The agreement should indicate who orders ingredients, labels, packaging and shipping cartons. The paragraph should indicate the method to be used for the lot or lot code and the date format required. When negotiating a co-packing contract, liability and indemnification clauses can become a very controversial topic, given that sums of money can be at stake for both parties. As a general rule, the customer demands that he is not responsible for commitments arising from acts or omissions of the co-packer in the context of the co-packing service. The agreement must specify who is responsible for quality control and how often product inspections are to be carried out and registered. The co-packer must check at least all co-packaged products before release to ensure that the product meets specifications. The agreement should also define the factors that make a product defective or non-compliant and that covers the costs of disposal or post-treatment of rejected products. • coordination between labelling and manufacturing. As we have dealt with on our food labeling site, false or misleading information on the product label means that the product is mislabeled. Mislabeled foods are subject to sanctions from the Food and Drug Administration as well as customer complaints. Distributors must include a copy of their label in the agreement.
Copackers need complete manufacturing specifications to ensure that the final product complies with the nutrition facts panel data on the product label. Copackers must also ensure that what they place in the package matches what the distributor said on the label.