CORE
#Sure.
So 7-Eleven, it is really a unique customer and there is a lot of IT interface between 7-Eleven and Core-<UNK> so we have been working diligently on that for the last six months.
We have in the past probably the past three or four weeks, we have been running test orders and actually delivering product to their stores to ensure all those interfaces are working correctly and happy to report they are.
We are having, we are changing the divisions that are not 6 day a week operations to six day a week operations in the next month so we will be prepared for that.
We have weekly calls among our ---+ internal calls among our Core-<UNK> personnel.
As we prepare we put staffing plans in place.
We have hiring, calendars when people have to be brought on board and hired and trained.
And then the other big piece of this is we are in process constructing the new building in Las Vegas so we anticipate that building to be operations in the June and fully operational by July which will be two to three months prior to 7-Eleven.
So and then of course buying the numerous trailers we need for the business we have already ---+ those are being built as we speak and will be ready.
So we have taken really the playbook that we used when we brought on Murphy we have taken that and been following that as we are with 7-Eleven definitely the complexity of the IT has caused us to really start much earlier in the process.
But we are excited.
Everything is going well.
7-Eleven is pleased by the performance we have conference calls with the 7-Eleven team as we did with the Murphy team and we think that is really critical to a successful onboarding.
I think that we really, we still I mean we do have a small market share and so even with acquisitions, we haven't captured the market where someone would say they own the market so that hasn't occurred.
I think that consolidation is going to continue to happen slowly and really there is a tipping point, decisions are made by different companies as to when is the right time to sell and it varies by company.
But I think there are more opportunities out there and I think that we don't have I don't think any customer or any wholesaler has a large enough market share combined with ours that there would be issues from an FTC perspective.
I think that Scott McPherson developed a relationship with the Pine State folks over the years.
I think that when they made an internal decision that maybe now is the right time, maybe they want us to sort of sell their convenience part of their business that Scott was there with them.
And I think in my discussions with the folks at Pine state that they saw us as the best partner and the way we go to market when we are acquire a company it is a standalone division.
All of the employees are hired.
The customers are kept and it really just continues to run as is except now under the Core-<UNK> family.
So I think that helped in their decision-making process on negotiating a deal with Core-<UNK>.
We have seen some pockets of regional aggressive, more aggressive than normal competition but really nothing yet that really would say wow, there is a war going on or there is really someone tried to go after our business.
We haven't seen that.
Not to say that it is not.
But so far it hasn't been as loud.
And I think the other thing too is I think we've done a really good job with our customers on renewing our contracts prior to the Murphy announcements so I think that sort of helps us from that perspective.
You mean on the cartons, the same-store carton sales.
I've got to believe it is still the economy is still strong, I think that if you talk to the folks at the tobacco companies, I think people are still willing to spend any extra money they have from tax savings or from the gasoline price savings, they are willing to buy cigarettes.
Maybe they are not using the e-cigarettes as much and so they are also trading up and buying the premium cigarettes versus the generic cigarettes.
So I think we are still seeing those two or three trends, macro trends, economic trends that are driving that.
But I also think that we worked really hard with our customers and we serve some best in class large chain retailers but I think that they attract more customers into their stores.
I like to say that some of our core strategies with the focus marketing initiative and vendor consolidation in fresh is helping our customers increase their foot traffic.
I don't have any empirical evidence but gut feel tells me that is happening.
We don't do a lot of business in Hawaii so I don't have good data from Hawaii.
I think that definitely in California it is way too early to tell.
I think in discussions and some observations from the tobacco companies I think a couple of things that they expect is one, is that the current smoking trends may not be impacted to a great extent.
So people that are smoking today are probably going to continue to smoke and if you are 18 you are probably going to continue to smoke.
You just have to find a different way to get your cigarettes.
I think what the real goal and the purpose of is to really get the younger smokers to not start smoking and I think that is going to be more of a long-term effect on the overall cigarette consumption.
Maybe at the end of the third quarter on our third-quarter call, we will have a little bit better indication from what the law is going to do, that will be three months in from the June 9 start date.
But it is really too early to tell and I don't think really anyone has an idea because again if you think about it, all the cigarette companies have been focused on adult smokers.
At the time adult was considered 18 but that has always been their focus and so I think we will just have to wait and see what the end is going to be.
You are talking about the parent company in Japan.
I don't think so.
I haven't heard any rumblings, I haven't seen any changes within the US at least the structure with Joe DiPinto still in in charge of the US operation.
Haven't seen, don't know.
