Brand Owners Have Rights Too!
I have been sitting in on numerous calls lately where the topic of discussion is what Brand Owners need to do to give Contract Manufacturers everything they need to make your product. I've also read numerous articles in trade publications to the same effect. What do they all have in common? They are mostly written by Contract Manufacturers. Truthfully, I have yet to see one written by the Brand Owner discussing what THEY need to have a successful partnership. This is so disappointing to me because all too often I see the entrepreneur that needs a Co-Man basically give up all their rights in order to have them make their product. When I work with a Client I try to take both parties needs into account when formulating a go-to-market plan.
If Brand Owners knew their rights going into these early discussions it could make the partnership one of mutual benefit. Instead, they allow the Co-Man to decide what ingredients to use (typically suppliers with which they have a previous working relationship), when to manufacture the product, what the formula is and how to make the product. These are all things the Brand Owner should either own or be able to negotiate. What are some of the things the Brand Owner is entitled to?
Completed Batch Records
Inspection of the facility
Product Reviews
Right of refusal for all product changes
Just to name a few. As a matter of fact, I have put together a document, a Quality Agreement, that lists out every party's roles and responsibilities. It is based on GMP Guidelines by the FDA, and should be a part of every early discussion with a potential Co-Man.
The Brand Owner has rights just like the Co-Man. Be aware of those Co-Mans that keep information from you. And, if you are a Co-Man, beware the Brand Owner that doesn't have their information ready to go for you as well. It's the upfront communication between the two parties that will spell the difference between a successful partnership versus one where you don't know what you will get, when you will get it, and whether it passes your quality requirements.