REG Signs Supply Deal with Hunt & Sons
Reladyne Acquires Nick Barbieri Trucking
California Bans Flavored Tobacco
7-Eleven Partners with Instacart
DoorDash Launches DashMart Virtual C-Store

REG SIGNS SUPPLY DEAL WITH HUNT & SONS

AMES, IA. — Renewable Energy Group, Inc. has signed a deal with Sacramento-based Hunt & Sons, Inc. to supply REG Ultra Clean at 12 locations in Northern California.

The alternative fuel has been added to the company's stations in Rancho Cordova and Sacramento, CA. The product will be rolled out to 10 additional stations located in Benicia, Antioch, Stockton, Oakdale, Modesto, Ceres, Livermore, and San Jose in the coming months.

"Hunt & Sons is excited to expand our relationship with REG by providing our customers throughout Northern California with a cleaner burning renewable fuel," said Hunt & Sons CEO Josh Hunt, announcing the deal. "We always strive to provide the best customer service and most innovative products to our customers and REG Ultra Clean will help us fulfill those goals while benefitting the environment."

"This agreement positions REG and Hunt & Sons to deliver a cleaner-burning, sustainable fuel that immediately reduces emissions within their existing fueling systems and infrastructure," said REG Vice President, Sales and Marketing, Gary Haer. "We are proud to work with Hunt & Sons to provide solutions that answer the call of California's forward-thinking carbon reduction strategies."

Hunt & Sons distributes gasoline, diesel, bio and renewable fuels, propane and lubricants throughout Northern California and Northern Nevada through 36 distribution centers and over 60 CFN and Pacific Pride Cardlocks.

RELADYNE ACQUIRES NICK BARBIERI TRUCKING

CINCINNATI, OH. — Nick Barbieri Trucking, based in Santa Rosa, CA., has been acquired by RelaDyne in a deal closed in September. The purchase price was not disclosed.

Included in the purchase are gasoline, diesel, lubricant, and cardlock businesses of Nick Barbieri Trucking, operating under the names of Redwood Coast Fuels, North Bay Petroleum, and Nick Barbieri Trucking.

"The acquisition of Nick Barbieri Trucking is an exciting entry into California for RelaDyne," stated Larry Stoddard, president of RelaDyne, announcing the deal. "We are thrilled to welcome Nick, the management team, and all associates to the RelaDyne family.

"We will immediately be able to offer the Nick Barbieri Trucking customer base new products and services to expand the RelaDyne footprint."

"Our family has been privileged to serve the northern California energy market starting with my grandfather Peter Barbieri, my father Bob, and now myself," said Nick Barbieri, former owner of Nick Barbieri Trucking. "One of my objectives was to find an organization prepared to continue to develop the reputation and local talent base that we have built through three generations since 1951."

Barbieri added, "Partnering with RelaDyne, we will keep customer service as our number one priority, and our operations will be able to continue to grow by providing even more products and services to our loyal customers to continue to uphold our family legacy."

"Our partnership with Nick Barbieri Trucking is the first strategic step as we execute on our West Coast expansion strategy and continue to build a national footprint, border-to-border and coast-to-coast," said David Schumacher, RelaDyne vice president of Business Development. "This is a powerful combination that will fuel future growth."

Schumacher added "RelaDyne and the associates of Nick Barbieri Trucking will be one of the largest commercial fuel and lubricant distributors with a broad service offering to its present and future customers in California and surrounding states."

CALIFORNIA BANS FLAVORED TOBACCO

SACRAMENTO, CA. — California has banned the sale of all flavored tobacco products, effective as of January 1, 2021. The new law will "unify" ordinances that have been enacted in cities and counties around the state.

The bill, SB 793, as signed into law by Governor Gavin Newsom, prohibits the sale of all flavored tobacco products including pods for vape pens, menthol cigarettes, chewing tobacco, and tank-based systems.

The law excludes loose-leaf tobacco, tobacco that is smoked in water pipes, and premium cigars costing $12 or more.

Menthol cigarettes account for roughly 30% of cigarette sales; flavored cigars account for 50% of cigar sales; and flavored smokeless tobacco products account for 86% of smokeless tobacco sales in convenience stores.

According to the California Department of Public Health data indicate that about 70% of black smokers in California smoke menthol cigarettes, compared with 18% of white smokers.

California State Senator Jerry Hill called the signing of the law a "huge win for our kids and the health of our communities throughout California."

Sam Bayless of the California Fuels and Convenience Alliance, who lobbied against the legislation, stated "CFCA is extremely disappointed to see that the California State Legislature and Governor Gavin Newsom have once again dealt a divisive blow to California's small businesses."

Bayless noted that "In San Francisco, when a similar ban was passed, retailers lost $17.7 million in transactions, over 80 jobs were destroyed, and the city missed out on more than $2 million in tax revenue.

"This same pattern was repeated in every other major city that has passed a ban of this nature, all with no impact to youth acquisition of these products. Now the same will happen throughout the state, taking away over $200 million in tax revenue during an economic crisis, worse than the 2008 recession."

Bayless added, "With a 95% success rate in keeping age-restricted products out of the hands of the youth, California's gas stations and convenience stores are the most successful industry in keeping these products out of the hands of kids. With this, the legislature has decided to push customers to illicit sources, and spit in the face of responsible retailers, all for the sake of hollow and ill- conceived promises. This is yet another example of a poorly discussed 'solution' that will come back to haunt our state."

The National Association of Convenience Stores, which opposes flavored tobacco bans, has predicted the flavor ban will create a black market for the flavored products.

The California Statewide Law Enforcement Association agreed with this assessment and opposed the legislation. The LEA predicts that the ban will allow criminal networks to smuggle and sell tobacco products in California, adding to the burden on law enforcement.

7-ELEVEN PARTNERS WITH INSTACART

IRVING, TX. — 7-Eleven Inc. has signed a deal to partner with the home delivery service Instacart.

In a "multi-phased launch" that started in the East, 7-Eleven will offer delivery of its convenience store items in a time frame ranging from 30 minutes to same-day.

Customers can shop at 7-Eleven using the Instacart mobile app or by visiting instacart.com/711. They must enter their zip code, select the 7-Eleven storefront and add items to their Instacart grocery cart. An Instacart personal shopper will pick up and deliver the order within the customer's designated time frame, whether it's as fast as possible or scheduled in advance. In the pilot phase, 7-Eleven delivery via Instacart is available from 8 a.m. to 10 p.m..

"We're excited to introduce 7-Eleven as Instacart's first national convenience store partner," said Instacart President Nilam Ganenthiran, announcing the deal. "7-Eleven is a beloved, generational brand with a deep legacy. Most of us grew up with a 7-Eleven in our neighborhood and probably remember our first Slurpee drink.

"We know that sometimes people need a full fridge and pantry restock, and other times they simply need a couple of items quickly," he continued. "Whether it's a late-night snack or batteries for the TV remote, by partnering with 7-Eleven we're able to help even more consumers get exactly what they need, when they want it, from the retailer they love."

7-Eleven plans to expand the service nationally to more than 7,000 locations across the United States. The companies did not announce when the service will be available in the West.

DOORDASH LAUNCHES DASHMART VIRTUAL C-STORE

CHICAGO, IL. — Delivery company DoorDash is cutting out the middleman and has opened its own "digital" convenience store.

Convenience store operators have reported seeing DoorDash delivery workers shopping their c-stores and purchasing items to bring to customers for many years.

Picking up convenience store items proved to be so successful that the company formalized agreements in April to deliver items from major chains including 7-Eleven, Walgreens, CVS, and Wawa to help consumers during the COVID-19 shut-downs.

Now DoorDash has opened its own virtual convenience store, DashMart, where the company will stock and deliver items from its own inventory of over 2,000 SKUs from its own warehouses.

Under the program, warehouse associates will pick and pack an order made via the DoorDash app, and then DoorDash delivery workers will collect the order and deliver it to the customers. DoorDash predicts its service will be able to deliver DashMart items within 30 minutes of a customer making an order.

"DashMart is a new type of convenience store, offering both household essentials and local restaurant favorites to our customers' doorsteps," stated Andrew Ladd of DoorDash. "On DashMart, you'll find thousands of convenience, grocery, and restaurant items, from ice cream and chips, to cough medicine and dog food, to spice rubs and packaged desserts from the local restaurants you love on DoorDash."

"It's a bit like the express lane inside of a store, whether that store is a grocery store or a convenience store, or a pharmacy," noted DoorDash CEO Tony Xu. "Sometimes, you just need those things that either you forgot, or just need in high frequency."

DashMart is currently available to customers in Phoenix, AZ., Salt Lake City, UT., and Redwood City, CA., in the west as well as in Chicago, Cincinnati, Dallas, Minneapolis, and Columbus, OH. The company expects to roll out the program in coming months to additional cities including San Diego, CA.

Originally published in the October 2020 issue of O&A Marketing News.
Copyright 2020 by KAL Publications Inc.