20 Jun CO-PACKING VS. PRIVATE LABELING
Often misunderstood and confused, co-packing and private labeling are two distinctly different services. Although it’s true that both services lead to a finished-product/private labeled product; yet, there are major differences in terms of formulation ownership, processes of production and service pricing.
Co-packing refers to a customer’s proprietary formulation, which Copper Canyon Coffee Roasters produces under a contractual agreement. The customer retains all rights to, and ownership of the proprietary formula. In fact, as part of the process, Copper Canyon Coffee Roasters signs a non-disclosure agreement forbidding us to produce or share the customer’s formulation without prior approval. In this process, the customer is given the option to source their ingredients and prepay for them or request Copper Canyon Coffee Roasters to do so. Copper Canyon Coffee Roasters will charge a co-packing fee which will vary from project to project.
Private labeling refers to Copper Canyon Coffee Roasters manufacturing a product of its own formulation, and then packaging it under the customer’s private label. In some cases Copper Canyon Coffee Roasters may develop a private label formula exclusively for a customer or adjust a current formula to suit the customers’ needs. In either case, under a private label agreement, Copper Canyon Coffee Roasters retains ownership on the formula, sources & procures the ingredients and then produces the product.