Kirkland vs. Coca-Cola ... Is private label winning?

by Chace Binnie

At first glance, it looks Kirkland is winning, but I wanted to dig deeper into this.

Revenue is only one metric, so I thought: What if they are both winning at different games?

Where Kirkland is winning:

• They keep the product line simple
• Every product gets shelf space in Costco
• They don’t advertise... they let Costco’s reputation do the work
• It’s efficient to run, with strong margins and low overhead
• Shoppers trust it because it’s consistent, high quality, and good value

Why Coca-Cola is still doing well:

• You can buy it literally everywhere... restaurants, stores, stadiums
• The brand is iconic and instantly recognizable
• They dominate the beverage aisle with multiple popular products
• They’re constantly launching new flavors and formats to stay fresh
• Their marketing connects emotionally... it's more than a drink, it’s a feeling

So which one is winning? Again, it depends on how you look at it.

Jean-Marc François gave his take on CPG's current struggle against private label:
“They’re chasing growth through fragmentation,” Jean-Marc said.

“...in the process, they’re diluting their brand equity.”

Credit to Jean-Marc for this chart of the Top 10 global CPG brands.