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SellingExpert answer · 1 min read

How do I handle my food plant’s co-packing customers during a sale?

Plan the conversation before you start it. Tell co-packing customers only when a buyer is serious and a confidentiality agreement is in place, and let your biggest accounts hear it from you first. Expect questions about recipes, recalls, pricing and who will run their lines.

Co-packing customers trust you with their recipes, labels and launch dates, so their first worry is whether that trust moves with the plant. Sort the customers by importance and by how their contracts treat a change of owner. Ask your lawyer to read each agreement for assignment, notice and termination wording before anyone is told.

Timing matters. Telling customers too early can start a rumour and trigger a quiet search for another plant. Telling them too late feels like a betrayal. A common path is to tell the largest accounts yourself, once a buyer is serious, and bring the buyer to a short introduction. Prepare a clear message on who will manage production, how quality records will be kept and whether the licences and audit results will carry through. Customers also want to know whether their production slots stay protected. Ask each customer what they would need to see to feel comfortable staying.

Be ready for questions about recall procedures, allergen controls and ingredient ownership. Keep customer formulas and pricing away from the buyer until the stage where your lawyer says it is safe to share them. Write down what each customer asked for, since buyers often want proof that the relationships are stable.

Key takeaways

  • Rank customers by importance and read each contract’s change-of-owner wording with your lawyer.
  • Tell the biggest accounts yourself, and only once a buyer is serious.
  • Protect recipes and pricing until your lawyer says sharing is safe.

Sources

This answer is checked against primary sources. Links were last confirmed on the dates shown.

  1. 01
    Business Development Bank of CanadaIndustry
    How to sell your business
    bdc.ca·Checked Aug 14, 2026
  2. 02
    Business Development Bank of CanadaGovernment
    How to minimize negotiations when selling your business
    bdc.ca·Checked Oct 21, 2026
  3. 03
    Business Development Bank of CanadaGovernment
    What are the steps to buying a business?
    bdc.ca·Checked Oct 21, 2026

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