Views: 16 Author: Site Editor Publish Time: 2025-06-17 Origin: Site
Several media sources report that Costco will soon switch suppliers for its Kirkland-branded baby diapers. Starting next month, the retail giant will partner with First Quality, a well-known private label manufacturer, to produce its store brand diapers.
This transition aligns with Kimberly-Clark’s broader strategy to move away from lower-margin private label operations. In October, CEO Mike Hsu shared that the company expects private label sales to account for just 2% of total revenue next year, a drop from 4% this year. Supporting this shift, CFO Nelson Urdaneta noted that stepping back from private label business “enables us to focus our capacity and investment on our own technologies and brands to better differentiate them.”
First Quality, which also manufactures Cuties diapers as well as household paper products like toilet paper and paper towels, has not released details about the new partnership with Costco. However, the company is currently undergoing a major expansion at its Macon, Georgia facility. Announced in May, this investment will boost production capacity by 50% and includes the construction of a new plant, additional diaper and training pant production lines, and a modern automated warehouse. The project is scheduled for completion by June 2025.
