C-store traffic dips as PepsiCo, Driscoll’s and Athletic Brewing target new formats
Executives from major food and beverage brands outlined strategic shifts to address declining foot traffic and rising costs in convenience retail, while identifying untapped growth in non-alcoholic beer and fresh produce.
Executives from PepsiCo, Driscoll’s and Athletic Brewing addressed the state of convenience retail at the Wall Street Journal’s Global Food Forum, highlighting a sector grappling with declining foot traffic, economic pressure and high fuel costs. Mike Del Pozzo, president of PepsiCo Beverages, noted that c-store trips are down year-on-year as consumers’ wallets tighten and gas prices soar, creating significant affordability challenges across the channel.
Del Pozzo pointed to the rising cost of entry for basic items, noting that a 20-ounce carbonated soft drink is now pushing $3. To combat this, PepsiCo is testing new price points and pack sizes, including a 13-ounce can and mini cans priced at approximately $1.50. The company is also working on individualised promotions to target specific customer needs and increase traffic, acknowledging that while results may take time, the trajectory is clear.
Fresh produce presents another area of opportunity, though current infrastructure often falls short. Driscoll’s CEO Soren Bjorn stated that the company’s existing clamshell packaging is inconvenient for c-stores as it does not fit in cup holders. In response, Driscoll’s is rolling out a new packaging design called the Rainbow Pack, which features three compartments for different types of berries in one container, aiming to better suit the convenience store environment.
The non-alcoholic beer category is also seeing robust growth, with volume sales surging 111% and dollar sales growing 159% from 2021 through 2025, according to the Brewers Association. Despite this growth, non-alcoholic beer accounted for only 2.5% of beer sales by volume in 2025, leaving significant room for expansion.
Athletic Brewing co-founder and CEO Bill Shufelt described convenience stores as “the biggest whitespace” for his brand. Athletic Brewing holds an 18% share of the non-alcoholic beer category in the US but has limited presence in convenience stores, with stock currently available at many Kwik Trip stores in the Midwest and some Foxtrot locations. Shufelt believes the channel fits the active, on-the-go lifestyle associated with the brand, marking it as an exciting frontier for future growth.
