7-Eleven Rolls Out Competitive Private-label Snacks
7-Eleven has rolled out a line of private-label products, answering the call from consumers that price is high on the list right now. The move follows successful tests in select markets.
The new brand, 7-Select, includes 32 items such as cookies, candy, nuts, potato chips, beef jerky, trail mix, plus chocolate-covered pretzels, coffee espresso beans, raisins and peanuts.
Prices for the products are 10% to 20% lower than the comparable national brands.
“When we began to develop products under the 7-Select name, our first and foremost requirement was to create high-quality products that were equal to or better than the national brands,” said Kevin Elliott, 7-Eleven senior vice president for merchandising and logistics, in a release. “Focus groups verified that we exceeded that goal by scoring taste, texture and flavor profiles higher than the name brand equivalent in every case.”
How manufacturers of competitive products sold in 7-Eleven stores will take to the new offerings is yet to be known.
In developing the products, 7-Eleven said it tasked its team with creating products required to “meet or beat name-brand quality” and to “beat the price or offer a better value.”
Last May, 7-Eleven began a test program in 1,500 stores in Florida and the Mid-Atlantic region putting 7-Select cookies, nuts, candies and other snacks on store shelves. P-O-P alerted consumers to the new products and customers “showed immediate interest.” Sales have climbed steadily and many items have outsold name brands, 7-Eleven said.
Of the 31 items tested, 26 were selected for the national roll out.
Results of a recent survey by The Nielsen Co. supports 7-Eleven’s strategy to market private-label products at a reduced price. Nearly three out of four American consumers believe store brands are good alternatives to national brands, and more than 60% consider them to be just as good, the survey said.
The current economic crisis and the sharp falloff in consumer spending have posed a unique opportunity for less-expensive private-label brands to slip in and be noticed and for existing private-label products to be more heavily promoted. The hope is that even when a robust economy returns, brand loyalty will have been established and consumers will stick with private-label brands.
The 7-Select brand has been around since 2004, when the firm introduced paper goods, batteries and stationery supplies. By the end of 2009, the company hopes to have 180 private-label items available, including offering its 7-Select snacks in its Canadian stores.
