Posted by Stephanie Startz on November 6, 2009 12:17 PM
What wine pairs well with hot dog?
7-Eleven may shortly provide the answer to that question, as the convenience store brand releases two in-house wines. Teaming up with The Wine Group, the always-open retailer will distribute Yosemite Road Wines globally through 7-Eleven and 7-Eleven Japan convenience stores, several Japanese supermarkets, hypermarkets, and upscale grocery stores, as well as Denny's family restaurants, and Seibu and Sogo department stores. The wines will be offered in 750 ml bottles, retailing for approximately $3.99, in two varieties, “fresh and zesty” chardonnay and a “full-bodied” cabernet sauvignon.
Wine sales have proven most profitable at the chain, with yearly sales of approximately $46 million in the United States and $127 worldwide. According to Daily Finance, “7-Eleven's sales of value-priced wines have exploded over the past few months as customers have sought wallet-friendly replacements for more expensive tipples.”
The wine line is the latest in an ever-expanding private-brand for 7-Eleven. Late last month the convenience store announced the addition of 15 private-label bakery items. According to BrandWeek, 7-Eleven has executed their private-brand exceptionally well, "focusing its activities on introducing a range of products, such as sandwich bags and olive oil, as well as refining the labeling and packaging.”
As consumers trim their budgets, private brands have begun to thrive. Retailers face the danger of going astray by following the model of established brands instead of, as Interbrand's Best Global Brands 2009 report advised, “learning from the successful European model of developing a new vernacular and creating destination brands in their own right.” 7-Eleven seems to have avoided those trip-ups, and with plans to launch an in-store television network, should have no problem marketing their in-store brand.
But if 7-Eleven does find itself in a bind, I can offer a potential promotion, certain to go over well: 16-ounce Big Gulp of cabernet and two chili dogs for $2.99. Limit two per customer.