Consumer

Costco’s Popular Kirkland Baby Diapers Are Shifting Suppliers

  • First Quality is taking over production from Kimberly-Clark
  • Kimberly-Clark is shifting away from private label businesses

Consumer goods makers have focused on restoring profit margins to pre-pandemic levels and scrutinizing business models after years of higher costs.

Photographer: Jordan Vonderhaar/Bloomberg
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Costco Wholesale Corp. is switching manufacturers for its popular Kirkland Signature brand of diapers as its supplier moves away from store brands to boost profitability.

First Quality is replacing Kimberly-Clark Corp. as the maker of Costco’s diapers, with the official change set to happen in January, according to people familiar with the decision who weren’t authorized to speak publicly about the matter.