Satisfying the Sweet Tooth

FEATURE

2021 MIDYEAR REPORT CARD

2020. Unit volume was up almost 10 percent compared to a near 7 percent decline a year ago.

Enhanced water is the star of the cold vault this year, posting a 36.8 percent dollar sales increase. Other standout subcategories are sports drinks, up 23.4 percent; energy drinks, up 14.2 percent; bottled water, up 13.3 percent; and juice/juice drinks, up 12.7 percent.

Carbonated soft drinks have plateaued over the past three years in dollar sales, but volume nudged up slightly by 1.2 percent during the first half of this year.

THE BEER BOOM SLOWS DOWN

Beer and malt beverages were a silver lining during the pandemic. Category dollar sales were up 12 percent in the first half of last year, while unit sales were up 3.8 percent.

For the first half of this year, the category reverted to norm, posting a still-solid 1.6 percent sales gain on a slight volume decline. Standout subcategories were non-alcoholic beer and flavored malt beverages, likely driven by popularity among younger adult drinkers. Imported, super premium and microbrews/craft beer also registered positive sales gains in 2021’s first half.

SWEETS BENEFIT AS TRAFFIC RETURNS

The return of customer traffic this year, in comparison to last year’s lockdowns, has been a boon to impulse sales categories like candy. The category grew 10.5 percent in dollar sales during the first six months of this year, while unit volume was up 5.6 percent.

The biggest gains came in bagged/repacked peg candy, non-chocolate bars and packs, and novelties/seasonal candy. Chocolate bars and packs and candy rolls, mints and drops also posted strong sales gains, although the gum category again declined.

SALTY SNACKS STAGE A COMEBACK

Last year, after the first six months of the year, not a single subcategory within salty snacks had a sales or volume increase. This year, every single subcategory posted a sales increase — a strong indicator of the ongoing turnaround in c-store sales as the country recovers from the pandemic.

Total salty snack dollar sales were up 8.1 percent for the first half of 2021, and unit volume was up 2 percent, a nice increase considering the 13 percent decline of a year ago.

Pretzels, up 14.4 percent, and crackers, up 12.7 percent, led the subcategories in dollar sales gains. Packaged ready-to-eat popcorn and tortilla/corn chips also performed well during the first half, rising 10.5 percent and 9.2 percent, respectively, in dollar sales.

CANDY

2021 FIRST HALF (JANUARY-JUNE) DOLLAR SALES UNIT VOLUME % CHANGE % CHANGE Total Candy 10.5% 5.6% Bagged/repacked peg candy 20.5% 13.5% Candy rolls/mints/drops 8.6% 9.1% Chocolate bars/packs 8.4% 5.5% Gum -4.4% -11.0% Non-chocolate bars/packs 16.9% 9.2% Novelties/seasonal 14.7% 8.6%

SALTY SNACKS

Total Salty Snacks Crackers

2021 FIRST HALF (JANUARY-JUNE) DOLLAR SALES UNIT VOLUME % CHANGE % CHANGE 8.1% 2.0% 12.7% 3.8%

Mixed 8.6% 4.8%

Nuts/seeds

5.6% -8.0% Other salty snacks 6.4% 1.7% Packaged ready-to-eat popcorn 10.5% 4.9% Potato chips 7.2% 3.3% Pretzels 14.4% 7.7% Puffed cheese 6.3% 1.0% Tortilla/corn chips 9.2% 5.4%

EDIBLE GROCERY

Total Edible Grocery Breakfast cereal

2021 FIRST HALF (JANUARY-JUNE) DOLLAR SALES UNIT VOLUME % CHANGE % CHANGE -6.2% -9.3% 3.6% 4.6%

Condiments 1.2% 0.5%

Other edible grocery

-10.5% -13.2% Packaged coffee/tea -4.3% -11.0% Water beverage enhancers -8.5% -18.8%

Source: Convenience Store News Market Research; Nielsen C-store Track, June 2021

The return of customer traffic this year, in comparison to last year’s lockdowns, has been a boon to impulse sales categories like candy.