Costco is making waves in the beverage aisle, as a new Kirkland Signature energy drink spotted in stores is already drawing attention from members across the U.S. The product began appearing in stores earlier this month and has been praised for not only its flavor, but also its highly competitive price point. Customers have even gone as far as to take things to social media and online forums to discuss the new drink.
With 200mg of caffeine per 12-ounce can, the drink is comparable to other brands such as Celsius. A 24-pack has been spotted priced around $16.99, which totals out to about 70 cents per can. There are also several different flavors per case, including tropical flavors, peach, and orange, with shoppers taking to social media and online forums to track down the flavors in stores.
Competitor Impact and Market Attention
The launch of these new energy drinks shines a spotlight on Costco’s strategy of offering exclusive and high-quality alternatives to name-brand items. From Kirkland vodka to Kirkland brand household essentials, the retailer is building a reputation for providing high value at a fraction of the cost.
The energy drink not only caught the eye of consumers, but also competitors and industry watchers have taken notice. While Costco is not competing directly with name brands such as Red Bull or Monster on advertising, the company’s sheer member volume and customer reach make the new Kirkland drink an item to watch in the category.
So, What Does This Mean For The Average Consumer?
For shoppers, the new line of energy drinks provides a cheaper option in a very crowded and inflated market. The energy drink business rakes in nearly $85 billion USD annually, and adding an affordable option in one of the nation's most popular stores is a great power move.
As for competitors, this serves as a gentle reminder that even well-established brands and categories are susceptible to disruption when a major retailer decides to bring in a private label option.
