Co-packing takes a tremendous amount of pressure off any business. The knowledge of having a partner who will handle the particulars of packaging a product, be it a pharmaceutical or household product, offers the business owner peace of mind.
In few places is their value more apparent than the food-service industry, where companies like Beyond Meat are embracing the practice. Food is a sensitive product that comes with many additional requirements that something like textiles, for instance, would not. In the following article, we’ll show you how to find a good co-packer, but first, let’s examine why you should.
Facilities Already Established
It takes the right facilities to handle food ingredients and items to eliminate the possibility of contamination. A co-packer of food dips, for example, needs to be capable of making sure that flavors stay with like flavors.
With facilities and support already established for different products, a co-packer is able to maintain essential standards. They are also able to guard against safety issues.
Familiarity With Regulatory Requirements
There are many regulations that govern packaging and shipments. A co-packer of tea, for example, could have to work within the confines of international shipping agreements. Being familiar with all regulatory requirements connected to your industry enables the co-packer to take some of those legal burdens of operating a business off your shoulders.
Save Their Clients Money
When you find a co-packer with all the ingredients in place for the food-service industry, you’re going to save money. Those savings will come from multiple angles.
- Legal fees
- Facility fees
- Materials and supplies
It also frees you up to focus on the business. Now that you know why you should be looking, here are three tips to find a good one.
1. Investigate
Finding the right co-packer is going to require more than a simple Google search. You’ll need to start talking with representatives from the firm. Ask for references and a list of current client contacts.
Furthermore, you’ll want to visit the facilities of any co-packing companies on your shortlist. That means incurring travel expenses, but it’s well worth it for your own peace of mind.
2. Mind Profit Margins
A food co-packer should be in business to help you stay in business. They should have an understanding of your profit margins and a willingness to negotiate to help you get or stay ahead.
Do not cut your profit margins razor-thin. You will need the excess cash to expand your operations, so give serious thought to how working with the co-packer will affect this.
3. Explore Options
It’s never a good idea in business to put all your eggs into a single basket. A quality co-packer can help you accelerate growth, but they can also bring all that growth crashing down if their operations take a bad turn.
Explore backup options. Send samples of business to these backups to keep them interested as your main co-packer handles the primary line of business.
Co-Packing Is Essential for Growth
Co-packing isn’t a necessity if you’re in a hyper-niche market and are comfortable with your level of growth. The moment you want to take it to the next level, however, it’s time to explore your options. For more tips on how to grow your business, check out some of our additional posts!
