Dive Brief:
- 7-Eleven is continuing to expand its private-label brand, 7-Select, with two new lines of beverages, the Texas-based company said Wednesday.
- The convenience store chain introduced a new energy drink, 7-Select Fusion Energy, as well as a premium hydration beverage called 7-Select Rehydrate.
- These new drinks fall under the popular “functional beverage” category, with hydration drinks sales growing about 6% per year, according to Precedence Research. Meanwhile, energy drink c-store sales in May surged 10% over last year,, according to Circana data.
Dive Insight:
The popularity of the energy drinks category makes it a strong candidate for private-label additions. 7-Eleven said in its fiscal first quarter earnings presentation that private-label margins are about 19 percentage points higher than those of national brands.
Meanwhile, Circana’s Pacesetters report for 2024 noted that nine of the the top 10 new products in the convenience channel were drinks — including two sports drinks, two energy drinks, water and coffee.
7-Eleven’s new energy drink comes in Cosmic Cherry, Rockin’ Rainbow, Galactic Citrus and Paradise Pulse flavors. The beverages include vitamin C, B6 and B12 and do not include sugar, artificial colors or high fructose corn syrup. The hydration drink comes in cherry, fruit punch and grape flavors and includes a blend of five electrolytes and vitamins.
“With the launch of our new energy drink, 7-Select Fusion Energy, and the new 7-Select Rehydrate hydration beverage, we’re providing our customers with innovative, high-quality private brand items crafted to energize and refresh,” said Nikki Boyers, vice president of private brands at 7-Eleven.
7-Eleven has tried to keep pace with the fast-evolving functional beverage space, introducing its 7-Select Replenish sports drink in 2019. 7-Eleven introduced Skýra Icelandic spring water the following year.
Irving, Texas-based 7-Eleven operates, franchises and/or licenses more than 13,000 stores in the U.S. and Canada under the 7-Eleven, Speedway and Stripes banners. It also franchises QSRs Laredo Taco Company and Raise the Roost Chicken & Biscuits.
