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Seven Eleven’s private brand coffee becomes huge hit in South Korea

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SEOUL, South Korea – A coffee brand launched by convenience store chain Seven Eleven has become a giant hit among customers, company officials said Tuesday, proving that new and small-name labels can beat established brands.

Seven Eleven said its “Seven Cafe” coffees launched in January last year were the top sellers at its stores in the second half of this year as of Nov. 16.

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“This is the first time that a private brand product outdid products by national brands and became a best-seller,” a company official said. “Our effort to meet consumer demands through good-quality products with high cost effectiveness seems to have worked.”

Seven Cafe outsold Banana-flavored Milk, the traditional top seller at all convenience stores, which during the period fell to second place. The top 10 sales list at Seven Eleven showed four more private brand products, attesting to the rising popularity of such labels.

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Private brands rely heavily on word of mouth for marketing, especially through the Internet, instead of using expensive advertising. Yet, they gain instant fame through young customers who share product reviews on their social networking services, company officials said.

The convenience store chain had its coffee brand at 1,000 stores at the end of last year, and now has it at over 4,200 nationwide, according to the company.

“We expect continued growth in convenience store private brands,” said Kim Sung-cheol, a manager at Seven Eleven. “There will be more megahit products with the customers.”

SourceYonhap
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