also intend to tap into the explosion of growth of healthy alternatives in the snack category, which continues to grow and get better and better,” he said.

Source: Convenience Distribution Jan/Feb 14