Beer continues to be an essential category for convenience stores and one that requires more than the usual amount of observation, knowledge, planning, execution and overall savvy. According to The Nielsen Co.:• Nearly 787 million cases of beer were sold in the c-store channel during 52-weeks ending March 6, 2010; down 1.5% from 799 million…
Marketing the Beverage Bar
While frozen dispensed beverages are not a huge portion of the typical store’s overall sales, the product is proving to be quite profitable, thanks to a gross margin north of 50%. Although the slush-style drink was a c-store original, other retailers recognized its potential, and today, frozen beverages with a variety of names and logos…
A Taxing Time for Tobacco
Last year was truly a difficult time for tobacco. The State Children’s Health Insurance Program (SCHIP) increased tobacco taxes from a “modest” 158% increase on cigarettes up to a hideous 2,000 plus percentage increase on roll your own tobacco and small cigars. (RYO went from $1.10 per pound to $24.68 and small cigars went from…
Sweetening Candy Sales
Americans’ love affair with chocolate will never end. That said, sales of non-chocolate candy and gum are rising steadily, fueled by the economy and the search for innovative, flavorful new products. “Yes, people are right in calling this a strong category,” said Bill Singer, a principal in Singer’s Chevron Inc. in Walla Walla, Wash. “When…
Efficient Exit Strategies Sweeten Candy Profits
Developing an effective exit strategy for candy and reviewing product performance regularly can boost profits in the candy segment. “On a basic level you want to discontinue the slow moving items that rank in the bottom of the category to bring in something new that is going to contribute sales and margins to the category,”…
Brands, Promotions Benefit CSDs
Concern For CSDs 16 million fewer Americans are drinking sugary soft drinks today compared to six years ago (68% of adults versus 76%). 7.8 million switched to diet soft drinks. 24 million have moved to bottled water. 17 million are opting for energy drinks. 11 million have tried sports drinks. 16 percent of Americans are…
Thinking Outside the Box
In 2010, retailers are getting creative to reach customers with the general merchandise category. As with other categories, expect customers to be focused on finding more value for their dollar. 7-Eleven Inc. sees quirky, fun products attracting customer attention at its chain in 2010. The Dallas-based chain ended the fourth quarter of 2009 with an…
Juices and Teas Bounce Back
Innovation, health and pricing are some of the factors that will help or hinder c-store operators looking to make money with juices and teas in 2010. While juices and teas have struggled over the past few years, 2009 was sort of a renaissance year for the category as both segments experienced sales gains. Overall, for…
Leveraging Loyalty
Reaping Rewards Loyalty marketing programs recognize and reward the best customers of a business. Nearly one-third of U.S. consumers (32.3%) consider their participation in retail rewards programs to be “more important” as they seek to stretch their household budgets in the recessionary economy, according to survey research from Colloquy. In another significant result from its…
Buzzing Over Beer Sales
State of beer: Despite a strong outlook for 2010, U.S. beer shipments dropped by 2.2% in 2009. Thousands of Barrels Shipped $2,008 2,009 Change Anheuser-Busch $107,025 104,800 ($2,225.00) MillerCoors $64,500 63,300 ($1,200.00) Crown Imports $11,583 11,000 ($583.00) Heineken USA $8,960 8,575 ($385.00) Pabst $5,900 5,700 ($125.00) Selling beer, wine and other adult…
