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Costco sells a slew of wines through its private label Kirkland Signature. But are they worth the price? Find out if you should give Costco wines a tasting. 

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Costco is the largest U.S. retail wine seller. In fact, in 2020, the last time the company reported its wine sales, Costco sold about $2.5 billion worth of wine, which made up roughly half its overall alcohol sales ($5 billion). A huge part of this uber-profitable wine cellar is the company’s collection of Kirkland wines, which include a variety of types from Cabernet Sauvignon to Pinot Grigio to Prosecco.

If you’ve never tried Kirkland Signature wines, it’s okay to feel skeptical, but trust me — if you want to save money on wine, without sacrificing on quality, Costco may be your new wine store. Here’s what you should know.

Costco privately labels the Kirkland Signature brand, but buys from noteworthy winemakers

In 1995, Costco created the Kirkland Signature brand to bring greater consistency to its products and help its members continue to save money. And though it might say “Kirkland,” many well-known manufacturers are the real face behind Costco’s products, such as Starbucks, Duracell, Huggies, and a few reputable winemakers.

For instance, according to Moneywise, one of Costco’s white wines is affiliated with the Francis Ford Coppola Winery — the winery of the filmmaker with the same name — and another with E&J Gallo Winery. Meanwhile, a slew of its wines are imported by Ethica Wines, the distributor behind many Italian wines we love, like Chianti, Barolo, Amarone, Brunello, and Prosecco. And finally, some of its reds originate with the celebrated winemaker Alison Crowe, who makes wine in Napa Valley.

Costco’s distribution connections also allows it to buy wine from numerous regions, such as Bordeaux, Napa Valley, Friuli Grave, and Toscana. In fact, Kirkland Signature has numerous types of wines you might not see under other private labels, such as Moscato D’asti, Côtes de Provence, and Prosecco Rosé.

It’s hard to beat Costco Kirkland Wines on price

Costco’s private Kirkland label allows it to sell great wines at a low price, often even lower than another private label and purveyor of great cheap wine: Trader Joe’s. In fact, I recently went out to my local Costco and Trader’s Joe’s to check prices. Here’s what I found:

Wine type Costco Trader Joe’s Cabernet Sauvignon (Alexander Valley) $9.99 $12.99 Malbec (Argentina) $6.89 $12.99 Barolo $19.99 $14.99 Sauvignon Blanc (Marlborough) $7.49 $6.99 (discontinued) Chardonnay (Sonoma County) $8.99 $9.99 (discontinued)
Data source: Trader Joe’s website and author’s local Costco and Trader Joe’s in Portland, Oregon

Costco beats or matches Trader Joe’s on nearly every comparable wine except its Barolo, which is about 25% cheaper at Trader Joe’s. That said, as someone who shops at both stores frequently, I’ll admit that collectively Trader Joe’s offers more wines at lower prices than Costco, who also sells numerous pricy bottles from brands that aren’t Kirkland Signature. But if we’re just comparing private labels, Costco sells the cheaper wine.

Typical of Costco, you can also get a better deal on wine if you buy it in bulk. In this case, buying in bulk means buying box wine, which would cost between $12.99 and $13.99 for three liters.

That’s not to say that Costco has the cheapest wine among retailers (Aldi might hold the crown in that regard). But for the quality — perceived not only in taste, but in the many notable regions these wines come from — you’re getting a great deal.

Personally, I like the Chianti and Toscana, but I’m not a fan of Costco’s California wines, like the Cabernet Sauvignon, which has an odd aftertaste. But don’t take it from me — for the price, you can fit a few Kirkland wines into your personal finance budget and see if the taste matches the low cost.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Costco Wholesale, Starbucks, and Uber Technologies. The Motley Fool has a disclosure policy.

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