Costco is packed with incredible deals on everything from electronics and home goods to groceries and frozen food. But regular shoppers know that Kirkland bacon is one of the best deals because it tastes great and is cheap. If it seems just as good as brand-name options at the grocery, thats not a coincidence.
Hormel, a big company that cures and packages meat, seems to be the source of the bacon sold at Costco. It seems that the partnership began in the early 2000s, when Costco was having a hard time finding a supplier of bacon that met its high standards. So, they got in touch with Hormel, which is known for its many bacon products sold in stores.
There was a time when this partnership was very clear, with Hormel’s name on the package along with the usual Costco and Kirkland logos. While thats no longer the case in the United States (though it may still be in the U. K. and Canada), it’s not clear if this is just a change in the packaging or a sign that they’re getting their bacon from somewhere else these days.
Wander down the aisles of any Costco warehouse and you’ll inevitably end up tempted by the mountainous stacks of bacon packages Costco’s store-brand Kirkland Signature Bacon has become a cult favorite among shoppers for its top-notch quality and wallet-friendly price point But who’s actually behind the production of this popular pork product? Let’s sniff out the truth on who really makes Costco’s bacon,
Why Costco Bacon Has a Cult Following
Before unraveling the mystery, it’s worth understanding why Costco’s bacon has achieved such a devoted following among shoppers
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Great taste: Kirkland’s bacon consistently earns rave reviews for its smoky, meaty flavor and ideal balance of fat and lean meat.
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Winning reviews: It even won a Consumer Reports taste test for best bacon, beating out famous brands like Oscar Mayer.
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Better quality: Industry experts note the bacon comes from higher-quality hog raising practices.
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Prime cuts: It’s made from premium pork belly that’s hickory smoked.
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Affordable price: At around $3.50 per pound, it’s far cheaper than premium bacon brands.
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Trusted label: The Kirkland name signals it meets Costco’s rigorous quality standards.
With credentials like these, it’s no wonder Costco shoppers are so smitten with the store’s bacon offering. But who’s cooking up these tasty bacon batches?
The Secret’s Out: Costco’s Bacon Supplier
Costco is notoriously tight-lipped about the specific suppliers behind Kirkland Signature products. However, thanks to some savvy reporting, we now know the primary manufacturer pumping out Costco’s treasured bacon supply.
The major supplier making up an estimated 75-80% of Costco’s bacon is…Smithfield Foods.
Smithfield is one of the largest pork processors in the world. They supply premium bacon to major retailers like Target, Kroger, and more. Smithfield has the scale, distribution, and pork expertise to reliably provide Costco with mountains of top-tier bacon.
By having a bacon juggernaut like Smithfield essentially repackaging their products under the Kirkland label, Costco can offer incredible savings to customers. Shoppers get Smithfield-caliber quality at bargain Costco prices.
Regional Suppliers Add Supporting Supply
While Smithfield appears to be the dominant source, Costco likely uses other regional meat suppliers to meet bacon demand across its various warehouse locations. Some of the potential supplemental bacon producers include:
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Farmland Foods: Major pork company that supplies to Costco and major grocers
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Hormel: Once made co-branded Kirkland bacon in 2005 and has capacity to supply
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Tyson Foods: Meat giant with extensive pork business and distribution breadth
By diversifying across a wider network, Costco ensures bacon inventory even if one vendor faces disruptions. The different regional suppliers may also account for slight flavor variations that Costco bacon fans sometimes notice.
It’s a Win-Win Partnership
The bacon partnership between Costco and major suppliers like Smithfield is a win-win arrangement:
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Costco gets trusted product quality and supply at a discounted rate they can pass to customers.
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Suppliers get high-volume bacon orders and their products promoted under Costco’s esteemed Kirkland brand.
In the end, shoppers reap the rewards with the ability to buy premium bacon at unbeatable prices. Next time you throw a pack of sizzling Kirkland bacon in your cart, you can appreciate the big-name pork producer sizzling up those irresistible slices.
Costco’s Secret Recipe for Success
Costco’s tactic of partnering with select vendors to create premium private label products has been a core strategy since its early warehouse club days. And it remains a key factor propelling the retailer’s growth and loyal following today.
Across categories like liquor, furniture, clothing, and of course bacon, Costco leverages partnerships with respected manufacturers to give customers name-brand quality at store brand prices.
So while the precise vendors may remain cloaked in secrecy, shoppers can continue counting on Costco to keep bringing home the bacon when it comes to great deals on coveted grocery items like juicy Kirkland Signature Bacon.
Where the savings come from
But how does Costco’s bacon cost so little? Anyone who has shopped there knows that selling in bulk is a big part of how they make money. Kirkland bacon comes in four packs of one pound each, and two packs of two pounds and a half each for thick-cut bacon. Instead of making small profits on a single package or pound, Costco’s bulk options make sure that each purchase of bacon brings in more than enough money to cover its costs.
Another real reason why Costco’s bacon is so cheap is that it sells a lot of it, which gives companies like Hormel a chance to make money. Producers can sell to Costco for less than to regular supermarkets because they know that large orders will help their bottom line no matter what and are easier to ship than a lot of smaller orders. These steady, long-term partnerships are a dream for many brands who participate in white-labeling.
It’s also important to remember that Costco’s business model is to sell all Kirkland products for 2020% less than similar brand names, without lowering the quality of the products or the store’s profits. To put it simply, Costco probably wouldn’t sell any bacon if it couldn’t meet these high standards. This helps to explain how the store chooses its products and why customers are so loyal to it.
A tried-and-true Costco trick
Some people might find the deal odd, but it’s actually an example of white-labeling, a production method that lets well-known food companies and others make “store brand” versions of a product using the same tools and materials as the more expensive brand name. This method lets stores stock high-quality food for their low-cost generic brands without having to build their own factories. It also lets producers make extra money and keep their workers and machines busy.
Other well-known companies like Starbucks, Ocean Spray, Bumble Bee, Jelly Belly, Diamond Pet Foods, and more make food and drinks for Costco, either in secret or with Kirkland’s brand. Like many other white-labeled products from well-known food companies, Hormel’s Costco bacon might not be the same as the bacon sold in supermarkets under the Hormel brand. Some Reddit users have pointed out differences in texture that can be felt. Some even argue some Kirkland brand products are better than the brand name original.
But there’s no arguing with the price, which can save shoppers a lot of money compared to name brands. And thats something bacon lovers everywhere can agree on.
We Finally Know Why Costco’s Bacon Is So Cheap
FAQ
Who is Kirkland bacon made by?
How good is Costco bacon?
What bacon is sold at Costco?
Who makes member’s mark bacon?
Is Costco Bacon a good brand?
As a point of comparison, the priciest product tested by Consumer Reports, Oscar Mayer Fully Cooked bacon, rated much lower than many other bacon brands. When it comes to bacon, Costco really is the best bang for your buck — no sacrifice on the quality required.
Does Hormel make Kirkland Bacon?
We previously reported that we suspected the supplier was industry leader Hormel because Costco and Hormel used to have a co-branded bacon line together back in 2005, as confirmed by Supermarket News . However, a brand representative for Hormel reached out to debunk the rumor: Hormel does not make Kirkland bacon after all.
Does Costco have hickory smoked bacon?
Costco’s hickory-smoked bacon is a top pick for its affordability and great taste. It has an ideal fat-to-meat ratio and a delicious smoky-sweet flavor. In fact, it even won a Consumer Reports taste test for the overall best bacon brand —stacked up against popular brands like Oscar Mayer, Wright, and Trader Joe’s .
Is Costco’s Kirkland Signature Bacon good?
Costco’s Kirkland Signature bacon got rave reviews from no less than Consumer Reports, who noted that of the different bacon brands it tested, “Kirkland Signature was the only excellent product. It crisped up nicely and consistently had balanced fat and meat flavors complemented by wood smoke and a hint of sweetness.