(This article first appeared in NACS Magazine in the August 2023 issue.)
In 2022, a whole lot of convenience store shoppers were in the mood for something sweet. Packaged sweet snacks sales rose 18.9% in 2022 compared with 2021, according to the NACS State of the Industry Report of 2022 Data. “Packaged sweet snacks were up year over year, with pricing pushing a lot of the sales growth,” said Jayme Gough, NACS research manager.
The category had the second-largest year-on-year gross profit growth across in-store merchandise and foodservice categories, up 22.7%. “Packaged sweet snacks are a small in-store category, accounting for 1.67% of in-store sales in 2022, a 0.16 point increase from 2021. The category averaged $3,417 in per store, per month sales in 2022,” Gough said. Category margins of 44.98% were up 1.38 percentage points from 2021, which helped push monthly per store gross profits up 22.7% year over year.
“Packaged sweet snacks are a high impulse item for consumers,” said Alyssa Barrett, customer marketing manager, Rich Products. “Capturing these impulse purchases can be a challenge with so many options the consumer has to choose from, but making sure packaged sweet snacks are displayed in highly visible areas in eye-catching displays can help c-stores make those sales.”
Sales are up over last year at the Jolley in South Burlington, Vermont. “Probably about 75% of our sales are from men who grab a cup of coffee and a donut on their way to work,” said manager Kelley Morin. “With the workers back at full force, we’ve got more people coming into our store wanting that little indulgence.”
Last year, FriendShip Kitchen, a 29-unit chain in Ohio, made a bigger push into packaged sweet snacks. “We increased our shelf space in the category, from a three- to four-foot gondola section to nine to 12 feet,” said Adam Kaverman, loyalty and brand manager for the Fremont, Ohio-based retailer, which is owned by Beck Suppliers. “We wanted to make packaged sweet snacks a bigger presence in our stores to grow the category for us.”
Sweet Trends
Many customers enjoy the familiarity of packaged sweet snacks. “Millennials nostalgic for the treats of their childhoods could be tempted by little donuts and other snack cakes,” Gough said.
Others like to treat themselves by trying new flavors, so having a variety of new and classic products in the category can increase the number of returning customers. “You’re definitely seeing products get more indulgent as people look to truly treat themselves on the go,” said Alicia Mosley, vice president of marketing at Keebler. “Consumers want more variety wherever they shop, including at convenience stores. They’re looking for different flavors, textures, sizes and even packaging formats.
To continue reading, check out the article “The Power of Sweetness” in the August issue of NACS Magazine.