In this episode host Elisa Louis dives deep into the world of co-packers with guests Jason Luedtke, Director of Business Development at ZoRoCo Packaging, and Garrett McBride, VP of Operations at Smirk’s. This insightful conversation sheds light on the vital role co-packers play in the food and beverage industry and how businesses can establish successful partnerships.
Understanding the Co-Packing Landscape
The U.S. food and beverage co-packing industry, projected to reach $40.3 billion by 2030, is essential for many food startups. Co-packers provide infrastructure, expertise, and scalability opportunities for brands, enabling them to focus on growth while ensuring quality and efficiency. This conversation will help industry insiders better understand how they can leverage co-packing opportunities.
Co-Packer vs. Co-Manufacturer: What’s the Difference?
According to Jason, the primary distinction between co-packers and co-manufacturers lies in the level of processing:
- Co-Packers typically handle packaging—moving products from bulk to retail-ready formats.
- Co-Manufacturers add more value by performing manufacturing processes such as baking, mixing, or emulsifying.
For brands, understanding these differences helps them choose the right partner to meet their needs.
Building a Successful Co-Packer Relationship
Both Jason and Garrett emphasize the importance of trust in co-packer partnerships. Key factors for success include:
- Transparency – Open communication about expectations, capabilities, and potential challenges.
- Quality Assurance – Ensuring food safety and regulatory compliance through strong auditing and quality control processes.
- Operational Fit – Matching the co-packer’s capabilities with the brand’s needs, including equipment compatibility and allergen restrictions.
- Scalability – Aligning production capacity with business growth to avoid overproduction or inventory shortages.
- Geographic Considerations – Choosing a co-packer located near key distribution hubs to minimize logistics costs.
Challenges and Solutions in Co-Packing Partnerships
For brands struggling with their current co-packer, common pain points include missed fulfillment, quality issues, and a lack of scalability. The experts advise:
- Early Issue Resolution: Address problems proactively through consistent communication.
- Written Agreements: Establish clear contracts outlining responsibilities and performance expectations.
- Knowing When to Move On: If a partnership consistently fails to meet needs, it may be time to seek a better fit.
Trends in the Co-Packing Industry
The food industry is continuously evolving, and co-packers must stay ahead of trends. Some notable movements include:
- Rising Demand for Protein: Consumers seek innovative, plant-based, and alternative protein sources.
- Traceability and Sustainability: Increased focus on regenerative agriculture and ethical sourcing.
- Clean Label and Allergen-Free Products: More brands prioritize transparent ingredient lists and allergen-friendly manufacturing.
- Regulatory Compliance: A shift towards natural color alternatives following FDA rulings on artificial dyes.
A Winning Partnership: Smirks and ZoRoCo
A prime example of a successful supplier-co-packer relationship is the longstanding partnership between Smirks and ZoRoCo. Their collaboration is built on mutual trust, transparency, and shared goals. This synergy enables them to efficiently source ingredients, optimize logistics, and deliver high-quality products to brands worldwide.
January & February 2025 Market Report Highlights
Macadamias: Prices rebounded; Kenya’s export ban impacts market stability.
Walnuts: Crop shortages lead to significant price spikes.
Almonds: Reduced yield due to high fertilizer costs; market remains stable.
Cashews: Shortages in West Africa; prices expected to stay firm.
Pecans: Hurricane damage causes a major supply drop; prices remain high.
Coconut Sugar: Delays in Indonesian exports affect supply availability.
Sunflower Seeds: EU inventory is tight; U.S. supply offers relief.
Quinoa: Low raw material availability in Peru and Bolivia; price increases anticipated.
Coconuts: Weather disruptions impact global supply; costs likely to stay high through mid-2025.
Final Episode Thoughts
Strong co-packer relationships are the backbone of successful CPG brands. By prioritizing transparency, operational alignment, and adaptability to market trends, businesses can build lasting partnerships that drive growth and efficiency. As Jason and Garrett illustrate, the best partnerships are based on mutual respect, problem-solving, and a shared commitment to excellence.
For more insights, visit ZoRoCo Packaging or connect with Smirks at smirks.com. Contact Smirks directly with questions or to request a sample at what’snew@smirks.com.
Stay tuned for our next Get the Scoop with Smirks episode!