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Costco's prime steak is cheaper, but is it good?(Costco Wholesale Corp.)

Consumer Reports

| July 01, 2006 | COPYRIGHT 2006 Consumers Union of the United States, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Costco has begun selling prime steak, the fanciest grade, to online customers for 30 to 50 percent less than some other prime mail-order steak. Can bargain steak really be, as Costco claims, "beef nirvana"?

We pitted Costco's filet mignon and strip steaks against those from two catalog and Internet sellers, Allen Brothers and Omaha Steaks, and from Lobel's, a renowned New York City butcher shop that also sells online. We cooked them to medium-rare in an iron skillet and our trained tasters ate them plain.

The taste. Lobel's filet mignon, rated excellent, was buttery soft and juicy, with a big beefy flavor. Allen Brothers' filets and steaks, rated very good, were generally tender and juicy. The others had subtle shortcomings. Some bites of Costco's meat were a bit chewy. The fat and beef flavors of the filets didn't mesh well, and the strip steaks had a few globs of fat (instead of flecks) and tasted a trifle metallic. The filets from Omaha Steaks were similar to Costco's, and its steaks were only moderately tender and juicy.

The price. These steaks cost big bucks. Costco's is the least expensive, but shipping adds $18 per package (base prices and weights are at right), and buyers must belong to Costco or pay a 5 percent surcharge. Shipping varies for the other steaks. Lobel's rates start at $26, Allen Brothers at $12, and Omaha Steaks at $11.

CR's take. Lobel's excellent filet mignon was a clear winner. Most of the other choices were very good and tasted quite ...

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