Samuel Adams® and Rogue Ales may be filling your shoppers’ carts, but drugstore chains like Walgreens are introducing their own brews, as it recently launched Big Flats 1901 private-label beer, according to CNN Money.
Private-label products are popular with consumers for many reasons; but two of the biggest drivers are the recent increase in quality and their affordable price-point—which helps lighten the financial load that has so many shoppers bogged down due to the struggling economic climate. Nielsen reported private label made up a 10th of a percent of dollar sales in beer in U.S. supermarkets, drug chains, mass merchandisers and Wal-Mart (WMT, Fortune 500) during the 52 weeks ending Dec. 25, compared to 17.4 percent of dollar sales for all private-label goods.
CNN Money reported Benj Steinman of Beer Marketer's Insights stating, "In many categories private label really put a dent in manufacturers and brought more profitability to retailers."
Apparently, Walgreens isn’t the first to come out with a private-label beer. Kroger’s—Tap Room 21, caguama and Hollande 1620—and 7-Eleven’s Game Day also hit the shelves; but their impact on the beer industry is minor, and they’re not really pouring a notable amount compared to national brands.
Why? CNN Money had a couple things to say on private-label beer sales: Shoppers will like the store-brand pricing better compared to its more expensive counterparts; but that doesn’t mean your new brew is going to be flying off the shelves, and it doesn’t guarantee sales either. Perhaps, private-label beer sales aren’t tapping out because beer is one of the most brand-loyal product categories. Consumers take their beer choices to heart, often suggesting what brand of beer they drink says something about them.
On the other hand, in-store beer brands also create a “value impression", according to BB&T Capital Markets’ analyst Andrew Wolf, i.e., shoppers can get Bud Light anywhere; but they can only get your beer at your store.
It may be time to look at some hops and barely fusions available for private label … Just a thought.
Cheers!
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