Co Packing Agreement Template

A food company`s main assets are its trade secrets, logistics, sources of supply, quality assurance, food security practices and professional risk management. All these bases are heavily included in an in-depth consultation on the agreement with the package. It is recommended to define the specifications and instructions of the product in the agreement on co-packaging. Specifications must include information on design, packaging and labelling, the complete list of parts (parts list) and case and pallet configuration. The information can be provided in technical sheets and attached to the agreement as part of the exhibition. When it comes to the law, in most cases, the manufacturer is legally responsible for all risks associated with a product, even if the co-packer played a role in managing those risks, so you need to make sure that your agreement is watertight and explicit. In addition, the agreement should specify which party is responsible for the costs associated with additional services, such as. B as additional storage, pallet rental, urgent orders, waste treatment and product reception. The agreement must indicate who is responsible for quality control and how often product inspections must be carried out and recorded.

The Co-Packer must check at least all co-packaged products prior to release to ensure that the product meets the specifications. The agreement should also specify the factors for which a product becomes defective or non-compliant and which covers the costs of disposing or post-retirement of rejected products. Distributors must share their product formula with their co-packer, so co-packer agreements are a kind of intellectual property license. How a formula is shared with a co-packer is indicative of the discipline with which a company deals with its business secrets. Start negotiations with a large NDA that requires permanent confidentiality for trade secrets. When the co-packaging agreement is concluded, all changes should be awarded to the distributor forever. It is a challenge for a company to maintain the integrity of the product when manufactured in a third-party supplier. A food company needs two things to get the quality of the product in co-packaging: detailed specifications and product samples for each non-production. The product formula must be comprehensive and the specifications should be as objective as possible. Salinity, viscosity and pH are examples of appropriate descriptors, but the more of them in the co-pack agreement, the better.

For the purposes of the survey, a distributor must receive representative samples of statistically relevant products sent to their QS team.