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This document provides guidance on using a co-packer for small business owners.
Pros of using a co-packer:
- Lower startup costs for equipment and staff.
- Potential cost savings on ingredients and packaging.
- Faster startup time.
- Less time managing production, more time for marketing and customer relations.
- Helps with regulatory compliance.
- Access to product testing and suppliers.
Cons of using a co-packer:
- Less control over production, requiring good communication.
- Need for flexibility in packaging, scheduling, and costs.
- Risk to proprietary information, may need confidentiality agreements.
Finding a co-packer:
- Understand your processing needs and budget.
- Look for co-packers that match your requirements.
- Use resources like trade associations, industry magazines, and online listings.
- Consider local options to reduce transportation costs.
- Check if they can handle your order size and if they can become certified organic if needed.
Meeting with co-packers:
- Discuss responsibilities and liabilities.
- Ask about inspection reports, ingredient procurement, product development, bar codes, testing, quality control, inventory, and insurance.
- Be flexible and build a good relationship.
Protecting your business:
- Verify licenses and quality assurance protocols.
- Ensure traceability and recall plans are in place.
- Research the co-packer’s background and get references.
- Consider the impact of potential disruptions.
Resources:
- Bevnet Food & Beverage University: bevnetfbu.com
- Contract Packaging Association: contractpackaging.org
- Contract Packaging Magazine: packworld.com
- Food Industry Trade Magazines: foodprocessing.com, foodmanufacturing.com
- Midwest Food Processors Association: mwfpa.org
- National Organic Program Database: apps.ams.usda.gov/nop/
- OPI Kitchen Facilities Listing: organicprocessinginstitute.org/kitchen-facilities
- Pack Expo: packexpo.com
- Specialty Food Association: specialtyfood.com