Texas Food & Fuel Association - Weekly Update -Issue #24
JOIN A TEXAS FOOD & FUEL ASSOCIATION COMMITTEE
All members of the Texas Food and Fuel Association are encouraged to participate in the association’s committees. These committees play an important role in shaping the association’s membership opportunities, legislative agenda and regulatory initiatives. The association committee’s include: Membership Committee, Legislative Committee, Retail Operations Committee and Wholesale Operations Committee.
Membership Committee – Makes recommendations regarding membership programs, classifications and dues, while assisting staff with membership recruitment and retention.
Legislative Committee – Considers legislative activities, regulatory affairs and related initiatives.
Retail Operations Committee – Provides recommendations regarding the operation of retail facilities.
Wholesale Operations Committee – Makes recommendations regarding the operation of businesses engaged in the bulk sale of fuel or lubricants.
Please complete the Call for Committee Volunteers Form today. Forms must be returned to Doug DuBois Jr. by Friday, July 13.
FEDERATED ANNOUNCES ANNEXSTAD RETIREMENT
Federated Insurance announced this week that Chairman Al Annexstad will retire as a full time employee effective November 30, 2012. He will continue to serve as a member of Federated’s Board of Directors.
Annexstad joined Federated in 1965 as a Marketing Representative in his hometown of St. Peter, Minnesota. After this initial period of service Annexstad embarked upon a career in marketing management where he continued to build a record of unprecedented achievement. His accomplishments led to multiple promotions within the marketing function of the organization culminating in his promotion to Director of Marketing in 1986.
In 1998, he was appointed Executive Vice President, Director of Insurance Operations, which encompassed responsibilities for Federated’s claims, underwriting, and marketing disciplines. On July 20, 1999, Annexstad was elected President and was appointed Chief Executive Officer. On May 25, 2000, the Board of Directors of the Federated Insurance Companies elected Annexstad to the position of Chairman.
During the past generation Annexstad is credited with the development and implementation of several strategic initiatives which propelled Federated from a successful regional insurer to a position of national prominence within the insurance industry. He created Federated’s Business Plan, which included new growth expectations and measurements as well as establishing standards for client service. He also directed development of a highly effective national distribution system to fulfill Federated’s commitments to its clients and recommending trade associations and franchise buying groups. His leadership was primarily responsible for the Companies’ ten-fold increase in securing exclusive industry recommendations for Federated’s products and services, today numbering in excess of 400.
Federated President Jeff Fetters, also well-known and highly regarded by PMAA members, will assume the duties as Chairman.
COUPONS RETAIN POPULARITY WITH SHOPPERS; WE HAVE A PROGRAM FOR YOU
Coupons are no longer something you only cut from the newspaper; you can now also save by finding printable online deals and easy-to-flash smartphone downloads, which has led to a huge increase in coupon usage. In fact, according to a report by Coupons.org, coupon redemption in the United States increased 63% in 2011 and Americans saved $3.7 billion as a result. That dollar figure represents 3.3 billion coupons.
However, the bulk of redeemed coupons (89%) are still clipped from newspapers, and Internet coupons represent only 1.5% of those used, but that is changing quickly. In 2011, 20% of smartphone users took advantage of mobile coupons, a 117% increase over 2010. Coupons.org also predicts online coupon users will grow from 2.7 million in 2010 to 35 million in 2014 - an increase of almost 1,300%.
Retailers who are interested in taking advantage of coupon redemption in their stores should review the details of the Texas Food & Fuel Association Coupon Redemption Program. With this program, retailers receive 100% face value of coupons; also, you have the benefit of:
The Coupon Redemption Program brochure, along with questionnaire and agreement provides you all the information you need to get started. For additional questions, contact Rick Bolner or call him at 512-617-4304.
TAKE ADVANTAGE OF ONLINE TRAINING CONVENIENCE FOR UST OPERATORS
The Texas Food & Fuel Association UST Operator ONLINE training course has proven to be a time saving and convenient method of training for Class A/B employees. Click here for access to the on-line course.
The course fulfills both state and federal requirements for Class A and B operators. The course is an on-line and interactive allowing students to start and stop the course with interruptions without having to repeat the course lessons they have already completed. The course was developed by TFFA associate members 360Training and Tait Environmental Services. TFFA members are eligible for a 20% discount off the list price and can also receive bulk discount pricing by contacting Kevin Urbanowicz at firstname.lastname@example.org or calling Kevin at 512-539-2681.
CLASSROOM UST OPERATOR TRAINING CONTINUES TO BE UPDATED
Classroom training for Class A and B UST Operators is currently being updated on a regular basis. The one-day classroom training sessions will be conducted by TAIT Environmental Services at several locations around the state.
The cost of classroom training is $300 per student. Association members will receive a 20% discount ($240 per student).
The Tait Environmental Texas UST Operator A/B Classroom Updates will provide you with all currently scheduled classroom sessions and the number of seats still available. Please register at your earliest convenience to ensure the course is able to be offered.
** In order to confirm a class, a minimum of 20 students must register at least 72 hours prior to the course date. If 20 students do not register, the class will be rescheduled for the students who have registered. The maximum number of students in a class is 30. Registration will be on a first-come, first-served basis.
If you would like to schedule a custom class for your company employees, the 20 student minimum also applies. There is a possible discount for classroom training if your company provides the meeting space and provides lunch for company employees. Contact Melanie Nelson for more information
During the training session, each student will be required to pass the 5-question exams after each of eight lessons. If a student does not pass a lesson exam, they will be given an opportunity to take it again.
SUNOCO LOGISTICS TO BUILD WEST TEXAS TO NEDERLAND PIPELINE
Sunoco Logistics Partners in a June 20 news release said it would construct a pipeline to carry crude oil from West Texas to Gulf Coast markets called the Permian Express pipeline, which will have an initial capacity of 150,000 bpd with the ability to expand to 350,000 bpd.
Phase I of the project will offer 150,000 bpd of crude oil service from Wichita Falls, Texas, to the Nederland/Beaumont, Texas markets. It will also reverse its Wortham-to-Wichita Falls pipeline to create continuous pipeline service from Wichita Falls to Nederland including utilizing excess capacity on the southern leg of the West Texas Gulf pipeline system.
Sunoco Logistics expects Phase 1 will be operational within six to nine months with an initial capacity of 90,000 bpd. Full capacity of 150,000 bpd is expected within 12 to 18 months.
An Open Season for Phase I is anticipated to be launched by this week with commitment terms of three, five or seven years.
A second phase could deliver additional West Texas crude oil to key Gulf Coast destinations such as the Nederland/Beaumont market and further east to the refining centers in Louisiana up to St. James using a combination of new and existing pipelines.
For Permian Express Phase II, Sunoco Logistics could twin a 300-mile pipeline, parallel to the existing West Texas Gulf pipeline, from Colorado City to Wortham where it could connect to the existing excess capacity of the southern leg of the West Texas Gulf pipeline system. Permian Express Phase II could have initial takeaway capacity of 200,000 bpd and be operational in the second half of 2014.
Permian Express complements Sunoco Logistics’ previously announced plans to expand crude oil outflow on the West Texas Gulf Pipeline by at least 100,000 bpd. In total, Sunoco Logistics’ currently announced projects could increase crude oil takeaway capacity from West Texas by at least 450,000 bpd.
Sunoco Logistics Partners, headquartered in Philadelphia, Pennsylvania, owns and operates a logistics business consisting of pipelines, terminals, and crude oil acquisition and marketing assets. (Source: The OilSpot News by Telvent DTN).
7-11 PLANS TO BREAK STORE-GROWTH RECORDS
After shattering its international and domestic store growth records last year, 7-11 is in line to have an even bigger year in 2012. The world’s largest retailer by units added more than 4,600 stores worldwide in 2011 and plans to continue its accelerated growth.
Some 600 additional stores were built, acquired or transitioned from another business to the 7-11® brand in the United States and Canada alone during 2011. This year, 7-11’s goal is to exceed that number by adding at least 630 new stores to its U.S. and Canada roster by year’s end.
Since 2003, 7-11 has nearly doubled its global store count, from 25,000 to more than 46,000. Today, a new 7-11 store opens somewhere in the world approximately every two hours.
7-11 President and CEO Joe DePinto said, "7-11’s U.S. growth strategy includes building greater market presence and adding quality locations in metropolitan areas where the company already has stores as a means to increase efficiencies and leverage the company’s scale and daily-delivery infrastructure.
Approximately 56 percent of 7-11’s growth in the U.S. last year was the result of several acquisitions that increased store density in New York, Florida, Illinois, Colorado and the Northwest. The most significant 2011 purchase was Wilson Farms, a Buffalo-based convenience store chain with 188 outlets in New York State. The strategic move reinvigorates the company’s presence in Western New York. 7-11 is re-entering two markets—Jacksonville, Fla., and Charlotte, N.C.—where it previously had operated stores until the 1980s. The company also has announced plans to double its 20-store presence in Manhattan in the next year and grow to about 135 units by 2017. (Source: The Shelby Report, Southwest; www.theshelbyreport.com)
The purchasing pace shows no signs of slowing in 2012. Already this year, 7-Eleven has acquired 55 locations from Sam’s Mart in the Carolinas and 51 from ExxonMobil in North Texas. More acquisitions are expected to be announced in coming months.
"We have successfully increased 7-Eleven’s store footprint in several of our most dynamic markets," Porter said. "Year to date, 7-Eleven already has added more than 200 new locations in North America. We believe we are adding more new locations this year around the world than any other company and are the second fastest growing food retailer in the U.S., based on new store openings."
As its store count rises, so too do franchising opportunities. In the U.S., 80 percent of 7-Eleven’s stores are franchised. More than 300 are franchised through the company’s business conversion program whereby independent operators convert their stores to the 7-Eleven brand with the store owner becoming a 7-Eleven franchisee. And, 25 stores have been franchised through the company’s reduced franchise-fee offering for qualified military veterans, which began in 2009.
Approximately 10 to 12 full- and part-time store associates are employed by each store in the U.S. In total, some 2,000 new jobs and business opportunities are created each year in the U.S. as a result. (Courtesy of The Shelby Report of the Southwest, July 2012; www.shelbyreport.com)
KROGER TO EXPAND FLOWER MOUND SITE
The Kroger Store near the intersection of FM 2499 and FM 1171 in Flower Mound has received the go-ahead by a newly elected local town council. The former council rejected adding a fueling station.
A new fueling station with five gasoline pumps, two electric recharging stations and a 112-s.f. retail building is an important part of the approximately $14.3 million capital improvement project. Allen Publishing quotes Gary Huddleston, director of consumer affairs from Kroger regional headquarters in Arlington, saying that the expansion would not move forward without the fuel station. Providing substantial discounts on gasoline purchases for store patrons is proving a winning business model, Huddleston is quoted as saying.
Huddleston projects that the expansion will create 75-80 new jobs in the Flower Mound Kroger Store. Along with the fueling station, the 20,000-s.f. addition will also include a drive-through pharmacy. The renovation will bring wider aisles to the store and include the installation of stained and polished concrete floors.
Once complete the store will offer an expanded fresh sushi department manned by a chef, a larger selections of artisan breads and an upgraded wine department that will feature more than 6,000 offerings. Meat, seafood and dairy also will get expanded items and services. (Courtesy of The Shelby Report of the Southwest, July 2012; www.theshelbyreport.com)
UNITED SUPERMARKETS OPENS FIRST 24-HOUR STORE
United Supermarkets reached another milestone on June 3 when its Market Street location at 50th and Indiana in Lubbock became a 24-hour store.
It marked the first time in the company’s 96-year history that it has operated a round-the-clock location. The move was made in an effort to help meet a community need and offer options to guests that are not currently available, according to Sidney Hopper, COO for the Lubbock, Texas-based chain.
"We have a significant number of people in the Lubbock community who work late or overnight—law enforcement, healthcare and some large manufacturing companies with night shifts," Hopper said. "We believe this is an underserved population in terms of shopping options, particularly when it comes to pharmacy."
Hopper noted there are only two other pharmacies offering overnight prescription services in a city of more than 225,000 people.
"Given the size and importance of our medical community, we felt this was a great opportunity for us to provide a much-needed service, especially for folks leaving an emergency room and needing to have a prescription filled immediately, or for other family needs," Hopper said.
The pharmacy at the 24/7 location is fully staffed overnight, as are many other store departments.
Foodservice areas—including deli and bakery—maintain current operational hours, although several self-service options are available all night long.
The store’s United Express fuel kiosk also remains operational, allowing for payment at the pump at all times, but is not manned overnight.
The grocery chain has added security personnel at the store as well as offering carryout service and accompanying guests to their cars at all times.
Hopper added that based on the success of this venture, the chain "will explore opportunities in our other markets."
A self-distributing company with its headquarters in Lubbock and distribution centers in Lubbock and Roanoke, United currently operates 51 stores under four distinct formats: United Supermarkets, Market Street, Amigos and United Express. The company’s 52nd store—a fourth-generation Market Street location—is currently under construction in Lubbock. (Courtesy of The Shelby Report of the Southwest, July 2012; www.theshelbyreport.com)
TEXAS FOOD & FUEL ASSOCITION STAFF MEETS WITH CORPUS CHRISTI OFFICIALS
Doug DuBois, Jr. attended a meeting on Thursday, June 20, 2012, hosted by Corpus Christi Mayor Joe Adame and facilitated by Corpus Christi Solid Waste Services. The meeting was attended by representatives from the retail community, including Texas Food & Fuel Association member Stripes Convenience Stores, as well as H.E.B. and Wal-Mart.
Additionally, members of several Corpus Christi based groups, including the Coastal Bend Surf Rider Foundation, Corpus Christi Beach Association and Corpus Christi Hispanic Chamber of Commerce. The primary purpose of the meeting was to discuss the issue of single-use plastic bags used by retailers.
A representative from Republic Services, the Nueces County solid waste contractor and a representative from the City of Corpus Christi solid waste services addressed the litter issue caused by the single use plastic bags and the need for educating the citizens of the Coastal Bend on the three - R's - Reduce, Re-use and Recycle.
Ronnie Volkenning of the Texas Retailers Association shared information regarding the recycling of plastic bags and the closed loop industry existing in Texas, from bag manufacturers to recyclers and those manufacturers who create products from the recycled plastic bags.
City of Corpus Christi Assistant City Manager Oscar Martinez closed the meeting with a commitment to enhance anti-litter enforcement and penalties, while rolling out a community wide education program, which would engage the youth of Corpus Christi through a "Don't Mess with Texas" style campaign.
The Texas Food & Fuel Association will continue to be involved in future meetings and will keep our membership apprised of any new developments. Please contact Doug DuBois, Jr. if your community is discussing an ordinance regarding a transaction fee on plastic bags or a possible ban.
2012 GALLONAGE REPORT ON 2011 GALLONS IS NOW AVAILABLE
The annual report on fuel sales by bonded fuel distributors in Texas is now available and you can have your copy today by using the 2012 Gallonage Report Order Form.
IMPORTANT ASSOCIATION MEETING DATES
Mark your calendar with these upcoming events:
Fall Conference & Board Meeting
Westin La Cantera Resort, San Antonio
October 24-25, 2012
Legislative Day & Winter Board Meeting
Hyatt Regency Austin, Austin
February 19-20, 2013
PAC Golf & Sporting Clay Tournaments
Golf Club at Fossil Creek & Alpine Shooting Range, Fort Worth
May 8, 2013
Southwest Fuel & Convenience Expo
Omni Fort Worth & Convention Center, Fort Worth
May 9-10, 2013