The idea that groceries will carry A-list craft beers, and relegate liquor stores to selling B-list beers, is likely incorrect.
Grocery stores have such tight margins that the stores will sell on the basis of $$ profit per foot of shelf space. That might be Bud Light, not a craft beer.
Here in CO liquor stores have a pretty tight margin, too (or they did years ago when I drove a beer truck). But you’re right: big brands will dominate because they’ll negotiate national deals with the grocery chains. It already happens with the 3.2 beer. That’s why liquor stores oppose it; they know that they’ll lose some beer sales to grocery chains that will sell it at a lower cost. Not sure that I care much either way, except I do know that plenty of liquor store owners in my town are assholes. I’m not sure about other places though.
March 31st, 2016 at 9:43 pm
The idea that groceries will carry A-list craft beers, and relegate liquor stores to selling B-list beers, is likely incorrect.
Grocery stores have such tight margins that the stores will sell on the basis of $$ profit per foot of shelf space. That might be Bud Light, not a craft beer.
April 1st, 2016 at 2:51 pm
Here in CO liquor stores have a pretty tight margin, too (or they did years ago when I drove a beer truck). But you’re right: big brands will dominate because they’ll negotiate national deals with the grocery chains. It already happens with the 3.2 beer. That’s why liquor stores oppose it; they know that they’ll lose some beer sales to grocery chains that will sell it at a lower cost. Not sure that I care much either way, except I do know that plenty of liquor store owners in my town are assholes. I’m not sure about other places though.