When you think "beer," do you think Walgreen (NYSE: WAG)? In a highly unexpected move, the drugstore chain is launching its own brands of beer and wine.
Walgreen's beer brand, Big Flats 1901, is now available at 4,000 of Walgreen's locations where alcohol sales are allowed. Walgreen customers can buy a six pack for about $3, and a case for about $12. According to a post on BostonHerald.com, at least one Internet taster says that Big Flats 1901 is "not very good, but man, it's cheap."
A company called Winery Exchange cooked up this brew for Walgreen, which is hardly alone in its new tippling. Other corporate customers who utilize Winery Exchange's service include Kroger (NYSE: KR), Costco (Nasdaq: COST), Trader Joe's, and many other food retailers.
Walgreen will also launch a wine called Colby Red next month, which is offered through Treasury Wine Estates and winemaker Daryl Groom. It will be available for about $12.99 a bottle.
It's not difficult to imagine that many companies not known for alcohol would like to delve into it. After all, booze doesn't lose its appeal in good times or bad. Starbucks (Nasdaq: SBUX) turned heads last year when it started testing out a concept that peddles beer and wine alongside the coffee it's known for.
Though Walgreen stopped selling alcohol in the 1990s, management decided to get back into the booze biz in the middle of 2009.
If Walgreen is hoping to bolster sales in a difficult economy, this is one way to do it. And hey, Walgreen is a drugstore, and alcohol is a legal recreational drug. At least this way, you'll be able to get the cause of tomorrow morning's hangover, and the aspirin needed to relieve it, all in one convenient place.
What do you think of Walgreen's plan? Will cheap beer pour on the growth for investors? Share your thoughts in the comment box below.
