I think the difference is the focus on the specific products and their brand. If someone named their candy stand "Silly Wonka" and only sold Nerds and Runts, I am sure they would have Nestle come after them too.

Nestle has the single word "wonka" itself trademarked, so you're going to need a better example.

Willy Zonka

Was Pirate Joe's selling counterfeits or knock offs? I thought they were reselling TJ's products.

For one, Costco is a wholesale club. It is specifically designed to sell resealable goods. E.g. buy by the box a good that is individually wrapped for resale. It is the design of Costco and the products they sell are regulatory compliant.

Not so of Pirate Joe's. The Pirate sells goods in Canada that only comply with U.S. market rules (food safety, nutritional markings, etc.).

That's not really the merit of this case, which is more about trademark and branding, but reselling Trader Joe's goods (not meant for resell) in Canada (different market) is hardly comparable to reselling Costco goods (meant for resell) in the U.S. (same market).

Better analogy would be a store called "Smirkland's Signature" that sells Costco-branded products (e.g., Kirkland's Signature).