![#](www.e-malt.com/images/left_top_corner16x200.gif) | E-Malt.com News article: Japan: Sapporo Breweries to launch new beer in collaboration with Seven-Eleven Japan Co.![Brewery news](https://e-malt.com/Images/BeerBullet2.gif)
Japan’s convenience store chains are increasingly tying up with food and beverage manufacturers to introduce private brand (PB) products amid consumers' craving for low-price goods and the growing presence of convenience stores with a strong selling capacity, The Mainichi Daily News reported on November, 22.
"We will ultimately aim to have the product overtake Asahi Brewery Ltd.'s Super Dry draft beer in sales volume," Yasushi Kamata, managing executive director of Seven-Eleven Japan Co., said on Nov. 19, referring to the chain's new PB beer, "Seven Premium 100 percent Malt," provided by Sapporo Breweries Ltd.
Hitting the store shelves on Nov. 27, the beer will be the first product to be provided by Sapporo Breweries specifically to Seven-Eleven. The move has sent shockwaves through the industry as breweries usually take great pride in their own exclusive brands.
Seven-Eleven leads the pack of major convenience stores in enhancing PB products. Its signature "Seven Premium" products first hit the shelves in August 2007, with seasoning spices and five other items. Today, the number of PB items sold at the chain totals some 800 items and accounts for some 30 percent of all items. The ratio of PB items to overall sales has soared from 1.8 percent in fiscal 2008 to 7.1 percent in fiscal 2011.
Lawson Inc. also introduced a range of PB items called "Lawson Select" in July 2010 and they now total 300, while FamilyMart Co. started selling "FamilyMart Collection" items at the end of October this year, with a scheduled offer of 500 items by the end of fiscal 2012.
The range of PB items has also diversified and includes more luxurious products. Seven-Eleven's "Seven Gold" series items, including high-end retort beef curry (348 yen), are each around 200 yen more expensive than conventional PB items, but "have gained support from consumers for their taste comparable to that of specialized restaurants," according to the company's public relations representative. FamilyMart also enjoys increased popularity of its high-end PB ice cream, priced at 250 yen, whose sales have beaten those of a popular name-brand.
Behind the phenomenon lies the heightened presence of convenience store chains amid dwindling sales at department stores and supermarkets. Gaining demand among women and the elderly, the sales of major convenience store chains last year shot up by 6.1 percent from a year earlier.
Quite a few manufacturers are also seeking to undertake production of PB items, with one food maker official saying, "Although the markup becomes slimmer, we can operate our factories if we produce PB items." A senior convenience store chain official testifies that manufacturers ranked in third or fourth place in the industry are more aggressive in undertaking PB products than top makers because the former makers have weaker presence at stores on their own.
"The more PB progresses, the more likely that only the top makers can survive, possibly leading to further industry realignment," said Takeshi Nishida, senior managing consultant at Fujitsu Research Institute, who is versed in PB issues.
23 November, 2012
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