Cold Beverages Trends

by: Curtis Davison

 

Sparkling water has remained on the what’s hot AC Nielsen president’s report for Convenience Retailing for the last eight quarters. The most recent report has it at number one, delivering 50 per cent dollar growth.

One of the toughest challenges we face in convenience retailing is how do we deliver improved revenue margins and bottom line profits when some of largest categories such as tobacco, beverages and snacks are flat to declining in unit volume?

Convenience retailing is consistently showing modest revenue growth of four per cent over each of the latest 52 week periods. This growth is being primarily driven by inflation. This strategy is not a sustainable model during the tougher economic times that we foresee on the horizon.

 

In the beverage category, there are segments of business that are producing double digit growth year after year. Some of these segments include energy drinks, premium water, ice teas and sparkling water.