Co – Pack Evaluation to Enter Private Brand Business
A very large CPG Contract manufacturer wanted to expand into the Private Brand Industry because of shrinking co-pack sales and margins.
As a true contract manufacturer, the company had no Knowledge of what was needed to service the retail private brand business sector.
A comprehensive analysis and evaluation was performed on the manufacturer’s infrastructure. This included reviewing production capabilities, limitations and capacities on 15 manufacturing lines; non-proprietary formulations, packaging and ingredients; internal procurement, customer service, logistics & warehousing.
The extensive review identified significant infrastructure deficiencies and financial investments needed. The manufacturer’s customers provided all their own proprietary materials and there were no internal supply chain services. The required investments in capital and resources to service retail brand customers proved too great under their worsening fiscal condition. Based on the review, the company decided not to undertake a private brand business model.
For additional information, contact Mike Hackbarth at Mike@IntlExpertise.com.