NEW YORK -- Nearly 60% of convenience store retailers said they expect energy drinks will surpass carbonated soft drinks in terms of store sales as soon as 2015, according to a recent retailer survey conducted by Wells Fargo Securities.
Well Fargo surveyed retailers representing about 10,000 c-stores across the country to get a sense of beverage sales trends for the third quarter of 2012 and future sales trends. In the survey, 59% of respondents indicated that energy drinks could surpass CSD sales by 2015. Moreover, multiple respondents said energy drinks already generate more sales in their stores that CSDs.
Meanwhile, despite higher gasoline prices, a strong majority of convenience store retailers reported beverage sales improved in the third quarter of the year by an average of about 8% compared to Q3 2011, according to an Equity Research note from Wells Fargo Securities.
“The vast majority (92%) of our survey respondents indicated that sales of nonalcoholic beverages increased year over year during Q3,” according to the research report.
This came even as 62% of respondents indicated that gasoline prices had a negative impact (54% slightly worse and 8% much worse) on beverage sales.
On the positive side, however, three factors benefited retailers’ bottom lines:
- 54% of respondents said the impact of weather on beverage sales was better in Q# 2012 that the previous year (31% much better and 23% somewhat better).
- 54% of respondents indicated that foot traffic was better in the quarter for 2012 than 2011 (8% much better and 46% slightly better).
- 62% of respondents said higher retail price points benefitted sales in Q3 2012 compared to the same period in 2011.
Additionally, 67% of respondents said they believe beverage manufacturers will increase their product pricing in the fourth quarter of this year, while only 11% believe prices will be reduced.
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