If you have ever walked through a Costco warehouse, you have probably seen those red and black Kirkland Signature labels everywhere. From toilet paper to champagne, this store brand has become a favorite for millions of shoppers. But here is something wild: Kirkland Signature actually makes more money than Coca-Cola, Hershey’s, and even Nike. There are plenty of secrets hiding behind that familiar logo that most shoppers have never heard about.
The brand was almost called something completely different
When Costco decided to launch its own store brand back in 1995, they had a different name in mind. The company wanted to call it “Seattle Signature” as a nod to the city where the very first Costco store opened its doors. It sounded fancy and had a nice ring to it. But there was a problem. The trademark got rejected, which meant Costco had to go back to the drawing board and come up with something else entirely.
So how did they land on Kirkland? At that time, the company’s headquarters were in Kirkland, Washington. One employee suggested using that city name instead, and everyone agreed it worked. The funny part is that Costco later moved its headquarters to Issaquah, Washington. When asked why they did not change the brand name again, co-founder Jim Sinegal joked that nobody could spell Issaquah anyway. Fair point.
Costco used to have multiple store brands before Kirkland
Most people think Kirkland Signature has always been the only store brand at Costco, but that is not true. When Costco first opened in 1983, they actually had several different private labels. Each one covered a different type of product. There was Simply Soda for cola drinks, which came in a red can that looked a lot like the famous Coca-Cola design. Other separate brands covered things like toilet paper, laundry detergent, and even dog food.
This went on for about twelve years until Costco made a big decision. They scrapped all those individual labels and replaced them with just one name: Kirkland Signature. Why the change? Having everything under one brand makes shopping easier for customers. Nobody has to wonder which store brand to pick. It also costs Costco less money to produce items under a single label, which means they can keep prices lower for shoppers.
Kirkland products are secretly made by famous name brands
Here is one of the best-kept secrets in the grocery world. Costco does not actually make any Kirkland Signature products themselves. Instead, they partner with manufacturers around the world to create these items. And here is the kicker: many of those manufacturers also make products for famous name brands that you already know and love. So that cheaper Kirkland item might be coming from the exact same factory as the expensive stuff.
Take toilet paper as an example. Costco used to work with a company called Kimberly-Clark, which owns brands like Kleenex, Scott, and Huggies. These days, the toilet paper is allegedly made by Georgia Pacific, which produces Angel Soft and Dixie products. The same thing happens with other Kirkland products throughout the store. You might be getting name-brand quality at store-brand prices without even knowing it.
Some big companies actually want their name on Kirkland labels
While some manufacturers prefer to stay anonymous, others are proud to put their name right next to Kirkland Signature on the package. This is called co-branding, and it happens more often than you might think. These companies see partnering with Kirkland as a way to get their products onto Costco shelves and in front of millions of shoppers. It is a win for both sides of the deal.
One great example is Jelly Belly, the iconic jelly bean company that has been around since 1869. They opted to co-brand with Kirkland, so you will see both names clearly printed on the package. Starbucks also used to co-brand on Kirkland’s House Blend whole bean coffee until early 2024. Nature’s Path does the same thing with their granola. These partnerships show that even established brands see value in teaming up with Costco’s store label.
Toilet paper is the all-time bestselling Kirkland product
Out of all the thousands of products that carry the Kirkland Signature name, one item stands above everything else. Can you guess what it is? Toilet paper. Costco sells over one billion rolls of Kirkland Bath Tissue every single year. That adds up to roughly $400 million in sales from just this one product. It is honestly kind of amazing when you think about how many rolls that actually is.
Costco takes their toilet paper very seriously too. The company has a special lab where they test Kirkland products to make sure they meet quality standards. According to reports, toilet paper gets tested more than any other item. Lab workers check the colors and texture using fancy equipment. They also do a regular “scrunch and bunch” test by hand. All this effort helps explain why so many families keep buying Kirkland toilet paper over and over again.
You can buy Kirkland products without a Costco membership
Everyone knows that you need a membership card to shop at Costco. The annual fee starts at $65 and goes up to $130 for the executive level. This membership model is actually the main way Costco makes money, bringing in over $4 billion every year. But what if you love Kirkland products and do not want to pay for a membership? There is actually another option that most people do not know about.
Kirkland Signature products are available on Amazon. That is right, you can order many popular Kirkland items online without ever stepping foot in a warehouse. There is a catch though. The prices on Amazon are higher than what members pay at Costco. For example, a two-pack of Kirkland Organic Creamy Peanut Butter costs around $19 on Amazon but only $12.99 at the store. Costco hopes this might convince people to become members eventually.
Kirkland Signature makes more money than huge corporations
This is probably the most shocking fact about Kirkland Signature. The brand generates around $56 billion in sales every single year. To put that number in perspective, that is more money than Coca-Cola makes. It is more than Hershey’s. It is even more than Nike. A store brand that most people think of as a “generic” option actually outperforms some of the most famous companies on the planet.
These numbers prove that Kirkland is not just some cheap knockoff brand sitting on store shelves. It has become a household name in its own right. People trust the quality and keep coming back for more. The fact that Costco sticks with just one private label instead of creating a bunch of different ones has clearly paid off. Customers know exactly what to expect when they see that Kirkland logo.
Costco only has one private brand on purpose
Have you ever noticed how many different store brands other retailers have? Target owns 48 private brands. Walmart’s newest food label called Bettergoods covers 300 items just in that category alone. But Costco? They have stuck with Kirkland Signature as their only in-house brand for nearly three decades now. This is not an accident or laziness. It is actually a very smart move that benefits everyone involved.
When a store has only one private brand, customers do not have to make confusing choices about which store label to pick. It also builds loyalty because shoppers learn to trust that one name. On Costco’s end, keeping everything under the same umbrella costs less money to produce. Those savings get passed along to members through lower prices. It is a simple strategy that works really well for the warehouse chain.
Kirkland products go through serious quality testing
Some people assume store brands cut corners to save money, but Costco takes the opposite approach with Kirkland Signature. The company has a dedicated lab where technicians carefully test products to make sure they meet high standards. They use special equipment to measure things like color consistency and texture. This testing happens across many different product categories to maintain quality throughout the entire Kirkland lineup.
The testing process helps explain why Kirkland products have such a good reputation among shoppers. Costco is not just slapping their label on random items and hoping for the best. They put real effort into making sure what you buy actually works well and lasts. When you pick up that giant pack of Kirkland bath tissue or bottle of olive oil, there is genuine quality control behind it. That attention to detail keeps customers coming back.
Kirkland Signature has grown from a simple store brand into something much bigger over the past three decades. The next time you see those red and black labels at Costco, you will know there is a lot more going on behind the scenes than most people realize. Whether you are grabbing toilet paper, peanut butter, or coffee, you are buying from a brand that rivals the biggest names in the business. Not bad for a label named after a city most folks have never heard of.
