Sauvignon and Slurpees? 7-Eleven launches in-house brand of wine
Filed under: Technology, Economy
On Wednesday, 7-Eleven (SVNDY) released its first in-house brand. This market segment, which has generally been dominated by grocery store brands like Walmart's (WMT) "President's Choice" or Whole Foods' (WFMI) "365 Everyday Value" lines, tends to focus on simple foods with mass appeal foods. However, for its first offering, 7-Eleven decided to raise the bar: It's going for wine.The chain's new line, Yosemite Roads, will open with two basic offerings: a "fresh and zesty" chardonnay "with notes of apricot, peach and honey," and a "full-bodied cabernet sauvignon with juicy plum overtones." The 750-milliliter bottles will retail for approximately $3.99 apiece, and will be available in most of the company's 15,000 convenience stores, as well as Denny's restaurants, Shell Garden grocery stores, and several retail outlets in Japan.
While many of 7-Eleven's customers might have expected its initial self-branding effort to focus on the chain's iconic chili cheese dogs or similar fare, the move into wines plays to the company's strengths. Since 7-Eleven began selling mainstream (read: non-fortified) wines in the 1990's, fermented grape juice has become a large part of its business; today, it accounts for yearly revenues of approximately $46 million in the United States and $127 worldwide. What's more, 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.
This trend has proven particularly lucrative for Trader Joe's, whose "Two Buck Chuck" and other super-cheap offerings have enjoyed massive popularity. Ironically, it appears that 7-Eleven's flagship brand, Yosemite Roads, was initially sold through Trader Joe's, at least according to Winebork, a website that reviewed the wine in 2002.
Although Yosemite Roads has presumably changed over the last seven years, its developer, John Willumson, has remained the same. Formerly operations manager at the Robert Mondavi Winery, Willumson now works with the Wine Group, the world's third-largest wine company. In addition to Yosemite Road, the company owns a host of well-known brands, including Franzia, Almaden, Inglenook, Paul Masson, Mogen David, Corbett Canyon and Glen Ellen.
In a clever move, 7-Eleven will initially release Yosemite Roads for only a limited time. In addition to allowing the chain to test the waters with its new brand, this will also inspire curious wine enthusiasts to swallow their scorn, lest they miss the chance to try what is sure to be an interesting curiosity, if nothing else.



























Reader Comments (Page 1 of 1)
11-05-2009 @ 9:40AM
Alvaro Covarrubias said...
Good on them! Wine is a regular part of peoples' diet and a grocery store that does not sell affordable wine is simply cheap or nearsighted. Burgers, pizza, hot dogs, sandwiches, salads also go with wine. And wine does not have the boozy appeal of beer or hard liquor so it shouldn't affect the "family convenience" atmosphere of 7 Eleven.
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11-05-2009 @ 1:56PM
Virginia said...
But... "Yosemite Roads" just doesn't have the same cachet as "Mad Dog" or "Thunderbird," the defacto inhouse brands of convenience stores...
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11-05-2009 @ 11:30PM
Billybob said...
What about Boones Farm?
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11-07-2009 @ 9:42AM
foresquare said...
This is not the first time 7-Eleven had a house brand. 30 or so years ago there was a 7-Eleven beer. I never had any but my Uncle bought some once and even his two college age boys wouldn't drink it after the first one. I hope the wine is better.
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11-10-2009 @ 12:19PM
Bill said...
You won't find this in New Jersey 7-11s. Can't sell booze in convenience stores here.
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11-07-2009 @ 10:54AM
Vicki said...
t-Eleven WINE??? I just might vomit into my morning coffee...
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11-07-2009 @ 1:23PM
Terry said...
7-11 has always been greedy period. Fire good workers and keep the ones that don't do anything at all. and the wine well i wouldn't drink it if it was free.
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11-07-2009 @ 3:25PM
edddd said...
A fine bottle of chablis, vintage 45 min ago. bleeah !
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11-07-2009 @ 3:24PM
edddd said...
Hey Tim UP YOURS !!
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