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Convenience Stores Uncork the Potential of Store Brand Wine

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January 5, 2010

wine in glass and bottles imageConvenience store retailers that sell wine -- such as 7-Eleven, Kum & Go and Martin & Bayley -- are more often looking to store brands to spark category sales, according to a report in Convenience Store News.

Most recently 7-Eleven rolled out Yosemite Road, a global wine brand developed with Seven Eleven Japan, which also is sold in parent company Seven & i Holdings Co.'s department stores and grocery stores.

Meanwhile West Des Moines, Iowa-based Krause Gentle Corp's Kum & Go convenience stores rolled out two control-label wines a year ago -- Napa Creek Cabernet Sauvignon and Sea Ridge Merlot -- which are most frequently purchased by shoppers in suburban areas with household incomes upwards of $75,000, according to the report.

Martin & Bayley, operator of 100 Huck's Food & Fuel locations, based in Carmi, Ill., developed Five Buck Huck store brand wine in partnership with a local winery. Wine currently accounts for 2 percent of the chain's in-store sales, with 25 percent of those sales attributed to the store brands, according to the report.

Nielsen data reveals that store brand wine accounts for only 1percent of the total U.S. wine category in food, drug and mass channels (including Wal-Mart), but it is growing by double-digits. Private label wine sales totaled $4.35 million for the four weeks ended Oct. 3, 2009, more than a 10-percent increase over prior year, while overall wine sales increased 5.3 percent to reach $497 million, according to Nielsen data.

Looking at unit growth, store brand wine increased 11.8 percent compared to "branded" wine that increased 4.1 percent, according to Nielsen data.


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