Costco maintains its low $4.99 rotisserie chicken price through strategic sourcing and by selling at a loss, leading to inquiries about its poultry supply chain.
To have more control over chicken production, Costco formed Lincoln Premium Poultry in 2016, diversifying its sourcing from major poultry firms such as Tyson and Perdue.
The poultry market is dominated by just four companies, while Costco sources its rotisserie chicken from various suppliers, including its subsidiaries and big producers.
Issues in the poultry industry, like the treatment of chickens and unethical practices, have led to scrutiny and investigations, impacting Costco's supplier relationships.
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