Secrets Of Costco Liquor You'll Wish You Knew Sooner
Costco shoppers know that the big-box grocery store is a treasure trove of everything from home appliances to pantry staples and fresh produce. One department that has been seeing a significant amount of growth over the past few years is the alcohol section. Forbes reported that Costco likely made between $6.5 and $7 billion in global alcohol sales in 2023 alone. That's not surprising, considering most warehouses have every kind of liquor a tippler could ask for at highly competitive prices. Plus, the chain sells plenty of well-known alcohol brands as well as its own line of Kirkland brand alcohols.
If you're a Costco member, you're probably already aware of the chain's superb alcohol selection. But how much do you really know about buying liquor at Costco? For example, do you know which companies create the Kirkland brand alcohols? What about how to spot the best deals? Just like there are hacks for ordering food at Costco's food court, there are also some tips you should know about buying Costco liquor that can save you money and score you superior products. Read on to discover some secrets of Costco liquor that will up your booze-buying game.
Costco works with well-known distilleries to produce Kirkland Signature alcohol
Some of the cheapest liquors at Costco are the Kirkland Signature brand alcohols. What you may not know about those bottles is Costco doesn't actually make any of its own liquor. Instead, the company works with distilleries and producers to create liquors that are unique to the chain. While Costco is very tight-lipped about which companies it works with to create its Kirkland brand products, sleuths have managed to uncover several of the companies that make some of the most popular Costco alcohols.
If you're a fan of Kirkland Signature scotch, you might be interested to know that the company behind Costco's scotch whiskies is Alexander Murray. The California-based company was founded by a native Scotsman and sources its whiskies from distilleries in Scotland. Love the Kirkland Signature XO Cognac? The esteemed French company Peyrat-Associés & CIE makes that. Sazerac is the company behind Costco's Kirkland spiced rum. While we don't know which companies are behind some Kirkland liquors like the French vodka and London Dry gin, it's pretty safe to assume that they're also produced by companies that are renowned for their quality products.
The markup on Costco liquor is significantly less than the industry average
Peruse the alcohol aisles at Costco and you'll probably notice that the prices are much lower than what you'll find at other stores. Whether it's Kirkland brand liquor or name-brand alcohol, you can probably find better deals at Costco than at your local liquor store or another grocery chain. What makes Costco's liquor so cheap? It all comes down to markup.
Markup is the difference between how much a company pays for a product and how much it sells it for. The standard markup for alcohol is anywhere from 25% to 45%. A big part of Costco's business model is keeping markups low, so it only marks its bottles up 10% to 14%. The company gets away with it by buying its products in bulk and buying directly from producers, so no middleman or distributor is cutting into the costs. Plus, Costco's membership fees help offset some of the profit it loses from keeping 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 warehouses don't have sale or clearance sections. In addition, there are no colored tags or signs that will tell you whether a bottle of booze (or any other product) has been marked down. That can make it tricky to know whether you're getting a good deal or paying full price. However, if you know how to read the codes on the price tags, you can uncover some great deals.
The next time you're at Costco, take note of the last number in the prices. Many prices will likely end with 99 cents. That indicates that the product is being sold at its regular price. However, pay attention to the Costco price tags that end in .97 because those are the items that have been marked down. Usually, this is because the item is being cleared out. Prices that end in .00 and .88 can also indicate that an item has been marked down, although those numbers are often used for clothing or items that have been returned.
An asterisk on the price tag means the liquor is being cleared out for good
Another thing you should look out for when you're shopping for liquor at Costco is price tags with an asterisk in the upper right corner. Also called the "death star" by some savvy shoppers, the Costco price tag asterisk means the product will only be available for a limited time. Usually, this is because it's being cleared out and might not be coming back. If a type of alcohol you love has an asterisk on its price tag, you might want to snatch up as many of those bottles as you can.
The "death star" doesn't always mean doom, though. As one Costco worker stated on Reddit, "The asterisk means the item number is pending delete in the system. It might just mean that item is changing packaging/item numbers and will be back again or it might be gone for the season and will come back. It's not always a 'gone forever type deal.'" Another employee commented, "The asterisk just means it won't be coming back in its current form ... Like 90% of the time, it's a packaging change."
Sometimes you can find rare bottles of liquor at Costco
Costco always has certain staple liquors on the shelves like its Kirkland Signature vodkas, gin, and tequilas. In addition, the chain often carries popular alcohols from outside brands like Kahlúa coffee liqueur, Bacardi rum, and Jack Daniel's Tennessee Whiskey. Take the time to search the shelves though and you may come across some rare liquors. Even better, those hard-to-find bottles could be selling at amazing prices compared to other places.
One incredible deal that shoppers reported finding was a rare $150 bourbon selling for $60 at Costco. According to some Costco members, they recently came across bottles of Blanton's single-barrel bourbon whiskey at their local warehouses. Other rare liquors found at Costco have included Hibiki 21-year Japanese whiskey, Van Winkle 12-year Special Reserve bourbon, and Porfidio "The Maximus" Añejo Extra tequila. Costco is constantly bringing in new liquors (more about that later), so it pays to keep an eye out for rare finds. They may not always be cheap, but they'll almost certainly deliver when it comes to quality and taste.
You don't need a Costco membership to buy alcohol in some states
Much of Costco's business model hinges on its membership program. A basic membership costs $60 per year, and it gives the member access to all of the products in the warehouse, the food court, and Costco gas stations. If you're not a member, you may not be able to shop for deals or even buy a hot dog at the Costco food court, but there are a few things you can get, like eye exams, prescriptions, and alcohol in certain states.
The reason non-members can buy Costco alcohol in some states is due to state liquor laws. In certain states, it's illegal for membership clubs to restrict alcohol sales to the general public. There are 14 states where non-members can buy liquor at Costco. These include Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Indiana, Kentucky, Massachusetts, Michigan, Minnesota, New York, Texas, and Vermont. If you happen to be in those states, you can simply tell the Costco card-checker at the door that you're there to buy alcohol, and they should let you in. Groceries and hot dogs are still off-limits, though.
You might be able to have your liquor delivered
One of the toughest things about shopping for liquor at Costco is dragging your haul home with you. This can be especially challenging if you're shopping for a party or stocking up an entire liquor cabinet. If you don't have a car, you may as well forget about it. There might be a solution, though. Costco can deliver alcohol to your house if you live in certain states. Even better, in those states, you can get same-day alcohol delivery courtesy of Instacart.
If you live in California, Connecticut, Florida, Illinois, Kentucky, Massachusetts, Minnesota, Missouri, North Carolina, Ohio, Oregon, Texas, Virginia, Washington, and Washington, D.C., you can have alcohol from Costco delivered to your door. It should be noted, though, that you'll have to show a valid ID to accept the delivery. You should also know that Instacart won't deliver alcohol to retail businesses, restaurants, or college campuses. It also won't drop off alcohol to intoxicated recipients or leave alcohol on your doorstep unattended. In addition, your alcohol order must weigh less than 400 pounds.
You can't buy liquor at Costcos in some states
Imagine having access to a Costco, but not being able to pick up a bottle of Kirkland French vodka, Irish whisky, or even a bottle of wine or a six-pack of beer. Sadly, that's the case for Costco members in Pennsylvania and Maryland where state laws decree that alcohol can only be sold by state-run liquor stores. Technically, supermarkets in Pennsylvania can sell limited amounts of beer and wine, but Costco hasn't gotten on board. In Maryland, supermarkets can't sell any type of alcoholic beverages.
Those aren't the only states where you might not be able to pick up your favorite bottles at Costco. Utah and Kansas Costcos sell beer only, while stores in other states like Idaho, Montana, and Tennessee sell wine and beer but no spirits. If you're lucky enough to live in states where Costco can sell the full gamut of alcoholic beverages, you'll likely need a membership to buy your booze. As we mentioned above, there are only 14 states where non-members can buy liquor at Costco. If you live in Maine, Rhode Island, West Virginia, or Wyoming, you're out of luck because there are no Costcos in those states.
Costco's return policies on liquor vary from state to state
If you're a Costco member, you're probably already aware that the company has a pretty lenient return policy. As stated on its website, "With few exceptions, Costco has a 100% satisfaction guarantee." If you're not happy with an item or feeling buyer's remorse, you can simply bring the item back to the store and Costco will refund your money. However, that may not be the case with liquor. Again, it comes down to state laws.
Many states have a strict no-return policy on alcohol. In some cases, the reasoning is that refunding a buyer for alcohol would be akin to buying alcohol from someone who doesn't have a proper license to sell it. Some states will allow returns, but only if the product is defective or spoiled in some way. For example, if a bottle of wine is corked, you may be able to return it. Then, there are states where there are no restrictions on returning unopened alcohol. In those cases, it's up to the discretion of the store. Costco recommends checking with your local warehouse to see what the return policy is on alcohol.
Some Costco liquors are far superior to others
Few private-label products have gained more of a cult following than Costco's Kirkland Signature spirits. Not only are they cheaper than most name-brand products, but they're also made by established companies known for producing top-quality liquor. However, that doesn't mean every Kirkland Signature bottle you pick up is going to be a winner. Some are simply better than others.
When it comes to ranking Kirland liquors, many customers place Kirkland Signature vodkas, Scotch whiskies, and Irish cream liqueur at the top of the list. Bottles that don't get great reviews include the Kirkland spiced rum and the tequilas. Of course, taste is subjective. But when multiple people call out a product for being superb or sub-par, it's probably worth taking into consideration.
If you're not sure about a particular spirit, check out the viral "Can It Kirkland?" series on TikTok. In it, band members from @neverendingfall taste test cocktails made with Kirkland liquor and brand-name liquor to see if they can tell which one is the Kirkland brand. If they can't tell the difference, then "It Can Kirkland." If most can tell which one is the Costco product, "It Can't Kirkland."
Costco is constantly bringing in new liquors, wines, and beer
Costco likes to send its shoppers on grocery treasure hunts, and the alcohol section is no exception. The chain offers limited SKUs and is constantly rotating products in and out, which keeps buyers on their toes. What that means is the bottles you find on one trip may not be there the next time you visit. On the one hand, it can be frustrating if a product you love is no longer available. On the other hand, there's always something new to check out in the alcohol aisle, so you could just find a new favorite liquor.
The good news is many of the Kirkland Signature staple alcohols like the vodkas, gin, and Cognac typically don't get rotated out. After all, they're big sellers, and Costco isn't about to mess with something that's working well. New inventory often includes wines, beers, and ready-to-drink cocktails. New spirits, including hard-to-find alcohols, also make it into the mix as part of Costco's commitment to offering customers something new to discover on every visit. Be sure to keep an eye out for interesting bottles and limited-time offerings.
The liquors at Costco vary depending on region
If you've ever shopped at a Costco in another state, you may have noticed that the alcohol selection is slightly different from your home store. That's because part of Costco's strategy is to match products with each store's demographics. Chad Sokol, assistant vice president and general merchandise manager for beverage alcohol at Costco, told Market Watch that the company has regional buyers who stock stores with products that will likely appeal to those particular shoppers.
Costco buyers also like to seek out local and regional products, some of which may only be offered in one warehouse or across one state. Some examples of this could include certain bourbons, mezcals, tequilas, wines, and single malt scotches. If you catch wind of particular bottles making appearances at Costco warehouses, it might be worth your time to inquire at your local store to see if it will be getting any in. Otherwise, you may need to make a road trip to stock up on different types of liquor.
Keep an eye out for Costco liquor gift sets
Want to try a variety of alcohols, but don't want to commit to buying full bottles? Keep an eye out for Costco's alcohol sampler sets. The most popular sets are the holiday advent calendars that are often sold in the lead-up to December. Previous advent calendars have included 24 cans of beer, 24 bottles of wine, or 24 bottles of whiskey — one for every day from December 1 to December 24. The holiday sets tend to sell out fast, so you need to get on them fast.
The holidays aren't the only time of year Costco sells alcohol gift sets. Depending on your store, you may be able to find sampler sets year-round. Examples include the Kirkland Signature Tour of Scotland set with four different Scotch expressions, the Old Forester Kentucky bourbon tasting set, the High West whiskey variety pack, and the Johnnie Walker Collection. The sets make for great gifts, although you can also use them as tasters to help you decide which bottles you want to add to your liquor shopping list.