eli5, how do “store brands” work?

Question

eli5, how do “store brands” work?

In: 348

Answer 1

Kirkland is a fun example: Costco puts out for tender the manufacture of many things, but their requirements are very strict:
To win the contract your product needs to be better, or as good as, the market leader. Usually only the market leader can achieve this.

So when you pick up your Kirkland Minoxidil, it’s probably made in the Rogaine factory by the Rogaine team.