Wells Fargo’s Beverage Buzz c-store retailer survey finds hard sodas expected to drive the craft segment and low gas prices aiding consumer spending in store.
Wells Fargo Securities LLC recently completed its Beverage Buzz survey, polling beverage retailers representing more than 15,000 c-store locations across the U.S.
The survey showed non-alcoholic beverage sales at convenience stores were up 4.8% in the third quarter with help from the energy, bottled water and sports drinks categories. Alcoholic beverage sales up 3.3%.
“Craft beer and imports remained top-performers; however, retailers are particularly excited about ‘hard sodas.’ 2016 Will Be Year of the Hard Soda,” noted Bonnie Herzog, managing director, beverage, tobacco & convenience store research for Wells Fargo Securities LLC.
Some retailers feel lower gas prices are putting more money in consumers hands and helping to buoy beverage sales.
“Based on our survey, we estimate Monster’s c-store sales were up +7.1% in the third quarter of 2015, a sequential decline from the second quarter of 2015 (8% growth),” noted Herzog. After two quarters of distribution disruption following the transition to the Coca-Cola system, most retailers told Wells Fargo that service improved in the third quarter, helping sales to rebound.