Thursday, January 31, 2008

99 bottles of beer? At a Discount too!

In one of our Core Classes [Marketing I think] our team came up with an analysis of the Wine industry-competition, should the winery sell to the big guys? Should they not? And so forth. It was quite fun, and it certainly helped that one of us was earlier in the wine industry [hoy@Emmanuel]. Now here is something along the same lines on the beer industry—Costco is looking to invest in private-label beers, using local Gordon Biersch as its brewer. See related article here

I love that a retailer chain like Costco is thinking about its own beer. Granted, am not a Costco member [I would probably save on kitchen rolls at best, and my place is too small to stash 50 rolls of everything]. But they have a ridiculously loyal customer base—who are obliged to enter Costco for every need [that yearly fee? Yep. That’s the catch]. And its not a bad deal at all, if you are buying enough things of value. Add beer to that mix [well, maybe a refrigerator too..i doubt they sell anything less than a 12 pack]. It’s a fairly popular drink, its usually bought in bulk, and bringing in the brand of Gordon Biersch only convinces the hesitant buyer into plonking it into their oversized carts already. And they are not, at this point, really competing with other retailers manufacturing their own beer brands either.

And for anyone who has been just reader on this blog, how about responding with a yes/no to the following question--- ‘Are you a Costco Member? Would you buy their brand of beer’?.

21 comments:

Shobana Biederman said...

I am a Costco member and I probably visit costco atleast once every 10 days or so. Granted, they do sell everything is large quantities, but we usually consume most of what we buy at Costco, even if it takes 3 months at times. I generally have this impression that Costco is not cheap meaning, you are not going to get meat or veggies as cheap as safeway, but what you do buy is often pretty decent is terms of quality. Occasionally, I do get pangs of guilt, when I am buying cheese cake in bulk! If Costco starts selling beer, I would expect people to start buying the Kirkland beer (Costco's brandname), much like they buy any other Costco items i.e. with an expectation of a decent quality product and maybe with a small amount of guilt for buying a 96 pack of beer.

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