Why more brands are turning to contract manufacturing

Why more brands are turning to contract manufacturing

In today’s business environment, brand image is more important than it has ever been. This is, after all, the age of choice and whether someone is shopping for a healthy snack or a new car, there are numerous alternatives out there. In a competitive market, it can sometimes be the case that perceptions about a brand are the deciding factor. 

Doing what you do best

Of course, that’s always been the case to a certain extent. But as far as contract manufacturing is concerned, changing market dynamics have turned attitudes upside down. A generation ago, contracting out any part of the manufacturing process was looked upon with suspicion. There was a perception that it was risky to “trust someone else with your product.” However, that was in the days that businesses also kept peripheral functions such as their IT support, building maintenance and even staff catering in-house.

Today, the most successful businesses are ones that “stick to the knitting.” An insurance company doesn’t have expertise in office maintenance, so it outsources it to a company that does. Likewise, a fitness equipment brand knows nothing about baking – which is where Focused Nutrition’s contract manufacturing services come to the fore!

Spending money more smartly

Looked at from that perspective, contract manufacturing actually reduces risk. When you partner with an expert, you are more likely to create a quality product that enhances your brand image. But there are other advantages, too. Working with a co-manufacturer, whatever the business sector, means brands can retain capital that would otherwise be sunk into production and all those incremental costs that come with it. 

It allows them to channel that money in other directions, such as sales, marketing and customer acquisition activities. Over the past five years or so, you might have noticed there has been a big increase in challenger brands rising rapidly to compete with established names. Contract manufacturing is one of the tools they use to scale up in so short a time. 

Choose your partners wisely

That’s not to say contract manufacturing is a guaranteed path to success. At Focused Nutrition, we have entered into some highly successful partnerships that have brought success to us, our partners and the customers they serve. But we know from experience that it is important to go into a contract manufacturing arrangement with your eyes wide open.

It’s vital to do your due diligence on any potential partner to ensure there are no legal or financial elephant traps ahead. But just as important is to listen to your heart. We have found that working with partners who share the same goals and values is a recipe for success – or in our case, a recipe for great healthy snacks

We are always open to discussing new partnership opportunities, so if you would like to find out more about our contract manufacturing services at Focused Nutrition, please get in touch for an informal chat. We can’t wait to hear from you. 

 

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