Whether you’re an alcohol entrepreneur who’s fresh on the scene or you have a small (but established) brand, figuring out how to scale up your production without spending a fortune on equipment can be tough.
Contract bottling provides a practical solution by allowing you to outsource the production and packaging of your alcoholic beverages to a third-party facility. These bottlers have the equipment, skills and space to handle a variety of alcoholic products, including all kinds of spirits, wines, ciders and beers – as well as ready-to-drink cocktails and craft liquors.
How to make your contract bottling partnership a good one
Even though contract bottling has a lot of advantages, you still need to approach the venture with caution. Here’s how to make the most of the partnership and avoid problems in the future:
- Do careful research: You always need to vet potential bottlers very carefully. Make sure that they have good reviews from other clients, and visit their facility in person to confirm that they meet your standards. You should also make certain that they have the experience to handle your specific type of product.
- Create a detailed agreement: Strong contracts are key in all successful business partnerships, and this is no exception. You need to make sure that your contract outlines a clear production schedule, quality control procedures and benchmarks, packaging specifications and pricing structures. The contract is designed to minimize the potential for misunderstandings and protect both parties from unnecessary litigation.
- Have a clear breakdown of costs: You do not want any hidden fees (such as setup charges, overtime or storage) to surprise you in the future and blow your budget. Examine the bottler’s pricing policies for transparency before you make an agreement.
- Start with a trial run: Launching with a small batch lets you test the bottler’s capabilities – and your compatibility. Look at the lines of communication during the process and see how the bottler responds to any early difficulties as you refine your processes before you scale up to full production.
- Protect your intellectual property: If your product involves unique formulations or branding, protect it. Make sure that your agreement with the bottler has the appropriate confidentiality clauses and non-disclosure agreements in place to protect your proprietary information.
Contract bottling can be beneficial to both sides, so long as you focus on building a strong, respectful relationship with clear expectations and a collaborative process. Legal guidance can help make sure that your interests are fully protected.