After less than two years, Costco and Deschutes Brewery plan to discontinue their co-branded line of Kirkland Signature beers. Deschutes chief executive officer Peter Skrbek announced the change in a notice to distributors sent on July 1, Craft Business Daily reports. Production is set to be scaled back as soon as this month.
The collaboration includes Kirkland Signature Helles Lager and Kirkland Signature Vintage Ale, which are expected to be gone from most Costco warehouse’s shelves by September or October. The big box store launched its partnership with Deschutes in December 2024, and it enjoyed a slew of accolades soon after. The World Beer Cup awarded Kirkland Signature Helles Lager silver and bronze medals in 2025 and 2026, respectively. The co-branded beers became an industry phenomenon for their high quality paired with Costco’s low costs ($13.99 for a pack of 12).
Skrbek tells distributors that Costco will continue to purchase the already-brewed beers, according to Brewbound, who reviewed the memo. The future of Kirkland Signature’s beers is uncertain, he says, though he “wouldn’t be too surprised if the lager makes a return at some point.” While the private label offers a host of liquors, the two Deschutes-brewed products are the only beers within its portfolio. Kirkland Signature previously offered a variety pack of craft styles and Kirkland Light, though neither is currently available.
The Costco-Deschutes deal came on the heels of a difficult year for the brewery: In 2023, it posted an 11-percent slump in year-over-year volume sales. In 2024, the same year it launched the partnership with Costco, the brewery saw a nine-percent jump in volume.
Whether or not the terminated partnership will cause a loss for the Bend, Ore.-based brewery remains a question, but recent postings point to steady growth. Deschutes ranked as the tenth-largest craft brewery in the U.S. in 2025, per the Brewers Association. According to scans through June 14 from market research firm Circana, Deschutes fell within the top 25 vendors in grocery stores with its year-to-date dollar sales up 8.3 percent and volume up 9.3 percent compared to last year’s figures.
In his announcement, Skrbek assures distributors of Deschutes’s “strong growth.” “We look forward to working alongside you to continue to drive strong brand growth during the back half of 2026,” he says.
