As the convenience retail sector faces headwinds from economic pressure and rising fuel costs—exacerbated by global geopolitical instability—major food and beverage executives are increasingly viewing the channel as a critical, albeit challenging, growth frontier. At the Wall Street Journal’s Global Food Forum in June 2026, leadership from industry giants underscored that success in this “on-the-go” environment requires more than just shelf presence; it demands strategic creativity in pricing, packaging, and product category alignment.
Pricing Creativity Amid Affordability Woes
Consumer traffic in convenience stores has shown year-over-year declines as households tighten budgets and navigate high gas prices. For PepsiCo Beverages, addressing this “affordability gap” is a top priority.
PepsiCo President Mike Del Pozzo highlighted that with standard 20-ounce soft drinks approaching the $3 price point, the company is actively testing alternative pack sizes. Strategies include:
- Smaller Pack Sizes: Introducing 13-ounce cans and mini-can options aimed at more accessible price points, such as $1.50.
- Targeted Capabilities: Leveraging data to ensure products are available at the right time and place, specifically focusing on driving consumers inside the store rather than just pumping gas.
Packaging as a Strategic Asset
The shift toward fresh, prepared food in c-stores is undeniable, but it presents a unique operational hurdle: current packaging often lacks the versatility required for mobile consumers. Driscoll’s CEO Soren Bjorn pointed out that traditional berry packaging, such as standard clamshells, does not integrate well into the “cup holder” lifestyle of the typical c-store shopper.
To bridge this gap, Driscoll’s is evolving its approach:
- Innovation: The company is rolling out the “Rainbow Pack,” a multi-compartment design that allows for varied offerings in a single container.
- Strategic Focus: Leaders in the packaging space note that for fresh food, the container must now serve as a “trust signal,” providing visible evidence of safety and quality to justify premium pricing in grab-and-go settings.
The “Biggest Whitespace” for Nonalcoholic Beverages
Perhaps the most significant opportunity lies in the nonalcoholic (NA) beverage category, which has seen double-digit growth in recent years. Despite this momentum, NA beer accounts for a small fraction of total beer volume, leaving ample room for expansion.
Bill Shufelt, CEO of Athletic Brewing, characterized the c-store channel as the “biggest whitespace” for his brand. For Athletic Brewing, the convenience channel is not just another point of sale—it is an ideal environment for their core demographic:
- Lifestyle Alignment: NA beer products resonate with the active, health-conscious, “on-the-go” consumer profiles that define the convenience store customer base.
- Untapped Potential: While the brand has some regional penetration, national scale in convenience remains a high-priority frontier, representing a potential explosion for the NA category as it shifts from a “compromise” product to a primary choice.
Frequently Asked Questions (FAQ)
Q: Why is convenience store traffic declining in 2026?
A: Consumers are pulling back on discretionary spending due to economic pressures and high fuel prices, the latter of which has been significantly impacted by the ongoing war with Iran.
Q: What is PepsiCo’s strategy to combat high prices at c-stores?
A: PepsiCo is testing smaller pack sizes, such as 13-ounce and mini cans, to lower the price-per-unit and make purchases more accessible for price-sensitive shoppers.
Q: Why are berry companies like Driscoll’s changing their packaging for c-stores?
A: Standard clamshell packaging is not convenient for on-the-go consumption. Companies are now looking at designs that fit better in cup holders and provide better portability for grab-and-go shoppers.
Q: Is nonalcoholic beer growing in popularity?
A: Yes. Nonalcoholic beer has seen double-digit growth in sales and volume for four consecutive years, with many executives identifying the c-store channel as a primary area for future expansion.
Sources & References
- How 3 major food and beverage execs view the state of c-stores – C-Store Dive
- Prepared food surge in c-stores brings packaging innovations – Packaging Dive
- Packaging Trends Shaping 2026: Where Trust Is Won – Packaging Strategies
- Athletic Brewing Sees Nonalcoholic Beer Market Rapidly Expanding – YouTube
- How is Pressure at the Pump Affecting Spending? – NACS
- Non-Alcoholic Beer Market Report 2026 – Research and Markets
