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Drink from the profit fountain: liquid flows out, cash flows in. (Report on Fountain).

Publication: Beverage Aisle
Publication Date: 15-FEB-03
Format: Online
Delivery: Immediate Online Access

Article Excerpt
There's something about the fountain area that customers are drawn to. Maybe it's the lively and colorful displays, or the fact that they can load up their drink with ice, or perhaps it's the prospect of a 64- ounce thirst quencher to get them through the next 50 miles on the road. Whatever it...

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...is, retailers have to be wary of taking the fountain for granted--sure, it's a key profit center, but without the proper promotion and maintenance, those profits could go flat.

According to the Convenience Store News 2002 industry Report, 96.5 percent of c-stores offer cold dispensed beverages, and 79.4 percent feature frozen dispensed. Over the next five years, according to the National Association of Convenience Stores (NACS), fountain drinks--including frozen dispensed drinks--are projected to grow at a rate of 5.9 percent and have the highest marketshare gains of non-tobacco categories, at 3.3 percent. That growth is driven by continued innovation and adaptation of the items popularized by niche specialty players.

"Retailers need to communicate to consumers that they're in the fountain business," says Pete Pappas, Pepsi's director of national sales for the convenience channel. "Whether through cup promotions, price...

NOTE: All illustrations and photos have been removed from this article.



More articles from Beverage Aisle
7-Eleven: big gulps & big sales. (Excellence in Beverage Retailing)., March 15, 2003

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