What Are the Best Co-Packer Businesses?

Co-packer company staff packing vegetables
How Do Co-Packers Pack Vegetables?
July 23, 2021
small pot of plant shaped like growing business revenues arrow
Revenue-Boosting Tips For Co-Packing Companies
September 14, 2021
men shaking hands and making business deal with a co-packer

The recent surge in online shopping is changing the way businesses package products. Walk into any major warehouse shopping center like Costco Business Center, and you’ll see an array of new packaged products.

Do you feel like you are behind the curve when it comes to packaging your products for marketing? Your sales volumes are growing, but how do you know where to begin for continuing growth?

Well, the secret is out on the value of co-packaging for businesses. There’s no better time to find the right co-packaging for your business.

What is co-packaging, and how will it help my business plan?

Keep reading for a guide to choosing your ideal co-packaging partner.

Co-Packing Explained

First, let’s get a clear understanding of co-packaging and how it works to help your business. 

co-packers checking inventory in a warehouse

Co-packers base their business model on re-packaging products for their clients. Co-packers are an important next step in developing your business administration.

A contract packager will take your product and provide these new skews on your behalf. For example, your business plan combines two or more of your existing products to make a new one. But the new plan needs extra expenses to roll out the new product.

Benefits to Outsourcing

Cost is always a large concern when implementing new product lines. So, if you plan to blend products for a new launch, you need equipment to help the process.

Businesses are not always prepared to spend large amounts on new equipment. Yet, contract packagers have the means to turn your products into new ones.

Another issue might be warehouse space. New products need proper storage facilities. Co-packers ease the burden of warehouse growth. They provide space for your product until it reaches the market.

There are costs involved in hiring a co-packer. However, business analysts will see those costs are less severe than restructuring your operation. In short, your co-packaging professional keeps your supply chain manageable.

Increases in sales must match your business’s ability to produce.

Unfortunately, growing pains come with added pressures. But, the cost of labor for a new line can be expensive. But you don’t want that to stop you from launching new, exciting products.

You have a great new idea for a product, and you want to be first on the market. Hire the best co-packaging partner for your type of business, and save the hassles. Instead of retooling your operation, the co-packer will create the product you designed.

As you create new product ideas, there’s a partner in place to package your inventory with the new concept. It is also easier to test products and change them as needed.

This freedom of creativity helps your business focus on the next steps to growth. Experts in packaging handle the logistics while your team looks at new opportunities.

Visibility

juice packagingPartnering with professional packagers will also give your line a cohesive look. Visibility is often overlooked when more of your products are on the shelves.

The best co-packager businesses discuss your plans with you. They become an active ingredient in your success. They work with your business analyst to complete your vision.

After all, your co-contractors success depends on you. Good co-packaging businesses have creative ideas of their own to enhance your vision. In addition, their expertise in storing and packaging goods is a resource you want to explore.

Co-packagers that specialize in your field know the key touchpoints in your industry. For example, co-packaging companies working with fresh produce are sensitive to environmental issues. Therefore, they will help you promote a similar image to your customers.

A consultation before signing on paves the way for mutual benefit. This means you will have a clear vision for your product before discussing it with the co-packer.

The Fine Print

With clear goals defined, you are better prepared to discuss your contract. It’s in both parties’ interest to understand the terms of your agreement.

Still, it is best to use a broker to negotiate the contract. A qualified mediator will ensure the contract is acceptable to both sides.

There are also government regulations to consider with every product. Co-packers in your field will already follow many of these guidelines. Discuss them at length in case new restrictions need addressing.

The food industry, for example, often has guidelines that change. Therefore, your chosen co-packager should be up to date on these new regulations. This includes the market where you intend to sell the product.

packed vegetables

Costco Business Centers are all over North America. Your contract partner must understand the restrictions in each region. In short, sign the contract only when you are comfortable with these parameters.

Take a particularly close look at your business insurance policy. Be sure your coverage includes these types of contracts. The best agreements come with the fewest surprises.

You want this business relationship to last. So. make sure the contract works well.

Businesses Working in Unison

Choose a contract packager that sources materials to enhance your product best.

Businesses with a common goal make the best relationships. Co-Packaging partners that suit your product will excel at providing their best.

In the food industry, trading partners must trust each other because so much is at stake. These are the products we all consume daily.

So, if you’re for the best co-packager businesses for your company, give us a call today for a consultation. We’re here to help you grow your cold chain program

Let’s chase the harvest together.