Convenience Store News - May 2018 - 60

FOODSERVICE

A Fountain of Insights
Cold dispensed beverages are
also being advanced in the
convenience channel
Fountain drink pricing, great-tasting
fountain beverages, and variety at the
fountain are among the top 10 reasons
why shoppers select the convenience
store they visit the most, according to
in-depth research recently conducted by
The Coca-Cola Co. The fountain brand
optimization study surveyed more than
4,000 monthly c-store shoppers.
"We know that variety drives satisfaction, and that the number of shoppers
'extremely satisfied' with the variety
increases from 35 percent when the
number of fountain selections are 10
or fewer, to 51 percent when there are
21 to 40 selections. The percentage
increases to 68 percent or higher
when there are more than 40 options,"
noted Randy Raymond, director of
foodservice in retail for Coca-Cola
North America.
Platforms like Coca-Cola Freestyle are
helping c-stores solve the variety equation. The original Coca-Cola Freestyle
9000 dispenser requires
approximately the same
amount of space as a traditional six- or eight-valve
fountain, but dispenses
more than 10 times the
variety, according to the
company. The Coca-Cola
Freestyle 7000 dispenser,
a smaller-scale countertop version, is designed
to meet the needs of
retailers who want to
grow their dispensed
beverage business in a more limited
amount of space.
Across convenience retail, outlets with
the Freestyle platform have seen
3-percent growth in median total beverage servings and median beverage incidence, and a 1-percent increase in traffic
growth, according to Coke's research.
Fountain Dissatisfaction
When asked what is dissatisfactory

60 Convenience Store News C S N E W S . c o m

about c-store fountains, shoppers most
often cite:
* Lack of unsweetened beverages,
* Lack of naturally sweetened beverages,
* Lack of still/non-carbonated beverages, and
* Lack of low-/no-calorie beverages.
"Given its role in driving store selection,
it is important to evaluate your fountain
lineup to ensure it is keeping pace with
changing shopper refreshment needs,"
Raymond advised. "We've seen tremendous growth in dispensed still beverages, such as teas, lemonades, sports
drinks and energy drinks."

To help retailers keep pace, Coke has
introduced new fountain options, such
as Dasani Sparkling; Barrilitos aguas
frescas, which are flavored with real fruit
juices, purees and/or spices, and have a
high appeal with millennials and Hispanic
consumers; and the Coca-Cola Quattro Quench dispenser, which enables
retailers to pour any four still beverages
across the Powerade, Minute Maid,
vitaminwater and Fuze Tea brands.
Leveraging Bundles
Promoting combo meals and food/
beverage bundles can help c-stores
drive dispensed beverage sales. "These
basket-building strategies are particularly effective when leveraging fountain,
as fountain shoppers are 24 percent
more likely than cold vault shoppers
to also purchase deli/prepared foods,"
cited Raymond.
The beverage giant's research shows
that convenience shoppers spend 37
percent more money, on average, when
food and beverage items are bundled as
a combo deal - $4.45 when purchasing
a combo, compared to $3.24 for the
typical off-deal spend.

to consumers was that a
daily medium-sized cup
of coffee from a specialty
coffee shop costs nearly
$65 every month, compared to just $31 for a cup
of RaceTrac coffee every
day in January. In select
stores that offer made-toorder specialty beverages,
customers were also able
to purchase lattes, mochas
and cappuccinos for only
$1.99 during the month.
Atlanta-based RaceTrac,
which operates more than
450 c-stores in Georgia,
Florida, Louisiana and Texas,
also introduced new coffee
machines this year, allowing
customers to select their
favorite blend and watch the
beans grind. Six blends are
available: Columbian, Dark
Roast, Decaf, Guatemalan,
Hazelnut and Regular, all
made from 100-percent
Arabica beans. More than 12
different add-ins, including
creamers, sweeteners and
whipped cream, enable
customers to make the brew
their own.
C-stores are not alone in
flexing their promotional
muscle to benefit the coffee category. Coffeehouse
giant Starbucks Corp. has
been creating buzz of its
own recently.
In late March, the chain
announced that it was
bringing back Happy Hour
deals. This came after
announcing in January
that it would not run its
Frappuccino Happy Hour
deal as it had in summers
past, due to slumping
Frappuccino sales. But
now they are back and the
promotion goes beyond
Frappuccinos - it kicked
off with 50 percent off any
espresso beverage from 3
p.m. to close. Customers
are notified of upcoming
events and offers via the
Starbucks mobile app or
through email.


http://www.CSNEWS.com

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Contents
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Convenience Store News - May 2018 - Contents
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