Why Costco Butter Is Really That Cheap (And That Good)

Fresh coffee, fried eggs, and golden-brown pancakes; this is a popular scene from the American breakfast table. But none of it can start before dishing out the creamy yellow butter, or in this case, Costco's Kirkland Signature Grass-Fed Butter. While Costco has had some big pricing changes lately, customers can still rely on this fan-favorite — and inexpensive — butter. For comparison, Kerrygold, a classic butter brand known for it's taste and quality, generally sells for around $17 whereas Costco's grass-fed butter is usually priced around $12 for the same amount. This makes it an appealing choice for those who still want quality but prioritize more affordable pricing. However, price is not the only thing throwing off the competition; it's the taste, why is it so good?

While Costco's butter might not have the same mystique as, say, KFC's secret recipe, there's still a story behind it. Costco's approach to high-quality, affordable dairy offers consumers budget-friendly prices for premium quality products, and you might find yourself wondering how the retailer manages to keep its prices so low while maintaining this quality. Plus, what exactly goes into making their delicious butter?

According to Costco, the secret to their butter comes from where it's made: Westland Milk in New Zealand. New Zealand's mild climate lets cows graze on grass all year, producing milk with a deeper rich flavor. The Kirkland Signature Grass-Fed butter also gets its rich taste from a special way it's made. Instead of rushing the process, it is slowly churned, allowing for additional creaminess. 

The Kirkland Signature label also carries a certain weight because customers know that Costco doesn't slap its name on just anything. They carefully choose their suppliers to make sure customers are getting a high-quality products. Plus, suppliers also have to pass Costco audits for food safety, adding an additional safety measure for consumers at a time when food recalls seem to be affecting everything. The result is a delicious 95% grass-fed cream that rivals much-loved Kerrygold. In fact, Costco's butter has built quite a loyal fanbase, with customers saying it's just as good — if not better — than high-end brands. 

Indeed, in blind taste tests, Costco's grass-fed Kirkland butter holds its own against Kerrygold, matching it in flavor and texture. The secret is its smooth, creamy consistency with just the right hint of tang. Even food reviewers are giving it love. With Allrecipes calling Costco's butter "rich" and "clean" — even saying it works just as well whether you're baking, cooking, or simply slathering it on toast.

Another big consideration is price. It's worth mentioning that Costco sources from a variety of farms and suppliers around the world. This allows Costco to wield better negotiating power, thereby dodging overall price jumps that can occur if one geographic area or supplier has issues. Plus, Costco's way of doing business – selling in bulk and keeping markups low — means you can get quality at a price that is hard to beat.

Costco's butter costs around 25% less per pound than Kerrygold — with that price gap growing when you buy in bulk. While a four pound package of Kirkland Signature Unsalted Butter averages $3.49 per pound, a two pound package of Kerrygold's Unsalted averages $7.25. That's a significant difference in price and quantity. You can find Kirkland Signature items, and butter, at your local Costco warehouse. However, remember to avoid buying Costco's Kirkland Signature brand on Amazon, or you could risk paying a LOT more for your goods.