Armin Hohenadler

A property provision is a very important clause in the agreement and defines that intellectual property belongs to the client in relation to everything the co-packer produces for the customer. The agreement must state that the Co-Packer must not use or register the customer`s intellectual property rights or trademarks. In addition, it is important to determine whether a co-packer can use the customer`s name or logo on their website or marketing materials. The customer can ask the Co-Packer to purchase and maintain appropriate and correct insurance that provides coverage against the potential risks associated with the agreement. The contract is the legal agreement between the manufacturer and the packaging company. It does not matter what discussions have taken place in advance — if the work is not detailed in the treaty, then you have no recourse to make sure that happens. The agreement stipulates that the Co-Packer acts as an independent contractor and that all co-packers who provide co-packing services to the customer are considered co-packer employees. It should also include a clause stipulating that the Co-Packer is responsible for paying its own taxes for fees received in connection with the service contract. There are different ways, such as co-packers to pay for services; it can be a fixed price per unit (by volume), a flat fee per hour (hours, weekly, monthly) or a combination of fixed and variable taxes. The agreement should reflect the price structure that best suits the type of services provided and packaged products. It is always good to have in the agreement a clause specifying when rates can be adjusted (for example. B once a year) and this can trigger a price increase (for example.

B, raising the minimum wage, inflation or increasing the cost of raw materials). Distributors can address these risks through a comprehensive manufacturing agreement. Distributors should consider including the following points in copacker agreements: one of the main causes of food recalls is the undeclared allergen. A list of approved suppliers is a simple tool used in co-packing to prevent accidental falsification of food with undeclared allergens. A co-packer agreement should require manufacturers to use ingredients only from a limited group of suppliers. If suppliers are serious and widely used, the co-packer should have no problem ordering enough ingredients before manufacturing. The agreement must have certain elements common to all contracts and certain parts specific to the contract packaging industry. A contractual packaging contract must have: the agreement must indicate how often the co-packer charges the services, when an invoice is to be paid and how the payment is to be made. The production of healthy food is a primary responsibility.

A food company cannot simply apply all its safety issues to the co-packer. Distributors must monitor the food safety practices of their producers, just as they must maintain product quality monitoring. Certain clauses in a co-packer agreement create access to the facility during production, as well as the right to review all food safety documents relevant to the product. In the absence of internal food security capabilities, these rights are unnecessary. Food safety experts need to be particularly sharp and be able to provide reliable advice, even if they are not in production. Please end the commercial wait. When copacking, distributors need to focus on the details. The details set the commercial expectation for the copacker, and the details offer the consumer a consistent meaningful experience. Clear and concise legislation should describe the product in as much detail as possible.