2026 Industry Outlook
Stephen Bown
Vice-president sales—convenience retail
Coca-Cola Canada Bottling
At Coca-Cola, we are confident and enthusiastic about the opportunities 2026 will bring. This year promises iconic Canadian moments—from the Winter Olympics to FIFA—that will unite fans and consumers through their shared passion for sport and connection. These events are more than milestones; they represent strategic opportunities for convenience stores to deliver joy and create memorable experiences. With comprehensive 360-degree strategies and an unwavering commitment to flawless execution, we are prepared to help retailers capture this excitement and translate it into incremental growth.
Innovation will be a key element to this vision. Shoppers can look forward to variety in package sizes, on-trend flavours and options aligned with wellness trends. To support this, we are implementing omni-channel programs designed to engage consumers wherever they shop—online or in-store. Working closely with our partners, we will energize the store with activations and programs that resonate with today’s consumers and elevate the shopping experience. Convenience stores remain a vital growth channel, uniquely positioned to serve on-the-go shoppers who prioritize speed, accessibility and variety.
Coca-Cola is committed to driving success for retailers by increasing traffic, building baskets and enhancing purchase frequency. Guided by shopper insights and executed with precision, our goal is to deliver value and excitement, while driving sustainable growth for our retail partners.
Michael Bonelli
Senior vice-president, sales and trade marketing
Imperial Tobacco Canada
Retailers have always been empowered to provide adult Canadians with regulated products, such as lottery tickets, alcohol and cigarettes. In 2026, convenience stores will go beyond their traditional role; they will become key partners in Canada’s journey towards smoking cessation. These small businesses are uniquely positioned at the heart of communities, combining trust and accessibility with a proven track record of responsible sales. By enforcing age verification, upholding provincial regulations and offering legal, regulated products, they can help lead a shift towards innovative solutions that support adult smokers to quit.
That’s why the current situation makes zero sense. Zonnic, Canada’s first nicotine pouch authorized by Health Canada as a nicotine replacement therapy (NRT), was designed to help adult smokers quit. It was originally approved for sale alongside other quit aids, like patches and gums, and made available where smokers buy their cigarettes: convenience stores and gas stations. When Zonnic was sold in convenience stores, the positive impact was impressive. Smokers were switching, retailers were supporting and public health outcomes were improving.
Then, a federal ministerial order was issued, forcing Zonnic off convenience store shelves and behind pharmacy counters. Overnight, access was restricted, pharmacists were burdened and retailers lost a regulated product that supported both their business and their customers’ quit journeys.
As we look to 2026, it’s time to restore balance and logic. We hope this restrictive trend will be reversed so that authorised cessation products like Zonnic can once again be sold in regulated retail environments. The government has an opportunity to reaffirm a tried, tested and trusted approach, one that allows convenience stores to continue supporting adult Canadians on their smoking cessation journey.
Let’s work together to make them part of the solution and accelerate progress towards a Smokeless Canada by 2035.
Roberto Caruso
Director, real estate & construction
Aisle 24
As we head into 2026, Canada’s convenience retail sector is evolving rapidly, driven by shifting consumer habits, economic pressures and the convergence of convenience, technology and real estate. The sector is not only highly competitive among traditional convenience players but also faces growing pressure from large-format grocery stores that are expanding into quick-trip and urban markets.
Today, Canada is home to more than 15,000 grocery and convenience outlets, but consumer behaviour is shifting: more than 30% of Canadians now report difficulty accessing flexible shopping options, particularly after-hours or between major shopping trips. Aisle 24 is built for this future. We provide a 24/7, fully automated retail experience that gives customers the power to shop on their terms whenever a need arises. Whether it’s an item forgotten on a big-box grocery run or a spontaneous social event with more guests than expected, Aisle 24 offers immediate, local access to essentials without the lineups or closing hours.
One of the most powerful trends shaping 2026 is the rise of frictionless retail as an amenity, particularly within urban developments, residential towers and student housing campuses. Developers and campus operators are increasingly integrating retail amenities into real estate projects to improve tenant experience and activate underutilized square footage. According to recent data, more than 55% of new multi-residential or campus developments in Canadian cities now include or plan to include on-site smart retail options.
These frictionless formats are becoming expected lifestyle features, not perks. Aisle 24 fits seamlessly into this trend, delivering a turnkey, no-staff solution that supports both resident needs and building performance goals. At the same time, traditional franchise models have become increasingly rigid and capital-intensive, excluding many aspiring business owners. Aisle 24 is responding with a new licensing model that dramatically lowers the barrier to entry. It provides licensees with the full benefit of our technology platform, supplier partnerships and brand ecosystem without the overhead and operational restrictions of a traditional franchise. We’re putting entrepreneurship back in the hands of local operators, while scaling our national footprint.
The shift toward “in-fill retail” and hyper-local convenience is accelerating. especially in high-density communities where time, access and flexibility matter most. Automation and self-service re[1]tail formats are forecast to account for 15% to 20% of new store development in Canada’s convenience sector by 2026, confirming that this is more than a trend; it’s a long-term shift.
Looking to 2026, the winners in the convenience sector will be those who not only adapt but lead: delivering on-demand access, removing friction and building ecosystems that serve both consumers and partners.
Curtis Davison
Vice-president, general manager, Canada
Jack Link’s Protein Snacks
When we look at the new year, the biggest trend in food is protein and its presence on social media. If you walk into any retail stores or search online, you’ll see more protein bars, high-protein food offerings and protein being added to certain beverages and even cereals. Much of this is being driven by the growing social media popularity of high-protein diets and amplified by the growing popularity of GLP-1 drugs requiring higher protein consumption.
Here at Jack Link’s, we like to think of ourselves as the original high-protein snack, a provider of high-quality protein products like our beef jerky and we are well positioned to support consumers on this trend. We plan to innovate beyond our core jerky and meat stick products into new forms and formats that lean into better-for-you high-protein snacking and you will learn more from us on our social media.
Our social [media] presence will be amplified through our global partnership with Mr. Beast (Jimmy Donaldson) who has more than 500 million followers on YouTube alone. This partnership will see us launch a new line of co-branded meat snacks, known as Beast Packs. Look for our products to be featured in his upcoming Beast Games 2 coming soon to Amazon Prime and in stores now across all retailers in Canada.
Jeff Dafoe
President
Premier Brands, Ltd.
Ontario’s evolving beer market is rewriting the rules for consumers, retailers and suppliers alike. What was once a tightly controlled, dual-channel environment has become one of the most dynamic categories in Canadian beverage retail—defined by accessibility, variety and innovation.
For consumers, expanded retail access via the convenience channel has transformed beer purchasing from a planned occasion into an impulse opportunity. Assortment, access and affordability are expanding consumption occasions.
For retailers, beer is a growth engine. With deregulation, C&G stores now view beer as a traffic driver that increases basket size and margin contribution. And the future is bright—retailers can benefit from forthcoming logistics optionality, improved category management and data partnerships to optimize profitability, shelf performance and enhance customer experience. For suppliers, success no longer depends strictly on scale—innovation, whether in packaging, ABV or flavours, is driving growth in this race-ready channel.
Brands that integrate marketing, retail execution and digital storytelling are positioned to outperform legacy competitors. Ontario’s beer revolution represents more than a policy shift— it’s a commercial and cultural reset. Those who adapt to this consumer-centric marketplace will shape the next decade of beer in Canada. Viva la beer revolution!
Marc Goodman
Vice-president and general manager
7-Eleven Canada
Value. Value. Value. If we thought the economy was challenging in 2025, then buckle up for 2026. Canadians are just starting to feel the impact of tariffs with rising unemployment rates, rising consumer prices and an overall weakening economy. While we can likely expect further rate cuts in the new year, the bottom line is the state of the economy will continue to challenge consumers who have less disposable income and will be more choiceful on what and where they spend their hard-earned dollar.
To win in such an environment starts with value, more specifically, competitive retail pricing. There’s long been an industry belief that customers are willing to pay a premium because of our convenient locations and hours of operations, and while that may have been true in the past, that is not the case today. Premium pricing is now synonymous with insult pricing. If we don’t adjust our pricing to meet customers’ needs, then we should expect to see lower traffic counts, lower unit sales and eventually fewer convenience stores, as customers change their shopping habits from our channel to shop more frequently at club and discount retailers.
There are big opportunities for us as an industry as Canadians continue to look to pay less, while wanting to get more, without sacrificing quality, including entering or expanding one’s private brands assortment, giving customers choice versus only offering the higher priced leading national brands. It means adjusting your assortment to offer more bulk and larger package formats offerings versus singles. Opportunities are endless to attract the value seeking customer.
Michael Howe
General manager
Washlinks
Developing a car wash is an expensive endeavour, however as time progresses, outside forc[1]es of the car wash industry are making it more and more of an uphill climb to success. At one time, it was easy to source property, confirm zoning and apply for permits. Today, however, it’s becoming increasingly difficult to find a suitable property for a car wash, while simultaneously finding a property that is in fact zoned for car wash.
Depending on the municipality, exorbitant development fees are added to anyone applying to build a car wash. Red tape is gaining ground by the minute, and the industry is hearing that properties are taking up to three years or more to get a shovel in the ground.
Environmental assessments become a critical component of a car wash approval and with it brings some significant compliance requirements when it comes to water. While the water may be plentiful, there are water discharge restrictions that come into play that limit how much you can put into the sewer system for treatment. This has spawned a growing reclaim water industry that adds an additional layer of cost and maintenance.
Building a car wash is an expensive venture and when determining a budget for building and equipping, costs can fluctuate dramatically from the time of planning to the time of building and ordering equipment. The majority of car wash equipment is made outside of Canada and is sourced in U.S. dollars.
Considering the amount of dollars involved, a five-cent swing in the Canadian to U.S. dollar can make a significant difference to a proforma. Couple the exchange challenges with looming tariff charges and it creates a perfect storm for car wash owners entering the industry for the first time. We don’t anticipate any issues with tariffs with goods coming into Canada, however, we have already seen a slight uptick in raw costs that have resulted in increased equipment costs at the manufacturing level.
Anne Kothawala
President and CEO
Convenience Industry Council of Canada
As the national voice of Canada’s convenience industry, CICC’s role is to champion the sector’s role in supporting communities while creating an economic environment where all businesses can succeed. Success requires consistent and strong advocacy and while reinforcing the importance of the channel in our communities
Three key focus areas will establish a solid foundation for success in 2026 as we continue to navigate economic and geopolitical headwinds.
Continue to expand the product mix
Our core promise convenience for our customers—providing one-stop shopping. Government restrictions on products hinder this. We anticipate more provinces permitting c-store sales of beverage alcohol in addition to fewer restrictions on the sale of nicotine products. Success hinges on sustained government action against contraband and we'll maintain advocacy pressure to ensure it.
Double down on responsible retailing
We are responsible retailers and many governments trust our industry to retail age-restricted products due to our proven track record. Yet, we can’t take that for granted and must continue to demonstrate that our industry is the model to be emulated for responsible retailing in Canada. CICC will work with provincial governments to mandate training programs like ID Please/Ta Carte STP.
Niche marketing/filling the gap
Our industry knows how to pivot, often at the community level. Store operators know what their customers want. We have seen it with foodservice growth and other product and service offerings where there is a gap in the community.
As Canada's population grows more diverse, stores and suppliers are ideally positioned to meet emerging demands. CICC will conduct targeted research to drive channel expansion.
Resilience defines us not just as businesses, but as indispensable community builders and neighbours.
Andrew Mackay
President
BG Fuels
As I booked a flight today and declined the optional cost of offsetting my carbon foot[1]print, it struck me that what consumers say is important doesn’t always reconcile with their actions. We say we want modern gas stations with new dispensers that play video and accept all the payment options, premium grade fuels, high-end car wash packages, etc., because that sounds better than saying I’m cheap and will cut across three lanes of high-speed traffic or wait 20 minutes in line to save four cents per litre.
We want the frills, but less and less of us seem willing or able to pay for them. The retail industry trend I believe will dominate 2026 and beyond is the pursuit of absolute lowest cost: a flight to frugality. Consumers will chase the deal, and that means less premium grade fuel sales, less high-end car wash packages, less convenience store purchases with built-in convenience price premiums, and a greater pursuit of immediate savings. Hoarding points for aspirational rewards is pointless if you can’t pay the rent.
Expect that more and more Canadians will be tightening their belts until we see a clear path out of the economic malaise caused by the political chaos in the U.S. and the last decade of waste and invest in commercializing the resources with which we’re blessed.
We’re facing an affordability crisis in this country, and only retailers with a relentless and ruthless focus on expense management will thrive.
Serge Nadeau
Vice-president—projects & developments
Groupe Beaudry
Our objective for the new year is very much on fresh foods and diversifying our food offerings for our many partners and their customers. For example, today’s convenience customers are very much looking for a wider variety of fresh and ready-made offerings to meet their needs throughout their day.
As an example, we are going to be expanding our breakfast offerings in the new year with more sophisticated coffee offerings and a wider range of fresh-baked goods and breakfast sandwiches. Also, we are looking at offering unique cheeses and increasing the amount of fresh fruit.
When it comes to beverages, we look in the new year to expand our offerings from a wider range of non-alcoholic beverages to meet today’s cravings for new flavours of the traditional drinks that everyone is familiar with.
In Quebec, where it is very common to buy beverage alcohol at convenience stores, we plan to introduce a wider range of ciders and seltzers to appeal to younger consumers. In addition, we are working toward offering unique pairings of cheeses, meats and other foods with the wines and other beverage alcohol offerings that will be very appealing to customers.
Anne Nielsen
Vice-president, brand development
Hyde’s Distribution
One of the most significant trends poised to impact most markets and businesses in 2026 is the integration of artificial intelligence (AI). Companies are adopting AI to automate tasks and analyze data. While AI-powered analytics are helping make data-driven decisions, predict consumer behaviour and optimize supply chains, within our c-store environment, how we harness AI effectively is essential to our continued growth in 2026.
We are a national distributor that pioneered using technology to drive communication and ease of ordering for our customers with our TONOL app. With rising manufacturer costs, we know that customers will be more selective, they will look for value and products that will turn quickly. Within TONOL, we are strategically leveraging AI to create operational agility and deliver value. We have changed our approach from a dollar discount on specific SKUs to “TONOL Reward Points” that can be used to reduce the total invoice.
As we plan for 2026, the fusion of AI into our TONOL platform represents a new era of intelligent commerce. Personalization, automation and AI data insights will provide a competitive edge in this fast-evolving digital marketplace.
Mathieu Robillard
Vice-president, operations, retail network and cardlock
Harnois Énergies
Price competitiveness will remain a central battleground for Canadian retailers in 2026. As consumers tighten their budgets, dollar stores are capturing disproportionate growth, in some cases selling certain products below our own acquisition cost. A recent example illustrates this imbalance: a standard Kit Kat bar selling for $0.95 at a discount banner, while the wholesale cost for convenience retailers is actually higher than that. Something in that value chain no lon[1]ger adds up.
This phenomenon reflects a deeper structural shift. Four in 10 Canadians now say they only buy the essentials, and more than half actively seek discounts, promotions and private labels. For the convenience industry, this migration toward discount banners is a wake-up call.
In the short term, convenience retailers must collaborate more transparently with suppliers and wholesalers to restore a sustainable value equation. But the real transformation lies ahead: we must accelerate the shift from transactional proximity to experiential destination. That means intensifying our focus on foodservice, leveraging technology to personalize the customer journey and delivering operational excellence that builds loyalty and trust.
Price may win the day, but experience and trust will win the decade.
Anthony Ruffolo
President
McCowan Design & Manufacturing
The Canadian convenience store industry has experienced change over the past 12 months. Some changes have precipitated growth, while some have formed headwinds; however, our industry is resilient and adaptable.
Growth has come from the addition of beer and wine to stores in Ontario, bringing in new customer traffic and has strengthened our industry’s relationship with its customers. The additional revenue stream is allowing new c-stores to open and existing ones to grow.
On the economic front, our industry has felt the impact of tariffs and has adapted to changing supply chains. Supply chains are becoming shorter with managers ensuring that projects can be executed through domestic manufacturing and are reducing reliance on imported fixtures.
In the face of economic headwinds, convenience stores play a critical role for their customers by supplying necessities as purchasing habits change. We see the continued improvement of foodservice in the c-store industry and the addition of more grocery items. The formation of new communities in Canada has a greater focus on local, walkable stores that are accessible by foot.
The Canadian convenience store industry is growing, dynamic and will play an ever more important role in the well-being of its customers: 2026 will surely be another exciting year. McCowan will be there to support growth and provide store fixture solutions to c-stores across Canada.
Scott Simmons
President
Ontario Craft Brewers Association
The growth of beer in the convenience channel has been strong this year but an important trend for 2026 will be stores embracing more ‘real’ local craft beer as sales continue to grow.
Stats show C-stores now represent 17% of all beer retail sales in Ontario, but the key question is what kind of beer will be on the shelf going forward? If I am a store owner, the answer is simple—real, local craft beer. Here’s why. The first is higher sales. The experience from grocery stores shows craft beer customers often spend more per shop. It can be the same for convenience stores. The second is convenient, free, and fast delivery from local manufacturers when you need product. And finally, there has never been more important time for local businesses to support other local businesses.
The AGCO mandates that 20% of beer on your shelf must be from small, local manufacturers, but beyond that, becoming a craft beer destination where most of the beer on your shelves is local craft beer is good for your bottom-line. And it’s easy to do. The next time you place your order with the LCBO, be sure to look for the ‘Small’ product designation to make sure you are getting real local craft beer. Or you can reach out to the local brewery directly. They’d be happy to help.
Stats show that 66 cents of every dollar spent at a locally owned business stays in the community, compared to only 11 cents from foreign owned stores. It’s time that local supports local! My message to store owners is to make 2026 the year they truly embrace local craft beer and become a craft beer destination in their community. Your sales and your community will benefit. It’s a true win-win and represents a very exciting future!