The Irish Farmers Journal understands that Tirlán has agreed a substantial deal to supply American supermarket chain Costco with grass-fed butter for the retailer’s Kirkland brand.
While the co-op’s Truly Grass Fed brand has been available on US shelves since 2019, the deal with Costco is a new departure for the Irish processor.
The volumes of butter involved will be much higher, while the retail price will be at a significant discount to either Kerrygold or Truly Grass Fed.
While Costco’s Kirkland grass-fed brand had been supplied from New Zealand, the Irish Farmers Journal understands that the retailer had run into issues sourcing sufficient stock from that country.
As part of the deal with Tirlán, the label on the Kirkland brand will change from “product of New Zealand” to “product of Ireland”.
The Kirkland brand retails at around $15/kg (€13.20/kg), while Kerrygold in Costco is priced at close to $21/kg (€18.50).
The Irish Farmers Journal has contacted Tirlán and Ornua for comment.
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