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Entrepreneurial and Small Business Operations Commons

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University of Arkansas, Fayetteville

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Choosing And Using A Co-Packer, Pamela L. Brady, Steve Seideman, Justin R. Morris Jan 2009

Choosing And Using A Co-Packer, Pamela L. Brady, Steve Seideman, Justin R. Morris

Research Reports and Research Bulletins

Co-packing, also known as contract packaging, is when a company contracts with another company to manufacture and package foods that the original company will sell. Products on the market that have been co-packed range from nationally known brands to those sold under private labels. The use of co-packers has become extremely popular with entrepreneurs who have a product idea but lack the $100,000 or more needed to set up a manufacturing facility to produce the product. In addition, many entrepreneurs starting a foods business find that, in today’s market conditions, greater profits are achieved through sales and marketing innovations than …