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.
Summary
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.
Follow the link to visit our website: https://durefoods.com/
https://durefoods.com/wp-content/uploads/2021/05/Dure-Foods-private-label-vs-copack.jpg7201280Dure Foodshttps://durefoods.com/wp-content/uploads/2013/04/logo-2.pngDure Foods2021-05-20 11:16:012021-06-09 14:09:03Co-Packing and Private Label- Which Should You Choose?
Make no mistake, there will be ripples felt in the food supply chain as the waves of the current pandemic settle. But what can we expect?
It’s a fact, people have to eat. At the time of this writing, the North American food supply chain is more or less intact. There are no obvious signs of shortage, other than the inexplicable absence of toilet paper and perhaps some low cost food staples such as pasta.
It would seem the call for calm and assurances that there’s plenty of supply has not eased consumer anxiety over the potential of their favourite perishable and non-perishable brands disappearing from the shelves.
In our time of “social distancing”, having the cupboard and fridge filled with our food favourites may become critical. We may have to make critical decisions as to what’s really important. We will be double-thinking gluten-free, sodium-free, dairy-free, no sugar added, plant-based meat, vegan, non-GMO, or rain forest alliance certified products. Not that they aren’t essential to some dietary needs, but for most of us they’re more like “nice to have”.
The largest food brands have been struggling in recent years to maintain their share position. It’s going to be extremely challenging for large corporate-directed food manufacturers to place more stress on their businesses by quickly filling orders and pushing supply-chains to deliver.
Those who are marginal in the best of times will probably not survive, regardless of size. The next four to six critical weeks will shake out the dust leaving a clean slate for those with the foresight, and the resources to fill the gap.
Beyond having an exceptional logistical strategy, the most critical element in order fulfillment is keeping reliable and skilled labor in place. The connection for all supply-chain elements working effectively is people. Maintaining a healthy supply chain labor force is now critical.
Walmart, Amazon, and a host of other companies, particularly in delivery services, have announced they’re hiring thousands.
Ultimately, forecasting has been a critical tool in keeping the supply-chains intact. COVID-19 has tested even the most sophisticated forecasting technology.
Consumers will quickly tire of all the rice, pasta, beans and canned goods they’ve hoarded. We will eventually miss having our favourite indulgences and begin replenishing.
In adding up the variables and thinking through the classic “Bull Whip” forecasting theory, no one it seems has connected the unprecedented dots that make up the whiplash that’s coming.
With respect to those who supply the food chain, what we can predict with relative certainty is increased agility, transparency, and broad contingency plans.
Data on consumer trends, demands and behaviours must be shared – leveraging purchase power through holding back proprietary data won’t serve the industry. Solutions like innovative sharing hubs will build a stronger food ecosystem for everyone.
What happens if man of our food manufacturers, suppliers, and restaurants close for good? Is this the new age of home cooking with an alternative set of cupboard staples? Or an opportunity for entrepreneurs to step in and take advantage of the landscape. Or both?
One thing is for certain though, people gotta eat. What they pull off the shelves and how it got there will be an interesting matter of history.
https://durefoods.com/wp-content/uploads/2020/03/How-Will-Coronavirus-Impact-the-Food-Chain.jpg7201280Dure Foodshttps://durefoods.com/wp-content/uploads/2013/04/logo-2.pngDure Foods2020-03-30 14:44:112021-06-09 14:09:12How Will Coronavirus Impact the Food Chain?
Co-Packing and Private Label- Which Should You Choose?
in Packaging, Private and White Labelling/by Dure FoodsDeciding 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.
Summary
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.
Follow the link to visit our website: https://durefoods.com/
How Will Coronavirus Impact the Food Chain?
in Health and Science/by Dure FoodsMake no mistake, there will be ripples felt in the food supply chain as the waves of the current pandemic settle. But what can we expect?
It’s a fact, people have to eat. At the time of this writing, the North American food supply chain is more or less intact. There are no obvious signs of shortage, other than the inexplicable absence of toilet paper and perhaps some low cost food staples such as pasta.
It would seem the call for calm and assurances that there’s plenty of supply has not eased consumer anxiety over the potential of their favourite perishable and non-perishable brands disappearing from the shelves.
In our time of “social distancing”, having the cupboard and fridge filled with our food favourites may become critical. We may have to make critical decisions as to what’s really important. We will be double-thinking gluten-free, sodium-free, dairy-free, no sugar added, plant-based meat, vegan, non-GMO, or rain forest alliance certified products. Not that they aren’t essential to some dietary needs, but for most of us they’re more like “nice to have”.
The largest food brands have been struggling in recent years to maintain their share position. It’s going to be extremely challenging for large corporate-directed food manufacturers to place more stress on their businesses by quickly filling orders and pushing supply-chains to deliver.
Those who are marginal in the best of times will probably not survive, regardless of size. The next four to six critical weeks will shake out the dust leaving a clean slate for those with the foresight, and the resources to fill the gap.
Beyond having an exceptional logistical strategy, the most critical element in order fulfillment is keeping reliable and skilled labor in place. The connection for all supply-chain elements working effectively is people. Maintaining a healthy supply chain labor force is now critical.
Walmart, Amazon, and a host of other companies, particularly in delivery services, have announced they’re hiring thousands.
Ultimately, forecasting has been a critical tool in keeping the supply-chains intact. COVID-19 has tested even the most sophisticated forecasting technology.
Consumers will quickly tire of all the rice, pasta, beans and canned goods they’ve hoarded. We will eventually miss having our favourite indulgences and begin replenishing.
In adding up the variables and thinking through the classic “Bull Whip” forecasting theory, no one it seems has connected the unprecedented dots that make up the whiplash that’s coming.
With respect to those who supply the food chain, what we can predict with relative certainty is increased agility, transparency, and broad contingency plans.
Data on consumer trends, demands and behaviours must be shared – leveraging purchase power through holding back proprietary data won’t serve the industry. Solutions like innovative sharing hubs will build a stronger food ecosystem for everyone.
What happens if man of our food manufacturers, suppliers, and restaurants close for good? Is this the new age of home cooking with an alternative set of cupboard staples? Or an opportunity for entrepreneurs to step in and take advantage of the landscape. Or both?
One thing is for certain though, people gotta eat. What they pull off the shelves and how it got there will be an interesting matter of history.