Monday, February 8, 2010

Costco and the craft beer market

Posted by Jonathan Bender on Mon, Feb 8, 2010 at 3:00 PM

click to enlarge costco.craftbeer.jpg

Is it still a craft beer if it's made and sold for a warehouse club?

That's been the debate since Costco introduced a line of Kirkland (its in-store brand) handcrafted beers in 2008. The mixed case of four six-packs (Pale Ale, German Lager, Hefeweizen, Amber Ale) for $18.99 has returned to area stores.

While Costco hasn't said which brewers are contract-brewing the beer, it's widely thought that Gordon Biersch (it's a California brewery in addition to the brewpub you may know from the Power & Light) is producing the six-packs for the West Coast, while the East Coast and Midwest are receiving bottles from the Matt Brewing Company (makers of Saranac) in Utica, New York. The Costco packaging says the beer is produced by the New Yorker Brewing Co. based out of Utica, and the Matt Brewing Company is the only brewer in Utica -- hence the prevailing wisdom that the Saranac brewer is also contract-brewing the Kirkland line. 

The Kirkland brand is cheaper than Boulevard and New Belgium's Fat Tire, at $1 per bottle. The reviews suggest that the beer is cheaper for a reason.

Meanwhile, homebrewers have found that the labels come off easily when soaked in Oxy Clean and the pop tops are easily reusable. So, even if you don't love the beer, it's not a terrible deal for brown bottles and the ale inside. 

Liquor makes up a big part of Costco's sales, with wine reportedly accounting for $1.1 billion in 2009. The warehouse club, which is headquartered In Seattle, has spent the better part of the past decade fighting to change the beer and wine law in its home state; it sits in the middle of a larger national debate over strict regulations governing the sale of out-of-state wine and beer.

So, should Costco stick to repackaging cheese and trash bags -- or is the handcrafted ale and lager worth a sip?

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everything at costco is 100% returnable, even alcohol (at least in my state), with the exception of their major electronics

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Posted by Chino0614 on August 4, 2011 at 8:37 AM

I've bought three cases of this and it's not bad. Not the best thing, but it's a little nicer to have in the fridge when company comes over than similarly priced InBev/Coors/Miller products.

For that alone, it's worth the money to me. The German Lager is my favorite thus far.

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Posted by ryan on March 4, 2010 at 9:55 AM

Realist, I'm highly flattered, but I don't have a Costco membership and, frankly, would have the same hesitation as you.

I think Mr. Bender should use his vast Pitch expense fund and sponsor a tasting in the name of journalism.

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Posted by jjskck on February 10, 2010 at 8:47 AM

I have the utmost respect for most of Costco's house brands. Their Kirkland jeans ($12.99 a pair) are every bit as good as Levis, and their Kirkland brand toaster waffles put Eggos to shame.

But I wasn't willing to risk twenty bucks on a case of these without trying some first. It's not much more than that for Boulevard. Unfortunately, I doubt they'll be giving out any samples, so I'll have to wait until someone whose judgment I trust (JJS? Jonathan?) gives me a review. (hint, hint)

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Posted by Realist on February 9, 2010 at 4:51 PM

To accurately answer the question, we need a couple answers:

- How is it made?
- What's really in it?

I don't have a problem with contract brewing. Craft beer is all about the ingredients and the process. You don't drink the label.

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Posted by Brian Cendrowski on February 9, 2010 at 7:45 AM

If it's anything like Saranac's other beers, NO.

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Posted by jjskck on February 8, 2010 at 3:12 PM

Is this is the equivalent of buying an "angus burger" at McDonalds and expecting some sort of gourmet burger?

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Posted by Abe on February 8, 2010 at 2:36 PM
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