An Insider’s Guide to Co-manufacturing

Co-manufacturing, or the use of a third party to manufacture or package a product, is an increasingly common strategy for food companies to reduce assets, speed time to market, and, often, reduce costs.

Some large food companies, such as Sara Lee, Downers Grove, Ill., have an avowed policy of shedding assets and relying on third parties for much of their manufacturing. Others use the approach more selectively, typically either for new products or well-established ones that do not require unique f…