Costco to Sell Private Label Beer?

Received label approvals for three crafts.

In what could be a big shift, Costco Wholesale Corp. appears ready to market private-label beer under its Kirkland Signature line.

The big club retailer has received label application approvals from the Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau for three craft-style beers: an amber ale, a hefeweizen and a pale ale.

Retailers of all stripes increasingly have emphasized private-label products for their higher margins. And while private label brands once may have been seen as seen as generic or downscale, that's no longer the case. Retailers have done such a good job branding them now that they can compete with premium or above-premium brands.

Costco has been selling Kirkland signature wines for a number of years and over the past year has filed label applications for some private-label spirits, including a single-malt scotch.

The focus on beer appears to be a new effort.

The beers are brewed by Gordon Biersch Brewing Company, a California craft brewer. Interestingly, Biersch also makes private label craft-style brews for Trader Joe’s.

Given the popularity of craft beers, it’s not surprising that retailers with strong brands -- such as Costco and Trader Joe’s -- would want to sell their own premium-positioned crafts.

The hefeweizen label application can be seen here.

The hefeweizen label image can be seen here.

Brew Blog’s coverage of Trader Joe’s push into private-label Mexican beers can be seen here.