Key Takeaways
- A co-packer makes and packages food or drink to your recipe under your label. A contract manufacturer does the same for hard goods. Either lets you sell at volume without owning a plant.
- Kentucky's Food Safety Branch says that if a permitted co-packer makes your product, you do not need your own food manufacturing plant permit, though you may need a warehousing permit. The branch can provide a list of known permitted Kentucky co-packers.
- Pickled, acidified and low-acid canned foods need an approved Better Process Control School and a Process Authority review of each recipe before Kentucky will permit them.
- Kentucky's food plant permit fees run from $125 to $1,000 a year depending on square footage and risk level, under 902 KAR 45:180.
- Get the formula, tooling ownership, specifications, minimums and recall responsibilities in writing before your first run.
Most new food brands and hardware companies hire a factory for their first production run instead of building one. In food and beverage that partner is a co-packer or co-manufacturer. In hard goods it is a contract manufacturer. The arrangement saves equipment and buildout costs, but it hands a large part of your business to someone else, so choosing well matters.
This guide covers costs, Kentucky food rules, and how to find and vet a partner near Louisville. If you are still at the idea stage, start with our guide to how to manufacture a product in Louisville. If you still need a working prototype, see prototyping in Louisville.
What Co-Packers and Contract Manufacturers Do
The terms overlap, but here is how they are generally used:
| Term | What it usually means |
|---|---|
| Co-packer | Makes and packages a food or drink product to your recipe, with your label |
| Co-manufacturer (co-man) | Often used interchangeably with co-packer, sometimes implying more formulation and process work |
| Private label | The manufacturer's own product sold under your brand, with little or no recipe input from you |
| Contract manufacturer | Builds hard goods (parts, assemblies, finished products) to your design and specifications |
| Turnkey | The manufacturer buys all ingredients, components and packaging and bills you per finished unit |
| Consigned or tolling | You supply some or all materials and pay the manufacturer for processing |
In its starter guide for commercial food manufacturing, the state's Food Safety Branch describes a co-packer as a permitted food processing facility that prepares food based on your recipe, packages it, and labels it with your custom label.
Is a Co-Packer the Right Next Step?
A co-packer usually makes sense when demand has outgrown your kitchen or shop, when the product needs equipment you cannot justify buying, or when retail buyers want food safety documentation you cannot provide yourself. It is too early if the recipe is still changing weekly.
There are steps in between. Kentucky's home-based processor law, as amended effective July 15, 2026, lets registered home processors sell certain foods directly to consumers within Kentucky, including from home by pick-up or delivery, at markets, roadside stands, community events, or online. Home processors cannot make acid foods, acidified foods, or low-acid canned foods, and every label must carry the statement "This product is home-produced and processed." Check the current product list, fee and sales limits with the Food Safety Branch's home-based processing program, since the rules changed recently. Our sister site's Louisville business license and permits guide covers local registration.
Another step is a shared commercial kitchen. Chef Space, a kitchen incubator in West Louisville run by Community Ventures, offers hourly or monthly access to a 13,500-square-foot commercial kitchen along with training and business support. The state's starter guide notes that if you make product in someone else's permitted kitchen, the Food Safety Branch will need a written agreement showing you have access and that all your product will be made there.
The Kentucky Food Regulatory Path
This section is a summary, not legal advice. Rules change, and the agencies have the final word, so check with the Kentucky Food Safety Branch (502-564-7181) and your local health department before you commit.
Who regulates what
According to the Food Safety Branch's starter guide, operations that mainly sell wholesale or online are permitted and inspected by the state Food Safety Branch. If 75% or more of sales will be retail (direct to consumer), the operation is generally permitted through the local health department, with exceptions for products such as packaged pickled items. In Louisville that is Louisville Metro Public Health and Wellness. Meat and poultry processing falls under separate federal and state inspection programs.
If the co-packer holds the permit
The same guide states that if you contract with a co-packer, you would not need a permit to operate a food manufacturing plant, though you could be required to get a warehousing permit if you store product. The co-packer's facility must hold its own state permit and, in most cases, its own FDA registration. FDA requires facilities that manufacture, process, pack or hold food for U.S. consumption to register and renew every other year. Ask for the co-packer's permit and registration numbers.
If you make it yourself
Under 902 KAR 45:180, food processing plant permit fees depend on square footage and risk level:
| Facility size | Risk Level 1 | Risk Level 2 | Risk Level 3 |
|---|---|---|---|
| 0 to 1,000 sq ft | $135 | $130 | $125 |
| 1,001 to 5,000 sq ft | $190 | $180 | $170 |
| 5,001 to 20,000 sq ft | $350 | $300 | $250 |
| 20,001 to 40,000 sq ft | $500 | $450 | $400 |
| Over 150,000 sq ft | $1,000 | $900 | $800 |
Level 1 covers plants that distribute regionally or wider and handle time- or temperature-controlled ready-to-eat foods, high-risk foods, or specialized processes. Level 3 covers foods that do not need time or temperature control. The regulation has intermediate tiers between 40,000 and 150,000 square feet.
Acidified and low-acid canned foods
Sauces, pickles, salsas and canned vegetables carry botulism risk if the process is wrong. The starter guide says Kentucky requires anyone who pickles or cans low-acid or acidified products to complete an approved Better Process Control School and to have every recipe reviewed by a Process Authority, a food scientist who evaluates the recipe and tests the finished product. Many co-packers already have trained staff and filed processes, but your recipe still needs its own review. The University of Kentucky's Food Systems Innovation Center lists process review, calculated nutrition labeling, chemical and microbiological testing, and HACCP training among its services for processors and entrepreneurs.
Labels
The starter guide says packaged foods must have labels reviewed by the Food Safety Branch before they are marketed. Required elements include a statement of identity, net quantity in English and metric units, an ingredient list in descending order with major allergens identified, and the name and address of the manufacturer or distributor. When a co-packer makes your product, a statement such as "Manufactured for" or "Distributed by" shows the relationship.
Kentucky Proud
Kentucky Proud, the Kentucky Department of Agriculture's state brand, covers products raised, grown, or processed in Kentucky. Members get promotional campaigns, grant opportunities and marketing help. Apply at kyproud.com, and confirm with the department whether a product made by a co-packer under your brand qualifies.
What a Co-Packer Costs
Few co-packers publish rates. Expect quotes built from a mix of these pieces:
- Development or scale-up fees. Turning a kitchen recipe into a production formula, running test batches, and sometimes shelf-life or lab testing.
- Per-unit or per-case processing fee. The core charge for running the line, often called a tolling or conversion fee.
- Materials. Under a turnkey deal the co-packer buys ingredients and packaging and marks them up. Under a consigned deal you supply them and absorb the purchasing risk.
- Setup and changeover. Cleaning and resetting a line between products takes hours, and some co-packers bill for it.
- Minimum order quantity (MOQ). Often set in batches, cases, or hours of line time. A large plant built for national brands may have minimums far beyond a startup's first order.
- Storage, handling and freight. Pallet storage, pick-and-pack, and shipping finished goods.
- Testing and documentation. Certificates of analysis, third-party audits, and lot records.
Hard-goods contract manufacturers follow a similar pattern, with tooling (molds, dies, fixtures) as a large upfront cost. A tooling quote should state who owns the tool and how long the manufacturer will maintain it.
Ask every candidate to quote the same specification at the same volumes so you can compare. A low unit price with a high minimum can cost more in tied-up cash than a higher unit price with a small minimum.
Where to Look in the Louisville Region
Few co-packers advertise. The University of Kentucky's food innovation center has noted on its blog that very few companies advertise co-packing services, and that online directories may not be current. Start with these:
- The Kentucky Food Safety Branch. Its starter guide invites entrepreneurs to contact the branch for a current list of known, permitted co-packers in Kentucky.
- Chef Space. Useful as a stepping stone and for peer referrals from food businesses that have already found co-packers.
- Flavorman. A Louisville company at 809 South 8th Street that offers flavors, beverage development and analytical testing for drinks and spirits. It is a development partner rather than a bottler.
- Custom Food Solutions. A Louisville-area manufacturer of soups, sauces, dressings, dips and similar products for foodservice, retail and restaurant customers, which says it can produce a customer's own product. Ask about minimums, since manufacturers serving chains may be set up for large runs.
- CONNEX Kentucky and the state facilities database. CONNEX Kentucky, run by the Kentucky Association of Manufacturers and the Cabinet for Economic Development, and the Cabinet's Facilities Search Database both list Kentucky manufacturers by product.
- MEP supplier scouting. The national MEP network's supplier scouting service searches for U.S. manufacturers that can make a specific item. Request it through Kentucky's MEP center at the University of Louisville.
For hard goods, Louisville has established injection molders. HB Molding on Watterson Trail lists 35 presses from 120 to 500 tons, ISO 9001:2015 certification, and assembly, ultrasonic welding and pad printing. Jones Plastic & Engineering, headquartered in Jeffersontown, lists molding from 65 to 3,150 tons along with product development and prototyping. Our makers directory lists more local companies by category, including food and beverage, consumer products, and industrial manufacturing.
How to Evaluate a Partner, Step by Step
- Prepare a spec package. For food: the formula by weight, process steps, target pH or water activity if relevant, packaging specs and a draft label. For hard goods: CAD files, drawings with tolerances, materials, finishes and a BOM. Include realistic volume forecasts for the first year.
- Sign an NDA. Do it before you share the formula or drawings.
- Screen by capability. Confirm they run your process (hot fill, retort, cold fill, baking, molding, sheet metal), your package format, and volumes near yours.
- Request quotes at several volumes. Ask for pricing at your first order, at two times that, and at your one-year forecast.
- Visit the facility. Look at sanitation, allergen or material segregation, and lot tracking.
- Ask for documentation. Food: state permit, FDA registration, recent inspection results, food safety plan, and any third-party audit certificates. Hard goods: quality certifications such as ISO 9001 and sample inspection reports.
- Check references. Talk to two or three current clients of similar size.
- Run a paid trial batch against an approved golden sample, then negotiate the contract and schedule production.
Questions to ask
- What are your minimums, and how are they measured?
- What is your lead time from purchase order to finished goods?
- Do you buy materials, or do I supply them? What markup applies?
- Who owns the formula, process documentation, molds and fixtures?
- How do you handle allergens, sanitation and changeovers?
- What testing do you do on each lot, and what records do I get?
- How do you handle a recall or a nonconforming batch, and who pays?
- What insurance do you carry, and will you name my company as an additional insured?
- Are you making a competing product for anyone else?
Contracts and Intellectual Property
Have an attorney review the manufacturing or supply agreement before you sign. Items it should address:
- Ownership. You own your formula, specifications and brand. Say so explicitly, and state that the manufacturer will not use them for anyone else.
- Tooling and molds. If you paid for tooling, the agreement should say you own it and can move it.
- Specifications and acceptance. What counts as a good unit, how batches are inspected, and what happens to failures.
- Pricing and adjustments. How material cost changes are passed through, and how much notice you get.
- Forecasts and purchase orders. Whether forecasts are binding, and the cancellation terms.
- Liability, insurance and recalls. Who pays if a batch is contaminated or defective.
- Term and exit. How either side ends the agreement, and how your materials and tooling are returned.
If any part of your product may be patentable, the University of Louisville's Patent and Trademark Resource Center teaches people to use USPTO search tools. Its staff cannot give legal advice, so check with a patent attorney about filing before you share designs widely.
Frequently Asked Questions
Do I need a Kentucky food manufacturing permit if I use a co-packer?
According to the Kentucky Food Safety Branch starter guide, you generally do not need your own food manufacturing plant permit if a permitted co-packer makes your product, though you may need a warehousing permit if you store finished goods. Your label must still meet state requirements. Confirm your situation with the Food Safety Branch before your first run, because rules depend on the product and how you sell it.
What is a typical co-packer minimum order?
There is no standard figure. Minimums are often set in batches, cases or hours of line time, and they depend on the equipment and the product. Large plants serving national brands tend to have high minimums, while smaller operations may take shorter runs at a higher unit price. Ask each candidate how its minimum is measured and get quotes at several volumes.
Can I sell homemade food in Kentucky without a co-packer?
Yes, within limits. Kentucky's home-based processor law lets registered home processors sell certain foods directly to consumers within the state, including from home, at markets and events, or online. Acidified foods and low-acid canned foods are not allowed under that program. Check the current product list, fee and sales limits with the Food Safety Branch home-based processing program.
How do I find a co-packer near Louisville?
Ask the Kentucky Food Safety Branch for its list of known permitted co-packers, talk to food businesses at Chef Space, and search CONNEX Kentucky and the state Facilities Search Database. The national MEP supplier scouting service, requested through Kentucky's MEP center, can also search for manufacturers that make a specific product. Expect to make many calls, because few co-packers advertise.
Who owns the recipe when a co-packer makes my product?
You should, but only a written agreement makes that clear. Your manufacturing agreement should state that you own the formula, specifications and brand, that the co-packer will not use them for other customers, and how documentation and leftover materials are returned if you leave. Sign a non-disclosure agreement before sharing the recipe, and have an attorney review the contract.
Do sauces and pickles need special approval in Kentucky?
Yes. The Kentucky Food Safety Branch requires anyone producing acidified or low-acid canned foods to complete an approved Better Process Control School and to have each recipe reviewed by a Process Authority, a food scientist who evaluates the recipe and tests the finished product. If a co-packer makes your sauce, confirm that its staff are trained and that your specific recipe has been reviewed.