How do I check a coffee roaster’s packaging, bag stock and labels?
Count the bag stock, look at the label files and ask who prints them. Check that the bags in storage match what is currently being sold, find out how long reorders take, and see whether the roaster depends on one packaging supplier. Old labels or mismatched bags can mean waste or a delay after you take over.
Start in the storage room. Count the bags by size and type, check the valves, tins and cartons, and look at whether they are stored dry and clean. Compare what you find with the product list. If many bags carry an old design or a discontinued blend, ask whether they will be used or written off.
Then look at the labels. Ask who holds the artwork files, who prints the labels, and how long a reorder takes. Read a label on each current product and check that it is accurate and consistent with the seller’s own records, such as the roast date and the product name. Ask your lawyer or a qualified professional what a label should carry before you rely on it.
Next, look at the supply chain. Which supplier makes the bags, how long are the lead times, and what happens when there is a delay? A single supplier is a risk worth noticing. Ask for recent invoices and note whether the supplier gives the roaster flexible terms. Finally, ask who will own the artwork and the supplier relationships after the sale. Ask your accountant how packaging stock is carried in the books, so the count on the shelf and the count on paper agree.
Key takeaways
- Count bags, valves and cartons, and match them to current products.
- Ask who holds the label artwork files and who prints them.
- Find out reorder lead times and whether one supplier supplies everything.
- Make sure the artwork and supplier accounts transfer.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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