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Co packing Coffee – Pros & Cons

Co packing Coffee – Pros & Cons

Since we have recently launched our Coffee Co Packing services and have been taking calls and answering questions, the pros & cons are something that have come up. Upon calling, the customer has been looking for a solution to their problem or a way to figure out how to grow their business. Things can range from reducing the price of the coffee they are currently using or finding a better packaging solution than what they are currently offering. This is where we begin uncovering and probing further to find their specific needs. When it comes to finding to co packing coffee, there can be some pros & cons, and if we don’t meet them head on in the beginning, it may be a hard road ahead.

One of the things we want to sort out first, is are WE the right company to serve your needs? Are you the right co packing coffee partner for us? As we all know relationships are a two way street, and when you think about co packing coffee, BOTH companies have their reputation on the line when it comes to business. If the job is unsatisfactory to the end user, then we all are held responsible. Sitting down in the beginning helps us find out ways to make things run smoothly.

Not to scare anyone off, but there are both pros & cons; and to dismiss either a pro or a con up front would be remiss to say the least. There is a relationship being formed which needs to have a two way understanding. Taken from an excerpt from Consolidated Label’s post in 2012, they answer some of the issues when choosing a co packer.

Potential Pros Potential Cons
Reduce startup costs for the food entrepreneur. Loss of control over product and its manufacture.
Predict overhead costs of manufacturing. At the mercy of the co-packer’s schedule, costs and method.
Reduce lead time in getting the product to the market. Product must conform to co-packer’s equipment and facility limitations.
A co-packer may be able to provide their experiences with similar products. Co-packer may be producing a competitor’s product.
Co-packers usually offer the advantages of buying supplies and ingredients in bulk. Loss of confidentiality. Formulations, ingredients and product specifications must be shared with the co-packer (this can be protected, but never assumed).
If they have processing lines in place, it can make manufacturing and packaging the product as easy as placing an order. Disagreements are not easily resolved. Disputes and litigation could tie up ingredients, supplies and finished product for extended periods of time (and possibly spoiling in that time).
Some co-packers have an in-house research and development department. This can produce considerable savings in time and costs. Co-packers can be expensive. They must recover direct and indirect costs of manufacturing and packaging problems, but they also need to make a profit.

As a coffee co packer, we are not here to sell you a service or job that is not going to have longstanding benefits for both companies. For you, the finished product, on time and completed to your satisfaction. For us, your satisfaction and the beginning of a long term coffee co packing business relationship. On both ends, satisfaction is a must. Being up front from the beginning is the best way to accomplish this.

One of the things we do is focus on YOUR needs. Do you need bags? Do you need us to source coffee for you? Do you already have labels? Do you know what sort of roast profile your customers prefer? What it is that you do or don’t need, we will discuss the terms and work from there, tailoring a job to suit your needs, not ours.

We do not offer “package deals” that get you into purchasing something you don’t need or is not a requirement for your job. No minimums or set amounts to  since things like that are usually only beneficial to one side of the relationship. As you can see from the above chart, coffee co packing can be made out to be an unscrupulous business if there is no system of checks and balances in place. In other words we are not going to offer to run a job until you are satisfied with our capability, knowledge, and machinery. Are we knowledgable, do we have contingencies or a timeframe in case a machine breaks or needs repairs? Did we allow enough time for your film to be produced and delivered? Is the coffee you are looking for a seasonal item, and can we suggest or offer any others? The answers to these questions should be “Yes” even though nothing is a guarantee, we want to cover these points with you when we sit down to uncover your needs when we meet.

A coffee co packer is your partner since their name and reputation are at stake as well. If you don’t get the sense that the company you are co packing coffee with is meeting your needs, perhaps it’s time to start asking some questions.

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