2023 NACS Review

The annual National Association of Convenience Stores (NACS) trade show, held October 4-6 in Atlanta, was lively as usual this year, giving industry watchers a peek into the innovation strategies and growth plans of powerhouse global brands like Coca-Cola, Red Bull and Pepsi. The most recent edition featured the expected slate of new releases, both also the momentum behind buzzy trends – focus and cognition functionality and candy flavors for energy drinks, among others – still has plenty of gas in the tank.

Along with a more muscular coffee program, Coca-Cola’s presence at NACS mainly showcased product and packaging innovations within its “loved” legacy brands.

Coca-Cola Spiced, a new permanent sub-line that will rotate flavors in and out, starting with Raspberry in February 2024 in both full and Zero Sugar versions. Packaged in 12 oz. slim cans, Spiced isn’t meant to harken to winter seasonal flavors so much as offer “more bite,” or maybe simply a robust Coke experience. At a time when young consumers have so many other beverage options beyond CSDs, it’s imperative to provide a reason for them to choose Coke, the brand explained.

The Coca-Cola, Sprite and Coca-Cola Zero Sugar brands will transition to 12 oz. sleek cans (six SKUs total), a move aimed at capturing younger consumers.

That sleek can format is also a focus across CSDs: along with Coca-Cola Spiced, the Coca-Cola, Sprite and Coca-Cola Zero Sugar brands will also transition to 12 oz. sleek cans (six SKUs total), a move aimed at capturing those aforementioned younger consumers. The cans will provide for “dynamic marketing opportunities” over the next year, reps told us, and will be sold in singles primarily at small-format C&G.

Elsewhere, Pepsi’s sprawling booth teased updates for its diverse mega-brand portfolio with new products, packaging and positioning.

In energy, Pepsi’s distribution pact with Celsius has been the main story; one year into the deal, Celsius has taken a 10% dollar share in the category and continues to climb. Along the way it surpassed Rockstar, which Pepsi paid over $3 billion for in 2020 to own outright, and over recent years the brand has been tweaking its positioning and messaging to find a foothold in a category that has shifted to broader functional propositions.

At this year’s show, the featured innovation was Rockstar Focus, a zero-sugar 12 oz. subline promising “Energy & Mental Boost” via 200mg of caffeine and Lion’s Mane. The non-carbonated Rockstar Recovery line is also getting a pair of new flavors with unique ingredients — biotin, magnesium and zinc, specifically — that existing SKUs will not. Both are set to launch in January 2024.

In contrast, the Starbucks-Pepsi RTD coffee alliance continues to hum along with 77% market share of the category, so no major rethink is needed there. Instead, there was more incremental innovation: Frappuccino is embracing oat milk (the most popular alt-milk choice in Starbucks cafes) for the first time with a pair of new SKUs, Caramel Waffle Cookie and Dark Chocolate Brownie, each clocking in at at least 270 calories per 13.7 oz glass bottle.

And in a move that perhaps reflects the category’s evolution from specialty item to commodity, Starbucks Cold Brew (updated to be “smoother” and “more coffee-forward”) is moving from 11 oz. squat glass bottles into 12 oz. sleek cans in Vanilla, Chocolate and Caramel. The brand’s three-year old line of Nitro Cold Brew in 9.5 oz. cans has similar flavors (Vanilla, Caramel) but notably that line features a non-dairy black variety, while the updated non-nitro Cold Brews do not.

Much like Coca-Cola and Pepsi, KDP is reinvesting in its flagship trademark soda line to try to attract young consumers, and so far it seems to be working: permanent new SKU Dr Pepper Strawberry & Cream (available in both full and zero sugar varieties) did $300 million in total retail sales, reps at the booth told us, 85% of which was incremental to the trademark.

Core Hydration+, the more function-forward sub-line, lives outside of c-stores for the most part, which clears the way for a “full renovation” of Bai to be positioned as KDP’s enhanced water play in convenience. On the two flavors — Bing Cherry and Molokai Coconut, both launching in March 2024 — displayed at the NACS booth, the trademarked “WonderWater” name is now prominently displayed beneath the brand name, along with a callout for “New Great Taste, More Benefits.”

According to brand reps, Bai has been revamped with an improved sweetener formula, immunity support (vitamin C and zinc) and electrolytes. After dabbling in everything from purified water to teas and lemonade, giving the brand a more focused identity may help revive its fortunes.

The more the company grows (+$404 million over 52-weeks ended Sept. 9, per Nielsen), the more confidence GHOST seems to take in extending its lifestyle-fitness positioning into new categories and product types. And while not officially on display at NACS, the brand shared an early look at its newest innovation for early 2024: a five-SKU line of hydration drinks that represents its first release in resealable 16.9 oz bottles. We sampled Lemon Lime and Kiwi Strawberry flavors.

Giving GHOST fans a non-caffeinated RTD option — much like PRIME did, but the other way around — should help the brand step further into the mainstream. GHOST’s line is set to launch at GNC and will be differentiated by 900mg of electrolytes (including magnesium and calcium) and 100% daily allowance of vitamin C.