Episode Transcript
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Speaker 1 (00:00):
Welcome back everyone. Today's deep dive is something a lot
of you have been asking about, and honestly, I'm kind
of excited to dig in myself. We're talking all things copackers.
Sounds fun, it does, right. So the source material you
gave me lays out seven count them seven major benefits
for food businesses thinking about going the copacker route. Yeah,
(00:20):
but like with anything in business, I'm guessing there are
two sides to this coin.
Speaker 2 (00:24):
Oh for sure. I mean, on the surface, co packers
can seem pretty straightforward, but there are definitely some layers there,
some things to think about beyond just those you know,
initial upsides.
Speaker 1 (00:35):
Well, before we go full deep dive, can you just
back up for a sec remind us what a co
packer actually is and why a food biz owner might
even consider working with one.
Speaker 2 (00:44):
Okay, So, like, the easiest way to think of it
is that a copacker is basically a factor you can rent,
but specifically for food companies. They handle all the production,
all the packaging, all that stuff, so you, the business owner,
you don't have to go out and buy all this
crazy expensive equipment or hire a whole bunch of people
right away, gotcha.
Speaker 1 (01:01):
So they're like the wizards behind the curtain making all the.
Speaker 2 (01:04):
Magic happen exactly. And you know, one of the things
that makes them so attractive, Like, one of the big
benefits is that they can save you a ton of money. Ooh.
Speaker 1 (01:12):
Cost savings always a good thing, especially when you're running
a business.
Speaker 2 (01:17):
Right, So imagine this, like you've got this killer cookie recipe,
small business, right, but people are going crazy for these cookies.
Speaker 1 (01:25):
Okay, I'm falling.
Speaker 2 (01:26):
So now you need to make a ton more cookies
to keep up with demand. But to do that, you'd
need like industrial sized ovens, huge mixers, all this packaging equipment.
You might even need to like rent a warehouse just
for storage.
Speaker 1 (01:40):
It's getting pretty intense. Yeah, a lot of overhead.
Speaker 2 (01:42):
It is. But a copacker they already have all that stuff,
all the equipment, the space, the people. So you're basically
you're tapping into their existing setup and saving yourself potentially
tens of thousands of dollars in startup costs.
Speaker 1 (01:55):
Smart so not just about saving money, but also about
using it wisely, especially when you're just starting out, right.
So cost is one thing, but I'm guessing there's more
to the story.
Speaker 2 (02:05):
There is another big plus and the source you gave
me talks about this too, is scalability. Like let's say
your cookies just blow up, everyone wants them. Can your
little kitchen handle that?
Speaker 1 (02:16):
Uh? Probably not without some serious construction.
Speaker 2 (02:19):
Yeah, but a co packer they've got the space, the equipment,
the people. They can ramp up production without you having to,
you know, build a factory in your backyard, so.
Speaker 1 (02:29):
You can ride that way of success without having to
scramble to expand your own operations exactly. That's huge, especially
if you're like really trying to grow fast. Okay, but
this is what I keep coming back to. Quality control. Yeah,
if I'm not there, like physically watching them make my product,
how do I know it's being made the way I
want it to my standards?
Speaker 2 (02:50):
Oh? Co packers are super serious about quality, Like they've
got whole systems in place to make sure things are consistent,
train staff, procedures. A lot of them even work with
independent lab to test everything and make sure it meets
all the food safety rules.
Speaker 1 (03:04):
Okay, so it's like having this whole team of experts
making sure every batch is perfect, meets all the regulations.
That's got to be a relief, especially for someone.
Speaker 2 (03:12):
New to the food biz it is, And that's the thing.
Co packers. They eat, sleep, and breathe food rigs, so
you don't have to stress about like ingredients, sourcing, or
labeling or all those crazy rules that can make your
head spin.
Speaker 1 (03:26):
So I can focus on the fun stuff, the recipes,
the branding, all that they handle the uh, less exciting
but important stuff.
Speaker 2 (03:33):
Exactly. They're like an extension of your team with expertise
that you might not have yourself. And they are actually
different ways to work with them, Like you could do
private label where they make the product and you slap
your brand on it, or contract manufacturing where you've got
more control over the recipe and the ingredients.
Speaker 1 (03:50):
Huh. So there's a lot more to it than I realized.
This is turning into a real deep dive.
Speaker 2 (03:55):
Oh yeah, definitely. And we haven't even talked about the
potential downsides, the things that can go wrong.
Speaker 1 (04:01):
Oh well, that sounds like a perfect place to pick
up next time. What do you say?
Speaker 2 (04:05):
Sounds good to me?
Speaker 1 (04:05):
All right, we'll be back soon to explore the other
side of the copacker coin. Don't go anywhere, and we're
back here, all right. So co packers, we talked about
the good stuff, the benefits. But now let's get real
still the tea, what are the downsides? What would go wrong?
Speaker 2 (04:28):
Okay? Yeah, so I mean no business partnership is perfect, right,
and working with a copacker it definitely comes with its
own set of challenges. And one of the big ones,
and this comes up a lot, is the control thing.
You're basically you're letting someone else take charge of making
your product your baby.
Speaker 1 (04:43):
Yeah, I can see how that would be tough. I mean,
you've put your heart and soul into this thing, this recipe,
and now someone else is making it right.
Speaker 2 (04:49):
And that comes with risk, Like what if they don't
really get your vision or their quality is not as
good as what you do yourself. What if there are
delays and now you can't launch when you wanted to,
or you can't fill orders.
Speaker 1 (04:59):
Okay, so those are or legit concerns. So what can
you do? Like, how do you make sure you're not
giving up all control? How do you protect yourself?
Speaker 2 (05:07):
Honestly, it starts with finding the right copacker. That's like
step one, and it's way harder than it sounds because
not all copackers are the same. Some they specialize, you know,
like maybe they're great with baked goods, but not so
much with drinks. Or maybe they've only worked with huge
companies and they don't get small businesses, so it's.
Speaker 1 (05:25):
Kind of like I don't know dating. Yeah, you got
to find someone compatible, someone who gets you and what
you're trying to do exactly.
Speaker 2 (05:32):
Due diligence is key. You really got to research these guys,
make sure they get your product, your brand, your whole vibe,
and ask questions. Lots of questions like have they worked
with similar products before? What's their quality control process? Like
how do they handle communication? Because communication is huge?
Speaker 1 (05:48):
Because so communication is key, compatibility is key? What else?
What other red flag should I be looking out for
when I'm like vetting these potential partners.
Speaker 2 (05:56):
Oh good one, watch out for moqs, minimum order quantities.
A lot of copackers, they'll have a minimum amount of
product they're willing to make, which if you're just starting out,
that could be a problem.
Speaker 1 (06:09):
Right, Like what if I can't afford to make that
much yet?
Speaker 2 (06:12):
Right, So that's something you got to talk about upfront.
Negotiations part of the game. You might find someone who's
willing to work with you, especially if they believe in
your product.
Speaker 1 (06:20):
You know, so it's about finding that balance right where
everyone feels good about the deal. Okay, what about money
co backers?
Speaker 2 (06:29):
They got to be expensive, right, Yeah, cost is definitely
a factor. I mean, besides what it actually costs to
make the product. They're usually set up fees too, especially
if you need special equipment or packaging, and then you've
got storage, shipping, all that.
Speaker 1 (06:43):
So basically, get everything in writing upfront, all the costs
so you can like actually figure out if you can
make money doing this.
Speaker 2 (06:50):
Oh one, Transparency is so important. Don't be afraid to
ask for a breakdown, you know, line by line. Make
sure it works with your budget, with your whole plan.
Speaker 1 (06:59):
Okay, and we talked about communication being a big deal.
How do you make sure that keeps going, that everyone
stays in the same page even though you know I'm
not physically there at the factory all the time.
Speaker 2 (07:10):
Regular check ins are key, Like don't just assume everything's
fine because you haven't heard anything. Schedule calls, ask for updates,
and if you can go visit the facility actually see
how things are running.
Speaker 1 (07:21):
Like pop in and say hi, see the operation with
my own eyes.
Speaker 2 (07:24):
Yeah, exactly. And you've got to set up like clear
communication protocols right from the start. Who's your contact person,
how are they going to handle feedback? What happens if
there's a problem. You got to figure all that out.
Speaker 1 (07:36):
So basically, be proactive. Don't just like send them my
recipe and hope for the best. Stay involved.
Speaker 2 (07:41):
Right, a good copacker relationship it takes work from both sides,
and even then, things can still go sideways, you know, delays,
quality issues sometimes even like they just they misinterpret the
recipe somehow. I know.
Speaker 1 (07:55):
That's like every food person's worst nightmare, my precious recipe
messed up.
Speaker 2 (08:00):
It happens. That's why you gotta have everything written down
black and white, the exact recipe, every ingredient, packaging guidelines, everything,
Leave nothing to chance and have a backup plan. What
if production gets delayed, what if there's a quality problem.
Speaker 1 (08:13):
So many what ifs. Getting a little stressed, just think
about all this. It's like a lot of responsibility.
Speaker 2 (08:18):
It is, but that's why we're talking about it, right,
So you're prepared. You know what to look out for
so you can protect your brand. And part of that
protection that's where the Copacker's insurance comes in. Product liability insurance.
Speaker 1 (08:29):
Oh right, right, you mentioned that before. Can you explain
what that is, like why it matters.
Speaker 2 (08:34):
So this insurance it protects both of you, you and
the co packer just in case something happens with the product,
you know, like a recall, maybe there's contamination or someone
has an allergic reaction. This insurance covers like legal fees, damages,
all that.
Speaker 1 (08:50):
So it's kind of like a safety net.
Speaker 2 (08:51):
Yeah, exactly, like an extra layer of protection. And you
absolutely got to make sure any copacker you're even considering,
they have this insurance, and you've got to understand how
it works. The details.
Speaker 1 (09:02):
Okay, so much to think about. It's easy to get
caught up in the excitement of like getting your product
made and forget about all the legal stuff.
Speaker 2 (09:11):
And that's why it's good to talk about it. Co
packers they can be amazing. They can help you grow
your business, reach more people, but it's not always easy.
It's complicated.
Speaker 1 (09:21):
Yeah, no kidding. We've covered a lot here. Control, communication, costs, contracts,
even insurance. It's like whoa, Yeah, choosing a copacker is
a big deal.
Speaker 2 (09:30):
It is a big deal. And before we move on,
there's one more thing I think we got to touch
on your goals, like your big picture goals.
Speaker 1 (09:39):
M okay, so how does working with a co packer
fit into like my overall business strategy, my vision for
the future all that.
Speaker 2 (09:48):
Right, So working with a copacker it can be awesome
for growth, but it needs to make sense for where
you want to go, you know, long term. Like if
you're all about like having total control over every single
step of production, maybe a copacker isn't the best fit.
Speaker 1 (10:01):
I get it's like outsourcing part of your business, you know. Yeah,
you got to be okay with that, with letting go
a little exactly.
Speaker 2 (10:06):
And it also depends on what you're making. Like if
your whole brand is about small batch, artisanal, handmade, you know,
working with some huge co packer, that might not make sense.
Speaker 1 (10:17):
It wouldn't really match the image. People might feel like
tricked or something.
Speaker 2 (10:21):
Yeah, exactly. Authenticity is important how you make your product,
it should match your brand, your story.
Speaker 1 (10:27):
So it's not just about finding someone who can make
my stuff, it's about finding someone who gets me, who
gets my.
Speaker 2 (10:33):
Brand one hundred percent. That's what you really got to
figure out what your goals are, what you absolutely won't
compromise on before you even start looking for a co packer.
Speaker 1 (10:42):
Okay, good advice, like have a plan, know where you
want to go before you start driving.
Speaker 2 (10:47):
Right, speaking of finding the right path, maybe we should
uh move on to the next part, talk about how
to actually find and vet these co packers because it
can be done and there are ways to make it easier.
Speaker 1 (10:59):
That's good to me. Stay with us everyone, we'll be
right back.
Speaker 2 (11:05):
We're back. Okay, co packers benefits, challenges, all that. But now,
like the million dollar question, how do I actually find
these co packers?
Speaker 1 (11:14):
Right? It can feel kind of overwhelming, like where do
I even start. It's not like they're just, you know,
hanging out on every street corner. Yeah, no, kidding. My
Google search history is probably looking pretty weird right now.
Lots of co packers plus my state, you know that
kind of thing.
Speaker 2 (11:29):
Oh, you don't have to go down that rabbit hole. Seriously,
put the phone down. There are like legit resources for this, websites, directories,
all kinds of stuff, specifically for connecting food businesses with
co packers.
Speaker 1 (11:41):
Okay, now we're talking like what give me the goods?
Speaker 2 (11:44):
So there are these online directories, right, basically databases of
co packers and you can filter them. You know by location,
the type of product they make, if they have certain certifications,
all sorts of stuff. Some of them even have like
reviews from other businesses.
Speaker 1 (11:58):
Okay, so it's kind of like Yelp, but for co packers. Yeah,
I can see who's got the best ratings, read what
other people have to say about them exactly.
Speaker 2 (12:05):
And another thing you can do is check out industry
associations like the Specialty Food Association. They have lists of
members who do co backing, and they have trade shows too,
where you can actually like meet these people face to face.
Speaker 1 (12:19):
Nice. Nothing beats a good handshake, you know, especially when
you're talking about something as important as your like your food. Baby.
But okay, let's say I've done my homework. I've found
a few that seem promising. What's next, all right.
Speaker 2 (12:34):
So now it's vetting time. This is where you really
got to get to know them, see if they're a
good fit, you know, beyond just what their website says.
Speaker 1 (12:41):
Okay, yeah, because everyone, let's go get on paper.
Speaker 2 (12:43):
Right, So you got to go deeper, reach out, ask
for a consultation. This is your chance to grill them.
Ask all those questions we talked about, experience, capacity, quality, control, communication, style, cost,
all that.
Speaker 1 (12:57):
So basically treat it like a job interview, but for
like my business partner.
Speaker 2 (13:02):
Yep, pretty much, And just like a job interview, it
goes both ways. They're checking you out too, making sure
you're a good fit.
Speaker 1 (13:07):
For them, right, got to make sure we vibe you know. Yeah, okay,
so consultations what else?
Speaker 2 (13:12):
If everything sounds good you know, on the phone or whatever,
then usually the next step is a site visit. You
actually go to their facility.
Speaker 1 (13:19):
See the operation and action, meet the team, get a
feel for the place.
Speaker 2 (13:24):
Yeah, pay attention to everything. Is it clean? Are they organized?
What's the vibe? Like? That tells you a lot about
a company that's like.
Speaker 1 (13:32):
Looking under the hood. Yeah right, make sure everything's running smooth.
Speaker 2 (13:35):
Right, and ask about stuff equipment, the production process, safety,
you know, even how they handle waste, especially if you're
like into sustainability and all that.
Speaker 1 (13:45):
Wow, it's amazing how much goes into this choosing a copacker.
I mean, yeah, it's not just about like can you
make my product? It's a whole thing.
Speaker 2 (13:51):
Oh, it's definitely a whole thing. It's about finding a partner,
someone who's invested in your success just as much as
you are someone who gets it totally.
Speaker 1 (13:58):
Well. I think this has been soon super helpful, you know,
really breaking down the copacker world. We talk benefits, challenges,
how to find them, all that. But before we go,
I'm just curious, like, what about the future of copacking.
What do you see happening in the next like five
ten years, Any trends, anything cool on the horizon.
Speaker 2 (14:17):
Ooh, that's a good question. The food biz it's always changing, right,
People want different things. New technology pops up. Co packers
they got to keep up. One thing I'm seeing is
more and more specialized co packers.
Speaker 1 (14:31):
Specialized like how.
Speaker 2 (14:32):
So think about all the like plant based stuff that's
huge right now, gluten free or even like those products
with I don't know, cricket, flower algae. You know, right
right now your average grocery store fix exactly, and not
every copacker can handle that. You need specific equipment, expertise,
those like.
Speaker 1 (14:49):
The copacker world is getting more niche experts and like
very specific.
Speaker 2 (14:54):
Things yep, exactly. And another thing, technology it's changing everything.
More automation, robots, data, all that stuff to make things
more efficient, more transparent, even like more.
Speaker 1 (15:04):
Customized, customized. Wait, what does that even mean.
Speaker 2 (15:07):
So imagine co packers that can make like personalized food
just for you based on I don't know your diet
or your preferences or whatever. It's not that far off.
Speaker 1 (15:16):
Honestly, that's kind of wild. Like the future of food
is happening right now. It is.
Speaker 2 (15:20):
Oh and one more thing, sustainability. That's huge now. People
want eco friendly, ethical co packers are starting to use
sustainable packaging, reduce waste all that. It's good for the planet,
good for business.
Speaker 1 (15:32):
I like that making the world a better place one
delicious product at a time. Well, I think that about
wraps it up for our copacker deep dive. So just
to recap, if you're thinking about going this route, choose
your partner carefully, do your research, ask all the questions.
Speaker 2 (15:47):
And remember there are going to be ups and downs.
It's not always easy, but if you find the right fit,
a co packer can really help you take your business
to the next level.
Speaker 1 (15:55):
Absolutely, and don't be afraid to, you know, embrace the future.
The food world world is always changing, new trends, new tech,
new possibilities, so stay curious, stay informed, and most importantly,
never stop creating deliciousness. Thanks for joining us, everyone until
next time,