When Temperatures Chill, 7-eleven® Coffee Sales Heat Up

(Wednesday, November 29, 2006) - When the weather chills, sales heat up for 7-Eleven® stores' top-selling product – coffee. And customers really pour it on in November, historically the convenience giant's biggest coffee sales month. This year is no different even with added competition from fast food restaurants and other caffeinated beverage choices.
While 16-year 7-Eleven veteran Donald Driver believes much of the rising sales can be attributed to falling temperatures, he thinks other elements are at play. The hot beverage category manager closely watches coffee consumption and developments from coast to coast, both at 7-Eleven stores and other retailers to anticipate changing trends and tastes.

"Personalization is hot," Driver said. "Just look at wireless phones and iPods. People choose colors, cases and ring tones to reflect their personalities and preferences. Consumers want to personalize their beverages, too. At 7-Eleven, they can do that conveniently in a self-service environment without having to wait in line to place an order, have it made and then served – all of which can take an eternity when you're in a hurry or have a lot to do."

Tastes vary regionally, according to Driver. 7-Eleven is focusing more on local tastes, preferences and new items as part of the company's Retailer Initiative strategy to better serve the ever-changing needs of customers and give them what they want, when and where they want it. For example, what's hot for a Northeastern coffee-drinker might not tempt the taste buds of a Southerner or Midwesterner.

"Just as we are localizing our fresh-food menus around the country," he said, "we are paying attention to what coffees people prefer in different areas of the U.S. and adding regional favorites to our national top-sellers. That might mean Southern Pecan Pie in Texas and Florida, Butter Toffee in the Midwest, Hawaiian Hazelnut on the West Coast and Caramel Crunch in the Northeast."

The regional ordering system can work both ways. A popular variety in a particular region can find a national audience. Dutch Apple Crumb-flavored coffee, a favorite among Northeasterners, is being offered to the rest of the country's 7-Eleven stores this fall. "Besides colder temperatures, fall and winter mean shorter days and less daylight," Driver said. "I think people feel hurried to get more done during the daylight hours, like getting the kids to school in the morning and to extracurricular activities, lessons, practices and games. Add the advent of the holiday season and the need for a pick-me-up, you'll find that many people feel like a cup of coffee is a necessity. This time of year, people want all the help they can get."

In addition to a pick-me-up, Driver said that for many, coffee serves as a comfort beverage, much like favorite comfort foods that also seem to be especially popular in colder temperatures. So that consumers could customize their comfort beverage, 7-Eleven introduced an expanded line of flavored syrups, creamers and condiments a few years ago. Hot beverage choices also include hot chocolate, cappuccino and tea.

Last year, the company added its World Roasts™ line with gourmet origin coffees and blends from around the globe. According to Driver, a typical 7-Eleven store carries approximately eight different coffees, with the store manager ordering a mix of top-sellers, regional favorites, an international variety and flavored coffees to meet his customers' taste profiles.

Forty years ago, coffee was most often consumed at home. And if not, the hot beverage was typically purchased at a local diner or restaurant.

7-Eleven was the first retailer to introduce Americans to coffee in to-go cups, having tested the idea on Long Island in 1964. By the late ‘60s, hot-to-go coffee was available at all U.S. 7-Eleven® stores. Today, 7-Eleven customers in the Northeast, one of the first coffee-to-go markets, consume more coffee than anywhere else in the country.

Now, with ubiquitous coffeehouses and an insatiable caffeine craving that subsequently spawned an explosion of energy drinks, coffee is no longer the sole purview of 7-Eleven. Both coffee and 7-Eleven have evolved. No longer content with black or decaf, or with cream and sugar, Americans have literally thousands of coffee choices – hot, cold, iced, frozen, with steamed milk, espresso shots, foam, whipped cream, liqueurs, flavored syrups, creamers, spices and sweeteners.

On average, 7-Eleven customers pour for themselves more than 1 million cups of hot coffee each day – equal to 10,000 pots of coffee brewed every hour of every day of the year. That number is climbs even higher in colder months.

"7-Eleven will always be a destination for coffee because we offer the ultimate trifecta: quality, value and convenience," said Driver. "For the price, fresh-brewed 7-Eleven coffee with all the free syrups, creamers and condiments is hard to beat and easy to drink."

About 7-Eleven, Inc.
7 Eleven, Inc. is the premier name and largest chain in the convenience retailing industry. Based in Dallas, Texas, 7-Eleven operates, franchises or licenses more than 7,100 7-Eleven® stores in North America and more than 31,000 stores in 17 countries and U.S. territories. During 2005, 7-Eleven stores worldwide generated total sales of approximately $43 billion. Find out more online at www.7-Eleven.com.

Margaret Chabris
7-Eleven, Inc
214.828.7285

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