Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: https://read.dmtmag.com/i/282869
48 Beverage Dynamics • March/April 2014 www.beveragedynamics.com G rowlers are a roaring business for enterprising retailers. In-store kiosks fi lling up those little brown jugs of beer to-go are appearing in venues as diverse as supermarkets, convenience stores and even pharmacies, as well as wine and liquor stores and large beverage alcohol chains. Consumers are thirsty for craft beer, and there are plenty of advantages to growlers stations, including higher margins, attracting new traffi c, increasing customer loyalty and creating a competitive point of differentiation. There are also some nuts-and-bolts considerations and a few hurdles to getting into growlers, but, say operators, the payoff is worth it. A key driver of the growler phenomenon is the craft beer explosion. Volume was up 15% and retail dollars boomed 17% in 2012, according to the Boulder, CO-based Brewers Association. Many beer afi cionados swear beer tastes best when it's fresh out of the keg, and consumers are already accustomed to taking home growlers from their favorite local brewery. "The practice is a throwback to the mid 1880s, when people used to get fresh beer from the bar and bring it home in pails called growlers," points out Jeff Shields, communications manager for Sunoco Logistics/Sunoco, Inc. The company was a pioneer in the fi eld, testing a Craft Beer Exchange program in a dozen Sunoco APlus convenience stores in 2011. "Cus- tomers took to it immediately," recalls Shields. "We were looking to set ourselves apart from other convenience stores and this program accomplished that." The Craft Beer Exchange has since been extended into 69 stores in New York and South Carolina, and the company is looking to expand the program to other markets, where state laws allow. "The Craft Beer Exchange has brought more business to the stores; we've seen sales go up in general," says Shields. "It's been better for business across the board." BY THOMAS HENRY STRENK Duane Reade, the New York-based drug store chain, launched its fi rst growler station in its Williamsburg, Brooklyn outlet. G Retailers discover the many advantages of adding growler beer stations. FILL 'ER UP LAWS & ORDERS Not every state and locality allows growler sales, but that is changing for the better. "Growlers are clearly on the radar of state alcohol beverage regulators," says Paul Gatza, director of the Brewers As- sociation. A preliminary survey by the association indicates at least 33 states cur- rently allow growler sales under a retailer license. Specifi cs of the laws vary widely. "The language for each state is tailored for that state's needs and political situa- tion," he adds. When the state of Delaware changed its laws last spring, Peco's Liquors in Wilmington was ready with an eight-tap system. "We wanted to be the fi rst re- tailer in the state to offer growlers," says director of sales & marketing Edward Mulvihill. That also precipitated a long overdue renovation that added 12,000 sq. ft. to the store, about 200 sq. ft. of which was dedicated to the growler station, which was bumped up to 16 taps. With only six months in operation, the growler station is now the number-one category in the store, says Mulvihill, accounting for about 5% of overall sales. "Our goal is to build growler sales to 15% of our overall business." "One of my salesmen told me that the law had changed in Maryland," recalls David Carney, co-owner and primary managing partner of The Wine Bin in Ellicott City. Carney visited Pine Liquors, the fi rst retailer in the state to offer growl- ers, and came away convinced the idea was a good one. Getting a license was simple. "The biggest hurdle was jumping into the pool, spending the thousands of dollars I needed to get started," he says. "It was kind of scary but the growler sta- tion defi nitely paid off." The Wine Bin's setup consists of just fi ve taps of rotating "The growler program brings in new customers just by having that different offering; it helps differentiate us from our competition." – Jeff Rubin senior merchandising market manager, Duane Reade, NY.