I just saw this interesting item on Drinks Business, a European news organization covering … well, the drinks business. When I think of the beer Costco sells, I tend to think of those ginormous 30-packs of megabrand cans or bottles. Many of those multi-packs were created just for Costco, Sam’s Club and other warehouse chains. But according to the article, “Costco has announced that craft beer now accounts for 30% of the company’s total beer sales.” That’s over 4-1/2 times the national average and over twice California’s market share. Impressive.
Ted Fox says
Next time I’m at the Costco in Chico I’ll take a picture of the beer aisle, its all “craft”. It may just be that Costco loading dock is basically right next door to SNVB shipping & receiving though. There used to be mountains of BMC but now thats dwindled to a couple pallets.
joh says
That lead beer is only craft if you count AB/InBev as craft brewers! http://beerpulse.com/2011/03/anheuser-busch-to-buy-goose-island-for-38-8-million/
Jay Brooks says
That’s also assuming that the photo reflects the brands Costco sells, which I have no idea if it does. It looks like a stock photo, and it’s the one that Drinks Business used with the story, but there’s no indication of its origin or where it came from.
Richard says
Goose Island no longer qualifies as craft beer in my opinion, since they are wholly owned by InBev-Anheuser Busch and now serve as the “crafty” output from that huge macro-conglomerate determined to squeeze independently owned brewers out of the market. Where I’m at (San Diego, craft beer CAPITAL of the U.S.), you can get Iron Fist, Stone, AleSmith, Ballast Point, Green Flash, and Karl Strauss beers. I’ve yet to see anything available from Brooklyn Brewing out here.
Jay Brooks says
Why is everyone focusing on the photo? The photo, as far as I know, is simply a stock photo used by “Drinks Business” to accompany the story about Costco. There’s no reason to believe it reflects the brands that Coscto sells, since each region carries somewhat local brands.
Mark Kornmann says
Agree w/Jay on the “stock photo” – what I’ve noticed at my local Costco (Richmond) & @ others lately is a proliferation of 650 (22 oz) & 750 ML craft brews (at better prices than you’ll find in any liquor store/BevMo). At mine, I can almost always find 1 or 2 Lagunitas, SN (PA always; rotating “other btwn Tornado & seasonals, including Celebration, which I buy tons of when it’s around), & Anchor products, plus something from Deschutes, Firestone, Gordon Biersch (which makes some of their Kirkland-branded brew), & Mendocino (usually a case of 4 6’s of 4 different brews labeled “Cast of Hawks”, sold for $22-23 + CRV, etc). Costco’s also gone “upscale” on a lot of meat/dairy/produce products, as well as booze & wine, & I see a lot of upscale vehicles’ tanks being filled up when I gas up there. I buy a lot of my beer & booze there, as it’s close to home (1.8 miles) & the price is right for what I like to drink, plus I get huge benefits from their AE card & having a shared “executive” membership – the rebates my roomie & I get from that pay for the renewal every year. Costco’s a well-run business & treats its employees far better than Walmart, & presumably Sam’s Club (by default, as it’s a Walmart offspring) do – there are many employees @ my local who’ve been there for 10+ yrs.
Further note on Costco – they challenged & beat WA’s liquor distribution system; however, the prices up there (based on what I saw when I was in Bellingham in May; same held true @ a new BevMo I visited) are still 50% higher than in CA, but Costco’s shelf tags spelled it all out – the deal is that WA is going to collect 20% tax on the booze for 2 yrs, & there are other issues that I haven’t researched thoroughly. Bottom line is that even tho the State liquor stores are gone, the prices have yet to drop significantly – that may happen in 2015 (educated guess based on what I saw/heard while up there; one of Jay’s WA followers should know the full skinny).
beerman49 says
Have to disagree somewhat w/Richard about Goose Island. All I’ve seen & read is that GI got $$ & a distribution network for product placement (for sure it’s in a lot more places than it used to be), plus maybe some use of A-B’s capacity in StL. The original spot in Chicago still can do its creative thing (was part of the deal). For God’s sake, Sam Adams had to have a lot of “sugar daddy” $$ to be able to advertise & to use semi-idle plants on both ends of the US to increase production (the profits from which enabled them to buy the space.
Bottom line is that the definition of “craft” brew is evolving & will continue to evolve for a long time; for sure, some popular others who have wide distribution will “sell out” – who remains to be seen. The problem for the “mom & pop” brewpubs down the line will be the cost of getting grain & hops, unless a small farm system to supply them arises – a la those which supply restaurants w/high-end veggies & meat. The current proliferation of start-up brew(eries/pubs) most likely is related to cheap financing, which won’t last forever. Only those who have big backups or who have good business sense will survive – similar to what occurred in the late 90’s & early 00’s. Smart business people survive whatever; “pipe dreamers” don’t when the economy goes south.
Camden Bialas says
What is the name of that beer to the far left?
Jay Brooks says
Sierra Nevada Torpedo Extra IPA