Single Store Owner

JUN 2016

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36 / Convenience Store News for the Single Store Owner / JUNE 2016 Beverages S ingle stores saw pretty solid growth in the cold vault in 2015, primarily due to packaged beverages. Average per-store sales of packaged beverages increased 6.1 percent for sin- gle stores, which matched the increase for the total industry. Performance of the beer/malt beverages category was considerably flatter, increasing just 0.8 percent in average sales per single store compared to 2-percent sales growth for the total industry. Cold Vault Contradiction Packaged beverage sales fizz, as malt beverage sales fall flat AVERAGE SALES PER STORE INDUSTRY TOTAL (in millions) PERCENT OF 2015 % ChANGE 2015 % ChANGE DOLLAR SALES UNIT VOLUmE Premium $67,387 -1.3% $10,202 -0.2% 50.4% 44.1% Imports 18,092 15.0 2,739 16.3 13.5 10.5 Budget 12,008 -4.3 1,818 -3.2 9.0 10.8 Popular 11,057 -3.4 1,674 -2.3 8.3 9.5 Flavored malt beverage 10,945 6.5 1,657 7.7 8.2 13.6 Microbrews/craft 6,017 19.3 911 20.7 4.5 3.3 Super premium 5,297 10.8 802 12.0 4.0 2.6 Malt liquor 2,880 -4.2 436 -3.1 2.1 5.5 Non-alcoholic 67 -1.5 10 0.0 0.0 0.1 TOTAL $133,750 2.0% $20,249 3.1% 100.0% 100.0% Source: Convenience Store News Market Research, 2016 AVERAGE SALES PER STORE INDUSTRY TOTAL (in millions) PERCENT OF 2015 % ChANGE 2015 % ChANGE DOLLAR SALES UNIT VOLUmE Carbonated soft drinks $56,013 0.9% $8,480 2.0% 31.4% 35.3% Energy drinks 46,224 9.2 6,998 10.4 25.9 18.9 Bottled water 17,973 9.5 2,721 10.7 10.1 11.7 Sports drinks 17,570 7.1 2,660 8.3 9.8 10.0 Juice/juice drinks 14,882 4.4 2,253 5.5 8.3 9.1 Iced tea (ready-to-drink) 10,218 9.8 1,547 11.1 5.7 7.5 Enhanced water 5,502 12.1 833 13.3 3.1 3.1 All other packaged beverages 10,179 10.8 1,541 12.0 5.7 4.4 TOTAL $178,561 6.1% $27,033 7.2% 100.0% 100.0% Source: Convenience Store News Market Research, 2016 Industry Analysis: Beer/Malt Beverages (9.51 percent of in-store sales; 6.60 percent of in-store gross margin dollar contribution) Growth of microbrews/craft beer slowed again in 2015, but still generated a 19.3-percent increase in average sales per store. Industry Analysis: Packaged Beverages (12.69 percent of in-store sales; 15.44 percent of in-store gross margin dollar contribution) Enhanced water had the strongest growth year among packaged beverages, increasing its average sales per store by 12.1 percent. Although carbonated soft drinks had another fairly stagnant year in terms of growth, they remain king of the cooler when it comes to both dollar sales and unit volume. "Carbonated soft drinks have been on the decline for many years now from both a volume and dollar perspective, yet don't kid yourself that they are not important," said Tim Powell, vice president of consulting at Q1 Produc- tions. "However, with innovation in sparkling waters, functional beverages and even 'powder sticks' and flavor additives, consumers have shifted tastes to different 'for me' beverages — much like craft beer is doing for [the malt beverages] segment." Packaged beverages in 2015 made up 12.27 percent of in-store sales at single stores with a 15.76 percent gross margin dollar contribution. Beer/malt beverages made up 9.64 percent of in-store sales and had a gross margin dollar contribution of 6.99 percent.

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