The Costco Connection

BUYINGSMART

Freelance writer Sherrie Newman fills this month’s consumer reporter slot with this behind-the-scenes look at a Costco program. Email questions about this article to buyingsmart@ costco.com.

By Sherrie Newman

EACH YEAR, THE venerable Wine Enthusiast magazine recognizes top global companies for outstanding achievements in the world of wine—an honor that carries huge prestige in the wine industry. In 2015, Costco was named Retailer of the Year, highlighting its remarkable reputation for offering members fine global wines at unbelievable prices. In fact, the coveted award specifically called out Costco’s premium Kirkland Signature™ wine portfolio as an unbeatable value.

I’ve always been a huge fan of the Kirkland Signature wines, which Costco has been selling since 2003. The growth of the program has garnered recognition not only in the wine industry, but also among wine aficionados and appreciative Costco members.

Managing quality

Curious about how Costco develops Kirkland Signature wines, I spoke with Annette Alvarez-Peters, who oversees the program for Costco. A highly respected wine industry leader—she’s a Certified Wine Educator (CWE) with the Society of Wine Educators, and has Diploma-level status with the Wine & Spirit Education Trust—Alvarez-Peters leads an experienced and sophisticated buying team.

“Our goal for the wine department is to provide our members with excellent value on a variety of top wines from around the world, from big production brands to small boutique

The makıng of Costco’s popular Kirkland Signature wines

A special label offerings, such as our Kirkland Signature ‘Signature Series’ wines,” she explains. “When it comes to developing our own wines, we love being able to offer high-end products
from specific appellations at extremely com-
petitive prices.”
For example, Costco sources wine from
smaller appellations such as the Stags Leap
District in Napa Valley, California, where the
Kirkland Signature “Signature Series” Stags
Leap District Cabernet Sauvignon comes
from. France’s Rhône Valley is where the
Kirkland Signature Châteaneuf-du-Pape
originates. “We provide these to our members
so they can enjoy something new from a
unique wine region,” says Alvarez-Peters.

To determine which types of wine to pursue, Costco’s wine-buying team keeps an eye on hot trends in the industry, explains Matt Mize, Costco wine buyer.

“For instance, the Marlborough region of
New Zealand is a hot appellation, and our
Kirkland Signature ‘Ti Point’ Sauvignon Blanc
wines comes from there. Similarly, the Men-
doza region of Argentina is a very popular
appellation, and we source our Kirkland Sig-
nature Malbec there.”
The next step is to work with top growers
and wineries and encourage Costco’s efficien-
cies in production and distribution. The result: