Grocerant Ready-2-Eat and
Heat-N-Eat fresh prepared food and beverages are key to global success of
7-Eleven according to Steven
Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. The fact is there is no company in the world
that holds a candle to branded food marketing powerhouse that 7-Eleven has become with over 83,175
stores worldwide.
Most of you know that Omar Knedlik invented machines to make
frozen beverages in the late 1950s. The idea for a slushed ice drink came when
Knedlik's soda fountain broke down, forcing him to put his sodas in a freezer
to stay cool, which caused them to become slushy. The result was popular with
customers, which gave him the idea to make a machine to help make a
"slushy" from carbonated beverages. When it became popular, Knedlik
hired an artist named Ruth E. Taylor to create a name and a logo for his
invention. She created the Icee name and designed the original logo,
which is still used today. Early prototypes for the machine made use of an
automobile air conditioning unit.[1]
After a successful trial
of Icee machines in 100 stores,[2] 7-Eleven made a licensing deal
with The Icee Company to
sell the product under certain conditions in 1965. Two of these were that
7-Eleven must use a different name for the product, and that the company was allowed
to sell the product only in 7-Eleven locations in the US, a non-compete clause
ensuring the two drinks never went head to head for distribution rights.
7-Eleven then sold the product that in 1966 became known as the
"Slurpee" (for the sound made when drinking them). The term was
coined by Bob Stanford, a 7-Eleven advertisement agency director and the rest
is history. Slurpee and 7-Eleven are in
my minds-eye synonymous, just ask any kid under 85 in July!
That
said; with its annual general meeting two weeks away, Seven & i Holdings Inc. is outlining
the company's food-focused strategy and investments in convenience as it continues to
face shareholder unrest.
So,
in a letter to shareholders, the parent company of Irving, Texas-based 7-Eleven
Inc. also asked shareholders to vote for the company's slate of board nominees
at the May 25 meeting.
Now,
according to Seven & i, the
division of the company that includes Japan's Seven-Eleven Japan Co. Ltd.
(SEJ), North American 7-Eleven Inc. (SEI) and other overseas 7-Eleven
International LLC (7IN) businesses "contributes over 80 percent of the
company's revenue and profit."
This
was achieved through strategic investments and divestitures of noncore assets,
and leveraging the food expertise of SEJ, including its private brand, product
development and procurement networks, and delivery model to expand private
label food offerings throughout its global business, including SEI, to enhance
sales and margin expansion, the company said.
"These
initiatives are driving our strong performance, prompting us to raise our
medium-term targets. It's important to understand that key to this
successful strategy is a deep understanding of the role that our strength in
'food' plays as a growth and profitability driver as we expand our global CVS
business," the letter said.
Seven
& i pointed out that the organization's "food ecosystem" —
whereby group companies collaborate at each stage of the product development
and procurement process — is a competitive advantage.
"Given
that there are 15,000 food-related items across the entire company, we have a
significant opportunity to leverage this network to continue growing the 2,000
food-related items currently offered by CVS," Seven & i said.
The
company also cited its food expertise and fresh food offerings as drivers for
global growth, and its strength in food is currently being leveraged across the
globe.
"We
are installing SEJ's private brand product development and food production
processes at SEI and the other countries we serve through valuable business
partnerships," the company wrote. "For 7IN, further growth will also
be pursued in East Asian countries achieving economic growth, with the benefit
from our differentiated fresh food offerings."
While
some investors may call for change, at 7-Eleven the brand messaging, brand
value, and fresh food proposition continues to drive top-line sales and
bottom-line profits and our won Grocerant Guru® believes that 7-Eleven’s
branded food messaging is in fact more consumer focused and relevant today than
any other companies food messaging.
For international corporate presentations, regional
chain presentations, educational forums, or keynotes contact: Steven Johnson
Grocerant Guru®
at Tacoma, WA based Foodservice Solutions.
His extensive experience as a multi-unit restaurant operator,
consultant, brand / product positioning expert, and public speaking will leave
success clues for all. For more information visit GrocerantGuru.com,
FoodserviceSolutions.US or call 1-253-759-7869
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