Beer is still king at convenience stores, but spirits and wine are driving growth, Joe Sepka, director of client success of 3Tier Beverages, said May 9 at CSP’s Cold Vault Forum in Lombard, Illinois.
Using NielsenIQ (NIQ) data in the 52 weeks ended March 22, Sepka said dollar sales of beer versus a year ago dipped slightly to 0.7% in the c-store channel. Wine and spirits showed dollar gains of 7.7% in spirits and 9.4% in wine.
Sepka said inflation is still present, but that it is much less pronounced in recent time periods.
Impulse buys are down, Sepka said, and with the ongoing inflation that means people are less likely to casually grab a $10-plus six pack.
Among the top 30 fastest-growing brands, Sepka said 60% are ready-to-drink (RTD) beverages and non-alcoholic beverages, 20% are spirits, including mostly tequila and 20% traditional beer, mostly Mexican imports.
Looking ahead, Sepka offered a few predictions, including that imports will likely continue their dominance, especially Mexican imports. This will continue, he said, “unless macroeconomic shocks, like tariffs intervene.”
He also said domestic beer will continue to make up a big portion of volume but said craft will not return to “wild growth” but instead will be stable around local, premium and quality focused brands.
Turning to strategies for packaged beverages, Sepka said it is important to stop thinking in old category silos.
The old mindset is “beer goes here, wine there and spirits in the back,” he said. Instead, Sepka said it is important to adopt a new mindset.
He said shoppers buy for occasions, not categories and told retailers to organize their shelves to reflect refreshment, premixed and party-ready.
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