Using a Copacker

This packaging tip is an excerpt from “Choosing and Using a Copacker” by John E. Rushing, Ph.D. It is published by North Carolina State University.

North Carolina State University’s Department of Food Science ranks among the top food science departments in the country. This recognition is the result of excellence achieved in all areas of the university’s mission: teaching, research, and extension.

What is a copacker?

Copackers manufacture and package foods for other companies to sell. These products range from nationally-known brands to private labels. Entrepreneurs choose to use the services of copackers for many reasons. Copackers can provide entrepreneurs with a variety of services in addition to manufacturing and packaging products. They can often help in the formulation of the product. The copacker may function only as a packer of other people?s products or may be in business with his own product line. They may be, in fact, manufacturing several competing products. The range of services available from a copacker will vary depending on the size and experience of the copacker and the type of facilities and the capacity of their plant.

What are the advantages to using a copacker?

There are many advantages to using a copacker. The most obvious is to reduce startup costs for the food entrepreneur. Capital costs of equipment and facilities can be enormous. Using a copacker allows one to more accurately predict overhead costs due to manufacturing. Using a copacker can also reduce lead-time in getting a product to market. Choosing a copacker who already has processing lines in place almost makes manufacturing, packaging, and labeling a food product a matter of placing an order. The copacker may have experience with similar products which is transferable to the product you wish him to copack.

With established business, the copacker will usually have the proper regulatory certifications, lines of credit for purchasing supplies and ingredients, insurance, food industry contacts and sources to get the job done efficiently. They should be familiar with quality parameters, food safety requirements, and shipping needs. They will have the proper facilities for receiving and storing ingredients and can arrange storage of finished product. Some copackers will offer other services for entrepreneurs such as product stability testing, nutritional labeling, formulation assistance, ingredient substitution, and other product development services. In addition, they can offer suggestions on packaging and labeling the product, usually based on the types of filling, capping and labeling equipment in their facilities. They can direct you to professionals who can assist you in the design and marketing of your product. They usually offer the advantage of buying supplies and ingredients in bulk. They can arrange palleting and shipping to meet the needs of the buyer. costs due to manufacturing. Using a copacker can also reduce lead-time in getting a product to market. Choosing a copacker who already has processing lines in place almost makes manufacturing, packaging, and labeling a food product a matter of placing an order. The copacker may have experience with similar products which is transferable to the product you wish him to copack.

What types of obstacles might an entrepreneur face?

In addition to the above advantages for using a copacker, food entrepreneurs may face a variety of obstacles to manufacturing their own product. They may not possess the experience and expertise necessary to manufacture a food product. There may be zoning laws, which restrict certain business activities on the entrepreneur’s property. Loss of economies of scale for the entrepreneur may be such that the cost of the ingredients and packaging may be prohibitive.