Why Did Costco Stop Selling Its Kirkland Signature Chocolate Chips?

Kirkland Signature chocolate chips were among the Costco items that disappeared in 2024, along with food court offerings like roast beef sandwiches and churros. As for why this product was removed from store shelves, the rising cost of cocoa appears to be the primary reason. This information comes courtesy of a Reddit post from someone claiming to have an official response to the discontinuation. As stated in the posted letter, "Cocoa costs have risen near 200% compared to last year," which means that Costco is unable to "make [its] Kirkland Signature Chocolate Chips a value against national brands." To this end, Nestlé Toll House-brand chocolate chips will take the place of the Kirkland brand, at least for the time being.

While the statement shared on the social media platform is rather comprehensive, Mashed is unable to confirm that this information came directly from Costco. While these claims should be taken with a grain of salt, it's worth noting that cocoa prices did reach record highs throughout 2024. Factors like volatile weather patterns, climate change, disease, and poor conditions among farmers have contributed to a worldwide cocoa shortage. Unfortunately, this shortage is projected to continue throughout 2025, which means Costco's beloved chocolate chips won't be returning any time soon.

As explained by Costco's mission statement on its website, the warehouse retail chain is driven "to continually provide [its] members with quality goods and services at the lowest possible prices." This mission is at least partially made possible by Costco's Kirkland Signature brand, a private label that aims to offer brand-name quality at affordable prices. Where Costco's chocolate chips are concerned, the quality remains intact, but the store is no longer able to offer the product for the same affordable price. As explained in the statement shared on Reddit, estimates show that Kirkland Signature chips would cost more than Nestlé at a rate of $16.99 for Kirkland Signature's red bag of chocolate chips versus $15.48 for Nestlé-brand chips at competing grocery stores.

Ultimately, the chain hopes to offer its own chocolate chips again once cocoa prices decrease. And while Costco shoppers on Reddit are appreciative that the chain is so forthcoming about its supply issues (as one person put it, "Sucks but them being so thorough is pretty cool"), others would rather deal with the increased price for ethical reasons. According to one commenter, "I'd rather the unfortunate price hike than buy nestle chips." The company has experienced quite a bit of controversy due to its questionable practices, including the fact that Nestlé continued to benefit from forced child labor after the U.S. Supreme Court sided with the company on a lawsuit initiated by the now-adult victims of a child trafficking ring based on the Ivory Coast.