The Connection Between Costco's Kirkland Brand Coffee And Starbucks

Anyone who's shopped at Costco knows the warehouse club is famous for its affordable, high-quality house brand Kirkland Signature. While Kirkland offers a wide variety of items, ranging from paper products to hard alcohol, one of the most noteworthy is the company's coffee. Those who've tried the brand's beans might find the taste somewhat familiar, particularly if they're also Starbucks regulars. That's not a coincidence; In fact, it reveals important details about how Costco operates.

As recently as 2023, Starbucks was responsible for roasting significant amounts of the coffee beans that ended up on Costco shelves in Kirkland-branded bags. Beyond the flavor similarities, other clues included subtle Starbucks branding and mentions on Kirkland coffee packaging, as well as the store-brand product's presence on Costco's website alongside traditional Starbucks coffee.

Though this process (known as white labeling) might surprise some, it's a common practice used by Costco and many other chains that offer in-house brands. Rather than invest time and money in building their own supply chains and coffee-roasting infrastructure, companies like Costco simply pay established producers to make special batches that are then labeled with the retailer's packaging. In return, producers get to profit from extra business without affecting their brand or too closely associating themselves with any one chain.

Starbucks' past connection to Costco and Kirkland is clear, but the current status of the brands' relationship is less certain. Sometime before 2024, Starbucks references and branding were removed from Kirkland coffee packaging, and Costco seems to have entered into contracts with other coffee companies to produce other products. These include the popular brand behind Costco's K-Cups, Green Mountain Coffee. However, with no public announcements or reported replacement, the exact producer of Kirkland coffee post-2024 is murkier than a freshly brewed cup of dark roast.

It's true that Starbucks and Green Mountain aren't the only recognizable name brands hiding behind Costco's popular Kirkland products. For example, Kirkland canned tuna has been supplied by Bumble Bee, and Kirkland aluminum foil is made by Reynolds. Some of these established brands are prominently mentioned on Kirkland packaging, while others remain the subject of rumor and speculation.

Whether Costco coffee ranks among the Kirkland Signature products that are better than the brand-name original is a matter of taste. Still, with suppliers as familiar and high-end as Starbucks, it's safe to say Kirkland doesn't skimp on quality.