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Questions & Answers

Posted by Daniel Marabotto on 2015-03-08 13:36:00
Title: Marketing advice needed for our brand.
Category: Marketing

We have created "Delicious Kicks" as a well known brand name. We are manufacturing "Home Style Mexican Salsas". We started 3 years ago by selling at Farmer's Markets and Specialty and Deli stores in Winnipeg. This year we are already introducing our salsas at chain stores, so far CO-OP. Because "Delicious Kicks" brand recognition because of its flavours and quality, we have been approached by a person who wants to start manufacturing some food products of his own but he wants us to sell them with our "Delicious Kicks" brand. Since we are not familiar with this typo of negotiations, I understand we could have the following scenarios: 1. - This person takes care of manufacturing and packaging and we do the marketing and sells with our brand name and to our customer base. 2. - We do the whole thing and sell. What would you recommend and how should we charge for our service and for using our brand name. I will appreciate your comments and by giving me some references where I could learn more about this kind of business. Kindest Regards, Dan

Answer:

Peter Neal
2015-03-31 14:33:00

Daniel – I am not sure if this person is offering to produce your salsas for you or if they are proposing new/different items? If they can produce a salsa that is as good as yours with the same or better costing then I would suggest you consider this option. You will want to ensure that their plant is fully certified with CFIA and has a solid safety record. Assuming they satisfy these requirements this kind of co-packing agreement, ("scenario 1"), would allow you to focus your resources on sales and marketing. If they cannot meet your requirements then you either go with "scenario 2" or look to find a manufacturer who can produce your salsas. 

Furthermore – if this individual is proposing to produce products for you other than your current lineup you need to ask yourself; do these items fit with my current lineup, do they work with my branding, are they of a quality that is worthy of my brand. If you are not 100% sure then you should not engage. 

If you would like to discuss with me so I can have a clearer picture then please reach out and I will be happy to discuss further.

Peter Neal, Co-Founder, Neal Brothers Foods


Daniel Marabotto
2015-04-09 16:39:00
Followup question:

Hello Peter, First of all thank you for answering my question.As a result of your advice, we decided to keep concentrating on our own products. I saw your website (checked the products, recipes and I got hungry!! those dishes look delicious) and wanted to ask you if you offer co-packing? I ask this because at the moment we're manufacturing at the Food Development Centre in Portage la Prairie,MB, but our manufacturing time there is very limited, therefore we can't grow as we would like, so we are looking for co-packers. We visited some co-packers in Toronto, ON, but none of them have the ability to roast the veggies,which we need to do and use real veggies,no paste or powders. Thank you again Peter. Daniel Marabotto Vice President, Las Salsas Corp.