Did you know that a majority – up to 80% – of food products are being packed by contract packing services? If you have a food manufacturing facility and have been thinking of enlisting the services of a contract packer, you can be within the majority. The process of engaging a contract packing partner is much easier nowadays, and it provides you with a feasible solution that is relatively free from risk as well. But it doesn’t mean that once you have found a co-packing partner, you can already rest on your laurels and let them handle your packaging requirements without any further thought.
The agreement drawn up between you and your contract packing partner should fit all your needs, and it should include pertinent details that outline your best interests as a manufacturer. In addition, your agreement should be made in such a way that it protects you as well as your product. Are you a food product manufacturer planning to go into a contract with a contract packing company? Here’s a detailed list of your contract packing agreement inclusions.
Your contract packing agreement should address your intellectual property rights, first and foremost, as confirmed by experienced contract packers like www.cannonpacking.co.uk. Your agreement should stipulate that your contract packing partner will not use your blend/recipe/formula once the agreement is over so they can produce a product that competes with yours.
Marketing and labelling
In addition, your agreement should include a stipulation that your contract packer will adhere to your precise formula/recipe. This prevents mislabelling and misbranding, and whatever agreement you have for the formula should also go on your product label.
Any product recall should be coordinated and paid for, and your agreement should state who will be responsible for such incidents. In line with this, your contract should include details that prevent your contract packing service from changing any ingredients or dealing with other suppliers of your ingredients without informing you. Changing ingredients increase the risk of undeclared allergens in various food products, which is one primary reason why products are recalled.
The precise details of your agreement with your contract packer should all be in the contract, and these details should include the overall price of the product, where you will have it delivered, and the amount included in each order.
You would need access to whatever documentation on food safety is available for your product. You should also have the right to assess and inspect the facility of your contract packing partner.
Ideally, your contract packer should have the same insurance amount you have assured to provide to retailers and distributors.
Many aspects can go wrong if your agreement with your contract packer isn’t thorough and detailed. It includes problems such as intellectual property theft, not adequately executed recalls, incomplete or late delivery of goods, the aforementioned undeclared allergens, and even an adulterated or misbranded food product. It is, therefore, crucial for you to make sure that your agreement with your contract packing partner is as comprehensive as possible. With the formal agreement, you will not only mitigate and avoid risks – but you can also have a more beneficial and productive relationship with your contract packer.