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Exclusivity Within a CP/CM, Customer Relationship

When is it time to develop an exclusive agreement with your contract packager/manufacturer around a new product or technology, and what factors should you consider? Bush Bros. Robby Martin shares his experiences.

Robby Martin, Engineering Specialist, Bush Brothers & Company
Robby Martin, Engineering Specialist, Bush Brothers & Company

In our journey in past columns to explore the characteristics that make up solid co-packing and co-manufacturing (CP/CM) arrangements, we’ve touched on a lot of topics. One topic that doesn’t always come up, but seems to fit our discussions to date, is exclusivity. I have often been asked about exclusivity opportunities by internal folks, and I’ve also had partners that indicated the existence of exclusivity agreements in their businesses. So, how big of a deal is exclusivity?

Why consider exclusivity?

As I mentioned, I have been asked about exclusivity for certain products at certain co-manufacturing operations on regular basis. One of the driving reasons behind the desire for exclusivity is that many of us in the innovation space often believe our next idea is going to be “the one”—the idea that we ride for years to come. So, we naturally begin to sense a need to protect the idea, the concept, or the application. While there are legitimately new applications of ideas or technology to certain concepts, my experience is that we sometimes get ahead of ourselves talking about exclusivity. Arriving at suitable contract language to support exclusivity is not easy, and the energy expended can often precede the actual “proof of concept” that drives our expectation of success.


Watch video   Watch this video, "Contract Packaging Through 2025," featuring Robby Martin.

My recommendation, therefore, is that we discuss whether there would be openness to exclusivity early in a project effort, but we hold off on negotiating the details of what that could look like until we know the size of the prize we are talking about. Plus, if you put yourself in your manufacturing partner’s shoes, you’ll understand why that size-of-the-prize conversation is so important to them!

What does exclusivity require?

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