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.

1

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.

2

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.

3

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.

4

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.

5

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.

6

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.

Co-Packing / Contract Manufacturing
+ Lower upfront capital requirement
Lower upfront capital but higher long-term operating cost
+ Flexibility to change products/formulations
Flexibility at the cost of control — you're at their schedule
+ No facility management responsibility
No facility management — but no facility equity either
+ Faster time to market initially
Fast initial launch but limited growth ceiling
CPG Own Facility
+ Margin capture — the co-packer's take is now yours
Requires significant capital investment upfront
+ Complete process and quality control
Requires operational management capability
+ Unlimited production capacity on your schedule
Fixed capacity — must forecast correctly
+ A permanent asset on your balance sheet
Asset that requires ongoing maintenance investment

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.

Co-Packing

Outsource While Building?

Use contract manufacturers to maintain production while your facility comes online.

Explore Co-Packing

Commercial Kitchens

Need Interim Space?

Commercial kitchens provide licensed production space while you build or remodel.

Explore Commercial Kitchens

Pilot Plants

Test Before You Build

Validate your production process at pilot scale before committing to facility construction.

Explore Pilot Plants

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