Three main steps to choosing a co-packer

Step 1: Create a list of what you expect from a co-packer

Establish your needs in terms of:

• product quantity and quality
• size and type of container
• cost per unit
• time-frame for completion.

Write clear instructions for:

• ingredients
• packaging
• regulatory compliance
• testing of product.

List any extras that would be helpful:

• product development
• formula development
• ingredient sourcing
• business expertise.

Assess your legal and insurance needs:

• talk to your experts.

Establish product distribution requirements:

• warehousing
• transportation
• export compliance.

Step 2: Evaluate possible co-packers

Create a list of processors who can produce your product. Look for processors who:

• produce similar products, or similar products with different seasonal requirements
• have excess capacity
• operate the type of specialized equipment you require
• meet the expectations you outlined in Step 1.

Find a co-packer now

Conduct a site visit with as many potential co-packers as possible. Look for:

• cleanliness and order
• recent inspection reports
• quality control certifications
• financial stability
• willingness to meet your requirements.

Find out who else has used the co-packer, and talk to them about their experiences.

Step 3: Create a Contract

Once you've chosen a co-packer, write up a contract. It should spell out who is responsible for:

• supplies
• ingredients
• processing
• packaging
• labelling
• finished product.

Your contract may also need to cover:

• record keeping
• handling of raw product
• inventory control
• testing and product approvals
• liability insurance and workers' compensation
• documented quality control processes
• process scheduling and delivery dates
• payment terms
• non-compete agreements.

Have your lawyer review the contract before signing.