Who Owns Kirkland Signature?

Kirkland Signature was introduced by Costco in 1992, initially as a limited range of products, and was more formally established as a comprehensive private label brand in 1995. The brand was named after Kirkland, Washington, where Costco was headquartered at the time, before the company moved its headquarters to Issaquah, Washington. The name was chosen to give the brand a geographic identity and sense of place, rather than using a generic store brand name.

Costco's approach to private label was distinctive from the start. Rather than creating a budget alternative to national brands, Costco positioned Kirkland Signature as a premium product that would match or exceed the quality of the leading national brand in each category, while offering a lower price. This quality-first approach was central to Costco's overall business philosophy.

Kirkland Signature's early products included coffee, wine, paper products, and food staples. The brand quickly gained a reputation for quality, particularly in categories like coffee (Kirkland Signature coffee is roasted by Starbucks), wine (Kirkland Signature wines have won numerous awards), and nuts (Kirkland Signature almonds and cashews are among the best-selling nut products in the United States).

A key element of Kirkland Signature's success is Costco's practice of sourcing products from the same manufacturers that produce leading national brands, but selling them under the Kirkland Signature label at lower prices. This practice, known as co-manufacturing or white labeling, allows Costco to offer genuinely high-quality products while maintaining lower prices through Costco's efficient supply chain and high-volume purchasing.

Kirkland Signature expanded rapidly through the 2000s and 2010s, adding new categories including clothing (Kirkland Signature dress shirts and khakis became popular for their quality and value), electronics accessories, household goods, health and beauty products, and fresh foods. The brand's expansion reflected Costco's growth and its members' trust in the Kirkland Signature quality standard.

By the mid-2020s, Kirkland Signature had grown to generate over $50 billion in annual sales, representing approximately 25-30% of Costco's total revenue. This makes Kirkland Signature one of the largest consumer brands in the United States by revenue, comparable to major national brands like Tide or Pampers. The brand's success has been a key competitive advantage for Costco, as Kirkland Signature products are only available to Costco members.