Once you’ve established your business in local markets, you might want to expand your production process. When you do, you should consider working with a co-packer. The benefits of co-packing can be summed up in one concept: you can scale production up, without having to invest in additional staff and equipment.
Is it time to put your private label olive oil in the hands of more customers? Here’s why you should use a co-packer to expand your burgeoning business empire:
How co-packers operate
If you’ve never worked with a co-packer before, you might not understand how the process works. Co-packers work with newer brands as well as established companies. They can produce and package your products to your specifications, including special private label products.
Instead of investing in the equipment and staff that it would take to scale up production, your co-packer will take on the work. Your co-packer will sign a non-disclosure agreement to ensure your special formulations and the details of your unique products never reach the public—and more importantly, your competitors. The standard co-packing agreement protects you from negligence on their part, so you won’t have to worry about increased legal liability.
How co-packing benefits your business
There are a number of reasons you should use a co-packer:
- Increase your capacity: The biggest benefit of working with a co-packer is being able to increase your production capacity, without having to invest in expensive equipment and more staff. Take your private label to the next level, with far less risk.
- Reduce overall costs: Your co-packer does more than simply package your product. They also provide packaging and display design services, e-commerce and retail distribution, reverse logistics and more. They’ll take care of the physical product, so you can focus on creating the product itself.
- Take advantage of cutting-edge equipment: When you work with an established co-packer, you’ll get to take advantage of cutting-edge commercial-grade equipment—machinery and tools that you might not be able to afford on your own, as a small business.
- Faster turnaround: When demand starts increasing, your co-packer can help you meet it. Co-packers have the capacity to scale up production on a quicker turnaround than you could manage on your own. You’ll get to focus on the product and marketing—which in turn can further increase the demand.
- Professional expertise: Your co-packers are like another business partner. Not only do they bring extra capacity, quick turnaround, design services and commercial equipment to the table, but they will also have the professional expertise to advise you on production decisions.
- Certifications and compliance: Finally, when you work with a reputable co-packer, you can rest assured they’ll be up to date on all certifications and regulatory compliance. There’s no need to worry about the FDA, fair trade or organic certifications—your co-packer will handle all of that on your behalf.
When you’re ready to take your private label olive oil business to the next level, you can discover the benefits of co-packing firsthand. Call Olivamed LLC today to learn more about our services.
Categorized in: Co-Packing