Kirkland products are actually white label versions of the products they copy, produced by the company they are copying - so it’s an entirely different situation - ie Costco is paying brands for their products (albeit at a lower price), not stealing.
This is common with many white label products and not at all unique to Costco. For example, I know which craft brewery white labels one of Trader Joe's brand beers (each type of beer might be made by a different brewery). Same production line, just different bottles.
Previous discussion: https://news.ycombinator.com/item?id=23912991