The Kirkland Brand Is Costco's Secret Weapon When It Matters Most

In the early days of private-label packaged foods, a retailer's notion of private labels was something of an afterthought. The word "generic" was often used interchangeably, and simple black-and-white packaging left much to be desired. Quality also didn't appear to be a priority.

Much has changed since then. Some grocers have turned their private-label brands into lines that are as well regarded as -- if not more beloved than -- comparable options from packaged food companies like Kraft Heinz or General Mills. Recent data from the Food Marketing Institute (FMI) and market research outfit IRI indicates nearly half of all consumers now specifically seek out a private-label product.

If the trend continues as is, warehouse club retailer Costco (NASDAQ: COST) is quietly poised to leverage its surprisingly large and popular house-brands business. That's saying something, considering how well Kroger (NYSE: KR) and Walmart (NYSE: WMT) have cultivated their own private-label brands.

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Source Fool.com