Coors Light Beer in Indianapolis. Photographer: Michael Conroy/AP Photo
Apparently mega-companies, like mega-brewers, will do anything to stay on top. PGA suggests you visit you’re smaller local CRAFT beer retailer instead-PGA
WalMart is so committed to becoming Americaâ€™s biggest beer retailer that it has been selling Budweiser, Coors and other brews almost at cost in at least some stores.
The markup on a 36-pack of Coors Light cans at a Los-Angeles-area store was 0.6 percent, compared with 16.2 percent for a package of Flaming Hot Cheetos, according to internal documents reviewed by Bloomberg. Companies typically donâ€™t release information about markups so the March data provide a rare glimpse of Wal-Martâ€™s alcohol pricing strategy.
Wal-Martâ€™s push into beer is part of a plan to double alcohol sales by 2016 and seize a larger slice of a U.S. beer market worth about $45 billion. While founder Sam Walton frowned on drinking to excess, selling cheap suds is a way to lure shoppers who typically buy other products at the same time. Repeat visits are crucial for the worldâ€™s largest retailer, which last month cut its profit forecast and reported second-quarter profit and sales that missed analystsâ€™ estimates.
â€œWe continue to look for opportunities to invest in price,â€ Wal-Mart U.S. chief Bill Simon said at a Goldman Sachs conference last week. â€œA great example for us is adult beverages. We have been continuing to move prices lower on that and seeing returns in the form of market-share gains in that category.â€
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