Paket Goes From Filling Shop
to Full-Service CDMO

This professionalization accelerated with modernization mandates and the rise of third-party certifications. Today, working in the cosmetics industry requires compliance with MOCRA (the Modernization of Cosmetics Act). In addition, all personal care products must now be registered with the FDA, whereas previously only over-the-counter drugs were registered.

QC lab begins a new chapter

To navigate this evolving landscape and maintain the trust of brand partners, Paket embarked on a major new chapter in 2021: a dedicated R&D and quality control lab. Completed in 2024, the project represented the largest capital investment in the company’s history, with immediate strategic benefits.

“We were trying to tell everyone that we were no longer just a sampling company,” Brian explains. “When brands came on site and saw a full-scale R&D and QC lab with experienced people, it reinforced that we actually have these capabilities.”

Leading Paket are (left to right): Kevin O’Malley as EVP, Mark O’Malley as CEO, and Brian O’Malley as president.Joseph DerrThe lab is fully equipped for comprehensive testing and development. The QC department handles testing for quality of compounding and package materials, with specialized equipment for FTIR analysis (raw material identification), microscopy, viscosity testing, color and odor analysis, moisture analyzers, pH meters, and penetrometers, among others. The team tests everything from raw materials to finished products—pomades, lotions, and more—to ensure each meets strict quality specifications.

The lab is staffed by talented formulators who brought years of experience at major brands with them. “We have two really strong formulators—one who worked at Helene Curtis and Stepan, and another who worked at L’Oreal and other leading companies,” Mark notes. With skilled talent and advanced equipment, Paket goes beyond mere manufacturing to create genuine development partnerships.

“Our R&D department works with brands to understand what they want, so we can design and offer a turnkey solution where we design, manufacture, and package everything for them,” says Mark.

From samples to comprehensive solutions

One household product brand—whose name Paket could not divulge due to nondisclosure agreements—shows Paket’s evolution from sampling specialist to comprehensive manufacturing partner.

The brand initially contracted Paket for the company’s sampling services. For about ten years, Paket handled their sampling program, which eventually ended up at retailers like Target.

“But in 2019, we talked to them about expanding beyond sampling,” Brian explains. “We now do all their retail and sampling formats—we fill their bottles, their jars, and their pre-made pouches.”

This relationship demonstrates Paket’s flexibility in approaching new ideas with brands. “Most of the ideas come directly from the brands,” says Mark. “But we help them develop the format and we ask how much they want to give away and help them develop the size for the sample.”

One signature Paket innovation goes beyond the typical card-and-sample format: a coupon card with a built-in perforation that allows consumers to easily detach the coupon from the sample pouch—driving off-the-shelf sales from promotional samples while letting brands tell their story right on the package.

The machines behind the mission

Paket’s facility includes specialized equipment: Bartelt and Prodo-Pak Corp. form/fill/seal machines for pouches, Norden/Citus Kalix tube fillers, and liquid fillers from Packaging Dynamics, REB, and MRM/Elgin (now owned by Cozzoli Machine Co.) for bottles and jars. Compounding tanks range from 40 gallons to 3,200 gallons, with 7,000-gallon holding tanks for additional storage.

The blending area processes deionized (DI) water through carbon filters and UV radiation, enabling seamless scaling from pilot to commercial production.

For filled jars and bottles, Paket offers top, bottom, wrap, as well as front and back labeling. “We can run 2-ounce jars, 4.6-ounce jars, 10-ounce jars, and 17-ounce bottles across a wide array of sizes,” Brian notes. “We’ve added numerous features to enable this flexibility.”

While full automation across all packaging formats remains impractical for flexible contract manufacturing, Paket automates strategically—particularly in end-of-line operations, where the company has recently invested.

Finding the sweet spot

Mark describes Paket’s position in the contract manufacturing landscape using an hourglass analogy: many large manufacturers at the top, few players in the middle market, and many small operators at the bottom.

“Where we sit is probably a little bit above the mid-range,” he says. “When I bought the company in 1996, we did less than a million dollars annually but have grown considerably over the last 30 years.”

Paket deliberately targets brands that prioritize flexibility, handling projects from pilot runs to major campaigns for them. That kind of flexibility has become a defining advantage as the landscape around Paket continues to shift.

“There’s been rapid consolidation in the contract manufacturing space,” Brian notes. “We’ve heard stories of co-manufacturers reducing SKU count from 4,000 SKUs down to 1,000. When a competitor divests 3,000 SKUs and brands need to find a new manufacturing home for those SKUs, that’s a tremendous opportunity for us.”

Ready for what’s next

Paket has invested in successive capital projects every two years since 2018—in mixing tanks, in filling lines, and most recently the R&D/QC lab. With expanded capacity, the company is actively pursuing new partnerships and working with brands on product launches scheduled for shelves in 2026.

“We’re really excited about what’s in the pipeline right now,” Mark says. “Many co-manufacturers have struggled with capacity and haven’t had the ability to dive headfirst into opportunities, but we have significant available capacity and the agility to move business or volume quickly.”

Brian sums up what makes Paket unique.

“Our goal is to deliver best-in-class manufacturing and packaging services through quality, innovation, and sustainability to brands worldwide. We can change course quickly and we’re nimble in ways that larger organizations can’t be. We’re a flat organization by design, and I think that dynamic, combined with being family-owned and operated, really sets us apart.”