The customer may request the co-packer to take out and maintain appropriate and appropriate insurance that covers any risks related to the contract. • Set the business expectation. When it comes to copacking, distributors need to focus on the details. The details determine the commercial expectation of the copacker and the details provide the consumer with a consistent sensory experience. Clear and concise legal texts should describe the product in as much detail as possible. In addition to common sense details like cookie size and scone weight, we describe products based on color, pH, salinity, brix, and even viscosity. It`s incredibly important to be deepened. The establishment of clear and objective criteria for the product allows the distributor to refuse goods that do not meet the conditions of the agreement. The QA team authorizes the release of goods as soon as the product meets the criteria prescribed by the specifications. Rigour, coordination and flexibility are essential. A co-packing agreement should establish conditions, obligations and requirements for both parties, as well as co-packing services and performance levels.
However, an agreement should not be too detailed or rigid, especially for a fast-growing company, otherwise the agreement could exacerbate precisely the problems it is supposed to avoid. The service agreement should clearly indicate when the agreements will begin and when they will end (duration of the agreement) and may also contain an extension provision. It is appropriate to specify which party may terminate a contract before the expiry of its duration, under what circumstances, in what form and with what period of notice. .