Wholesalers See RTDs Driving Growth In The C-Store Channel
June 11, 2024The emergence of c-stores as a viable outlet for wine and spirits has prompted major distributors to update their go-to-market strategy for the channel. Executives at Southern Glazer’s, Breakthru, and Johnson Brothers all report increased frequency in sales and delivery calls to convenience accounts, with RTDs a particular draw for consumers.
“RTDs are a driving force behind the growth of spirits in c-stores,” says TJ Radzilowicz, senior director of commercial strategy at Breakthru, and over-index versus other channels due to the venues’ merchandising strength for stocking cold, ready-to-consume drinks. Indeed, according to WSWA, nearly 10% of all spirits-based RTDs were sold in c-stores in 2023, as compared to 6% of traditional spirits. “Small sizes and flavors for the shot occasion also do well,” the Breakthru executive says. Similarly, for wine, 187-ml. offerings, particularly if available cold, perform well in c-stores, while wine in tetra paks is “growing rapidly,” he says.
Sean Halligan, executive vice president and chief supply chain officer at Republic National Distributing Co., says that the No. 2 wine and spirits distribution house has “a dedicated strategic sales team focused on selling into this channel at the national and local market level.” He points to investments in sales and merchandising resources that are unique to c-stores.
“We’ve ramped up our operational capabilities through increased deliveries and trucks to meet the pace of the channel’s rapid needs, ensuring that our products are in store and available 24/7,” says John Wittig, chief commercial officer at Southern Glazer’s. Wittig sees further opportunity “to lean in with our national convenience store partners, and work with them at a headquarters level, similar to other national accounts, to provide them with more focused capabilities, service, and support, as well as align our common economies of scale to offer best-in-class operational services.”
A leading south Florida c-store operator applauds the new focus wine and spirits wholesalers are putting on the stores. Andrew Mendez, co-owner of Mendez Fuel, with three locations in Miami, says his stores are now receiving nearly weekly deliveries of wine and low-proof spirits, including RTDs, while sales reps are more frequently reaching out, even by text messages. “My wine and spirits wholesalers are definitely showing me more products these days,” the retailer says.
Leading wholesalers are generally optimistic that convenience stores will continue to gain wine and spirits market share, and they say they remain committed to servicing the stores and capitalizing on the growth. “We’re bullish that this is going to be a sticky, sustainable trend,” remarks Radzilowicz.
Wittig, however, cautions that the future of RTDs and the continued progression of c-stores themselves could weigh heavily on the channel’s growth prospects. “We’ll be keeping an eye on how this channel evolves,” he says.—Terri Allan
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