SmartSweets' Costco Deal Signals a Revolution in the Candy Aisle

VANCOUVER, BC – March 02, 2026 – SmartSweets, a pioneer in the low-sugar candy movement, has secured a landmark national distribution deal with Costco, bringing its best-selling Sweet Fish to over 500 warehouse locations across the United States. The move marks a significant milestone for the brand and a potential tipping point for the "better-for-you" snack category, shifting it from a niche market to a mainstream staple.

The partnership introduces a Costco-exclusive 10-pack of the popular berry-flavored gummies, designed to cater to families and bulk shoppers. This strategic placement in one of the nation's largest retailers dramatically increases the accessibility of healthier candy alternatives for millions of American consumers, challenging the long-held dominance of traditional, high-sugar confections.

A New Era for the Candy Aisle

The nationwide rollout represents a major expansion for SmartSweets, building on a previously successful partnership with Costco in Canada. For industry observers, this move is less about a single product launch and more about the mainstreaming of a consumer-driven health movement. By placing a low-sugar option directly in the high-traffic aisles of Costco, SmartSweets is meeting a powerful, growing demand for healthier indulgence.

"We are incredibly excited to bring our SmartSweets Sweet Fish to Costco members across the United States," said Corey Sisson, Vice President, Sales Planning at SmartSweets, in a press release. "This launch gives U.S. consumers the opportunity to enjoy delicious candy with up to 92% less sugar than traditional options. We are proud to offer Costco members our best seller at our best value, and expanding into Costco U.S. makes it more accessible for consumers to choose low-sugar candy, advancing our mission to Kick Sugar, Keep Candy."

The product itself is a testament to the brand's mission. Each single-serving bag of Sweet Fish contains only 3 grams of sugar and boasts 6 grams of fiber. The candy is formulated without synthetic dyes, artificial flavors, or artificial sweeteners, using fruit and vegetable juices for color. This "clean label" approach is a critical factor in its appeal to an increasingly discerning consumer base.

The Consumer Quest for Healthier Indulgence

The timing of this expansion could not be more opportune. Recent market data reveals a seismic shift in consumer behavior, with a reported 72% of U.S. consumers actively trying to limit or avoid sugar in their diets. This trend is particularly pronounced among millennials and Gen Z, who are driving innovation and sales in the confectionery market by seeking out options that align with their wellness goals.

For decades, the candy aisle has been a bastion of sugar-laden treats, with taste and indulgence often coming at a high nutritional cost. The average American consumes over 36,000 grams of sugar annually, far exceeding health recommendations. SmartSweets and its competitors are capitalizing on the growing awareness of the health risks associated with high sugar consumption.

However, health consciousness does not mean a willingness to sacrifice flavor. The success of the "better-for-you" movement hinges on its ability to deliver an experience that rivals traditional counterparts. Consumers are seeking permissible indulgence—the joy of a sweet treat without the subsequent guilt. The market for these products is booming, with some analysts projecting the category to reach over $54 billion globally by 2025. SmartSweets' formula, which avoids sugar alcohols that can cause digestive issues in some individuals, further refines its appeal to a broad audience.

Scaling Sweet Success: From Kitchen to Costco

The journey from a niche startup to a nationwide supplier for a retail giant like Costco is a formidable operational feat. Founded in 2016 from Tara Bosch's home kitchen, SmartSweets' rapid ascent highlights the immense challenge and reward of scaling a specialty food brand. Meeting Costco's demands requires not only a unique and high-quality product but also the capacity for massive production volumes, sophisticated supply chain management, and highly competitive pricing.

The Costco-exclusive 10-pack, priced between $17.99 and $19.49 according to recent sightings, is a strategic move that aligns with the warehouse club's bulk-value model. This requires immense efficiency in manufacturing and distribution to maintain profitability.

The brand's growth was significantly accelerated by a 2020 majority-stake acquisition by private equity firm TPG Growth. The deal, valued at an estimated $360 million, provided the capital and strategic support necessary for SmartSweets to undertake ambitious expansions like the current Costco rollout. At the time of the acquisition, the company was reportedly generating around $100 million in annual sales, signaling its powerful market resonance even before this latest expansion. This partnership is a culmination of years of strategic planning, investment, and operational refinement.

A Crowded Field of Contenders

While the Costco deal solidifies SmartSweets' position as a leader, it operates in an increasingly competitive landscape. The success of the "kick sugar" movement has not gone unnoticed by the world's largest confectionery players. In a notable move, The Hershey Company acquired Lily's Sweets, another major player in the no-sugar-added space, integrating it into its growing "better-for-you" portfolio which saw significant growth in recent years.

Other brands like BEHAVE, Gigantic, and JOYRIDE are also vying for the attention of health-conscious consumers with their own unique formulations and marketing strategies. This influx of competition validates the market's potential and raises the stakes for every brand in the space.

By securing prime, nationwide real estate within Costco's influential "treasure hunt" shopping environment, SmartSweets has gained a powerful competitive advantage. The launch not only places its product directly into the hands of millions but also reinforces its brand identity as a trusted and accessible leader in the movement to redefine what it means to enjoy candy. The rollout is now underway, promising to reshape shopping carts and challenge the confectionery industry's status quo one fish-shaped gummy at a time.