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Recently, the Wall Street Journal ran an interesting piece about the rise of private-label beers appearing on the shelves of big names stores like Walmart, Walgreens, and Supervalu. As times are getting tough, retailers are hoping to get the attention of cost-conscious drinkers with super-cheap beers that price right up there with the likes of Colt 45, Natty, and Icehouse. Of course, price is not necessarily directly proportional to quality; it is well within reason for the major retailers to turn out a decent brew for next to nil when they don't have to spend on advertising or other promotions to build brand loyalty. Hey, does that can of store brands beans taste that bad? At least its not Japanese Happoshu, a low-cost, "fake beer" alternative.
However, isn't beer all about "being cool"? Even Keystone Light has a certain image target that makes its fans feel proud. Traditionally, private-label beers have made up less than 1% of the market. However, I think that the climate may be primed for the private-label brewers to make off like bandit. In the past few years, we have all seen a rise in the number of microbreweries and craft brewing. As a result, we are training ourselves to slip past the well known brands and explore the beer aisle. With some good labeling and a catchy name, there is nothing stopping you from picking up that private-label beer. Of course, you probably could take out your smartphone and do some research, but the craft brew movement is about experimenting, isn't it? And as I said earlier, savings in logistics and marketing doesn't equate to bottled deer urine. In fact, I think that if more major retailers took Costco's approach with their private-label craft line, Kirkland Signature, they could really cash in and take away market share from the big boys. Perhaps with reductions in cost and tip-toeing around the three tier system we could taste some really great beers at a good value. Will others follow or will they just try to beat out the malt liquor? Without Four Loco, perhaps people will be willing to try something new.
The real kicker is that as the economy began to slump, beer and other products classified in the "sin" category (e.g., cigarettes), did better. Craft Beer sales went up in 2009, and major beer players like Diageo and Heineken have shown strong growth since 2009. We might bring lunch to save for car insurance, but when its time to pony up to the bar, we deserve a little indulgence, don't we? Then again, it may be the real connoisseur or perhaps the real cheapskate in you, but why not try making your own homebrew?