Buzzing Over Beer Sales

State of beer: Despite a strong outlook for 2010, U.S. beer shipments dropped by 2.2% in 2009. Thousands of        Barrels Shipped $2,008 2,009 Change Anheuser-Busch $107,025 104,800 ($2,225.00) MillerCoors $64,500 63,300 ($1,200.00) Crown Imports $11,583 11,000 ($583.00) Heineken USA $8,960 8,575 ($385.00) Pabst $5,900 5,700 ($125.00) Selling beer, wine and other adult

Marketing Cigars in Tough Times

Despite the SCHIP tobacco taxes that hit on April 1, 2009, cigar sales continue to persevere. The federal taxes on large cigars rose from 20.719% of the wholesale price with a tax cap of 4.875 cents per cigar to 52.75% of the wholesale price with a tax cap of 40.26 cents per cigar. The tax

Rolling Right Along

Turning a Profit The times have changed. Just as c-store foodservice evolved to meet the needs of fresh, fast and friendly service, so have the items that star on the roller grill. “Gone are the days of the shriveled hot dog, whose origins and expiration date are unknown,” said Tim Powell, the c-store foodservice program

Dairy and Ice Cream Deliver Health, Value

DID YOU KNOW? After several years of decline, the frozen novelties category was up close to 2% for the 52 weeks ended Dec. 27, 2009. Retailers can expect to see more customers eating at home, searching for value on purchases and buying more healthful food items, according to the International Dairy Deli Bakery Association (IDDBA).

Renewed Optimism for Smokeless tobacco and tobacco chewing products

The simple truth is that no one is certain what the Food and Drug Administration (FDA) will come up with next now that it has been given de facto control of the tobacco industry. But between bureaucratic control freaks, national, state and local taxes, and even the whispered fear of retailer liability concerns ahead, many

Perfecting Pizza

THE POWER OF PIZZA $38 Billion Estimated total annual sales in pizza restaurants. 70,000 Number of pizza restaurants across the country. $19.6 Billion Total revenue accounted for by the top four pizza chains (Pizza Hut, Domino’s, Papa John’s, Little Caesars) Source: National Association of Pizzeria Operators To do well in 2010 with pizza, convenience store

Value is Key to HBC

In the HBC category, miscellaneous health remedies brought in $74,935,760 in dollar sales, a 4% decline from the previous year according to Information Resources Inc. (IRI) data for the 52 weeks ended Dec. 27, 2009. Meanwhile the cold allergy and sinus liquids and tablets were down 11.6% for the same period. “We’re seeing increases in

Flexibility Fuels Chicken

TOP FIVE U.S. Chicken producers Average Weekly Production (in million pounds)    Market    Share %     Pilgrim’s Pride 146 20.30% Tyson Foods 144 20.00% Perdue Farms 55 7.60% Sanderson Farms 42 5.80% Wayne Farms 34 4.70%   Investing in foodservice is a big step for any c-store chain, but if it’s done right, the

Thinking Outside the Box

In 2010, retailers are getting creative to reach customers with the general merchandise category. As with other categories, expect customers to be focused on finding more value for their dollar. 7-Eleven Inc. sees quirky, fun products attracting customer attention at its chain in 2010. The Dallas-based chain ended the fourth quarter of 2009 with an

Strength in Numbers

Resilient, tough and tested. These are just a few of the words analysts and retailers alike used to describe the convenience store and petroleum industry over the past 12 months. With the economy suffering its most difficult period in some 80 years, convenience stores held up rather admirably considering how consumer confidence plunged and the

Serving the Unbanked

As the economy worsened, the number of adult Americans without bank accounts grew exponentially—and the use of prepaid cash cards climbed to new heights as well. Directo, a company that tracks pay cards to unbanked workers, reported that the recession has sent the number of unbanked Americans soaring to about 50 million, well up from

FDA Looks at Future of Tobacco Products

Confusion Reigns Supreme C-store operators aren’t the only ones left scratching their heads by the Food and Drug Administration’s (FDA) first foray into tobacco regulation.During the FDA’s teleconference, Catherine Lorraine, a lawyer for the administration, said, “I just want to draw your attention to the portion of the definition of a cigarette, which specifically refers

Turning a Foodservice Profit

C-store operators looking to grow their foodservice programs just may be overlooking, or at least underestimating, one of the best tools at their disposal: the humble roller grill. As in-store menus have expanded to include fresh foods and entrees, the time-honored roller grill has quietly continued to please customers and bolster bottom lines thanks to

Managing the Crowded Cold Vault

When it comes to packaged beverages, what gets put on the shelves may not be what customers are looking for and, in this economy, that’s a situation retailers must avoid. Making wise, informed buying decisions is the crucial difference between boosting cooler sales and blowing a lot of hot air. From colas to energy drinks,

Smokeless Sales Stay Strong

Sorting through all of the dynamics at work in the smokeless tobacco category is proving a complex calculation for convenience store operators and consumers alike. For example: retail prices rose with the April 1 passage of an increase to the Federal Excise Tobacco (FET) tax to fund an expansion of SCHIP, the State Children’s Health

Customers Indulging in Chocolate

The Benefits of Chocolate Once considered a “guilty pleasure,” researchers now say that chocolate offers health benefits—when consumed in moderation and provided the chocolate is the right kind. International experiments show that dark chocolate has an impressive array of activities, according to the Harvard Health Newsletter. It’s an antioxidant that may improve cholesterol scores and

Strong Outlook for Meat Snacks

Meat snacks—beef jerky, meat sticks, pork rinds and more—are right at home at U.S. convenience stores. And, despite the rough economy and some sales slippage, new products and popular brands continue to excite customers. Paul Lyons, president and owner of Up North Jerky in Troy, Mich., and a partner, with Sam Kassem and Mike Abdullah,

Competition Brews for Beer Sales

Convenience stores across the country are facing burgeoning competition on beer and wine sales from drug store giant Walgreens, which is branching back into the adult beverages category. Walgreens is adding beer sales due to “a direct response to consumer demand,” said Robert Elfinger, spokesperson for the Deerfield, Ill. drug store chain. It plans to

Driving Cooler Sales

The economy, the environment and the weather. All three are impacting the sale of bottled water this year. From 1997 until 2007, consumers were thirsty for bottles of clear, refreshing water. Between 2003 and 2008, bottled water sales grew 59% to $5.1 billion, making it one of the fastest-growing drinks on the market. Consumers believed

Frozen Sales Heating Up

Since its invention about half a century ago, the frozen dispensed beverage has become a convenience store tradition, with three out of every four U.S. convenience outlets housing a frozen beverage bar. While frozen dispensed beverages are not a huge portion of the typical store’s overall sales, the product is profitable, thanks to a gross

Cigars Enhance Flavor Profile

The SCHIP tobacco tax rates that hit on April 1 are costing cigar smokers more, but sales continue to persevere. As of April, the federal taxes on large cigars rose from 20.719% of the wholesale price with a tax cap of 4.875 cents per cigar to 52.75% of the wholesale price with a tax cap

Roll-Your-Own Climbs Amid Tax Hit

Mounting cigarette costs are driving smokers to test cost-effective tobacco alternatives, such as roll your own (RYO). The 2009 NACS State of the Industry report, which polled 156 retail firms with 20,553 stores as of December 2008, found that pipe and cigarette tobacco sales had the strongest growth of all tobacco products and were up

Gum Sales Grow

The retail sector is still struggling overall, but as some segments continue to sink, others rise. American consumers are still buying billions of dollars of candy each year, and this isn’t changing as they resist making major purchases. Even during a recession, American consumers still have a sweet tooth, which explains why gum and candy

Dipping Into New Profits

In a market plagued by high taxes, declining gross margin profits on cigarettes and the likely possibility of FDA restrictions on tobacco, retailers more than ever need to manage the tobacco category more closely. It’s no secret that the smokeless category has been growing, with big year-on-year gains in new product sales, flavors and line

The Coffee Battle Brews

Convenience store operators need to focus on meeting consumer demand for a quality cup of coffee as McDonald’s, Dunkin’ Donuts, Starbucks and Caribou all announced plans to step up their brew programs to reel in consumers during a tough economy. About 54% of the adult population in the U.S. classify themselves as coffee consumers, according

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