Co-Packing and Private Label- Which Should You Choose?
Deciding whether to hire a co-packing company or a private label depends on the needs of your food company. They may seem similar on the surface, but there are some crucial differences that could determine how helpful one or the other would be for you. Dure Foods offers both of these services, but this information can help you with what kind of service you want. Here are two questions you should ask when choosing between co-packing and a private label.
Who owns the product?
One significant difference between co-packing and a private label is who actually owns the product, recipe and process of making the food. In the case of a co-packing company, all of this will need to be provided by the business that hires them. This makes co-packing more flexible, since you could find one that makes the recipes that you have already established yourself.
For private labels, the company already has their own product, and buys the ingredients for your business. They can shift somewhat to suit your needs, and make the food under your company label, but the private label owns the recipes. This could be a better choice if you do not want to create recipes, cooking styles or ingredients yourself, but want another company to do it for under your brand name.
What do you need before hiring?
For co-packing, your business has the rights to the recipes and formulas that are served, so the co-packing companies can be hired anytime provided you have recipes for them to work with. This requires more work on your part, since they will need specific instructions. Co-packing takes more work, but the upside is that they will make your product under your label. That gives you complete control over both the brand and how it is made.
Keep in mind that the private label you hire will retain the rights to the recipes and formulas of their food. If you want to serve the same food on a different occasion, you would have to hire the company again. This would work better for specific events since the recipe couldn’t be repeated all the time. This does save work on your part, since most of the food production will be done for you.
If you hire a co-packer, you own both the product and the business label. If you hire a private label, you own your business label, but the private label owns the product. A private label can save you time from creating your own product, but also prevents you from owning the product yourself.
If you need help with deciding whether to hire a co-packer or private label, contact us at Dure Foods. We can provide either one for you.
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