Secrets Of Costco Liquor You'll Wish You Knew Sooner

Costco works with well-known distilleries to produce Kirkland Signature alcohol

Some of the most affordable liquors at Costco come from the Kirkland Signature brand. What you might not realize is that Costco doesn't produce its own liquor. Instead, the retailer collaborates with various distilleries and producers to craft exclusive liquors for its stores. Although Costco remains tight-lipped about its partners for Kirkland brand products, some investigative enthusiasts have identified several companies responsible for creating some of Costco's most popular alcoholic beverages.

If you enjoy Kirkland Signature scotch, you may be intrigued to learn that Alexander Murray is the company behind Costco's scotch whiskies. Founded by a Scotsman in California, this company sources its whiskies from distilleries in Scotland. Are you a fan of Kirkland Signature XO Cognac? That is produced by the esteemed French company Peyrat-Associés & CIE. Sazerac is the name behind Costco's Kirkland spiced rum. While the producers of some Kirkland liquors, such as the French vodka and London Dry gin, remain unknown, it's reasonable to assume they are also crafted by reputable companies known for their high-quality products.

The markup on Costco liquor is significantly less than the industry average

Whether you're looking for Kirkland brand spirits or well-known alcohol labels, you're likely to discover better prices at Costco compared to your neighborhood liquor store or other grocery chains. As you explore the alcohol sections of this warehouse retailer, you'll quickly see that Costco's liquor prices are significantly lower than those at competing stores. So, what accounts for the affordability of Costco's liquor? It all boils down to markup.

Markup refers to the difference between the cost a company incurs for a product and the price at which it sells that product. Typically, the markup on alcohol ranges from 25% to 45%. A key aspect of Costco's business strategy is maintaining low markups, which is why it only increases its prices by 10% to 14%. The company achieves this by purchasing products in bulk and sourcing directly from manufacturers, eliminating the need for middlemen or distributors who would otherwise inflate costs. Additionally, the membership fees that Costco collects help to compensate for some of the profits it sacrifices by keeping its markup percentages low.

Codes on the price tags can tell you if the liquor has been marked down

Unlike many other grocery stores, most Costco locations do not feature sale or clearance sections. Additionally, there are no colored tags or signs to indicate whether a bottle of alcohol (or any other product) has been discounted. This can make it challenging to determine if you're getting a good deal or paying full price. However, if you know how to interpret the codes on the price tags, you can discover some fantastic bargains — and perhaps even find one of the best value liquors available at Costco.

Next time you visit Costco, pay attention to the last digit in the prices. Many prices will likely end in 99 cents, which signifies that the product is being sold at its standard price. However, keep an eye out for price tags that end in .97, as these indicate items that have been discounted, typically because they are being cleared out. Prices ending in .00 and .88 can also suggest a markdown, although these numbers are often associated with clothing or returned items.

An asterisk on the price tag means the liquor is being cleared out for good

When shopping for liquor at Costco, keep an eye out for price tags featuring an asterisk in the upper right corner. Some savvy shoppers refer to this as the "death star." This asterisk indicates that the product is available for a limited time, often because it’s being cleared out and may not return. If you spot an asterisk on a favorite alcohol, it’s wise to grab as many bottles as you can.

However, the "death star" doesn’t always spell trouble. As one Costco employee shared on Reddit, "The asterisk signifies that the item number is pending deletion in the system. It could mean the product is simply changing packaging or item numbers and will return, or it might be seasonal and come back later. It’s not always a permanent farewell." Another employee added, "The asterisk just indicates that it won’t be returning in its current form... In about 90% of cases, it’s due to a packaging change."

Sometimes you can find rare bottles of liquor at Costco

Costco consistently stocks essential liquors, including its Kirkland Signature vodkas, gin, and tequilas. Additionally, the retailer frequently features well-known brands such as Kahlúa coffee liqueur, Bacardi rum, and Jack Daniel's Tennessee Whiskey. If you take the time to explore the aisles, you might stumble upon some unique and hard-to-find spirits. Even better, these rare bottles could be available at fantastic prices compared to other retailers.

One remarkable bargain that shoppers have reported is a rare bourbon originally priced at $150, which was found for just $60 at Costco. Some members have recently discovered bottles of Blanton's single-barrel bourbon whiskey at their local stores. Other exceptional liquors spotted at Costco include Hibiki 21-year Japanese whiskey, Van Winkle 12-year Special Reserve bourbon, and Porfidio "The Maximus" Añejo Extra tequila. Costco is continually introducing new liquors (more on that later), so it’s wise to stay vigilant for these unique treasures. While they may not always be inexpensive, they are sure to impress in terms of quality and flavor.

You don't need a Costco membership to buy alcohol in some states

A significant portion of Costco's business model relies on its membership program. A standard membership is priced at $60 annually, granting members access to all warehouse products, the food court, and Costco gas stations. Non-members, however, are generally unable to shop for deals or purchase a hot dog at the food court, although there are a few exceptions, such as eye exams, prescriptions, and alcohol in certain states.

The ability for non-members to purchase alcohol at Costco in some states is a result of state liquor regulations. In specific states, it is prohibited for membership clubs to limit alcohol sales to the general public. There are 14 states where non-members can buy liquor at Costco, including Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Indiana, Kentucky, Massachusetts, Michigan, Minnesota, New York, Texas, and Vermont. If you find yourself in one of these states, you can simply inform the Costco employee checking cards at the entrance that you are there to buy alcohol, and they should allow you entry. However, groceries and hot dogs remain off-limits.

You might be able to have your liquor delivered

One of the most challenging aspects of purchasing liquor at Costco is transporting your purchases home. This can be particularly difficult if you're preparing for a party or replenishing your entire liquor cabinet. If you don’t have a vehicle, it may seem nearly impossible. However, there might be a solution. Costco offers alcohol delivery to your home in select states. Even better, in those states, you can enjoy same-day alcohol delivery through Instacart.

If you reside in California, Connecticut, Florida, Illinois, Kentucky, Massachusetts, Minnesota, Missouri, North Carolina, Ohio, Oregon, Texas, Virginia, Washington, or Washington, D.C., you can have Costco alcohol delivered right to your doorstep. Keep in mind that you will need to present a valid ID to receive the delivery. Additionally, Instacart does not deliver alcohol to retail businesses, restaurants, or college campuses. They also won’t deliver to intoxicated individuals or leave alcohol unattended at your doorstep. Furthermore, your alcohol order must not exceed 400 pounds.

You can't buy liquor at Costcos in some states

Picture having access to a Costco, yet being unable to grab a bottle of Kirkland French vodka, Irish whiskey, or even a bottle of wine or a six-pack of beer. Unfortunately, this is the reality for Costco members in Pennsylvania and Maryland, where state regulations mandate that alcohol can only be sold through state-operated liquor stores. While supermarkets in Pennsylvania are permitted to sell limited quantities of beer and wine, Costco has not participated in this. In Maryland, supermarkets are prohibited from selling any alcoholic beverages.

These aren't the only states where you might find it difficult to purchase your favorite drinks at Costco. In Utah and Kansas, Costco locations only offer beer, while stores in states like Idaho, Montana, and Tennessee sell wine and beer but do not carry spirits. If you’re fortunate enough to reside in states where Costco can offer a full range of alcoholic beverages, you will likely need a membership to make your purchases. As previously mentioned, only 14 states allow non-members to buy liquor at Costco. If you live in Maine, Rhode Island, West Virginia, or Wyoming, you're out of luck, as there are no Costco locations in those states.

Costco's return policies on liquor vary from state to state

If you're a Costco member, you likely know that the company has a fairly flexible return policy. According to their website, "With few exceptions, Costco has a 100% satisfaction guarantee." If you're dissatisfied with a purchase or experiencing buyer's remorse, you can easily return the item to the store for a full refund. However, this may not apply to liquor, as it depends on state regulations.

Many states enforce a strict no-return policy for alcohol. The rationale behind this is that refunding a purchase of alcohol could be similar to buying from an unlicensed seller. Some states do permit returns, but only if the product is defective or spoiled. For instance, if a bottle of wine is corked, you might be able to return it. Additionally, there are states with no restrictions on returning unopened alcohol, leaving the decision up to the store's discretion. Costco advises checking with your local warehouse to understand the specific return policy for alcohol.

Some Costco liquors are far superior to others

Few private-label products have garnered as much of a devoted following as Costco's Kirkland Signature spirits. Not only are they more affordable than many name-brand options, but they are also produced by reputable companies renowned for crafting high-quality liquor. However, that doesn't guarantee that every Kirkland Signature bottle will impress. Some are simply superior to others.

When it comes to ranking Kirkland liquors, many customers tend to favor Kirkland Signature vodkas, Scotch whiskies, and Irish cream liqueur. On the other hand, bottles like the Kirkland spiced rum and tequilas often receive less favorable reviews. Of course, taste is a personal preference. However, when numerous individuals highlight a product as exceptional or lacking, it’s likely worth considering.

If you're uncertain about a specific spirit, take a look at the popular "Can It Kirkland?" series on TikTok. In this series, members of @neverendingfall conduct taste tests of cocktails made with both Kirkland liquor and brand-name spirits to determine if they can distinguish the Kirkland brand. If they can't tell the difference, it’s deemed "It Can Kirkland." If most can identify the Costco product, it’s labeled "It Can't Kirkland."

Costco is constantly bringing in new liquors, wines, and beer

Costco enjoys turning grocery shopping into a treasure hunt for its customers, and the alcohol section is no different. The store features a limited selection of SKUs and frequently changes its product lineup, keeping shoppers engaged. This means that the bottles you find during one visit might not be available the next time you come in. While it can be disappointing if a favorite item is out of stock, there's always something new to explore in the alcohol aisle, which might lead you to discover a new favorite drink.

Fortunately, many of the Kirkland Signature alcohol staples, such as vodka, gin, and Cognac, usually remain in stock. These popular items are reliable sellers, and Costco is unlikely to alter a successful formula. The new inventory often includes a variety of wines, beers, and ready-to-drink cocktails. Additionally, new spirits, including rare finds, are regularly added as part of Costco's dedication to providing customers with fresh discoveries on each visit. Be sure to watch for unique bottles and limited-time selections.

The liquors at Costco vary depending on region

If you've ever visited a Costco in a different state, you might have noticed that the selection of alcoholic beverages varies from what you find at your local store. This is part of Costco's strategy to tailor its product offerings to the demographics of each location. Chad Sokol, the assistant vice president and general merchandise manager for beverage alcohol at Costco, explained to Market Watch that the company employs regional buyers who curate inventory based on what is likely to resonate with local shoppers.

Additionally, Costco buyers actively seek out local and regional products, some of which may only be available at specific warehouses or within certain states. Examples of these unique offerings could include select bourbons, mezcals, tequilas, wines, and single malt scotches. If you hear about specific bottles appearing in Costco warehouses, it might be a good idea to check with your local store to see if they will be receiving any. Otherwise, you may need to take a road trip to explore different liquor options.

Keep an eye out for Costco liquor gift sets

Looking to explore a range of alcoholic beverages without the commitment of purchasing full bottles? Check out Costco's alcohol sampler sets. The most sought-after options are the holiday advent calendars, typically available in the weeks leading up to December. Past calendars have featured 24 cans of beer, 24 bottles of wine, or 24 bottles of whiskey—one for each day from December 1 to December 24. These holiday sets tend to sell out quickly, so it's best to act fast.

However, the holiday season isn't the only time Costco offers alcohol gift sets. Depending on your location, you might find sampler sets available throughout the year. Some examples include the Kirkland Signature Tour of Scotland set, which includes four different Scotch expressions, the Old Forester Kentucky bourbon tasting set, the High West whiskey variety pack, and the Johnnie Walker Collection. These sets make excellent gifts, but they can also serve as tasting options to help you determine which bottles you’d like to add to your liquor shopping list.