What you should know about Plant Base Foods & Contract Manufacturing

As Plant Base Food & Beverages Products continue to grow. So does the need for Contract Manufacturing / Contract Packaging. With many successful brands born in the past 10 years there are also many that have failed. Yes, the Big “F” word failed.There are many reasons for failure. As one of the country’s leading Contract Manufacturing Sourcing Firm we have learned a lot the past 14 years. We build strong relationships with manufacturers. And understand the type of projects they are looking for and would take chances on. We also understand thoroughly the manufacturing processes and how they can be applied to Plant Base Brands. Let’s look as to why there are some Plant Base Brands that have failed with Contract Manufacturers.

Number one being, lying about your formulation/recipe and process flow. Perhaps saying it in another way leaving out some info you felt will jeopardize getting into Contract Manufacturer. Well, we can tell you that in the past 3 years we have seen contract manufacturers drop 34 plant base brands. You must have a finished formulation. For some reason everyone feels the manufacturer will resolve and trouble shoot what happens with the recipe. However, they do make minor adjustments with the brands’ approval due to machinery through put aspects. In the manufacturing process flow. Trying to be slick and blaming the manufacturer for it not coming out right knowing that it hasn’t come out right since the beginning is not a good way to start working with them.

Keep in mind whether you raised $10,000 or $10 million dollars to a manufacturer it means nothing. Because you have no monthly sales yet. So, to them there is no value yet. They know the money can run out with no sales. Being cocky because you have money doesn’t get you in the door. Most recently we witness a successful 2-year-old brand thrown out of a manufacturer for feeling like they ran the world and could miss treat management and expect the red carpet roll out for them because the brand was growing. Yes, I say “WAS SUSCESSFUL” because they have not found a manufacturer who will work with them.

It’s not as big as you think the world is. Words travel fast to other Manufactures, Venture Capital Firms and Brands. Our firm was approached by them and after much investigation we decided not to move forward with this brand. Even being offered 4 times our rates we know it could cost us a loss of contacts and manufacturers relationships we have built over the years by taking a chance with them. Many venture capital firms are associated with our company. On an average monthly basis, we receive between 10 to 25 VC’s inquires on brands they might invest in, and or for us to review to see if it’s a well worth investment in sourcing a manufacturer for the plant base product line.

A lot of brands approach us on their own many times and we already know about them through VC’s who didn’t invest in them or have. Having funds to build your brand is wonderful. Just don’t think the money invested makes you powerful, you still have a long way to go. How you treat people, and your associates is worth more than money. A person will always remember how you make them feel.

?When you go to a car mechanic to fix your car. Do you tell him how to fix it? It’s the same thing with manufacturers, they are experts so hear them out. Most times start up brands since they’re not experiences get defensive, insecure and have attitudes toward the manufacturers as they explain thing. You must be patient; each facility has its own processes and timeline. They want you to be the best brand, however they also have been burned many times over not only by startups but existing national brands. So, they proceed with a lot of caution.

Don’t expect the manufacturer to invest/ purchase specialized equipment for your brand. Zero of Zero equals Zero. If you have no sales, they will not take a chance and purchase any equipment. So, don’t expect it from any manufacturers. What you can expect is for them to look for ways to make it work with what they have and or your brand purchasing the needed equipment addition. Most times they will buy the equipment back from you as your brand succeeds in a written agreement.

Next do not lie about volumes and projections, it’s a sure fast way to get thrown out the window from manufacturers. They have heard it all Walmart wants you; Wholefoods needs you; Costco adores you; Stop & Shop will close if they don’t have your brand and so on. And yes, there are brands that are requested by those stores. Please be honest, it’s the greatest policy in our book. We would rather work with a facility that totally understands there is no volume and minimal projections that has the integrity to guide the brand to the top. Setting up production schedules in manufacturing is like a conductor managing an orchestra. All the instruments, notes, musicians need to be aligned to make music. Your brand needs to make music too. Give them a chance to format the musical notes and work with the musicians.

Another failure we have seen is not having the correct support team within your company’s brand structure. You can’t do all the jobs yourself; you need a good team on your side. Making sure you have someone who understands contract manufacturing is very important. I can tell within the first 3 minutes if I am being lied to or not in a meeting. Let’s face it, 40 plus years of experience in the food industry has a lot of value for me. We have most recently seen a well-funded Plant Base Brand waste $2.5 million dollars mostly on trade shows, marketing, wrong team and publicity. Yet they still do not have a product being produced at a manufacture. Sadly, it happens way too often. They should have started manufacturing the product line first, so they had something with class to show buyers.

Do not act like a know it all with manufacturers. Again, they have 100’s of meetings per year with new brands and existing ones they too pick up on something not comfortable to them. Most times the manufacturers will say they are at capacity; we have high minimums and so on not to deal with you. Again, honesty is the greatest policy. When you go to a manufacturing facility visit meeting. I want you to treat it as if you are going to someone’s home for the first time. Be authentic, smile say hello to everyone even each employee on the floor.

Anyone outside the building and inside needs to wonder who you are for being respectful. Manufacturers like working with brand owners that respect people and processes. Being a few boxes of donuts, bagels, or cookies. You are going to someone’s house to show them you appreciate them welcoming you in for the visit. Let them speak and or don’t finish their sentences. If you know a lot about what they are talking about just let them do their thing showing you around and explaining it to you. Be a great listener. If the manufacturer must work with you, they want to make sure they will be able to do so daily with you without any drama. Some startups always look to blame the manufacturers for many things that happen to be the brand. That has nothing to do with the manufacturer. When it’s the brands’ own fault. We deal with this daily and spend time in meetings explaining and resolving it for the brand, being sure we calm down the manufacturers before they start thinking about dropping them.

In closing stay away from the dream breakers, phoney & abusive people. Believe in your brand 100%. Be yourself, be kind and patient and you will be with the right manufacturer who will belive in your brand. We have learned many things over the years. One thing we preach to brands is “Minimal Risk is the Greatest Risk” when starting work with a manufacturer. For us our success has been based on building relationships over the years. One thing is for sure, we are about Building Relationships, Quality Manufacturing and making Brands Millions of Dollars.

Sincerely,

Ricardo Cordero

Ricardo Food Group INC.?is a Contract Manufacturing Sourcing Firm made up of Manufacturing and Production Experts in the food, bakery, plant base and beverage industry.?RFG?serves as consultants to businesses regarding partnerships, investors, mergers, performance base equity and acquisitions, leveraged and management buyouts, debt restructuring, capital firm investments, entrepreneur’s investment, and commercial bank investments.

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