Pay for your gas and have a Coke, please!

Andy Uhler Feb 9, 2016
Share Now on:
HTML EMBED:
COPY
Coca-Cola and Pepsi hope low gas prices will translate into higher sales at station convenience stores. Justin Sullivan/Getty Images

Pay for your gas and have a Coke, please!

Andy Uhler Feb 9, 2016
Coca-Cola and Pepsi hope low gas prices will translate into higher sales at station convenience stores. Justin Sullivan/Getty Images
Share Now on:
HTML EMBED:
COPY

Consumer companies like Coca-Cola and PepsiCo both announce earnings this week and hope gas savings will translate to people buying more of their products. Jeff Lenard, spokesman for the National Association of Convenience Stores, said when people think about convenience stores, they think about beverages.

“Low gas prices don’t make you thirstier, but it gives you permission to satisfy that need,” he said. “People see the savings at the pump, they go right inside the store and they have their immediate consumption.”

The Bureau of Economic Analysis in Washington D.C. said Americans spent more than $70 billion on non-alcoholic beverages in December 2015. Convenience stores saw a 5 percent bump in sales in the fourth quarter.

Coca Cola and Pepsi still demand a lot of shelf space, but not just for red and blue cans, anymore. Jeffrey Klineman, editor of the beverage trade media company, BevNET, said Americans, especially young ones, want more options.

“The idea of healthy body refueling has become much more important to the convenient store business,” he said.

Coca-Cola and Pepsi are banking that even if consumers don’t buy a soda, they’ll pick up one of their bottled waters or energy drinks.

If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air.  But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.

Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.

When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.

We’re here for you.

As COVID-19 reshapes our economy, our newsletter will help you unpack the news from the day.