Budweiser is facing a new threat from an unexpected company
The retailer recently started selling several private-label craft beers, including Cat's Away IPA, After Party Pale Ale, Red Flag Amber, and 'Round Midnight Belgian White, Brian Sozzi at TheStreet reports. The company has also launched a brand called Pacific Drift in California.
"We want to bring craft beer to the masses," Walmart senior vice president of adult beverages Al Dominguez told TheStreet.The beers, brewed by Rochester, N.Y.-based Trouble Brewing, are being sold in 12-packs for $13.
Getting into craft beer is a smart move for Walmart.
The market for hoppier, fuller-flavored beers has been growing at a much faster rate than the overall beer market in recent years.
Craft brewers reported a 13% increase in volume in 2015, marking their eighth straight year of double-digit growth, according to the Brewers Association. In the same year, the total US beer market reported a 0.2% drop in volume.
Walmart's foray into craft beer is a threat to Anheuser-Busch InBev - the world's largest beer manufacturer and the maker of Budweiser, Michelob, and Rolling Rock - which has been snatching up craft beer brands in recent years.Since 2011, Anheuser-Busch InBev has purchased eight craft beer brands including Goose Island, Blue Point, 10 Barrel, Elysian, Golden Road Brewing, Four Peaks Brewing Company, Camden Town Brewery, and Breckenridge Brewery.