For the past few summers, adult customers at Rutter’s stores in Pennsylvania have discovered unique and fun solutions to their refreshment needs. The chain’s spiked slushie program—frozen drinks topped off with flavored malt beverages or wine—has become so popular that some Rutter’s locations now offer up to 16 different options. “The move into spiked slushies has been a huge success,” said Chris Hartman, director of fuels, forecourt and advertising. “It’s given our chain another point of differentiation.”

Spiked or adult slushies in c-stores in some markets are indeed having their moment. “We’re seeing increased interest in these products from c-stores in areas where they’re legal,” remarked Chris Wurtzel, strategic account manager at Bunn-O-Matic Corp., which markets frozen dispensed beverage equipment. Demand particularly soared last year at the height of the COVID-19 pandemic, as closed bars and restaurants left many consumers craving adult frozen concoctions.

“Adult slushies have put c-stores in the frozen margarita space,” said Larry Galley, senior category manager, fresh foods, at GetGo, which has been selling spiked slushies since 2019 and now offers them in 43 Pennsylvania stores and 12 Ohio locations.

In Pennsylvania, spiked slushies—which first appeared in the state’s beer distributor channel several years ago and then quickly spread to c-stores—have grown to become a phenomenon. “Adult slushies hit Pennsylvania fast and furious,” noted Paul René, vice president, U.S. operations, at Geloso Beverage Group, marketer of the Clubtails line of flavored malt beverages often featured in the drinks. “For c-stores, they were a newfound opportunity and appealed to new legal-drinking-age consumers.”

Adult slushies have put c-stores in the frozen margarita space.

Keystone State Surge

Spiked slushies at Rutter’s are now available at 42 Pennsylvania locations where beer and wine are also sold. According to Hartman, the majority of locations carry 10 flavors—priced at $4.99 for a 20-ounce serving (a 20-ounce pour of a Spiked Frosé runs $7.49) up to $24.99 for a 128-ounce party bag—but some stores offer as many as 16 expressions. While options are rotated throughout the year, popular flavors include Spiked Jamaican, featuring Seagram’s Escapes’ Jamaican Me Happy, and Spiked Blue Razz, comprised of Molson Coors’ Steel Reserve Spiked Blue Razz. To promote the frozen drinks, Rutter’s employs TV commercials, digital advertising and in-store signage, including a flavor board by the checkout. “We plan to expand the program,” Hartman said, noting that Rutter’s is looking to add licensed beverage locations throughout its market.

At GetGo, where spiked slushie options range from four to eight flavors, top sellers include those featuring TGIF’s Long Island iced tea, Jamaican Me Happy and Mike’s Harder lemonade, Galley said. The adult slushies are priced at $4.99 for 20 ounces and $7.99 for a 32-ounce serving. The drinks are promoted via both inside and outside signage, as well as on social media. Galley said the products have been so successful that GetGo would like to roll them out to the other states where it operates “when we legally can.”

Dandy c-stores, meanwhile, have promoted adult slushies for the past year, and according to Jesse Dix, category manager, “response has been very positive.” Available at 11 Pennsylvania locations, the adult slushies are priced at $5 for 20 ounces and $16 for a 64-ounce growler bag. Two to four flavors are typically offered, Dix said, and top sellers include those featuring brands like Mike’s Harder, Jamaican Me Happy and Steel Reserve Blue Razz. Sheetz is among the other Pennsylvania c-store chains offering spiked slushies.

The closure of bars and restaurants at the height of the pandemic last year helped to fuel demand for spiked slushies, retailers and vendors said. “COVID helped to marry the newness of these drinks with demand for drinks that were no longer available from on-premise establishments, resulting in a flow of new customers to c-stores,” René noted.

Indeed, at GetGo, sales of spiked slushies doubled from April 2020 to July 2020, Galley reported, as “consumers wanted that frozen cocktail experience.” Demand remained strong this summer too, the retailer said, with some GetGo stores selling between 200 to 500 units a week.

Impulse Sales Driver

In most cases, flavored malt beverages are simply added to the mix in the hopper of frozen dispensed machines to create spiked slushies. According to Kevin Kraft, channel director at FIFCO USA, the marketer of the Seagram’s Escapes line, typically 10 23.5-ounce cans of the product are added to a single bay of the machine to yield about 16 servings. Malt beverages containing at least 7% alcohol by volume work best, he added. The freezing process can take up to one hour.

Spiked slushie offerings, where legal, carry many benefits, retailers and vendors said. “They provide incremental sales and the opportunity to drive traffic,” remarked Kraft, and the fact that sales peak between 4 to 6 p.m. “fits into the all-important c-store drive time.” Galley noted that adult slushies “bring in certain customers who may not have come in before, and those customers often pick up other products that help build the basket.” René added that the drinks provide retailers with a unique proposition. “These are products that mass merchandisers don’t offer,” he said.

High margins are also a strong attribute. “Most beer sold out of the cold box carries a 25 to 35% margin,” noted Wurtzel. “These products are at least double that.” Moreover, Brad Cliburn, director of product strategy at Bunn-O-Matic, added that the frozen nature of the products yields a 5-10% overrun, further buffeting margins. Dix confirmed the profitability. Dandy typically makes a 25% margin on a single of Mike’s Harder, he noted, but with an adult slushie, “we’re more than doubling our margin.”

In Wyoming, liquor-based slushies have been popular for some time. The upscale Bodega convenience store in Jackson Hole has offered its “sloshies” for nearly a decade, according to Neil Loomis, beverage director at parent company Fine Dining Restaurant Group. Bodega offers six options, priced at $7 a 16-ounce serving, inspired by cocktails, such as the Moscow Mule, whiskey sour and gin and juice. “Sloshies are big throughout Wyoming,” Loomis said. “People love them. They’re unique and thirst quenching.”

Responsible Service

While spiked slushies are relatively new products, retailers said that when it comes to responsible sales practices, the drinks—which are served by team members and not self-serve—are no different than beer and wine. “With any age-restricted product, we understand the responsibility that comes with the privileges of selling these products,” remarked Hartman. “Extensive training and operational procedures are developed and closely monitored to ensure that we are following the law. For all alcohol purchases, customers must present an ID before they can complete the purchase. In terms of spiked slushies, we require this before pouring the product.” Kraft added that in Pennsylvania, at least, the frozen drinks must be sold with a sealed lid.

Like any emerging product, adult slushies are not without their challenges. Demand skews toward warm weather months, for example. But operators like Rutter’s have begun promoting seasonal variants, such as the Spiked Shamrock in March, to consumer delight.

The right equipment—and proper maintenance—are also vital to a successful spiked slushie program, vendors noted. Cliburn advised weekly cleaning of slushie machines, as well as ongoing wiping down of condensation. Marketing and merchandising the drinks is also necessary, added Kraft, pointing to tactics like signage on beer coolers and the use of digital billboards.

While spiked slushies are currently limited to specific markets, retailers and suppliers agreed that they have the potential to expand if regulations allow. Galley doesn’t believe the drinks are merely a fad. “I think they’re here to stay,” he said. “After all, frozen alcoholic beverages have been around for a long time.” FIFCO’s Kraft encouraged retailers in markets where the drinks are legal to consider them. “Today, there can be so few incremental opportunities,” the marketer said. “Adult slushies offer a point of difference.”