From a price and brand positioning standpoint, the middle-level beverage segments are losing sales to premium on one end and value-based, private label on the other. Convenience stores have a chance to capitalize on growth by integrating their own store-brand creations or leaving efforts to third-party wholesale-distributors.
Private label products aid consumers during high inflationary times but also drive internal control for c-store chains on everything from what the finished product will look like, to price-point establishment and supply chain efforts.
More retailers, particularly ones with scale, have become more immersed in proprietary product development across categories, including packaged beverages.
Irving, Texas-based 7-Eleven Inc., for instance, recently redesigned its 7-Select Replenish line of hydration beverages. Launched in 2019, the line focuses heavily on plastic waste reduction, sustainability and transportation efficiency.
Redesigned bottles are expected to reduce plastic waste by more than 104 metric tons each year. By optimizing the packaging, 7-Eleven can fit more cases per pallet, reducing the number of trucks required to keep stores supplied by nearly 25%, said Nikki Boyers, vice president of private brands and emerging brands at 7-Eleven.
- 7-Eleven is No. 1 on CSP’s 2025 Top 40 Update to the 2024 Top 202 ranking of U.S. c-store chains by store count. Watch for the full 2025 Top 202 ranking in the June issue of CSP magazine and in CSP Daily News.
Private-label dollar sales gains for beverages are less impactful than other non-beverage categories—think paper product. But private label continues to be a vital cog in the success of a store’s category management plan.
“Lower penetration does not mean no chance for store brands to succeed. In fact, private label is growing in some beverage segments you would not expect,” said Cara Loeys, principal, client engagement of CPG for Chicago-based Circana.
Private-label development can be powered up when positioned as a limited-time offer. One example is Rutter’s, a privately-held chain operating 87 locations in Pennsylvania, Maryland and West Virginia, which re-released its Golden Stout beer in November.
Rutter’s is No. 78 on CSP’s 2024 Top 202 ranking of U.S. convenience-store chains by store count.
Crafted in partnership with Rusty Rail Brewing, the beer comes featured a distinctive holiday twist and was available for a limited time. “Our team is very excited to reintroduce this winter beer,” said Adam Long, senior category manager at York, Pennsylvania-based Rutter’s. “This Golden Stout, with its captivating fusion of cherry and white chocolate, embodies the essence of the season.”
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