Foodservice

Drink Up: Specialty Beverages Create a Draw

How convenience stores can capitalize on shifting consumer preferences

CHICAGO -- Whether it’s for a morning cup of coffee, a midafternoon smoothie or a soda any time of day, foodservice consumers are making beverage purchases a top priority. They’re buying non-alcohol drinks very frequently, at an average rate of three and a half times a week, according to Technomic's newly released 2016 Beverage Consumer Trend Report.

But the study also found that beyond the frequent purchase rate, other noteworthy patterns are emerging for the beverage category, such as the tendency of younger consumers to be more discerning about beverages as their preferences. Also, expectations are skewing strongly toward uniqueness, quality and innovation.

"The menu or product mix is increasingly important for beverages. While older consumers tend to stick to familiar favorites like hot coffee and regular soda, younger consumers are seeking more specialty, handcrafted beverages, and they're willing to pay more for them," says Kelly Weikel, director of consumer insights for Technomic Inc.

That’s because customers 35 and older tend to order drinks simply out of habit, while younger guests are much more likely to choose a beverage to satisfy a craving, according to the study. The promotion of specialty, seasonal or made-to-order drinks is more likely to fuel cravings and influence purchases among the younger-than-35 customer base.

This sounds promising for restaurant beverage programs, but what about convenience stores? According to Weikel, the opportunity clearly extends to c-stores. The trend toward specialty beverages “applies across categories,” she said. Also, focusing more squarely on improvements to higher-quality, handcrafted beverages “may be especially important for c-stores since younger consumers tend to use c-stores more heavily for foodservice,” said Weikel.

For c-stores working to capture the attention and dollars of these younger consumers, Technomic finds that promotion of food and beverages in tandem may be particularly effective. Roughly a third of younger guests – 33% of Gen Z customers and 32% of millennials – say pairing suggestions that match specific food items with specific drinks would encourage them to give these items a try.

Maintaining the right balance of tried-and-true drink favorites and trendier options is vital, too. Developing a limited-time offer strategy helps keep the beverage menu fresh without sacrificing the position of signature items. "Offering LTO specialty beverages, like ginger chai tea lattes or handcrafted wildberry hibiscus iced tea, alongside familiar favorites can help grow sales and broaden appeal across generations,” said Weikel.

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