Diving Into the Data
— Retailer respondent
“
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Regulation to Prohibit the
Use of Menthol in Cigarettes
and RYO Tobacco:
In April 2022, the FDA published a proposed product standard regulation prohibiting the use of menthol as a characterizing flavor in cigarettes, roll-your-own (RYO) tobacco, and heat-not-burn products. The public comment period ended on Aug. 2. A final rule/regulation is expected to be adopted by the FDA sometime in August 2023.
Regulation to Prohibit the Use of Characterizing Flavors in Cigars:
Also in April 2022, the FDA published a proposed product standard regulation prohibiting the use of characterizing flavors in cigars, except for tobacco flavor. The public comment period ended on Aug. 2. A final rule/regulation is expected to be adopted by the FDA sometime in August 2023. When the FDA issued the proposal, the agency stated that the effective date would be one year after the final rule is published.
Potential Regulation for Maximum Nicotine Level in Cigarettes
and Other Tobacco Products:
In June 2022, the FDA announced that the agency would propose a new regulation setting a maximum level of nicotine in cigarettes and certain other tobacco products. The other products that could be subject to this regulation were not specified. A proposed rule/regulation is expected to be published sometime by October 2023 and will be followed by a public comment period. When the proposed rule is published, the FDA may identify a timeframe for the new rule to go into effect.
45%
cigarettes
sponsored by
PRODUCED by
Beer & Malt Beverages Snapshot
2022
2022
% change
% change
-2.5%
10.1%
-0.4%
15.9%
10.2%
-5.8%
-1.5%
22.0%
2.8%
4.4%
9.5%
3.5%
$49,370
$38,847
$21,940
$16,089
$12,932
$11,769
$9,390
$4,170
$2,131
$925
$266
$167,828
$7,341
$5,777
$3,262
$2,392
$1,923
$1,750
$1,396
$620
$317
$138
$40
$24,956
-1.9%
10.8%
0.3%
16.6%
10.9%
-5.2%
-0.9%
22.8%
3.4%
5.0%
10.2%
4.1%
Sales per store
Industry Total (in millions)
Premium
Imported
Budget/value
Flavored malt beverage
Premium plus/super premium
Alcoholic seltzer
Microbrews/craft
Cheladas
Malt liquor (unflavored)
Alcoholic cider
Nonalcoholic beer
TOTAL
The category bounced back from a sales decline in 2021 to post a 4.1% increase in 2022,
thanks to double-digit growth in five of the 11 segments.
2022
2022
% change
% change
-0.6%
5.9%
-0.5%
46.2%
3.5%
1.4%
-21.8%
4.0%
$55,788
$45,846
$30,814
$11,039
$2,728
$1,389
$123
$147,727
$8,296
$6,817
$4,582
$1,641
$406
$207
$18
$21,967
0.0%
6.5%
0.1%
47.1%
4.1%
2.0%
-21.3%
4.6%
Sales per store
Industry Total (in millions)
Share by Segment
The imported segment achieved the biggest increase in sales share — up 1.4 points vs. a year ago.
DOLLAR SHARE
UNIT SHARE
25.9%
16.6%
15.7%
17.2%
5.2%
6.1%
5.1%
4.2%
3.4%
0.5%
0.1%
29.4%
23.1%
13.1%
9.6%
7.7%
7.0%
5.6%
2.5%
1.3%
0.5%
0.2%
Premium
Imported
Budget/value
Flavored malt beverage
Premium plus/super premium
Alcoholic seltzer
Microbrews/craft
Cheladas
Malt liquor (unflavored)
Alcoholic cider
Nonalcoholic beer
Wine Share of Sales & Units
Ready-to-drink wine coolers and cocktails posted the biggest share gains in both dollar sales (up almost 3 points) and unit volume (up almost 5 points).
Convenience widened its lead over all other retail channels as the place shoppers
turn to for beer and malt beverages.
Retail Channels Where Shoppers Purchase
Beer & Malt Beverages in a Typical Month
Source: Convenience Store News 2023 Realities of the Aisle Study
2. Delivering More Value to Guests
As the convenience channel gets more
and more competitive, retailers are on the hunt for ways to differentiate their stores from their competitors. Casey’s General Stores Inc., the third-largest convenience store chain in the United States, plans to increase its off-premise liquor licenses as one way to better differentiate itself and deliver for its guests. The operator of more than 2,500 c-stores across 16 states already ranks fourth in liquor licenses among
U.S. retailers.
3. Mocktails & Low ABV Offerings
Another significant trend emerging in the alcoholic beverage space is a move to products that fit consumers' increasing demand for health and wellness offerings. Nonalcoholic cocktails, often referred to
as mocktails, have grown 233% on menus in the last four years, according to Datassential's MenuTrends. Consumers who take part in alcohol-free challenges like Dry January or who want to reduce their overall intake of alcohol are drawn to these beverages.
Thirty-seven percent of consumers say they drink mocktails at least once per week, an increase of
21% compared to a year ago. It’s important to note, though, that the health and wellness trend also extends beyond nonalcoholic options, encompassing products with low ABVs and more environmentally friendly profiles, too.
Percent change
in total sales
Percent change in total unit volume
Margin percentage
Share of in-store sales
Five-Year Trend: Beer & Malt Beverages
The category posted its second-largest sales increase in five years, even as its decline in share of total in-store sales continued for a second year.
2022
2021
2020
2019
4.1%
0.1%
20.19%
9.07%
2018
The Consumer View
What's Trending
1
2
3
Convenience
Grocery
Mass
Club
Specialty/Natural
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9% cigarettes
7% cigarettes
4% cigarettes
39% OTP
9% OTP
8% OTP
6% OTP
4% OTP
The flavored malt beverage segment took the lead in unit volume last year — up 1.2 points year over year.
Percentage of C-stores That Sell Beer & Malt Beverages
Taking into account only those stores that sell beer (which topped 80% in 2022),
sales per store for the category basically held steady in the past year.
2022
2021
80.7%
78.0%
Percent of stores selling beer
FOR STORES SELLING:
Average sales per store
Percent of in-store sales
$207,964
11.23%
$207,947
12.13%
Wine & Liquor Snapshot
The wine and liquor category is keeping a firm grip on the top 10 spot it gained during the pandemic,
with a 6.4% sales increase in 2022.
2022
2021
2020
2019
2018
$36,564
$5,437
6.4%
1.98%
$34,587
$5,112
6.8%
1.98%
$31,875
$4,786
31.0%
1.97%
$22,154
$3,656
8.5%
1.55%
$22,112
$3,369
6.3%
1.47%
Average sales per store
Industry total (in millions)
Percent change in total sales
Share of in-store sales
DOLLAR Sales
66.3%
33.7%
67.7%
32.3%
Liquor
Wine
Share by Segment
Liquor accounts for just over two-thirds of the category's dollar sales and almost three-quarters of its unit volume.
2022
2021
2022
2021
UNIT Volume
72.9%
27.1%
74.1%
25.9%
2022
2021
DOLLAR Sales
72.5%
21.0%
4.7%
1.3%
0.5%
70.9%
19.4%
7.9%
1.3%
0.5%
2022
2021
UNIT Volume
67.9%
25.7%
5.0%
0.7%
0.7%
66.4%
25.2%
7.0%
0.8%
0.6%
Distilled spirits
Liqueurs & cordials
Ready-to-drink cocktails
Prepared cocktails
Cocktail mixes
Liquor Share of Sales & Units
Distilled spirits bring in seven of every 10 dollars in sales, clearly dominating the liquor subcategory.
2022
2021
DOLLAR Sales
75.5%
16.0%
6.2%
2.3%
72.3%
18.9%
6.0%
2.8%
2022
2021
UNIT Volume
64.7%
25.5%
3.7%
6.1%
59.6%
30.2%
3.4%
6.8%
Wine
Ready-to-drink wine coolers/cocktails
Sparkling wine
Fortified wine
Discount Grocery
Dollar
Drug
Online
2023
36%
2022
30%
2023
23%
2022
22%
2023
17%
2022
19%
2023
8%
2022
8%
2023
7%
2022
7%
2023
6%
2022
7%
2023
5%
2022
6%
2023
4%
2022
4%
2023
3%
2022
2%
Perceptions of high prices and less variety keep some shoppers from buying at convenience stores.
Reasons Why Shoppers Don't Purchase
Beer & Malt Beverages at C-stores
Source: Convenience Store News 2023 Realities of the Aisle Study
37%
Price is
too high
Don't offer good selection/variety
21%
Don't offer sales/promotions
19%
C-stores I visit don't sell these products
19%
The percentage of shoppers who say they’re purchasing beer
and malt beverages at c-stores less these days jumped 8 points.
Purchase Frequency of Beer & Malt Beverages
at C-stores Today vs. Year Ago
2023
19%
55%
25%
More
About the Same
Less
2022
23%
60%
17%
Source: Convenience Store News 2023 Realities of the Aisle Study
1. Opportunity in Hard Beverages
While beer still dominates the total alcohol landscape at convenience stores, hard beverages are one of the hottest trends at the moment. "This is a category that consumers define as not quite beer, not quite wine and not quite spirits. [It is] essentially where seltzers, ciders, FMWBs [flavored malt/wine-based beverages] and RTD [ready-to-drink] cocktails play," Craig Koehler, director of category development, off premise at Anheuser-Busch, told Convenience Store News. FMWBs, as well as spirit-based seltzers and cocktails, are leading the growth in hard beverages, creating opportunities that
c-store retailers can capitalize on.
-2.8%
-5.0%
20.14%
9.29%
14.0%
5.4%
20.23%
10.15%
1.0%
0.2%
19.02%
9.20%
0.8%
1.7%
19.08%
9.34%