The convenience store industry has come a long way in the past decade. From hosting high-calorie snacks and canned sodas, convenience stores now cater to a range of ever-changing consumer needs. As the retail industry evolves and the demand for healthy and gourmet beverages continues to rise, convenience stores have been innovating with new drink selections. With an array of choices, vendors are taking into consideration factors like health, sustainability, and taste. But, for those in the food and beverage distribution industry, sorting through the pros and cons to evaluate the viability of this often novel drink trend is a difficult task. Let’s explore how modern convenience stores are navigating beverage trends and evaluate the advantages and disadvantages of stocking these products.
Assessing Health and Lifestyle Drinks
There has been a surge of specialty drinks which focus on health benefits and lifestyle diets. Many of these beverages offer superior nutrition and forego the sugary, canned drinks that have been a convenience store staple. For instance, many stores are replacing high sugar drinks with reduced sugar options such as coconut water and organic teas. Additionally, stores are catering to those on diet restrictions, such as the Paleo or Keto diets, by offering drinks that contain low carbohydrates and artificial sweeteners as substitutes. With an array of choices, convenience stores are adapting to meet the changing needs of their consumers.
The Benefits of Health and Lifestyle Drinks
There are several advantages to stocking health and lifestyle drinks. These drinks can appeal to the modern consumer who places higher value on the quality of their food and beverage choices. By offering such items, convenience stores can become more appealing to health-conscious customers who seek out organic, non-GMO, or low sugar options. Moreover, health-focused drinks can attract customers with dietary restrictions who otherwise may not have visited these stores due to lack of appealing alternatives. Furthermore, health-focused drinks are potentially more profitable than sugary beverages because retailers can charge a premium for more expensive products and capitalize on substitution sales.
The Drawbacks of Health and Lifestyle Drinks
Despite the potential advantages associated with health and lifestyle drinks, there are certain drawbacks to consider. Firstly, many of the drinks are considerably more expensive than the traditional offerings in convenience stores. This increase in price could potentially raise the price of items throughout the store, alienating customers who would otherwise prefer cheaper convenience store options. Moreover, convenience stores lack the structure to stock and promote these drinks effectively. Without proper promotion, many of these drinks could easily be lost in the dozens of drink selections. Finally, many health and lifestyle drinks require refrigeration, adding an additional cost for the retailer that can’t be justified by the relative demand for these items.
Exploring the Benefits of High-end Craft Beverages
Another growing trend in the convenience store sector is that of craft beverages. From seltzer flavors to energy drinks crafted from organic ingredients, these drinks offer customers something different than the traditional canned sodas associated with convenience stores. Many craft drinks are offered at premium prices due to their limited production enabling convenience stores to capitalize on the increasingly savvy consumer who demand organic ingredients at a reasonable price.
The Benefits of High-end Craft Beverages
Stocking craft beverages that are likely only available from specialty stores are a great way for retailers to attract more customers. These high-end drinks offer something unique and, as previously mentioned, can appeal to those seeking healthier options. Furthermore, since many craft beverages have socially conscious aims, convenience stores can tap into the “feel-good” aspect of buying a craft beverage. As public interest in sustainability and ethical sourcing rises, these niche drinks will appeal to the public and compel purchases from those seeking to meet those ethical goals.
The Drawbacks of High-end Craft Beverages
Similar to health and lifestyle drinks, craft beverages are often expensive and require refrigeration for proper storage. Furthermore, because of their limited production, some beverages could be difficult to source or pricier than traditional canned drinks. Moreover, since these drinks are typically not distributed by large companies, retailers may need to sign a contract with the beverage’s manufacturer and are barred from partnering with discount stores. Moreover, many of these drinks have a shorter shelf life, which can increase stress on businesses if the demand does not surpass the supply.
Final thoughts
Convenience stores have historically stocked canned sodas and other unhealthy drinks. However, as consumer health concerns have arisen, convenience stores are now taking into consideration the pros and cons of stocking health and lifestyle drinks as well as craft beverages. By tapping into modern drink trends, the convenience store sector can develop more diverse and attractive selections, while potentially improved profits. However, retailers should weigh the potential drawbacks of stocking of such beverages like cost and shelf life to help them decide if these item are viable investments.
