Own the Co-Packer
Buy the factory before you build the brand, then rent it back to the market.
- Difficulty
- Advanced
- Time to result
- ~months to results
- Steps
- 3
- Confidence
- 90%
Emma bought her own manufacturing facility before launching her food brand, inverting the usual startup path of finding a co-packer after building a product. Because she owns the plant, she can co-pack for hundreds of other brands, creating a B2B income stream layered on top of her own labels. It also lets her launch new products almost instantly by swapping boxes and logos on items she already produces. The insight is that the best entrepreneur sells something they already do for themselves. Owning production converts a dependency and cost into a competitive moat and a profit center.
Origin
Emma grew up in her family's seafood business placing orders and learning the industry from age 12. When she decided to launch her own food company around COVID, she and her mother chose to buy a manufacturing facility rather than lease or outsource, reasoning that if they were spending the money anyway they should own the asset. Other brands began coming to them to manufacture, turning the facility into one of the largest co-packers on the East Coast.
Core principles
- 01The best entrepreneur sells something they already do for themselves.
- 02Owning the means of production turns a cost center into a second income stream.
- 03Control of manufacturing means you can launch new SKUs in a day, not months.
How to run it
- 1
Acquire production capacity first
Buy or control the manufacturing facility before or as you launch your brand, so you never depend on an outside co-packer.
Pro tip If you're already paying to lease capacity, run the numbers on buying instead — you may be funding someone else's asset.
- 2
Open the facility to other brands
Offer co-packing services to other companies so their production runs generate income on top of your own brand's sales.
Watch out A weak co-packer is a top reason startups fail — hold your operation to a high standard because others will depend on it too.
- 3
Exploit the speed advantage
Because you already make the products, launch new SKUs by reaching out to the boxing company, changing the logo and items, and shipping fast.
Pro tip Keep a bank of proven recipes you already produce so a new retail account can be served almost overnight.
In the wild
Emma explained that because she owns the facility, if a buyer named a favorite meal she could produce a matching product and ship it the next day, where a startup without its own plant would need far longer.
→ Rapid SKU creation that competitors relying on external co-packers cannot match.
For a major new retail account she landed four items, some in packaging she didn't previously stock; owning the plant meant she only had to reprint boxes and swap items rather than build new production.
→ Four new items placed into a major account with minimal lead time.
Common mistakes
Launching the brand before securing production
Coming up with a product and only then hunting for a co-packer leaves you dependent on someone else's capacity and quality, slowing launches and risking failure.
Treating the factory as pure cost
Owners who don't open capacity to other brands miss the co-packing income that can subsidize their own operation.
Is it for you?
Best for
Food and CPG founders who make a physical product and want speed, margin, and a second revenue line.
Not ideal for
Capital-light service businesses or founders without the funds to buy or lease production capacity.
From the transcript
“the best type of entrepreneur is an entrepreneur that sells something that they already do for themselves.”
“I bought my manufacturing facility before I started my company and I loved that I did it that way.”
“all I have to do is reach out to the boxing company, put the new logo on, change the items on it, and then now…”
From the episode
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Emma Hernan