The Company That Produces Costco's Organic Flour

Premium brand flour at Costco prices

Costco's strategy of collaborating with external suppliers has sparked a bit of a treasure hunt for passionate food enthusiasts eager to uncover the sources of various products, such as Costco's Canadian whiskey, Greek yogurt, or even the popular food court hot dogs, which — surprise — are actually made in-house. While this method may seem distinctive, it’s not entirely unique. Other retailers, like Trader Joe's, follow a similar model, leaving it to observant shoppers to figure out which companies produce items like their wine or salad kits.

There are several reasons behind Costco's operational approach, and they are quite clever. This model allows Costco to maintain better quality control over the products it offers, generate savings that can be passed on to customers, and enable shoppers to enjoy name-brand items (often nearly identical to the originals, aside from the branding) at Costco prices. In many cases, the products come from much more upscale, premium manufacturers than one might anticipate — for instance, Starbucks is the roaster for Kirkland brand coffee. When it comes to the organic flour produced by Central Milling under the Kirkland label, the savings can be substantial. If you were to buy a 10-pound bag of organic all-purpose flour directly from the Central Milling website, you’d pay nearly $15. However, at your local Costco, you can purchase two 10-pound bags of nearly the same product for about $16.99.