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In-House Packaging vs. Co-Packer
Christoph Recher, Sales Manager, and Thomas Czioska, Head of Sales & Marketing, of LoeschPack explain how to choose between in-house packaging and a co-packer. Recher says high-volume manufacturers usually stay in-house to control the whole process, while smaller or starting companies may use a co-packer. Czioska notes that new products often launch with a co-packer, and that equipment choice follows from how the product should be presented on the shelf.
Key takeaways
- Christoph Recher says high-volume manufacturers usually prefer in-house packaging because they can control the whole process.
- For smaller or starting companies, a complete packaging and manufacturing line is a tremendous investment, so Recher suggests going with a co-packer.
- Thomas Czioska notes that new products often start with a co-packer to test the market, and that the desired shelf presentation should drive the equipment choice.
Common questions
- When should a food manufacturer use a co-packer instead of packaging in-house?
- According to Christoph Recher of LoeschPack, it depends on packaging volumes and varieties. High-volume manufacturers usually prefer to stay in-house so they can control the whole process. Smaller or starting companies that cannot afford a complete packaging and manufacturing line, which is a tremendous investment, should consider a co-packer.
- Should a new product launch start with a co-packer?
- Thomas Czioska of LoeschPack says companies very often start a new product with a co-packer to find out whether the market is there and whether consumers really want to buy it. If the launch is successful, they normally think about bringing production back into their own company.
- How do I choose between a flow wrapper, a VFFS machine or pre-made pouches?
- According to Thomas Czioska of LoeschPack, the decision starts with the product itself and how you want to present it on the shelf. That determines the packaging style, which then tells you what kind of equipment you need. LoeschPack can help with ideas, but he describes the final choice as a marketing decision.
Transcript
Tom Rougeux, President, Piepenbrock Packaging
When a packaging engineer is considering automation, he has a choice to stay in-house with his production equipment, or he can find somebody to package the product for him. What makes that call for the engineer? How do they think about keeping it in-house or outsourcing packaging?
Christoph Recher, Sales Manager, LoeschPack
I would say it depends a little bit on the packaging volumes and the varieties. If you're a manufacturer that has a very high volume, you would always prefer to stay in-house, because then you can control the whole process. But when you're a smaller company and you cannot afford a complete packaging and manufacturing line, because that's a tremendous investment, especially if you're starting, then you should go with a co-packer.
Tom Rougeux
What about the volume of product that they're producing? Does it have any bearing on whether or not you should do it in-house or outsource? The volume of products that you're making, if it's an introductory product or maybe it just doesn't have a big market, does that make a difference?
Thomas Czioska, Head of Sales & Marketing, LoeschPack
Normally, yes. Companies, very often when they start with a new product, they're starting with a co-packer to figure out if the market is there, if the consumer really wants to buy the product. In case it's a successful start, then they normally think about to bring it back in their own company and produce it.
Then you have it under control, as Christoph mentioned.
Tom Rougeux
I know we work with new customers who have even new-to-world product, new-to-world companies. Where do you start? Do you start with the film?
Do you start with the container that it comes in? Do you start with the equipment that you want to buy? Do you start with the volume?
Where should a company start when they think about this?
Thomas Czioska
First of all, it's a question of the product itself. It's a question also, it's a huge impact in terms of marketing. How do you want to present the product in the shelf?
This gives you the idea or the numbers, the packaging style which you want to have, and then you can decide which kind of equipment you need.
Tom Rougeux
I see. The marketing and brand positioning has a lot to do with the packaging.
Thomas Czioska
Absolutely, yes.
Tom Rougeux
How does a company decide whether or not they need a flow wrapper or a vertical form fill and seal machine, pre-made pouch or a simple semi-automatic setup? How do they go through the process of deciding which kind of machine should I buy? Is that something you help decide?
Will you help the customer decide what they're going to buy?
Thomas Czioska
Of course, we can help them, give them ideas how they can make their product and how they want to present it, but at the end of the day, as I mentioned, it's a marketing topic, and he has to decide how he wants to make the presentation in the shelf.
