The Big Comeback

22 // End User THE BIG COMEBACK Facing the highest energy costs in the world, leading Australian independent retailer Drakes Supermarkets is more committed than ever to its CO2 transcritical future. ― By Devin Yoshimoto & Caroline Rham 1 July 2017, South In a retail sector where profit margins are already Australia made razor-thin, fluctuating energy costs can have a On global headlines. On dramatic effect on a supermarket’s bottom line. that day, the state overtook Denmark for the dubious Few understand this better than Drakes honour of having the world's most Supermarkets, which currently operates around expensive electricity, reported the 60 stores in the states of South Australia (SA) Australian Broadcasting Corporation. and Queensland (QLD). The ABC article detailed energy price The company, founded by Roger Drake in 1974, hikes announced by Australia’s three began as a single three-lane supermarket on largest energy retailers in the middle Henley Beach Road in Torrensville, SA. Today, of last year. Drakes Supermarkets is the largest independent grocery retailer in Australia, with an annual turnover of over $1 billion. Drakes' Foodland store, North Haven Accelerate Australia & NZ // Summer 2018 End User // 23 Accelerate Australia & NZ travelled to the head office of Drakes Supermarkets in Torrensville to meet Bob Soang, the firm’s general manager. Speaking eloquently about their journey so far, Soang – who boasts 38 years of experience at Drakes – outlined the most important lessons learned and set out why they see natural refrigerants as the future of Australian retail. AHEAD OF THE TRANSCRITICAL CURVE Drakes’ history with CO2 dates back to 2007, when the retailer became the very first to install a transcritical CO2 system in a southern-hemisphere supermarket. Soang, who oversaw the installation of the system at the time, describes what motivated the decision. “As we’re the largest independent, we've always felt that there is some onus on us to do some of the pioneering,” Soang says. That first system was commissioned in December 2007 at a Drakes Foodmarkets store in Angle Vale, north Adelaide. “We got a small government grant to help, because the CO2 technology was quite a bit more expensive than the more traditional systems,” reflects Soang. At the time, in an attempt to fight greenhouse gas emissions, the Australian government had made We will available a $2 million subsidy fund to evaluate new technologies in the “continue with commercial refrigeration sector. CO2 because The subsidy was issued under the Faced with the challenge of reducing government’s Greenhouse Gas I do think the operating costs in today’s climate Abatement programme and administered of rising Australian energy prices, by the Green Cooling Council. [synthetic] the company is turning to natural refrigerants to carry it into the future. “Additionally, the government had made gases’ lifespan a decision that it was going to keep Drakes is poised to open three new taxing the carbon gases to the point is coming transcritical CO2-based supermarkets. where you really had to look for some It expects CO2 transcritical to save other option,” Soang explains. to an end. upwards of 20-25% on running „ costs compared to stores fitted with “And that's exactly what we did.” — Bob Soang, traditional HFC-based systems. Drakes Supermarkets The combination of these factors The stores, located at Goodwood led Drakes to move forward with the Road, Wayville (SA), Stebonheath transcritical CO2 installation. The result? Road, Penfield (SA) and Ardrossen Road, Caboolture (QLD), are due to “It was a disaster,” laughs Soang. “We open by the end of February 2018. had all sorts of problems with it.” Summer 2018 // Accelerate Australia & NZ 24 // End User DRAKES GOODWOOD FOODLAND O n e o f D r a k e s ’ t h r e e n e w C O 2 S oang b e li eves th e l eve l of “The [transcritical CO 2 system] transcritical stores is located in technological development of was pioneering – so with it came Wayville, an inner-southern suburb of transcritical CO2 systems simply issues,” he explains. Adelaide. made their adoption at that time too premature. “From what I've seen now, we're T he store will be fully se r viced starting to realise that maybe by a transcritical CO 2 plant and is H e i s n o n e t h e l ess k e e n t o we were just ahead of the curve, scheduled to open in February 2018. s tr ess th a t t h e i s s u e s t h e y that's all.” experienced did not take away Store name: from the fact that the system THE RETURN OF Drakes – Goodwood Foodland was amazingly efficient. TRANSCRITICAL Location: Witnessing the potential of CO 2 Goodwood Road, Wayville, SA never forgotten how quick the at first hand convinced Soang pull-down was – and I'm talking to move forward with subcritical No. of transcritical racks: 2 about when we actually started CO2 cascade systems for the next the cases up. The power of that ten years, building confidence LT rack capacity: 34.884 kW CO2 transcritical system was able and experience in using the to reduce the temperature inside technology along the way. LT operating temperatures: the cases so quickly”. -28°C to -33°C "I had never seen anything like the systems work, we were quite No. of LT display cases: 12 it before." happy to roll them out one after the other.” MT rack capacity: 161.116 kW P r o b l e m s s t e m min g f r o m poor design and technology Since 2007, Drakes has installed MT operating temperatures: eventually led Soang to swap subcritical CO2 cascade systems -6°C to -10°C the system out, but ever since at 14 store locations. he has been convinced that CO2 No. of MT display cases: 37 is the way forward. “When we first started with CO2 and it was transcritical, it was a Case supplier: Arneg “ I n t h e e n d , I r e p l a c e d t h e problem,” Soang admits. transcritical system and went Contractor: AJ Baker back to the more traditional CO2 “But from that day onwards, cascade system,” Soang says. we've had no problems with the Accelerate Australia & NZ // Summer 2018 End User // 25 The savings on the technology. The [subcritical] CO2 “Now I know that the transcritical systems have worked brilliantly.” systems will be even more efficient running costs and the than the current cascade systems “ Not only were the subcritical CO2 that we've been using,” he says. operating efficiencies systems running reliably, but they were also delivering 10-15% savings “They are still CO2 but just more are such that on running costs compared to Drakes’ efficient CO2, because the technology standard HFC-based systems. is more efficient.” [CO2 transcritical is] In the intervening years, Soang has Indeed, it seems that the company’s where the future is been closely watching the level of original experiment with transcritical transcritical CO2 technology improve CO2 did not discourage Soang, but going to take us over rapidly year on year. instead gave him the confidence to return to the technology once it had the next few years. The improvements in technology and matured. „ design, combined with the promise — Bob Soang, of even further energy savings, have “The efficiencies that I saw with Drakes Supermarkets driven Drakes to take a second look at transcritical at Angle Vale all those transcritical CO2. years ago – I was always impressed with how efficient the system was,” “Now, I've got to say, transcritical has says Soang. raised its head again and there is a lot more modern technology that's now "The problem was that the design making us reconsider our position on and the technology wasn't right at ABOVE transcritical CO2.” that time." Mark Turner, AJ Baker & Sons (left) and Bob Soang, Indeed, Drakes has already taken Drakes Supermarkets (right), action, with the scheduled opening of Goodwood store the three new transcritical CO2-based stores. Soang is expecting a further LEFT 10% energy savings. Drakes supermarket in Owen Terrace, Wallaroo. Photography by: Peter Barnes Summer 2018 // Accelerate Australia & NZ 26 // End User 1/ 2/ Accelerate Australia & NZ // Summer 2018 End User // 27 CO2 CABINETS THE TIME IS NOW In the new Drakes supermarkets, the As Drakes moves forward with its plans for cabinets in use on the shop f loor transcritical CO2 in 2018, Soang hopes that the play a crucial role in increasing the experience will serve as an example for other energy efficiency of the CO 2 trans- independent retailers in Australia. critical system. H e u n d e r s t and s t h e c h a l l e n g e s f a c i n g small companies in considering investing in transcritical CO2 technology. "Obviously the cases have been moder- “To spend $1 million, $2 million, $3 million on a nised; you get cosmetic changes. But with cosmetic changes come techno- operator or a small multi-store operator, that's a logical advancements too," says Bob fairly serious risk that you put on your balance Soang, Drakes’ general manager. sheet,” he says. "A lot of our cases now have glass Nevertheless, Soang believes that now is the doors. We've obviously always had right time to be investing in good equipment glass-door freezers but [now we use] that is future-proof and will save money in the glass-door dairy cases." long term.

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