When Co-packaging is Right for Your Business

Co-packaging can be an extremely helpful assistance in many cases, but how do you know when or if your food business is ready for it? This is a question that we get at Dure Foods quite often. Here are some reasons why co-packaging is beneficial for a business and if your business is a good fit for it.

What is a co-packer?

A co-packer is a company that can manufacture food for a client. Working with a co-packer is great for smaller businesses that are not able to afford a larger factory or warehouse to produce food at a mass scale or for businesses that want to focus on expanding their business that does not include building a food packing facility. Co-packaging allows companies to build their business without having to spend the large amount of money that mass manufacturing would require.

Reasons to Use a Co-Packer

Experience and Practice
A co-packaging company will know the most efficient means of buying and producing food based on previous experience. If your company wants to focus more on the business end of things, food production can be handled by the co-packing company. Additionally, food packing companies have knowledge about the most cost-effective ways of producing food, so if you hire the right food packaging company, your business will save money on food purchases. Co-packaging requires money, but a good co-packaging company can also help you save money in other areas.

Keeping up Demand on a Larger Scale
If you have any interest in expanding your business, but are not able to keep up with the higher level of demand, it might be time to upgrade to co-packaging. Expanding your business can also expand the amount of customers you can reach. For many businesses, operating a large staff with multiple locations can be far too much to handle, and would not be a realistic strategy. Co-packaging offers an effective middle-ground that prevents you from being overwhelmed by operating a large business while also relieving you from not having to do everything yourself.

Work with Professionals
If the co-packaging company you hire is BRC certified, as we are at Dure Foods, then there is a guarantee that you are working with people that are qualified for the job and know how to perform it without instruction. Being BRC certified means that the company is aware of food safety management and adheres to food health standards, so you’ll know that there will be no risk to the customers, yourself or your business. If you are considering hiring a co-packaging company, these qualifications are a good guide to see which ones are the most legitimate.

If you are looking to get involved with a co-packer, give us a call at Dure Foods. We would love to talk to you about your project and see if it is a fit for both of us.

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.

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.
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