Costco Kirkland and Trader Joes Eat the Snack Aisle

Kirkland Signature snacks and Trader Joes private label now collectively rival the top three national snack brands by retail dollar volume, with TJs "everything but the bagel" line alone generating estimated nine-figure annual sales.

The competitive moat private label has built is no longer price — its product innovation that moves faster than national brands stage-gate processes can match. Trader Joes launches roughly 30 new SKUs monthly.

Expect national brands to accept margin compression to defend shelf space, plus accelerated co-manufacturing deals where CPG majors quietly produce private-label SKUs for these channels.

Shoppers actively seek out private-label products at these channels (the inverse of traditional grocery dynamics), and brand loyalty has shifted from manufacturer to retailer.

If youre a CPG brand selling into Costco or TJs, your role is increasingly product-development partner, not branded supplier. Pricing those margins correctly is now a strategic question.