Stone at Costco

I was told by some costco folks that Stone told them that stone doesn't make any money selling there- they just break even. Last i looked costco(similar to Sam's club) sells the pale ale and the IPA for $20-something per case. They said they do that just tobspread the word and get the brand out to visiting east coast ppl, etc.

It would be awesome to have stone beers at our Costco. $20 a case is pretty cheap!

That sounds lovely.

I'm on the east coast but I also don't have any costco's near me...

outside92129 said:

They said they do that just tobspread the word and get the brand out to visiting east coast ppl, etc.

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That makes no sense to me at all. I have never set foot in a Costco or Sam's club while visiting some place far from home and I'd imagine you'd be hard pressed to find anyone on vacation/business trip at a Costco...

IffyG said:

That makes no sense to me at all. I have never set foot in a Costco or Sam's club while visiting some place far from home and I'd imagine you'd be hard pressed to find anyone on vacation/business trip at a Costco...

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Those of us who are Costo fanatics visit Costco when traveling because you will find product that you will not find locally (i.e. Stone beer). This is part of the fun...

I seriously doubt they just "break even".....I bet it costs Stone pennies to produce a bottle of Pale Ale. Add on packaging, taxes, transportation, etc... They are still producing beer for less than 50 cents a bottle.

I'm just bummed out that I grew up in San Diego and now that I live literally next to a Costco in Long Beach they don't carry it.

Stone are building or planning on building a new brew house so the argument for brand building makes sense, but I'd be surprised if they didn't make anything at all.

Well no Costco beer for us in Pennsyltucky. I wish the friggen pilgrims (puritans) would leave so we can buy beer somewhere other than a bar or distributer...

Stone ipa is 26.99 at Costco...
They are making money, just not a lot, but they are making money...

The margins on bottled beer are razor thin. For packaging breweries it is a numbers game. To turn a profit they have to turn over high numbers at a narrow margin. Don't forget there are distributors to go through etc., everyone with their hand in the pie.

Do you need a membership to buy beer at Costco? Or is it like Sams Club where it's attached next door?

I've never heard of it being attached next door at either place. It probably depends on where you live.
When I lived in California Both Sams and Costco required a membership to buy anything, also they sold beer, wine and hard liquor. Here in TX its just beer/wine because of the state and local laws and as far as I know you still have to have a membership.

Phunhog said:

I seriously doubt they just "break even".....I bet it costs Stone pennies to produce a bottle of Pale Ale. Add on packaging, taxes, transportation, etc... They are still producing beer for less than 50 cents a bottle.

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You're forgetting overhead for facilities, insurance, licensing, permits, legal, marketing, distribution etc. That ALL gets rolled into the "per bottle" cost. For the costs you listed, sure, they're under 50 cents. For the costs I listed, they aren't.

I've never seen stone at costco in NC.

My wife was down in San Diego for a conference and went to the local Costco and picked me up a Stone bomber sampler for less per bottle than Stone sells it for at the brewery. You certainly get a different customer base at a Costco than might typically seek out craft brew. It's probably good exposure for them. Also, if we're on vacation somewhere that we've rented a house we certainly make a trip to the local Costco. I've been to the Costcos in Kauai and Oahu and we always make sure to check out what local stuff they have.

IffyG said:

That makes no sense to me at all. I have never set foot in a Costco or Sam's club while visiting some place far from home and I'd imagine you'd be hard pressed to find anyone on vacation/business trip at a Costco...

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There are an S-IT load of time shares in my area. Move - in day ( read; every Friday in the summer) has the area stores like Costco as full of out of towners as the ABC ( VA liquor store).

Inncidentally New Belgium has made a strong surge here in the last 6 months and Costco has fat tire for $27 a case which is basically the same as you can buy it in the grocery store. Stones not raping the public like the WANT To when they sell through Costco is what I'm thinking.

verbhertz said:

Do you need a membership to buy beer at Costco? Or is it like Sams Club where it's attached next door?

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The Costcos in Minnesota sell their liquor in an adjacent liquor store area with a separate entrance and cash register. I know for sure the Maplewood one is like that. It has been awhile since I have visited the St. Louis Park or Coon Rapids ones but I would imagine they are no different.

Man I am so tempted to make a Costco run today since I need to run some errands today at a location 20 minutes away. It might be worth the extra time if I can get my hands on some Stone for that price.

Indianhead_Brewer said:

The Costcos in Minnesota sell their liquor in an adjacent liquor store area with a separate entrance and cash register. I know for sure the Maplewood one is like that. It has been awhile since I have visited the St. Louis Park or Coon Rapids ones but I would imagine they are no different.

Man I am so tempted to make a Costco run today since I need to run some errands today at a location 20 minutes away. It might be worth the extra time if I can get my hands on some Stone for that price.

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Report back if you do! The Woodbury Sams is attached. I have a membership there and don't want a Costco membership just for beer. But I'd be interested in the craft selection there.

All my costco carries is Redhook. meh.

Magnanamous said:

Well no Costco beer for us in Pennsyltucky. I wish the friggen pilgrims (puritans) would leave so we can buy beer somewhere other than a bar or distributer...

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Wegmans sells beer, but limits you to 192oz. Not sure on prices of some Stone, but I know Ruination is $17.99 per six pack.

costco near me carries stone, ommegang, sierra nevada, harpoon ipa, sam adams, and kirkland (costco brand). the stone is 28+, sierra is around 25, harpoon is 24, and kirkland is 19 (variety pack with a belgium, ipa, pale, and an amber. Kirkland even has a german lager and hefeweizen sometimes. That brand is brewed by Matt brewing co./Utica the same that contracts many NY breweries.

Costco in Irvine has em'

Back when I lived in Southern California the Sierra Nevada was $21.95 for a 24 pack. That was a sweet deal. Doesn't Costco have their own brand of beer in some locations?

knotquiteawake said:

Back when I lived in Southern California the Sierra Nevada was $21.95 for a 24 pack. That was a sweet deal. Doesn't Costco have their own brand of beer in some locations?

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Kirkland beer. I believe they're made by Gordon Biersch. They're not bad, and they come in a 24ct variety pack for a couple bucks more than buying a case of empty 12s.

ktblunden said:

Kirkland beer. I believe they're made by Gordon Biersch. They're not bad, and they come in a 24ct variety pack for a couple bucks more than buying a case of empty 12s.

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yep! Thats what I was thinking of. I just reactivated our membership after a few years off and beer wasn't on the wife approved shopping list for my first visit so I need to see if ours has that one. Those are good for parties.

knotquiteawake said:

yep! Thats what I was thinking of. I just reactivated our membership after a few years off and beer wasn't on the wife approved shopping list for my first visit so I need to see if ours has that one. Those are good for parties.

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The IPA is pretty good and I really like the Pale Ale. The Amber is not bad and I'm not much of a fan of the White. Definitely fantastic for a party, plus the labels pop off after about an hour soak in oxy.

SquareHeadBrew said:

costco near me carries stone, ommegang, sierra nevada, harpoon ipa, sam adams, and kirkland (costco brand). the stone is 28+, sierra is around 25, harpoon is 24, and kirkland is 19 (variety pack with a belgium, ipa, pale, and an amber. Kirkland even has a german lager and hefeweizen sometimes. That brand is brewed by Matt brewing co./Utica the same that contracts many NY breweries.

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Which NY Costco?

Just got done with a Costco run in Maplewood, MN and talk about disappointment. Nothing exciting to find. They had the token Newcastle and the Kirkland variety pack but nothing notable. The best thing they had was a case of Summit Extra Pale Ale for 20 bucks. Bummed.

Sams in Woodbury doesn't have an amazing selection but the prices are decent. I think it was under $6 for a sixer of Sierra Nevada Pale Ale. They had Bells Amber. Don't remember much else unfortunately.

I wish mine had Sierra Nevada. I would prefer it to the Fat Tire. Otherwise its a spread of Sam Adams, Fat Tire, Dos Eqius, Corona, Bud, and (of all things) Mendocino Brewing Company's Pale Ale (can't remember the same).

oh, and they don't even have the Kirkland brand.

Hmmm... Don't recall ever seeing Stone in the one here.

verbhertz said:

Sams in Woodbury doesn't have an amazing selection but the prices are decent. I think it was under $6 for a sixer of Sierra Nevada Pale Ale. They had Bells Amber. Don't remember much else unfortunately.

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Been meaning to poke my head in the liquor section of the Sam's in Maplewood, but it seems like everytime I have a chance to get down that way it is Sunday which always makes it a bust for buying beer in Minnesota. They really need to update the liquor laws in MN.

On the marketing angle:

Yes, it is good for out of towners. You are having guests from out of town. You go to Costco and buy groceries for the unwashed masses about to descend on your home. Inevitably there is a party as many people haven't seen "uncle jimbo" in years. In an attempt to salvage something out of the horrific event you decide that you will at least drink good beer. After all, you drink beer to make other people more interesting...

On costs:

Costco buys in such massive volumes that they can grind you down into making next to nothing. Next to nothing on massive volumes is still something. More importantly, costco will guarantee that they will buy for a certain period of time so now you have the guaranteed cash flow to expand your business. Stone wants to expand? Then they need somewhere to dump all of that beer where it will at least cover its full costs. They can make margins elsewhere, particularly since they have much greater capacity.

Costco in San Marcos, CA is about 2 miles from the Stone Brewery. Obviously, they carry Stone, but they also carry an 8 count variety pack of Ballast Point which includes 2 bottles of Sculpin for less than $30 and they have single 22 oz bottles from Green Flash. So if you ever visit Stone on vacation, you should also stop by the Costco for cheap bottles of other local craft beer.

audmer said:

Costco in San Marcos, CA is about 2 miles from the Stone Brewery. Obviously, they carry Stone, but they also carry an 8 count variety pack of Ballast Point which includes 2 bottles of Sculpin for less than $30 and they have single 22 oz bottles from Green Flash. So if you ever visit Stone on vacation, you should also stop by the Costco for cheap bottles of other local craft beer.

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I'll have to make a side trip to the Costco next time I'm down there. I really like Ballast Point's stuff.

ktblunden said:

I'll have to make a side trip to the Costco next time I'm down there. I really like Ballast Point's stuff.

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Yes I just got a case of ballast point from there 2 weeks ago, I put back the stone beer since the brewery is only a few miles away. I prefer growler fills there.

BTW you don't need a membership to buy alcohol in California. (That tip came form a Stone brewing tour). State law requires them to sell alcohol without a membership. Just tell the person checking for membership that you just there for the booze and they will let you in. They might require cash though I'm not sure, since I'm a member.

on the Big Island in Hawaii the Costco in Kona Carries Kona