Who REALLY Makes Kirkland? Costco's Secret Partners

Post inspired by: https://www.youtube.com/watch?v=pAq5UcD9wp0

 Summary: “The Kirkland Secret – Who Really Makes Costco’s Products”

An independent investigator uncovered the hidden network of brand partnerships behind Costco’s Kirkland Signature line — revealing that many of the “off-brand” products are actually made by household name brands.

Through in-store research and interviews, the report shows how Costco’s private label quietly dominates the market while maintaining premium quality and billion-dollar profits. Despite the “discount” branding, Kirkland is produced by the same factories as major brands — and in some cases, by the same companies themselves.

☕ Who Really Makes Kirkland Products

• Kirkland Coffee → Starbucks manufactures most of it.

• Kirkland Batteries → Duracell is the producer.

• Kirkland Tuna → Made by Bumble Bee.

• Kirkland Pet Food → Produced by Diamond Pet Foods.

• Kirkland Baby Formula → Manufactured by Perrigo, which also supplies Walmart, Target, and Sam’s Club.

• Kirkland Diapers → Originally by Huggies (Kimberly-Clark); now made by First Quality (maker of Cuties Diapers) — sparking consumer backlash over quality decline.

• Kirkland Juice → Produced by Ocean Spray, openly labeled on packaging.

• Kirkland K-Cups → Made in partnership with Keurig.

• Kirkland Aluminum Foil → Produced by Reynolds Wrap, also openly co-branded.

• Kirkland Olive Oil → Authentic Mediterranean product; Costco is America’s largest olive oil buyer.

• Kirkland Parmesan Cheese → Imported directly from Italy’s Formaggi Zanetti, officially certified.

• Kirkland Milk → Exceeds USDA microbial safety standards.

💡 Behind the Business Model

Many top-tier brands refuse to publicly admit that they manufacture Kirkland products.The reason? Brand protection and price differentiation.If customers discovered their $60 brand-name item was identical to a $20 Kirkland product, they’d switch — devaluing the premium brand image.

A few “rule breakers,” like Ocean Spray and Reynolds, proudly acknowledge the partnership because it boosts brand trust and mutual sales.

🧪 The Mayonnaise Lesson

Costco once tried to launch Kirkland Mayonnaise, but after testing, their scientists couldn’t outperform Hellmann’s quality. Instead of releasing an inferior product, Costco canceled the entire line — proving that Kirkland products must meet or exceed name-brand standards before going to market.

💰 Kirkland’s Scale & Impact

• $86 billion in annual revenue — roughly one-third of Costco’s total sales, making it larger than Nike, Lowe’s, or Netflix.

• Over 300 active products spanning food, home goods, apparel, and personal care.

• Top 3 Kirkland products:

  1. Bath Tissue 🧻

  2. Dish Detergent 🧼

  3. Facial Tissue 😷

  4. 
     

⚖️ Legal & Market Implications

In 2025, Lululemon sued Costco, claiming Kirkland’s leggings and hoodies were “dupes” that confused customers.Legal experts warn the case could set precedent for private-label design limits, potentially reshaping how retail giants like Costco, Sam’s Club, and BJ’s market store-brand apparel.

🔍 Key Takeaways

✅ Kirkland’s “secret” success lies in white-label manufacturing by major global brands.

✅ Premium quality at discount prices is achieved through shared production lines and exclusive bulk deals.

✅ Brands deny involvement to protect pricing tiers and prestige branding.

✅ Costco only launches Kirkland items if they match or exceed name-brand quality.

✅ The $86B Kirkland empire now rivals multinational corporations.

✅ Transparency is growing, with brands like Ocean Spray and Reynolds breaking silence.

✅ The Huggies-to-Cuties diaper shift has hurt consumer satisfaction and brand loyalty.

✅ Authenticity and traceability, like with olive oil and cheese, drive customer trust.

✅ The Lululemon lawsuit could redefine how store brands imitate name-brand designs.

✅ Kirkland is not a knockoff brand — it’s a strategic retail powerhouse redefining modern consumer trust.

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