C-Stores: Get the Scoop on Cold Dispensed Beverages

Cold dispensed beverages are a significant source of profit for convenience retailers, and Coca-Cola Refreshments is on top of the latest trends that help drive traffic, increase cash register ring and enhance frequency of visits. CokeSolutions checked in with one of our experts and shares insights from Russell Baker, group director, Retail Channel Planning, Coca-Cola Refreshments.

Q. What trends in cold dispensed beverages are impacting convenience stores?

A. Sales data indicate that The Coca-Cola Company and our customers have experienced increases in c-store fountain sales performance. Growth is driven by a variety of factors, including channel traffic trends, expanded channel focus on fountain beverage offerings and value pricing.

The biggest news is that customers are expanding their selections, which includes moving into larger fountain beverage platforms with additional valves. In many cases, these additional valves are being dedicated to flavored brands, such as Fanta®, root beer and tea as well as isotonics like Powerade® Mountain Berry Blast. This expansion means consumers have more access to the variety they seek and expect from c-stores. Quality tea choices are another popular area of expended selection in the convenience retail environment. BIB (bag-in-box) options tend to be favored since they require less manual labor, yet some outlets now offer brewed iced tea. Gold Peak® provides solutions in both formats.

Q. Can you share tips for operators who want to sell more cold dispensed beverages?

A. There are many ways c-stores can maximize opportunities to take advantage of dispensed beverage growth trends, including:

• Choice: Expanding the footprint of beverage and food solutions is a key first step to foodservice success for retailers. In addition to a broad portfolio of fountain beverage selections, iced tea offerings — such as our Gold Peak® Variety Tea Tower — and frozen beverages — such as Fanta® frozen and Minute Maid® Smoothies — are options to explore. Additionally, we introduced Coca-Cola Freestyle® to the c-store channel. The proprietary touch-screen fountain dispenser takes choice to a completely new dimension.


• Quality: Instituting quality programs is another way to position your outlet(s) as a first choice for consumers seeking dispensed beverages.


• Food Bundling: A focus on value is important in this market. Bundling dispensed beverages with food offerings provides an excellent way to accomplish this objective and allows the retailer to bring together the components of a comprehensive foodservice program. It creates value for shoppers and drives overall profits and sales dollars for retailers.

Q. What inroads has Coca-Cola Freestyle made in the convenience retail channel?

A. Coca-Cola Freestyle has been greeted with tremendous enthusiasm by convenience store operators since its 2011 debut in the channel. Results have been positive with customers that have a strong commitment to foodservice operations.

Coca-Cola Freestyle pours 100+ sparkling and still beverage brands from a single freestanding unit. The dispenser brings a unique interactive fountain experience to consumers by providing unprecedented opportunity for choice and enabling them to create their own customized beverages. With more than 70 low/no-calorie options, more than 90 caffeine-free choices and 80+ unique brands offered nowhere else, it truly delivers the kind of variety designed to meet peoples’ beverage needs and lifestyles.