NEW YORK -- Let's call it the quarter of mid-single digits, as most significant beverage brands in convenience stores and the major beverage categories saw growth in that general realm during the first quarter of 2016.
"Nonalcohol beverage sales were up 6.6% year over year in Q1, led by strength in sports drinks, bottled water and energy [drinks]," Wells Fargo Securities analyst Bonnie Herzog wrote in her latest Beverage Buzz survey of U.S. convenience-store retailers. Additionally, "alcohol beverage sales [were] up 5.0% year over year in Q1, led by imports and craft beer."
Herzog credits gasoline prices, which were down more than a dollar per gallon compared to the previous year for driving the increased beverage sales.
Based on the survey results, Wells Fargo estimated:
- Monster energy c-store sales were up 8.2% in the first quarter compared to the previous year.
- Coca-Cola Co.'s c-store sales were up 5.4%.
- PepsiCo's c-store sales were up 4.6%.
- Dr Pepper Snapple Group's c-store sales were up 5.4%.
- Beer importer Constellation Brands' c-store sales were up 9.2%.
Even carbonated soft drinks, long suffering from consumers' growing desire for healthier foods and beverages, grew sales 2% in c-stores, while retailers expect total CSD growth for the year to reach 3.6%, according to the survey.
"Our survey respondents expect non-carbs, sports drinks and energy to continue to lead non-alcoholic beverages," Herzog concluded, "while craft/import beers should still outperform within the alcohol beverage category."
Retailers anticipate sport-drink sales could increase 11.1% this year, while craft beer sales are expected to grow more than 22%.
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