Costco discontinues award-winning beer brand
The craft beer apocalypse has claimed another beer brand, but this time, a major private label sold exclusively at Costco will disappear after less than two years on the market. Giant warehouse retailer Costco has discontinued its co-branded Kirkland Signature Helles-Style Lager and Kirkland ...
Overview
The craft beer apocalypse has claimed another beer brand, but this time, a major private label sold exclusively at Costco will disappear after less than two years on the market.
Giant warehouse retailer Costco has discontinued its co-branded Kirkland Signature Helles-Style Lager and Kirkland Signature Vintage Ale, which it launched with Deschutes Brewery in December 2024, according to Craft Business Daily.
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Costco ends craft beer partnership
Deschutes Brewery CEO Peter Skrbek informed distributors on July 1 that the Costco private label beers' production would wind down in July with the remaining inventory being sold off at the warehouse retailer's stores across the nation while the supply lasts.
The two beer labels are expected to be sold out at Costco stores by September or October, according to VinePair.
Costco has not said if it has future plans for the Kirkland Signature beer brand.
Bend, Ore.-based Deschutes Brewery signed an agreement in December 2024 with Costco to sell Kirkland Signature Helles-Style Lager beer and Kirkland Signature Vintage Ale, a bourbon barrel-aged imperial stout, at Costco warehouse stores across all 50 states, according to the Bend Bulletin.
Craft brewer's sales dropped
Deschutes signed the deal after its volume sales declined by 11% in 2023, but the brewery's volume jumped by 9% in 2024.
The brewery was ranked as the 10th largest craft brewery in the U.S. in 2025 by the Brewers Association. It also was within the top 25 vendors in grocery stores, with year-to-date dollar sales rising by 8.3% and volume increasing 9.3% through June 14, according to research firm Circana.
Craft beer competition in Oregon is fierce, as the state is home to 297 craft breweries, according to the Brewers Association.
Kirkland Signature Lager won awards
The Costco and Deschutes partnership was a success in quality as The Costco and Deschutes partnership was a success in quality as Helles-Style Lager won a silver medal in 2025 and a bronze medal in 2026 at the World Beer Cup.
Details
The high-quality brew is a bargain, as this reporter observed 12-packs of Kirkland Signature Helles-Style Lager selling for $12.99 at Costco in Fairfield, Calif., on July 5.
Deschutes Brewery was established in 1988 by Gary Fish, who sold 310 barrels of beer in the brewery's first year. The brewer expanded the beers' distribution from Oregon to all 50 states in 2024 and produced more than 225,000 barrels a year.
The brewery operates out of three locations in Oregon, its Bend Public House, its Bend Tasting Room and Beer Garden, and Portland Public House.
The future for Kirkland Signature beers is unknown, but Skrbek said he "wouldn't be surprised if the lager makes a return at some point," according to VinPair.
Operating breweries decline
The U.S. craft beer sector has struggled over the last two years, as the number of operating craft breweries declined by 2.9% to 9,578 in 2025, according to the Brewers Association’s 2025 Annual Craft Brewing Industry Production Report, which was updated on May 29.
Craft beer sales have been dropping as well, according to the Brewers’ Association.
“The headwinds facing the industry did not diminish compared to a year ago, and in some areas only strengthened. Measured in July in the Brewers Association’s midyearsurvey, craft volume was estimated to be down 5%, a somewhat steeper decline than the full-year trend of 2024 (-4%),” according to the Brewers Association.
Costco's defunct private label beers
- Kirkland Signature Helles-Style Lager
- Kirkland Signature Vintage Ale
- Source: Craft Business Daily
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Source
Originally published at www.thestreet.com.
