What Emerging Brands Should Budget for When Co-Manufacturing Products
Overview
We hear from a lot of new and emerging brands looking to bring a new concept to life. The single most common question is: “what does this actually cost, start to finish?” This guide walks through the phases of a typical co-manufacturing project — development, piloting, and production — along with realistic cost ranges, so you can plan and budget before we ever sit down to talk specifics.
Every project is different, and final numbers depend on your formula, packaging format, and volume. But the framework below applies whether you’re developing any of our products, and it’s the same path nearly every brand we work with follows.
The Phases
| Phase | What Happens | Typical Cost |
|---|---|---|
| 1. Product Brief | Customer outlines the concept in detail – target macros, size, format, and inspiration (e.g. “a healthier version of X product”) | Provided by Brand |
| 2. Development (R&D) | Formula development and refinement, bench-top trials, allergen/label review | $150/hr (typ. 40-100 hours) |
| 3. Pilot Run | Small-scale production trial (approx. 150lbs) to confirm the formula holds at scale before committing to full production | ~$2,500 – $5,000 (+ raw materials) |
| 4. Packaging | Purchased separately, directly from a packaging vendor. We can provide a list of recommended vendors | Purchased by Brand |
| 5. Opening Production Run – Cookies, Granola, & Snack Mixes | First full production order – minimum 2,000lbs | $10,000 – $15,000 per flavor |
| 6. Opening Production Run – Bars | First full production order, minimum 10,000 units | $10,000 – $15,000 per flavor |
| 7. Opening Production Run – Donuts | First full production order, vaires | $10,000 – $15,000 per flavor |
| 8. Opening Production Run – Chocolate Products | First full production order, 1 day of production | $10,000 – $15,000 per flavor |
| 9. Nutritional Panel, Ingredient Deck & Allergen Statement | Formal documentation prepared for labeling and retail compliance | $240+ |
All figures above are typical starting ranges based on past projects. Your actual quote will reflect your specific formula, packaging, and volume.
Phase Details
1. Product Brief
Before development begins, we ask new brands to put together a product brief. This is where you outline exactly what you’re looking for so our R&D team can hit the ground running. A good brief typically covers:
- Product Concepts and Inspiration – e.g. “we want a healthier version of a classic chocolate chip cookie”
- Target Macros – protein, sugar, calories, etc.
- Size and Format – weight, dimensions, portioning, shape, etc.
- Any must-have or must-avoid ingredients, allergens, or certifications
2. Development
This is where you concept becomes a working formula. Depending on the complexity, development typically runs 40-100 hours at our standard R&D rate of $150/hour. This phase covers formula iteration, ingredient sourcing feasibility, allergen and label review, and bench-top testing until the formula is ready to scale.
3. Pilot Run
A pilot run is a small-scale production trial, producing approximately 150 pounds of product. The purpose is to work through any manufacturing issues – equipment settings, bake times, line speed, packaging fit – before committing to a full production order.
- Take-home, not for sale. You’re welcome to take the pilot product with you, but it is not packaged for retail sale – it’s for internal evaluation, feedback, and testing only.
- Yield varies. We can’t guarantee an exact final quantity, since we’re often testing variables like bake time during the pilot.
- Purpose. Think of it as the last checkpoint before production – it confirms the formula holds up at scale and surfaces anything that need adjusting before we commit raw materials and schedule an opening order.
4. Packaging
Packaging is purchased separately, directly from a packaging vendor – it is not something we supply or invoice for. We’re happy to work within a packaging format you’ve already selected or point you to our list of recommended vendors.
5. Opening Production Run
Once the formula and packaging are finalized, the first full production order typically runs $10,000-$15,000 per flavor. Minimum volumes differ by product: 2,000lbs for cookies/granola/snack mixes, 10,000 units for bars, and one days’ worth of production for chocolate items. Volumes below these thresholds are generally not a fit for a full co-manufacturing partnership.
6. Nutritional Panel, Ingredient Deck, & Allergen Statement
Once the formula is finalized, we prepare the formal nutritional panel, ingredient deck, and allergen statement needed for labeling and retail compliance. This is a flat $240 fee.
Before You Start
- NDA: We’re happy to sign a mutual NDA before discussing formula details – we use our own standard NDA template. Email jackp@wwgourmet.com to request it.
- Volume: Confirm you projected annual volume meets our minimum – 2,000lbs for cookies/granola/snack mixes, 10,000 units for bars, and one days’ worth of production for chocolate products – before requesting a full quote.
- Packaging: Packaging is sourced and purchased separately, directly from a packaging vendor. Let us know if you’d like our list of recommended vendors.
Next Steps
If your project fits within this framework, reach out and we’ll schedule a call to talk through your specific formula.