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How to Sell to Costco

Quick answer

How to sell to Costco starts at the door Costco itself points to. Prospective food vendors contact the Costco regional division office for their area, and small and diverse businesses can also fill in the intake form of Costco's Supplier Inclusion Program, which doesn't guarantee a deal. Before you pitch, get the product retail-ready: made in a licensed facility, registered with FDA unless exempt, and packed with a complete FDA label, Nutrition Facts included. Nutrition Label Studio is not affiliated with Costco.

How to sell to Costco: a pallet of club-size snack boxes with a complete back label and Nutrition Facts panel ready for a buyer meeting
A buyer sees the product, the price and the label
01

Where Costco tells vendors to start

Costco's Vendor Inquiries page splits prospective vendors in two. For non-food or sundry items, you contact the corporate office. For food and sundry items, you contact the appropriate division office. In the US those regions are:

  • Northwest
  • Northern California
  • Los Angeles
  • San Diego
  • Texas
  • Midwest
  • Northeast
  • Southeast
Costco: Vendor InquiriesProspective vendors of food and sundry items can contact the appropriate division office

The page lists the address and phone number of each office. Pick the region where you make the product and where your first customers are, and send a short, complete pitch: what the product is, the case pack, your price, your capacity and your food safety credentials.

02

Costco's Supplier Inclusion Program for small brands

Costco says its buying teams often look for small businesses and diverse suppliers to bring unique items into its warehouses, as part of the "treasure hunt" its members know. Those items have appeared in warehouses in US regions and online at Costco.com.

  • You start with an intake form on Costco's Supplier Inclusion page, which checks your eligibility for the program
  • The form opens by asking whether your company is owned and operated in the US
  • Costco asks you to meet all program qualifications before you apply, because it can't process requests that don't
  • A member of the merchandising team contacts you if they need more information
  • Every supplier has to meet Costco's standards for quality, value and service
Costco: Supplier InclusionCompleting the application does not guarantee a business partnership with Costco Wholesale.
03

Get retail-ready before you pitch

A Costco buyer is looking at a product that can ship by the pallet next month, not a recipe. Three things have to be in place first.

  • A licensed kitchen. Cottage food laws are built for selling to consumers, and many rule out stores entirely: Michigan's cottage food rules, for example, don't allow sales to restaurants or grocery stores
  • FDA food facility registration for the plant that makes or packs your food, unless it is exempt. The retail food exemption doesn't fit a supplier, because FDA counts only sales to consumers, and businesses aren't consumers
  • Production under FDA's good manufacturing practice rules for human food, 21 CFR 117
21 CFR 1.227The term "consumers" does not include businesses.

Working with a co-packer is often the fastest way to get there: their registered, inspected plant makes your recipe, and your label says "Manufactured for" or "Distributed by" with your company name.

Co-Packer →FDA Food Facility Registration →
04

The FDA label on a Costco package

Every package needs the full federal label: the name of the food, net quantity, ingredients in order of weight, the major allergens, your name and address, and Nutrition Facts.

Don't count on the small business exemption from Nutrition Facts. It covers food offered for sale by a person who sells directly to consumers and has small sales. In a Costco warehouse, the business selling to the shopper is Costco. A small manufacturer may still qualify for the low-volume exemption, with a notice to FDA, but it disappears once a nutrition claim or nutrition information appears on the label or in your ads.

21 CFR 101.9(j)(1) · 101.9(j)(18)The exemption for direct sellers to consumers with small sales, and the low-volume exemption for small manufacturers.
Do I Need a Nutrition Label? →
05

Club-size packs and multipacks

Warehouse clubs sell big. Two FDA rules decide how the Nutrition Facts panel looks on those packs:

PackWhat FDA requiresIn our tool
A box of single-serve packs, each carrying its own complete labelThe serving size on the outer box is 1 unitMake the unit label, then the box label with 1 unit as the serving
A single package holding two to three times the reference amountA second column for the whole package next to the per-serving columnDual column format
A large package with many servingsServings per container from the net weightEnter what one package holds, in ounces or grams
21 CFR 101.9(b)(2)(i)(H)For packages containing several individual single-serving containers, each of which is labeled with all required information including nutrition labeling as specified in § 101.9 (that is, are labeled appropriately for individual sale as single-serving containers), the serving size shall be 1 unit.
21 CFR 101.9(b)(12)(i)Products that are packaged and sold individually and that contain at least 200 percent and up to and including 300 percent of the applicable reference amount must provide an additional column within the Nutrition Facts label that lists the quantitative amounts and percent Daily Values for the entire package

A variety pack that mixes different products is a different case. Our tool makes a label per product, not the combined variety-pack layout, so plan that panel with your designer.

Dual Column Nutrition Label →
06

Bring the label and its paper trail

Buyers, co-packers and quality teams ask where your numbers come from. Our tool gives you a vector PDF that prints at actual size, an SVG your packaging designer can place, and a calculation report: the recipe, which USDA FoodData Central entry each ingredient came from, and the rounding behind every number. FDA itself notes that USDA FoodData Central may be used to develop nutrient information for foods.

Nutrition Label Documentation: The Calculation Report →Start your label free →
07

How to sell to Costco: checklist

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Questions

Questions

Costco's Vendor Inquiries page sends prospective vendors of food and sundry items to the appropriate division office, and vendors of non-food or sundry items to the corporate office. Small and diverse businesses can also use the intake form of the Supplier Inclusion Program.

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