Convenience Store Operators Will Switch Up Beverage Space in 2024

Energy drinks are expected to gain the most ground in spring resets.

12/27/2023

NEW YORK — Convenience store operators will be changing up their beverage merchandising in the coming months.

According to Goldman Sachs' recent "Beverage Bytes" survey, retailers expect to make more shelf/cooler space changes for the total beverage category in their upcoming spring resets vs. prior years — giving more space for energy drinks.

The c-store retailer contacts in the survey represent approximately 37,000 retail locations or roughly 25% of the convenience channel.

Key takeaways from the survey include:

The total beverage category — alcoholic and nonalcoholic — is expected to gain incremental shelf/cooler space in the upcoming spring resets in the c-store channel, with 21% of retailers surveyed expecting to allocate more space to total beverages;
The energy drink category is widely expected to be the largest shelf/cooler space gainer in total beverage (alcoholic and nonalcoholic) spring resets, followed by flavored malt beverages at a distant second place, while ready-to-drink teas, beer and juice are expected to lose the most space;
Celsius is expected to be the biggest shelf/cooler space winner within the nonalcoholic beverage category spring resets, with 87% of retailers surveyed expecting to allocate more space to the brand, followed by C4 and Monster Beverage Corp., while Red Bull is expected to lose the most space;
Overall, retailers' outlook for the energy drink category remains quite healthy, with a few retailers noting expectations for continued double-digit percent category growth in 2024;
The vast majority of retailers indicated that Red Bull's recent price increase is sticking, and therefore most expect Monster Beverage will follow suit and also raises prices (with many expecting an announcement in the first quarter); and
Constellation Brands Inc. and Molson Coors Beverage Co. are expected to be the biggest shelf/cooler space winners within the alcoholic beverage category spring resets, while Anheuser-Busch Inbev is expected to lose the most space.

Additionally, despite concerns over the financial health of the consumer, retailers broadly expect to keep their total private label shelf/cooler space unchanged vs. prior years, said Bonnie Herzog, Goldman Sachs senior financial analyst.

Related Topics