Energy shots will continue to serve as a c-store staple in 2024 and beyond because they offer so many positives for consumers: a quick, convenient and inexpensive impulse item offering an energy boost that won’t fill them up like a full drink will.
“Energy shots are a big category led by 5-hour Energy, which dominates the category,” said Gary Hemphill, managing director of research for Beverage Marketing Corp. “In recent years, sales have slowed as energy drinks have gained most of the growth in the energy space. Still, shots are well positioned because the energy need state is massive.”
Energy shot sales in the c-store channel totaled $592 million, down 2.8%, while unit sales dipped 3.3% to 180 million, for the 52 weeks ending Dec. 31, 2023, according to Circana.
“The market on energy shots is slightly down, and I think will decline further,” said Ryan Fasel, director of marketing at Valparaiso, Ind.-based Family Express, which operates more than 80 locations across Indiana. “It’s been cannibalized by the energy drink category. There has been so much innovation in energy drinks the last few years in flavors, functionality, natural caffeine and sizes that have eaten into the energy shot market.”
Fasel noted 12 ounces is now a prominent size in energy drinks, driving more women to the category.
“Many brands are now featuring an assortment of vitamins and natural caffeine, which used to be exclusive to energy shots. Right now, you can find a 12-ounce functional energy drink with vitamins being promoted as a healthier alternative for a lower retail than a 5-hour Energy shot, and those brands are winning consumers away from the shots,” he said.
Value & Impulse Buys
Sam Odeh, president of Power Energy Corp. based in Elmhurst, Ill., said that energy shots represent a strong category in his stores but feels that c-store consumers expect discounts — and he provides them.
“We have a multioffer: three for $10,” Odeh said. Power Energy has 1,359 sites in nine states, 96 of which are corporately owned under the Power Mart, Power Market and Powmaro’s banners.
Consumers love the energy jolt, Odeh added, and appreciate the savings. He likes merchandising products on the front counter, since impulse items can build the average ring.
Nanette Bernard, buyer, sports nutrition and vitamins for the Army & Air Force Exchange Service (AAFES), expects energy shots to remain strong in 2024 at AAFES’ more than 580 Express c-stores because she thinks consumers will continue to look for quick energy in a convenient package.
“The leading energy shot brand for the AAFES is 5-hour Energy, and the top-selling variety is 20-ounce 5-hour Energy Berry,” she said.
The products are merchandised in-aisle in AAFES Express stores and as impulse items located near the registers. This impulse merchandising has historically proven to be gold for the category and isn’t about to change in the coming year or beyond.
