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A couple of days ago, my colleague Jeff Reeves took a look at 7-Eleven's decision to enter into the beer game. Yes, 7-Eleven -- the sultan of Slurpees, the high priest of week-old hot dogs, the convenience king -- is going to throw its proverbial hat in the ring, looking for your beer bucks.
I did not know this, but 7-Eleven is the third-largest beer retailer in the United States. Perhaps my ignorance is born from the fact that there are no 7-Elevens in my hometown.
The convenience chain is now introducing its own brand of brew, named Game Day Ice (5.5% alcohol, 155 calories) and Game Day Light (3.9% alcohol, 110 calories) that will cost between $6.99 and $8.99 per 12-pack. If you just want one beer, a 24-ounce single will cost anywhere between $1.49 and $1.89.
Keep in mind, this is not 7-Eleven's first foray into private-label spirits. The convenience chain brought forth Yosemite Road private-label wines a year ago, and sales are good. Of course, there is 7-Eleven's Santiago catastrophe, which is nicely recapped by Jeff.
This is a gutsy move by 7-Eleven, and it could open the door for similar moves from other companies. I wonder if Kroger (KR) may eventually introduce Snipping Scissors Stout (a play on the cost-cutter brand), or perhaps United Dairy Farmers (a Cincinnati version of 7-Eleven) will introduce Mad Cow Beer. Thing is, 7-Eleven honestly believes that it will challenge premium beers with its new brew.
For the record, this beer will not be produced in the back of the store where the mops and cleaning supplies are stored. City Brewery (a well-established brewery) in La Crosse, Wisconsin, will be contracted to produce the malted hops and barley concoction. I will not get to taste any of the new brew, thanks to the dearth of 7-Elevens in southwest Ohio, but my guess is that it will be a decent beer, but not one that will have any of the brewery big boys shaking in their boots. As Jeff notes, it is the taste that will matter, so it is probably unfair of me to declare Game Day a failure before I taste the suds -- but that has never stopped me before.
I can't imagine Game Day Ice or Game Day Light making a big dent in the beer world. It will have the impact of Hudy Delight or Burger Beer, the local Cincinnati brews that are the butt of many jokes in the local beer community. Remember, premium brews are premium brews for a reason. Although City Brewery is going to help the company, 7-Eleven isn't necessarily a name associated with the word premium. Investors in Anheuser-Busch InBev (BUD), Molson Coors (TAP) and SAB Miller (SBMRY) no doubt can rest easy.
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