7-Eleven Makes 7 UP Theirs

Reuters reports that 7-Eleven Inc. is making 7 UP the recommended lemon-lime fountain soft drink at its convenience stores across the United States under a multiyear deal. The agreement between 7-Eleven and Dr Pepper/Seven Up Inc., a unit of London's Cadbury Schweppes Plc, covers up to 5,300 U.S. 7-Eleven stores, just under 3,200 of which are franchised and may choose whether or not to go with 7-Eleven's 7 UP recommendation. 7-Eleven stores also may choose to carry more than one lemon-lime soda if the consumer demographic for that particular store demands more than one offering.

7-Eleven already counts teens and young adults as core consumers of its Slurpee frozen drinks, but fountain drink consumers are typically older, according to John Ryckevic, 7-Eleven's product director for proprietary beverages. The company wants to target younger consumers to continue growing fountain sales, Mr. Ryckevic says.

New product introductions, distribution, marketing and advertising could also stem from this agreement, say 7-Eleven's Mr. Ryckevic and Mike McGrath, president and chief operating officer for 7 UP. One way is to add more flavors to its Slurpee lineup. Dr Pepper-flavored Slurpee was introduced in Texas last month and will be available in about 2,400 U.S. stores by the end of June, according to 7-Eleven.

Moderator Comment: Will 7-Eleven's broadening of beverage offerings translate to significantly greater fountain sales to younger consumers?

Big win for 7 Up at 7-Eleven. We wonder, however, if younger consumers prefer to buy from the case, won't they continue to purchase from the cooler instead of the fountain? [George Anderson - Moderator]

• U.S. 7-Eleven Fountains to Feature 7 UP in New Pact - Reuters