BURNABY, B.C. -- 7-Eleven Canada Inc. has recently launched its own Big Gulp-branded pop in two-liter bottles, reported BusinessWeek.
Laurie Smith, communications manager for 7-Eleven Canada, said the two-liter plastic option enables fans of the traditional one-liter Big Gulp fountain drinkor its close cousins, Super Big Gulp (1.3 liters) and Double Gulp (two liters)to take their beverage home and enjoy it anytime they wish. The two-liter Big Gulps come in five flavorscola, root beer, lemon lime, orange and cranberry-raspberry.
"Most people who come in and buy a Big Gulp drink it right away. Now that it's available in a bottle with a cap, they can drink it the next day or take it camping or on a picnic," she told the publication.
7-Eleven has positioned Big Gulp pop as a value brand, which explains its knee-level shelf position. Smith added. "Value is becoming more and more important to a certain segment of the market."
Stateside, as reported in CSP Daily News, 7-Eleven launched a private-label line of 20-oz. soft drinks under the Big Gulp label about a year ago. The initial four flavors, developed with Leading Edge Brands, Temple, Texas, are Diet Cola with Splenda, Cola with pure cane sugar, Mint Lime Twist and Ginger Apple Snap. The company said at the time that it would watch the sales of the single-serve beverages, positioned in the cooler with similar products, before making any additions to the line; however, additional flavors and a two-liter bottle were said to be on the drawing board then.
And the chain previously sold Classic Selection-branded soft drinksit still maintains the brand for bottled waterbut the customer response fell short of goals, so the switch to the Big Gulp brand was made earlier this year, according to BusinessWeek. "We feel the Big Gulp branding is stronger and more recognized than Classic Selection," Smith said. "The customers have a connection. Everybody knows what a Big Gulp isit's synonymous with 7-Eleven."
Early in the year, 7-Eleven also launched a pair of Big Gulp chocolate barsin milk chocolate and dark chocolate, said the report. The milk chocolate bar is available in the 100-gram size, while the dark chocolate with rice crisps version weighs 85 grams.
The marketing decision wasnt difficult, Smith said, because the company believes that the Big Gulp name stands for quality and value, and it transcends individual products. Customer recognition of the brand is the key. "The chocolate bars represent the same thing to the customer. It's a solid serving for a value price," she said.
Rob Warren, director of the Asper Centre for Entrepreneurship at the University of Manitoba, told the magazine that the decision to rebrand the soft drinks as Big Gulp products was the right move. "It's a great name, especially in Canada; it's very well known. 7-Eleven has done a very good job marketing itself."
Even using the name on chocolate bars makes sense, he added. "People think of Big Gulp as a brand name more so than a fountain drink. 7-Eleven is guessing that a lot of people who buy Big Gulps also buy candy bars."
Smith agreed, noting that private-label products are a growing trend in the marketplace for two reasons: they allow the retailer to own the brand and create a better connection with the customer.
Both Smith and Warren pointed out, too, that the margins on proprietary products are higher. Warren said distributors don't make significant margins selling national brands. "Traditional players like 7-Eleven and Mac's [Convenience Stores] have been squeezed in recent years. They're being hit hard by the gas stations, which have opened up their own convenience stores."
Like 7-Eleven, Mac's has entered the private-label market, as well, the report said. Laval, Quebec-based Alimentation Couche-Tard Inc. launched an energy drink called Joker at the beginning of the year. Al Suggitt, operations manager for the store's Manitoba and Saskatchewan operations, told BusinessWeek that the logic in taking on the Red Bulls of the world was simple given the attractive margins. "We make a buck," he said. According to his figures, Joker, which comes in one flavor (citrus) and one size (591 ml) but in regular and low-carb varieties, became the No. 5 energy drink in North America just seven months after its launch.
Reducing the firm's dealings with independent distributors is a priority now, the report said. "If we can do more in-house product, it's beneficial to the company," Suggitt said.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.