In recent years, private label beer has seen a significant increase in sales in stores. For many years, private labels dominated the shelves. However, it has been difficult for store brands to succeed. Well-known brands have launched many low-priced beers. These brands were trusted by beer consumers in the past. Today, the change in the situation has given private label beer a real opportunity to develop.
Consumers are now more concerned about the value for money of beer. They want good taste, but don’t want to pay a high price for premium beer. Breweries now have more space in their factories to produce beer for stores. Producing private label beer is a better option for them. Large stores like Costco and Walmart have also made plans to invest in private label beer.
The structure of the beer market has changed a lot compared to the past. Beverage analyst Jim Watson said that it is difficult for private label beer to enter the market. He said this because there are many low-priced and well-known beers on the market. Watson pointed out that people want good beer at a reasonable price, but it is difficult to find. Some small breweries have reduced the production of new varieties of beer.
Watson said the market is ready for private labels. He believes private labels are now more open than ever. Last year, private label sales grew 4% overall. A survey found that many shoppers will soon buy more store brands.
How popular these beers are is not just a theory. Grocery store beer brands saw sales increase by over 122%. Retailers known for their private label brands are doing well in the beer section.
Aldi is a great example of this trend. 90% of their total inventory is private label products. Aldi has doubled their beer assortment in two years. They now offer 16 main varieties, as well as seasonal varieties. These added options mean a significant increase in sales.
Trader Joe’s is a retailer with a long history in the local area. They sell beer under the Josephsbrau brand. Various Boatswain IPAs are also part of their offerings. Their approach mimics the styles that are popular among craft brewers.
Costco has previously used Kirkland Signature as the name of their beer. This name covers a lot of different products that they sell. One of their recent beer launches has worked really well for them. A Hellish style lager was released in the fall of 2024. This lager has received positive reviews from buyers. The Wall Street Journal reports that Costco finally found success with this beer.
The key to success is who brews their beer for them. Kirkland Lager is actually another beer name. It’s named Prinz Crispy from Deschutes Brewery in Oregon. This brewery has won a gold medal for this type of beer. Partnering with well-known brewers helps store brands succeed. They leverage the quality and craftsmanship of well-known brewers.
Walmart, the largest grocery chain, is also taking action. Walmart seems to be preparing to launch its own beer. They have reportedly named this series “Master Brews.” The labels look like popular beers that are already sold. They are similar to the packaging of Modelo, Michelob Ultra, and Bud Light. This shows that they want to directly challenge the major beer sellers.
Some small convenience stores have been working on store beers for years. Stores like Sheetz, Rutter’s, and Stewart’s have all dabbled in it. Stewart’s Shops is a chain that has relaunched its beer brands. They operate mainly in New York State and have 400 stores. Their specialty beer brand is Mountain Brew.
It operated for a decade until it was discontinued in 2020. The old version had mixed reviews. But the new lager is now a big hit. The success of the refreshed beer is significant. Sales have more than doubled as expected, the spokesperson said.
Part of its appeal is that people already know the name. That helped it catch on, the spokesperson said. The previous Mountain Brew Ice wasn’t everyone’s cup of tea. The new lager uses the old name, but is higher quality and more local. The old version was brewed by a different brewer far away. The new beer is brewed by nearby Paradox Brewery.
Lower prices are also key to Mountain Brew’s appeal. A 19.2-ounce beer costs just $2.19. That’s a great deal for those who value value. The brewery is working to increase beer production. Demand is so high that the brewery is adding more tanks. The director said they filled all the open tanks with this beer.
Paradox Brewery hopes to capitalize on this success. They are working with a supermarket chain to develop another beer. This shows that these deals are beneficial to all parties. The store brings its own beer and the brewer uses their equipment. A successful store beer partnership is beneficial to both parties.
Shoppers today think differently about merchandise. Today, it’s acceptable to look for a good deal. Seeking value for money is now considered smart or trendy. Why pay more for a store-brand beer if it tastes just as good? This question is critical to the success of store-brand beer.
Rutter’s stores are showing the same pattern. The launch this time is a hazy IPA beer called Rainy Daze. They partnered with Rusty Rail Brewing Company to brew it. The beer is available for a limited time. The manager said the strategy has given customers a new experience. Rutter’s hopes to add more to the new bar space.
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The growth of store brand beer has made some brewers uneasy. This is particularly troubling for independent craft breweries. Brewer Tom Bruce has publicly stated that store-produced beers are highly “copycat”. These beers look like craft beer, but they are not. He thinks this is seriously undermining the interests of small brewers.
Tom Bruce is very upset. He thinks beer buyers are being deceived. The marketing of store beer deceives people, and small brewers face unfair competition. They compete with large multinational companies, and large stores control all the shelf space. It is difficult for small brewers to have a presence in bars. Large interest groups influence many bars. They give bars special offers. Small brewers usually have only one tap. Hundreds of brewers want to have this tap. Competition is extremely fierce. Store brands now bring more pressure.
Store beer rise is not just short trend. It is mix of economy, buyer habits. People want value trust the stores. Brewers have extra space maybe. Stores use data make good products. Making trusted store brands is the goal. Store beer will get more market share.
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