Key Takeaways:
- C-store retailers are projecting a 3.7% growth in beverage sales for this year, up from the previous estimate of 3.4% in the last quarter as per Goldman Sachs’ survey.
- Energy drinks have shown strong performance in Q2, with a fourth consecutive quarter of growth and an expected 12% increase in sales for the full year, compared to 6% growth in 2024.
- Traffic has been slightly down year over year in Q2, but retailers are optimistic about a 1.1% growth for the full year, a significant improvement from the previous quarter.
Insights:
C-store retailers are feeling positive about the beverage category due to favorable weather conditions that boosted traffic during the July 4 holiday and lower gas prices encouraging more summer trips.
Despite the optimism, concerns remain about the challenging macro environment that could impact consumer confidence, which rose by 2% in July but is still below last year’s levels.
The energy drink market saw strong performances from brands like Red Bull, Ghost, Alani Nu, and Monster, while Prime experienced a decline in sales and retailers anticipate ongoing losses for Jake Paul’s beverage line.
Retailers are observing a slowdown in promotional activities from manufacturers compared to the previous quarter, with expectations of price increases later in the year.
The survey by Goldman Sachs included feedback from operators representing approximately 37,000 c-stores, accounting for around a quarter of the industry in the U.S.