Why Is Costco Discontinuing Its Customer-Favorite Chocolate Chips?
A Costco manager cited the rising costs of cocoa.
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Earlier this summer, Costco customers were dismayed to learn that Kirkland Signature chocolate chips are being discontinued. The chain is replacing both the Kirkland Signature Semi-Sweet Chocolate Chips and the Kirkland Signature Semi-Sweet 51% Chocolate Chips – which many customers call “the red bag” and “the blue bag” – with Nestlé Toll House products.
Customers have been leaving feedback on Costco’s website in an effort to reverse the company’s decision. One chocolate chip fan received a detailed response from a warehouse assistant general manager explaining why the chips are going away. The customer posted the response on Reddit.
“Cocoa costs have risen near 200% compared to last year and this is impacting all items in this category, including branded items such as Nestle Toll House,” the Costco manager said. “Members can expect to see the sell prices on these items rise in all retail as we approach Q3/Q4 and new contracts on Cocoa become effective.”
According to the statement, Costco promises that its Kirkland Signature products offer equal or better value compared to national brands. The warehouse manager says that rising cocoa prices mean the chain is no longer able to do that with its chocolate chips; Costco would need to raise the price to an estimated $16.99 per bag, while Nestlé could sell theirs for $15.48 per bag.
For now, Costco’s plan is to discontinue Kirkland chocolate chips for at least one year, then offer them again in the future if the market cooperates.
While several Reddit commenters applaud Costco’s transparency in the statement, they’re distraught about the disappearance of their favorite chocolate chips. Many point out that Kirkland chocolate chips are dairy-free, unlike the Nestle chips replacing them.
“Just my lactose intolerant luck to see this at Costco yesterday while hoping to purchase another blue bag,” one commenter says.
Others argue that Kirkland chips are the best quality available, and they’re loyal to the product. They say they would rather pay the price difference than switch to a competing brand.
“I and, I suspect many, customers would pay $2.00 more to continue to enjoy the KS product,” a commenter says.
So, what is a Kirkland chocolate chip fan to do? According to a few Reddit commenters, your best bet is to buy a few more bags if you still can, then stash them in the freezer. Sadly, there’s no guarantee you’ll be able to find more.
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