Private Label Beer Gets Some High-Profile Exposure
The adult beverage segment is ripe for growth in private label, and more retailers are working to expand their assortments of wine, beer, and spirits as they look to offer shoppers unique products priced below similar national brands.
Still relatively small in terms of annual dollar sales, alcoholic beverages are clearly a targeted growth category as consumer confidence in private label products as a whole grows. Recently, Aldi rolled out a new assortment of ready-to-drink (RTD) summer adult beverages that include fruit-infused seltzers, a new radler, and a new cider flavor. The new selections hit store shelves in early April with products available in approximately 2,000 of Aldi’s 2,400 stores.
“The category is working for us and helping us bring in new consumers,” said Arlin Zajmi, director of National Buying for Adult Beverages with Aldi. “We have also been able to give consumers more options and trade them up into other (Aldi) brands we have in the space.”
This past November, the Private Label Manufacturers Association at its annual trade show in Chicago presented its Wine & Spirits Pavilion that featured more than 30 companies showcasing their wares to retailers. The show also featured a discussion with leading suppliers and retailers focused on the private label opportunities with alcohol.
More recently, store brand beers were put in the spotlight by The Wall Street Journal. The premise of the story, which also highlighted five private label beers currently available, was that while many shoppers are accustomed to buying store brand cereal to save money, it may be difficult for many to choose a store brand beer over their long-standing national brand favorite.
But retailers are working to change consumer perceptions of private label beer and working with craft breweries to produce unique items.
Russ York, corporate buyer for Wine, Beer, and Spirits at Costco, told The Journal the warehouse club wanted to make a beer so good that no one could complain about the price or its quality.
As part of its coverage, The Journal highlighted five private label beers currently available.
• Wegmans Hazy IPA: The product is available in all Wegmans stores legally allowed to sell beer and priced at $17.99 for a 4-pack of 16-ounce cans.
• Aldi’s Crisp Pilsner: A 4-pack of 16.9-ounce cans is priced at $6.99
• Trader Joe’s Treat-Turned Beer. A 16-ounce can is priced at $3.75
• Costco Kirkland Signature Helles-Style Lager: A 12-pack of 12-ounce cans is priced at $14.
• Stewart’s Shops Mountain Brew Lager: Two 19.2-ounce cans are priced at $4 for shoppers at the convenience store chain
