People join Costco for the $4.99 chicken, the $1.50 hot dog with Pepsi, the giant, two-box set of Cheerios, and the many items from potted plants to puffer jackets they never expected to buy. But when a new Costco comes to town, the buzz is on the opening specials.
At the Pleasanton warehouse opening on Nov. 27th, the Costco-famous first day lures of hard-to-find Bourbons and highly allocated cult wines drew hundreds and sold out in hours. Some later imbibed or gifted the liquor while others sold it for profit.
I waited two weeks before my first visit. During a walk around the 150,000 square foot warehouse, I met Ruben, a cashier/salesperson, or “barker” in Costco vernacular, who was pitching a special beef roast offered for the first time at Costco. Ruben placed 100 top quality, Japanese A5 Wagyu beef roasts in a cooler at 9:00 a.m. By lunchtime, the case held 50. During our 10-minute chat, I saw three roasts— priced at $59.99 per pound— placed in carts. Ruben expected to sell out by the end of the day. Yet the nearby food sampling person touted three-pound jars of kimchi for $7.69.
The visual contrast between expensive and affordable products is a theme at Costco warehouses. The marketing strategy shines brightly at the entrance where 65-inch TVs for $349.99 display next to larger ones for $1,349.99. Next to the TVs, cases of wine were stacked up, priced from $68.99 to $12.99 per bottle. Along the main aisle, I could beautify and get healthy with expensive skin enhancers and low-priced protein shakes.
But I didn’t buy any Wagyu beef, kimchi, beauty aids or TVs. My mission was to assess differences in the food and drink offerings and compare the overall shopping experience with the Danville or Livermore Costco. I received a warmer than usual welcome from employee Josh who told me that working in Pleasanton was better than Livermore because the building was new, and staff seemed happier working here.
My first stop was the Food Court to energize with a cold brew mocha freeze. The food menu is the same as other warehouses, the Costco name for stores, but the Food Court has an improved layout. The tables are located farther away from the pickup counter which reduces congestion. The condiments area was messy, as usual, but the staff seemed friendlier. The coffee drink for $2.99 was much cheaper than Starbucks.
The size and stocking strategy of the Pleasanton warehouse is like the others except for the inside entrance to the Tire Center. The aisles are infuriatingly numbered rather than signposted with product categories. Supervisor Chloe told me the site employs 300 with a night crew to handle stocking. Costco continually moves things around and changes the product mix seasonally, a practice that encourages you to walk around to buy additional items.
About the wine, beer and spirits
To learn about beverage specials in Pleasanton, I spoke with Mark Kalkbrenner, Buyer for Wine, Spirits and Beer in Costco’s Northern California/Northern Nevada region. Though the corporate buyers handle the Kirkland brands, Kalkbrenner customizes about 60 percent of the products at each of his 64 warehouses. Since he lives in the East Bay, he is familiar with what Tri-Valley members frequently buy and request.
Kalkbrenner presented an opening special of highly allocated, three-pack of cult Napa winery Screaming Eagle for $8,000 which sold out quickly. He thought the six-bottle special of Wente Nth Degree Cabernet Sauvignon costing $459.99 with savings of about $250 was still available, but I didn’t see it.
Placed on shelves above the wine bins, specials ranged from rare Napa wine Scarecrow in magnums (1.5-liter bottles) for $1,999 to Dom Perignon Plentitude 2 Vintage 2004 Champagne in a gift box for $549.99. A top Bordeaux classified first growth wine, Château Mouton Rothschild 2021, was offered at $549.00 per three-pack. For the latter wine, members save about $200 per bottle because Costco corporate buyers participate in the Bordeaux en primeur process and pay for futures of the wine to be released years later.
The normal markup for wine sold at retailers is 30 percent, but Costco generally marks up the wine less than 20 percent. Until this year, Costco was the largest wine retailer in the U.S. Total Wine & More is now number one, and the company watches Costco closely to beat their prices. The $4.99 price for producing and shipping Kirkland Pinot Grigio from Friuli, Italy, is hard to beat. But Total Wine has a Pinot Grigio from Lombardy, a lesser-known Italian wine region, for $4.49.
Though the Tri-Valley Costcos have consistently stocked Livermore wines, Kalkbrenner wants to increase representation of local wineries here. Ruby Hill Winery in Pleasanton had two dedicated bins. The label for Ruby Hill Peacock Patch Zinfandel bottles displays many colored peacocks referring to the vineyard blocks that peacocks frequent. Chardonnay bottles carry the original Ruby Hill winery logo.
Las Positas Winery Barbera from Livermore shared a bin with Calif. wines from Bedrock and True Grit wineries. The next Livermore Valley producer that Kalkbrenner will stock in Pleasanton is Fenestra Winery.
Kalkbrenner plans to stock Wente Vineyards wines that are normally only available at the winery such as Reserve Cabernet Franc. Sale-priced Wente Riva Ranch Chardonnay, one of Wente’s most widely distributed wines, shared space with a gift set of four wine bottles and lavash crackers. One of the wines, Cline Family Cellars Red Blend, is from old vines in Contra Costa County.
On the beer front, Kalkbrenner is also on the lookout for local products. Six 12-ounce cans of Hella Hoppy IPA from Altamont Brew Works in Livermore are sold for $10.99. Kalkbrenner stocks St. Thomas OG IPA, from Fieldwork Brewery from Berkeley. Other local brewers include Dust Bowl Brewery from Turlock who host a brew pub in Livermore and Original Pattern from Oakland. Kalkbrenner noted that the new Kirkland Helles style lager is generating interest.
The spirits section had many specials. For example, the many-colored labels of Johnny Walker whiskies were on sale. Scotch offerings include Oban and Macallan. Sports fans could score Joe Montana Championship Collection and Gold Bar American Blended Whiskey.
About the food
Costco tests reception of new product during the first 90 days of new warehouses. For example, the long cooler which holds an array of cheeses from gouda to truffle brie at Livermore and Danville is half filled with six different styles of sushi trays made fresh daily—and two options for caviar. The more expensive Tasting Set featured two ounces of Tsar Nicoulai California reserve caviar, mascarpone cheese and 16 blini (small buckwheat pancakes) for $99.99. Nearby the bountiful display of $4.99 three-pound, seasoned Kirkland Roasted Chickens awaited pick-up.
Walking around Costco is an experiment in learning about global cuisines. The Pleasanton warehouse stocks Korean beef bulgogi (barbecue) in the cold case line of prepared foods near the taco platters and seasoned tri-tip. Three colorful flavors of tamales cover an end cap cooler. Indian curries are shelved next to salsa, kebabs and hummus.
Just in time for the holidays there are potato pancakes (latkes) and cheese blintzes for Hanukkah and roasted lobster ravioli and tamales for Christmas meals. Party options and gift packs of prepackaged charcuterie, appetizers, Christmas cookies, desserts from around the world, and candies abound throughout the warehouse.
Is it worth buying membership to Costo? It depends on how often you shop and what you buy at the store or tap online among the vast assortment of products and services. Costco prides itself on offering bargains to watchful shoppers and keeping the $1.50 price for the “¼ pound PLUS, all-beef hot dog” steady for decades, though the description has grown longer.
I eyed several items to buy over the holiday season though many of the products and specials seen then and mentioned here may be gone or replaced. Considering the friendly staff, samples of candy, occasional sugary coffee drink, and Costco specials, I expect more warehouse exploration on the horizon