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Costco discontinues fan favorite item due to rising costs

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Shoppers normally consider branded groceries to be better quality than own-label versions. 

But not at Costco - where its own Kirkland brand is very often the top choice.

It means that when the retailer stopped selling its Kirkland Signature chocolate chips, there was uproar on social media.

Fans were disappointed to learn that they had been replaced with Nestle's chocolate chips. 

Costco bosses have blamed the soaring cost of cocoa for ditching the chips, which are used in cookies, other baked treats as well as for hot chocolate. 

But they said the Kirkland version may come back once cocoa prices drop down. 

Upset Costco customers took to Reddit after learning the news that the own-label Kirkland chocolate chips were being replaced with Nestle branded versions.

Upset Costco customers took to Reddit after learning the news that the own-label Kirkland chocolate chips were being replaced with Nestle branded versions.

Costco has stopped selling its Kirkland Signature chocolate chips

Costco has stopped selling its Kirkland Signature chocolate chips

The news emerged weeks ago when Costco added its infamous 'Death Star' - the discontinuation asterisk - next to the products in stores and circulated a detailed internal memo explaining the decision. 

'Cocoa costs have risen nearly 200 percent compared to last year,' the memo reads.

It is thought that Nestle's much bigger buying power - as a global confectionary brand - it was able to secure a better price for cocoa.  

Costco customers took to Reddit to proclaim their sadness but they appreciated the retailer's honesty. 

'They are seriously the best chocolate chips ever,' one wrote.

' I use them for chocolate fondue, chocolate pudding, brownies, chocolate chip cookies, drinking chocolate. 

'Anything chocolate—it's my only go-to! Nothing else compares, and I tried to find something as good when they discontinued them a few years back.' 

Another said: 'Well, I for one would cheerfully rather pay an extra buck fifty to buy Kirkland instead of Nestle, but I guess they've made their point.'That's good transparency from a reputable company.' 

Some customers suggested buying own-label versions from rivals such as Aldi and Trader Joe's.

'Nestle semi-sweet chips are so gross,' one said. 

'I recommend those disappointed to purchase your private label chocolate chips at Aldi, instead.'

Nestle Chocolate Chips will sell for $12.79 for a 72-ounce bag. The Kirkland Signature Chocolate Chips were around $1.50 more. 

In the memo, Costco said it may bring them back when costs come down. 

Meanwhile, Costco last month said it would be increasing its membership fee for the first time in seven years from September 1. 

It is the first increase since June 2017, and will go up by $5 a year for the standard membership - taking it from $60 to $65 annually. 

Costco's $1.50 hot dog and soda is a huge hit with members and has been the same price for decades. Sam's Club sells its version for $1.38

Costco's $1.50 hot dog and soda is a huge hit with members and has been the same price for decades. Sam's Club sells its version for $1.38

Costco is the biggest of the membership-based warehouse chains, with twice the sales of its Sam's Club even though they both have the same number of clubs. 

But Sam's Club is stepping up its battle with Costco.

The retailers last year went head-to-head over a food court staple - Sam's Club undercut Costco's famous $1.50 hot dog and soda combo by 12 cents. 

Now Sam's Club - Walmart's version of Costco - is finding new ways to take get new customers, either grabbing them from its rival or attracting Americans don't belong to a club. 

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