COSTCO LAUNCHES PRIVATE LABEL VODKA

Costco is launching its first private label spirits, Kirkland Signature Vodka produced in Cognac, France, which will be made available in most of the Costco warehouses that carry spirits, according to Impact. Costco was prompted to introduce a private label spirit after witnessing the success of Kirkland Signature wines (launched in 2003) and other KS products bearing the label. Costco is currently looking into other spirits categories for future launches, but vodka made the most sense for its initial debut since vodka sales at Costco were up, outperforming the total spirits category for the company’s fiscal year ending August 31.

KS vodka will not be available in some Midwest markets, including Michigan and Iowa, because of laws that do not allow the sale of private label spirits. WSD thinks that private labeling will continue to grow in the future, especially in the alcohol beverage category where you’re already seeing several major retailers with their own wine brands (Target, Wal-Mart, Trader Joe’s.)