Industry Report 2023 Deep Dive:
Alcoholic Beverages
Rising prices due to ongoing inflation are causing
many consumers to socialize and celebrate at home, presenting the opportunity for convenience stores to capture a larger share of off-premise alcoholic beverage
sales. In this special “Deep Dive” report, a bonus supplement to the Convenience Store News 2023 Industry Report, we present exclusive data and insights into the beer, wine and liquor categories at convenience stores.
sponsored by
— 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.
Bonus data and insights into the beer, wine and liquor categories at convenience stores.
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
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)
9% cigarettes
7% cigarettes
4% cigarettes
39% OTP
9% OTP
8% OTP
6% OTP
4% OTP
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%
-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%
Alcoholic Beverages