Cigarettes Lost 11.5 Points of C-Store Sales Since 2016

Cigarettes' share of convenience store inside sales has fallen 11.5 percentage points since 2016, Jasmeet Chawla, vice president of merchandising for 7-Eleven, said during a Wednesday tobacco session at the 2026 NACS Show. Over the same period, other tobacco products' share has surged nearly 4 percentage points, and gross profits have grown over the past three years even as cigarette sales decline.

That shift makes alternative nicotine products an increasingly important priority for the channel, Chawla said.

"This used to be a category that was led by combustors … cigarettes were king, that's what everybody used," Chawla said. "Today, we have new innovative categories like modern nicotine and vape."

A major driver is poly-usage — consumers who use multiple nicotine products. Chawla's data shows 87% of modern oral consumers also use other forms of nicotine, such as vape and cigarettes, compared with 52% of cigarette smokers.

"You can understand why we need 69 different items [in the back bar] to satisfy the needs of this growing consumer," he said.

What do younger shoppers expect from c-store tech?

During a panel on what convenience means to Gen Z and Gen Alpha customers, executives watched a video in which members of both generations shared how technology could improve the c-store experience. Notably, they did not ask for digital ordering tools.

"I think what's interesting about what these consumers say is, they don't mention online ordering," said Crystal Maggelet, CEO of Maverik. "They don't mention mobile payment."

Younger consumers, particularly Gen Alpha, have lived their whole lives with this technology. "They're so used to those sorts of technologies being available to them that it doesn't even come to mind when they think about convenience," Maggelet said.

For retailers working to convert consumers under 30 into lifelong customers, technologies like mobile pay and online ordering are table stakes. "They're not even going to ask you for [the technology]," said Frank Gleeson, president and CEO of NACS. "If you don't have it, you're in trouble."

The young consumers in the video did mention self checkout and loyalty programs. Kevin Smartt, CEO of Texas Born convenience stores, said loyalty needs to stay simple, intuitive and rewarding.

"[The c-store industry] has just kind of been a little bit behind the curve... we're a little clunky in how we kind of operate," Smartt said. "I think we have a challenge as an industry to speed that up."

How can retailers win back store trips?

In a Cadent Consulting Group study of 2,000 convenience shoppers, 25% considered going elsewhere during their most recent c-store visit. Richard Bode, CEO of Cadent, said retailers face several threats, including improved fuel efficiency, shorter commutes and growing competition from big-box retailers, grocery stores and QSRs. C-stores also battle long-standing negative consumer stigmas about the industry, Bode added.

Cadent outlined a three-tiered, pyramid-shaped trip hierarchy:

• Fundamentals (foundation): high prices, dirty stores and restrooms, poor food quality and slow service are the top reasons consumers cut visit frequency.
• Growth levers (middle tier): offerings such as the right product selection.
• Owned experience (top): elements like a strong loyalty program.

Bode urged retailers to assess where they stand before picking a tier. "If the fundamentals are key, focus on those first," he said. "If those are in place, think about foodservice credibility — the right items for the right cohort."

What happens to THC beverages on Dec. 11?

A federal bill that could ban 95% or more of the THC beverage industry is slated to go into effect Dec. 11. If it takes effect, products would be limited to 0.4 milligrams of THC or under — a cap that would remove THC beverages and a number of therapeutic products from shelves.

"Consumers are going to be upset when their products go away from shelves," said Diana Eberlein, chair of the Coalition for Adult Beverage Alternatives, during a Wednesday session on the adult beverage subcategory. Meanwhile, "the bad actors are going to remain on shelves because it's very hard to enforce and remove those products," she said.

Eberlein said that if the products were legalized and regulated, the industry could expand from its current $1 billion value to over $30 billion. Education remains crucial to regulating THC beverages the way alcohol is regulated, said Eberlein and Hayley Thrift, director of public relations for Spinx.

"Regardless of what happens in December, THC beverages will be back," Eberlein said. "THC beverage has demand. The consumer wants it. The wholesalers, the retailers want it. It's continued to grow, and we have a lot of momentum."

Which familiar brands showed up in new categories?

On the show floor, nostalgia drove new product formats. Popsicle lent its flavors to lollipops, while Creamsicle became candy twists. Jolly Rancher appeared as a frozen drink, popping boba and gummies, joined by Nerds, Trolli and Sour Patch Kids frozen drinks. Peeps is releasing a Fruity Pebble crossover, and C4 launched energy drinks evoking breakfast cereal flavors.

Suzy Badaracco, president of Culinary Tides, a forecasting think tank and trend intelligence firm, called this trend "newstalgia" in a Tuesday education session — foods that evoke nostalgia with a fresh twist. For brands with decades of name recognition, the show floor suggests the fastest route to new categories runs directly through their existing equities.