Food and beverage innovation is playing an increasingly important role in convenience store retail, and operators are seekingto drive traffic and extend customer dwell time. At the same time, this channel is attracting more attention from top food and beverage executives—some of whom already have a strong presence in convenience stores, while others have yet to truly enter.

However, converting this optimism into substantial sales growth remains no easy task, especially asconsumers tighten spending under sustained economic pressureand price sensitivity rises. These headwinds were a recurring topic at The Wall Street Journal's Global Food Forum, where executives from major food and beverage companies gathered to discuss the forces shaping the entire food industry.

C-Store Dive attended the second day of the event's agenda. Below are excerpts of remarks from three executives on the state and opportunities of convenience store retail.

Addressing affordability challenges requires creativity

With consumer wallets tightening and gas prices soaring to painful levels due to the war with Iran, convenience store traffic has declined year over year. Mike Del Pozzo, president of PepsiCo Beverages, acknowledged that convenience stores are "a huge business" for the company's beverage operations, but rising costs have posed challenges across the industry.

"Think about convenience stores—a 20-ounce carbonated soft drink is now approaching $3," he said.

Del Pozzo said that to address affordability challenges in convenience stores, PepsiCo is testing new pricing and packaging formats, including 13-ounce cans and mini cans that could sell for around $1.50.

He emphasized that the priority for PepsiCo and its convenience store partners is to attract more customers into stores and get them to buy more products. To that end, PepsiCo is rolling out personalized promotions in the convenience store channel.

"We're thinking hard about: 'How do we use capabilities and technology to ensure that the products consumers want are in front of them at the right time,'" he said.

Del Pozzo acknowledged that PepsiCo is still in the early stages of this journey and expects it will take time to see results. However, he added that PepsiCo is confident in the overall direction.

"We're stepping back and looking at this channel, which is facing traffic challenges, from a different perspective," he said.

Convenience store fresh food needs convenient packaging

Convenience store retailers are now more than everfocusing on prepared and fresh food. While fresh produce may fall into this category, many convenience store operators do not have the ideal facilities to offer such items. Small fruit or vegetable cups placed in open coolers are about the extent of what most convenience store retailers can do in this space.

So when asked about the opportunity convenience stores present for berry giant Driscoll's—whose products are ubiquitous in grocery stores and warehouse clubs—CEO Soren Bjorn emphasized the need for convenient packaging. He said Driscoll's current clamshell packaging is not ideal.

"The clamshell isn't inconvenient, but it can't fit into a cup holder or something like that," Bjorn said. "So, I think that's where our opportunity lies."

Bjorn said Driscoll's is rolling out a new design called "Rainbow Pack," which features three compartments in one container for different types of berries. Although the new product still doesn't appear to fit in a cup holder, Bjorn said Driscoll's is continuing to move toward more convenient packaging with this offering.

"Making products more convenient by rethinking packaging is definitely on our radar," he said.

Convenience stores are an "exciting frontier" for non-alcoholic beverages

Non-alcoholic beer is having its moment in the spotlight. According to data from the Brewers Association, while regular beer sales have seen low single-digit declines,non-alcoholic beer has posted double-digit growth in both volume and sales for four consecutive years. From 2021 to 2025, non-alcoholic beer volume surged 111%, and sales grew 159%.

However, according to the association's January research, non-alcoholic beer accounted for only 2.5% of total beer sales in 2025. Bill Shufelt, co-founder and CEO of Athletic Brewing, said no segment is better suited for the category's breakout than convenience stores, which he called the brand's "biggest white space."

"As the number one brand in the national non-alcoholic beer category, we have about an 18% share, but we haven't really entered this channel yet, so that's an exciting frontier," Shufelt said.

Athletic Brewing does have a small presence in convenience stores. According to its website, its non-alcoholic beers are available at multiple Kwik Trip locations in the Midwest and at some Foxtrot stores. But on a broader scale, convenience store retail remains an untapped market for the brand.

"I do think it's a great fit for the active, on-the-go lifestyle our products represent," Shufelt said of convenience store retail.