Who Really Makes Costco's Kirkland Signature Bottled Water?

Costco's Kirkland Signature brand is synonymous with the warehouse giant. Along with offering the opportunity to buy your favorite snacks and goodies in bulk, Costco's store brand is one of the chain's main draws. In the past, social media stories have gone viral for revealing who really makes Kirkland products like pet food and coffee, but what about bottled water?

Although sold under the Kirkland name, the water is actually manufactured by a company called Niagara Bottling. Niagara is a family-owned business that was established in 1963 in Southern California by Andrew Peykoff Sr. It started out by supplying five-gallon containers of water for homes and offices and has since expanded to offer single-serving bottled water for clients like supermarkets and club stores. Kirkland sells water in 16.9 ounce and one gallon sizes, but the Niagara brand also offers 8-ounce, 10-ounce, 20-ounce, and one liter options.

Besides providing purified bottled water, Niagara has a slate of other beverages for retailers to choose from. Its spring water is sold in the same sizes as the purified variety, and it also provides distilled and purified water plus minerals in gallon bottles. Additionally, Niagara offers alkaline water, sparkling water (in flavors like lime and black raspberry), vitamin waters, tea, and protein shake beverages. Niagara is a popular choice for chains and also supplies Kroger and 7-11.

Despite its popularity with retailers, Niagara Bottling has faced controversies that have left some consumers with a bad taste in their mouths. Bottled water comes from a variety of sources, and the company claims that it uses springs, wells, or municipal locations. Yet, in 2018, Stanley Frompovicz (the owner of a Pennsylvania-based spring water business) filed a lawsuit accusing Niagara of false advertising, contending that the company deceptively marketed its products as spring water. To be considered spring water, a product must adhere to a number of regulations. According to the lawsuit, Niagara (and three other companies) sold well water under a spring water label for a higher price.

Additionally, the plastic bottles used by company landed Niagara in court again. In 2021, New York City resident Eladia Duchimaza sued the company over claims that its bottles were 100% recyclable. However, specific aspects of the design (like the cap and label) are not recyclable in certain parts of the country. A judge ultimately dismissed the case, essentially saying that the cap and label were such small parts of the bottle that they should not prevent Niagara from using the 100% recyclable label. Despite the result of the suit, eco-conscious consumers may still be left with a negative impression. 

These lawsuits follow another dent in the company's reputation. In 2015, Niagara recalled water produced at its Pennsylvania facilities due to E. coli contamination. Fortunately, no illnesses were reported.