CSP Daily News

To view this email as a web page, click here

SNAP, tariffs, chocolate prices put pressure on center store sales

Faced with the largest SNAP cut since food stamps were launched in the 1960s, convenience stores are seeing further challenges to their center store.

A storm of economic, social and governmental shifts has positioned center store in the crosshairs. Simply put, status quo or minor tweaks will compromise core categories like salty and sweet snacks, chocolate, gum and mints.

Consider:

Weight-loss treatments. Popular brands like Wegovy, Ozempic and a rapidly growing lineup are curbing consumers’ cravings for traditional snacks, in favor of protein-heavy solutions.
SNAP. Some states and municipalities are looking to ban sodas and potentially other c-store staples at the same time as the federal government is slashing SNAP funding by $186 billion between now and 2034.
Inflation. The industry is seeing a surge in the wholesale cost of chocolate and is worrying about how this may impact chocolate and other candy sales.
Tariffs. After great discussion for months, tariffs are now taking hold, as many of America’s largest trade partners face between 15% and 50% fees. This also includes American companies where items are produced overseas.
Labor. Deportations and tightened boundaries have hit many major manufactures.

Unsurprisingly, many of the retailers registered for Center Store Forum say that unit sales in 2025 are flat or down.

What will you do? How can our channel pump fresh life into this staple category? Our lineup of data and retail strategists at this important event in September will introduce solutions and ideas to jumpstart what has been our channel’s most prominent market basket companions.

—Mitch Morrison

The State of Snacking: How c-stores are leaning into higher-protein, healthier snacks
With salty snack dollars slumping, leveraging ‘sweet spots’ and navigating the ‘snackscape’ could help regain share

Could GLP-1 drugs drive a reduction in package sizes?
A new analysis of the popular weight-loss drugs suggests a pivot from CPG companies to smaller food products

Chocolate companies are raising candy prices
‘We’re making a price adjustment with our retail customers,’ a Hershey spokesperson tells CSP

Consumers Are Favoring Snacks With Functional Benefits
51.6% of consumers are purchasing products with probiotics, which is up 13.5 percentage points from 2020, says Circana's Sally Lyons Wyatt