Why Food Brands Overlook Costco—and How to Win Big Anyway

 

1. Why Costco Isn’t Like Other Retailers

In the latest YouTube video, Tim Forrest dives into Costco’s unique business model—and how it drives massive volume while delivering what feels like unbeatable value. Unlike traditional retailers, Costco leverages membership pricing, sharp cost control, and a curated food selection that creates constant consumer demand.

2. Membership as a Competitive Moat

Costco’s subscription model isn’t just for profit—it locks in customer loyalty and attracts high-intent shoppers. Tim explains that food brands who land inside Costco aren’t just selling product, they’re participating in a platform that rewards repeat, high-value buying. If you can earn your spot, your product will be front-and-center among loyal consumers.

3. Limited Assortment = High Visibility

Costco stocks a narrow, rotating range of SKUs—that scarcity actually boosts exposure. Tim points out that rather than drowning in choices, customers are drawn to featured items. The lesson? Your brand needs standout quality and packaging, because in a lean case pack environment, you get fewer chances—but far more attention.

4. Cost Discipline at Every Turn

From bulk sourcing to minimal shelving, Costco runs on razor-thin margins. Tim recommends food brands audit their own supply chains: can you adjust packaging, logistics, or sourcing to fit Costco’s efficiency-first world? Brands that optimize costs—and still deliver premium taste—stand out.

5. Capitalizing on Seasonal & Host Items

Costco’s food strategy thrives on rotating items—seasonal launches, impulse buys, holiday treats. Tim notes that brands who tier their offerings and align to key seasons (e.g., grilling season, snack staples) can maximize distribution slots and peak visibility.

6. Real-World Examples & Action Steps

Tim discusses beverage brands that scored trial runs during holidays and snack brands that leveraged small-store skus to test broader rollouts.
Action plan for brands:

  • Tailor packaging to bulk case sizes

  • Pitch seasonal or limited-run exclusives

  • Use logistics partners who can commit to Costco’s shipment cadence


Linking It Back to U.S. Market Entry

Building on our previous post, “7 Steps I Use to Guarantee a Seamless U.S. Entry for International Food Brands,” this article shifts focus to what happens after you cross the border—how to leverage big-box partnerships for scale and visibility .


Final Thoughts & Next Steps

Costco isn’t just a retailer—it’s a launchpad. Getting inside requires disciplined operations, wholesale-ready strategy, and a brand that can shine in bulk. But once you’re in, consumer loyalty and explosive volume can follow.

📅 Ready to package your brand for Costco—and beyond? Schedule an appointment with Tim Forrest at www.timforrestmarkets.com. If you’re working on an innovative food product or scaling brand, let’s build your wholesale strategy for maximum impact.

Who is Tim“Hi I’m Tim, and I love the food business! I’ve been helping large and small companies and entrepreneurs achieve success for decades. My consulting projects have contributed to major successes for my clients, including many with 100%+ year-over-year growth rates. I enjoy sharing my expertise, and hope you find these blog posts enlightening. Please reach out to me with any questions or comments.”

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