Buffalo Wild Wings and Redhook (part of Craft Brew Alliance) announced a partnership to bring Redhook's new Game Changer Ale to its 900 locations around the country. A snippet from the news story published in Seeking Alpha is show below. You can read the full article here.
This sounds like a great opportunity for Redhook to increase its exposure. If successful, maybe we'll see more CBA brands (Widmer Brothers, Kona, and Omission) served at Buffalo Wild Wings.
What do you think of the current beer offerings at Buffalo Wild Wings?
Buffalo Wild Wings announced a partnership with Redhook, owned by Craft Brew Alliance (BREW), which will in fact bring an all new beer concept to all restaurant locations. The new beer, which will be called Game Changer, could in fact be just as its name says a game changer for this restaurant company.
"Draft beer is another cornerstone of our brand. We continue to create new opportunities to enhance the draft beer experience for our guests, increase our beer sales and improve our draft beer margins," said Sally Smith, CEO of Buffalo Wild Wings.
The new beer will be priced between domestic and imported draft beer, giving Buffalo Wild Wings great margins on a popular sales category. In the first quarter of fiscal 2013, alcohol and beer sales made up 22% of all revenue.
For Redhook, this is a tremendous opportunity. Buffalo Wild Wings is the number one draft account for over 50 different beer brands with 900 locations around the country. With this partnership, Redhook gains access to all 900 locations and should gain a more in depth partnership with Buffalo Wild Wings. The small craft beer company has been using partnerships to fuel growth. Earlier this year, Redhook launched Audible Ale, inspired by the Dan Patrick Show on ESPN. The company also has the official beer of the Seattle Sounders soccer team's fan club.
Buffalo Wild Wings continues to devote more attention to its alcohol sales. The majority of the restaurants have expanded the number of tap handles from 24 to 30. This allows each restaurant to have nationally known beers, regional favorites, and gives managers a say in local beers at individual restaurants as well. A new drink menu will roll out in July and will be centered by this new beer offering from Buffalo Wild Wings and Redhook.