OAKBROOK TERRACE -- One of convenience stores’ strengths is under attack in the beverage space. For years, forward-thinking retailers have held treasured the fact that they are typically the first place that consumers can try new products. That fact gives c-stores the opportunity to provide the occasional adventure of hunting for what’s new.
But two new-product releases (or re-releases) from the biggest beverage names in the industry will challenge that advantage.
Coca-Cola Co. brought its Mountain Dew-like Surge back to market last month exclusively through Amazon. And this week, PepsiCo announced it will introduce its new mid-calorie line extension—Pepsi True—exclusively through Amazon.com.
A Pepsi spokeswoman told the Wall Street Journal that distributing Pepsi True through Amazon.com will give it a chance to raise consumer awareness for the product and gauge consumer response before it begins putting the new soda on shelves at convenience stores, supermarkets and other retail outlets.
Pepsi True, which is scheduled for release in mid-October, will be made with sugar and stevia, a natural sweetener. It will come in a 7.5-oz. can with 60 calories.
Coca-Cola was more high-minded in explaining its go-to-market strategy for 12-packs of 16-oz. cans of Surge.
"Today marks an important day in The Coca-Cola Co.'s history, because we have so many firsts to celebrate: first re-introduction of a brand that has been discontinued and revived due to popular demand, first launch to rely solely on social and digital media and first re-introduction of a brand via ecommerce," said Wendy Clark, president of sparkling and strategic marketing for Coca-Cola North America.
Over the years, Coca-Cola said, Surge has achieved a cult following. Online sites have cited it in articles and posts on 1990s nostalgia, and the product's absence has spawned online fan groups. The largest group, "The Surge Movement," amassed more than 128,000 Facebook followers while advocating for the return of their favorite beverage.
Couple these moves with the recent news that the U.S. Postal Service is planning to deliver “groceries and other prepackaged goods” to homes and it’s clear the next phase of online shopping is upon us. And this time the target is squarely on the backs of convenience stores.
That leaves c-stores with the advantage of satisfying immediate-consumption needs. How can the industry up the ante on that advantage? And how can it maintain the value of that hunt for what’s news?
There is an advantage here. As the Pepsi spokesperson said, Pepsi True has the opportunity to prove itself on the e-commerce market before coming to brick-and-mortar retail. Every retailer wants that guarantee that there’s an audience for a new product before giving up space to what could be an also-ran that they’ll be looking to unload in a couple months.
But to me, the value of being first-on-the-block with something new trumps the built-in audience, because by the time one c-store starts stocking True, so will every other store in town.
What’s your opinion? Share it with me at sholtz@cspnet.com.
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