Red Flags & Checklists & Vetting Advice

Choosing a Copacker

Finding the right co-packer is about more than pricing and production capabilities. You want a partner who understands your product, can grow with your business, and has the systems in place to protect your product, brand, and investment. Use this checklist when interviewing potential co-packers, and avoid the common pitfalls and headaches. Based on actual shit that has happened, I’m sharing this to ensure it won’t happen to you!

First things first:

  1. Do not choose the first one you talk to. Shop around.

  2. Get a vibe check with the people you’d be working with, not just sales.

  3. Get everything in writing.

1. Production capabilities & experience

Make sure they have the equipment, experience, and capacity to manufacture your specific product.

  • Have you produced products similar to ours before? Could we get the names of the companies?

  • Can we see examples or samples of similar products you've manufactured?

  • Do you have experience with our product category (food, beverage, supplements, etc.)?

  • Do you currently have the machinery and equipment required for our specific formula (mixers, weighing etc.)?

  • What are your minimum order quantities (MOQs)?

  • What is your typical production run size?

  • What is the typical size of your customers? Will our business be one of your smallest accounts?

  • Can your equipment accommodate future growth in production volume?

  • Are there any production limitations or special requirements we should know about?

Horror story:

Shipped pallets and pallets of heavy glass packaging to a copacker we hadn’t visited in person. We did not realize the address was a home address, rural, in the middle of nowhere, in an unmarked dirt road. The delivery truck got stuck in mud. They did not have a loading dock or a forklift, despite claiming they were ready to accept the delivery!

2. Pricing, fees & hidden costs

Understand the full cost of production, not just the quoted per-unit price.

  • What is included in your production quote?

  • Are there setup, changeover, cleaning, or line fees?

  • Are there minimum run charges or additional fees for smaller runs?

  • What are your raw material and packaging material storage fees?

  • How are storage fees calculated, and when do they begin?

  • Are there additional charges for receiving, handling, or moving materials?

  • What happens to leftover ingredients and packaging supplies after a production run?

  • Can leftover materials be returned to us? If so, what are the associated costs?

  • Are there fees for disposing of unused or expired materials?

  • What happens if we need to cancel or reschedule a production run?

  • What happens if supplies or ingredients are lost, damaged, or a mistake is made with the batch?

3. Packaging & materials management

A co-packer may lack experience with your particular packaging, or not even have the machinery needed.

  • Have you worked with our specific packaging type before?

  • Do you own the machinery needed to fill, seal, label, and package our product?

  • Will our packaging require special tooling, equipment, or setup?

  • Can we run a packaging trial or line test before committing to a full production run?

  • Who is responsible for sourcing packaging materials?

  • Do you only work with specific packaging vendors or are we allowed to bring our own?

  • Who verifies that supplied packaging materials are compatible with your equipment?

  • Who is responsible if packaging materials arrive damaged or are found to be defective?

  • How are packaging materials inventoried and tracked?

  • How are leftover materials handled and accounted for?

Horror story:

Asked the co-packer about kitting services and what kind of packing tape they can use. They told us they were cool with the kind of tape we wanted to buy. We paid extra for a specific core size for a tape roll sample to be sent to them, they approved, we ordered a bunch, and then they said they don’t actually know how to work this kind of tape. AFTER we had spent the money on it.

4. Quality control & safety

You need confidence that your product will be manufactured consistently and safely.

  • What quality management systems and standard operating procedures (SOPs) do you have in place?

  • Will you adopt our operating processes, or do we need to adjust to yours?

  • What quality checks are performed during production?

  • Do you have a documented quality assurance program?

  • What certifications or food safety credentials do you hold? GMP?

  • Are you compliant with the regulations applicable to our product category?

  • How do you handle batch records, lot coding, and traceability?

  • What testing is performed, and who pays for it?

  • How are production errors, defects, or deviations documented?

  • What is your process for handling customer complaints or product recalls?

  • Can we review your quality documentation or audit reports?

5. Production errors, liability & accountability

This is an important one. Establish who is financially responsible when something goes wrong. Because it will.

  • What happens if a production mistake results in defective or unusable product?

  • Who pays for rework, repacking, or a complete production redo?

  • What happens if the error is caused by the co-packer versus materials supplied by us?

  • Who is responsible for product loss, waste, or spoilage during production?

  • What happens if a production run does not meet the agreed specifications?

  • What insurance coverage do you carry?

  • What are your liability limitations?

  • Who is responsible for managing a product recall?

  • How are disputes over quality or production defects resolved?

Horror story:

Didn’t think to ask, but packaging and materials for the product were being stored in an offsite warehouse, not climate controlled, so everything came to us dusty and dirty and had to be cleaned before use, and some of it was unusable and ruined.

6. Formulas, intellectual property & confidentiality

Your formula and product specifications are valuable business assets. Make sure ownership is clearly established.

  • Who owns the product formula?

  • If you help develop or modify our formula, who owns the resulting formulation?

  • Can we take our formula and move production to another co-packer?

  • Will you sign a mutual NDA or confidentiality agreement?

  • How do you protect proprietary formulas, recipes, and manufacturing processes?

  • Can you manufacture a similar product for another client using our proprietary formula or specifications?

  • Who owns any custom tooling, dies, or other materials developed specifically for our product?

7. Communication & project management

A good manufacturing relationship depends on clear communication and accountability.

  • Who will be our primary point of contact?

  • Will we have a dedicated account or project manager?

  • Who do we contact if there's an urgent production issue?

  • How frequently will we receive production updates?

  • What is your typical response time for emails and questions?

  • How are production changes, delays, or issues communicated?

  • Will we have visibility into production scheduling and progress?

Horror story:

Had a whipped formula, with a small percentage of an oil mix to be added to the product. Not only did they accidentally add 10x the amount of oil needed, they did not actually have the machine to whip the emulsion, but were mixing the batch by hand, resulting in uneven dosing and clumps.

8. Timelines, scheduling & capacity

A production delay can mean missed retail opportunities, empty shelves, or lost revenue.

  • What is your typical lead time from purchase order to production?

  • How far in advance must production runs be scheduled?

  • What is the typical turnaround time from production to finished, shippable goods?

  • How much notice do you provide if a production date changes?

  • What happens if production is delayed?

  • Do you have seasonal capacity constraints or busy periods?

  • Can you accommodate rush orders?

  • How do you handle repeat orders and production forecasting?

  • Are you doing all your own manufacturing or are some things outsourced for third parties?

  • What would be the maximum capacity you can handle?

9. References & reputation

Don't just take their word for it. Talk to businesses that have actually worked with them.

  • Can you provide references from current or former clients?

  • Can you connect us with a client producing a similar product?

  • Can we speak with a client of a similar size and production volume to ours?

  • How long have your current clients typically worked with you?

  • What is your client retention rate?

  • Can we tour your facility?

  • Can we observe a production run or arrange a trial run?

Horror story:

Client met with a lovely copacker, they were excited, we were excited, it sounded great. Had asked about minimum orders, and they claimed to be okay with our small initial order. Until then suddenly they weren’t, and the order quantity needed to be 10 times more than originally agreed! This was a huge cost issue.

10. Contracts & business relationship

Before committing, make sure the agreement protects both parties and clearly defines expectations.

  • Is there a written manufacturing agreement?

  • If we have issues with you, how are those settled? In court? What state? Mediation?

  • Are production specifications, tolerances, and quality standards documented?

  • Are pricing, payment terms, and price adjustment policies clearly defined?

  • Are MOQs and production commitments documented?

  • Are material ownership, storage, and disposal terms included?

  • Are responsibility for defects, rework, and production losses clearly defined?

  • What are the contract termination terms?

  • Can we retrieve our formula, materials, inventory, and finished goods if we end the relationship?

  • Can we come visit in person?

11. Surprises and unforeseen things

Do they have a plan in place for the unforeseen issues and “oh shit” moments?

  • How are your relationships with your vendors, and are they reliable?

  • Do you have a plan for things like extreme weather hitting your facility, global conflicts affecting shipping, things like that?

  • In case of a recall, can you help? Do you have experience with audits and such?

  • Are any of your owners active on social media, and is there anything in your personal beliefs we should be aware of?

  • If laws change, are you keeping up to date on them and will let us know in advance?

  • If things like tariffs or fuel costs happen, how are those increased costs applied?

  • If we get sued for a food safety issue, allergen or something, can you help?

Horror story:

Ordered packaging from a copackers vendor, and had it custom printed. The 3rd party printer made an unacceptably bad print job, smudged and blotched. This is when they admitted to us being their first order of this custom printing, and that the vendor they had subcontracted to, had never printed on their glass before. We had to fight to get a full redo with a new vendor, and they needed to eat the cost. But the time delay was a huge bummer, and it was not clear who was responsible for making things right.

Copacker red flags to watch out for:

Bad vibes

Sales people can be sleek, but it’s really important if you vibe with them or not.

Watch out for:

  • Being late for meetings or hard to get a hold of

  • Handshake deals

  • Any other ickiness, trust your gut!

Vague promises

  • “Oh yeah yeah, we’ll figure it out”

  • They won’t provide references

  • Won’t do a walkthrough, or introduce you to the actual people working on your product.

  • Not itemized proposal

  • Won’t give you an idea of final costs before signing a contract

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Unfriendliness

  • Insider lingo they won’t explain

  • Making you feel stupid or annoying for asking questions

  • They treat your small production runs as a nuisance rather than a potential long-term relationship.

  • Making you feel like they’re making you a favor by even talking to you.

One final recommendation

I'd encourage clients to use this checklist to compare at least three co-packers, rather than choosing based on the lowest quote. Like with anything in life, the cheapest might not be the way to go. A co-packer that charges more but has better quality controls, reliable communication, and fewer hidden costs may actually be the more economical choice. If it sounds like too good to be, it probably is.