Convenience store cold vaults looked noticeably different this summer with several high-profile limited-time-only (LTO) beverages sprinkled in. These exclusive beverages—some of which are only available at specific stores—helped drive traffic and build basket sales for retailers. The here-today-and-gone-tomorrow beverages are charting a new course in the competitive drinks category and giving retailers the opportunity to stand out from the crowd.
“At least half of c-store operators consider LTOs to be a central part of their offerings and are a good way to allow customers to try new drinks while adding value,” said Bryan Santee, chief commercial officer at PepsiCo Beverages North America. PepsiCo released Pepsi Lime and Pepsi Peach LTOs this summer, along with several Mountain Dew limited releases. “People are very loyal to our PepsiCo brands, which means LTOs can leverage our equity to help partners boost sales while also delivering something new and exciting for our fans.”
In addition to the PepsiCo products, other recent LTOs have hailed from the likes of Keurig Dr Pepper, Zoa energy drink and numerous beer and flavored malt beverage marketers.
The wave of new releases of late could be satisfying consumer angst over uncertain economic times. Claire Conaghan, associate director and trendologist at Datassential, remarked that while consumers feel they can’t afford to go on a vacation during a difficult economy, they will splurge on visits to the grocery store. “An LTO beverage can be a splurge,” she noted. “They’re fun and appeal to younger consumers. These consumers love to try new things.”
Experience Enhancers
Dr Pepper Creamy Coconut and Creamy Coconut Zero Sugar made brief appearances in c-stores this summer. According to Jeff Tabor, senior vice president, small format at Keurig Dr Pepper, company research shows that “consumers are looking for new and distinctive beverage flavors to enhance their convenience-store experience,” particularly during key seasons such as the summer or holidays.
“Introducing limited-time offerings like this summer’s Dr Pepper Creamy Coconut, a coconut-infused variation of the original 23 flavors, can help convenience-store operators increase cold vault conversion rates and overall incremental sales,” Tabor said.
Pepsi Lime and Pepsi Peach, meanwhile—announced in tandem with the brand’s summer grilling partnership with chef Bobby Flay—were available during the early summer in both 12-ounce cans and 20-ounce bottles. Santee called response to the products “exciting,” and noted that the LTOs are a “great vehicle to test new cola options, which our consumers have come to expect of us.”
Pepsi’s portfolio mate Mountain Dew released a trio of patriotic-themed LTOs over the summer. The “Red, White and Blue” series featured Star Spangled Splash (red in color and berry flavored), Freedom Fusion (frosty white in color, with a lemonade-white peach flavor) and Liberty Chill (with a blue hue and berry taste). Santee said the “buzz surrounding [the brand’s summertime LTOs] was electric and positive,” and that Mountain Dew fans look forward to the one-offs.
“Mountain Dew is committed to LTOs because they generate excitement for our dedicated fanbase, build brand loyalty and bring new drinkers into our portfolio,” the PepsiCo executive noted. “Our fans have built a cult following for our LTO flavors as they generate a sense of novelty and exclusivity while keeping Mountain Dew fresh and relevant.”
Energy drinks are also active in the LTO space. Red Bull’s Summer Edition offering, such as this year’s Curuba Elderflower, is always widely anticipated. Indeed, according to Zoa energy drink, new flavors are nearly as important to consumers as familiar ones.
“When consumers cite what is especially important to them when purchasing an energy drink, 47% cite it’s finding a familiar flavor and 40% cite it’s finding a unique flavor,” reported Brenda Jones, senior vice president, business development, at Zoa energy drink. “Consumers love both.”
Zoa unveiled a limited-edition green apple flavor in channels outside of c-stores in the spring, and Jones said the response was positive. “When deciding where and how to launch a new LTO, we have to consider minimum production quantities, complexities of distribution and the ability to market the product effectively,” she explained.
The here-today-and-gone-tomorrow beverages are charting a new course in the competitive drinks category.
Traffic Drivers
In recent years, LTOs have also found a home in the beer category, particularly among craft brews. But larger players are also catching on.
In 2023 Fifco USA introduced Labatt Blue Light Apple for summertime distribution. “Response was really hot so we decided to continue the program, but with a different flavor for 2024,” Cedric Smith, chief sales officer, said. This year, the brand offered up Labatt Blue Light Raspberry Lemon, which provided the brand an opportunity to capitalize on the growing “flavor-fusion” trend, as well as to build upon the success of the apple-flavored variant.
Numerous brewers have offered seasonal beers for years. “Our seasonals are a popular choice in many convenience locations,” said Ellie Preslar, chief commercial officer at Sierra Nevada Brewing Co. The California-based brewery typically launches four seasonals per year—a winter-spring release, Summerfest lager, Oktoberfest and Celebration Fresh Hop IPA, the most popular in the line. “Fans of that beer look forward to the release, and it does well in the market year after year,” the beer executive noted.
At Mendez Fuel, with stores in south Florida, customers start clamoring for fall seasonals like Oktoberfest and pumpkin brews as soon as the calendar page flips to September, Andrew Mendez, co-owner, said. That’s fine with him, as seasonal beers “help to get people into the store.”
Some c-stores, such as Pennsylvania’s Rutter’s, even partner with breweries on exclusive LTOs. This summer’s Don’t Have a Cow IPA, produced in collaboration with Evil Genius Beer Co., followed a similar partnership with Lancaster Brewing from 2021-2023. “We’re always looking for fun and unique ways to offer customers options they can’t get anywhere else,” Adam Long, senior category manager at Rutter’s, said about the one-off brews. “By limiting the time available, we can keep the spirit of excitement going.” Not only have the beers resounded with customers; Long noted that they’ve also received great reviews on public platforms.
Exclusively Yours
Packaged beverage marketers have also been teaming up with retailers on limited-edition drinks exclusive to those stores. PepsiCo has been particularly aggressive with the practice, partnering with several large c-store retailers recently on unique offerings.
This year, Mountain Dew teamed up with 7-Eleven, Speedway and Stripes stores on Mtn Dew Infinite Swirl, while Gatorade paired with the chains on Thirst Quencher Midnight Ice, a limited-edition flavor. The sports drink also partnered with Circle K this summer on the fruity Gatorade Thirst Quencher Lightning Blast flavor.
“We know that some of our fans enjoy the ‘hunt’ for certain LTOs that are only available at select stores or markets,” Santee explained, “so we work closely with our retail partners to develop special flavors for their customers.” He added that exclusives provide an opportunity for c-store retailers to differentiate themselves in the marketplace and drive store traffic. “It’s a great way to give consumers a reason to come back in and try the latest, limited-time offerings,” Santee said.
Exclusive LTOs don’t have to be just summertime drinks, though. Late last year, Zoa partnered with Sheetz on Dwanta’s Holiday Punch, a play on the energy drink founder Dwayne “The Rock” Johnson’s name.
“Sheetz, like Zoa, attracts a younger crowd that cares about health and convenience,” Jones said of the collaboration, noting that the product was supported with pump radio ads and point-of-sale (POS) materials. “Consumer response was fabulous as we sold out of all inventories prior to the holiday,” she reported.
Convenience retailers are generally pleased with most LTO beverages, as well as the traffic and excitement they bring to their stores. In July, Michelle Jackson, manager at Ready Mart in Asheboro, North Carolina, said “Dr Pepper Creamy Coconut is going over very well. I’m going through a case about every two weeks.”
Meanwhile, Rutter’s Long reported, “We work closely with the brand teams in preparation for new launches and ensure that we allocate space in our coolers to support them.” Rutter’s also utilizes POS promotions, incremental coolers and displays, as well as cross-promotions to drive attention to the new products. Missouri’s Signal Food Stores, meanwhile, utilizes tools like temporary shippers and cooler suction cups to merchandise alcoholic and non-alcoholic LTO beverages, Sean Bumgarner, vice president, said.
“By limiting the time available, we can keep the spirit of excitement going.”
FOMO Factor
The biggest benefit to merchandising LTO beverages, retailers said, is the incremental sales they provide. “LTOs lead to additional purchases,” said Bumgarner, “as the customer may purchase their normal beverage and the LTO.” Long added that the buzz and anticipation that the marketers build for the products helps create a “fear of missing out” among consumers, and they’ll pick up the LTO in addition to their primary purchases.
The Rutter’s executive noted, however, that there can be risks with the limited-edition products. “The challenges most often center around planning and forecasting,” Long said. “If forecasts aren’t accurate, they result in either missed sales or overstock positions.” But if planning is spot on, “you can reap the benefits of being the preferred place to stop as new seasonals and LTO launches occur,” he said.
Creators of limited-edition beverages agree that efficient ordering is key to the success of the products in c-stores. “Don’t pull out fast movers for an unknown LTO,” said Fifco’s Smith. He and Zoa’s Jones said merchandising is just as important. “Make sure it’s visible so consumers know it’s there,” Smith added. “Use all of your tools when it comes to merchandising.” He and Jones point to items like suction-cup racks, cooler stickers, 2-for-1 offers, singles bins and pump toppers to promote the drinks.
The LTO beverage wave is expected to continue, and convenience retailers remain committed to the products. “It’s a fun way for brands to remain innovative, test ideas and generate consumer interest outside of promotion and pricing,” Long said. “And it’s a great way for retailers to build baskets.”