Two of convenience store operators’ biggest beverage categories, bottled water and sports drinks, are expected to continue strong dollar sales performances in 2024.
The convenience store channel saw bottled water sales of $5.86 billion, a gain of 6.6%, for the 52 weeks ending Dec. 31, 2023, according to Circana, while unit volume dipped 2.4% to 2.37 billion. Sports drink sales rang in at $4.89 billion, up 9.4%, for the same period, even as unit volume dipped 0.5% to 1.78 billion. Sports drink price per unit rose 10%, while bottled water price per unit rose 9.1%.
“After years of solid volume growth, sports drink performance softened in 2023 as the category was primarily impacted by inflation,” said Gary Hemphill, managing director of research for Beverage Marketing Corp. (BMC). “Dollar growth was healthy, though. We believe the outlook for sports drinks is very good as the category’s positioning is in keeping with what consumers want today.”
Hemphill noted that the sports drink category is led by strong brands like Gatorade and Powerade that resonate with consumers and have done a great job with innovation.
7-Eleven has seen good results with its private-label sports drink 7-Select Replenish, which is one of the chain’s most popular bottled drinks, explained Sarah Pingree, associate product development manager — private brands, 7-Eleven.
Launched in 2019, 7-Select Replenish is an electrolyte-hydration beverage with 100% of the daily values per serving of vitamins E, B3, B5 and B6, with only 60 calories or less per serving. It’s also free from artificial sweeteners and high-fructose corn syrup.
Top-selling flavors include Zero Orange Mango, Zero Fruit Punch, Orange Mango, Zero Blue Raspberry and Blue Raspberry.
“Our private brands help us provide our customers with high-quality products at a great value,” Pingree explained. “We created our 7-Select line with one goal in mind: to provide customers with the best products at the best prices.”
Bottled Water
“The behemoth bottled water category experienced slow volume growth for the second consecutive year in 2023,” Hemphill reported. “Volume inched up by 0.5% to nearly 16 billion gallons, based on preliminary full-year data from the BMC DrinkTell Database.”
Despite the soft performance, the firm found, bottled water widened its gap over carbonated soft drinks in 2023 as the largest volume beverage category in the U.S.
“Category volume growth has been relatively healthy in recent years with the exception of 2008 and 2009, when volume declined due to the recession,” Hemphill said. “Since then, growth had ranged between 3% and 8% until softer performance the last two years.”
Higher prices due to inflation and the sheer size of the category are contributing factors in that soft performance, Hemphill noted.
“Economic trends and pressures show us that (customers) are increasingly focused on value,” Pingree said. “Helping customers, particularly Gen Z and younger millennials, understand what we sell gives them more options as they seek out high-quality, affordable … beverage options on the go.”
