Interview: Costco’s Dominance In Wine

Costco—the second-largest retailer by revenue in the world—is a major beverage alcohol force. The company posted $3.6 billion in revenue from wine, spirits and beer in its most recent fiscal year, with wine representing half of that total. SND sister publication Market Watch recently spoke with assistant general merchandise manager for beverage alcohol Annette Alvarez-Peters for an update on the chain’s progress.

MW: How do Costco’s total beverage alcohol sales break out by category?

Alvarez-Peters: Wine comprises nearly 50 percent of the total, followed by spirits in the high–20-percent range and beer in the low–20-percent range. We currently have 488 Costco stores in the United States and Puerto Rico, with a total of 412 wine licenses, 440 beer licenses and 302 spirits licenses.

MW: What price points in wine are especially hot?

Alvarez-Peters: Some of our top-performing labels are La Crema Pinot Noir ($17.49 to $17.99 a 750-ml. bottle), Erath Oregon Pinot Noir ($11.89 to $12.99) and Kim Crawford Sauvignon Blanc ($11.99 to $13.99). In premium red blends, selections like Coppola Claret ($12.99 to $13.59), as well as entry-level labels Ménage à Trois ($7.39 to $8.69) and Apothic Red ($7.39 to $7.79) do well. Overall, we’re seeing good growth with imports from Bordeaux, the Southern Rhône and New Zealand. The super-premium rosé category continues to surge, thanks to brands like Gérard Bertrand, Whispering Angel ($22) and Château Miraval ($24.95). Domestic red blends are also strong, along with Pinot Noir from California and Oregon. In the sparkling category, Prosecco is healthy. Our Kirkland Signature Asolo DOCG Prosecco ($6.99) is our top sparkling wine.

MW: Is Costco still the nation’s largest wine retailer?

Alvarez-Peters: Our sales are currently outpacing the industry. According to our distributors, we’re ranked at the top for wine sales. Visit Market Watch for the full interview.

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Tagged : Costco, Costco Wholesale, Market Watch, retail, retailers

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