The Brand Behind Costco's Kirkland Milk Chocolate

Costco is a great place to get deals on giant boxes of cereal and pies that feed 14 people, but what really makes their customers super loyal is their own line of private-label products. The Kirkland Signature line was launched in 1995 with only 30 products, but these days there are more than 300 different in-house items, according to Motley Fool, many of which are cult favorites like olive oil, toilet paper, and of course their iconic hot dog. Kirkland products are produced in two different ways: Some are made in-house at Costco-owned production facilities, like their hot dogs, and some are made by brand-name companies and packaged as Kirkland products. Sometimes the products are labeled with the company's name right on the package, but a lot of others, like their milk chocolate, aren't as obvious. If you're a fan of Costco's milk chocolate treats, like their macadamia clusters (pictured above), you might not know that you're actually eating Blommer Chocolate Company products.

The American confectionery company was name-checked in an old issue of the Costco Connection newsletter, so it's probably safe to assume that anything with the Kirkland name that's made of milk chocolate probably came from Blommer.

Costco customers know that Kirkland Signature products are high quality with lower prices than name brands and savvy shoppers know which name brands are behind a lot of the private-label items. Kirkland batteries, for example, are made by Duracell, and Humboldt Creamery makes the supermarket's Super Premium Vanilla Ice Cream.

When it comes to chocolate, Costco struck up a deal with Blommer Chocolate at least ten years ago, according to a 2013 issue of Costco Connection. The article noted that Costco chose the Chicago-based chocolatier because, in addition to producing high-quality chocolate, their company values are aligned. "As Costco strives to be responsible in its sourcing of food products, [Costco] decided to develop a partnership with the farming communities, Blommer and an international supply chain organization to develop a comprehensive sustainability program and make a difference," the newsletter stated.

Thanks to the partnership between the two companies, the tasty chocolate that's made into Kirkland's chocolate chips, dipped fruit, and nuts, is sourced from a select network of more than 5,000 cocoa bean farmers in Africa's Ivory Coast who are paid fair prices for their beans. In return, Blommer gets consistent, high-quality beans that are sustainable and traceable — a boon in an industry that is plagued with unethical child labor.

The whole premise of private-label products is to keep the costs of in-house products low while also controlling the quality. For some products, like their $1.50 hot dogs, as Costco got bigger it became harder for them to control costs, so they moved to producing them in their own facilities. Chocolate, however, would be a lot trickier to self-produce because cocoa beans can only be grown within 20 degrees of the equator. Plus, there are many layers of legality, politics, and environmental factors that make sourcing difficult. Additionally, cocoa bean supplies are dwindling, making it harder than ever to get the raw ingredients needed to make chocolate, so it's a lot easier for Costco to work in partnership with Blommer. Blommer just so happens to be the largest cocoa processor in North America and also has major buying power and established networks in place.

So next time you polish off a 3-pound container of Kirkland chocolate-covered almonds, don't feel bad unless you have an upcoming dentist appointment. You can rest easy knowing that your chocolate is ethically sourced, high quality, and made by a reputable American company.