Wells Fargo has reported overall positive beverage industry trends.
A new report from Wells Fargo has revealed that, as retailers continue to benefit from strong in-store sales, convenience store non-alcoholic beverages experienced strong growth (+6.6%) in the first quarter of 2016.
Wells Fargo recently conducted a survey of beverage retailers representing over 15,000 convenience store (c-store) locations across the U.S., and some key takeaways from this first quarter “Beverage Buzz” survey include:
- Non-alcoholic beverage sales remain strong, up 6.6% in and alcoholic beverage sales were up 5% in the first quarter.
- Non-carbs, sports drinks, energy drinks and craft/import beers continued to generate robust growth given lower gas prices and premiumization trends.
- Monster sales decelerated despite transition issues being largely resolved which we attribute to the difficult year over year comparison. However, retailers expect Monster to return to double-digit sales growth for the balance of 2016.
Wells Fargo noted that the risk/reward for both beverage manufacturers and c-stores ahead of first quarter results remains favorable given the benefit from lower gas prices/higher consumer disposable income and overall positive beverage industry trends.