In today’s evolving consumer landscape, private label is no longer a second-tier alternative — it’s a proven business strategy. And no companies have demonstrated that more clearly than Trader Joe’s and Costco.
While their models differ in tone and target market, both companies have built multi-billion-dollar private label ecosystems that dominate shelf space and win customer loyalty. Their success reveals a blueprint for growth — and it’s one the alcohol and spirits industry is uniquely positioned to capitalize on.
Private Label Spirits by the Numbers: Trader Joe’s and Costco
Trader Joe’s, with over 80% of its products coming from private label brands, has turned store-brand into a lifestyle. By removing brand middlemen and sourcing directly from manufacturers, Trader Joe’s has built a model where it controls product development, pricing, and quality — all while offering a curated, boutique experience.
Costco’s Kirkland Signature brand, meanwhile, generates over $59 billion annually, with private label making up a growing portion of its product mix. Costco doesn’t just rely on third-party brands for its premium offerings — it often partners directly with top-tier producers, offering quality equivalent (and sometimes superior) to national brands at a much lower price.
The takeaway? Both companies are using private label to expand margins, differentiate themselves, and build customer loyalty. They’re doing so by betting on control, consistency, and cutting out the layers of markup that come with outside branding.
Translating That Success to Alcohol
The question then becomes: what happens when this model is applied to spirits? The answer: we’ve already seen it — and it works.
1. Costco’s Kirkland Spirits Line:
Costco’s Kirkland Signature Vodka (frequently rumored to be sourced from the same distillery that produces Grey Goose) has become a cult favorite. Their tequila, bourbon, and scotch programs — sourced from respected distilleries in Jalisco and Scotland — deliver premium taste without premium pricing.
Because Costco owns the brand, they’re able to offer:
- Higher margins per unit
- Tighter control of pricing strategy
- Faster supply chain decisions
- Loyalty around the Kirkland name, not the distiller
It’s private label with premium positioning — and it proves that consumers care about taste and trust more than branding when value is clear.
2. Trader Joe’s House Spirits:
Trader Joe’s keeps its producer partnerships quiet, but spirits like their bourbon, gin, and rum are consistently well-reviewed. In many cases, they’re made by well-known contract distillers under NDA — allowing Trader Joe’s to offer exclusivity without the burden of distilling in-house.
This gives them:
- Differentiated SKUs
- Flexibility to rotate and test new offerings
- Shelf-space control without paying for name brands
What’s important to note is that Trader Joe’s isn’t a distillery. They’re a brand builder, and they’ve leaned on white label and co-packing partners to execute their vision without overhead. The result is a robust, well-loved spirits selection built entirely on private partnerships.
How Private Labeling Your Spirits Brand Can Boost Business
Trader Joe’s and Costco don’t distill their own alcohol. But they do own the brand, the pricing, and the customer relationship — and in today’s market, that’s where the real power lies.
This is the exact opportunity white label alcohol programs offer to:
- Retail chains
- Hospitality groups
- Wholesalers
- Investors and entrepreneurs looking to build niche alcohol brands
By working with the right production partner, you can bypass the slow, expensive process of building a distillery and instead launch or expand your own line of spirits — tailored to your customer, your region, and your business goals.
And just like Costco or Trader Joe’s, you’ll be able to:
- Capture higher profit margins
- Offer a unique, loyalty-building product
- Make faster decisions on pricing, packaging, and positioning
- Control your product’s lifecycle from concept to shelf
Final Takeaways on Launching a Private Label Spirits Brand
The rise of private label at Trader Joe’s and Costco is more than a trend — it’s a shift in how businesses think about ownership, differentiation, and profit in the retail space. And as the alcohol industry opens up to new players and new models, the door is wide open for B2B operators to step in.
Whether you’re a distributor, co-packer, or buyer — the opportunity to build a private label spirits program that mimics the success of these giants is real, scalable, and closer than you think.
Ready to explore what your own private label spirits line could look like?
We’ve helped businesses across the country craft, bottle, and launch high-quality spirits under their own brand — without the heavy lift of starting from scratch. If you’re interested in what a white label program could do for your bottom line, let’s talk.