Some people manage by walking around. I spot trends and stocks by walking around. Sometimes I’m even right.
In the last few years, Costco began setting up big blocks of Certified Organic foods. I mean like 40 x 20′ areas that you could play musical chairs around, if there was somewhere to sit. On a recent visit, Certified Organic multi-packs of crackers, cereal and 10-pound bags of sugar were just a few of the items. The produce section bulges with organics as well.
Earlier in the year, the news broke that Costco is the leader in organic food sales in 2015. This is no longer surprising.
While the idea of warehouse stores tempting consumers to load up hoodies and fleece blankets (guilty!) may leave a bad taste in your mouth, Costco’s success is important to small, artisan food producers, as I wrote about in The Book.
Along with a famously impressive wine selection, the food buyers give food startups a chance to expose their products to a potentially new set of customers who may not shop at Whole Foods or other natural food stores.
For example, was a total shock and delight to see this soup from a very small company at my local Costco in Richmond, CA…hence the tweet:
@NonaLimFoods So cool seeing your soup at @Costco ! pic.twitter.com/nxp5PbIqfG
— Susie Wyshak (@susiewyshak) October 29, 2015
Why the Costco Love
The other day I raced through Costco on the hunt for a few staples like locally roasted coffee and non-local toilet paper. Of course ultimately several foods that weren’t on my list landed in the cart, including D’artagnon sausage (despite the Big Meat Scare of 2015) and bevy of cheeses.
My bill, as usual, topped $100. This included a very cute black hoodie, of which they had several variations.
The clothing assortment was really solid. Meaning, I could deck my halls with leggings, another jacket and shoes. (Why is wearing Kirkland clothing not embarrassing? Because I’m too old for that?! Or because we all shop at Target and Uniqlo these days?)
Blame it on my growing up in the perhaps-out-of-date Peter Lynch (“buy what you know”) era, but I think Costco is going to do really well in Q4 and beyond.
p.s. COST went up $1 while I was typing this. Of course, past performance is no guarantee of future results. But keep in mind in 2016, Costco will start accepting VISA cards…which could lead a lot more and new consumers to join.
Susie on the Street is my 30 day challenge to blog daily, on my favorite topic: What I see in the real world, research for my articles on About.com Food and Beverage, and how my observations and research may — or may not — lead to success in business and investing.
DISCLAIMER: Do not make ANY decisions based on what you read here. Be sure to do your own research.
I was surprised to stumble upon “small batch” fresh strawberries being dipped at Costco. As artisan as it gets – “discuss.”
