Costco Just Made A Major Change To Its Kirkland Grass-Fed Butter That Has Fans Divided

Strap in, butter aficionados — your go-to butter from Costco may now be coming from a completely different country. Although Kerrygold is a favorite brand among professional bakers, many folks opt for the affordable Kirkland Signature butter that rivals the Irish brand. Until recently, the Kirkland butter was produced solely in New Zealand, but a new contract with an Irish supplier is moving production to the Emerald Isle, and fans of the old Kirkland product are split over the implications of the change.

Tirlán, an Irish dairy co-op, has apparently reached an agreement with Costco to make grass-fed butter for the warehouse's Kirkland Signature brand. The green-and-black label used to specifically state it was a product of New Zealand, but now Costco's website lists its Kirkland butter as sourced from New Zealand or Ireland. Tirlán already sells its own brand of grass-fed butter, Truly Grass Fed, in the big-box store.

Customers who have tried the new Kirkland butter have mixed reviews. Fans who view Irish butter as a better product in general are calling this change an upgrade, but some aren't so sure that the taste and texture have been improved. One person wrote in a r/CostcoWholesale subreddit, "The NZ one is better, just tasted them side by side. The new one is way softer out of the fridge & has very little structure." While people couldn't agree whether the disparity in taste and texture was for better or worse, or if there was a contrast at all, most concurred that the packaging has undergone a downgrade.

Although a few people on social media thought the new Kirkland Signature butter was too watery or soft (though on the bright side, they won't struggle to spread cold butter), the most contentious aspect of the Tirlán change appears to be the packaging. Folks are already missing the tablespoon marks that used to be printed on the wrapping, which made for easy measuring. Even folks willing to give the new butter's flavor and consistency the benefit of the doubt are not thrilled about Tirlán's penny-pinching on the packaging.

Tirlán is causing a commotion abroad with this partnership as well. The company also supplies Ornua, the maker of Kerrygold. By partnering with Costco to produce private label Kirkland Signature grass-fed butter at a price that's lower than that of Kerrygold, Tirlán and Ornua are now direct competitors. Irish farmers' associations are sounding the alarm that local milk producers are going to take a hit to their pay as a result.

In its defense, Tirlán has indicated it is simply responding to market demand for more private-label grass-fed butter. It may have a point. Butter consumption in the U.S. has risen for over 25 years, reaching its highest mark in 2024 with folks consuming 6.8 pounds per capita.

Still, whether Costco customers will buy the new Kirkland grass-fed butter remains to be seen. With the packaging change being contentious and plenty of folks thinking the quality has taken a step backwards, it's always possible that the warehouse could return to having New Zealand produce all its Kirkland grass-fed butter.