The Reasons Costco Can Keep Its Beer Prices So Low

Costco is popular primarily because it offers deep discounts on basic consumer products without sacrificing on quality, and that holds true for its beer selection. Not every state in the country allows Costco to sell beer, mind you, but the vast majority of them will; which means that many Costco shoppers have access to affordable beer when they buy it in bulk. As for why it's so much more affordable at Costco versus other grocery stores, there's no real magic to it — Costco simply operates with thinner profit margins relative to other grocery stores.

Thinner margins makes Costco highly competitive in the grocery world, which might make you wonder why other grocers don't follow suit. The difference is that Costco requires a paid membership to enter. Sam's Club has a similar business plan to Costco, but other grocery stores and supermarkets can't compete with Costco's wholesale prices while also allowing anyone and everyone to come and shop in the store. A dozen or so states will actually let you buy alcohol at Costco without a membership, mind you, so if you're interested in snagging some cheap beer but don't want to also purchase groceries, you could double check if your state allows this.

Sometimes you're craving a beer with bold taste, but cheap beer can be also be delicious. Luckily, at Costco you don't have to worry about choosing one over the other. The selection on offer will vary store to store, but on the West Coast, you'll see Kirkland Signature Lager, which is brewed by the popular brewery Deschutes. If you've never tried it before, I'd recommend it. The taste may not blow you away, but it's a perfectly serviceable light beer that makes for a good summer sipper.

Don't worry, Costco sells name brand beers as well. That includes domestics like Coors Light, Modelo, Pacifico, Yuengling, and Heineken, to name just a few. The store also usually offers craft brews in 24-packs, though what exactly is on offer in this category is going to vary a bit more by location. Big breweries have been wedging their way into the craft beer scene for long enough that you'll likely find a few craft beers are consistent between Costco locations, like Elysian Space Dust (which is brewed by Anheuser-Busch) and several of Bell's iconic beers, like Two Hearted and Oberon (Bell's may be the poster child of craft beer excellence, but it's now owned and operated by the Japanese alcohol giant Kirin).

For those of us who prefer a stable routine and the same brand of beer in hand every weekend, the variation between Costco locations may be an annoyance. For people who like to mix and match, you might as well just run into the store and browse around. You might be surprised at what you can get for cheap.