Who Actually Makes Kirkland Signature Products?
Costco keeps its Kirkland Signature suppliers a guarded secret. I dig into the confirmed and rumored partners behind the $58 billion private label, from Duracell batteries to Starbucks roasted coffee.
Quick Answer
Kirkland Signature is not made by Costco. It is a private label brand that contracts established national manufacturers to produce items to Costco's specifications, then sells them at a thinner margin under the Kirkland name.
Confirmed and widely reported partners include Duracell for AA and AAA batteries, Starbucks for many of the dark roast coffees, Niagara Bottling for water, Ocean Spray for cranberry juice, Reynolds for foil, and Humboldt Creamery for some of the ice cream. Costco refuses to confirm most pairings publicly because that secrecy is a core part of how the brand keeps prices low.
Why Kirkland Signature Is a $58 Billion Business
Kirkland Signature launched in 1995 as a way to consolidate Costco's house brands under a single name. Today the line generates roughly $58 billion in annual sales, which would make it one of the largest consumer brands in the world if it were spun out.
The model is simple. Costco identifies a category where members are buying a name brand, negotiates a contract with that same manufacturer (or a comparable one), and asks them to produce a version that is at least as good but cheaper. The deal is usually structured so the supplier gets enormous volume in exchange for accepting low margins and signing strict confidentiality clauses.
The Battery Deal Everyone Knows About
The most famous Kirkland partnership is with Duracell. For years, internal labelling and chemistry analyses have shown that Kirkland AA and AAA alkaline batteries are functionally identical to Duracell Coppertop. Duracell, owned by Berkshire Hathaway, supplies them in bulk to Costco at a discount that Costco then passes on to members.
The pack of 48 Kirkland batteries usually costs less per cell than a small Duracell blister pack at a drug store, which is why electronics testers regularly recommend them as a default household battery.
Coffee, Tequila and the Premium Partnerships
Kirkland Signature 1.36 kilogram bags of dark roast whole bean coffee carry a small line on the back stating they are roasted by Starbucks. Costco does not advertise this on the front, but it is right there in the fine print. The blend is not identical to a retail Starbucks bag, but it is roasted at the same facilities.
The Kirkland French Vodka has been linked to the Gayant distillery in northern France. The Kirkland Anejo Tequila is bottled in Jalisco by a producer that also fills bottles for several premium tequila brands. The Kirkland Champagne is produced by Manuel Janisson in the Champagne region of France.
Grocery Staples and the National Brand Equivalents
The grocery aisle is where Kirkland really competes with the national brands. A few of the well documented pairings include:
- Tuna: Bumble Bee has been the long term supplier of Kirkland Signature canned albacore tuna.
- Bacon: Hormel produces a large share of the Kirkland bacon sold in the US.
- Maple syrup: Sourced primarily from Quebec producers and bottled to grade A standards.
- Olive oil: Kirkland Organic and Toscano lines have repeatedly scored at the top in independent purity tests, sourced from producers in Italy and Spain.
- Trash bags: Reynolds Consumer Products manufactures the heavy duty Kirkland kitchen trash bags.
Why Costco Keeps the Suppliers Secret
If shoppers always knew which national brand made each Kirkland item, two things would happen. First, members would do the math on the wholesale price and feel taken advantage of when they bought the branded version elsewhere. Second, the national brand's other retail customers (Walmart, Kroger, Target) would push back hard for the same pricing.
The non disclosure agreements are not theatrical. They are the legal mechanism that keeps a manufacturer willing to sell a $9 jar of nuts under one label and a $4 jar of nuts under another, without their other clients revolting.
How to Spot the Real Manufacturer Yourself
Even with the secrecy, there are a few tricks. Look at the small "Distributed by" or "Manufactured for Costco Wholesale" text on the back of the package. It often lists the actual production facility address. A quick search on that address usually reveals the national brand that operates that plant.
Lot codes and bottling plant numbers on dairy products, juices and bottled water are also useful. The FDA plant code printed on milk jugs and gallons can be cross referenced with the publicly available plant code database to find the dairy that filled the carton.
The Takeaway
Kirkland Signature is essentially a parallel universe of premium national brands, sold at a discount because Costco demands volume and accepts thin margins. Once you know that Duracell makes the batteries, Starbucks roasts the coffee, and Bumble Bee packs the tuna, the value proposition stops feeling mysterious and starts feeling like one of the smartest private label plays in retail history.
Frequently Asked Questions
Are Kirkland products always the same as the name brand?
Often very close, but not always identical. Costco specifies the formula, so the recipe may be slightly different (sometimes better, sometimes more bare bones) than the retail version.
Does Costco own any of its own factories?
A handful. Costco operates its own optical lab, hot dog plant, and a few meat processing facilities, but the vast majority of Kirkland items are contract manufactured by third parties.
Is Kirkland coffee really Starbucks?
Yes for the Kirkland Signature 100% Colombian and several house blends. The back of the bag confirms it is roasted by Starbucks.