What Company Makes Costco's Kirkland Brand Scotch?

Alexander Murray makes scotch for a number of stores

Alexander Murray is a California-based company founded in 2004 by a group of Scottish immigrants. In addition to supplying Costco, the company distributes its Scotch whisky to various retailers, including Trader Joe's and Total Wine & More. Alexander Murray offers all five of its Scotch varieties at Costco, ranging from 3-year-old to 20-year-old blends, along with an Islay Single Malt Scotch whisky that has no age statement. Interestingly, while the company produces and bottles the Scotch, it outsources the distillation process to a partner distillery. This arrangement is likely due to the high demand from these retailers. For those who are less concerned about premium single-barrel Scotches, Alexander Murray manages to keep prices competitive by blending whiskies from multiple distilleries to meet substantial inventory needs.

The decision for Costco to adopt a single private label, Kirkland, dates back to 1995. Prior to this, Costco had numerous private brands, but the creation of Kirkland aimed to streamline the company's image and reduce the costs associated with developing labels for each individual brand. As Christopher Durham, president of the Retail Brands Institute, stated to CNN, "Kirkland is a proxy brand for Costco. It really means Costco."

Instead of catering to a diverse range of shoppers with multiple brands, Costco utilizes Kirkland to target all shopping demographics. The unified brand name allows customers to recognize a consistent product and image. Over time, shoppers began to associate Kirkland with high-quality, affordable products, which in turn reflected positively on Costco. Additionally, using its own branding is cost-effective, as it minimizes the need for excessive spending on packaging.

How does it taste?

Although its origins remain somewhat enigmatic, Kirkland brand scotch has gained immense popularity. According to Forbes, Costco sells more Scotch whisky than any other retailer in North America. The general opinion among consumers is that most of the offerings are excellent value, particularly given their price. On Reddit, scotch reviewer mackenzieob95 rated Kirkland's Blended Scotch Whisky at 78/100, highlighting its delightful aroma and enjoyable flavor. Professional wine and spirits critic Joseph V. Micallef noted in Forbes that the Single Malt Scotch Whisky features appealing caramel and smoky undertones, stating that "Kirkland Signature Scotch whiskies consistently offer some of the best value in Scotch whisky available in North America." Across various online platforms, enthusiasts commend the rich flavors and sweet hints of vanilla and caramel found in the different bottles.

Prices can vary by location, but in the United States, a bottle of Kirkland Signature Blended Scotch Whisky is priced just above $50. While it's possible to find scotch for less, many reviewers concur that you won't discover any of comparable quality at that price point. This blend of quality and affordability is the key to the brand's success, attracting savvy shoppers and benefiting the retailer in return. Costco's private label, Kirkland, enables it to offer products at lower prices, while suppliers like Alexander Murray ensure that items such as Scotch whisky are worth the investment.