Why Costco Discontinued Its Kirkland Chocolate Chips

The discontinuation of Kirkland's brand chocolate chips came at a time when global cocoa prices had skyrocketed. The store issued a notice in the summer of 2024 that it would stop carrying the store-brand chocolate chips because of those rising costs. In a brand statement posted to Reddit, an alleged Costco representative wrote that cocoa prices had risen over 200% for them and other brands. This made it impossible to keep the Kirkland chocolate chips on the shelf at a price beneath Nestle's national brand. The statement said that the price of cocoa would require Costco to raise the price of chocolate chips to $16.99. This is higher than the Nestle brand, priced at $15.48, so until cocoa prices drop, the Kirkland Signature chocolate chips will be off the market. 

However, another Reddit user wrote that this was not the first time Costco had removed the popular chips from the shelf. According to the commenter, the store returned the product after public outcrying about the removal. Costco did say that this removal was for 12 months; the brand is so popular that it will likely return when the market price for cocoa drops.

The rising costs of cocoa affect the Kirkland signature chocolate chips because they are sourced from the heart of the industry. Over 2/3 of the world's cocoa comes from West Africa. The effects of climate change and logistics issues worldwide since the pandemic have greatly impacted the prices of goods around the world, including cocoa and chocolate. The Kirkland brand is further affected because it is sourced in partnership with Blommer Chocolate Company, which operates in West Africa. Costco and Blommer have created a sustainable and humane cocoa business that supports farmers, local businesses, and the environment. Costco is steering its customers to the only brand that will be on its shelves, Nestle chocolate chips.

Kirkland brand lovers claim that Kirkland chips have a smoother texture, melt faster, and are ideal for people with food allergies. The blue bag of chips is dairy-free, and the milk chocolate brand (the red bag) is soy-free. There are reports that Costco Canada is bringing the Kirkland chocolate chips back to stores at the end of 2024 and the beginning of 2025. Let's hope a return of the discontinued chips is coming in for U.S. locations.