Is there anything different with Costco offering a Kirkland Signature anything after they see that product flying off the shelves? Kirkland signature olive oil, balsamic vinegar, coffee, shirts, shoes, peanut butter. Even newer products like air popped quinoa chips or coconut water. If you see something new in everyone's cart one day, two months later there is a kirkland signature brand.
I think one way it is, at least a little, different is Costco is frequently purchasing those products from the original vendor in bulk and handling the packaging / distribution themselves. As a result, $NameBrand is making money on both the branded and generic versions of ProductX.
One $NameBrand is, the rest are not. So for all companies except that chosen one, this is the same; brand-name products being undercut by (someone else's) no-name.
