The beverage industry has reported substantial growth in recent months.
A recent survey from Wells Fargo Securities has revealed strong growth in c-store non-alcoholic beverage sales for the fourth quarter, and good weather and decreasing fuel prices appear to have helped grow sales.
The Wells Fargo survey, the “Beverage Buzz,” which represents over 15,000 c-store locations across the U.S., has revealed a number key takeaways for the beverage industry.
- Non-alcoholic beverage sales trend upwards (up +5.5% in Q4).
- Alcoholic beverage sales also experienced strong growth (up +4.1% in Q4).
- Lower fuel prices and favorable weather conditions may have contributed to the strong growth in non-carbonated, energy drinks and craft/import beers.
- Transition issues for Monster seem to have been resolved, as sales recover and grow.
“We continue to believe the risk/reward for both beverage manufacturers and c-stores ahead of Q4 results remains favorable given the benefit from lower gas prices/higher consumer disposable income and relatively benign weather,” said Bonnie Herzog, senior analyst for Wells Fargo.