This post is in collaboration with RodeoCPG & Rescale. Today we’re tackling one of the most common questions from emerging brands: “Should I look for a new manufacturer?” Whether you’re moving on from self manufacturing, need to switch co-manufacturers, or need to add additional facilities, we’ll help you understand if you’re ready to search and then give you a quick path on how and where to start. Let’s get into it!
Why I’m able to speak about this topic: I've personally visited over 100+ food and beverage manufacturers as Director of Operations at Trader Joe’s as well as emerging brands (200k-$20M revenue) and have guided dozens of brands through the co-manufacturing search process. Please let my 10+ years of hard-won learnings guide you to greener pastures! Let’s kick it off with search readiness.
Are you ready to search?
There are two archetypes here - the “first time searcher” and the “looking for another” type.
For the first time searcher, a typical story looks like this: you’ve been renting space in a shared kitchen (checkout this search engine if you're looking for one), but you’ve recently had an uptick in sales (e.g. a new distributor or new food service account) and you can't keep up with demand. Although readiness isn’t a science, there are a few common benchmarks we see from brands that run successful, competitive searches:
- You’re selling enough product to spend at least ~$15k with a co-manufacturer per run (actual figure depends on product category, but this is a good rule of thumb)
- You have sales momentum. In other words, co-mans will feel excited about your growth potential based on your sales to date and upcoming PO commitments. You've also really found product-market-fit with your product - you know your current formulation is getting traction, so you no longer need the flexibility to tweak things on a daily or weekly basis.
- You’ve refined your recipe / product / packaging far enough to articulate exactly what you need from a co-manufacturer (this, too, can have some wiggle room, but coming in with a solid formulation is important)
If you’re a first time searcher and you meet all 3 criteria, you’re ready. Skip ahead to see how to start!
Brands simply looking for another co-man are a different story. Most brands conduct some co-manufacturing search, on average, every 6-9 months. So if you’re established at a co-man, but want to change due to reliability, price, or just to build redundancy, you’re not alone. Given your existing relationship, your situation is more delicate. Before starting a new search, take stock of your current situation:
- Can your manufacturer effectively scale with you? What’s the breaking point? Not sure? Visit their facility - tips on how to do an effective site visit here.
- Can you cut your costs by creating production redundancy in a new geography? Selling in NYC, but making in LA? Maybe time to consider an east coast option.
- What are your current contractual obligations? (tips on how to set yourself up well with proper agreements here and how to avoid “exclusives” here)
- Is there a plan to adjust costs over time? By far the best way to drive down your costs long term is by creating competition. Your co-man knows this, and if they value your business they’ll give you updated bids as you grow.
The answers to these questions can help you define exactly who you’re looking for in your next search. Is it a partner to launch a new item line? New packaging format? Simple redundancy? New geography? It’s so important to build a long term strategy into this effort, otherwise you’re wasting your time.
Founders are busy, and starting a new co-man search is likely not your favorite activity, but in the wise words of our advisor (Trader Joe’s and Whole Foods private label pioneer) Kim Greenfeld, “once you have your first co-manufacturer, you should immediately begin looking for your second.” This doesn’t mean drafting contracts and conducting site visits, but it does mean collecting bids.
How do I start?
Ok, so you’ve decided it’s time to search. You have 3 main options:
- DIY / Free. For a lot of reasons that I’ve tried to eloquently summarize here, co-mans are hard to find. Tapping your network, attending trade shows, and hitting up the variety of free “lists” can be a good starting point. The most important thing you can do with a DIY approach is to collect multiple options. This typically means initial outreach to 20-30 options, RFP sharing with 5-10 matches, and trials with 2-4. If you find 1 lead, keep sourcing! This is by far the biggest error we see from a DIY search. Brands come to us after a long search with ballooning cost bids or failed trails from their one and only lead, and they’re discouraged.
- Consultants. If you can afford it, go for it. To get a list of co-manufacturing options will run you $4k-$15k depending on the level of vetting. To run your process from outreach to contract will likely cost $25k-$50k. Consultants will manage the process for you, and given that you should be focused on sales as a founder, this is a great way to spend your money. Word to the wise: never book a consultant without a resounding referral. Ever.
- Rescale. Scared of DIY rookie mistakes and unable to afford a consultant? That’s exactly why we started Rescale. We fall right in between the two alternatives. We’re much less expensive than a consultant and we’ve streamlined the process. We’ve integrated a robust list (like using a consultant’s rolodex) with search-specific CRM features to keep you organized and keep your labor hours low, all while baking in expert tips (like these) and templates (NDAs, RFPs, SLAs) to ensure you don’t fall into the first-timer traps. If you need more hands on consulting-lite support, we have an advisory upgrade option you can access ad-hoc.
Whichever path you choose, lean on our blog posts for support, and if you have unanswered questions, let us know!
Check out more free background knowledge from RodeoCPG and Rescale to help you navigate the complexities of growing your food & bev business.
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Founded by a former Trader Joe’s supply chain leader, Rescale streamlines your F&B co-manufacturer search. With our vast AI-updated & vendor verified database, CRM tools, and expert-crafted templates (NDA, project briefs), brands get to R&D trials 2x faster and bring in bids for 30% less . We’ve also launched databases for logistics, warehousing, and ingredient sourcing, all including in one low monthly fee. Check out our website (www.tryrescale.com) to learn more or sign up.
