CO-PACKER PROBLEMS : GETTING OUT OF A BAD CONTRACT

THE CLIENT

A mid-sized protein bar producer, with both domestic and international interests, entered into an exclusive agreement with a questionable co-packer. The co-packer had seven quality issues over the course of seven months, one resulting in a nationwide product recall.

THE GOAL

The co-packer had also failed to properly document the recall, and the client was looking to get out of the contract. However, the contract was “exclusive”, and in order for the client to exit the contract, the co-packer demanded compensation of $300K.

THE RESULTS

In 60 days, our team of contract negotiation experts were able to negotiate the client out of the bad contract, and reduce penalties by $200K. Additionally, our experts were able to source the client a new reputable co-packer.