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No more Bud/Miller/Coors at my local Costco

Discussion in 'Beer Talk' started by Dchlocal, Feb 5, 2013.

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  1. Dchlocal

    Dchlocal Jun 1, 2011 California

    I was at my local Costco today and noticed a sign. I should have taken a picture of it but it said in more words then this is they will not be carrying any more Coors, Miller or Bud products. It said something about them not being able to give their customers the lowest price possible. It doesn't matter to me but what does this mean? I also was surprised to see the Firestone Walker 24 bottle mixed pack with Velvet Merlin, Pale 31, DBA and 805. I am so hoping this means more floor space for craft beer. Anyone else seeing this at their Costco?
     
    MilkManX and brewbetter like this.
  2. coachdicarlo

    coachdicarlo Apr 20, 2012 Missouri

    Wow. This would be fantastic. Probably not so good for the bottle shops though.
     
  3. luwak

    luwak Mar 2, 2010 Arizona
    Beer Trader

    If this is true it is amazingly great news!
     
    brewbetter likes this.
  4. einhorn

    einhorn Nov 3, 2005 California
    Beer Trader

    Just guessing that it has to do with wanting to have their own case size. In many states, liquor laws require posting of prices, which mean that EVERY store in a certain area (usually county) receives the same pricing for a certain SKU. In order to undercut the other guys, they need a lower priced and unusual case size which no other retailer is supposed to have access to.
     
    jmccullough108 likes this.
  5. Dtapeski

    Dtapeski Oct 26, 2012 Colorado

    Often times situations like this are a "shot across the bow" to tell the brand/s to get their pricing in line or lose the business. Would not be surprised if this is the case.
     
    beergurujr likes this.
  6. Ohsaycanyoubeer

    Ohsaycanyoubeer Feb 8, 2012 Colorado

    So what... on that matter... the Kirkland Branded "craft beer" aint bad for mass produced swill for parties. Usually at $20 a case. I try to buy it for parties when there would usually be only a BMC product. Who knows who is going to like it and explore more craft beers of the style.
     
    Redrover likes this.
  7. Mothergoose03

    Mothergoose03 May 30, 2005 Michigan
    Subscriber

    It will be important to hear whether other Coscos are doing the same thing. Then we'll know if something's up.
     
  8. Ri0

    Ri0 Jul 1, 2012 Wisconsin
    Beer Trader

    I'll check at my brand new Cosco in Sun Prairie, WI.
     
  9. ShogoKawada

    ShogoKawada May 31, 2009 Pennsylvania

    'tis true, or as true as an internet factoid can be. Pictures of the notice popped up in my FB feed over the weekend. If I can find it i'll repost.
     
    luwak likes this.
  10. bbpro47

    bbpro47 Mar 8, 2011 New Jersey
    Beer Trader

    found this on google

    [​IMG]
     
    jwjon1, FishAndBeer, pudgym29 and 7 others like this.
  11. Droogins

    Droogins Sep 4, 2012 Massachusetts

    This made me think. I've thought about this before, but I've had just enough Sucks to post about it.

    I know we all hate BMC. Their beers are terrible. You wouldn't catch me dead buying any of it--I have reliable access to Narragansett, so there's no need for me to turn to BMC for AAL. But should we really be treating every damn big-beer loss as a craft-beer gain? We belong to a niche market. I'm sure there's a more technical term for it, but we consume a product made by craftspeople. Were this to become a huge industry on a comparable scale to BMC, wouldn't more Business and Management majors decide to enter the beer "game"? Wouldn't the whole thing suffer immensely if the brewers who happen to be businessmen were, in time, replaced by businessmen who happen to be brewers?

    I know Lagunitas and SN have to make a living just the same as Pretty Things or Uintas or what have you. I know it's absolutely awesome to give someone a real beer and see the eureka all over the person's face; I know it's awesome to see people wake up and get into real beer. But the way I look at it, BMC is here to stay and craft beer caters to a niche market and I see no problem with this. I was sad to hear they bought out GI and I can't decide whether I'm angry at or amused by Black Crown, but this mentality of wanting to see craft be huge gives me reservations.
     
  12. CurtisMcArthur

    CurtisMcArthur Dec 31, 2009 Tennessee

    Basically Costco wants "deals" cut to them for buying large quantities of beer. They usually try to buy a pallet at a time, and work out discounts directly with the breweries, not the local distributors. Believe it or not, but BMC do care about the freshness of their products, and as a result of these "pallet drops" alot of beer tends to go out of date before it is sold. I think this incident is more about BMC not cutting Costo a price break because they really don't sell that much beer when compared to grocery chain's beer sales.

    I work for SweetWater Brewing Co. and, in most cases, we choose not to do business with wholesale stores due to the reasons I mentioned above.

    Cheers!

    Edit: hey Droogins, enjoying some Sucks as well!
     
    jimmy666, beerme411, acevenom and 3 others like this.
  13. OneBeertoRTA

    OneBeertoRTA Jan 2, 2010 California
    Beer Trader

    I drained poured every single bottle after I tried each one. Anyone know the supplier? Wouldn't be surprised if it was Karl Strauss...
     
  14. Ohsaycanyoubeer

    Ohsaycanyoubeer Feb 8, 2012 Colorado

    To us - it's horrible.

    To a BMC drinker - it's a gateway beer.

    I remember that I got interested in craft beer because of... cough.... Blue Moon.
     
  15. OneBeertoRTA

    OneBeertoRTA Jan 2, 2010 California
    Beer Trader

    The list price needs to be the same but they can offer discounts (to every account) that only Costco or giant retailers with warehouses can meet. I.e, 500 case deals. Problem is, most grocery and liquor stores (Rite Aid, CVS, etc..) already buy those huge deals and have scans and partner with other products. Costco isn't a fan of not having special treatment and they get angry when they see the same products cheaper somewhere else...
     
  16. OneBeertoRTA

    OneBeertoRTA Jan 2, 2010 California
    Beer Trader

    Is that the beer that comes with an orange floating in it?
     
  17. GreenKrusty101

    GreenKrusty101 Dec 4, 2008 Nevada

    Just bought a $5.99 bomber of Sculpin at Costco in Carson City that had a "best buy date of 11/12"...deals are not always deals.
     
    harrylee773 likes this.
  18. chefkevlar

    chefkevlar Apr 17, 2010 South Carolina
    Beer Trader

    Who wants to bet that this is to get public opinion on their side for when they try to get states to pass laws allowing them to buy beer straight from the breweries and skip the distributor tier. Next you'll see signs that say, "in order for us to get the best prices for your BMC we need you to contact your state legislature and voice your support for bill xxxx-xxx"
     
    mychalg9, antzman and beertunes like this.
  19. jesskidden

    jesskidden Aug 10, 2005 New Jersey
    Subscriber

    Gordon Biersch and F. X. Matt - "San Jose, CA" and "Utica, NY" - the clues since they use dba's.
     
    MilkManX and OneBeertoRTA like this.
  20. Ohsaycanyoubeer

    Ohsaycanyoubeer Feb 8, 2012 Colorado

    A long time ago, and a few thousand beers in the past... Yep.
     
  21. OneBeertoRTA

    OneBeertoRTA Jan 2, 2010 California
    Beer Trader

    Thanks. I picked up mine in So Cal. So probably Gordon Biersch?

    The Amber tasted like Red Trolley which was not a good sign...
     
  22. Schmuck82

    Schmuck82 Nov 13, 2008 Texas

    If people want to drink BMC, fine, more craft available for me. Don't see what's so great about this.
     
    EyePeeAyBryan likes this.
  23. cbeer88

    cbeer88 Sep 5, 2007 Massachusetts

    Costco tends to be one of the country's largest retailers of just about anything that they decide to sell. Their entire model is based on minimal selection and incredibly massive volume. Basically, having your product chosen for sale by Costco is extremely valuable, but it comes with a cost - Costco doesn't want you undercutting the pricing deal they strike with you. If you sell your goods cheaper elsewhere and Costco finds out, they will stop carrying your product. Many large brands have tested it and gotten promptly removed from Cosco shelves.

    I'm guessing this is what happened here - Costco caught the BMC brands selling their stuff off to Walmart or some other store at a cheaper price.
     
    gjahn123 likes this.
  24. Providence

    Providence Feb 24, 2010 Rhode Island

  25. OneBeertoRTA

    OneBeertoRTA Jan 2, 2010 California
    Beer Trader

    That's almost never the case. The cost of acquisition is pretty damn close at all the big chains and club stores who buy in bulk, but Costco's advantage is that their revenue is predominantly drawn from annual memberships. They will run at a far lower (often single digit) margin than everyone else. That is until crazy places like Total Wine started bringing Loss Leaders to the beer/wine/spirits world.

    Costco also likes to flex muscle with "We aren't accepting price this year." That doesn't work well given they buy at the highest volume deal levels and COGS go up for suppliers every year. Coke was the test case two years back. They wanted to take price, Costco said no and booted them. Unfortunately, name brands that draw customers such as Coke had Costco back peddling and begging for them to come back.

    Beer is one of those products that never had draw in Costco. It wasn't bringing people to their stores. The BMC consumer was one of the few that Costco could do without, pain free.
     
    mychalg9 likes this.
  26. Providence

    Providence Feb 24, 2010 Rhode Island

    1.) I think this is great and would love to see more stores do it.

    2.) Does this really mean EVERY BMC product, including BCBS?

    3.) I doubt this last forever. I can't imagine places that sell beer do well when the oust the nations favorite beers.
     
  27. ilikebeer03

    ilikebeer03 Oct 17, 2012 Texas

    I'd take that deal.
     
  28. shand

    shand Jul 13, 2010 Florida
    Beer Trader

    I doubt they'd be landing pallets of BCBS anyway.
     
  29. Lethal04

    Lethal04 Sep 3, 2009 Missouri

    I wouldn't, seeing how you could buy a fresh 6er for less $/oz
     
  30. Providence

    Providence Feb 24, 2010 Rhode Island

    I see. I actually have never even seen a Costco, are they a "bulk" buying store?
     
  31. einhorn

    einhorn Nov 3, 2005 California
    Beer Trader

    Not in California. Same price for same SKU in same county. No break discounts.
     
  32. OneBeertoRTA

    OneBeertoRTA Jan 2, 2010 California
    Beer Trader

    There are no price structures?
     
  33. SammyJaxxxx

    SammyJaxxxx Feb 23, 2012 New Jersey
    Subscriber Beer Trader

    Dont buy beer at Costco (or Walmart)
    Support your local bottle shops.
     
  34. rholmes

    rholmes Sep 11, 2012 Florida

    I watched the MSNBC documentary on Costco recently since my mother is an employee there. I forget all of the specifics of it, but basically they do not sell anything at more than a 15% markup. I'm assuming they couldn't get it at a low enough price to stay under this markup amount.
     
  35. shand

    shand Jul 13, 2010 Florida
    Beer Trader

    Yeah, they're a warehouse store, and all of the beer they sell they get in full pallet form, and typically are sold to consumers by the case, with some exceptions.
     
  36. coachdicarlo

    coachdicarlo Apr 20, 2012 Missouri

    Basically the same thing as Sam's. it's a wholesale club
     
  37. einhorn

    einhorn Nov 3, 2005 California
    Beer Trader

    No, officially prices must be posted 30 days before they go into effect, new products 10 days beforehand.

    No rules for cider or wine.
     
  38. Brokentalontsi

    Brokentalontsi Nov 10, 2012 Texas

    Truth here. We sell beer at the same price regardless of your level of retail (grocery, convenience, package liquor, etc) and the big box stores are very selective of what they will carry. We refuse to sell beer cheaper to Costco and SAMs knowing damn well we can sell beer elsewhere for full price. Fuck them trying to screw over the local distributor on beer prices... You think ABI is cutting us a deal just to sell to Costco, one of two places that does nothing to help us...
     
    beergurujr, frazbri and SammyJaxxxx like this.
  39. kcp85

    kcp85 Sep 7, 2012 Missouri

    I agree, however I bought a case of SN Pale Ale for $23 at Costco. Couldn't pass that up.
     
  40. Johnnyramirez

    Johnnyramirez Nov 17, 2012 California

    Does every thread that BMC is brought up in have to also have BCBS brought up? Really? Not to mention that no one has had AB/InBev BCBS yet
     
    evilc and franklinn like this.
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