Quebec-Based Alimentation Couche-Tard Wants to Acquire 7-Eleven — Here’s Why That Matters

When it comes to ownership, a non-insignificant number of American food brands are, in fact, part of international companies. A German family owns Trader Joe’s. Ben & Jerry’s, the quintessential Vermont brand, is under the arm of Britain’s Unilever. And Budweiser — the beloved “American-style” lager — is owned by Belgium’s InBev. 

And 7-Eleven had been one of those deceptively red, white, and blue companies — when in reality, it was actually red and white, the colors of the Japanese flag. And soon, it may remain red and white — just under a different flag: Canada. 

Alimentation Couche-Tard, the Quebec-based owner of Circle-K, Ingo, and its eponymous convenience stores made an unsolicited takeover bid for Japan’s Seven & i Holdings, the parent company of a vast network of 7-Eleven stores in Asia, the United States, and the world at large. The value of the deal wasn’t disclosed, but it will undoubtedly be in the tens of billions. 

Couche-Tard operates more than 16,000 outlets, while there are more than 85,000 7-Eleven stores. Analysts said it would be the biggest takeover yet of a Japanese company, turning the tables on a nation previously known for acquisitions, such as December’s deal by Nippon Steel to buy US Steel. Couche-Tard, whose name translates as “night owl,” is instantly familiar in Canada for its red owl logo, while Circle-K has nearly 7,000 American stores. About 950 of them are in Florida, but they are ubiquitous across the South and up through the Midwest. 

Across Asia, 7-Eleven’s stores have become famous on social media and television for their extensive (and generally high-quality) food offerings, from freshly made sushi and noodle dishes, to rows upon rows of snack foods. International locations also offer shoppers the ability to get cash from ATMs, exchange foreign currency, pay bills, use photocopiers, and arrange for package and luggage deliveries. 

The takeover offer comes at a busy time of food business acquisitions. Last week, Mars, best known as the maker of M&Ms, Snickers, and its eponymous candy bar, agreed to buy Kellanova, whose crunchy lineup includes Pringles and Cheez-Its. Until last year, Kellanova was part of the W.K. Kellogg Company, which divided itself into two separate entities last year. That deal was valued at a staggering $35.9 billion. 

“Couche-Tard’s bid to acquire Seven & i is consistent with a broader trend of consolidation across the gas station and convenience store category,” R.J. Hottovy, the head of analytical research at Placer.ai, a retail and restaurant industry analysis firm, told Food & Wine. 

If the deal goes through, the resulting merged company will become one of the world’s largest retail groups and have the leading market share in the convenience store category in terms of visits by shoppers, Hottovy said. That would give the company the power to keep prices high, and if the acquisition talks move any further, it could even raise anti-trust issues.

The deal also could unlock potential in electric vehicle charging as Circle-K has promoted itself as a destination for consumers who own EVs, declaring that its new EV chargers “can charge your car while you recharge, too.” It has EV chargers in the Northeast, Northwest, in California, and in the Southern states — with more in the works.

Meanwhile, 7-Eleven’s Japanese management had vowed to make the company more environmentally friendly in coming years. It has also stressed its EV charger program, which resulted in the equivalent of 3.6 million miles of travel charged in 2023. 

7-Eleven is among a group of convenience stores in the United States that’s doing more business with small local and regional companies. Analysts say younger consumers especially want to see a wider variety of snacks, food, and beer beyond the big brands, and the growth of international grocery stores is posing a challenge to their corner of the market. The chain was already making strides toward giving its American stores more of a Japanese atmosphere. In February, Bloomberg reported that Ryuichi Isaka, Seven & I Holdings’ CEO, had been focusing on how to grow business in the United States — a major reason why 7-Eleven acquired both Sunoco and Speedway. One idea, Isaka said, was to offer fresh food. Now, 7-Eleven could find itself gobbled up instead. 

But it’s yet to be seen if a new Canadian owner can leverage 7-Eleven’s cool factor.