vs. Private Labeling
Lets Clear the Air
Often misunderstood and confused, co-packing and private labeling are two distinctly different services. Although It’s true that both services lead to a finished-product/private labeled product; yet, there are major differences in terms of formulation ownership, processes of production and service pricing.
Co-packing refers to a customer’s proprietary formulation, which 3V produces under a contractual agreement. The customer retains all rights to, and ownership of the proprietary formula. In fact, as part of the process, 3V signs a non-disclosure agreement forbidding us to produce or share the customer’s formulation without prior approval. In this process, the customer is given the option to source his ingredients and prepay for them or request 3V to do so. 3V will charge a co-packing fee which will vary from project to project.
Private labeling refers to 3V manufacturing a product of its own formulation, and then packaging it under the customer’s private label. In some cases 3V may develop a private label formula exclusively for a customer or adjust a current formula to suit the customers’ needs. In either case, under a private label agreement, 3V retains ownership on the formula, sources & procures the ingredients and then produces the product.