If you open your pantry right now, I bet you’ll have one or two (or more) Kirkland Signature products, the top-quality Costco’s private brand. Its products are excellent caliber, but they’re also low-priced compared to other fancy, brand-name items. I bet you have already asked yourself how does Costco manage to keep the prices low, and the lack of answer haunts you for years.
Well, we’ve made the homework and unveiled this mystery for you. The company uses a bunch of strategies, but, the most important is the use of their bulk purchasing power. Costco buys products in large, but really large quantities, which allows them to negotiate lower prices with their suppliers. This means that they can pass these savings on to their customers. Now, where do they order those gigantic quantities of products? Well, you’ll be surprised about the top brands that are behind your affordable products.
The Top-Notch Manufacturers Behind Your Favorite Costco Kirkland Signature Items
While some products are made exclusively for Costco and sold under the Kirkland Signature label, many are actually made by nationally recognized brands who also produce their own branded versions of the same product. These companies, like Starbucks, Diamond Pet Foods, and Jelly Belly, will often agree to produce an exclusive version for Costco that meets its strict standards for quality and price point. The only difference is the distinct black, red, and white label and packaging and a lower price. In fact, prices are typically 20% lower than comparative brands, which helps shoppers stay on budget.
For example, Starbucks coffee produces several varieties of Kirkland Signature coffee, including the 2.5-pound Kirkland Signature Espresso Blend Coffee, Decaf House Blend Coffee, and Regular House Coffee. The price per pound for Kirkland’s Signature House Blend Coffee is $7.60, compared to the 2.5-pound Starbucks French Roast Whole Bean Coffee that Costco sells for $10 per pound. Such a nice deal, ain’t it?
Diamond Naturals, also known as Schell and Kampeter, Inc., makes Kirkland Signature Dog Food, while Jelly Belly produces the Kirkland Signature Jelly Belly 64 oz. Variety Pack. Meanwhile, Duracell is the manufacturer of Kirkland Signature Batteries, and Bumble Bee makes Kirkland Signature’s Albacore Solid White Tuna.
Huggies maker Kimberly-Clark is also the manufacturer of Kirkland Signature Diapers, and Reynolds aluminum foil’s New Zealand’s Reynolds name is proudly displayed on the Kirkland packaging. The price per square foot for Costco’s heavy-duty brand is $0.05, compared to Reynolds at $0.07.
Is Kirkland Signature Coffee as Good as Starbucks?
You find yourself strolling around Costco, looking for some coffee to get you through the morning rush. And, lo and behold, you come across Kirkland Signature House Blend Medium Roast.
Let me tell you, this coffee does not disappoint. It is so balanced and clean, with just a hint of sweetness and a touch of almond and dark chocolate. And the aroma? Oh, man. It’s like a gently charred cedar mixed with some grapefruity citrus. It was enough to wake up my senses and get me ready for the day.
The taste is simple, but delicious. The almond and dark chocolate notes came through, but in a muted way, not being invasive. The acidity was roast-rounded, and the mouthfeel was light and leanish, with just a hint of silkiness. And the finish? A little drying, but quite rich, with a lingering taste of dark chocolate.
You might be surprised to learn that this coffee is roasted by Starbucks, and it’s actually really good for the price: just $5.75 per pound. I mean, you can’t go wrong with that. According to Coffee Review, it had a rating of 82 out of 100, so you give it a shot. It might please you as one from Starbucks.
Why Costco’s Kirkland Signature Is Trending Right Now
The brand is so popular right now because of several factors, and all of them impact in your family’s budget. The pandemic-induced shortages and a steep increase in demand caused many stores to run out of stock on certain products.
As a result, customers had to experiment with store-brand products like Kirkland Signature for the first time. In addition to this, the cost of living has risen, and many families are shifting their consumption habits to save on expenses, making Kirkland’s affordability more attractive to shoppers.
Apparently, according to a super official survey by AlixPartners, like 25% of consumers have finally discovered private-label brands as Costco’s Kirkland Signature. I mean, who would have thought, right? And also, a whole 30% of those first-timers plan on sticking with them! Looks like Kirkland is about to become the new sheriff in town.
And why wouldn’t they, with the costs of everything skyrocketing, even the average Joe can’t afford to splurge on fancy brands anymore. In fact, store brands have been raking in sales like never before, a whopping $199 billion in 2022.