Costco shifts Kirkland diaper supplier from Kimberly-Clark to First Quality

Costco is changing the supplier for its Kirkland Signature diapers. Starting in January, First Quality will replace Kimberly-Clark Corp. as the manufacturer. This shift comes as Kimberly-Clark focuses on higher-margin products and moves away from private label contracts. First Quality, which also produces Cuties diapers, has increased its diaper production capacity by 50% at its Georgia factory. The change in suppliers may affect the fit and design of the Kirkland diapers, which some parents find more ergonomic. Costco's Kirkland diapers have gained popularity due to their value amid rising prices. The retailer aims to boost sales of its private label items, which typically offer higher profit margins compared to national brands.