By Pat Pape
Cold dispensed beverages is a small but powerful foodservice category. “In 2022, it was 2.28% of in-store sales and 7.0% of foodservice sales,” said Jayme Gough, research manager at NACS. “But the volume is there. It’s a good add-on item for customers buying candy or food.”
Although margins decreased slightly in 2022 to 48.13%, gross profit increased 12.0% year over year to $2,199 per store per month. “The category saw large increases in 2022, which helped drive sales over the pre-pandemic levels of 2019,” Gough said.
Beverages from the fountain continue to attract thirsty customers, especially during the 100 days of summer. Retailers should be on the lookout for the latest drink introductions, such as the Tractor brand, which capitalizes on consumer interest in certified organic products.
UNEXPECTED AND CRAFTY CHOICES
Traditional favorites drive repeat fountain visits, but that doesn’t mean shoppers won’t try new tastes. At Pennsylvania-based Rutter’s, six traditional fountain flavors generate the most business, but the retailer does “see some interest in moving flavors on the fountain,” said Chad White, foodservice category manager at Rutter’s.
Five years ago, Rutter’s added craft sodas to the beverage bar, and an enthusiastic response has kept them there. “We have several unique flavors in this lineup, such as cucumber melon, ginger beer and Pennsylvania birch beer,” said White. “We work with our manufacturer to provide more innovation and unique flavors on our fountain. Functional drinks have been a part of the conversation as we look to provide options.”
Grand View Research reports that in 2021 the world’s overall craft soda market size—both fountain and packaged—was valued at $651.3 million, and the research organization predicts it will see an annual growth rate of 5.0% through 2030. Fruit flavors are expected to grow fastest in the category.
“Soda drinkers are always interested in trying new flavors, and innovation is part of the Jones DNA,” said Curt Thompson, director of marketing at craft soda maker Jones Soda. “We can meet that consumer need for new and great-tasting flavors.”
Jones Soda has introduced three new fountain options: grape, cream soda and Dr. Jones, a new twist on a classic taste with the sweetness of cherries and a slightly tangy bite.
In 2021, Texas-based 7-Eleven refreshed the fountain lineup with five non-traditional flavors, including a sparkling water. “We’ve continued to see success with our proprietary craft lemonade made with real juice and cane sugar and 7-Eleven’s private-brand, vitamin-infused sport drink, Replenish Zero,” said Ben Boulden, director of proprietary beverages at 7-Eleven. “And in 2023, that offering is expanding with Minute Maid Strawberry Hibiscus Aguas Frescas.”
BIG BRANDS ARE EVOLVING
Coca-Cola is launching new fountain options and reformulating some existing flavors, according to Melinda Pritchett, director of category strategy and innovation, Coca-Cola.
“Fanta Pineapple, a favorite packaged beverage, is now offered via bag-in-box for the first time,” she said. “Fanta Orange has undergone a reformulation and is bringing a superior formula to dispensed. Fans will still enjoy the bright, bubbly and instantly refreshing drink they love—with a bolder taste than ever before.”
In addition, recently reformulated Powerade has rolled out Tropical Mango for the fountain, and Barq’s Red Creme Soda is now fountain-ready.
Read the rest of “A Flavor Playground” in the June issue of NACS Magazine.
Pat Pape worked in the convenience store industry for more than 20 years before becoming a full-time writer. See more of her articles at patpape.wordpress.com.