Industry Report 2024 Deep Dive:
FOODSERvice
Foodservice stood out from other in-store categories at convenience stores in 2023, seeing positive results across all segments and posting double-digit growth in average sales per store.
The strong performance of prepared food, in particular, reinforces that convenience retailers
must invest in foodservice or be left behind.
In this special "Deep Dive" report, a bonus supplement to the Convenience Store News 2024 Industry Report, we present exclusive data and insights into the prepared food and dispensed beverage categories at convenience stores.
sponsored by
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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
8.1%
-1.4%
31.10%
8.14%
8.3%
5.3%
30.75%
8.12%
7.74%
29.15%
0.8%
13.7%
23.5%
5.5%
27.65%
6.84%
9% cigarettes
7% cigarettes
6% cigarettes
4% cigarettes
39% OTP
9% OTP
8% OTP
6% OTP
4% OTP
SHARE OF IN-STORE SALES
2023
2022
3.48%
3.00%
1.19%
0.30%
3.65%
3.16%
1.17%
0.31%
Candy
Salty snacks
Alternative snacks
Packaged sweet snacks
Alternative snacks was the only snacking category to see its share of in-store sales drop year over year.
-1.2%
2.8%
4.1%
-10.5%
-1.1%
3.16%
3.00%
2.82%
-1.1%
2.67%
-5.2%
-3.7%
8.7%
-4.8%
-1.2%
1.17%
1.19%
1.22%
1.10%
1.11%
Bonus data and insights into the prepared food and dispensed beverage categories at convenience stores.
3.9%
4.6%
8.1%
8.3%
13.7%
-3.3%
-0.5%
-1.4%
5.3%
0.8%
-3.9%
4.6%
8.1%
8.3%
13.7%
7.98%
7.98%
8.14%
8.12%
7.74%
FOODSERvice
Bonus data and insights into the prepared food and dispensed beverage categories at convenience stores.
20.40%
18.77%
16.75%
14.75%
16.91%
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