Bank Analyst Looks At Beverage Innovation In The C-Store Channel

Wells Fargo analyst Bonnie Herzog attended a recent national C-store meeting to assess the innovation activities of beverage companies in the C-store channel. Drinks innovation tended to cluster around flavors, clean labels, and functionality, all of which were “encouraging” trends for C-stores. She praised Coca-Cola’s pipeline as “a good mix of both flavor and package innovation. New offerings include Coca-Cola Georgia Peach and California Raspberry, the new Vitamin Water “Active,” Barrilitos fresh fruit infused waters, Coke Zero Sugar, and RTD coffees. PepsiCo’s new Dew Ice, launching in 2018, is “promising.” The company’s marketing strategy seems to be “straddling spaces” across retailers, occasions, and categories. Dr Pepper Snapple has high hopes for BodyArmor, setting a goal of 10 percent of the sports drinks market within 18 months, and for its Bai brands.