Cold vault beverage sales at Nouria Energy’s retail stores are strong in both unit and dollar sales year to date, reported Kevin Platt, senior category manager for the chain’s 150 stores in Maine, New Hampshire, Massachusetts, Connecticut and Rhode Island.
Anticipating fewer out-of-stocks than in 2021 and a significant increase in consumers taking to the highway for road trips and staycations, he expects cold vault sales to continue to rise through the summer.
Consumers looking for a quick pick-me-up are keeping the momentum in the energy drink category going. This segment leads all the beverage segments in both unit and dollar growth year to date, Platt said.
“Constantly changing flavor profiles including candy flavors such as sour, Skittles and Starburst keep the energy category interesting,” Platt said.
He noted that bottled water is the second largest dollar segment for Nouria, and the most profitable given the lower costs versus energy drinks. He pointed out that premium water continues to drive double-digit growth in the segment.
In the refrigerated juice segment, brands in the premium segment have seen the fastest growth in dollar sales, Platt said. He attributed much of this dollar sales hike to price increases in the category this year.
Single-serve carbonated soft drinks have seen a slight increase in unit sales and a moderate rise in dollar sales, he stated. Like juices, the stronger dollar sales in this segment reflect the retail price increases this year.
Iced tea dollars and units sold are down at Nouria, primarily due to continued out-of-stock issues and price hikes, he said.
“The combination of these two factors has resulted in consumers choosing to quench their thirst with water, particularly enhanced waters, instead,” Platt noted.
He pointed out that at his stores, the ready-to-drink (RTD) cold-brew coffee has not taken off as it has in other retail channels.
In the cold vault, a variety of flavors and sugar-free offerings attract consumers. Platt pointed out that the current top cold vault flavor trends are candy flavors, berry, peach and apricot.
Platt is watching the cannabidol (CBD) drink segment which, he said, “is starting to catch on in other parts of the country and headed our way.”
“Because (CBD drinks) are still new to New England and are set at higher retail prices than other drinks, consumers here need to be educated on the benefits of CBD products in order for them to give them a try,” he explained.
Healthy Options, New Flavors Tempt Customers
Energy drink sales have been “awesome” throughout the pandemic and continue to grow at an “amazing” pace at Plaid Pantry convenience stores, reported Mike Nelson, senior category manager for the 106-store chain in Washington and Oregon.
“Brands that consumers perceive are healthier for you are the ones that have been experiencing good momentum,” he said.
Flavor wise, Nelson sees consumers being tempted by the mystery or rainbow flavors some energy drinks are offering. Sour candy and branded candy flavors such as Starburst have also generated traction for the segment.
Prior to last year, carbonated soft drinks had been on the decline at Plaid Pantry but, Nelson noted, they came back strong last year and continue to do well this year. Dollar increases outpaced unit movement, which Nelson chalks up to higher retail prices.
“Limited-time, seasonal or periodic flavor offerings, especially in the energy drink and carbonated soft drink segments, help keep customers engaged with beverage brands,” he said.
Sparkling water had a stellar sales year in 2021, but now it is bottled still water that leads the segment, he stated. In the RTD tea segment, traditional iced tea has struggled for the past few years, but kombuchas and yurba mate teas are “incredibly strong” in the Pacific Northwest, he said.
Although juice sales had been declining over the past several years, the segment had a growth spurt last year, but is starting to come back down, he said. He added that the stores struggled last year in the RTD iced coffee segment, mostly because of supply chain issues, but he’s hoping that this year those issues will be resolved, and sales will climb.