Top Questions to Ask a Co-Packer Before Signing a Contract

Posted by Damian Roberti on

Before signing a contract with a co-packer, asking the right questions is critical to ensuring the partnership meets your needs and expectations. Drawing from years of experience in working with co-packers, here’s a comprehensive list of questions to guide you. These questions cover every aspect of the co-packing process, from production capacity to quality control, and will help you make an informed decision.

1. What is your production capacity, and can you scale with my business?

  • Why it matters: You need to know if the co-packer can handle both your current production volume and potential growth. If you’re starting small but planning to scale, you want to ensure they can increase production without compromising quality or creating delays.
  • Follow-up questions:
    • Do you have a minimum and maximum order quantity?
    • How much lead time do you need to scale production?

2. What is your experience with products similar to mine?

  • Why it matters: A co-packer experienced with your type of product will have the expertise to handle the specific manufacturing and packaging needs it requires. Whether it’s a particular consistency, ingredient handling, or shelf-life challenges, you want them to be familiar with these nuances.
  • Follow-up questions:
    • Can you provide examples of similar products you’ve worked with?
    • How did you address specific challenges with those products?

3. What certifications do you hold (e.g., Organic, Kosher, Non-GMO, Gluten-Free)?

  • Why it matters: Depending on the product you’re producing and the market you’re targeting, certain certifications may be necessary. Ensuring your co-packer holds the appropriate certifications (e.g., USDA Organic, FDA compliance, HACCP, or SQF) will help you meet regulatory requirements and appeal to specific consumer bases.
  • Follow-up questions:
    • Are you certified by any third-party auditors for food safety (e.g., GFSI, BRC)?
    • Can you meet specific allergen or dietary restrictions?

4. What is your minimum order quantity (MOQ) and how flexible is it?

  • Why it matters: Understanding the MOQ is critical, especially for smaller brands that may not need large production runs initially. Some co-packers are more flexible than others, and you need to ensure their minimum fits your current needs without overextending your resources.
  • Follow-up questions:
    • Can the MOQ be negotiated for startups or initial test runs?
    • How often do you re-evaluate the MOQ as demand increases?

5. What are your lead times for production, and how do you handle scheduling?

  • Why it matters: Production lead times and scheduling can affect your ability to meet demand, fulfill orders on time, and keep your business running smoothly. Understanding the timeline from placing an order to product delivery helps avoid delays.
  • Follow-up questions:
    • What is the typical turnaround time from the moment an order is placed to when it’s ready to ship?
    • How do you manage production during busy seasons or periods of high demand?

6. How do you handle quality control, and what are your food safety protocols?

  • Why it matters: Maintaining consistent product quality is essential for your brand’s reputation. You need to ensure that the co-packer has robust quality control systems in place to catch issues before products leave the facility.
  • Follow-up questions:
    • How often do you conduct internal audits or third-party inspections?
    • What are your procedures for identifying and addressing quality issues?
    • How do you handle product recalls or food safety incidents?

7. What are your packaging capabilities, and can you accommodate my specific packaging needs?

  • Why it matters: Different products require different types of packaging (e.g., jars, pouches, cans, bottles). You’ll want to confirm that the co-packer has the necessary equipment and expertise to package your product the way you envision.
  • Follow-up questions:
    • What types of packaging materials do you work with?
    • Can you customize packaging to meet specific branding or marketing requirements?
    • Do you offer sustainable or eco-friendly packaging options?

8. What are the total costs involved, including hidden fees?

  • Why it matters: It’s important to get a complete breakdown of all costs to avoid surprises down the line. This includes production costs, packaging, setup fees, storage, and any additional costs like product reworks or packaging changes.
  • Follow-up questions:
    • Are there additional fees for changes in production runs or last-minute orders?
    • How do you handle increases in ingredient costs or other fluctuating expenses?

9. How do you manage supply chain logistics and ingredient sourcing?

  • Why it matters: Co-packers may either source ingredients for you or require you to provide them. Understanding how they handle procurement and logistics ensures that production won’t be disrupted due to supply chain issues.
  • Follow-up questions:
    • Do you have relationships with specific suppliers for raw materials or ingredients?
    • Can you handle custom ingredient sourcing, or do you rely on a set list of suppliers?

10. What are your policies regarding intellectual property and confidentiality?

  • Why it matters: Your recipes, formulas, and processes are valuable intellectual property (IP), and you must ensure they are protected. Co-packers should have non-disclosure agreements (NDAs) in place to safeguard your proprietary information.
  • Follow-up questions:
    • How do you ensure confidentiality and IP protection with your other clients?
    • Can you provide a sample NDA or confidentiality agreement to review?

11. Can you provide references from other clients?

  • Why it matters: Talking to other clients who have worked with the co-packer gives you a clearer picture of their reliability, professionalism, and quality. It’s one of the best ways to get an honest assessment.
  • Follow-up questions:
    • Can I contact any current or former clients who manufacture similar products?
    • What are some success stories from businesses that have scaled using your services?

12. How do you handle product testing and sampling before full-scale production?

  • Why it matters: It’s essential to test the product and ensure it meets your quality standards before moving into full-scale production. Understanding the co-packer’s process for sampling and testing helps you avoid costly mistakes later.
  • Follow-up questions:
    • How many sample runs can we perform before finalizing the product?
    • What is your process for making adjustments if the sample isn’t perfect?

13. What happens if there is a production issue or delay?

  • Why it matters: Production delays can cost you time, money, and customers. You need to know how the co-packer handles issues and what contingency plans they have in place.
  • Follow-up questions:
    • What are the most common production delays you encounter, and how do you address them?
    • Do you offer compensation or discounts if production issues cause delays?

14. How do you handle product recalls or food safety incidents?

  • Why it matters: In the event of a recall, the speed and efficiency of how it’s handled can make a significant difference to your brand’s reputation. A solid recall plan in place demonstrates the co-packer’s commitment to safety.
  • Follow-up questions:
    • What steps are involved in a recall, and how do you communicate with your clients?
    • Have you handled product recalls in the past, and if so, what was the outcome?

15. Can we negotiate the terms of the contract?

  • Why it matters: Co-packers typically present standard contracts, but many terms, like MOQs, lead times, and exclusivity, can often be negotiated. Ensure you have room to make adjustments that best suit your business model.
  • Follow-up questions:
    • Are there terms we can revisit after a trial period (e.g., MOQ, lead times)?
    • How do you handle early termination or changes in production volumes?

Conclusion

These questions will give you a detailed understanding of how the co-packer operates and whether they are a good fit for your business. Asking the right questions upfront can save you from potential headaches later and ensure a smooth, long-term partnership that supports the growth of your food business.