Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.
Issue link: https://specialtyfoodmagazine.epubxp.com/i/802137
As a specialty food producer, you will likely work with a co- packer at some point in the lifecycle of your business. Whether it's to move into large-scale production, create new products, or obtain additional certifications, the task of finding the right fit can be challenging. Here, we've compiled advice from the Specialty Food Association's Resource Guide, "Working with a Co-Packer," released in Fall 2016. The full guide is available for download via the Learning Center on specialtyfood.com. Preparing Yourself "If you cede [your] brand to a co-packer and, in the worst case sce- nario, the wrong co-packer, it can ruin your brand's image. Being prepared can save you time and money and help to ensure your reputation remains intact," says Michael Tuccillo, vice president, accounting & treasurer officer for the Specialty Food Association and former general manager of specialty pate producer Les Trois Petits Cochons. Finding a co-packer with synergies that can bring out the best in your brand and help you grow your business most likely will not occur overnight. The right partner will become a relationship that you should aspire to be in for years—and one you can grow together. "You have to set yourself up for success," says Brad Denis, national sales manager–club, L&S; Packing Company Inc. "You want to make sure your co-packer is in sync with your projected growth. Otherwise, you may find yourself looking for a new one down the line." Do Your Homework A co-packer's services can run the gamut—from manufacturing and warehousing your products to formulating recipes and designing labels. Some may even ship the product directly to your customers. But, just like hiring a new employee, you need to be commit- ted and vigilant about vetting a prospective partner, no matter what services they offer. "Get to know them and their business practices, and make sure you're of the same mindset," Tuccillo notes. Start the search by talking to your peers or connecting with someone with whom you share a mutual industry friend, client, vendor, or broker. This strategy can be much more beneficial than just browsing brochures and websites. Once you narrow the search and have visited facilities, don't be shy about checking references. Talk to one or more of their current clients about strengths, weakness, and how reliable they are. (This may have to be done discreetly in your industry circle, as many co- packers can't disclose clients due to non-compete and confidentiality agreements.) Also, look into the health of the overall business—ask whether or not they have had any recalls. Most importantly, adds Denis, check out the integrity of the co-packers' current products. "Buy the product yourself, taste it, and look at label continu- ity and how the product is represented on the shelf. Make sure the company meets your standards, and that what they're producing is good. If you make or are planning to make a premium product, you want a co-packer who is doing the same." Know Minimums, Capabilities, and Consider Location Determining if a co-packer wants a volume guarantee—and knowing you can meet it, or not—may be the deciding factor when choosing your co-packer. "If you only need 200 cases, and the co-packer's minimum is 1,500, you need to look elsewhere," Denis says. Most large co-packers have high minimum runs, while smaller co-packers offer smaller runs. If the co-packer that will agree to your terms is across the country, think hard before choosing them. Though it might be worth the extra shipping charges, ask yourself if you have the finances to make frequent trips to their facility if things QUESTIONS TO ASK YOURSELF BEFORE DIVING IN • Is my product too niche in terms of ingredients or packaging to use a co-packer? • Can I find a co-packer who does something similar? • Are my runs too small to meet their minimums? • Is my product properly tested in the marketplace? • Do I need to go to market fast? • Am I willing to change anything about my recipe or compromise? "Make sure the company meets your standards, and that what they're producing is good. If you make or are planning to make a premium product, you want a co-packer who is doing the same." SPRING 2017 83