Is Costco Dropping Bud Light?

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Many Costco shoppers believe the retailer is sending signals that it’s about to remove the popular light beer from its shelves. Read on to learn more. 

Bud Light has been one of the most popular alcoholic beverages in the United States for many years, but sales have struggled in 2023. This has left many retailers with excess inventory, and several retailers have reportedly been selling the light beer at significant discounts.

However, there has been speculation recently that warehouse club giant Costco could be set to take a drastic step and remove Bud Light from its shelves altogether. On one hand, this could make sense as Costco certainly takes sales volume into account. And we know that sales of Bud Light fell by more than 31% year over year in the week ending June 24.

On the other hand, there are some conflicting reports. One consulting firm told Newsweek that it is “hard to believe any retailer” would voluntarily stop selling a product like Bud Light. After all, even after the product’s declining sales volume in recent months, it is still the number one selling beer in the United States so far in 2023.

So, is Costco getting ready to drop Bud Light from its shelves? Here’s what we know (and don’t know).

Is Costco sending a message about Bud Light?

Multiple reports have indicated that Costco could be signaling to customers that Bud Light’s days on its shelves are numbered. Several consumer websites have reported that an asterisk on a price label at Costco is a sign that the product is about to be dropped. Specifically, it is reported that it means a product will not be restocked once the current inventory sells out. Many even refer to this asterisk as the retailer’s “star of death.” If a product you like has it, it might be a good idea to break out your credit card and stock up before it’s gone.

Other reports have indicated that not only is the popular light beer labeled with the asterisk, but it is being sold at deeply discounted prices. One Twitter post showed a stack of Bud Light being sold for $14.97 for two 12-packs of cans, and it was labeled as Costco “practically giving away Bud Light.”

They have a point. A quick Google search shows 24-packs of Bud Light cans selling for $17.99 to $20.99 at the top 10 supermarkets and big-box retailers. Costco usually sells products for less than other retailers, but this is a pretty steep discount.

Additionally, Costco typically sells products with a $X.99 price, while many believe that price tags ending in unusual numbers — such as $14.97 — are yet another indication that the retailer could be pulling the plug on a product.

We don’t know anything for sure

To be sure, Costco hasn’t officially confirmed if the recently-spotted asterisks actually mean that it is dropping Bud Light from its shelves. Even if it does mean Bud Light is being removed from Costco shelves, it could be a temporary move. Or, Costco could simply have an excess of inventory due to slower-than-expected sales and has no plans to drop Bud Light at all. Alternatively, Costco could be dropping certain sizes or styles of Bud Light while keeping others. In fact, one widely-viewed Twitter post showed a $14.97 price for 24 cans, while another showed a more standard-looking price tag of $24.99 for 36 cans (still with an asterisk, though).

The point is that while there are definitely some signs that Costco may be trying to get rid of its remaining inventory of Bud Light, the popular beverage’s future at the warehouse club chain remains uncertain.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Matthew Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Costco Wholesale. The Motley Fool has a disclosure policy.

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