[Asia Economy Reporter Seungjin Lee] The private brand (PB) products of convenience stores are rapidly growing in the convenience store cup coffee market.
Seven Eleven announced on the 27th that sales of its PB product, 'Seven Select Cup Coffee,' increased by 60.9% compared to the same period last year. Over 15 million units have been sold in the past year. Seven Eleven operates a total of 10 Seven Select cup coffee products, including seven types of 'Transparent Cup Coffee' and three types of 'Your Ordered Cup Coffee' in collaboration with Baedal Minjok.
The sales rankings are also at the top. Looking at the top 20 selling Seven Eleven cup coffee products this year (out of 75 in total), 'Your Ordered Caramel Macchiato' ranked 3rd, the highest among Seven Select cup coffees, followed by 'Your Ordered Cafe Latte' at 4th and 'Transparent Cup Cafe Latte' at 7th, with a total of eight products making it into the top 20.
The market share of PB products within cup coffee has also increased significantly. As of the second quarter of last year, Seven Select cup coffee's market share was 14.1%, but it exceeded 30% in the third quarter (July) of this year.
The existing convenience store cup coffee market was dominated by well-known manufacturer brand (NB) products. However, recently, PB products that differentiate themselves with cost-effectiveness and innovative ideas have shown remarkable progress, significantly increasing their influence in the convenience store cup coffee market.
The price of Seven Select cup coffee is 2,200 KRW (based on 320 ml), which is more than 10% cheaper than NB products of the same volume. Additionally, the product lineup focuses on popular menu items such as Americano, Latte, and Caramel Macchiato, which is a key factor in its success.
Also, 'Your Ordered Cup Coffee' attracted consumer attention as a unique collaboration product with Baedal Minjok. The package phrase (Your ordered Americano is ready), inspired by the situation where coffee ordered at a coffee shop is served, reflects Baedal Minjok's distinctive B-grade sentiment and humor code.
Seven Eleven plans to strengthen competitiveness by expanding the current brand's product lineup and developing new series products as Seven Select cup coffee gains positive consumer response and establishes itself as a representative product.
Oh Ming-guk, head of the beverage and liquor team at Seven Eleven, said, “Customer perception of convenience store PB products has shifted from being cheap products in the past to differentiated products now, showing good results in various categories. As more consumers seek convenience store cup coffee recently, there is a growing tendency to look for more fun and unique products if the taste is the same.”
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