What specific non-adult beverage sub-segments/particular brands proved to be impactful to drive the fortunes of the category, and why? Number one was the growth of Hispanic carbonated sodas. We have a lot of stores located in high Hispanic areas. In the past, we’d not put much emphasis on these brands to the degree they warranted based on customer desires, in order to best serve this demographic. We performed better, more precise targeted marketing and dug for ideas: In April 2024, we put more merchandising muscle around brands like Vita Coco and C2O Coconut Water, and sparkling water brands. Coconut water is a huge staple [in South and Latin America]. It’s super hydrating and better for you.
In addition to these, what were some other beverage sub-segments that had high velocity?
Liquid Death (canned water with a tagline “murder your thirst”) is crushing it. It's the No. 2 SKU in the c-store within the flavored seltzer/sparkling/mineral water segment. It’s thriving across both dollars and units—and I look first and foremost at unit performance as a metric. In the energy drink department, we’re bullish on Bum Energy—it’s going to be massive in the c-store. The point of difference is geared to the workout guy, and I predict customers will flock to it. It’s better-for-you energy … raw nutrition. We did a test in December in Texas, and it jumped to No. 3. in our sets.
What have been one or two of your most-vexing challenges in 2024 and into this year pertaining to the category?
Navigating space in our smaller stores. Ensuring we have variety, while maintaining days of supply on the leading brands. Being tied to contracts negotiated by a previous category manager, as this was my first full year in the category.
What consumer purchasing trends from last year are you looking to cultivate even further in 2025?
Expanding the Hispanic selections and growing coconut water.