Pump-Pain Squeezes Convenience Store Spending: Citi Says "More Subdued" Mood Among Beverage Companies
Our reporting this year has shown how skyrocketing gasoline and diesel prices at the pump are reshaping consumer spending habits at convenience stores and gas stations.
As fuel costs take up a larger share of household budgets, consumers trade down, cut back on discretionary purchases like energy drinks and snacks, or skip them altogether. Some also buy less fuel, putting pressure on both pump volumes and in-store sales.
Citi beverages analyst Filippo Falorni published a new report on Friday, reporting back to clients after attending the 2026 NACS Show in Las Vegas earlier this week. He warned that the overall mood among beverage companies was more subdued because of softer traffic and declining consumption, driven by higher fuel costs.
"Overall, the tone was more subdued than last year given softer traffic/consumption levels in the channel amid higher gas prices and lower-income consumer pressure," Falorni wrote in the note.
He pointed out that Citi-tracked convenience-channel dollar sales fell 2.1% in the third quarter from the same quarter a year earlier.
Volumes declined 5.1% in the quarter.
More indepth.
The convenience channel has materially underperformed the broader retail market since the Iran conflict began, Falorni said.
The slowdown increases exposure for energy-drink and beer producers that rely heavily on convenience stores. The channel accounted for roughly 63% of Monster Beverage's measured retail sales and 45% of Celsius Holdings' sales over the past year. For Constellation Brands, Boston Beer, and Molson Coors, the shares were about 66%, 60%, and 52%, respectively.
At the beverage-company level, the analyst said the convenience-store channel began underperforming in the second quarter, around the time we pointed out that consumer pullback was hitting gas stations and quick retailers (read here & here).
Despite those pressures, Citi remained optimistic about energy drinks, pointing to expected shelf-space gains, new customers, pricing contributions and a pipeline of products focused on protein and hydration.
Latest developments in the space, per the analyst:
Energy Drinks: MNST highlighted a solid innovation pipeline, which seems more focused on quality over quantity – incl. the Monster Protein Energy line, which will feature 30g of protein + 160mg caffeine in 12-oz cans (Vanilla & Chocolate flavors), planned for Mar-2027, plus flavor extensions across Ulta, Juice, Bang, FLRT. CELH showcased its Winter 2026 Spritz Vibe LTO – a sparkling Shirley Temple-inspired offering coming out this month. It also featured its new Celsius Energy + Hydration line (1Q'27 rollout) – 16-oz cans with 670mg electrolytes + 200mg caffeine, in 4 fizz-free flavors: Blue Freeze, Orange, Lemon Lime, Fruit Punch. Details & pictures inside.
Soft Drinks: KO plans to test-launch prebiotic sodas across its Coke Zero, Sprite Zero, & Fresca lines (each w/ 6g fiber) with regional testing planned for NY, NJ & PA in late Oct. It also featured new trademark Coca-Cola flavor launches expected in '27, incl Cherry Lime (Feb' 27) & Strawberry Float (summer' 27) as well as a new Fairlife Core Power Banana flavor (Jan' 27). PEP is introducing Pepsi Strawberry Shortcake, a new Pepsi flavor to launch in Feb '27, Gatorade Gatorlyte Longer Lasting, a new high-electrolyte RTD beverage/powder line (Feb' 27), and two new poppi lines, Lift & Chill, launching in '27. KDP showcased Dr Pepper Ice Cream Float, a new permanent flavor launching nationwide in Feb '27. For KDP's partner brands, Bloom will roll out three new flavors: Strawberry Shortie (Oct' 26) + Cotton Candy & Lemon Freezie (Jan '27).
Beer: TAP is planning a 2027 national launch of its non-alc Coors 0.0 product following a soft launch across select Northeast US markets in May '26. STZ featured its higher-ABV Modelo Chelada Suprema line with new 12- & 24-ct variety packs, with core Modelo Chelada adding a Pepino y Limón flavor next year. STZ also showcased smaller brands, incl. Right Hook (a new hard punch brand launching Mar. 27), Wildish Pop (a new vodka-based hard soda w/ 4.5% ABV & 100 calories), Austin Cocktails (brand refresh planned in 27/new flavors), Good Peels (new 12-ct variety packs and expansion into more states), & the recently acquired SpikedAde. SAM featured LYTT, a line of 15% ABV malt-based beverages launched in May.
How beverage companies have performed so far this year.
If consumers really don't want to give up their energy drink habits, they can buy in bulk at Costco, where Kirkland Signature energy drinks cost about 70 cents per can.
Tyler Durden Wed, 10/14/2026 - 05:45
Continue reading...
[ H/T ZeroHedge ]
Our reporting this year has shown how skyrocketing gasoline and diesel prices at the pump are reshaping consumer spending habits at convenience stores and gas stations.
As fuel costs take up a larger share of household budgets, consumers trade down, cut back on discretionary purchases like energy drinks and snacks, or skip them altogether. Some also buy less fuel, putting pressure on both pump volumes and in-store sales.
Citi beverages analyst Filippo Falorni published a new report on Friday, reporting back to clients after attending the 2026 NACS Show in Las Vegas earlier this week. He warned that the overall mood among beverage companies was more subdued because of softer traffic and declining consumption, driven by higher fuel costs.
"Overall, the tone was more subdued than last year given softer traffic/consumption levels in the channel amid higher gas prices and lower-income consumer pressure," Falorni wrote in the note.
He pointed out that Citi-tracked convenience-channel dollar sales fell 2.1% in the third quarter from the same quarter a year earlier.
Volumes declined 5.1% in the quarter.
More indepth.
The convenience channel has materially underperformed the broader retail market since the Iran conflict began, Falorni said.
The slowdown increases exposure for energy-drink and beer producers that rely heavily on convenience stores. The channel accounted for roughly 63% of Monster Beverage's measured retail sales and 45% of Celsius Holdings' sales over the past year. For Constellation Brands, Boston Beer, and Molson Coors, the shares were about 66%, 60%, and 52%, respectively.
At the beverage-company level, the analyst said the convenience-store channel began underperforming in the second quarter, around the time we pointed out that consumer pullback was hitting gas stations and quick retailers (read here & here).
Despite those pressures, Citi remained optimistic about energy drinks, pointing to expected shelf-space gains, new customers, pricing contributions and a pipeline of products focused on protein and hydration.
Latest developments in the space, per the analyst:
Energy Drinks: MNST highlighted a solid innovation pipeline, which seems more focused on quality over quantity – incl. the Monster Protein Energy line, which will feature 30g of protein + 160mg caffeine in 12-oz cans (Vanilla & Chocolate flavors), planned for Mar-2027, plus flavor extensions across Ulta, Juice, Bang, FLRT. CELH showcased its Winter 2026 Spritz Vibe LTO – a sparkling Shirley Temple-inspired offering coming out this month. It also featured its new Celsius Energy + Hydration line (1Q'27 rollout) – 16-oz cans with 670mg electrolytes + 200mg caffeine, in 4 fizz-free flavors: Blue Freeze, Orange, Lemon Lime, Fruit Punch. Details & pictures inside.
Soft Drinks: KO plans to test-launch prebiotic sodas across its Coke Zero, Sprite Zero, & Fresca lines (each w/ 6g fiber) with regional testing planned for NY, NJ & PA in late Oct. It also featured new trademark Coca-Cola flavor launches expected in '27, incl Cherry Lime (Feb' 27) & Strawberry Float (summer' 27) as well as a new Fairlife Core Power Banana flavor (Jan' 27). PEP is introducing Pepsi Strawberry Shortcake, a new Pepsi flavor to launch in Feb '27, Gatorade Gatorlyte Longer Lasting, a new high-electrolyte RTD beverage/powder line (Feb' 27), and two new poppi lines, Lift & Chill, launching in '27. KDP showcased Dr Pepper Ice Cream Float, a new permanent flavor launching nationwide in Feb '27. For KDP's partner brands, Bloom will roll out three new flavors: Strawberry Shortie (Oct' 26) + Cotton Candy & Lemon Freezie (Jan '27).
Beer: TAP is planning a 2027 national launch of its non-alc Coors 0.0 product following a soft launch across select Northeast US markets in May '26. STZ featured its higher-ABV Modelo Chelada Suprema line with new 12- & 24-ct variety packs, with core Modelo Chelada adding a Pepino y Limón flavor next year. STZ also showcased smaller brands, incl. Right Hook (a new hard punch brand launching Mar. 27), Wildish Pop (a new vodka-based hard soda w/ 4.5% ABV & 100 calories), Austin Cocktails (brand refresh planned in 27/new flavors), Good Peels (new 12-ct variety packs and expansion into more states), & the recently acquired SpikedAde. SAM featured LYTT, a line of 15% ABV malt-based beverages launched in May.
How beverage companies have performed so far this year.
If consumers really don't want to give up their energy drink habits, they can buy in bulk at Costco, where Kirkland Signature energy drinks cost about 70 cents per can.
Tyler Durden Wed, 10/14/2026 - 05:45
Continue reading...
[ H/T ZeroHedge ]
