There’s something about a donut or pastry with a cup of coffee that can brighten your day. Many customers at Cowboys 280 in Birmingham, Alabama, agree, often picking up a packaged sweet snack with their morning coffee. “Even in the midst of the coronavirus pandemic, we sold a lot from the category in the morning daypart,” said manager Nichole Locastro. “Packaged sweet snacks are everyone’s go-to for a quick snack, especially in the morning.”

“Though a small percentage of the c-store bottom line (1.74% of in-store sales in 2019, according to NACS State of the Industry data), it’s an important category for the morning daypart,” agreed Jayme Gough, NACS analyst. “The overall category skews to the earlier dayparts for pairings with morning beverages like coffee.”

Sweet Sales

Overall, the pandemic appeared to redirect sales in general at convenience stores. “There is evidence that during the COVID-19 crisis, there was a shift in the trip mission for patrons of c-stores,” said Chris Balach, brand director of all-day snacking for Hostess. “Seeking a store with a smaller crowd, consumers utilized the c-store for traditional grocery shopping as opposed to the items meant for immediate consumption, such as packaged sweet snacks.”

However, that didn’t mean recent sales of packaged sweet snacks declined across the board. “At Cowboys 280, packaged sweet snacks have always done fairly well for us, and that didn’t change during the lockdown,” Locastro said.

Sales of packaged sweet snacks jumped at Little Roy’s in Peterborough, New Hampshire. “All of our snack products, including packaged sweet snacks, have seen increases because of the pandemic,” said manager Chris Monkton.

All of our snack products, including packaged sweet snacks, have seen increases because of the pandemic.

According to 2019 NACS State of the Industry (SOI) data, packaged sweet snacks bring in a healthy average margin of 41.55% for retailers. Snack cakes, pastries and desserts accounted for the majority of category sales in 2019 (48.9%), down slightly from 2018 figures, followed by muffins/donuts (34.1%) and cookies (17.0%). Muffins/donuts and cookies both gained category sales share from 2018 to 2019. “Overall, the total category generated $40,949 sales per store in 2019, an increase of 2.1% year-over-year,” Gough said.

At Homeless Halley’s Convenience Store in Largo, Florida, packaged sweet snacks have been a bright spot since the store opened in mid-April. “We opened in the middle of a pandemic, but our snacks, including packaged sweet snacks, have sold very well already,” said owner Halley Williams. His store offers a dozen or so snack cakes, plus about a dozen types of packaged cookies. “People have been buying them, and I have to stock something in the category every day,” he said.

On the Sweet Shelf

In general, the packaged sweet snacks category has benefited from a rise in convenience snacking, and retailers can highlight its portability to generate sales. “Pre-packaged snacks are a perfect option for customers to purchase and eat on-the-go, preferably with a morning or afternoon beverage,” Gough said. “Combine that with the category being one of the more impulsive purchase categories in a convenience store, and it means retailers have an opportunity to boost category sales.”

Social media posts can drive in-store sales of packaged sweet snacks. Williams does a lot of Facebook boosted posts to draw attention to his store, including ones featuring packaged sweet snacks, that translate into sales.

Bundling and two-for specials can be particularly effective with packaged sweet snacks. Williams also has buy-one-get-one for all snack categories and pairs snacks like packaged pastries or donuts with soda or coffee. Cowboys often runs a special buy-two-for-$2 in packaged sweet snacks. “Our customers like that price point for the category, and it’s a popular sale,” Locastro said. “We don’t do more beyond that because everyone knows they can get packaged sweet snacks at a convenience store.”

Convenience store operators can encourage impulse purchases of packaged sweet snacks with eye-catching displays and signage in primary and secondary locations throughout the store. For example, Locastro merchandises the category near the coffee to boost impulse sales.

“Retailers who have a thorough understanding of the store’s customer demographic can help in the selection of regional or customer-specific items to drive traffic and supplement the core items customers rely on,” said Balach.

Seasonal Sweets

As with other categories, showcasing seasonal offerings of packaged sweet snacks energizes interest and sales in the category. “Seasonal offerings such as pumpkin spice during the fall can be a hit with customers, as the new item may catch their eye and encourage an impulse buy,” Gough said. Locastro takes advantage of seasonal flavors, bringing in pumpkin-flavored packaged sweet snacks in the fall and Christmas flavors in the winter. “We put the seasonal flavors on the counter by the register and usually sell out pretty quickly,” she said.

Hostess provides a range of seasonal and limited-time-offer flavors built around consumer taste trends. Some LTOs, like Hostess Birthday CupCakes, and Hostess Iced Lemon CupCakes, proved so popular the company moved them to everyday offerings. “Innovation keeps the category fresh, which is why Hostess engages in a spectrum of innovation, ranging from expansions to flavor innovations, and a robust calendar of limited-time offerings over the course of the year,” Balach said.

But sometimes, it’s the basics customers crave. Little Roy’s sticks to the tried-and-true in its packaged sweet snacks. “We carry the usual cookies and pastries and donuts but haven’t tried seasonal flavors because of lack of customer interest,” Monkton said.

A Sweet Future

As people return to their daily lives and hit the road for longer and more frequent trips, convenience stores will likely see a corresponding lift in traffic and more interest in categories like packaged sweet snacks. “Overall, customers seeking ‘permissible indulgence’ can find it in this category,” said Gough.

As Williams quickly discovered, the category is a customer favorite. “I couldn’t survive without sweet snacks, as it brings in a high margin percentage and is what my customers want,” said Williams.

Whether for a little something sweet to go with a morning cup of coffee or an afternoon pick-me-up, packaged sweet snacks has a lot to offer customers—and retailers. As Monkton with Little Roy’s noted, “There’s always going to be demand.”

The Power of CSX Data

CSX, the engine behind category metrics and NACS State of the Industry data, provides current and customizable tools for financial and operational reporting and analysis in the convenience industry. Retailers can measure their company by any of the myriad metrics generated via our live database. Contact Chris Rapanick at (703) 518–4253 or [email protected] for a complimentary executive walkthough.

The NACS Convenience Tracking Program (CTP) comprises consumer behavior analytics from more than 10,000 convenience store shoppers across 42 states, representing the most comprehensive consumer-driven metrics available to the industry.

To learn more about CTP and how to participate, contact Leroy Kelsey, director of industry analytics, at [email protected] or visit www.convenience.org/ctp.