Whether it’s a road trip or a stop along the way of someone’s daily route, convenience stores are helping consumers fuel up not just their vehicles but also themselves.

In Beverage Industry’s recent article “Convenience Stores Continue to Evolve,” Jeff Lenard, vice president, strategic industry initiatives, at the National Association of Convenience Stores (NACS), Alexandra, Va., noted that approximately “80% of the items purchased in a convenience store are consumed within the hour,” with the channel also seen as a destination for beverage purchases.

Additionally, Tony Guilfoyle, chief commercial officer at Celsius Holdings Inc. in Boca Raton, Florida, explains that about 65% of energy drink sales occur within the convenience channel. Although the company notes it under-indexes in this channel, it is gaining recognition from many key operators. 

 “This past year, we were honored to receive the Supplier of the Year award from 7-Eleven, and other awards from partners like Maverick and Casey’s,” he says. “We credit our approach, which involves open dialogue and strong, consistent, two-way collaboration. We’re co-developing in-store promotions, like food pairings, and delivering innovative retail marketing programs with partners like Ferrari (our F1 partner), Major League Soccer (MLS), and other properties that resonate with consumers and are making a strong impression at the point of sale.”

In Beverage Industry’s recent article on the convenience channel, NACS’s Lenard highlighted the channel’s record in-store sales in 2023, calling attention to the impact from foodservice.

“The growth was led by foodservice,” Lenard noted in the article. “Overall, total industry foodservice sales — which includes prepared food, commissary, and hot, cold and frozen dispensed beverages — represented 26.9% of in-store sales, up 1.3 percentage points in 2023 from the prior year.”

With high-quality prepared foods gaining momentum in the convenience store channel, CELSIUS is uniquely positioned to work with customers on attractive food pairing promotions, the company notes. Its sugar-free formula and flavors pair well with meals, it adds. Guilfoyle notes that the brand’s latest flavor, Sparkling Cherry Cola, is a pop-inspired classic that pairs well with savory foods like burgers and pizza.

This kind of momentum is helping CELSIUS transcend the energy drink category.

“Our food service business accounts for a bit more than 12% of our sales, which is significant,” Guilfoyle says. “Consumer insights and research have proven that CELSIUS organically resonates with food occasions.”  

The CELSIUS brand has seen measurable growth, driving 47% of all category growth within energy drinks in the second quarter of 2024, the company share. This success is particularly evident in convenience stores, where CELSIUS has increased its shelf space by 43% in 2024 resets, it notes. CELSIUS also is the No. 1 growth brand among all beverages, the company shares, citing Circana panel omnichannel retail and point-of-sale data for the 52 weeks ending June 16, in which sales were plus $1.2 billion and units were plus 348 million.

“Operators recognize our value, and our shopper basket rings are averaging greater than $10 in multiple outlet (MULO) locations,” Guilfoyle says. “The brand is resonating and transcends both functional energy and functional soda.”

CELSIUS places a big emphasis on working closely with its retail partners to leverage data and insights to drive success.

“We pride ourselves on high-value relationships,” Guilfoyle says. “It’s not just about growing our brand within our customers’ channels, but also about helping them reach their goals and increase foot traffic.”

The CELSIUS brand also has capitalized on the growing consumer demand for “better-for-you” lifestyles, particularly the increasing popularity of sugar-free options, it notes.

“Sugar-free is truly outperforming full-sugar options,” Guilfoyle says. “For the first time this summer, sugar-free energy drinks generated more than 50% of dollar sales, and this cleaner energy segment continues to lift the category.”

Further solidifying its position in the sugar-free energy space, the company released CELSIUS Essentials last year, currently available in Fruit Burst, Blue Crush, Dragonberry, Mango Tango, Cherry Limeade and Orangesicle.

“In the past year, we released our Essentials line, which is a major focus for us,” Guilfoyle says. “It’s a 16-ounce product. We know that performance energy is a powerful subcategory within convenience. Customers that buy performance energy drinks at c-stores tend to be heavy or high-value shoppers. They visit more often, buy more per trip, and are always eager to try the latest and greatest.”

This focus on the Essentials line will continue into the coming year as CELSIUS builds upon its success. At the recent NACS Show, CELSIUS announced the expansion of the Essentials line with two new flavors — Watermelon Ice and Grape Slush — which will be available in early 2025.

“Our strategy has always been to lead with sugar-free, creating a ‘better for you’ halo — and then keep an eye on consumer trends to bring our great products to the right consumers and drive growth in the category,” Guilfoyle says.