Kirkland, the private label brand for cosco, is being manufactured by the exact brands that are placing their product in cosco. Brands agree to create as quality of a product by jim senegal and cosco standards and undercut their own product's price because they need it to be 15 to 20 % cheaper. Why would brands do this? Well, one i think it's because brands actually can make good money becoming a manufacturer for cosco and effectively white labelling their product. A marketing expense is a very large expense on a per productor per unit basis. It makes just selling the white labelled product to cosco actually a profitable endeavor.