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7-Eleven will stock new beer: its own
THE DALLAS MORNING NEWS ^ | Thursday, April 10, 2003 | By Maria Halkias

Posted on 04/12/2003 11:26:05 PM PDT by gd124

DALLAS -- 7-Eleven Inc. will stock its own private-label beer starting this summer, a move that's expected to be closely watched in the $60 billion U.S. beer business.

Santiago, which will begin to appear in 7-Eleven cold vaults in June, will be sold for $5.99 a six-pack. The price is lower than many other brands, including Mexican import Corona, with which Santiago is packaged and brewed to compete.

"7-Eleven is the 800-pound gorilla in the beer business. It's one of the largest sellers of beer in the country, somewhere in the top five with Wal-Mart and major grocery chains," said Harry Schuhmacher, editor of Beer Business Daily, a publication aimed at distributors. "If you're going to do a private label with somebody, 7-Eleven is a good choice."

The Dallas-based convenience-store chain said its imported beer is being made by Cerveceria La Constancia, an El Salvador brewer, in a joint venture with London-based SABMiller PLC, parent company to Miller Brewing Co.

Getting 7-Eleven a proprietary beer has been a pet project of president and chief executive Jim Keyes.

"It has to do with customer loyalty and getting people to keep coming into the store. That's what we've been doing with our coffee, bakery and foods," Keyes said. "It's the same with beer. If people develop a taste preference for Santiago, they'll have to come back to 7-Eleven."

Beer and wine represented 11 percent of 7-Eleven's sales last year, ahead of candy and snacks at 10.7 percent of total merchandise sales but behind tobacco products (27.5 percent) and nonalcoholic beverages (22.5 percent).

7-Eleven is also trying a proprietary wine label called Regions.

Santiago beer will be delivered to stores by local and regional Miller distributors and 7-Eleven's delivery network that supplies stores daily with fresh foods.

7-Eleven's strategy in recent years has been to build on the success of its longtime proprietary Slurpee frozen drink with other branding such as Big Gulp fountain drinks. More recently, it has added BigEats sandwiches and Dream donuts, a new recipe to compete with Krispy Kreme.

Retailers like private-label products because they have higher profit margins and can be offered at lower prices than national brands. Corona beer, for example, retails for $6.99 to $7.49 a six-pack.

Albertson's Inc. and Kroger Co. are among only a few retailers trying the private-label beer strategy, Schuhmacher said, "but I don't think they've been very successful because consumers are very image-conscious when they're drinking beer, and most want a national brand."

Kroger launched two labels a year ago, Caguama and Joses Hoffbauer, and added two more in the past six months called Lawson Creek and Hollande 1620, said Russell Richard, spokesman for the Cincinnati-based chain. "So far, they're performing well," he said.


TOPICS: Business/Economy; Culture/Society; Miscellaneous; News/Current Events; US: Texas
KEYWORDS: 7eleven; badbeer; beer; cheap; santiago; texas
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To: rogue yam
Nothing new. The had 7-11 beer out in the late '60's. Premium beer at popular price they said. Tasted like bat urine.
21 posted on 04/13/2003 5:25:49 PM PDT by oyez (Is this a great country or what?)
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To: justlurking
I remember when I lived in St. Louis that a local chain of liquor stores sold its own brand of beer (905 Beer), which was made by Pittsburgh Brewing Co., makers of Iron City Beer (aka lighter fluid). Yuck.
22 posted on 04/13/2003 5:28:51 PM PDT by mountaineer
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To: gd124

"Yo! Didya hear that 7-11 is comin' out with their own beer? Along with dat cheap-ass Wal-Mart wine, we sure is livin' large these days!"

23 posted on 04/13/2003 5:29:11 PM PDT by SamAdams76 (California wine beats French wine in blind taste tests. Boycott French wine.)
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To: gd124
I just saw the new Safeway Beer. Eww Ick.......
24 posted on 04/13/2003 5:30:20 PM PDT by cmsgop ( Arby's says no more Horsey Sauce for Scott Ritter !!!!)
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To: mathluv
Can anything compete with Krispy Kreme?


25 posted on 04/13/2003 5:31:18 PM PDT by SamAdams76 (California wine beats French wine in blind taste tests. Boycott French wine.)
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To: oyez
Tasted like bat urine

And you know that because?????

26 posted on 04/13/2003 5:33:44 PM PDT by nanny
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To: Redwood71
Santiago will be right next to Code Red.
27 posted on 04/13/2003 5:36:39 PM PDT by Rebelbase
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To: Maximum Leader
Considering the people who operate so many of the 7-11 stores, I thought it would be something decidly middle eastern. Although I know Muslims don't (or are not supposed to) drink alcohol.

Come to think of it - Muslims don't drink alcohol - but they can sell it - to the infidels, I suppose.

28 posted on 04/13/2003 5:38:24 PM PDT by nanny
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To: gd124
Santiago, which will begin to appear in 7-Eleven cold vaults in June, will be sold for $5.99 a six-pack.

Does that include a free money order to send cash home to Mexico ?

29 posted on 04/13/2003 5:39:28 PM PDT by tubebender (?)
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To: gd124
7-11 rocks, although QuickTrip is giving them a good run for their $.

Trajan88

30 posted on 04/13/2003 5:42:22 PM PDT by Trajan88
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To: Drew68
Muslim beer? No thanks!
31 posted on 04/13/2003 5:59:53 PM PDT by Dec31,1999 (You show me a country that doesn't have clear title to property, and I'll show you a poor country!)
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To: gd124
We have a couple of 7-11s here in London. Based on that, I dare say this is not a good idea.

Regards, Ivan

32 posted on 04/13/2003 6:01:10 PM PDT by MadIvan
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To: Drew68
Sadly, here in Colorado where liquor stores can sell full strength beer (but not on Sundays), supermarkets (which 7-11 is considered) may only sell 3.2% beer.

In the land of Adolph Coors??

33 posted on 04/13/2003 6:03:20 PM PDT by ErnBatavia (Bumperootus!)
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To: nanny
And you know that because?????

Every where you, there always a smart a$$.

34 posted on 04/13/2003 6:35:42 PM PDT by oyez (Is this a great country or what?)
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To: AmishDude
I was in PA back in the '70's I stopped at a store for some odds and ends. I asked the clerk if the had beer and he refered me to a bar.
35 posted on 04/13/2003 6:39:32 PM PDT by oyez (Is this a great country or what?)
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To: oyez
Every where you, there always a smart a$$.

There nothing worse - except an old SA

36 posted on 04/13/2003 7:04:25 PM PDT by nanny
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To: oyez
He probably looked at you funny, too, like you came from Mars where beer grows on trees (or at least is the sap).
37 posted on 04/13/2003 7:10:54 PM PDT by AmishDude
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To: AmishDude
In Louisiana they sell liquor in 7-11's, Winn-Dixie, Wal-Mart, Rite-Aid or just about anyplace else. I don't even think liquor stores even exist down there.
38 posted on 04/13/2003 7:34:34 PM PDT by oyez (Is this a great country or what?)
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