NACS Convenience Leaders Exchange LATAM: Charting Latin America’s growth

International leaders convened in Buenos Aires, Argentina, to explore innovative service station concepts and discuss the latest trends and challenges of the region's fuel and convenience sectors.

More than 80 industry leaders from Latin America gathered in Buenos Aires, Argentina, to be part of the inaugural edition of NACS Convenience Leaders Exchange LATAM. The two-day event sponsored by Coca-Cola garnered international retailers and suppliers to explore some of the best-in-class examples of fuel retail sites in the country and engage in exciting discussions covering the latest developments.

On the first day, attendees were able to explore state-of-the-art service stations in and around Buenos Aires. These included examples such as YPF’s recently opened flagship site and Lion Place Cardales, winner of the NACS award for Best Convenience Store in Latin America. At each location, attendants experienced first-hand how these innovative proposals adapt to industry shifts while meeting local demands.

"When discussing foodservice, Ireland pops up; when exploring operational excellence, it is Asia, especially Japan. Latin America was always about alternative fuels, but that is changing. In the fuel-to-convenience retail-to-foodservice progression, Latin Americans tend to skip the 'convenience retail' and go straight to foodservice, which is now moving fast across the region,” explained Mark Wohltmann Director at NACS Global.

Henry Armour, President & CEO of NACS, leading the "Future of Convenience in LATAM" roundtable discussion — Mark Wohltmann Director at NACS Global

The transition to convenience

The second day centered on insightful presentations by industry leaders ¡ such as Henry Armour, President & CEO of NACS, who kicked off the conference program by tackling some of the most relevant industry issues around the world. While fuel remains a core business driver, companies are increasingly diversifying their offerings to generate revenue from non-fuel sources.

Such strategies include expanding foodservice options, offering convenience products, and providing other services such as coworking spaces, car washes, and more. In this line, Armour underscored the role of real estate in the retail landscape and highlighted the integration of "hot-desking" workspaces as a strategic opportunity. He emphasized its potential “particularly as a new business, not as an additional feature for free to attract people.”

Some of the top retailers of the region, including Brazil’s Ipiranga, and YPF, participated in a panel discussion on the future of convenience in Latin America. Representatives of the brands emphasized the importance of seeking differentiation through foodservice, which poses challenges for retailers with a large number of individual dealers, as consistency and quality of execution can vary greatly.

“Coffee is the backbone of our Full convenience stores’ proposal, catering to a diverse array of consumption occasions, from breakfast in the morning to work meetings, and on-the-go. Apart from being the leading coffee marketer in Argentina, we’ve also curated a line of branded products not only to bolster coffee sales but also to elevate overall sales figures, ensuring a higher margin for our dealers and delivering an enhanced customer experience,” exemplified Maite de la Arena, B2C Director at YPF.

Claudio Reboredo, Partner at FGC and event host

YPF's flagship service station — Claudio Reboredo, Partner at FGC and event host

The future of fueling

Decarbonization was another key topic discussed throughout the entire second day, with special keynotes addressing the alternatives in which a diverse region such as Latin America can achieve this goal. In his panel, Teofilo Lacroze, CEO of Mobility Brazil, Argentina and Paraguay at RAIZEN, showcased the potential of first and second generation ethanol as a way to extend the lifecycle of the liquid fuels industry.

“While we acknowledge the importance of all solutions as complementary, biofuels—especially ethanol—emerge as particularly inclusive solutions for Latin America. Generating an ethanol culture takes time and is a medium to long term work. It begins with studying blending packages' potential, tracking their evolution, and engaging in discussions about flex technology, which intersects with various industries," elaborated Lacroze.

On the other hand, e-mobility was discussed as a long-term solution for the future of mobility, due to the high investment in infrastructure needed for its development. Chile’s COPEC emerged as the most advanced player in this endeavor, as it aims to establish a business model that surpasses those of North Europe and California.

“Chile boasts a renewable energy matrix abundant in solar power, which aligns well with the integration of e-mobility. Additionally, an increasing number of fully electric vehicles are entering the market at competitive prices, catering to both B2B and B2C sectors. However, the greatest adoption is observed in the B2B segment, particularly in industries where the total cost of ownership (TCO) presents a compelling economic case," explains Francis David, Business Manager at COPEC Voltex.

Overall, the first edition of the NACS Convenience Leaders Exchange in Latin America provided valuable insights into the future of the convenience and fuels industry across the region. The event highlighted the importance of innovation, diversification, collaboration, and adaptation as companies navigate the evolving market landscape. In addition, the region's economic growth and increasing urbanization are creating favorable conditions for industry growth. In the words of host Claudio Reboredo, Partner at FGC: “Now is the time for Latin America to start thinking beyond the pump.”