Costco's 'highly unusual' move
Prepared chicken has been a private brand fixture for many years in grocery. Publix Super Markets’ fried chicken is one of the most popular brands in the South where the Lakeland, Fla.-based stores are located. Pittsburgh-based Giant Eagle is also known for its fried chicken.
And then there’s Costco Wholesale’s Kirkland Signature rotisserie chicken, which has gained a dedicated following. News outlet CNN.com recently featured an online story about the Issaquah, Wash.-based club store’s birds, headlined, “It's only $4.99. But Costco's rotisserie chicken comes at a huge price.”
“Price” refers to a few different things, from the low price of a chicken to the high price of Costco building its own poultry complex in Nebraska, which cost $450 million. And, as CNN.com reports, there’s the “price” of getting into a controversial industry.
At $4.99 each, Costco’s rotisserie chicken is an incredible bargain, a reason it's so popular. But, as consumers eat more chicken, Costco is facing supply challenges and cost pressures, according to CNN.com. Costco built the complex, which officially opens next week, to gain control of its chicken supply chain.
“It's a highly unusual move for one of the world's largest retailers,” according to CNN.com. “Costco will control the production process from farm to store, making key decisions down to the grain chickens eat and the type of eggs hatched. Costco has even put its socially conscious corporate reputation on the line, fending off local critics who have rallied against the Nebraska operation.”
You can read CNN.com’s story here.