For Brands
When to Stop Co-Packing
and Build Your Own
Co-packing is where most brands start. CPG Own Facilities is where successful brands finish. The question is: are you at the inflection point?
The Decision
Six Signals You're Ready to Build
Not every brand should build a facility. But some brands are overdue. These are the signals that tell you it's time to have the conversation.
Volume exceeds 500K units/year
At this scale, the economics of co-packing start to deteriorate. Your co-packer is making meaningful margin on your volume. That margin belongs to you.
Co-packing margin exceeds 35%
If the co-packer's take is more than a third of your COGS, and you're running consistent volume, the math almost always favors building.
Capacity is throttling growth
Your co-packer can't give you enough production time. You're turning down orders. Your growth ceiling is someone else's schedule.
You've been operational 3+ years
The formula is proven. The brand has traction. The market risk is significantly lower than it was at launch.
You need process control they can't give
Your product requires a proprietary process, specific equipment, or quality control that your co-packer isn't set up for.
Retail is asking for traceability
Major retailers increasingly require supply chain transparency, direct audits, and manufacturing control. An owned facility delivers this.
The Comparison
Co-Packing vs. Own Facility
Neither is universally right. The right answer depends on your volume, your margin, your growth trajectory, and your capital position.
The Math
ROI Considerations
The financial case for building your own facility is typically built on four factors. Here's how they work.
Margin Recapture
Every point of co-packer margin is margin you're giving away. At $10M in co-packed revenue with a 30% co-packer take, that's $3M/year that moves to your P&L when you own the facility.
Capacity Unlocked
Brands that have been capacity-constrained by their co-packer's schedule often grow 30-50% in the first year after opening their own facility. Revenue that was impossible is now available.
Asset Value
A well-run manufacturing facility is a permanent asset. It shows up on your balance sheet, increases your enterprise value, and improves your position with lenders and investors.
Exit Multiple
Strategic acquirers pay higher multiples for brands with owned manufacturing infrastructure. Control over your supply chain is a premium asset in an M&A process.
The honest bottom line: Building a facility is a significant capital investment that only makes sense at the right scale. Our first deliverable is always a rigorous build vs. co-pack analysis — and we'll tell you honestly if the math doesn't work.
Services for Brands
End-to-End Facility Services
From the initial analysis through the first production run — and everything in between.
Build vs. Co-Pack Analysis
A rigorous financial model comparing your current co-packing economics against the cost of building — with realistic assumptions about capital, debt service, staffing, and operational efficiency.
Facility Design
Full facility design optimized for your product, your process, and your regulatory pathway. No generic floor plans — every design is built around what you actually make.
Equipment Sourcing
Access to the PMMI Pack Expo equipment network — thousands of vendors, new and used equipment, at prices not available through traditional channels.
Regulatory Pathway
FDA, USDA, GFSI, Organic, Kosher, Halal — we map your full certification pathway at the design stage and build the facility to meet it from day one.
Build-Out Management
Full construction management — GC selection, permitting, inspections, installation, commissioning. We manage the project so you can manage your brand.
Operational Launch
Staff training, QA system activation, first production run support, and ongoing operational guidance as you ramp up your new facility.
The Ecosystem
Your Support Network
Building a facility takes time. These CMA network partners keep your business running while your plant comes online.
Outsource While Building?
Use contract manufacturers to maintain production while your facility comes online.
Need Interim Space?
Commercial kitchens provide licensed production space while you build or remodel.
Test Before You Build
Validate your production process at pilot scale before committing to facility construction.
Start with the Analysis
Tell us your current volume, co-packing arrangement, and growth trajectory. We'll run the numbers and tell you whether building is the right move — and what it would take.
Talk to Our Team