Shoppers Furious as Costco Discontinues Fan Favorite Items Due to Rising Costs

By: Beth Moreton | Published: Sep 04, 2024

Costco is the leading wholesale warehouse that lets shoppers buy everyday items for a lot less than other stores. Despite paying membership costs, many people feel these costs are worth it, so they can buy food in bulk cheaper than they would pay at a grocery store.

One of Costco’s big bonuses is that it is home to a lot of household favorites, so when one of these items is discontinued and replaced with another item, customers are left fuming. After a recent change to one particular item, customers want to know why Costco has done this.

Costco Customers Are Loyal

One important thing to note about Costco customers is their loyalty to the brand. Regardless of the reason for wanting to buy things in bulk, such as having a party or simply because it’s cheaper, people will always flock to Costco, hoping to get the best deals.

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The outside of a Costco Wholesale store with a white car parked outside.

Source: Grant Beirute/Unsplash

One set of items that Costco customers have a particular love for are the Kirkland products, which are Costco’s signature products. When one of these is pulled from the shelves, it sends customers into a spin. 

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Kirkland Signature Chocolate Chips

One of Costco customers’ most-loved items is the Kirkland Signature Chocolate chips, so when fans of the brand discovered that they had been discontinued, it’s safe to say that they were far from happy.

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Two bags of Kirkland chocolate chips.

Source: @HaHaGail/X

This news quickly spread, with customers wanting answers from Costco as to why they decided to discontinue the Kirkland Signature Chocolate Chips and replace them with another brand. 

Kirkland Was 'Certified Kosher Parve'

When the news spread to the Costco sub-Reddit, users went straight to the comments to share their disappointment with Costco’s decision, with one saying they preferred the Kirkland Signature Chocolate Chips because they were “certified kosher parve,” as well as being dairy-free with no coconut.

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A red and white package of Kirkland chocolate chips.

Source: @eveninggoose/X

One user said they were able to buy two bags of the chocolate chips before they were discontinued, so they should be able to have them around for a while. A quick look through the rest of the comments will tell you that no one is happy about this change, with some threatening to boycott.

Replacing Kirkland With Nestlé

Things appeared to go from bad to worse for Costco customers, as the warehouse giant decided to replace its Kirkland Signature Chocolate Chips with Nestlé Toll House Semi-Sweet Morsels.

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A packet of Nestlé Toll House Semi-Sweet Morsels. There is an image of a chocolate chip cookie on the front.

Source: @simplychar___/X

Many have made it clear that they do not like the Nestlé product, or at least don’t find it anywhere near as nice as the Kirkland one. However, fans of the Kirkland product might be interested to know that it is still available on the Costco Business Center website at the time of writing.

The Issue With Nestlé

Costco customers aren’t just annoyed that their favorite chocolate chips have been replaced, but they are also annoyed by the previous backlash Nestlé has faced.

The outside of the Nestlé Toll House building.

Source: Wiki.cullin/Wikimedia Commons

Nestlé has previously been found to have sourced its cocoa by using child labor and not paying much money to cocoa farmers, which is how it can get away with offering lower prices. For these reasons and many others, Costco customers do not want their money going to Nestlé. 

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The Rising Cost of Cocoa

Wanting to get to the bottom of Costco’s reasoning, one customer emailed the company, hoping to get an explanation for them discontinuing their favorite product. They were able to get a response.

A person holding some cocoa in their hands. There is more cocoa underneath them.

Source: Pablo Merchán Montes/Unsplash

Within the email, Costco blamed the rising cost of cocoa for the discontinuation of its signature brand of chocolate chips and felt it could get a better deal by paying for the Nestlé chocolate chips. But fans still weren’t happy. 

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Cocoa Costs Have Risen 200%

The price of cocoa hasn’t just risen by a little bit — it has risen by as much as 200% in the last year alone. Companies like Costco can simply no longer afford to keep up with those costs.

A pile of cocoa beans.

Source: Mario Heller/Unsplash

Costco has maintained that the whole point of its Kirkland Signature products is to have “equal or better quality than national brands at a value.” As it could no longer promise to do this, it had to replace its own brand with Nestlé.

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Off the Shelves for 12 Months

Costco has maintained that current prices mean the Kirkland Signature Chocolate Chips will be off their shelves for at least 12 months but that they would like them to return one day.

A white bag of Kirkland chocolate chips.

Source: @KERSTEE2002/X

Some customers aren’t too convinced by this, but others hope that Costco is telling the truth. However, as customers are threatening to boycott over this move, switching brands might not work out in the way the company might have hoped.

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‘The Best Chocolate Chip Ever'

As they can be used for multiple purposes, one customer has referred to the Kirkland Signature product as “the best chocolate chip ever,” going on to say that they use them for most things.

A large red bag full of smaller white bags of Kirkland chocolate chips. The red bag is on a wooden floor.

Source: r/Costco/Reddit

They are primarily used for baking, such as when making chocolate fondue, pudding, brownies, cookies and many other baked goods. Customers who enjoy baking are worried about where they will be able to get their chocolate chips from to help their baking needs.

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Customers Are Going on Strike

Some Costco customers have taken the news so badly that they have decided to go on strike. Some refuse to buy anymore chocolate chips from Costco, whereas others are refusing to go to to Costco at all.

A red and white bag of Kirkland chocolate chips.

Source: raptorjesus2/Reddit

Those who are boycotting are calling for others to also boycott the store in the hope that it will get Costco to finally listen and put the Kirland chocolate chips back on the shelves. 

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A Hopeful Return

There is some hope that the Kirkland Signature Chocolate Chips will return one day. However, given the current cost of cocoa and the fact it keeps on rising, this doesn’t look very likely anytime soon. 

A red and white bag of Kirkland chocolate chips. A white sticker on the bag says, “Great for baking and cooking.”

Source: sushim/Reddit

In the meantime, customers are either going to have to settle for the Nestlé products, find another chocolate chip brand that they prefer, or wait with bated breath in the hope that their favorite chocolate chip brand returns to the shelves once again. 

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