The cost for a bottle of Cherrywood Cellars wine falls between Yosemite Road, the company's first globally sourced product and priced at an entry-level $3.99 per bottle, and Sonoma Crest, a premium wine comparable to a $15 bottle, but value-priced at $9.99.
7-Eleven [image-nocss] has had great success with its ventures into the proprietary wine business. Within months after being introduced, Yosemite Road Chardonnay and Cabernet Sauvignon wines rose to No. 1 and No. 2 in sales at 7-Eleven, ahead of the leading branded reds and whites from well-known wineries. Likewise, 7-Eleven's Sonoma Crest and Thousand Oaks proprietary wines also land among the company's top sellers.
Millennial-aged consumers, also called echo boomers or Generation Y, were born between 1975 and 1999. Estimates are that they will soon outnumber once-dominant baby-boomers. According to Wine Business Monthly magazine, wine marketers have primarily focused on the big-spending baby-boomer generation. The latest to come of legal age, millennials already drink more wine than their older Gen X siblings and have played a significant role in the growing popularity of wine-drinking in the United States, the Wine Market Council reported in a recent study cited by the retailer.
Millennial consumers, however, may watch their spending more closely than both Gen X'ers and baby-boomers because of the recent economic downturn and resulting high unemployment rate. Gen Y members appreciate quality, but they are seeking the best value for their dollar.
"We are targeting millennials because they like convenience and want to new products, especially if we offer them a quality product at a great price," said Jesus Delgado-Jenkins, 7-Eleven senior vice president of merchandising and logistics."
Cherrywood Cellars was created to compete with the bestselling varietal wines, produced under both domestic and import labels. Cherrywood Cellars' labels, with simple relief-style, wood-stamp artwork, also were designed to appeal to these younger consumers.
Wines are categorized by price, and Cherrywood Cellars would be ranked among the popular-premium or mid-tier category of wines that sell for $7 to $10.
Separately, 7-Eleven capped its 14-city Slurpee Unity Tour by offering free Slurpees on November 26, which it is calling "Purple Friday." Participating stores gave free, small Slurpees upon presentation of an online coupon.
"7-Eleven wants to allow more people to share in the fun of coming together on the Friday after Thanksgiving. We are celebrating 'Purple Friday' on the day that is traditionally recognized as Black Friday," Laura Gordon, senior director for Slurpee and Big Gulp brands, said before the event.
(Click here for previous CSP Daily News coverage of the Slurpee Unity Tour.)
Dallas-based 7-Eleven operates, franchises or licenses more than 8,300 7-Eleven stores in North America.
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