7-Eleven to Enter Beer Fray With Private-Label Beer

The convenience store chain will offer its own brew called Game Day.

April 19, 2010

DALLAS - 7-Eleven will soon start stocking its own private-label beer called Game Day, Fortune magazine reports. The convenience store chain tapped City Brewing in LaCrosse, Wisconsin, to concoct the premium beer it will sell at a budget price.

7-Eleven will be able to showcase its private-label beer in prime cooler positions, which should help its sales, beverage analysts say. But those analysts point out that the key beer consumer has been among those hit hardest by the recession, which could hurt Game Day??s launch.

Convenience store beer purchases declined 4 percent last year, according to SymphonyIRI, which is a bigger drop than other outlets experienced. Data released last week at the NACS State of the Industry Summit shows a slightly different story: beer sales in convenience stores have grown 19.7 percent over the past four years.

With Game Day priced low, perhaps 7-Eleven figures "that since brands are weaker at that price segment they can capture the full margin rather than pay a premium to a supplier," said Harry Schuhmacher with Beer Business Daily. His publication broke the story but the chain would not confirm the name of the brew would be Game Day.

7-Eleven has attempted other forays into the private-label alcohol arena before, such as with Santiago imported beer back in 2003. This time, the chain has been dropping hints of its interest in private-label, low-cost beer. With beer prices rising earlier this year, 7-Eleven spokesperson Margaret Chabris said in the Wall Street Journal in January that "we need cost decreases or we think there will be declines in domestic purchases in total," and that 7-Eleven is "exploring alternative strategies to better satisfy our customers."

The company would also have more control over beer distribution to its stores, allowing the chain to combine goods and decrease the number of store deliveries. "7-Eleven??s issue is that there are a lot of trucks in their parking lot keeping consumers out," said Schuhmacher.

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