Kudos to MyGolfSpy for reporting the likely demise of Costco's Kirkland ball sold for so little and performing so admirably. I've been trying to track down details on the Kirkland story and my reporting mirrors that of MyGolfSpy in all but one key area. This we agree on: it's unlikely we'll see Costco replicate such a ball at the same price.
To recap, the $15-a-dozen ball is no longer even pictured on Costco's website after supplies became constrained, largely after MyGolfSpy's rave November 7th, 2016 review comparing the pellet favorably to Titleist's Pro-V1.
Tony Covey writes:
Our source inside Costco has not responded to our calls, however, a source familiar with the situation has told us that Costco has suspended production of the Kirkland Signature until further notice. Whether you want to call it a shortage or a total outage, the lack of Kirkland golf balls available to the consumer is being blamed on supply chain issues.
We're told that, internally, Coscto is saying that production will resume at a later date (and that an email will be sent to customers when stock is available), but we have good reason to believe that is an unlikely scenario.
Essentially Costco was the recipient of a one-time bargain-buy on golf ball cores that allowed them to produce the ball inexpensively. Any Trader Joes shopper knows that vineyards with extra stock but not wanting to taint their brand selling their wine at a lower price will sell otherwise nice product to the chain. Trader Joes then slaps their label on what amounts to limited editions, tells us where the grapes were grown and teases us about its heritage without ever outing the vineyard. Some of the wines are better than others, but they are almost always an excellent value.
So which vineyard dumped these cores on Costco at a low, unlikely-to-be-replicated price? Covey writes:
A representative of Nassau Golf (originally listed as the manufacturer of the Kirkland Signature Ball on the USGA conforming list) has told MyGolfSpy that Costco purchased overruns of Nassau's European-market-exclusive Quattro ball. There is some indication the sale was made through a third party, and that Nassau may not have been directly involved in the deal. The same source confirms that while the Costco balls have a different core color, the material composition and layer thickness are absolutely identical to the Quattro.
With the initial supply of overruns exhausted, Costco effectively has nothing left to sell.
Multiple sources I contacted felt that cores were from an overrun of Taylor Mades that needed to be disposed of when Adidas demanded that their subsidiary squeeze cash out of anything they could. The intent was not to disrupt the industry, but instead to cash in however they could on unused inventory. When GolfWRX noted the initial frenzy and MyGolfSpy's review hit, the ball became a disruptor.
Covey does note that the Kirkland ball's manufacturing location is now back to its mission of making Taylor Made golf balls and that a similar situation to the 2016 "K-Sig" is unlikely anytime soon, if at all.
I mention TaylorMade in particular because the company's tour balls are produced at the same factory as the Costco/Nassau balls, and there are some indications that production of new TP5 has pushed smaller companies to the back of the production line. Even if Costco otherwise had the capability to produce balls immediately, which it appears it doesn’t, the K-Sig wouldn’t be given priority over larger brands and long-term customers.
So what have we learned from this brief disruption of the ball market?
--MyGolfSpy's review was incredibly powerful, GolfWRX once again fueled interest in a product and the tide may have turned for golf equipment reviews. As other sluggish traditional publications sat on the sidelines, perhaps for fear of upsetting major manufacturers or simply because Costco is not a potential advertiser, independent internet reviews fueled the frenzy. (GolfWRX first posted about a "frenzy" on October 28th and while Mark Crossfield only posted a review three days ago, internet influencers established even greater power thanks to the Kirkland ball.)
--A lot of people don't like Titleist. There was much behind-the-scenes joy at Titleist facing a scary competitive hit around the time of their IPO. Some of the hostility could be chalked up to their longtime spot atop golf ball sales. Some of the glee was over the incredible brand loyalty Titleist inspires. Some of it related to their hostile position toward distance rollback advocates. But most hostility centered around about the price of a dozen ProV's compared to others and was aired on forums. However...
--A lot of people don't know what goes into the cost of a golf ball. The anger ignored how much Titleist and other major manufacturers spend on R&D and manufacturing in the USA. That's right, unlike the Costco ball, we are talking about an American made product. I was amazed how many golfers were not aware that ProV's and Callaway Chrome Softs are made in Massachusetts by American workers. If you like to buy "Made in the USA" products, this episode was an eye-opener.
--Costco now looms as a potential market disruptor under the right conditions. Yes, it took some luck and timing, but they do have the ability to inflict temporary damage on major manufacturers. On the other hand, the episode may have legitimized them as a seller of golf equipment of any kind.
--Golfers and their brand loyalties were tested. Many pushed back on Twitter at my intial skepticism over the long term success potential of the ball. I questioned whether golfers could announce they were playing "a Kirkland 3 on the first tee." While I'm all for anything that lowers prices and increases competition, common sense says most golfers are attracted to their favorite brands for reasons both sane and insane.
--The episode did at least include one fun viral video. And look at it this way Wally, there were much worse clips they could have used!