Since people shop at Costco warehouses for savings, the private label Kirkland brand can fill the cart. Although the Kirkland name is synonymous with Costco, other companies provide the particular food item behind the label. In the case of Kirkland’s frozen shrimp, the provider of that sweet, plump crustacean is based far away.
As seen in a 2020 FDA recall announcement, Kader Exports provides shrimp under the Kirkland brand. The 2020 recall included various sizes of cooked, peeled, and deveined shrimp. In addition, this company provides shrimp sold under other private label names, including Fresh Market and Wesley Farms.
Kader Exports Private Limited is based in India. According to the listed website, the company is a leading exporter of black tiger shrimp and focuses mostly on the shrimp export business. It prides itself on minimal farm-to-facility transport time. Over its 28 years, the business looked to maximize efficient seafood processing.
Kader Exports is not necessarily a brand that will sell directly to consumers. If someone loves the Kirkland frozen shrimp but is not near a Costco, they can turn to Fresh Market or Wesley Farms as the alternative.
As private-label brands continue to gain traction with consumers, the Kirkland brand continues to top the list. As Retailwire reported, the company seeks to provide superior quality while offering at least 20% savings on the purchase. That concept has built consumer loyalty over the years.
While the pricing is a purchase driver, the decision to label all Costco private label products Kirkland was intentional. From food to home improvement, that singular name became a brand on its own. Although unique to Costco, it is another example of how the warehouse store stands out from its competitors.
Previously reported by CNN, the Kirkland brand seeks to position “Kirkland as a premium brand at value prices.” At the core of its purpose is to celebrate “less choice is better.” Even though some named brands long to be featured on the monthly coupons, shoppers appreciate that the private label offering is always on the shelf. When faced with the difference between a scoops tortilla chip and the store brand, many people will pick the Kirkland bag not just for the price per serving but also for the flavor.
When Costco shoppers look at two bags of coffee on the shelf, some people might think that the Starbucks bag is a good deal. But, the reality is that the Kirkland brand coffee might be an even better value. According to Ascent from Motley Food, Starbucks is one of several third-party manufacturers behind the Costco private label offerings. The publication asserts that brands like Bubble Bee tuna, Reynolds Aluminum Foil, and Ocean Spray Cranberry Juice contribute to the private label’s success.
For some people, it might seem counterintuitive for well-known companies to support Costco and its Kirkland brand. Instead of the differing quality of offerings, everything is considered the best. In addition, the concept does not dilute either brand’s offerings. People see the products as separate. Since some people might associate higher costs with better quality, they will continue to support the well-known product. Others will choose differently; in either situation, it is a win for the third-party manufacturer since they are selling more products.
During that next Costco shopping trip, the buy list might be better served by focusing on a product, not a name. It does not take an economics major to explain the intricacies of cost-value analysis and the worth of the Kirkland brand products.