01The Wine Economist·
Costco stocks boutique wines amid global industry surplus
- Costco, the largest US wine retailer, now stocks boutique producer wines alongside its Kirkland Signature house brand as winemakers worldwide struggle with oversupply.
- Kirkland Signature wines, launched in 2003 in lots of around 2000 cases each, are made by contracted winemakers and distributed across warehouses in rotating releases to drive repeat visits.
- Costco's model mirrors the British supermarket approach (Tesco, Sainsbury's) of using store-branded wines to build consumer confidence in unfamiliar global producers rather than the US brand-driven system.