What to Know About Co-Packing

September 23, 2021

If you’re running a private label edible oil business, the right packaging not only lends credibility to your brand, but it also ensures products arrive safely and efficiently to their intended destination. Many private label companies use the concept of co-packing in their operations.

What is co-packing, and what are some of the key reasons to co-pack? Read on to find out everything you need to know.

Co-packing explained

Co-packing actually refers to a relationship between two firms: a firm that sells a product (firm A) and a firm that packages the products (firm B). A co-pack agreement allows firm B to handle all packaging processes, allowing the company creating the product to focus on production rather than on the details of getting the products out the door and onto shelves.

There is a wide range of packaging, branding and logistics concerns that production firms just don’t have the time and capabilities to deal with themselves, which is why a dedicated packaging-and-logistics company can be a big help. A formal co-packing agreement between the two parties will outline the relationship and the services that will be rendered by the logistics firm.

Food and beverage co-packing

The concept of co-packing lends itself well to a wide range of industries, but the companies that stand to benefit the most from this relationship are food and beverage producers. Producers in the food and beverage industry—particularly those that produce consumables that require bottling—benefit greatly from co-packing. Without a dedicated packaging-and-logistics company to handle the movement of the product, food and beverage companies would have major difficulty getting their product out the door and into the hands of consumers.

Co-packing benefits

Now that you have an understanding of what co-packing is, it’s time to dig into the benefits of this relationship between producer and packager. They include:

  • Reduced cost: Production companies in all industries benefit from co-packing. It’s a faster, more efficient way to move product instead of creating an in-house team to handle the job. Many production companies also can’t afford to invest in the technology involved in packaging and logistics.
  • Scalable: If a company is experiencing a surge in demand for their products, a relationship with a co-packer is invaluable. Reputable co-packing companies can scale up or down as needed, giving your business great flexibility.
  • Design: Many co-packing companies offer invaluable design assistance that helps production companies create cohesive branding for their products. It gives businesses a bit more cachet and credibility, and it keeps them from relying on the services of a separate service. Co-packing is an all-in-one solution that’s convenient and affordable.

Now that you understand the concept of co-packing and the reasons to co-pack, you can better determine whether outsourcing your packaging and distribution tasks is the right move for your edible oil business.

Contact Olivamed LLC today to learn more about the process and benefits of co-packing and how it can save you time, money and hassle and allow you to focus on producing a great product, rather than laboring over how you’ll get it into the hands of customers.

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