LAS VEGAS — The theme of this year’s National Association of Convenience Stores (NACS) tradeshow was “we are convenience,” a reminder to operators that they are selling an experience. Historically, a convenience store visit meant stopping for a gallon of milk or a loaf of bread on the way home from work. Today, convenience stores are much more, offering made-to-order food, customized beverages and an array of snacks.

Total convenience store sales in the United States in 2023 were $859.8 billion, of which $327.6 billion were from in-store sales. The average basket — what customers spent per visit — increased 3.7% to $7.80.

Total convenience store foodservice sales, which includes prepared food; commissary; and hot, cold and frozen dispensed beverages, represented 26.9% of in-store sales in 2023, up 1.3 percentage points from the prior year. Profits from foodservice were 37.3% of total in-store profits.

Made-to-order foods have convenience stores operating as quick-service restaurants, said Stafford Shurden, the owner of Shurden Farms, Inc., Drew, Miss., who spoke on Oct. 7. He believes the trend will continue to grow. Pre-made foods, such as those found on hot rollers, under heat lamps or require microwaving, continue to sell and are profitable, he said.

The growth in convenience store foodservice sales comes at a time when some consumer packaged goods brands are being challenged in the convenience channel. Some are blaming it on a decrease in foot traffic and the overall economy. Others believe it’s because the old mix of products does not speak to today’s convenience store shopper. It’s also about offering snackable products that accompany the fresh foodservice orders.

At the NACS tradeshow, held Oct. 7-10 in Las Vegas, exhibitors marketed innovations intended to continue to capture the attention of today’s convenience store customer. Jones Soda, Seattle, for example, debuted Fiesta Jones, a carbonated soft drink line for convenience store customers. The line features four Latin-inspired flavors, less than half the calories and sugar of standard sodas, and resealable screw-top aluminum bottles. Flavors are coconut lime, guava berry, mango passionfruit and watermelon strawberry. Each 16-oz bottle contains 80 calories and 19 grams of sugar.

“Convenience store operators have told us that their shoppers want a soda with big taste, fewer calories and a resealable package,” said David Knight, chief executive officer of Jones Soda. “Nothing in the market met that description, so we developed Fiesta Jones to fill the whitespace. This line gives us an opportunity to establish a strong presence in the c-store channel for the first time in many years.”

To better compete in convenience stores, Olipop Inc., Oakland, Calif., makers of low-sugar, high-fiber sodas, which until now, required refrigeration, introduced a 12-oz shelf-stable can format. The product will start to hit shelves at the beginning of 2025 with distribution initially limited to convenience store and small format channels.

Atlanta-based good2grow, a better-for-you children’s beverage and snack company, was recognized as one of the Top 10 Cool New Products at the NACS Show for its new good2grow Snackers. The re-closable cups of baked oat and wheat crackers come in chocolate and cinnamon varieties.

“They are the No. 1 and No. 2 new items in total crackers and cookies,” said Meghan Stevens, vice president of business insights and analytics. “We conducted a limited test market in 2023 and are now taking them national. They deliver double-digit incremental growth for the snack category and bring new shoppers to the category.”

The company is focused on helping children eat and drink healthier products.

Retail brands want in on the convenience snacking occasion. Recognizing that people snack for different reasons, and sometimes crave a sweet treat, Flowers Foods, Thomasville, Ga., is taking the Wonder brand out of the bread aisle. Starting in April 2025, Wonder will compete in the sweet baked goods snack business with the likes of Hostess Brands, a part of The J.M. Smucker Co., Orrville, Ohio.

Flowers Foods is extending its Wonder brand into sweet goods sold in c-stores in 2025.
Source: Sosland Publishing Co. 

The J.M. Smucker Co. purchased Hostess on Nov. 7, 2023. At the time, Mark Smucker, chair of the board, president and CEO, said, “Consumers’ increasing reliance on snacking to fit lifestyle needs and convenience choices has expanded the occasions where the category can deliver, and the sweet baked goods category is one of the largest and fastest growing in the industry. With the Hostess acquisition, we have a strong position in this highly attractive segment with popular brands that consumers love. In addition, the synergy of our businesses creates a compelling platform to drive sustainable growth.”

The acquisition likely helped the company grow distribution of Uncrustables sandwiches in convenience stores. A new raspberry flavor is joining grape, strawberry, honey and chocolate-flavored hazelnut.

“Uncrustables were born from a simple, yet powerful goal: make snack and mealtimes stress free,” said Chris Achenbach, marketing director at the J.M. Smucker Co. “This commitment to simple solutions for busy lives has made Uncrustables a beloved lunch and snack staple for so many. That same commitment fuels our drive to constantly evolve and innovate. New flavors that excite kids, convenient options for adults on-the-go, it’s all about delivering deliciousness, no matter how busy life gets.”