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Beverages are big. For evidence, look no further than McDonald’s launching CosMc’s, a drive-thru beverage concept, at the end of 2023.

The trend doesn’t stop with QSRs. According to Statista, the second-highest generator of sales in convenience stores, after cigarettes, are packaged non-alcoholic beverages. Coca-Cola Lens found that beverage selection was a motivating factor for c-store customers much more often than for restaurant patrons. This is a large category, ranging from water to soda and ready-to-drink coffee, as well as healthier products like smoothies..

Younger consumers especially are particularly drawn to drinks.

“Gen Z has really embraced beverages as a place to experiment,” said Maeve Webster, president of Arlington, Vermont-based Menu Matters, a menu consulting firm. “They are low-cost, low-consequence when it comes to risk. They work really well on social media. Essentially, they tick all the boxes for a generation plagued by decision anxiety and [that] has less disposable income than other generations.”

Despite the drive for innovation, after tap water and hot brewed coffee, bottled water remains the most popular beverage, according to Datassential, drunk by 36% of consumers. It’s followed by juice; regular sodas and iced tea.

Atlanta-based RaceTrac’s data shows younger audiences are more experimental with beverages. It therefore tries to keep its beverage sets exciting, partnering with local brands such as Sun Drop in Tennessee, Big Red in Texas and Cheerwine in North Carolina, to provide familiarity to customers.

The chain routinely works with brands such as Coca Cola and Red Bull too, “to push their new products to feature a ‘get it here first’ narrative when customers are shopping our stores for Limited Time Offers,” said Micah Hanthorn, category manager for RaceTrac. He said he also sometimes features some of the local brands up front through limited-time offers.

GetGo Cafe + Market, the convenience store arm of grocer Giant Eagle, sees experimentation across all age groups, largely in made-to-order beverage offers like milkshakes, flavored coffee drinks, and new items like Red Bull Refreshers. In the last few years, it’s seen the most upward movement among its cold coffee offers, like nitro coffee, iced mochas and lattes, said Larry Galley, GetGo’s director of fresh merchandising.

Weigel’s stores have focused in the past year on expanding energy and adding unusual drinks like Poppi, a prebiotic drink with fewer calories and sugar. “The trend is going more functional,” said Nick Triantafellou, director of merchandising and marketing for the Powell, Tenn.-based company. Next the stores will be pushing more sports drinks, which are also functional.

Beverage section navigation

Because the beverage section is so crowded, it’s not enough to just have an innovative or differentiated selection. Signage helps customers find what they want to buy — or points them to something different.

Rutter’s has around five screens running advertisements, deals and bundles above its beverage coolers “to entice people” and to let them know “what we have going from a VIP or loyalty perspective but also because the coolers may be blocked from view,” said Philip Santini, the company’s senior director of advertising and foodservice.

Rutter’s also uses strategically placed door clings to promote drinks behind them, and rail strips within the coolers, but is careful not to place too many so it’s cluttered.

RaceTrac highlights its beverages with promotional tags on shelves, cooler clings on doors and digital boards, but these are usually reserved for calling out key promos or innovation, according to Hanthorn.

The company prefers to create its own images “to promote the item, as much as the brand, in a positive way,” Hanthorn said. “This allows us to lead the narrative and have the final approval of what is in our stores.”

The company always tries to offer something a little different as well. “While many offers are available to all retailers, we lean on our vendors to find unique opportunities other retailers are not participating in,” he said, such as a one-of-a-kind car giveaway with Monster.

Weigel’s uses items like pump toppers provided by vendors to call out promos and also uses rail signage in the coolers. 

“We don’t do clings any more because we want a clean look when you see a door,” Triantafellou pointed out. 

Above its coolers, Weigel’s uses neon-looking signs in newer stores and foam boards in older stores.

GetGo’s stores prioritize signage but also highlight the best value options. To draw attention to signage, GetGo integrates logos where possible, both its own logo and any national brand logos. And if bundling products earns additional loyalty perks or if a special discount is available for a combination of products, it makes sure to call that out prominently in its graphics.

Loyalty

GetGo often partners with beverage vendors when it’s promoting combo meals or LTOs on its myPerks loyalty program.

“Beverages are both a destination item and an add-on, so we work to cater to both types of visit,” said Galley. “For those who are shopping with us to specifically buy a dispensed or packaged beverage, we’ll frequently offer promotions for multiple purchases. For those who shop with us to get a made-fresh-to-order item, we’ll make sure we have promotions available to give them the incentive to add a beverage to their order.”

Beverages he adds, “are a significant part of our marketing strategy. Images of beverages are tied into the food photography we get for signage, both in hard copy and on our kiosks.”

Weigel’s loyalty program is a big driver for beverages, Triantafellou points out. Members get offers such as buy-one-get-one-free, or combos with food.