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Slurpee(R) Grows Up; 7-Eleven Answers Changing Tastes, Needs of Maturing Customers

Thursday August 21, 10:27 am ET

link to press release

DALLAS, Aug. 21 /PRNewswire/ -- Slurpee®, the American frozen beverage icon created by 7-Eleven, Inc. (NYSE: SE - News), is pushing 40. And, some long-time loyal Slurpee drinkers ... well, they're getting up there too. First introduced in a 7-Eleven store in 1965, the Slurpee phenomenon officially began in 1967 when the frozen concoction became available in all 7-Eleven stores. The frozen, carbonated beverage was an instant hit.

While still considered a fun, refreshing treat for kids and teens, some Slurpee drinkers have grown-up tastes or changing nutritional needs. So, how does a beverage that gained fame as a drink with attitude for the perennially young, appeal to a growing "mature audience" while tending the tastebuds of its youngest up-and-coming customers? The answer, according to 7-Eleven Slurpee category manager John Ryckevic, is to create "something for everyone."

Summer is "Slurpee season," when annual sales peak as temperatures soar, the perfect time to introduce 7-Eleven customers to the hottest, newest flavors. This year's cool, new offerings ... Mountain Dew LiveWire, Crystal Light Pineapple Orange, SoBe Energy, Sprite Remix, Banana Split, Memphis Melon, Hawaiian Punch and, this month, the first ever 0-calorie (per 8-ounce serving) Slurpee flavor -- Diet Pepsi.

"You could say our Slurpee strategy is 'something old, something new, something borrowed, something blue,'" Ryckevic said. "Every summer we bring back some old flavor-ites like Blue Raspberry, Pina Colada, Super Sour Watermelon and Banana, and introduce some blockbuster new flavors. We also 'borrow' nationally branded beverages for new Slurpee flavors, and anything blue always sells."

This summer marks two firsts for Slurpee and demonstrates the changing world of beverages ... Diet Pepsi, the first diet cola flavored Slurpee drink, and ... Sobe Energy, the first Slurpee energy drink.

"We have flavors that appeal to kids, to teens, to fitness enthusiasts, dieters and diabetics, men, women," Ryckevic said. "From super sour to sugar- free to SoBe Energy, we've got a Slurpee flavor for everyone."

Diet Pepsi, the long-awaited 0-calorie Slurpee drink targeted to females and health-conscious consumers, will officially be available in all participating 7-Eleven stores Friday, August 22, 2003. According to Ryckevic, the Diet Pepsi flavored Slurpee is the first-ever calorie-free Slurpee drink (per 8-ounce serving). "It truly is a guilt-free indulgence."

Appealing to women, dieters, diabetics and others watching carbohydrate, caloric or sugar intake, the Crystal Light flavors offer great-tasting, sugar- free, low-carb alternatives to the sugar-sweetened flavors. "Pineapple Orange has been a great seller for us this summer," Ryckevic said. Crystal Light Strawberry Kiwi-flavored Slurpee drink will be available at participating 7-Eleven stores in October 2003.

The SoBe Energy citrus punch-flavored Slurpee drink, billed as the world's coolest energy drink, is charged with guarana, ginseng and taurine. Targeted to the 18-34 physically active customer, SoBe Energy is perfect as a treat before or after a trip to the gym or working out.

Mountain Dew has hit on several winning formulas to gain attention for its brand, Code Red, Blue Shock and this year's LiveWire. First introduced in limited package sizes, 7-Eleven has been close behind with a corresponding Slurpee flavor to each of the new introductions.

Fanta Banana Split flavored Slurpee beverage promises the flavor of chocolate, banana and cherry all rolled into one. Targeted to kids, ice cream lovers and more adventurous customers, the Banana Split Slurpee also is available this month.

"Flavor development is an exacting science," Ryckevic said. "Something may sound great, but creating a carbonated, frozen version that meets flavor expectations sometimes takes awhile. A few that sound great don't make the cut because they can't meet our flavor standards. Diet and calorie-free Slurpee flavors have posed challenges for years that we were finally able to crack." On average, 7-Eleven sells more than 13 million Slurpee drinks each month.

About 7-Eleven, Inc.

7-Eleven, Inc. is the premier name and largest chain in the convenience retailing industry. Headquartered in Dallas, Texas, 7-Eleven, Inc. operates or franchises approximately 5,800 7-Eleven® stores in the United States and Canada and licenses more than 19,200 7-Eleven stores in 17 other countries and territories throughout the world. During 2002, 7-Eleven stores worldwide generated total sales of more than $33 billion. Find out more online at www.7-Eleven.com .