CSNC Category Captains 2024

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CATEGORY CAPTAINS

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OCTANE

20 Eglinton Ave. West, Suite 1800, Toronto, ON M4R 1K8 416-256-9908 | (877) 687-7321 | Fax (888) 889-9522 www.CCentral.ca

BRAND MANAGEMENT

SENIOR VICE PRESIDENT, NORTH AMERICA, CONVENIENCE

Sandra Parente 416-271-4706 sparente@ensembleiq.com

EDITORIAL

EDITOR & ASSOCIATE PUBLISHER

Michelle Warren mwarren@ensembleiq.com

ASSOCIATE EDITOR

Tom Venetis tvenetis@ensembleiq.com

ADVERTISING SALES AND BUSINESS

SALES DIRECTOR

Julia Sokolova 647-407-8236 rthomson@ensembleiq.com

NATIONAL ACCOUNT MANAGER

Roberta Thomson 416-843-5534 rthomson@ensembleiq.com

ACCOUNT MANAGER

Holly Power 416-910-1085 hpower@ensembleiq.com

INSIDE SALES SPECIALIST

Angelica Garzon 647-5575075 agarzon@ensembleiq.com

SALES COORDINATOR

Juan Chacon jchacon@ensembleiq.com

DESIGN | PRODUCTION | MARKETING

CREATIVE DIRECTOR

Nancy Peterman npeterman@ensembleiq.com

PRINT DESIGNER

Catalina Carrasco cgonzalezcarrasco@ensembleiq.com

SENIOR PRODUCTION DIRECTOR

Michael Kimpton mkimpton@ensembleiq.com

MARKETING MANAGER

Jakob Wodnicki jwodnicki@ensembleiq.com

CORPORATE OFFICERS

CHIEF EXECUTIVE OFFICER Jennifer Li erick

CHIEF FINANCIAL OFFICER Jane Volland

CHIEF OPERATING OFFICER Derek Estey

CHIEF PEOPLE OFFICER Ann Jadown

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Candy & Novelties

Cold Beverages Non-Alcoholic Ready-To-Drink (NARTD)

Protein Snacks

Ready to Drink (RTD)

BEER

While Beer has been accessible in other provinces for years, Beer is officially here in convenience stores in Ontario, starting September 5, 2024.

Canadians are seeking for a healthier lifestyle. In the Beer category, total beer volume has declined year over year, however the category has seen a surge in lighter options. The Above Premium segment continues to grow, lead by shoppers searching for these alternatives. In total beverage alcohol, beer remains the highest household penetration rate amongst cider, coolers, wine, and spirits. Along with penetration rate, Beer in 2024 has on average the highest servings per drinker

Shoppers stopping into convenience stores to purchase beer typically also buy cigarettes, chips, soft drinks, and energy drinks. Beer becomes a destination for convenience stores, with each basket per trip including beer is 20% higher than the average convenience store without beer.

BEER HAS THE HIGHEST PENETRATION IN TOTAL BEVERAGE ALCOHOL

BEER HAS THE HIGHEST SERVINGS PER DRINKER TOTAL BEVERAGE ALCOHOL

BEERS TRENDING UPWARDS

Source: IPSOS ACT CANADA

CANDY & NOVELTY ITEMS

Canadians are increasingly seeking moments of indulgence and excitement in their daily lives, turning to Candy and Novelty Candy items as a source of joy and comfort. As consumer preferences evolve, the demand for unique and innovative candy products is on the rise.

A significant portion of Canadian consumers regularly purchase Candy and Novelty items, viewing them as essential treats for themselves or as gifts. This trend highlights the growing importance of the Candy and Novelty category in driving impulse sales and profit growth in the convenience and retail sectors.

The market continues to expand, offering consumers a wide variety of choices in flavour, format, and experience (gummies, sour candies, novelty items, and more). Product innovation, combined with the desire for both nostalgia and new experiences, will continue to fuel the growth of the Candy and Novelty sectors in Canada.

The Candy/Novelty category thrives on variety, offering consumers a wide range of options from classic candies to innovative novelty items that cater to different tastes and occasions. Products that blend nostalgic flavours with contemporary twists are resonating well with consumers, creating a balance between comfort and excitement. Candy and Novelty items are often purchased as small indulgences, making them a key driver of impulse buys and incremental sales.

VAST MAJORITY OF CANADA SHOPPERS BUY CANDY OR GUM

A GROWING TREND: CONVENIENCE SHOPPERS SEEK OUT NEW CANDY AND CHOCOLATE

Over One Third of Canada Convenience Store Shoppers Bought Candy in the Previous Month

90% of Canada shoppers report purchasing a candy or gum product in a typical month.

Source: Convenience Store News CanadaC-StoreIQ 2024.

In 2024, 35% of Canada convenience store shoppers purchased candy in the previous month, a significant increase vs. 2023 (32%).

Source: Convenience Store News CanadaC-StoreIQ 2024.

WHY CANADA CONVENIENCE SHOPPERS MAKE IMPULSE PURCHASES

The #1 reason Canada convenience shoppers cite for a recent impulse purchase is “to treat myself”; 42% made an unplanned purchase for this reason vs. 27% that made an unplanned purchase because it was “on sale.”

TREAT MYSELF

TOP REASONS

Sources: Convenience Store News Canada - C-StoreIQ 2024.

Almost 1 in 5 (18%) of convenience store shoppers specifically seek out new candy and chocolate when considering new products to purchase.

Source: Convenience Store News CanadaC-StoreIQ 2024.

TOTAL SALES IN CANDY & GUM

Total NCC* sales in the C&G channel last 52 weeks (ending May 18, 2024) was $160M.

*NCC: Non Chocolate Confections include bagged candy, novelty, pops, pressed candy, fruit chews and edible entertainment products

Sources: Convenience Store News Canada - C-StoreIQ 2024; NeilsonIQ, week ending May 18, 2024.

A family-owned business with more than 5,700 diverse employees coast to coast, we operate in every province through more than 50 sales and distribution centres and five manufacturing facilities. Our Vision is to be the Greatest Bottling Company Built by the Best People and our Daily Mission is to build a better future and deliver optimism to our employees, customers, consumers and communities. We have close, local connections with the communities in which we operate. We proudly make, distribute, merchandise, and sell the most loved beverages Canadians enjoy. We are determined to make a positive difference in our local communities and responsibly manage our footprint while we build a multi-generational business that is focused on the future.

COLD BEVERAGES

NON-ALCOHOLIC READY-TO-DRINK (NARTD)

Cold beverages are a key segment at Gas & Convenience. An important driver of in-store sales and shopper traffic, the broad interaction across categories and occasions is vital to helping build baskets at the channel

• Non-Alcoholic Ready-To-Drink (NARTD) Beverages are a key component to C&G success:

ƒ Cold Beverages are the 2nd largest category in C&G (after General Merch) contributing $1.2B in sales in the last 52 Weeks and providing 15% of all in-store sales.1

ƒ NARTD drives the most In-Store trips to the channel with 135.9M Trips. 2

• NARTD Overindexes in C&G (22.3 $ Shr3) with 3.9x the importance to Beverage dollars vs Total Scanned Sales (5.7 $ Shr1).

• Purchases of NARTD Occasions at C&G heavily skew towards Meals-at-Home (Lunch/Dinner) and Relaxing/Screentime4 – capturing the majority of day parts.

ƒ 11% of baskets with Alcohol contain a NARTD2 – meet all your shoppers’ beverage needs by ensuring a strong NARTD offering to complement and grow your Alcohol baskets.

• Energy, Carbonated Soft Drinks, and Isotonics make up 78.5% of NARTD $ sales5 at C&G and will be instrumental to driving both dollars and units.

Sources: 1 Nielsen MarketTrack; Nat’l C&G; Total Tracked Sales; L52W to June 29, 2024

2 Numerator; Nat’l C&G; Projected Trips; L52W to Aug 11, 2024

3 Nielsen MarketTrack; Nat’l C&G; NARTD; L52W to June 29, 2024

4 BEACH Occasions Dashboard Canada Small Store (excl Alc) ; Rolling 12MMT December ‘2023

5 Nielsen MarketTrack; Nat’l C&G; NARTD Categories; L52W to Aug 20, 2024 vs L52W 2YA

Source: BEACH Occasions Dashboard SMALL STORE (excludes Alcoholic drinks and Tap water)
BEACH Proprietary Survey (Canada) • Rolling 12MMT December ‘2023

Delivering excitement and incremental meat snacks growth, Estimated 65% incremental growth! 1

Innovation is delivering 39% of category dollar growth in Canada! 2

Dedicated sampling, retailer & media support to disrupt in market And drive excitement within the set!

PROTEIN SNACKS

Canadians are turning to snacks with protein in their quest for healthier food options.3

Snacking continues to increase in frequency and importance

• With increased focus on satisfying daily nutritional priorities, Canadians are turning to snacks with protein in their quest for healthier food options2

• 46% of Canadian consumers agree that they can’t get enough protein without animal meat1.

Product Innovation is driving growth of the Meat Snack category

• Loyal Jerky consumers continue to indulge in more of their favourite brand when it is offered in bold new flavours, but product innovation is critical to attract new consumers to the Meat Snack category, driving trial and purchase incidence.

Disrupt the shopping trip to drive purchase incidence

• By merchandising top performing items and innovative new items with multiple points of availability, retailers can grow sales of core jerky flavours and drive trial of new and trendy protein snack solutions.

Trends in product innovation, coupled with consumers’ focus on prioritizing nutritional snacking, will continue to fuel the growth of Meat Snacks in Canada.

CONTINUES TO GROW IN IMPORTANCE

PROTEIN

When eyeing snacks at the store, consumers cite protein as the most important attribute. An overwhelming 79% of consumers admit it’s more critical than ever for protein to take center stage

Sources: 1. Mintel, Future of Animal Proteins, 2024; 2. Healthy Hits the Spot, Canadian Grocer, Sept 9,2021 3. Mintel snacking motivations, 2024.
Source: Mintel Salty Snacks Report, Feb 27, 2024.
Source: NielsenIQ MarketTrack. National All Channels. Total Meat Snacks Trended sales L52W period ending July 13, 2024. * Projected Sales.
Source: NielsenIQ. Wellness Trends Influencing Consumers. 2024.

READY TO ORDER RTDs ARE

READY TO DRINK (RTD)

The RTD category continues to grow in volume year over year. Similar to Beer, more and more Canadians are seeking for healthier options, turning to ReadyTo-Drink beverages. Now that the RTD segment has existed for a few years, Seltzers/Soda make up 38% of the RTD category, with coolers, Iced Teas, Cocktails, Caesars, and all others, making up the rest of the category. While Seltzers/Soda comprise the greatest proportion of RTDs, it has recently declined slightly in proportion of the total, while Cocktails and Iced Teas are increasing their proportion of RTDs. The category has also seen 8% growth in household penetration from 2019 to 2024 from 16% to 24%.

TOTAL RTD VOLUME IS GROWING RTD PENETRATION HAS SEEN GROWTH SINCE 2019 Volume In HL Penetration (% Drinkers)

SELTZERS COMPRISE THE GREATEST PROPORTION OF RTDS, but have declined recently in proportion of total, while Cocktails and Iced Teas have increased their proportion of RTDs

Cooler Seltzer/Soda % of Total RTD Iced Tea

All Other Caesar Cocktail (without Seltzer/Soda)

Source: ACD (Association of Canadian Distillers), Beer Canada Market Share Data, Provincial Point-of Sale Data Sources

Source: ACD (Association of Canadian Distillers), Beer Canada Market Share Data, Provincial Point-of Sale Data Sources
Source: IPSOS ACT CANADA

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