The5For

Welcome back to The 5 For, your quick dive into the most interesting happenings shaping the convenience store world! Today, we’re cracking open a cold one that won some awards, checking in on a major operator’s strategic shifts, decoding what the youngest shoppers want digitally, navigating the latest twist in fuel sales, and looking at changes at the regulatory level for tobacco. Let’s get into these 5 news stories from yesterday, April 30th!

1. Raising a Glass to Award-Winning Beer

Who knew a convenience store’s own brew could be award-winning? Stewart’s Shops, known for its unique dairy case and food-service offerings, has added another feather to its cap by earning private label honors for its beer. Specifically, their Mountain Brew beer brand is gaining recognition outside the convenience store channel. The Wall Street Journal recently named Mountain Brew as a private label beer to try, calling it “a refreshing new recipe”. They noted that Stewart’s is among a growing number of retailers “that work closely with craft breweries to produce compelling beers that deliver both value and taste”.

The Upstate New York-based retailer teamed up with craft brewer Paradox Brewery to bring back Mountain Brew beer earlier in 2025 after a five-year pause. Paradox Brewery, located in North Hudson, N.Y., is dedicated to brewing innovative, high-quality beer. According to Stewart’s marketing director, Bill Majewski, the secret to their early success is finding a way to produce a fresh and local beer that also has a great taste and great value for customers. Stewart’s Shops President Gary Dake added that Mountain Brew is a great example of a fun, nostalgic product, and perhaps the world could use a little more fun and nostalgia.

For retailers, this highlights the potential in developing strong private label programs, especially through partnerships with local craft producers. It’s about building customer loyalty and creating differentiated offerings that go beyond the usual fare. It shows that it’s not just about convenience anymore; it’s about quality and surprising value, even in categories like beer. Mountain Brew is available in 19.2-ounce cans at Stewart’s Shops for $2.19 per can or two for $4.

2. EG America’s Strategic Shift

It looks like EG America is making some significant moves, according to recent interviews with their leadership. The company, which operates over 1,500 c-stores across 30 states under 10 different chains (including Cumberland Farms, Speedway, and more), appears to be adjusting its course. Since John Carey became President and CEO in late 2023, EG America has completely overhauled the rest of its executive team, bringing in new COOs, CFOs, CMOs, and VPs across various departments. The company’s parent, U.K.-based EG Group, also named its first-ever American CEO to support these changes.

A primary driver behind this executive overhaul and strategic shift is the goal to unify its many c-store banners. While rebranding stores everywhere isn’t the goal, they want to create “one offer” by pulling the best elements from all their brands. CEO John Carey stated that they brought in high-caliber people to develop, implement, and change the culture into a more forward-thinking, customer-focused culture of one organization. COO Elizabeth Pierce acknowledged that they are “not ahead of the game right now in terms of the industry” but see “more upside for us”.

Key initiatives underway include:

• Enhancing the food program: A new VP of foodservice is building her team and innovating, leveraging the company’s culinary center. They are also reinvesting in their over 50 QSR locations with major brands, planning to expand in this area. They aim to find the right balance between made-to-order fresh food and grab-and-go offerings based on market-specific factors like location, demographics, and footfall.
• Overhauling the loyalty program: The previous program was strong but focused mainly on fuel. The new focus is on having an “intimate relationship with the consumer,” going on a journey with them, and using data to predict future wants. CEO Carey emphasized, “I want at least 20% of our gross profit in three years’ time to come from products and services we do not offer today”.
• Improving value and empathy: Carey highlighted that the biggest issue for consumers is value for money. He stressed the need for better value and services, redefining loyalty as the retailer being loyal to the customer, not just the other way around. He wants to ensure the stores show empathy and emotional intelligence to the community and customer base, working with suppliers to offer promotions based on what customers need most.
• Looking at M&A strategically: While they have sold stores in recent years, EG America is definitely looking to grow, aiming for a “dynamic portfolio”. They want to grow rapidly on the East Coast of the U.S., both organically and inorganically.
• Keeping an eye on what large operators like EG America are doing provides valuable insight into the broader trends and challenges facing the industry. Their decisions can influence everything from supplier relationships to competitive landscapes.

3. Catering to Gen Z’s Digital Expectations

Generation Z is rapidly becoming a major consumer group, and their expectations for digital experiences are high. Ranging from 13 to 28 years old, they are regarded as the most connected, influential, and largest generation to date, with a projected global spending power of $12 trillion by 2030. Experts believe they will be the “purest” omnichannel shopping generation.

For convenience stores and grocers, this isn’t just about having an app; it’s about seamless omnichannel experiences. Gen Z wants both an in-store experience and digital capabilities to enhance it, whether for product discovery, organization, or finding deals. The quality of a store’s app and website is just as important as the brick-and-mortar store itself. More than 50% of consumers across retail sectors are engaging in pre-trip planning behaviors, and this is expected to grow with the “digitally native consumer cohort” that is Gen Z.

Grocers and c-stores need features that support a “seamless, non-clunky, digital-to-physical experience”. This includes:

• Investing in user-friendly mobile apps and robust e-commerce platforms.
• Offering integrated loyalty programs and digital promotions. Coupons are not the preferred approach; digital circulars and loyalty apps are better for Gen Z price concerns.
• Providing features like list-building capabilities, in-store item location, and tracking what’s been added to a digital cart. In-store mobile device usage, particularly retailer apps, is increasing.
• Ensuring product availability. If an app says a product is in stock, Gen Z expects that promise to be met. Availability builds loyalty.
• Leaning into authenticity. Gen Z values social and cultural values and authenticity. This can be displayed through deep ratings and reviews, as they pay attention to user-generated content and are influenced by their peers.
• Leveraging social media. Social media is a major source for product discovery and recipes. While some products are bought directly on platforms like TikTok Shop, two out of five consumers bring this inspiration in-store, expecting to find products they saw online on the shelves.

C-stores that want to attract and retain these younger customers need to prioritize digital transformation, offering options like mobile ordering, delivery partnerships, and frictionless payment solutions. Ignoring these digital demands means missing out on a significant and growing demographic.

4. The Latest on E15 Fuel Waivers

Here we go again with E15 fuel waivers. The U.S. Environmental Protection Agency (EPA) recently issued an emergency fuel waiver allowing the sale of E15 gasoline nationwide this summer. E15, a blend of 15% ethanol and 85% gasoline, can already be sold year-round in some states. However, it’s typically restricted in many areas during the summer months (June 1 to September 15) due to environmental concerns over smog.

Waivers are often issued to help address supply disruptions or high fuel prices. The EPA’s decision was made in consultation with the U.S. Department of Energy due to ongoing issues with gasoline suppliers. The EPA stated the waiver will provide families with relief at the pump by increasing fuel supply and ensuring a variety of gasoline fuel blends from which consumers can choose. This emergency waiver goes into effect when terminal operators would otherwise no longer be able to sell E15 in some areas. It will initially remain in place through May 20, the maximum allowed under the Clean Air Act, but the EPA expects to issue new waivers to extend it until the “extreme and unusual fuel supply circumstances are no longer present”.

The EPA is also issuing an emergency fuel waiver for E10 (regular gasoline) in response to requests from governors in seven states: Illinois, Iowa, Minnesota, Missouri, Nebraska, South Dakota, and Wisconsin. This waives provisions that would have made E10 in those states meet a more stringent standard than conventional gasoline elsewhere.

For convenience store operators with pumps, these waivers can impact fuel sourcing and pricing strategies. For consumers, it means continued access to E15, which is often a slightly cheaper option at the pump. While waivers provide short-term flexibility, the ongoing debate and uncertainty around year-round E15 sales remain a point of discussion for the industry and policymakers.

5. Uncertainty at the FDA’s Center for Tobacco Products

News of mass layoffs at the FDA’s Center for Tobacco Products (CTP) raises questions about the future of tobacco regulation in the U.S. Dozens of staffers, including the Center’s director (Brian King), have been placed on administrative leave. The CTP is responsible for carrying out the Family Smoking Prevention and Tobacco Control Act of 2009, which places tobacco under FDA authority.

This move has been met with both positive and negative criticism.

• A group of Democratic senators expressed concern, stating the cuts risk undermining progress in reducing tobacco use, potentially leading to more youth use, fewer quits, illness, and death. They also warned that eliminating CDC’s Office on Smoking and Health (gutted amid HHS layoffs), which works closely with CTP, would deprive states of dedicated federal funding for tobacco prevention and cessation programs.
• Tobacco insiders and convenience store operators see the cuts as an opportunity for the agency to reset. Lonnie McQuirter, a c-store owner, criticized former Director King for focusing on high-profile speaking engagements and political maneuvering rather than the core mission of keeping products away from youth. He argued that illicit vaping devices have inundated the market under King’s watch, indicating deprioritized enforcement against black-market operators. McQuirter also felt CTP unfairly blamed the convenience store industry (which has a long track record of responsibly retailing age-restricted products) rather than partnering with them. He believes a reset should prioritize rebuilding a collaborative framework with convenience retailers.
• The Vapor Technology Association (VTA) called King’s removal the “first step in correcting the broken mindset” that has “crippled” CTP. They said the next step is fixing the “broken regulation” (the PMTA process) that allowed for “politically motivated decisions” that haven’t saved lives. VTA Executive Director Tony Abboud called the PMTA process “burdensome, onerous,” and stated it has not served the public’s or industry’s interests.
• Elizabeth Hicks of the Consumer Choice Center highlighted two key problems: the backlog of PMTAs for e-cigarettes and nicotine alternatives (citing the 5-year delay for Zyn PMTA approval despite a stated 180-day timeline) and the growing illicit market. She argued CTP’s missteps in setting up the legal market through the PMTA process unintentionally “emboldened the illicit market”. She criticized CTP for forming a task force with other agencies to combat the illicit market, calling it a “band-aid on a situation they created” and a “waste of user fees”.

Significant staffing changes at CTP could potentially impact the pace of regulatory reviews, enforcement actions, and the development of new rules. For convenience stores, which are major retailers of tobacco products, changes at the CTP can have direct implications for the types of products they can sell and the regulations they must follow.

Tobacco manufacturers and suppliers see the transition as an opportunity for the agency to operate more efficiently, fairly, and transparently with updated priorities that better promote public health. They suggest critically reviewing the Reagan-Udall Foundation report, which validated many criticisms of the agency’s priorities, PMTA review process, and transparency, and contains recommendations for improvement.

Combating the illicit market is a critical looming issue for the new leadership. This market targets youth and undermines potentially reduced-risk products for adult smokers. Suggestions from the industry on how CTP can clean up the marketplace include:

• Improving the product application review process to establish a robust market of authorized products.
• Working with other agencies (like DOJ, DEA, ATF, CBP) and leveraging public-private partnerships for information sharing and innovative solutions.
• Speeding up product authorizations to provide legal alternatives.
• Targeting major distributors and importers of illicit products.
• Working with CBP and law enforcement to block illegal imports.
• Publishing a clear, real-time list of authorized products and products with pending PMTAs for retailers and regulators.

Rebuilding trust is also essential, as CTP’s credibility has been challenged by courts, Congress, public health groups, and the tobacco industry. A reboot could help rebuild trust through better stakeholder engagement and a willingness to evolve. This includes better aligning regulatory decisions with broader harm reduction strategies, especially for adult smokers seeking alternatives to combustible cigarettes.

It’s worth noting that Politico reported some affected FDA staffers were asked to return to work temporarily until June 2, a decision HHS said was focused on ensuring a seamless transition and minimizing disruption. However, former FDA Commissioner Robert Califf saw this as potentially showing “a competence problem or a complete disregard for the dignity and well-being of this vital workforce”.

Critics like the Campaign for Tobacco-Free Kids argue the cuts conflict with stated commitments to reduce chronic disease and protect children’s health. They point out that the center is funded by user fees paid by the tobacco industry, so the cuts won’t save taxpayer money.

The situation warrants close monitoring to understand the potential impact on the tobacco category for c-store operators. Critics on all sides can agree on one thing—they are watching the FDA’s next move with tobacco.

The Bottom Line

There you have it – 5 key topics shaping the c-store landscape yesterday. From private label triumphs to major operator strategic shifts and regulatory uncertainty, the industry continues to evolve rapidly. Understanding Gen Z’s digital demands and the latest fuel waiver news are also crucial for staying ahead. Stay informed, and we’ll catch you next time for another round of The 5 For!