Sep 15, 2023

Contract Manufacturer for Food - Basics and Tips & Tricks

Contract Manufacturer for Food - Basics and Tips & Tricks

Are you looking for a contract manufacturer for food? In this article, we'll show you the basics about contract manufacturing, the pros and cons of contract manufacturing, and what you should look out for.

Contract manufacturing briefly explained:

In contract manufacturing, a manufacturing company has products made for another company. Contract manufacturing usually covers the entire value chain of the food product.

This means that the contract food manufacturer is responsible not only for production, but also for quality assurance, packaging and, if necessary, logistics and distribution.

Contract food manufacturing - Here's what you should look out for:

If you're looking for a contract food manufacturer, there are a few points to consider:

  • Quality: Make sure the manufacturer maintains the same high quality standards that you strive for.
  • Price: Of course, price is an important factor when looking for a contract manufacturer. However, you should not only pay attention to the unit price, but also to the costs for quality assurance, logistics and distribution.
  • Reliability: make sure that the manufacturer can deliver regularly and deliver the products on time.
  • Service: A good contract manufacturer offers not only pure production, but also consulting and support for further development.

Made in Germany or contract production abroad?

Advantages and disadvantages of contract manufacturers in Germany and abroad.

Contract manufacturers abroad:

  • Favorable price
  • wide range
  • Many long supply chains, making quality assurance difficult
  • High risk of product piracy
  • Long delivery times

Contract manufacturer in Germany:

  • Higher price
  • Short supply chains, therefore good quality assurance
  • high quality standards
  • short delivery times
  • Good service

Find food for your brand instead of looking for contract manufacturers with KoRo Source

We have launched several D2C brands since 2008, including in the cosmetics sector, and have worked together with many different contract manufacturers.

We ourselves have often been faced with this question: Where can I find suitable products that match our brand?

Why does product development and production still have to be so lengthy and complicated today? Where can I find the right contract manufacturers?

That's why we founded KoRo Source in 2022.

We help you to create new products for your brand:

✓ find

✓ redevelop

✓ to launch

✓ and to scale.

Schedule a no-obligation video call and let's find out together where and how we can support you.

What is the cost of food product development?

The answer is: it all depends.

If you want to have a new food product developed, there are many factors that will affect your cost. For example, the type of food, the quantity you need and whether it is a unique product.

As a rule, there are either no development costs at all or they range between 500 and 1,500 euros - depending on the effort involved and the composition of the formulation.

In the vast majority of cases, contract manufacturers use these development costs to protect themselves from spending a lot of time and resources on development without an order being placed in the end.

Therefore, in most cases, development costs are credited and charged again when the order is received.

Difference between contract manufacturing and contract filling?

Contract filling is a sub-sector of contract manufacturing.

In contract filling, the product is filled according to the customer's recipe into the packaging specified by the customer.

The customer supplies the recipe, packaging and label, and the contract filler fills the product and applies the label specified by the customer.

Contract manufacturing includes contract filling as well as manufacturing the product according to the customer's recipe.

This means that the contract manufacturer is also responsible for the production of the product in addition to filling it. This is usually referred to as a full-service contract manufacturer.

Powder - the simplest production for contract production

Powders are easy to make and also easy to transport and store.

The production of powder is relatively inexpensive and contract manufacturing can also be carried out well.

Powders can be produced in many different package sizes and also have a long shelf life.

Contract manufacturing for food - What companies should bring to the table

The most reliable way to check the quality of production are certificates such as HACCP, IFS or ISO.

Another important point is hygiene. Contract manufacturers should be regularly inspected and certified.

The documentation of the production is also very important, here should be recorded exactly which raw materials were used and in what quantities.

This is important for quality assurance and can be traced in the event of a problem.