Walmart to Stock More Craft Beer

Walmart is huge, to put it mildly. The business has stores in every nook and cranny across the United States and many Americans are within ten minutes of one or more Walmart, Walmart Supercenters, or Walmart Neighborhood markets. It is difficult to escape a business of this magnitude and many consider Walmart their one- stop shopping excursion for all their household needs.

 

But in spite of its status as the apex of retailers, Walmart is the absolute pits when it comes to craft beer selection. Walmart ranks number one in terms of overall retail beer sales in the United States, but its top ranking is due not to great selection, but to its overall popularity as a grocery retailer and, when it comes to beer, its tendency to appeal to the lowest common denominator. Sure, you might find some Dos Equis, Beck’s, and a few other interesting products, but the bulk of Walmart’s refrigerated section is dedicated to Bud Light, Busch, Old Milwaukee, and similar brew.

 

Pressure is mounting, however, on the nation’s largest retailer to open up more shelf space to craft beer and just this past week, former Walmart CEO Lee Scott made a proclamation that was music to the ears of craft beer fans everywhere. Speaking to a large gathering of distributors at the National Beer Wholesalers Convention in Las Vegas, Scott (who still serves on the Walmart board) stated that Walmart realizes it needs to offer more room for craft beer and an overall better assortment of malt beverages in general.

 

Customer service is part of the reason for the opening of Walmart to the craft beer segment. Scott acknowledged that consumers are turning away from Walmart in favor of Kroger and other stores where the beer options are better and there is no good reason why the largest retailer on the planet cannot offer the same or better selection at a competitive price.  Yes, the big guys at Anheuser- Busch, Miller, and Coors will cry foul and try to interfere with the enhanced competition, but the ultimate decision rests with the customer and if craft beer is what they want, craft beer is what they will get.

 

Craft beer still has a long way to go before it reaches the level of sales enjoyed by the macrobreweries. After all, only about 5% of the beer market is craft in nature. However, this market is expanding quickly and its recent growth is in the double digits, compared to a two percent decline for beer sales overall. Thus, from the standpoint of economics, it makes sense for Walmart to recognize this trend and open the beer aisle to a wider assortment of products. Craft breweries are opening at a rapid pace and the numbers today are at their highest level (around 1,800) in more than one hundred years.

 

Walmart hasn’t made any immediate changes yet and decisions like this are still largely under the control of individual store management. But with a few small changes, a visit to Walmart might one day include a six pack of Deschutes and a 22 oz. Rogue rather than a quick purchase of Milwaukee’s Best and a bag of Great Value potato chips.