For new beverage brands, a co-packer can be one of the smartest ways to get started. Instead of investing in your own production facility, equipment, and licenses on day one, you can partner with an experienced producer who makes your product for you. That frees up your time and capital to focus on what matters most early on: building your brand and finding buyers.
But not all co-packers operate the same way, and the details of how they work can make or break your ability to fulfill orders. Before you sign on, make sure you understand the answers to a few key questions.
Do they just produce, or do they store inventory too?
Some co-packers make your product and expect you to take it off their hands right away. Others will warehouse your finished goods and release them as you need them. Knowing which you’re dealing with tells you whether you’ll need to line up (and pay for) your own storage.
Are you selling under their licenses or your own?
Many new brands operate under their co-packer’s licenses at first, which can be a great shortcut. Just be clear on how that arrangement works, what it allows you to do, and what happens if you later want to move to your own licenses or a different producer.
Do they have a minimum shipment requirement?
This one is critical, and it’s where we see new brands get caught off guard most often. Even outside of LibDib’s model, very few distributors are willing to invest in large quantities of inventory, especially for brands with little or no sales traction yet. Your early orders are likely to be small. Too many times, we’ve watched a new brand land an exciting order, only to learn that their co-packer will only ship in full pallet quantities. Suddenly that first win becomes an order they can’t fulfill. Ask about minimums up front so you’re ready when buyers come calling.
We can help you find the right fit
LibDib has great relationships with a number of co-packers who are easy to work with and understand how our model works, including small, order-by-order shipments. If you’d like a referral, reach out to us at makers@libdib.com. Gold and Silver Members can also ask their Portfolio Manager for a recommendation.