Would you drink Vodka made by a government?
Costco is one of the most successful retailers. They sell high quality goods at tremendously low prices. Costco takes a maximum of 4 – 16 percent margin on all of its products. Costco makes its profit mainly on memberships. Micro Liquor’s street-smart investigators learned the liquor margin is 13.9 percent.
French-based Pernod Ricard bought Absolut Vodka from the Swedish Government in 2008. Most people don’t know Absolut was a government vodka.
Even more people don’t know that a French company owns Absolut now. Absolut vodka sales are declining heavily and major discounting is taking place to try to stop this freefall. Costco has probably the best prices on liquor in the USA, yet Costco members are staying away from Absolut and these distilled spirit brands below:
Absolut Vodka (Sweden) 1.75L $24.99 ——> $21.49 (Owner: Pernod Ricard, France)
Absolut Citron Vodka (Sweden) 1.75L $24.99 ——> $21.49 (Owner: Pernod Ricard, France)
Beefeater London Dry Gin (England) 1.75L $19.99 —–> $16.99 (Owner: James Burrough Co., England) (USA Distributor: Pernod Ricard, France)
Johnnie Walker 12YR Black Label Scotch (Scotland) 1.75L $49.99 —–> $44.99 (Owner: Diageo Co., England)
Chivas Regal 12YR Scotch (Scotland) 750ML $19.99 —–> $17.99 (Owner: Pernod Ricard, France)
Malibu Caribbean Rum (Canada) 1.75ML $16.99 ——->$13.99 (Owner: Pernod Ricard, France)
Baileys Irish Cream (Ireland) 1.0L $19.99 ——> $16.99 (Owner, Diageo Co., England)
Grand Marnier Liqueur (France) 750ML $29.99 ——–> $24.99 (Owner, Marnier-Lapostelle Family)
The photos below are from Costco in Southern California. Discounting large corporate liquor brands that are not selling well is the only way to move inventory, but brands like Absolut vodka and Beefeater gin are declining in prestige.
Discounting Liquor is the best way to move inventory and kill a liquor brand!