Delivering the Goods

Amcon Distributing Co.

Perhaps the toughest job for any single-store owner in the convenience store industry is inventory control. With so many hats to wear, the daunting task of controlling in-stocks, out-of-stocks and over-stocks is certainly something that can slip through the cracks.

Fortunately, many one-store operators receive assistance from their wholesalers in the area of inventory control, and this is where Omaha, Neb.-based Amcon Distributing Co. stands out, earning the 2014 Wholesaler Excellence Award for Best Inventory Control.

“Whenever I ask a question or [want] help with something, [Amcon] is so quick to help me,” one single-store owner stated in their nomination of Amcon. Another retailer when asked how Amcon can better serve them, said simply: “They are doing great. I enjoy working with them.”

Stocking the right products on the shelves is a major component of inventory control. Retailers nominating Amcon specifically pointed to this aspect as an area where the company excels. “Our rep comes in at least once a month and reviews with us what is selling and what needs to go. He also [removes] out-of-dates,” one single-store operator commented.

In 2013, Amcon was ranked the seventh-largest U.S. distributor based on estimated sales of $1.2 billion during its last fiscal year, according to CSNews for the Single Store Owner research. Along with its wholly owned subsidiaries, the company is engaged in the wholesale distribution of many consumer products, including tobacco, candy and other confectionery, beverages, foodservice, grocery, automotive, and health and beauty care.

Amcon serves approximately 5,000 retail outlets in the Central, Rocky Mountain and South regions of the United States and distributes more than 16,000 products via its six warehouses. Amcon also operates 16 retail health food stores in Florida and the Midwest.

— Brian Berk

Best Speed to Market: 

Farner-Bocken Co.

Navigating new products and ensuring they make it to the shelf quickly are two separate but related challenges. While large convenience store chains have a team dedicated to these tasks, single-store owners with limited staff often rely on the expertise of their wholesaler.

For its ability to quickly deliver the new products that keep single-store owners competitive, Farner-Bocken Co. is the Wholesaler Excellence Award winner in the Speed to Market category.

Founded in 1939, Carroll, Iowa-based Farner-Bocken is a family-owned and -operated business that serves retailers throughout 14 states in America’s heartland. The company distributes more than 14,000 items in all major product categories, including candy, snacks, convenience foods, ice cream, tobacco, groceries, automotive, beverages, health and beauty care, paper, chemicals and supplies.

Single-store owners gave high marks to the wholesaler’s ability to keep up with the latest industry trends. “My salesman is constantly getting me product rankings and velocity movement reports of items in the warehouse to ensure we have the correct product selection on our shelves,” one retailer said in their nomination.

Farner-Bocken also provides assistance with retailer coffee programs and damaged product returns, according to additional nominating comments.

“Our service rep is in our store merchandising and doing returns at least once or twice per month,” stated another retailer. “He makes a point to speak to our inventory manager and to us, the owners, every time he is in the area.”

The distributor also utilizes resources available to clients through its website, including iOrder, an Internet ordering and reporting tool.

Looking ahead, single-store owners would like to see Farner-Bocken expand its grocery item selection. Taking customer feedback into account appears to be a priority for the company, as evidenced by Chairman John Norgaard’s mantra: “Ask always: Is it good for the customer?”

— Samantha Negraval

Best Partnership Relationship With Retailers:

H.T. Hackney Co.

Implementing a systems-based approach to stocking a store — one with access to valuable data — is key for convenience store operators. However, single-store owners often cannot afford to put such systems in place like their larger chain counterparts can. That’s why a retailer’s relationship with its wholesaler is so critical to the success of the business.

According to independent operators, Knoxville, Tenn.-based H.T. Hackney Co. fills that critical role. “Hackney continues to impress me with their overall operations and service mentality,” said one retailer. “They continue to bring in products I need to compete aggressively. No matter your size of operation, service is first with Hackney.”

Pointing to its 15-year relationship with H.T. Hackney, this same one-store operator added that the wholesaler is a large company that operates as a family business. “This is a relationship business and I am fortunate to have the relationship I do with Hackney,” said the retailer.

H.T. Hackney began in the business of delivering goods in East Tennessee in 1891. In addition to its other businesses, the company now operates 30 grocery distribution centers across the country. As part of its mission, H.T. Hackney strives to provide customers with quality products, competitive pricing, superior service and professional assistance that will enable all sides of the partnership to grow and succeed together.

Single-store owners would like the wholesaler to keep up the good work by continuing to bring products to market that help their stores better compete, particularly in the area of foodservice.

Overall, though, Hackney draws applause from its single-store retailer partners.

“We communicate daily as needed and we are both always committed to improving both businesses,” one nomination stated.

— Melissa Kress

Best Product Education & Sales Literature:

McLane Co. Inc.

McLane Co. Inc., the country’s largest convenience distributor, has done a lot in the last 12 months to enhance the product education and sales literature it provides to its retailer customers, so it’s not surprising the company received the highest rating in this category.

McLane’s Vice President of Marketing Tom Sicola said this is an important aspect of the supplier-
wholesaler-retailer relationship because “timely access to product education and sales literature empowers our retail customers to make informed decisions to buy better, sell smarter and profit more.”

The keys for a wholesaler to excel in product education and sales literature, according to Sicola, are category management expertise, excellent relationships with manufacturers, big data, well-designed sales materials, and a world-class online portal where retailers can easily access and download information as well as order products and promotions.

With this in mind, McLane made several enhancements to its product education during the last year, foremost being a redesign of its Strategic Merchandising Portal. This “value-add online tool” gives McLane customers 24/7 access to learn about and order new items, featured items and current promotions; review and download up-to-date category-specific articles and planograms; and review and download current sales literature on McLane’s retail merchandising programs.

In the area of sales literature specifically, the wholesaler made sure all of its materials can be accessed and downloaded from the Strategic Merchandising Portal. Also in the last 12 months, McLane produced customer testimonial videos, along with educational videos on its value-add offerings (Virtual Trade Show, Strategic Merchandising Portal, Lab Store and technology applications). These videos can be accessed on the McLane Co. website and its YouTube account.

For 2014, McLane has more initiatives planned, but Sicola said they’re confidential at this time.

— Linda Lisanti

Best Planograming for Profits:

S. Abraham & Sons Inc.

Although convenience store customers might never realize its importance, retailers know that a good planogram can make the difference between mediocre and excellent sales. S. Abraham & Sons Inc. (SAS), in business since 1927, has the experience to offer its retailer customers exactly the planograms they need. Because of this, the foodservice-specialized distributor earned the 2014 Wholesaler Excellence Award for Best Planograming.

“In general, anytime we had issues, they had recommendations and/or solutions,” said one single-store owner. “[They are] very attentive to details and follow-through.”

Another retailer commended SAS for scheduling resets without them being requested.

The Grand Rapids, Mich.-based company — winner of last year’s Best Partnership Relationship With Retailers award — serves customers in Michigan, Ohio, Illinois, Indiana, Kentucky, Pennsylvania, Wisconsin, Iowa and Missouri. The wholesaler uses a combination of technology and category knowledge to help its customers organize their shelves for the best results.

“We use [the] Nielsen Spaceman system. Product movement and selection is analyzed using IRI (Information Resources Inc.), SAS SMART System and customer scanning data if available,” explained Jim Anderson, vice president of marketing for SAS. “We also collaborate with our manufacturers for validation on every major category planogram or update. Retail shelf space must be maximized for our customers.”

The company makes a point of anticipating future trends and acting quickly to address them, Anderson added. Among the tools SAS offers retailers are its Pacesetter Program, which schedules new item releases; a monthly promotion package; seasonal presells; a foodservice showcase; and a NEX GEN smart ordering system. Retailers can also measure the results of this activity through a customer portal.

“We strive to put our customers’ interest first in all decision making. In long-term business relationships, there may be times when a problem or issue may arise. If or when that occurs, we will make it right whatever it takes,” Anderson said. “From senior management to all of the SAS team, our customers are first.”

— Angela Hanson

HONOR ROLL

Convenience Store News for the Single Store Owner conducted a poll among its single-store subscribers, asking them to rate their wholesaler in five categories: inventory control, partnership relationship, planograming, product education and sales literature, and speed to market. In addition to awarding a winner in each category, this Honor Roll recognizes companies that also received strong scores in one or more of the achievement categories.

Earning a spot on this year’s Wholesaler Excellence Awards Honor Roll are 

(in alphabetical order):

• Capital Candy Co. Inc., Barre, Vt.
• Cash Wa Distributing, Aberdeen, S.D.
• Chambers & Owen Inc., Janesville, Wis.
• Kennedy Wholesale, Fontana, Calif.
• MCT Wholesale, Macon, Ga.
• MR Williams Inc., Henderson, N.C.
• W.L. Petrey Wholesale Inc., Montgomery, Ala.