CPG
Costco Kirkland and Trader Joes Eat the Snack Aisle
Private-label snacks at the warehouse and specialty channels have moved from value play to category leader. National brands are losing share at the fastest rate in decades.
By FTF Editorial Team·May 6, 2026·5 min read
Private label isn't about cheaper alternatives anymore; at Costco and Trader Joe's, it's the destination product.
What happened
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.
Why it matters
The competitive moat private label has built is no longer price; it's product innovation that moves faster than national brands' stage-gate processes can match. Trader Joe's launches roughly 30 new SKUs monthly.
Market impact
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.
Consumer insight
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.
Strategic takeaway
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.
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