CPG Co-Manufacturing Contracts

As consumer packaged goods (CPG) brands continue to scale through outsourced production, co-manufacturing agreements are becoming far more than operational documents—they are critical risk-allocation tools. From supply continuity and pricing mechanics to quality control, IP ownership, audit rights, recalls, and termination provisions, poorly drafted contracts can create significant exposure when partnerships become strained or business conditions change.

In the 14th installment of this series, Daniel Faierman, partner at Habitat Partners, and Morrison Foerster partner Chuck Cotter outline several of the most common pitfalls in CPG co-manufacturing arrangements and offer practical guidance for structuring agreements that better align incentives, preserve flexibility, and mitigate downstream disputes. This is a useful read for emerging and established brands alike, as contract manufacturing relationships become increasingly central to growth strategies.

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More about Morrison Foerster’s Consumer Team: We represent food, beverage, supplement, beauty, and personal care brands and funds that invest in those brands. A strategic partner to our clients throughout their life cycles, we counsel on everything from IP, regulatory, and brand strategy, to financing, commercial partnerships, and M&A. With 400+ consumer clients, 100 brand and fund representations, and billions of dollars in closed transactions, we’re positioned where the next wave of game-changing brands and headline transactions will emerge.