Starco Brands Acquires Custom Bakehouse in Vertical Integration Play 

LOS ANGELES, July 21, 2026 — Los Angeles is home to plenty of flashy startups, but Starco Brands (OTCQB: STCB) is playing a much older, much smarter game. They call it vertical integration. Personally, I believe it is just being a smart, control-oriented operator in a highly volatile retail landscape.

According to the official statement from Starco Brands, the consumer products engine completed its acquisition of Custom Bakehouse on July 15, 2026. This isn’t just a minor portfolio addition.

We are talking about a highly strategic transaction projected to pump roughly $20 million in annual revenue straight into Starco’s top line. It’s an aggressive play to own the entire pipeline from the spark of an idea to the grocery store shelf.

For the uninitiated, Custom Bakehouse is a major player in the private-label and dry-blend space. Operating out of a massive 75,000-square-foot production facility in Santa Fe Springs, California, they have spent over three decades perfecting everything from powdered foods and nutritional blends to those highly recognizable Marie Callender’s® licensed baking mixes and the popular Sticky Fingers brand.

What does Starco get out of this? Absolute control over their manufacturing destiny. By folding these capabilities directly into their business, they are effectively cutting out the middleman and insulating themselves from supply chain chaos.

Honestly, I believe the real story here is the structural shift. Starco is splitting into two clear operating pillars: Starco Brands, Inc. (the marketing and IP machine) and Starco Manufacturing (the heavy-lifting production house). Over time, Starco Manufacturing will absorb the company’s existing manufacturing assets, including The Starco Group. It is a brilliant way to run a business. If you own the factory, you own the speed of innovation.

Here are the core capabilities this buyout instantly unlocks:

• Advanced Formulation: Over 30 years of expertise in organic and better-for-you powder blending.
• Scale and Scope: In-house production of drink mixes, dry seasonings, batter, breading, and nutritional supplements.
• Synergy & Innovation: Fast-tracked testing for Starco’s growing wellness and nutrition lines.

To pull this off, Starco tapped Pasadena Private Lending (PPL), a $400 million non-bank lender that focuses on lower middle market growth. PPL’s Chairman & CEO, Iain Whyte, publicly voiced strong support for Starco’s aggressive vertical model, which frankly makes sense given how rare this level of self-reliance is in modern retail. On the sell side, investment banking outfit Craig Hallum represented Custom Bakehouse.

Ross Sklar, Chairman and CEO of Starco, pointed out that manufacturing isn’t just about putting things in boxes—it’s an R&D engine. He is absolutely right.

Where does Starco go from here? This acquisition positions them to aggressively scale their behavior-changing consumer lines while simultaneously running a highly profitable private-label business for other retailers. It is a dual-threat business model that few small-cap companies can successfully pull off.

But if they can maintain the operational discipline they showed throughout their 2025 financial reports—where they focused heavily on margin optimization and cost cutting—this $20 million revenue boost could be the catalyst that finally forces Wall Street to pay closer attention.