Why Aren't Kirkland Products Called Costco Brand?

There are many things to love about Costco, with the retailer's Kirkland Signature product line an especially enticing selling point. After all, the decades-old private label encompasses an impressive variety — think deals on products ranging from bottles of booze and Kirkland Signature snacks to even premade 14-serving packages of cheese tortellini. So while perusing the numerous options, you may wonder: Why aren't Kirkland Signature products called the Costco brand? With the private label's distinct labeling, it's not like there's any confusion about the purveyor.

Costco hasn't released an official statement on the matter, but it can be assumed the separation comes down to brand recognition. Kirkland Signature labeling lets customers know that a product has gone through the retailer's private label system, signaling high quality at a good value. Such a marketing move cultivates loyalty specifically to the Kirkland Signature brand, even as opposed to other Costco offerings.

Unlike other major retailers, Costco doesn't employ distinct private label names by product category. There also aren't varying tiers of price points within the brand (think a premium marker). Instead, the single Kirkland name — given in ode to Costco's first headquarters location — intertwines all of the retailer's private label offerings. This approach lends Kirkland an air of intrigue, rather than positioning it as a budget alternative.

Although encompassing about a third of Costco's sales, Kirkland Signature is a huge brand in itself. The store's private label alone outshines many major companies, all while remaining selective with its lineup. Costco both partners with famous brands for Kirkland items and works with niche manufacturers to sustain the label. Sold in a store with an already tightly curated selection, Kirkland Signature products go through especially intensive quality checks, ensuring few items are a letdown. Furthermore, the label's prestige has grown so much that these products are increasingly sought after even outside of Costco warehouses. While the brand is intended exclusively for members, third-party resellers often list these items on other online marketplaces, further elevating the label's status.

Such an approach offers added promotion for Costco's private label products, making them a distinguished market offering. When buying a Kirkland Signature item from a third-party seller online, the label provides added quality assurance. In some cases — like with Costco's Kirkland Signature vodkas — that status also contributes to extra marketing cachet. Add up all of these perks, and it's clear that Kirkland Signature lends Costco even greater success.