If you’re a smart shopper, you surely know and adore Kirkland Signature, Costco’s white-label house brand of honor. It’s a brand that has come to be known as quality for less, providing products that just about always come out swinging. Just as with the experience at Trader Joe’s, one can’t help but naturally wonder: how can all products under the Kirkland Signature umbrella strike gold so consistently?
This isn’t merely a coincidence; it’s a carefully devised plan. The key to Kirkland Signature’s unmatched success and the universally high quality of its varied product line is a series of unexpected alliances. More often than not, Costco draws on the know-how of big, established brands, having them do the heavy work in product formulation and production.
Today, we’re lifting the lid on this amazing phenomenon. Come with us as we travel behind the scenes, discovering the surprising and sometimes surprising A-list producers who are covertly making some of your favorite Kirkland Signature staples. From your morning coffee routine to the essential items in your baby’s room, get ready to meet the hidden titans that make every Kirkland Signature buy a win-win.
1. K-Cup Pods: Green Mountain Coffee Roasters
For the single-cup coffee lover, Kirkland Signature K-Cup Pods are a home staple. Since 2012, these ubiquitous pods have been carefully crafted by Green Mountain Coffee Roasters, a recognized brand in the Keurig cup industry. Offered in popular flavor varieties like Pacific Bold, Medium Roast, and Breakfast Blend, these K-Cups enable Costco members to indulge in huge coffee savings even online competitors can’t match.
- This strategic alliance highlights an interesting aspect of the private label industry.
- Green Mountain Coffee Roasters is a subsidiary of Keurig Dr Pepper.
- Keurig Dr Pepper owns a wide portfolio of brands, including Dr Pepper, Krispy Kreme, and Canada Dry.
- By manufacturing Kirkland Signature K-Cups, the corporation boosts its profit margins.
- This approach also helps the company expand its market coverage.
- They achieve this without prominently displaying their own brand name on the packaging.
In addition to market leadership, Green Mountain is also true to its commitment to sustainability. It actually operates an ongoing seedling program that has resulted in the planting of about half a million trees in Sumatra, which is one of its major sources of coffee beans. This activity speaks of a commitment to sound sourcing practices.
Ultimately, this deal is a testament to the strength of a “brand within a brand” strategy. Green Mountain brings its significant expertise and manufacturing capabilities to bear for Costco so that the warehouse giant can provide a quality product under its own name. It’s a win-win relationship that brings world-class coffee to your cup at an unbeatable price, using established quality to generate consumer trust.
2. Ground Coffee: Starbucks
If you’ve ever made a pot of Kirkland Signature ground coffee and gotten a whiff of déjà vu, you’re not alone. That strangely familiar smell and flavor most likely are the result of the fact that much of Costco’s house coffee is manufactured by none other than Seattle’s legendary siren, Starbucks. In other instances, the Starbucks logo is even boldly emblazoned on the front of the package, so this collaboration isn’t such a secret after all.
Specifically, the global coffee giant supplies and roasts beans for some of Costco’s best-selling Kirkland Signature coffee blends. These include the Signature Medium Roast House Blend, the Signature Espresso Dark Roast Blend, and the Signature Decaf Medium Roast House Blend, each sold in easy 2.5 lb packages of whole beans. This partnership will allow you to bring an expert-quality cup of coffee experience right into your own home, with quality and consistency guaranteed.
- This partnership also provides peace of mind regarding ethical sourcing, which is often overlooked.
- Starbucks has long been a leading buyer of Fairtrade-certified coffee.
- For decades, Starbucks has proactively built responsible relationships with suppliers worldwide.
- Their commitment to ethical practices extends to the Kirkland Signature coffee beans.
- This ensures that your morning coffee contributes positively beyond just taste.
But it’s worth noting that Starbucks isn’t responsible for every last product in the vast Kirkland Signature line of coffees. Costco isn’t always so forthcoming about where some of its other coffees are coming from, including its Signature French Roast Whole Bean Coffee. But for those select offerings, the Starbucks tie-in guarantees a premium, responsibly sourced, and widely enjoyed coffee experience.
3. Tuna: Bumble Bee Tuna
When you reach for a can of Kirkland Signature tuna, chances are you might already be humming the familiar Bumble Bee Tuna jingle. That’s because the brand recognition is well-earned, and for good reason: Bumble Bee’s canned albacore is the very “life force behind Kirkland Signature’s tuna,” as confirmed by EVP Tim Rose. So, feel free to hum that jingle as you browse the Costco aisles; you’re buying from a familiar expert.
The alliance between Bumble Bee and Costco dates back to 2002 and has been extremely profitable for the two firms in recent years. Costco retails millions of dollars’ worth of the product every year, and Bumble Bee most certainly reaps a substantial share. Apart from the private label, Costco also retails Bumble Bee’s own-branded merchandise, further spreading the supplier’s market base and cementing the tie-up.
In spite of the stability and dependability of this alliance, it’s important to note a delicate element of the supply chain. Kirkland Signature Solid White Albacore Tuna in Water is a Thai product, and Thailand’s tuna sector, although among the world’s largest, has been tainted by human rights abuses and degrading work standards, such as involving trafficked labor. This supports the intricate ethical dilemmas of global procurement.
In response to these issues, Bumble Bee has reportedly shown significant improvement in overseeing and addressing the rights of the workers in its tuna supply chains. The organization’s work to improve conditions in all its fleets is still ongoing, indicating its commitment towards fixing these essential issues. This ongoing effort ensures that while customers get a reliable product, the supply chain also gradually changes towards more ethical practices.
4. Chocolate Almonds: Blommer
In the hallowed halls of the office snack arena, Kirkland Signature chocolate almonds occupy an unsung but vital place, and are oftentimes considered an unsung hero. They reside gleefully in the “hall of fame” of office snacks, an underappreciated but integral Costco buy. It is no surprise that these tasty morsels are the product of Blommer Chocolate Company, a veritable giant of chocolate manufacturers for more than 80 years.
- Blommer, with decades of experience, is the producer behind these almonds, ensuring consistent quality and delicious taste.
- This fact was first revealed in Costco Connection Magazine, a surprisingly reliable and informative source.
- The value is remarkable a huge jar for just $17 is truly a bargain.
The collaboration of Blommer Chocolate Company and Costco goes beyond the mere deliciousness; it involves ethical sourcing as well. A special October 2022 edition of “The Costco Connection” featured their shared partnership with the Rainforest Alliance. This is specifically aimed at offering the much-needed support to farmers in the regions where their cocoa merchandise is produced, primarily the Ivory Coast.
Costco also puts a lot of effort into being able to track its chocolate products back to their original point, promoting more transparency across the supply lines. This initiative is great news for chocolate lovers who like their treats not only reasonably priced but also ethically made. Kirkland Signature, with this collaboration, really gets it right on all levels.
5. Batteries: Duracell
Purchasing store-brand batteries can, for most of us, seem to be a roll of the dice. There’s usually always the lingering belief that they will somehow not hold as much charge or last as long as their pricier, name-brand equivalent. But when it comes to Costco’s Kirkland Signature batteries, that particular presumption couldn’t be more wrong. These actually are some of the highest-quality batteries you can purchase, and the reason why is a compelling one.
Their secret to superior performance was exposed by no less than Costco President and CEO Craig Jelinek in an interview: Kirkland Signature batteries are produced by Duracell. Being one of the U.S.’s market leaders of alkaline batteries, with nearly 40% of the market share in 2016, Duracell perceived a strategic advantage in dominating even more of the market by having its products in more stores even without putting its well-known brand name in front.
- Jelinek explained Costco’s philosophy: Kirkland Signature has no advertising, no overhead just packaging.
- The brand is not promoted through ads, aligning with Costco’s cost-saving strategy.
- This approach reflects Costco’s mission of cutting unnecessary expenses.
- By avoiding ad and production costs, Costco can consistently deliver high-quality products at lower prices.
This translates to taking a package of Kirkland Signature batteries and essentially receiving the long life and reliability of Duracell minus the higher price tag usually seen with a big-name, heavily advertised brand. It’s a classic case of Costco’s dedication to delivering great value, showing that you don’t have to sacrifice quality to save money on household staples.
6. Infant Formula: Perrigo
Costco is world-famous for carrying a vast selection of baby products, and some of the most important among them is infant formula. It’s little wonder, therefore, that a product as ubiquitous and necessary as this would have a Kirkland Signature variant. But Costco itself is not at all involved with the creation of this indispensable product. What happens instead is that Kirkland Signature baby formulas are carefully produced by the pharmaceutical company Perrigo, a widely praised name in the world of formulas.
The Perrigo-Costco alliance is an experienced one that has worked and grown effectively over the years. Expanding on a profitable relationship in the United States, Perrigo’s presence in Costco stores extended to Canada in 2011, a move strategically favorable to the manufacturer. The expansion highlighted the increasing confidence and effectiveness of their partnership in delivering critical baby nutrition.
Perrigo’s reach goes far beyond its joint venture with Costco. The company is actually a high-volume supplier of infant formula to nearly every big-box retailer throughout the nation, including behemoths Target, Sam’s Club, and Walmart. These retailers subsequently rebrand the formula under their store names, providing customers with widespread availability of a reliable product, frequently at lower price points, due to Perrigo’s production capabilities.
7. Diapers: Huggies (Kimberly-Clark)
Following up on the theme of great savings on baby supplies, Kirkland Signature provides parents with a priceless chance to buy in bulk those ubiquitous diapers. While not made by Costco itself, these store-brand diapers are actually made by Kimberly-Clark, the same company behind one of America’s best-known and most trusted diaper brands: Huggies. This fact speaks volumes about the high quality behind the Kirkland brand.
- Costco treasurer Richard Galanti revealed that Kimberly-Clark has been producing Kirkland Signature diapers since 2005.
- This highlights the long-standing and strong alliance between the two companies.
- Costco now sells only Kirkland Signature and Huggies diapers in its stores.
- This strategy consolidates consumer options while maintaining quality.
Although both are great options, Kirkland Signature diapers are usually far less expensive than their Huggies counterparts, providing significant savings. Surprisingly, research has actually indicated that Kirkland Signature diapers can have some benefits, with a more flexible waistband and more movable tabs. This construction can help provide a more secure, comfortable fit for babies, even though Huggies may sometimes be more absorbent in general.
In addition, Kirkland Signature diapers are designed with carefully selected materials, such as plant-based and hypoallergenic materials. This does not only make them a safe option for a baby’s sensitive skin but also a relatively earth-friendly alternative for earthy parents.
8. Scotch: Alexander Murray & Co.
When you consider premium spirits, Costco may not be the brand that comes immediately to mind, but it should be. The retailer carries a fine liquor selection, including its own Kirkland Signature scotch, which happens to be anything but a compromise on price. The sources of these Scotch brands are, in actuality, surprisingly upscale.
- Since 2007, Kirkland Signature scotch has been supplied by California distillery Alexander Murray & Co.
- The company is led by Scottish CEO Steven Lipp and is well established in the spirits industry.
- Alexander Murray also produces own-brand scotch for Trader Joe’s and Total Wine & More’s Ainsley Brae single malt.
- They offer their own vintage malt and single-cask whisky online, showcasing a strong pedigree in fine spirits.
Interestingly, although most scotch distributors tout the birthplaces of their liquor with pride, Costco goes the opposite route and avoids mentioning distiller names on its bottles. This policy is upheld by Steven Lipp, who says, “Neither Total Wine nor Costco want the distillery name identified on the Scotch I supply to them. That’s their policy, and I have to abide by it.” In spite of this air of secrecy, the quality is self-evident, as the retailer supposedly sells some 100,000 cases of its scotch each year, accounting for the majority of Alexander Murray & Co.’s scotch sales. So, when you fill your glass with that gorgeous 12-year-old Kirkland Signature scotch, take comfort in the fact that you’re drinking an award-winning whiskey made by a true expert, all for about $25.
9. Jelly Beans: Jelly Belly
Who wouldn’t be able to resist the rainbow, zesty flavor of jelly beans? For candy fans, filling up on these tasty treats at Costco is a no-brainer, particularly if you know the pedigree behind Kirkland Signature. If you’re purchasing jelly beans at Costco, you’ll be happy to hear that candy juggernaut Jelly Belly has a significant role in what you’re about to enjoy.
This isn’t a secret per se, since Jelly Belly’s classic logo shows up front and center on the Kirkland Signature 4 lb. jelly bean barrel found in the store. Each jar is filled with 49 of the candy company’s signature flavors, so it’s a colorful explosion for your senses. This visible partnership works to both companies’ benefit: customers instantly recognize they’re getting a high-quality product from a beloved brand, while Costco maintains its reputation for offering premium goods at a bargain.
In addition to just amazing flavor, Jelly Belly also makes sure their products are very diet-restriction-friendly. The jelly beans have no dairy, eggs, soy, or fat, and are made in kosher facilities, which makes them more appealing to a larger group of candy enthusiasts.
10. Frozen Pizzas: Palermo
When it’s a hectic weeknight or spontaneous party, a frozen pizza is truly a lifesaver. And if you’ve ever gobbled down a Kirkland Signature frozen pizza, you may be surprised to discover the legendary firm that makes its crispy crusts and tasty toppings: Palermo. The firm is sort of a legend among frozen pizzas, famously the first to put a rising crust on the market.
- Palermo Pizza is the company behind Kirkland Signature’s frozen pizzas.
- This partnership has been highly important to Costco over the years.
- Palermo’s craftsmanship ensures that even a quick and convenient dinner under the Kirkland name reflects innovation and quality.
Yet this alliance has not been completely smooth sailing. In 2012, while Palermo was struggling to deal with a huge worker strike, there were strong demands for a boycott of Costco until it dropped Palermo as a supplier. This example shows how deeply private label manufacturing relationships can become involved with greater social and ethical implications, suddenly subjecting seemingly simple product sourcing to intense scrutiny.
11. Dog Food: Diamond Naturals
For some, our family pets are like family members, and that they eat well is a number one priority. Here at Costco, you don’t have to settle for low-quality when it comes to dog food, thanks to a really great partnership.
Dog Food Insider reveals that Kirkland Signature pet chow is expertly made by Diamond Naturals. This isn’t just any brand; Diamond Naturals is widely considered to be amongst the best, if not the best, dog food available on the market. Knowing this should offer tremendous reassurance to pet parents who are often concerned about the nutritional value of bulk-purchased pet food.
This partnership allows you to purchase in bulk without compromising quality. It guarantees that even in a competitive and emotionally driven market such as pet food, the Kirkland brand is synonymous with dependability, masterminding formulation, and ingredients for your dog’s well-being and vitality at a wallet-friendlier price.
12. Brie: Isigny Ste. Mère
For the discerning fan of refined flavor, Kirkland Signature presents a genuine treat: French Brie with flavor so vividly reminiscent of having been flown in directly from a Parisian marketplace. Costco imports this heavenly brie from Normandy.
- The upscale experience comes from Isigny Ste. Mère.
- As reported in “Costco Connection Magazine,” this cheese is made from grass-fed cows.
- It contains an impressive 60% butterfat content.
- The Normandy-based production methods create a rich, luxurious, and creamy flavor.
To bring such top-quality, globally recognized cheese under the Kirkland Signature brand is a proof of Costco’s worldwide sourcing capability for premium products offering gourmet delicacies at an affordable price without the customary luxury premium.
13. Aluminum Foil: Reynolds
Aluminum foil is an undisputed household staple. Given its ubiquity and importance, you need it to be reliable. Fortunately, Kirkland’s jumbo rolls are made by pros.
Reynolds synonymous with aluminum foil for decades produces Costco’s massive packs. The Reynolds name even appears alongside Kirkland on the box, a clear nod to quality from an industry leader.
The kicker: Kirkland/Reynolds Foodservice Foil is usually several dollars lower per 100 square feet than regular Reynolds Wrap, equally as strong and durable. It’s everyday value without sacrificing anything.
14. Motor Oil: Warren Distribution
When it comes to your motor, quality counts. With Kirkland Signature motor oil, the package lets you know exactly who stands behind it: Made by Warren Distribution.
- Warren is a well-established name in the auto fluids industry.
- They bring significant expertise to the Kirkland brand.
- Their reliability ensures confidence and guarantees products meet industry standards.
- This helps safeguard your car effectively.
It’s a classic case of the Kirkland playbook: partner up with experts, provide consistent performance, and sell it at a price where members enjoy top quality without the top price markup.
