January 2020

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2020 PACKAGED2020 PACKAGEDBEVERAGE RESETSBEVERAGE RESETS

Top Predictions for the Top Predictions for the CPG Industry in 2020CPG Industry in 2020

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The Ripple EffectThe Ripple Effectof Gratitudeof GratitudePage 14Page 14

3Vol. 7 Issue 1

President’s Notes

GHRA BOARDOF DIRECTORS

Arifali MominSenior Vice President

Shahid MaknojiaVice President

Barkatali MominHonorary Secretary

Jamal Jivani Treasurer

2020 is upon us. The significance of this new year cannot be over-emphasized. This year the GreaterHouston Retailer Cooperative Association will celebrate its twenty-year anniversary and it will be as equallyimportant to any in our company’s history! We begin this year poised for great growth, positioned to add newbusiness ventures and to embrace an historic expansion!

Our company has shown its resolve to creating member value through collaboration and education whilebuilding upon the principles of unity and commitment to each other! In this way, we have overcome everybarrier in the pursuit of our goals and have transformed our business into a productive and fast learningcompany that gives us an advantage in the industry. This is how we build sustainable growth and continue tomove forward into the future.

As we start the new year, relish the challenges that lie ahead. We will rely on the resilience, dedication andcommitment of all of our members and supply partners in 2020 to ensure that we continue to learn togetherand grow through our learnings. To that end, I want to challenge all of us, members, staff and our supplypartners to accelerate the pace of change; to seize new opportunities and new learnings and drive a culture ofthought turned into action, and action turned into form! It is the transfer of knowledge and the speed of thetransfer that will propel our business’s forward into this next 20 years.

On behalf of the Greater Houston Retailers Association Board, Management and Staff, I would like to wish allour members a wonderful and a rewarding year.

Presidents NotesFIRDOUS ALI

GHRA BOARD OF DIRECTORS

Dear Members,

Samer AliWarehouse Chairman

Hussain VisnaniWarehouse Vice Chairman

Imran P. AliWarehouse Treasurer

Noordin MarediaWarehouse Honorary Secretary

Moez K. MarediaDirector

Sohail AliDirector

Riyazali MominDirector

4 Vol. 7 Issue 1

In This IssuePresident’s Notes ....................................... 3

On My Mind .................................................. 5

Feature Story................................................ 6

Beverage Reset Form ................................ 7

Food Service .............................................. 11

Community ................................................ 12

Human Resources ................................... 14

Government Relations .......................... 15

Industry News .......................................... 17

Technology ................................................. 22

New Member Introductions ............... 24

Promotions In Action ............................ 25

Warehouse Featured Specials ............ 39

5Vol. 7 Issue 1

Happy New Year and happy 20th anniversary, GHRA. This year is a year of celebration. It is a year to celebrate the one thing that is responsible for our existence and our success. That one thing is unity. When we work together, we are stronger and we can solve complex problems. In the history of GHRA, you have done all of this and more! We stand together at the door of the future ready to make a renewed commitment. A re-commitment to each other and to the next 20 years of our growth!

It all begins today. The first thing we must do is quickly organize our business into a digital influence. The ability for chains to turn knowledge into quick action give them an advantage on older business models. We will have to transform ourselves into a fast moving and fast communicating company who keeps its members informed through digital means and can digitally drive communication to its customers. It’s not typical for 2000+ independent retailers to move in unison. We aren’t typical and we ARE unified! That’s our advantage.

We will need to leverage data collectively and use that data to recognize trends quickly and respond to them just as quickly. We will use data to diversify our business and capitalize on the ever-evolving opportunities that are ready for us to act! We will use this data to leverage investment into our company and to produce new initiatives that will help transform us into a cutting-edge marketing and retail machine!!

Reflect on your success over the last 20 years and enjoy the reflection. Then, set your sights on the next 20-year journey and our collective future together. We know you work very hard. We want you to also know that the GHRA team is working extremely hard, too. We work to bring extreme value to our members, their families, our supply partners and our staff. The GHRA team is dedicated to being in the lead on any new developments in the convenience store industry. Your support of all GHRA programs and initiatives has been and will continue to be the key to our success. All of us working in harmony will certainly keep us on the path to success, this year and in the 20+ years to come.

It is a privilege to lead such a great organization and a dedicated membership. I am looking forward to seeing and hearing from everyone during the Town Hall Meetings later this month. Your ideas and insights are important to us as we develop our plans for the future.

ON MY MINDB I L L P I T O C C O , G H R A C E O

Bill Pittocco

O U R M E M B E R S A R E A LW AY S O U R M I S S I O N !

6 Vol. 7 Issue 1

Feature

2020 Packaged Beverage ResetsBy Debbie Briese, GHRA Procurement and Marketing Manager

Packaged Beverage planograms are a culmination of months of behind-the-scenes work with our supplier partners designed to provide GHRA Members a plan to market product to consumers in a manner that maximizes sales and profit. GHRA Packaged Beverage programs take into account the most important trends in the market and stringent guidelines are utilized to sift through the products that lack the resources to make them sustainable.

After ringing in the New Year, GHRA and our supplier partners will immediately begin the 2020 Packaged Beverage reset process. This year, the resets will be completed in two phases – the Carbonated Soft Drink reset blitz will commence on January 2nd. A separate group of reset teams will focus on Non-Carbonated Beverages beginning in mid-January.

The next stage of the reset process falls in the hands of our Members. Allocating space to categories is a science, and it is based on your understanding of how products sell at your individual location(s). You should take into account how products are selling in your general market area too, just to be sure you account for market trends that haven’t quite found their way to your cooler.

GHRA provides you with the tools to do this work easily. The 2020 Cooler Reset Form included in this magazine (and available on the Member portal) will assist in this process.

1. Count the total number of non-carbonated product shelves in your cold vault.

• GHRA encourages no more than 5% of the selves be designated as Member option space

o Example: if you have 50 shelves total, you will have 47 shelves that

will follow the GHRA planogram and 3 shelves for member option space

2. Complete the 2020 Cooler Reset Form with the percentage of space you want allocated to each category.

• Note: a suggested space allocation by category is provided.

3. If following the suggested space allocation by category, locate the number of shelves to be planogrammed in the column on the left – follow that line across the page for the number of shelves to be planogramed in each category.

4. If using a space allocation different from the suggestion, multiply the number of shelves to be planogramed by the space allocation percentage to determine the number of shelves in each category.

• Example: allocate 24.1% space to Energy (per recommendation) with 47 shelves to be planogramed; calculation is 47 x 24.1% = 11 shelves

• The Space Allocation worksheet can be downloaded from the Member Portal and calculation will be done automatically upon entering the space allocation amount by category.

The approved GHRA Packaged Beverage planograms are posted on the Member Portal. Take some time to review the updated sets. There are some significant changes:

• GHRA carbonated beverage sets have not been significantly changed in many years. We will no longer support a 4-door carbonated beverage set. Stores with four doors of carbonated beverages should re-allocate at least one door to non-carbonated beverages, merchandising a MAXIMUM of three doors for carbonated beverage.

• In 2020, it is more important

than ever before to ensure that product NOT in the approved GHRA Packaged Beverage planogram or NOT INCLUDED on the approved Member Option product list is not merchandised in your cooler.

• Products featured in your cooler should be limited to items purchased from GHRA supplier partners who support our marketing strategies.

• Any products that are not included in the 2020 GHRA approved planogram should be sold through no later than February 15th.

• Please check the GHRA portal for a list of authorized Member Option products

This is the biggest reset project in the South Texas market! Reset scheduling is designed to be fair to everyone involved. Your Carbonated beverage reset will begin on January 2nd. As we Non-Carbonated beverage resets begin, your Member Services representative will contact you one week prior to your scheduled reset to let you know when the team is coming. Once the team arrives, please allow them to reset your store. Once the reset is complete, please fill out the Store Reset Completion form and fax it to us. It is important that the resets are completed according to the schedule to ensure that all GHRA Member stores are reset in a timely manner.

Thank you for your continued support!

The following is a paid advertisement

7Vol. 7 Issue 1

GHRA Member #

Store Name

Owner/Mgr. Name

Date

Signature

Total # NCB Shelves Energy

ValueTea

PremiumTea Functional Isotonic DSD Water

Juice Drinks Juice Coffee

Enhanced Water

Protein / Milk

Store Option

My Shelving Allocations:

Category Energy ValueTeaPremium

Tea Functional Isotonic WaterJuice

Drinks Juice CoffeeEnhanced

WaterProtein /

MilkStore

Option% Allocation 24.1% 11.2% 3.0% 4.6% 20.5% 7.7% 7.1% 5.0% 5.3% 5.3% 2.0% 4.2%

Total # NCB Shelves

9 1/2 2 1/2 1 1/2 1/2 2 1/2 1/2 1/2 1/2 1/2 0 1/210 2 1/2 1 1/2 1/2 2 1 1/2 1/2 1/2 1/2 0 1/210 1/2 2 1/2 1 1/2 1/2 2 1 1/2 1/2 1/2 1/2 0 1/211 2 1/2 1 1/2 1/2 2 1/2 1 1 1/2 1/2 1/2 0 1/211 1/2 3 1 1/2 1/2 1/2 2 1/2 1 1 1/2 1/2 1/2 0 1/212 3 1 1/2 1/2 1/2 2 1/2 1 1 1/2 1/2 1/2 0 1/212 1/2 3 1 1/2 1/2 1/2 2 1/2 1 1 1/2 1/2 1/2 0 1/213 3 1 1/2 1/2 1/2 2 1/2 1 1 1/2 1/2 1/2 1/2 1/213 1/2 3 1 1/2 1/2 1/2 3 1 1 1/2 1/2 1/2 1/2 1/214 3 1/2 1 1/2 1/2 1/2 3 1 1 1/2 1/2 1/2 1/2 1/214 1/2 3 1/2 1 1/2 1/2 1/2 3 1 1 1/2 1 1 1/2 1/215 3 1/2 1 1/2 1/2 1/2 3 1 1 1/2 1 1 1/2 1/215 1/2 3 1/2 1 1/2 1/2 1/2 3 1 1 1 1 1 1/2 1/216 4 2 1/2 1/2 3 1/2 1 1 1 1 1 1/2 1/216 1/2 4 2 1/2 1 3 1/2 1 1/2 1 1 1 1 1/2 1/217 4 2 1/2 1 3 1/2 1 1/2 1 1 1 1 1/2 1/217 1/2 4 2 1/2 1 3 1/2 1 1/2 1 1 1 1 1/2 1/218 4 1/2 2 1/2 1 3 1/2 1 1/2 1 1/2 1 1 1 1/2 118 1/2 4 1/2 2 1/2 1 4 1 1/2 1 1/2 1 1 1 1/2 119 4 1/2 2 1/2 1 4 1 1/2 1 1/2 1 1 1 1/2 119 1/2 4 1/2 2 1/2 1 4 1 1/2 1 1/2 1 1 1 1/2 120 5 2 1/2 1 4 1 1/2 1 1/2 1 1 1 1/2 120 1/2 5 2 1/2 1/2 1 4 1 1/2 1 1/2 1 1 1 1/2 121 5 2 1/2 1/2 1 4 1/2 1 1/2 1 1/2 1 1 1 1/2 121 1/2 5 2 1/2 1/2 1 4 1/2 1 1/2 1 1/2 1 1 1 1/2 122 5 1/2 2 1/2 1/2 1 4 1/2 1 1/2 1 1/2 1 1 1 1/2 122 1/2 5 1/2 2 1/2 1/2 1 4 1/2 1 1/2 1 1/2 1 1 1 1/2 123 5 1/2 2 1/2 1/2 1 4 1/2 2 1 1/2 1 1 1 1/2 123 1/2 5 1/2 2 1/2 1/2 1 5 2 1 1/2 1 1 1 1/2 124 6 2 1/2 1/2 1 5 2 1 1/2 1 1 1/2 1 1/2 1/2 124 1/2 6 2 1/2 1/2 1 5 2 1 1/2 1 1 1/2 1 1/2 1/2 125 6 3 1 1 5 2 2 1 1 1/2 1 1/2 1/2 125 1/2 6 3 1 1 5 2 2 1 1/2 1 1/2 1 1/2 1/2 126 6 1/2 3 1 1 5 1/2 2 2 1 1/2 1 1/2 1 1/2 1/2 126 1/2 6 1/2 3 1 1 5 1/2 2 2 1 1/2 1 1/2 1 1/2 1/2 127 6 1/2 3 1 1 5 1/2 2 2 1 1/2 1 1/2 1 1/2 1/2 127 1/2 6 1/2 3 1 1 1/2 5 1/2 2 2 1 1/2 1 1/2 1 1/2 1/2 128 6 1/2 3 1 1 1/2 5 1/2 2 2 1 1/2 1 1/2 1 1/2 1/2 128 1/2 7 3 1 1 1/2 6 2 2 1 1/2 1 1/2 1 1/2 1/2 129 7 3 1 1 1/2 6 2 2 1 1/2 1 1/2 1 1/2 1/2 129 1/2 7 3 1/2 1 1 1/2 6 2 1/2 2 1 1/2 1 1/2 1 1/2 1/2 130 7 3 1/2 1 1 1/2 6 2 1/2 2 1 1/2 1 1/2 1 1/2 1/2 1 1/230 1/2 7 1/2 3 1/2 1 1 1/2 6 1/2 2 1/2 2 1 1/2 1 1/2 1 1/2 1/2 1 1/231 7 1/2 3 1/2 1 1 1/2 6 1/2 2 1/2 2 1 1/2 1 1/2 1 1/2 1/2 1 1/231 1/2 7 1/2 3 1/2 1 1 1/2 6 1/2 2 1/2 2 1 1/2 1 1/2 1 1/2 1/2 1 1/232 7 1/2 3 1/2 1 1 1/2 6 1/2 2 1/2 2 1/2 1 1/2 1 1/2 1 1/2 1/2 1 1/232 1/2 8 3 1/2 1 1 1/2 6 1/2 2 1/2 2 1/2 1 1/2 1 1/2 1 1/2 1/2 1 1/233 8 3 1/2 1 1 1/2 7 2 1/2 2 1/2 1 1/2 2 1 1/2 1/2 1 1/233 1/2 8 4 1 1 1/2 7 2 1/2 2 1/2 1 1/2 2 2 1/2 1 1/234 8 4 1 1 1/2 7 2 1/2 2 1/2 1 1/2 2 2 1/2 1 1/234 1/2 8 1/2 4 1 1 1/2 7 2 1/2 2 1/2 1 1/2 2 2 1/2 1 1/235 8 1/2 4 1 1 1/2 7 2 1/2 2 1/2 1 1/2 2 2 1/2 1 1/235 1/2 8 1/2 4 1 1 1/2 7 1/2 2 1/2 2 1/2 2 2 2 1/2 1 1/236 8 1/2 4 1 1 1/2 7 1/2 3 2 1/2 2 2 2 1/2 1 1/236 1/2 9 4 1 1 1/2 7 1/2 3 2 1/2 2 2 2 1/2 1 1/2

My Store Space Allocation Selections

Fill in Boxes Above

2020

CO

OLE

R RE

SET

FORM

Suggested Space Allocation by Category

Suggested Category Shelving Allocations

2020 GHRA NCB Plan-o-gram Allocation Sign-Up Form

Fill out this form and fax to GHRA office at 281-295-5399

or present to reset crew prior to reset

The following is a paid advertisement

8 Vol. 7 Issue 1

Total # NCB Shelves Energy

ValueTea

PremiumTea Functional Isotonic DSD Water

Juice Drinks Juice Coffee

Enhanced Water

Protein / Milk

Store Option

My Shelving Allocations:

Category Energy ValueTeaPremium

Tea Functional Isotonic DSD WaterJuice

Drinks Juice CoffeeEnhanced

WaterProtein /

MilkStore

Option% Allocation 24.1% 11.2% 3.0% 4.6% 20.5% 7.7% 7.1% 5.0% 5.3% 5.3% 2.0% 4.2%Total # NCB

Shelves37 9 4 1 1 1/2 7 1/2 3 2 1/2 2 2 2 1/2 1 1/237 1/2 9 4 1 1 1/2 7 1/2 3 2 1/2 2 2 2 1/2 1 1/238 9 4 1/2 1 1 1/2 8 3 2 1/2 2 2 2 1 1 1/238 1/2 9 1/2 4 1/2 1 2 8 3 2 1/2 2 2 2 1 1 1/239 9 1/2 4 1/2 1 2 8 3 3 2 2 2 1 1 1/239 1/2 9 1/2 4 1/2 1 2 8 3 3 2 2 2 1 1 1/240 9 1/2 4 1/2 1 2 8 3 3 2 2 2 1 1 1/240 1/2 9 1/2 4 1/2 1 2 8 1/2 3 3 2 2 2 1 1 1/241 10 4 1/2 1 2 8 1/2 3 3 2 2 2 1 1 1/241 1/2 10 4 1/2 1 2 8 1/2 3 3 2 2 2 1 242 10 4 1/2 1 1/2 2 8 1/2 3 3 2 2 2 1 242 1/2 10 5 1 1/2 2 8 1/2 3 1/2 3 2 2 1/2 2 1/2 1 243 10 1/2 5 1 1/2 2 9 3 1/2 3 2 2 1/2 2 1/2 1 243 1/2 10 1/2 5 1 1/2 2 9 3 1/2 3 2 2 1/2 2 1/2 1 244 10 1/2 5 1 1/2 2 9 3 1/2 3 2 2 1/2 2 1/2 1 244 1/2 10 1/2 5 1 1/2 2 9 3 1/2 3 2 2 1/2 2 1/2 1 245 11 5 1 1/2 2 9 3 1/2 3 2 2 1/2 2 1/2 1 245 1/2 11 5 1 1/2 2 9 1/2 3 1/2 3 2 1/2 2 1/2 2 1/2 1 246 11 5 1 1/2 2 9 1/2 3 1/2 3 1/2 2 1/2 2 1/2 2 1/2 1 246 1/2 11 5 1 1/2 2 9 1/2 3 1/2 3 1/2 2 1/2 2 1/2 2 1/2 1 247 11 1/2 5 1/2 1 1/2 2 9 1/2 3 1/2 3 1/2 2 1/2 2 1/2 2 1/2 1 247 1/2 11 1/2 5 1/2 1 1/2 2 9 1/2 3 1/2 3 1/2 2 1/2 2 1/2 2 1/2 1 248 11 1/2 5 1/2 1 1/2 2 10 3 1/2 3 1/2 2 1/2 2 1/2 2 1/2 1 248 1/2 11 1/2 5 1/2 1 1/2 2 10 3 1/2 3 1/2 2 1/2 2 1/2 2 1/2 1 249 12 5 1/2 1 1/2 2 10 4 3 1/2 2 1/2 2 1/2 2 1/2 1 249 1/2 12 5 1/2 1 1/2 2 1/2 10 4 3 1/2 2 1/2 2 1/2 2 1/2 1 250 12 5 1/2 1 1/2 2 1/2 10 1/2 4 3 1/2 2 1/2 2 1/2 2 1/2 1 250 1/2 12 5 1/2 1 1/2 2 1/2 10 1/2 4 3 1/2 2 1/2 2 1/2 2 1/2 1 251 12 1/2 5 1/2 1 1/2 2 1/2 10 1/2 4 3 1/2 2 1/2 2 1/2 2 1/2 1 251 1/2 12 1/2 6 1 1/2 2 1/2 10 1/2 4 3 1/2 2 1/2 2 1/2 2 1/2 1 252 12 1/2 6 1 1/2 2 1/2 10 1/2 4 3 1/2 2 1/2 3 3 1 252 1/2 12 1/2 6 1 1/2 2 1/2 11 4 3 1/2 2 1/2 3 3 1 253 12 1/2 6 1 1/2 2 1/2 11 4 4 2 1/2 3 3 1 253 1/2 13 6 1 1/2 2 1/2 11 4 4 2 1/2 3 3 1 2 1/254 13 6 1 1/2 2 1/2 11 4 4 2 1/2 3 3 1 2 1/254 1/2 13 6 1 1/2 2 1/2 11 4 4 2 1/2 3 3 1 2 1/255 13 6 1 1/2 2 1/2 11 1/2 4 4 2 1/2 3 3 1 2 1/255 1/2 13 1/2 6 1 1/2 2 1/2 11 1/2 4 1/2 4 3 3 3 1 2 1/256 13 1/2 6 1/2 1 1/2 2 1/2 11 1/2 4 1/2 4 3 3 3 1 2 1/256 1/2 13 1/2 6 1/2 1 1/2 2 1/2 11 1/2 4 1/2 4 3 3 3 1 2 1/257 13 1/2 6 1/2 1 1/2 2 1/2 11 1/2 4 1/2 4 3 3 3 1 2 1/257 1/2 14 6 1/2 1 1/2 2 1/2 12 4 1/2 4 3 3 3 1 2 1/258 14 6 1/2 1 1/2 2 1/2 12 4 1/2 4 3 3 3 1 2 1/258 1/2 14 6 1/2 2 2 1/2 12 4 1/2 4 3 3 3 1 2 1/259 14 6 1/2 2 2 1/2 12 4 1/2 4 3 3 3 1 2 1/259 1/2 14 1/2 6 1/2 2 2 1/2 12 4 1/2 4 3 3 3 1 2 1/260 14 1/2 6 1/2 2 2 1/2 12 1/2 4 1/2 4 1/2 3 3 3 1 2 1/260 1/2 14 1/2 7 2 3 12 1/2 4 1/2 4 1/2 3 3 3 1 2 1/261 14 1/2 7 2 3 12 1/2 4 1/2 4 1/2 3 3 3 1 2 1/261 1/2 15 7 2 3 12 1/2 4 1/2 4 1/2 3 3 1/2 3 1/2 1 2 1/262 15 7 2 3 12 1/2 5 4 1/2 3 3 1/2 3 1/2 1 2 1/262 1/2 15 7 2 3 13 5 4 1/2 3 3 1/2 3 1/2 1 2 1/263 15 7 2 3 13 5 4 1/2 3 3 1/2 3 1/2 1 1/2 2 1/263 1/2 15 1/2 7 2 3 13 5 4 1/2 3 3 1/2 3 1/2 1 1/2 2 1/264 15 1/2 7 2 3 13 5 4 1/2 3 3 1/2 3 1/2 1 1/2 2 1/264 1/2 15 1/2 7 2 3 13 5 4 1/2 3 3 1/2 3 1/2 1 1/2 2 1/265 15 1/2 7 1/2 2 3 13 1/2 5 4 1/2 3 3 1/2 3 1/2 1 1/2 2 1/265 1/2 16 7 1/2 2 3 13 1/2 5 4 1/2 3 1/2 3 1/2 3 1/2 1 1/2 366 16 7 1/2 2 3 13 1/2 5 4 1/2 3 1/2 3 1/2 3 1/2 1 1/2 366 1/2 16 7 1/2 2 3 13 1/2 5 4 1/2 3 1/2 3 1/2 3 1/2 1 1/2 367 16 7 1/2 2 3 13 1/2 5 5 3 1/2 3 1/2 3 1/2 1 1/2 367 1/2 16 7 1/2 2 3 14 5 5 3 1/2 3 1/2 3 1/2 1 1/2 368 16 1/2 7 1/2 2 3 14 5 5 3 1/2 3 1/2 3 1/2 1 1/2 368 1/2 16 1/2 7 1/2 2 3 14 5 1/2 5 3 1/2 3 1/2 3 1/2 1 1/2 369 16 1/2 7 1/2 2 3 14 5 1/2 5 3 1/2 3 1/2 3 1/2 1 1/2 369 1/2 16 1/2 8 2 3 14 5 1/2 5 3 1/2 3 1/2 3 1/2 1 1/2 370 17 8 2 3 14 1/2 5 1/2 5 3 1/2 3 1/2 3 1/2 1 1/2 3

2020

CO

OLE

R RE

SET

FORM

My Store Space Allocation Selections

Fill in Boxes Above

Suggested Space Allocation by Category

Suggested Category Shelving Allocations

The following is a paid advertisement

9Vol. 7 Issue 1

2020 GHRA

TOWN HALL MEETINGS

S C H E D U L E

LUNCH

MEETING

1 :00 PM

3 :00 PM

SOUTHWEST , CLEAR LAKE , NORTH

VENUE : HOLIDAY INN EXPRESS

1203 UNIVERSITY DR , EAST

COLLEGE STATION , TX 77840

COLLEGE STATION

VENUE : STAFFORD CENTRE

10505 CASH ROAD

STAFFORD , TX 77477

LUNCH

MEETING

1 :30 PM

2 :00 PM

VENUE : AIRPORT INN

200 NORTH MEMORIAL FREEWAY

NEDERLAND , TX 77627

BEAUMONT

DINNER

MEETING

8 :30 PM

9 :00 PM

TuesdayJan 14th

WednesdayJan 15th

FridayJan 17th

This i s a business meet ing and lunch /dinner wil l

be provided .

Members are requested to please attend .

Thank you , GHRA

(COMBINED MEETING )

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Footprint requires 120 square feet, with 12’ counter space

The Big Madre brand will be marketed to Houston area consumers who shop at GHRA Member stores.

• The brand will drive traffic to your store through shopper loyalty.

• The loyalty will be to the brand and to your individual store.

• Excellence in food service builds greater revenue and better overall margins.

For more informationContact Doug Boone, Food Service Manager

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10 Vol. 7 Issue 1

11Vol. 7 Issue 1

Food Service

Decisions of the Stomach

When hunger or thirst strikes, consumers today have a multitude of foodservice establishments to choose from to satisfy their needs. There are unique differences between those shoppers who most opt to visit c-stores to purchase prepared foods and prepared beverages vs. those who opt for grocery foodservice vs. those who opt for fast

By Doug BooneSource: CFX 2019 Winning Share of Stomach Consumer Study; EnsembleIQ Insights & Innovation Team

food. Beth Brickel, senior research director on the Insights and Innovation Team at EnsembleIQ, parent company of Convenience Store News, discussed these differences — garnered from new exclusive consumer research — at the 2019 CSNews Convenience Foodservice Exchange event, held in June. Here are some of the most actionable insights.

12 Vol. 7 Issue 1

Community

In the month of December the GHRCF Board brought lunch to the Houston Police Station & Harris County Sheriff Department in appreciation for what they do for our community and the Greater Houston Area.

13Vol. 7 Issue 1

Community

14 Vol. 7 Issue 1

with secret Santas and catered food. It’s more than quarterly bonuses and employee recognition awards. All these things matter in the big scheme of things, but it’s the little things that will truly show gratitude. Follow these tips to become a grateful leader:

Keep it simple. Giving thanks doesn’t have to be extravagant. Often, the simplest forms of appreciation have the most power. Single people out. Teamwork is critical, but individual contributions matter, too. Recognize people for their specific efforts, and do it in person and one-on-one, if possible.

Mean what you say. Your appreciation for an employee must be genuine for it to have any impact. Practice random acts of thankfulness. Employees may expect to be thanked at the end of a busy shift or during the holidays. Make giving thanks a year-round event.Benefits of Gratitude in LeadershipWhen you show gratitude for your

employees, it has a ripple effect. Employees who feel appreciated will appreciate each other and, just as important, they will appreciate your customers.

Human Resources

The Ripple Effect of GratitudeHappy New Year! This is the time of

year when you reflect on gratitude. With good reason, much of this is focused on your personal life – being thankful for family, friends, your health, and so on. There’s no doubt that showing gratitude can bring you closer to the people you care about personally, and it can have the same impact at work.

Being a Grateful LeaderWhat does it mean to be a grateful

leader? It’s more than an enthusiastic “way to go, team” at the end of a successful project. It’s more than the staff holiday party you recently hosted

Adapted from article by Ready Convenience

15Vol. 7 Issue 1

to vote or make a change of address effective for the Tuesday, March 3, 2020 primary election. So, let’s take a look at some of the upcoming state House legislative contests in the GHRA footprint of Texas.

• Sugar Land & Southeast Richmond. With no incumbent running, the open House district anchored at the intersection of Beltway 6 and Highway 59 features spirited primary contests in both the Democratic and Republican primaries this March. Four candidates are running in the Democratic primary, including medical doctor Suleman Lalani, a former four-year Chairman for the Regional Committee of the Aga Kahn Foundation USA.

• Stafford & Missouri City. The House district centered at the intersection of Highway 90A and 1092 involves a Democratic primary challenge by Byron Ross against incumbent Ron Reynolds. Two candidates are running in the Republican primary, including certified public accountant Manish Seth, who grew up in the Stafford / Missouri City area. • Northeast Katy /Cypress Area. Businesswoman Angelica Garcia will face attorney Mike Schofield in the March Republican primary to determine who will challenge incumbent Democrat Gina Calanni in the November general election. You can expect strong results by Mike Schofield based on his proven record and mastery of the issues. • Northwest Houston. This open seat in HD 138 features multiple contestants in both party primaries, which will result

in a run-off to determine who will meet in the general election in this toss-up district above IH-10 that includes both Beltway 6 and 8. • Fifth Ward & Northeast Beltway 8. 75-year old Harold Dutton has been a member of the legislature for 34 years, but now faces two Democrat primary challengers, including District B city councilman Jerry Davis. • South Houston & South 288. Incumbent Shawn Thierry faces a spirited Democratic primary challenge from activist Ashton P. Woods. As a final item, in the wake of last

month’s Houston City Council runoff elections, the City Council will not have an Asian-American member for the first time since 1993 because Raj Salhorta (At Large 1) and Van Huynh (District F) were unsuccessful.

Your GHRA Board of Directors is committed to properly managing the evolving electoral landscape to maintain positive bipartisan working relationships throughout Texas. As always, GHRA will closely monitor new laws, policies, and other matters that are important to you.

Government Relations: News UpdateAustin, Texas – Happy New Year 2020

to our entire GHRA community and the customers that our member stores serve!

First, let’s note the federal landscape. With the beginning of the new year, public interest in elections will increase because calendar year 2020 is a presidential election year. While incumbent President Donald Trump is the Republican Party standard bearer, the initial contests to determine the Democratic Party nominee will take place next month. The February 3 Iowa caucuses will be followed by primary contests in New Hampshire, Nevada, and South Carolina. A very select few candidates will gain momentum that will allow their campaigns to continue with credibility into the “Super Tuesday” primary elections that will be held in 15 states on Tuesday, March 3. Importantly, the two states of the 15 holding the largest number of delegates – California and Texas – are Super Tuesday election day states. So, because of the sheer number of delegates up for grabs on March 3, the Democratic nominee will very likely be known late that night.

However, the federal offices are not necessarily the most relevant to GHRA member stores. Down the ballot, in the long shadow of those seeking federal offices, state-level candidates are seeking offices that are critical to the business operations of GHRA members. Like other business operators, GHRA members desire a tailored regulatory environment and low operating costs. Actions by state-level legislators have a more immediate effect on mandates, regulations, and taxes.

State-level legislators and your ability to help pick the winners truly matter. Without regard for your political party affiliation, please note that Monday, February 3, is the last day to register

By Steve Koebele – Attorney & Government Relations Counsel

Government Relations

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T H A N K Y O U F O R

Y O U R S U P P O R T !

The strength of the team iseach individual member.

The strength of eachmember is the team.

- Phil Jackson

Quote of the month submitted by: Ferooz Yahuqubi - Rebate Analyst

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placing increased sensitivity on overall value, according to Edge by Ascential.

"What we're seeing offline is similar to what we're seeing online," said David Gordon, research director at Edge by Ascential. "There's an increasing emphasis on low cost and convenience. You can see it through the lens of Amazon, and it will continue to play out online in similar ways."

U.S. projections are similar to global projections where convenience stores (6.6 percent), non-food discount stores (5.2 percent) and discount stores (4.9 percent) join membership club stores as experiencing the fastest growth.

The analysis also found that food discount stores are projected to continue gaining overall share, increasing to 9.7 percent of food sales in 2024, from 8.8 percent today and 7.4 percent in 2014.

Convenience stores will continue to thrive due to urbanization, declining household sizes and preferences for smaller shopping missions. They are

also proving relatively resistant to share loss from online retailers, with only a .2-percent loss in share from 2013-2018, according to Edge by Ascential.

The findings come from Edge by Ascential's Retail Market Monitor, which analyses how individual sectors are currently performing and how they are forecast to grow by 2024.

Boston-based Edge by Ascential is a ecommerce insights company. It is a subsidiary of Ascential plc, a London-based global specialist information company.

Industry News

Report: C-stores Among Fastest Growing Retailers Despite Retail Apocalypse

Price and speed are a winning combination for convenience stores.

According to new analysis by Edge by Ascential, the U.S. convenience and discount channels are projected to grow faster than all other offline retail channels over the next five years, reflecting consumers' increased focus on price and speed, even if it means more limited assortment.

Non-food discount, food discount and c- stores are all projected for annual growth rates above 5 percent, whereas all other offline retailers, aside from membership club stores, are projected at annual growth rates of 3 percent or below.

C-stores are projected for the highest growth at 5.4 percent, with discount and non-food discount stores projected at 5.3 percent and 5 percent, respectively.

The forecast seems to reflect broader economic trends. Paychecks remain relatively steady as unemployment continue at historic lows; however, wages remain stagnant for many workers,

By Greg Lindenberg, CSP Daily News

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things, including legacy systems.• Tech-enabled automation will fuel

efforts toward customization. Look to examples in China, where automated baristas in stores allow consumers to order and pay through WeChat to choose their coffee type, exact temperature and taste profile.

• Tech-enabled delivery systems will continue to roll out. And, as connected cars become a reality, we can envision technology fueling the ability to order in-store items from the pump for delivery to your car.

Prediction 2: Convenience Store Food Service Gets an Image Upgrade

Nielsen’s Convenience Store Choice Drivers shows that quality and variety of prepared foods are two of the top attributes that drive brand equity. With this in mind, C-store retailers are working to

expand and optimize their menus, better cater to day part needs and meet the need for fast, fresh food. As the fight for “share of stomach” continues, we foresee a move toward upgrading the overall image of food service at convenience, as quality and selection of offerings continues to improve.

Prediction 3: Increased Focus and Need for Quality Employee Training for CBD and Food Service

Many factors are influencing and shifting the traditional role of in-store retail employees, including the emergence of technology, the rise of fresh food service offerings and the federal legalization and widespread availability of non-edible cannabidiol (CBD) products. Within the coming months and years ahead, there will be an increased need to focus on quality employee training, specifically within the CBD and fresh food service

Industry News

7 Important Factors That Will Shape the Future of Convenience Retail

Across the U.S. retail landscape, we believe convenience stores will grow faster than all other offline channels over the next five years, reflecting the hyper focus consumers are putting on expediency. Convenience stores, however, are no longer just competing against other convenience store players. Channels are blurring and C-stores now compete with an array of players that include: quick serve restaurants, smaller formats of grocery and mass and drugstores that are increasingly focusing efforts on fresh and fresh prepared/grab-and-go offerings. Additionally, digital transformation and the consumer’s growing desire for frictionless retail has raised the bar for convenience retailers and their approach to technology adoption.

As a new decade of convenience retail unfolds, these are seven important factors that will shape the future of the convenience industry as we know it.

Prediction 1: Convenience Stores Become More Automated and Increasingly Unmanned

In China and Korea, consumers are already experiencing a whole new level of frictionless payments thanks to RFID, scanner, biometrics and sound wave technologies. In the U.S., Amazon Go has announced plans to open nearly 3,000 cashier-less stores by 2021. U.S. retailers take note, technology investment and adoption will play a critical role in deciding which C-store retailers will be threatened toward extinction and which ones will thrive in the years ahead.

• In the U.S., expect upgraded technology to overhaul a number of

By Jeff Williams, SVP of Retail and U.S. Industry Relations, Nielsen

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video gaming terminals. Retailers are also offering unique specialty food and beverages from grind-to-cup coffee makers. Additionally, the emergence of electric cars, and thus the rise of electric car charging stations, also reinforces this need. In order to compete with charging stations at malls and big box retailers, convenience locations will need to provide consumers with an incentive to charge there. As more consumers are drawn to experiential retail, we will certainly see a continuation of creative ideas come to life.

Prediction 6: Personalization and Customization are the Future of Convenience

As the value of a convenience shopping experience continues to grow in importance, convenience as a channel must play into its true strengths. To be the retail channel that best services the needs of on-the-go consumers, it must connect to consumers on a personal level. C-store retailers that are able to get the right product to consumers at the right time will win. This means anticipating consumer needs and understanding and catering to day part needs at even a

deeper level. Additionally, C-store loyalty plans will mature past implementation of simple reward programs. Advanced programs will emerge, appealing to the emotional side of the consumer through enjoyable experiences. In the future, transactional incentives like assortment and price will no longer be enough to maintain consumer attention and loyalty.

Prediction 7: Convenience Players Will Re-imagine Grab-and-Go Packaging to Be More Sustainable

Today’s convenience culture feeds into an on-the-go lifestyle, servicing consumers with neatly packaged offerings to literally grab-and-go. However, U.S. consumers are beginning to adopt a zero-waste mindset. In the coming year(s), C-stores will need to address issues linked to waste management, the anti-plastic movement and the rising consumer backlash toward single-use packaging. Retailers that are ahead of the game will be looking to show consumers that they are doing their part to close the sustainability loop and not contributing to the growing packaging problem.

Industry News

sectors to ensure product questions (for CBD products) are being answered with accuracy and proper food safety protocols and standards are being reinforced.

Prediction 4: Convenience Stores are a Prime Target for Private Label Disruption

The rise of private label within the U.S. has disrupted the traditional grocery retail landscape. Currently, only about 6% units sold in C-stores are private level, vs. 16%-23% in other channels. Given the growth opportunity, C-stores are a prime target for UPC private label disruption.

Prediction 5: Convenience Retail Will Get Creative with Experiential Retail

Retailers are increasingly relying on experiences to draw consumers into brick-and-mortar locations. Within the convenience store arena, experiences are growing ever more important—especially as C-store retailers fight to maintain and grow their share of stomach in an ever-crowded world of quick meal and snack options. Today, we see retailers adding seating areas and creating social gathering spaces. Within states where it is legal, we see C-stores putting in

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CATEGORY/BRAND PREDICTIONS

4. CBD goes mainstream: With 28 percent of consumers already using CBD oil, and another 54 percent open to trying it, CBD sales are projected to grow from just under $2 billion in 2018 to $20 billion by 2024.

5. Plant-based everything: Sales of plant-based food grew by double digits and at five times the rate of total food sales in the past year, with continued growth expected.

6. Consumers' need for more pet products: Pet food continue to be a driver for brick-and-mortar sales as well as in e-commerce, which grew by more than 50 percent last year.

7. Premiumization makes a comeback: Consumers will be eager to trade up to premium products to indulge or treat themselves as the economy continues going strong.

8. Expansion of functional foods & beverages: With "healthfulness" becoming increasingly important to consumers — nearly two-thirds of U.S. adults agree that it has a significant impact on their food and beverage purchase decisions — sales of food and beverages with added nutritional benefits, like electrolytes, minerals, adaptogens, and prebiotics, are expected to reach $275 billion by 2025.

9. Private brands on the rise: The private brands market, which represented almost one in five consumer packaged goods dollars sold last year, will continue to grow.

10. Reduced access to e-cigarettes & tobacco: Retailers' focus on health and wellness will continue to outweigh their sales focus on non-healthy products.

11. Buying local grows: Retailers will need to differentiate their assortment at the local market level to entice customers as consumers become increasingly aware that locally sourced food will be fresher, support regional economies and generate fewer carbon emissions.

SHOPPING EXPERIENCE PREDICTIONS

12. Retailers double down on remodels: Major retailers will incorporate more fresh food space, online order solutions like in-store kiosks, and easier checkout options, including cashierless technology.

Industry News

Top Predictions for the CPGIndustry in 2020

Higher demand for pet products, integration of the in-store and online shopping experience and non-traditional channel growth are among the top predictions for the consumer packaged goods (CPG) industry in the year ahead.

A new report from Acosta, a full-service sales and marketing agency based in Jacksonville, compiles 20 top CPG predictions for 2020, grouped into four categories: Macro Consumer Predictions, Category/Brand Predictions, Shopping Experience Predictions and Store Operations Predictions.

"We expect to see continued growth in many of the categories that took off in 2019 such as self-care, CBD and plant-based food," said Colin Stewart, Executive Vice President of Business Intelligence at Acosta. "Additionally, in 2020, retailers will focus on becoming more environmentally conscious, sourcing locally, keeping prices low and making the in-store shopping experience more enjoyable and tech-friendly."

These are Acosta's top 20 predictions for 2020:

MACRO CONSUMER PREDICTIONS

1. Focus on self-care: The $9.9 billion self-care industry is expected to continue growing.

2. Experience-based shopping: Brands building memorable experiences will cash in, thanks to millennials.

3. Emphasis on sustainability: With 73 percent of consumers willing to change their purchase habits to improve the environment, retailers will focus on eco-friendly initiatives.

By Convenience Store News

21Vol. 7 Issue 1

household needs.16. Continued perimeter

improvement: Prepared foods, which topped $12.5 billion in sales last year, will continue to be a heavy-hitter on the perimeter.

17. Low price is table stakes: Retailers will continue to press for non-negotiable low prices to remain competitive.

STORE OPERATIONS PREDICTIONS

18. Supply chain focus: Retailers will focus on increasing on-shelf availability and lowering inventory costs by leveraging inventory optimization solutions and demand-based systems.

19. Expanded grocery delivery and pickup options: Online grocery spending is expected to more

than double by 2023, with the 21 percent of U.S. shoppers buying groceries online this year expected to grow significantly as retailer click and collect and same day grocery solutions expand.

20. Non-traditional channel growth: Strong sales growth is projected for small store formats and club channel retailers, which are succeeding by offering differentiated items, whether it is a focus on better-for-you, local/specialty/curated offerings, or by providing value through their own brands.

Acosta's top 20 CPG industry predictions for 2020 were compiled by Acosta business leaders across the country and supported by analysis and custom research by Acosta Strategic Advisors.

Industry News

13. Focus on store experience: Most consumers like a brick-and-mortar store experience that delivers sights, sounds and smells, and retailers can keep customers further engaged with events like cooking demonstrations.

14. Mobile-enabled shopping in the store: An estimated 53 percent of all purchase decisions are digitally influenced, so a seamless integration between the store and the digital experience is imperative.

15. Path to purchase is no longer linear: Loyalty will become more fragmented, with 87 percent of all shoppers and 94 percent of Gen Z/millennial shoppers using smartphones, shoppers can move seamlessly between both physical and virtual channels to meet their

GHRA 20THANNIVERSARY GALA

SAVE THE DATE

Celebrat ing 20 Years O f Un i t y

Saturday , February 29 , 2020

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by Hughes Network Systems. He was joined by a panel of industry experts — Ed Collupy, executive consultant with W. Capra Consulting Group; Jay Dempsey, manager of merchandising technologies at Love's Travel Stops and Country Stores; and Jeff Bradbury, senior marketing director for Hughes Network Systems — who provided additional insights into the results.

"It's great to hear that companies in the convenience/petro industry are really continuing on that path of increased investment in technology," said Collupy. "It certainly follows with what's going on both in general retail and retail systems, and with many of those companies I speak with and work with, there is a demand for new and updated systems. As the study shows, there's investments occurring both in-store and

at headquarters."Two things in particular stand out

among the top tech priorities: EMV compliance and employee engagement, Bradbury observed.

While the industry has made some progress, it still has a lot of work to do in order to be fully compliant by the October 2020 EMV deadline — which shifts full liability from the card companies to retailers. According to the study, 96 percent of the industry is either fully compliant or on the way to becoming compliant at the point-of-sale (POS).

"The sticking point is at the pump," Longo said, citing that 20 percent of c-store retailers say they have not even started the EMV compliance process at the forecourt.

"We are absolutely anxious about this. If that 20-percent number is right,

Technology

C-store Operators Move Technology Investments to the Must-Have Column

Not that long ago, technology initiatives were a nice-to-have in the convenience channel, a bonus to stand out in the competitive set. But today, convenience store operators are moving technology from their wish lists to their priority lists.

According to the recently released 2019 Convenience Store News Technology Study, nearly two-thirds of c-store IT executives said their technology budget increased in the past year — and nearly a quarter of them said their spending increased by 10 percent or more over the previous year.

Looking ahead, six out of 10 c-store IT execs expect to spend more on technology in 2020 than they did in 2019. Only 14 percent expect to spend less.

Convenience Store News Editorial Director Don Longo presented the study's findings in a Nov. 21 webcast sponsored

By Melissa Kress, Convenience Store News

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the trucking industry deals with a driver shortage.

"Just trying to get help is a challenge for them, so their ability to service us effectively has caused us to take a larger role in terms of taking on these responsibilities to bridge these gaps," Dempsey said. "Because at the end of the day, the customer doesn't really forgive us if a supplier can't perform for any reason."

When a product is out of stock, it creates one of the biggest friction points for a customer and creates a very poor customer experience, Collupy added.

REDEFINING CONVENIENCE The results of this year's Technology

Study confirm that technology is now a central part of doing business in the c-store and fuel retailing space.

"As the retail universe faces new challenges, and as store types continue to blur the lines between convenience and other channels, technology advances are critical for convenience retailers as both a way to differentiate from the competition and to continue to command ownership of the 'convenience' factor," Longo said.

Bradbury agreed, noting that other

retail channels are vying for the title of convenience. He pointed to a Wall Street Journal article from earlier this year that talked about how all retail today is about convenience.

"All different aspects yield convenience, whether it is frictionless/faster checkout or better loyalty programs. Interestingly enough, in all this discussion about convenience in retail, the one thing the Wall Street Journal didn't mention was c-stores," Bradbury said. "That just goes to show you the blurring of the lines and how all different retail is in each other's business areas and striving to find way to make the customer experience more seamless and easier — and thereby providing convenience to the customer.

"I think everybody is going to try to take their spin on what convenience means in their business model and figure out a way to optimize the convenience level for that model. That's the retail impact across the board," he continued.

Technology

that means somewhere north of 30,000 or 35,000 c-stores haven't started the process at all yet," Bradbury said. "Taking it even further, it probably means that another 30,000 to 50,000 have started the process but aren't through the process and aren't sure they are going to get to the end of the process by the end date."

He urged c-store retailers to start early to avoid getting backed into a corner and either bearing the cost of failing the transition or implementing a mediocre transition approach.

When asked as part of the study to rank their near-term tech priorities, respondents chose better inventory management as No. 1 for the second consecutive year.

However, Dempsey said there is probably "a long laundry list" as to what is No. 1 — including labor concerns and engaging labor to keep up with inventory. Most retailers, he explained, want an automated inventory replenishment system.

"Out-of-stocks will always be a key fundamental reason," Dempsey noted.

Retailers are not the only ones faced with labor pressure; suppliers are being challenged as well, notably as

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24 Vol. 7 Issue 1

New Member Introductions

WelcomeOn behalf of the Board of Directors and staff at GHRA,

please welcome our newest members as of January 2020:

MembersMembers

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Marketing

Happy New Year from GHRA Warehouse!

Happy New Year to all of our GHRA members! We are thrilled to begin 2020 as it marks the fourth year of the GHRA Warehouse and Distribution Center. We have experienced

greatness and success and it would not be possible without the support of our members.

We look forward to bringing in lots of new items in this upcoming year, assuring we offer the most competitive pricing, along with promotional activities

and discounts that will be available for our GHRA members.

Be on the look out for a variety of assorted products and promotions in our monthly magazine along with our weekly news flyer that is sent via e-mail at the beginning of each week. Our What’s New at GHRA weekly communication segment helps us inform our members of the new items we are carrying in the GHRA Warehouse, items that are being discontinued, recall announcement, FLASH SALES, and other on going communication that is relevant to our members.

Last year, we went through different tricks and tactics you can use as an independent store owner to boost your sales, increase store walk-ins, decorating

Hamna SiddiqiGHRA Marketing Assistant

your c-store according to the events that are taking place in your near by areas, as well as seasonal décor. In the year 2020, we will be focusing and re-strategizing these tactics to bring forward more marketing trends and news.

As we evolve in 2020 and celebrate the 20th anniversary of GHRA, and the 4th year anniversary for our GHRA Warehouse, we look forward to new ideas and insights that are essential to our growth and future development. One of my favorite quotes to start the year off with is “If you focus on results, you will never change. If you focus on change, you will see results” quote by Jack Dixon. We’re excited for what 2020 has in store, literally in the store’s of our GHRA members.

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