Step into any Costco warehouse and you’re guaranteed to find aisles packed with incredible deals. But few items have reached the iconic status of Costco’s house-brand Kirkland Signature Bacon. Its perfect balance of smoky flavor, great texture, and low price point has made it a staple for members.
But who is actually behind this top-selling bacon? Which major manufacturer supplies those familiar red-and-black packages stacked in Costco’s refrigerated sections? Let’s unravel the mystery of who makes Costco bacon
Why Costco Bacon Is So Good
Before diving into the supply chain, it’s worth looking at why Costco’s bacon is so beloved in the first place. Consumer Reports found that Kirkland Signature Bacon topped their taste test of all the major bacon brands.
Testers praised the Kirkland bacon for its thickness, ample meat-to-fat ratio, smokey flavor, and sheer affordability. At around $2.50 per pound, it consistently beats the price of national brands like Oscar Mayer without sacrificing quality.
For these reasons, Kirkland bacon has become a staple for Costco members who swear by its premium taste and wallet-friendly price point. But what’s the secret behind this winning combination of quality and value?
The Power of Costco’s Private Label
To understand where Costco bacon comes from, you first have to understand Costco’s business model. As a membership warehouse club, they aim to offer members name-brand products at 20-30% less than traditional retailers.
This is achieved in part through Kirkland Signature, Costco’s highly popular private label brand. Kirkland offerings meet the company’s rigorous quality standards while skipping marketing costs of national brands allowing Costco to price them lower.
Kirkland products are made by third-party manufacturers, including some of the biggest names in their industries. Kirkland vodkas come from Grey Goose, batteries from Duracell, and so on.
So while shoppers just see the Kirkland logo, these items are often made by top producers. And bacon is no exception.
The Prime Suspect: Hormel
For years, the consensus has been that Hormel is the secret manufacturer behind Kirkland Signature Bacon. Hormel and Costco even sold co-branded Hormel Kirkland bacon way back in 2005, confirming their partnership.
As one of the largest U.S. pork producers and a bacon giant, Hormel certainly has the capabilities and expertise to supply Costco’s needs. The company sells its own branded bacon everywhere from Target to Kroger under labels like Black Label and Natural Choice.
With its history of bacon innovation and massive production capabilities, Hormel seems the natural choice to provide Costco members with high volumes of quality bacon at budget prices.
However, Hormel recently stated they do not actually supply Kirkland bacon anymore, disproving the long-running speculation. So if not Hormel, then who?
Following the Scent to Smithfield
With Hormel out of the picture, pork industry insiders point to Smithfield as the likely key supplier these days. And there is compelling evidence to support this theory.
While Costco uses multiple regional suppliers, Smithfield’s sheer scale makes them well positioned to be the primary source for Kirkland bacon. As the largest pork processor and bacon producer in the U.S., Smithfield has the network to satisfy Costco’s supply demands.
Smithfield is also a supplier for many premium national bacon brands, showing they can match Kirkland Signature’s quality standards. And with plants scattered across the country, they have the distribution in place to efficiently stock Costco locations from coast to coast.
Though Smithfield has not officially confirmed the connection, the pieces add up to this pork powerhouse being the driving force behind Costco’s signature bacon.
Why the Supplier Shuffle?
This shift from Hormel to Smithfield as the likely major supplier raises a question – why did Costco change producers when customers already loved the bacon?
There are several possible reasons Costco may have made this move:
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Capacity – With over 800 warehouses and growing, Costco would need immense supply volume that smaller producers couldn’t handle. Smithfield’s size offers security.
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Price – To keep prices low, Costco needs to work with suppliers offering bulk discounts. Smithfield’s economies of scale allow this.
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Distribution – Smithfield’s widespread facilities may allow easier logistics and stocking to all Costco locations.
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Quality – If any quality issues arose with the old supplier, shifting to Smithfield allowed a reset.
Ultimately, Smithfield appears able to meet Costco’s demanding bacon needs even better than veterans like Hormel. The switch lets Costco continue perfecting its bacon game.
The Perks of Private Labeling
Whether produced by Hormel, Smithfield, or any number of other suppliers, Costco’s use of private labeling offers advantages to both the company and its producers.
For Costco, it lets them sell top-tier products at discount prices, delivering on their guarantee of quality and value. Outsourcing production means Costco doesn’t have to build its own manufacturing facilities.
Meanwhile, even though these big brand names don’t get the same label recognition, private labeling is highly lucrative. Companies get reliable bulk orders, improved economies of scale, and discounted access to Costco’s coveted member base.
In the end, shoppers are the real winners – getting great bacon for less without sacrificing anything.
Kirkland Bacon By the Numbers
Now that we’ve unraveled the supply web behind Costco’s lauded bacon, let’s look at some fun figures that highlight its popularity:
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Over 1.1 million pounds of Kirkland bacon are sold per month.
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Kirkland represents around 15% of all bacon sold monthly at Costco.
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Each pallet contains 10,500 pounds of Kirkland bacon.
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Costco sells the equivalent of over 6 miles of bacon strips laid end to end – every month!
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Kirkland thick-cut bacon packs contain on average 68 strips per package.
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Regular cut Kirkland bacon averages 119 strips per pack.
With stats like these, it’s clear that Costco members simply can’t get enough of this bacon!
Alternatives for Special Diets
Of course not everyone can enjoy Costco’s traditional pork bacon due to dietary restrictions or preferences. Fortunately Costco has expanded their bacon selection to accommodate:
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Turkey bacon – For a lower fat alternative.
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Beef bacon – Made from beef brisket for a meatier flavor.
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Chicken bacon – A lighter alternative with milder flavor.
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Vegan bacon – Made from soy, coconut, or eggplant for an animal-free option.
No matter your dietary needs, Costco likely has a bacon you can enjoy!
The Bottom Line
At the end of the day, while the exact supplier may still have some mystery around it, one thing is certain – Costco members absolutely love the Kirkland Signature Bacon they find in stores. Its balance of smoky flavor, ample thickness, and tender texture has made it a staple no matter who is producing it behind the scenes.
And the savings are undeniable. Costco’s bulk packages translate to prices typically $2-3 cheaper per pound than national brands. So next time you need to stock up for a weekend brunch, BLT night, or just a bacon fix, head to Costco for high-quality bacon at unbeatable prices.
Whether it comes from Hormel, Smithfield, or another top producer, you can rest assured you’re getting an incredible bargain on great tasting bacon – and that’s something any bacon lover can enjoy. The mystery of who makes Costco bacon may not be solved completely, but the satisfaction it delivers is no secret!
We Finally Know Why Costco’s Bacon Is So Cheap
FAQ
Who makes the Kirkland brand bacon?
What bacon is sold at Costco?
Who makes member’s mark bacon?
Who makes Kirkland brand at Costco?
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.