Co-Packing vs. Private Label
Do you know the difference?
Most don’t understand the difference between Co-packing and Private Label. We’re here to help break them down and simplify the distinction, so you can better understand Co-packing and Private Label, and which category you fall under.
What is Co-packing?
Co-packing means the formula is your proprietary formula, being manufactured and bottled only for your business under a contractual agreement. This is a common method for individuals owning a product formula to be bottled for market without the investment of owning a manufacturing facility.
There are 2 different ways to co-pack:
Option 1: You can bring your own proprietary formula to your co-packer of choice to produce and bottle for you.
Option 2: You can deliver your already manufactured product in drums or totes for your co-packer to bottle. In this case, the co-packer shouldn’t need to have the formula.
However, the Co-packer should be certified with the FDA, and to maintain their FDA license, they will require a Certificate of Analysis for each container of product being delivered. This can be researched as to how to create one, or your co-packer can explain to you how to create this and what guidelines to follow.
In either of the above two options, you will retain all rights and ownership of your proprietary formula. Normally, both parties involved will sign a Non-Disclosure Agreement (NDA) preventing the Co-packer from sharing the formulation with others without prior approval.
What is Private Label?
Private label is a product that is developed and manufactured by a contractor or third-party manufacturer under the partner’s (your) brand name.
As the partner, you specify everything about the product – it’s flavor profile, what goes into it, how it is packaged and what the label looks like. This allows the brand owner (you) to surpass the investment of a manufacturing plant and focus on the product itself and the sales and marketing campaign to go along with it.
There are 2 different ways to Private Label:
Option 1: You bring an idea to the beverage company, and they will develop the formula for you.
Option 2: You bring a sample of what you would like for the beverage company to replicate
Exclusive Option to Son Beverage Company: You can use ANY existing Jell-Craft product to promote your brand and product identity. Meaning, we would put your label on our existing formula.
There you have it! The difference between Co-packing and Private Label.