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In addition to being CFIN’s Regional Innovation Director for BC and Yukon, Lavina Gully is a food scientist and product developer with almost two decades of experience helping food and beverage companies innovate. In this series, Lavina answers questions from CFIN members on everything from product development, R&D, manufacturing best practices, and co-packing – just to name a few! 

If you have questions for Lavina, you can reach out to her directly and we can answer your question in next month’s mailbag. 

This month, Lavina answers your questions about working with an out-of-province co-packer, and the benefits of food incubators. 

Q: We’re expanding our product line, and have decided to use a co-packer, but the ones we are interested in are outside of our region. Do you have any tips for using a remote co-packer? 

A: Using a co-packer outside of your province or region adds an extra layer of complexity to your supply chain. But that doesn’t mean it can’t work – it just requires more planning to minimize potential risks and challenges. 

Before making a decision to work with a new co-packer, if possible visit their facilities to assess their capabilities, quality control measures, and overall suitability for your products, and to ensure that they comply with all legal and regulatory requirements in both your region the one where the co-packer is located. Once you agree to work together, develop comprehensive contractual agreements that outline all terms, responsibilities, quality standards, delivery schedules, and any other details. At this point it’s vital to establish clear lines of communication with the co-packer, and to make sure that both parties are on the same page regarding expectations, specifications, and any potential challenges. That includes clear strategies and goals for quality assurance, logistics and shipping requirements, key performance indicators (KPIs), and contingency plans for unexpected events such as supply chain disruptions or changes in regulations. 

Despite the distance, it’s important to maintain a strong working relationship with your co-packer, so use tools such as Zoom or project management software to receive regular updates and keep on top of expectations. Make sure that inspections, audits and product testing are carried out regularly, and consider hiring a third-party inspector if needed. It’s also necessary to stay informed about changes in regulations or market conditions in the region where your co-packer is located. You may want to work with other local partners in that region to support your operations.  

Finally, keep in mind that fostering a collaborative approach with your co-packer is the best way to address any challenges if and when they arise, and to help continuously improve the process.  

Q: I operate a startup and want to know more about how food incubators with shared facilities can help with production and scaleup. Is it necessary to work with an incubator? 

A: Food incubators and accelerators with shared facilities can be valuable resources for food industry startups, providing a range of benefits that can assist in production and scaleup. With its shared infrastructure, kitchen spaces, equipment and facilities, incubators can help startups access high-quality equipment without having to purchase their own, while significantly cutting overhead costs such as water, electricity, and waste management. The experts at incubators can offer networking and mentorship opportunities, and provide services on regulation compliance, labelling, market access through different distribution channels, product testing, and business development. Being part of an incubator also fosters a supportive community, giving entrepreneurs access to a network of innovators, industry experts, and potential collaborators. 

While food incubators offer numerous advantages, it’s not mandatory for every startup to use one. Instead, the decision to join an incubator should be based on a careful assessment of your company needs, goals, and resources. Consider, for example, the costs against the benefits offered. In some cases, the cost of membership may outweigh the advantages, especially if you have already secured funding for your own facilities. And some entrepreneurs prefer to maintain full control over their production processes and business operations, meaning shared facilities may not be the best solution. Producing out of a shared use facility might also impact customers, such as grocery stores. I’ve heard that some grocery stores may not be open to your product if they know it’s made in a shared facility due to worry about things like allergens, cross contamination and food safety, so just to keep that in mind as well. Consider as well whether the incubator aligns with the specific needs and goals of your company. There are a multitude of research centres and food incubators available to Canadian food entrepreneurs, and some may offer more relevant resources and support than others, so do your research before making a commitment. 

#resourcecentres

#foodincubator

#copacker

#bestpractices

CFIN Members get exclusive access to funding opportunities, five Regional Innovation Directors, and YODL. Learn more about what it’s like to be a CFIN Member and how you can join our growing community of food professionals.