NEW YORK -- Energy drinks may have been one of the biggest beneficiaries in convenience stores of the recent decline in gasoline prices, according to one beverage analyst. But with prices inching up again and the ongoing delivery transition of Monster energy drinks from beer distributors to the Coca-Cola system in some markets, the beverage category has seen one of its slowest growth periods in months.
"The energy category had relatively soft dollar sales growth of +5.6%" during the 4-week period ending March 14, 2015, according to a research report by Bonnie Herzog of Wells Fargo Securities. The single-digit growth was "driven largely by weakness from Monster, which generated very soft +2.1% dollar sales growth (and +9.3% for 12-weeks ending March 14), driven by overall +2.3% equivalent unit volume growth and -0.2% average equivalent pricing growth."
This pales in comparison to Monster's double-digit dollar growth in recent months.
"This represents the softest growth Monster has seen in this channel, which led to Monster losing both dollar and unit share this period, which we find somewhat concerning," Herzog said. "We believe this could be at least partially attributable to short-lived disruptions related to the transition in distribution from A-B to Coca-Cola, as well as lapping a tough [comparable period]."
The slow period for Monster extends Red Bull's return as dollar-share leader in c-stores. In January, Red Bull sales passed Monster in terms of dollar share for the first time since August 2014. This month, Red Bull held 38.9% share of dollar sales in c-store, while Monster owned 36.7% share.
Meanwhile:
- Total carbonated-soft-drink dollar sales in c-stores were down 1.4% for the four-week period (and +1.5% for prior 12 weeks), driven by average equivalent price growth of +3.4%, offset by equivalent unit volume declines of -4.7%.
- Beer dollar sales in the channel were down 1.2% (and +2.1% for 12 weeks) driven by equivalent unit declines of -3.2% and pricing growth of +2.0%.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.