Small-size convenience-store operations that need to make smart decisions around the ever-expanding cold vault are familiar with one sustained trend: The energy drink category is big—and only getting bigger.
Ongoing strategic and tactical aid from wholesalers and suppliers is critical to right-size sets, such as how many cold vault doors to allot to energy drinks, which command more space capacity due to the growth of new arrivals and overall category innovation.
With space at a premium in smaller stores, space-efficient energy shots placed at the front counter can be a boon to their energy merchandising fortunes.
Read forward for five merchandising solutions to better curate your energy drink department.
Double down on recruiting energy shot users
Jason Tucker, president of Nappy Boy Dranks, which owns Good Game energy shot brand, advises retailers to craft a merchandising strategy around need state.
“Whether someone is creating, driving, working a shift, studying or traveling, people want to stay focused, productive and perform at their best,” Tucker told CSP. “Those moments aren’t limited to one demographic consumer.”
The need-state approach is the reason “we’re seeing interest (with shots and cans) from a much broader group of consumers than the traditional energy shot category,” he said.
Tucker said that his team is also seeing consumers who might have never considered an energy shot before—because they associated the category with overly aggressive stimulation or products that simply didn’t taste good—becoming more interested in the category.
“We built Good Game to offer a smoother experience with flavors people actually enjoy,” he said.
Capitalize on healthy energy
The category is shifting from “more energy to helping people find the motivation to perform at their best, and that’s where we want Good Game to lead … and retailers should too,” Tucker said. “I think consumers are becoming much more intentional about energy and how that makes them feel. A decade ago, the conversation was almost entirely about caffeine. Today, it’s about function. People want energy, but they also want focus, consistency and to feel good after they use the product.”
Good Game is formulated around nootropics that avoid the trap of “simply chasing higher caffeine levels,” he said. “Our goal has never been to create the strongest energy shot. It was to create one people could rely on day after day.”
Assess, maximize hybrids
Hitting the market recently has been some groundbreaking energy formulations such as Juice Monster from Monster Energy, Bum Energy Root Beer (a carbonated soft drink-esque position), and Alani Nu Cotton Candy (energy meets indulgence). Might these varieties promote inspiration or lend confusion? Pat Determan, owner of Lyons Filling Station, Clinton, Iowa, said that if retailers deftly communicate what these hybrid arrivals represent through spot-on in-store merchandising, that can go a long way to drive the offer—and inspire, not confuse.
“Juice Monster has been a very popular option to bring new spice to energy and add incremental sales,” Determan said. “Our customers might buy a juice Monster and a traditional Monster energy variety together. All total, Determan had a cold vault consisting of 11 cooler doors, five alone dedicated to energy.
Think cross-promoting energy toward food
Seth Carter, category manager of packaged beer, wine and beverages for Oklahoma City-based OnCue Express, acknowledges that “established brands Red Bull and Monster continued to drive growth through new flavor launches and expanded zero-sugar offerings, while newer brands like Bum Energy stand out with fun, nostalgic flavors, such as root beer. Alani’s limited-time flavor drops consistently performed well and generated urgency at shelf.”
Carter said the energy category is packed with several ancillary advantages, including cross-promoting drinks toward foodservice. “One of our strongest-performing bundles paired Celsius with our fresh, made-in-house pizza slices,” Carter said. “That combination drove double-digit growth for both pizza slices and Celsius.”
Make efforts to secure exclusive deals with brands
Although more difficult for a smaller-size retailer to pull off, notching exclusivity arrangements with energy brands can go a long way to establishing an inside track on a competitive advantage. Larger chains have forged exclusivity partnerships with brands such as Monster, Red Bull, C4 and more, designed to offer one of the brands’ new limited-time flavors.
Smaller retailers might have an “in” with local or regional brands, presenting a more practical opportunity. One beverage analyst told CSP that loyal c-store customers “want to feel special by being first to the scene. Add to that the retailer’s ability to entice a fuel consumer to stop at their corner rather than a competitor’s to snag that drink and snack.”
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