Beverages

Beverage Sales Growth Slows for a Fourth Quarter

Overall trend weighs on several healthy categories

NEW YORK -- Bottled waters, sports drinks, energy drinks and craft/import beers continued to outpace other beverage categories in the third quarter of 2016, according to a survey of convenience-store retailers conducted by Wells Fargo Securities.

Total nonalcohol beverage sales were up 3.9% in c-stores during the quarter, according to the Beverage Buzz survey, with several retailers citing damp weather, including Hurricane Matthew, and the Colonial Pipeline spill as slowing c-store traffic and beverage sales.

The results continue a yearlong downward trend in c-store beverage sales growth in the survey (see chart below).

During the third quarter ...

  • Carbonated-soft-drink sales grew 2.0% during the quarter compared to the previous year, with flavored CSDs up 4.1%.
  • Energy drinks grew 6.0%.
  • Sports drinks were up 8.1%.
  • Bottled water saw growth of 8.2%

Alcohol beverage sales were up 4.5% in the third quarter.

  • Domestic beer sales grew 2.8%.
  • Import beer was up 14.9%.
  • Craft beer grew 11.1%.
  • Wine saw sales improve 8.8%.

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