Dan Dolgner, CEFCO's senior vice president of marketing, said during the 2010 CSP Cold Vault Summit in Dallas last week that his Nestle Waters North America representative suggested adding a second multipack SKU, specifically a case of Nestle Pure Life water, to complement the [image-nocss] Ozarka regional package already sold in CEFCO's 125 stores.
After some initial hesitance, Dolgner made the move on a test basis, dedicating 10 square feet of floor space to a multipack display, with Ozarka priced $4.99 a case and Nestle Pure Life $3.99.
With the test of the dual multipack strategy in 2009, the test store saw multipack sales nearly double from 21,903 cases in 2008 to 42,518 cases in 2009 (22,370 Ozarka; 20,148 Pure Life), an increase of 94%.
Meanwhile, concern about the extra multipack's push affecting single-serve drinks was found unnecessary, as single-serve bottled water grew slightly from 32,238 units in 2008 to 32,964 this past year, an increase of 2.3%.
"We're stuck on this strategy going forward," Dolgner told the summit attendees.
Temple, Texas-based CEFCO Convenience Stores operates 124 locations in Alabama, Mississippi and Texas. CEFCO's parent company is Fikes Wholesale Inc., a multi-branded petroleum products marketer.
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