A national trend is fueling Kroger Co.’s plans for its adult beverages section, WCPO reports.
The Cincinnati-based grocery giant (NYSE: KR) is increasing the cold-storage shelf space devoted to local craft beer in its stores by 30 percent as it continues to outpace its competitors in sales in the fastest-growing segment of the beer industry.
The change means big-time growth for local brewers like MadTree, Rhinegeist and Mt. Carmel. Both Rhinegeist and MadTree said their relationships with Kroger already account for more than 20 percent of their distribution sales.
It will also pay off for Kroger, which boasts 55 percent of the new entries in its Cincinnati and Dayton beer aisles come from craft brewers, with local and regional brands making up 40 percent of that total. That comes as national sales of craft beer increased 22 percent to $19.6 billion in 2014, representing 11 percent of all beer sold by volume, according to a trade group.
Kroger hopes the new offerings will attract new shoppers and make existing customers more loyal. It plans to choose its craft beer offerings based on purchasing data and shopping insights from Dunnhumby as well as social media and tap handle trends. Most importantly, though, brewers will have to assure Kroger that they can handle current and future demand for orders and show proficiency in working with the store’s inventory management system.
