When 7-Eleven introduced the Slurpee in 1966 and promoted it with quirky radio ads aimed at young Boomers, no one suspected that the frozen beverage would one day be a signature product for the convenience store industry. 

Depending on the c-store company, today’s flavorful, icy beverages go by various brand names: ICEE, Freezoni, Froster, Slushie, Chiller or Frozen Zone. But they’re all cold and colorful and still attract young people—and the young at heart—almost six decades later.

“Consumers of frozen carbonated beverages skew younger, diverse and family-oriented, with Gen Z representing a significant portion of the audience,” said Rebecca Johnson, director of dispensed innovation for The Coca-Cola Co. in North America. “Gen Z consumers—ages 13-27—account for 42% of frozen-beverage consumers.”

But never underestimate the cravings of older customers seeking a cold sip of nostalgia. 

“We see all age groups enjoying Frosters,” said Shawn Barnes, head of dispensed beverages North America at Circle K, of the retailer’s branded beverage. “There is something about grabbing a frozen drink to cool down or having a little treat in your day that customers of all ages enjoy.” 

The frozen-dispensed-beverage category includes three subcategories: frozen noncarbonated (90.3% of sales); frozen carbonated, or FCB (5.6%); and other frozen dispensed beverages (4.1%). In 2024, sales of frozen dispensed beverages averaged $4,064 per store, per month, an increase of 4.2% from 2023’s $3,898, according to the NACS State of the Industry Report® of 2024 Data.

“The gross-margin percentage for the category was an impressive 64.60%, up slightly from the previous year,” said Emma Tainter, research manager, analytics and programs at NACS. “Frozen dispensed beverages have some of the largest margins across foodservice.”

Fruity Flavors Are a Favorite

In 2023, more than 3,300 functional-product launches worldwide featured a fruit flavor, and 40% of those launches were beverage-based, according to Flavorchem, a flavor and fragrance producer. As a result, more fruit flavors are showing up at the fountain and in the cold case, ranging from familiar favorites such as fruit punch, lemonade and raspberry to more exotic tastes such as dragon fruit and guava. 

Since 1966, more than 300 Slurpee flavors have been enjoyed by consumers around the globe. “But in the U.S., the most popular flavors continue to be Coca-Cola and Wild Cherry,” said a spokesperson for Irving, Texas-based 7-Eleven. “Blue Raspberry tops the list as Gen Z’s favorite flavor, though this group often prefers to mix two flavors to create their own personalized combination.”

Over the past year, 7-Eleven has enjoyed strong performance in the FCB category, thanks in part to fruity limited-time-only (LTO) flavors such as the new Powerade Xtra Sour Grape Shocker and the Nerds Strawberry, the latter of which hit participating stores in August.

At Sunny Sky Products, “we are seeing a lemonade craze, and we’ll be putting Sour Patch Kids lemonade front and center in our FCB units,” said Isabel Atherton, vice president of marketing. 

Sunny Sky’s frozen soft-serve line includes chocolate and vanilla flavors, which will soon be joined by Frosted Lemonade. “We conducted internal sensory surveys and came up with delicious and creamy formulas that performed the best in terms of mouthfeel, flavor and consistency,” Atherton said.

The company also plans to roll out Tiger’s Blood and Pineapple Orange Yuzu in both carbonated and uncarbonated frozen drinks under the Original Slushie Co. brand.

The top-selling ICEE flavors are proven winners. “Our iconic Cherry and Blue Raspberry are the classics of the category,” said Kimmra Hingher, vice president of marketing for ICEE. “And we continue to bring exciting flavors and LTOs to drive incremental trips and consumer excitement. Our collaboration this past year with Peeps was one of our strongest performers to date.”

The ICEE team hopes to top that success in 2026 with an innovative ICEE Watermelon Limeade LTO. Coca-Cola is introducing Fanta Halloween Sour Fruit Punch in fourth-quarter 2025 and Minute Maid Mango Lemonade in January.

Frazil, whose flavorful treats are made with crushed ice crystals, recently released Rock N’ Roll, a frozen treat that blends grape, blueberry and blue raspberry. “It’s a nostalgic flavor for most of Gen X and millennials,” said Val Fulton, brand manager. “We also launched Cherry Limeade this year, and it’s become a customer favorite. Tiger’s Blood [strawberry, watermelon and coconut] and Blue Razzmatazz [raspberry] continue to be our top sellers.”

“LTOs are very important to the category,” Barnes of Circle K said. “While the core flavors remain fan favorites, LTOs offer a break from the norm and allow customers to try something new and, in most cases, something you can’t get anywhere other than at Circle K.” 

Earlier this year, Circle K launched a Mountain Dew Summer Sparkler Froster, which quickly gained a following. “It was developed to taste similar to a Bomb Pop popsicle. We just made it a little easier to enjoy in the car,” Barnes said. 

Sometimes customer response to an LTO will result in the product coming back on a permanent basis. That’s what happened at F’real, the company known for blend-it-yourself shakes and smoothies. Strawberry Shortcake and Cinnamon Churro milkshakes started as LTOs but returned to stores in June based on customer response, which was expressed via social media. F’real’s latest LTO is the Girl Scout Coconut Caramel Milkshake, which combines the tastes of toasted coconut, caramel and cocoa.

Ice and Coffee = Cool Beans

According to the National Coffee Association, about half of all coffee consumed by 18- to 24-year-olds is cold, and 82% of cold coffee consumed away from home is flavored. But so far, iced coffee drinks don’t seem to be stealing frozen-beverage fans.

“We continue to see growth year over year in frozen dispensed beverages, and I don’t think cold coffee drinks are cannibalizing the category,” said Barnes. “The FCB mission trip and the cold-coffee mission trip are truly unique. Cold coffee offers a functional and sometimes indulgent experience, while I believe the FCB trip is much more rooted around people just looking for a treat.”

The ICEE team sees the popular taste of coffee as an opportunity. “We are launching some frozen coffee flavors—Mocha Madness and Salted Caramel Swirl—with Slush Puppie this year,” said Hingher. “We continue to look for new ways to deliver flavorful, exciting offerings to our customers.”

Frazil plans to introduce a Pepper-mint Mocha Cafe Tango flavor. Other Frazil coffeehouse-style frozen flavors have ranged from Caramel Macchiato to Pumpkin Spice and two lower-calorie offerings in Espresso and French Vanilla.

Frozen Yet Energetic

Over the past year, the energy drink market has seen more than $22 billion in sales as consumers have become more health conscious and focused on functional beverages, according to NielsenIQ. Now, energy additives are showing up in frozen drinks.

Yatco, a 23-unit convenience retailer in Massachusetts, gives customers a dispensed-beverage selection that includes slush drinks, lemonades, teas and an interactive digital fountain machine with 20 products. 

Two locations recently added a powdered energy drink that can be mixed with water to create a frosty beverage booster. The product was purchased through NCD, and Yatco reports that sales have been exceptional. Hassan Yatim, president and COO of Yatco, noted that both stores are located near colleges, and students have discovered it. “They want to stay awake,” he said. “I’ve tried it too, and it’s pretty good.”  

Last year, F’real introduced its Energy Freeze line, which currently includes Blue Raspberry and Strawberry Watermelon. Each serving provides 100 milligrams of caffeine, “without the excessive buzz, thanks to ingredients including coconut water and green coffee extract,” according to the company. 

Perfect Promotions

Despite millions of existing fans of frozen drinks, publicized promotions help keep the beverages top of mind for potential consumers.

7-Eleven distributes free small-size Slurpee drinks to customers every July 11, the company’s official birthday. 7-Eleven has also hosted Bring Your Own Cup Days, which for a set price permit customers to bring almost any container that is clean, water-tight and fits under the Slurpee dispenser’s 10-inch opening to fill with their favorite Slurpee flavors. 

This year, 7-Eleven launched the Kerplunk Kandy Grape Slurpee drink as an ode to Green Day’s 1992 album “Kerplunk!” and partnered with NBA icon Shaquille O’Neal to release a limited-edition Shaq-A-Licious XL Sour Pineapple Slurpee drink.

“We’re ensuring Slurpee remains a relevant and defining part of the 7-Eleven experience,” said the 7-Eleven spokesperson.

For the past three years, Frazil has deemed each Friday in June Free Frazil Fridays, through which customers can get a complimentary cup of Frazil at participating retailers. 

Circle K uses its customer rewards program, Inner Circle, to promote Froster drinks with exclusive offers, and it has paid off. “We have seen our loyalty penetration grow in the category due to the offers,” said Barnes.

“Pairing frozen beverages with food or snacks enhances value for consumers, creating that perfect combo, while seasonal promotions, especially in the summer, and marketing targeted at lunch and afternoon consumption can further drive sales,” Johnson of Coca-Cola said.

“Frozen dispensed beverages present boundless opportunities for innovation, with consumers gravitating toward fruity, bold flavor profiles and intriguing, unexpected combinations,” she said. “Customization is at the heart of this category, whether through flavor mixing to craft personalized blends or adding creative toppings, making it all about building a unique, personalized experience.”