Packaging, better known as Co-Packaging.
- A co-packer,
or contract manufacturer, is a food processor that agrees to produce
another company's product within their own facility.
- Co-packer will
provide you with a breakdown of the fixed and variable costs.
- Co-packing by
its very nature is demanding. Requirements are often heavily labour
intensive, the need for consistency and high quality of output is
paramount and, most importantly, the work has to be completed within
a very short timeframe, often with only a few hours notice.
can be a lucrative business, Under-utilization of equipment is
expensive, so being able to use the machinery [for co-packing] is a
- The maker of
an antioxidant ingredient that is losing market share to CO meat
packaging has waged a public attack, leveraging fears of carbon
monoxide to prevent further loss of market share prevent share.
- Co-packing is
inherently a low-margin, high-volume business. Manufacturers
typically charge 5% to 15% over production costs when they sell
finished goods to a marketer.
sales were higher in the first quarter of some year because the
Company was producing a yogurt and fruit smoothie retail product for
a major food products company.
- For the
Co-packing option, variable costs per unit are $3.05 per bottle
constantly. For the “in-house” option, fixed costs are $285,000. For
the Co-pack option, there are no fixed costs.
- Not every food
brand has its own canning and packing facility.
- It’s not just
for large supermarket chains. Co-packing “is quite helpful for
people getting started in specialty food production”.
also helps keep costs down for shoppers.
- The most
obvious advantages of using a copacker is to reduce start up costs
for the beverage entrepreneur and decrease costs for those who have
been in production for years.
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