There is no greater ally for convenience store owners than their supplier partners. When retailers boost sales and satisfy their customers, everyone in the supply chain benefits. When Convenience Store Decisions launched its Reader’s Choice Awards four years ago, our premise was simple: To find out just who retailers identified as their top supplier partners.
What’s so important about this study is that the information gleaned within comes directly from key decision makers at 120 multi-site chains. The surveys were designed and conducted by Hagen Research Inc. at the request of CSD to determine which manufacturers are calling on c-store chains and to learn how these decision makers feel about merchandising and promotional programs that support manufacturers’ product lines.
The information in this report was obtained via mail survey techniques with buyers and merchandisers of the specific products studied. Interviews were conducted both at headquarters and regional offices of top convenience store chains (those operating at least 50 stores) as well as with smaller chains (those operating between 10 and 49 stores). Interviews were closed out in October.
United Front
The key finding in the study is that growth opportunities exist across many categories, such as packaged beverages, juices and teas and, surprisingly, isotonics and energy drinks. The Hagen Survey found 19% of the 95 buyers of isotonics or energy drinks reported no sales presentations from isotonic or energy drink suppliers in the last two months.
Given the category’s size, suppliers are missing significant opportunities to grow sales. Energy drinks are growing at an annual rate of 12% and are expected to surpass $9 billion by 2011, according to “Energy Drinks in the U.S.,” a report from market research publisher Packaged Facts.
Since 2002, when total retail sales were just $1.2 billion, the market for energy drinks has increased nearly 440% to an estimated $6.6 billion in 2007. Packaged Facts forecasts that convenience, both in the form of portability and totality of ingredients, will drive the energy drink market, as manufacturers begin incorporating nutrition, energy, great taste, pain killing and anti-aging ingredients into their products.
To get their products and service more prominently displayed in convenience stores, suppliers should be reaching out to key decision makers at both the retail level and company headquarters. Category managers have enormous influence with company leaders, but they are often overlooked in the promotional process.
Other Key Findings:
» Core Customer. No surprise here, it’s the American male, 21-44 years old. He’ll typically be a blue-collar worker with a high school degree and some college education. He visits a c-store three or more times each week, usually buying packaged beverages, dispensed beverages, coffee, sweet and salty snacks, beer, tobacco products, prepared food and, of course, fuel. What is a surprise is that tobacco has slipped on his list. In surveys, packaged beverages, snacks and beer ranked higher as a destination. Tobacco taxes and smoking restrictions are definitely taking a toll.
» Fastest-Growing Segments. Females ages 25-60 years old, coming from a diverse background, but usually with a high school and college degree. They shop at a c-store at least once or twice each week. Hispanic men and women ages 25-45 years old are also a booming demographic to target. They shop and eat at a c-store at least once a week.
Retail Participants:
| 7-Eleven Inc. Dallas TX Albertsons Amerada Hess AM/PM Mini Mart Associated Oil of SC Big D Oil Co. Big River Oil Co. Bishopville Petroleum Co. Inc. BP C & S Inc. Carolina Convenience Corp. Casey’s General Stores CB Mart Inc. Cefco Chevron Products Co. CHS Inc. Circle K Southeast Circle K West Clark’s Pump N Shop Inc. Coco Mart Inc. Cogo’s Co. Consun Food Industries Inc. Cracker Barrel Stores Craddock Oil Co. Inc. Crown Central LLC Dandy Mini Mart Dead River Convenience Stores Dixie Oil Co. of Ala. Dodge Stores Domino Food & Fuel Inc. E. J. Pope & Son Inc. Elliott Oil Co. Emanuel Inc. Exxon Mobil Corp. EZ Mart Convenience Stores E-Z Stop Food Marts Inc. Fastop Inc. First Coast Energy LLP |
Jacksonville FL
Fisher Oil Co. Flash Foods Inc. Friendly Mart Inc. Giant Industries Git N Go Convenience Stores Inc Granite Investments Ltd. Grovertown Truckstop Inc. H & S Enterprises Inc. Handy Food Stores Inc. Holiday Cos. J D Street & Co. Inc. J M Oil Co. Jack in the Box Inc. Jeco Inc. JFM Inc. Karco Inc. Kelley Williamson Co. Kum & Go Kwik Chek Food Stores Inc. Kwik Trip Inc. L & L Stores Inc. Lard Oil Co. Inc. Lazy Lees One-Stop Marine Corp Exchange Martin & Bayley Inc. Maverik Inc. Meijer Mercury Fuel Service Inc. Meyers Express Mart Midwest Petroleum Co. Miller & Holmes Inc. Minit Stop Moyle Petroleum Co. Nella Oil Co. Newcomb Oil Co. Nice N Easy Grocery Shoppes Ocean Petroleum LLC |
P. Hastings Corp. New Cumberland PA Pacific Pride Parker Oil Company Pence Oil Co. Inc. Pilot Travel Centers LLC Plaid Pantries Polk Oil Co. Inc. Quality State Oil Co. Quick Chek Food Stores Inc. Quik Stop Markets Inc. R & C Petroleum R. H. Foster Energy LLC Riley Enterprises Inc. Roadside Petroleum, Inc. Royal Farms Saneholtz-McKarns Scaff’s Inc. Shell Oil Co. Sonbyrne Sales Inc. Speedway Superamerica Staples Oil Co. Inc. Sunoco, Inc. Sutey Oil Co. Inc. Tesoro Corp. The Pantry, Inc. The Spinx Co. Town Pump Inc. Trexcon Inc. Tri Star Energy LLC Tri-Par Oil Inc. Triple S Express United Energy Valero Marketing & Supply Wilcohess LLC Willis Oil Co Inc. Wilson Farms Inc. Winnsboro Petroleum Co. Workman Oil Co. Xtramart |
