Do you use the terms “co-packing” and “private label” interchangeably? Many people do, but this is an incorrect application of the terms. The two methods are quite distinct. Private label in Ohio involves different processes than the tasks performed by a co-packer in Ohio. Here’s an overview of each of these terms to distinguish the difference.
A co-packer in Ohio takes on the task of both manufacturing a good and packaging it for another company. A mutually agreed upon contract guides this work. The contract typically states that the co-packer will produce the goods as if the other company had manufactured them. This type of arrangement is also called a contract packer.
This setup is often used when a company has a product they’d like to bring to market, but doesn’t have the machinery, space or other resources to manufacture it themselves. The co-packer in Ohio provides these resources for a fee, and the paying company gets to bring their product line to consumers under their own name.
Private label in Ohio refers to selling products under another company’s brand name. In this scenario, a company has a product that they’d like to sell, but they don’t have a strong branding presence in the marketplace. They may also lack the capabilities of manufacturing and packaging the product. To get their product to market, they simply place it under another brand. In these cases, the contributing company maintains the rights to their product and formulas, even though the product is sold under someone else’s name.
Private label in Ohio can also refer to placing an ingredient or component of a product in another company’s product without attribution to the contributing company. For example, a pizza company may use a specific brand of cheese in all of the pizzas they produce, but the cheese company name is not included in the marketing and labeling of the pizzas. However, the cheese company still benefits from increased sales volume as the pizzas sell.
Why would anyone agree to this type of arrangement? As mentioned above, co-packing is often chosen due to lack of resources. Company A doesn’t have a facility to manufacture their product, so they rely on Company B to produce and package it for them. This minimizes the cost for Company A. It also limits their liabilities, as Company B is responsible for anything that happens at the facility.
Private label in Ohio can help in a similar manner, by reducing manufacturing costs. It can also improve sales, as the cheese and pizza example demonstrates, even if the brand doesn’t gain exposure.
Olivamed LLC is your go-to source for co-packing and private label in Ohio. Consider us your oil boutique packing company for commercial distribution. Our oils come from Italy, Spain, Greece, Morocco, Argentina and Tunisia to provide the best quality for retail, food service and private labels. We carry a variety of oils, including olive, extra virgin olive, canola, soy and sunflower, so our clients can blend to create their own signature brand. Call now for a free quote!
Categorized in: Labeling