C-store industry sales up.

Statistics released by the National Association of Convenience Stores (NACS) at its annual show in Chicago revealed that while overall industry sales showed an increase in 2002 of 2.7 % to $290.6 billion, industry profits tumbled 24.3% from the previous year. The decline was driven primarily by higher wages and increasing costs for insurance and rents.

Most product categories grew their share of in-store sales, with the fourth-ranked beer category jumping to an 11% share of c-store overall sales. Non-alcoholic beverages, ranked just above beer, also increased their share, to 12.2%. Beer sales are expected to grow by 3.0% in 2004. NACS research shows that consumers indicated they "most often" purchase beer at convenience stores 23.1% of the time, trailing supermarket/grocery stores (40.2%) and liquor stores (24.9%).

CONVENIENCE STORE INDUSTRY
Top 10 Product Categories *
As a percentage of in-store sales

                            2001    2002

1. Cigarettes               38.7%   36.0%
2. Foodservice              11.4%   12.3%
3. Packaged Beverages       11.7%   12.2%
   (non-alcoholic)
4. Beer                     9.9%    11.0%
5. General Merchandise      3.6%    4.0%
6. Candy                    3.4%    3.9%
7. Fluid Milk Products      3.0%    2.8%
8. Other Tobacco            2.7%    2.7%
9. Salty Snacks             2.3%    2.7%
10. Packaged Sweet Snacks   1.8%    1.8%

* Not including sale of motor fuels, which are now sold in an estimated
80% of c-stores.

Source: NACS 2003 State of the Industry