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Information @ a Glance


  • Contract 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.
  • “Co-packing can be a lucrative business, Under-utilization of equipment is expensive, so being able to use the machinery [for co-packing] is a good opportunity".


  • 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.
  • Co-packing 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”.
  • Co-packing 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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