AboutEric Hofer Expertise Over 27 years experience, with 17 in international FMCG in back office operations and in field sales and data collection, including design, development and deployment of Handhelds, Marketing Equipment (Service, Tracking and Return on Investment), reporting and Vending management. Have participated on the launch of operations in new markets, and re-engineered the back office in several countries.
Experience Designed and led the development and deployment internal ERP system for Pepsi used in On-Premise/Vending in 13 markets.
Designed 2 handheld systems, the latest is now deployed in 4 markets internationally.
Re-engineered the back office functions (settlements, despatch, invoicing, credit control, etc) for over 20 snack, confectionary and beverage operators.
Developing software: Progress, VB, Access, C, Sybase, SA
Organizations Innovative-Selling Solutions
Publications BudapestSun
Education/Credentials State University of New York - BA Economics
NYU - Courant - Graduate work - Computing
Past/Present clients PepsiAmericas
PepsiCola International
PepsiCola Company
British Steel
British Telecom
Britvic (Pepsi's bottler in the UK)
AT&T
BellSouth
Mars Overseas Bottling
Pepsi France
Matutano (Frito-Lay Spain)
Frito-Lay
Pepsi Foods International
Chase Manhattan Bank
Kidder Peabody
National Power
SmithKline Beecham
Mars Overseas Bottling (Pepsi Azerbaijan)
A&P Bottling (Pepsi Serbia & Montenegro)
Iberia Bottlers (Pepsi Georgia)
Question Im looking to get a copacker in place for a fruit/vegetable juice. Im having an incredibly hard time finding one - but thats a different issue.
For my question, I will assume that I have found a couple and need to decide.
1) I am in NY. Should a copacker be near me geographically? I should expect to be on site when the product is being mixed, filled, etc., right? This will also save considerably on shipping - both shipping concentrates to the copacker as well as shipping to my warehouse area. Are these typical concerns?
2) Assuming my juice will sell for $2.00 per 12 ounce bottle. How much would I typically look to make on each bottle? Im thinking that if I can produce it for $1.30 (the cost of shipping concentrates to the copacker, bottles, having them process and bottle, and then ship back to my warehouse), that I would sell to a distributor for $1.50. Distributor would sell to retail outlet for $1.70 and the retail would sell it for $2.00
Does that seem about right? Are my assumptions reasonable?
Answer Rich,
Have you already done the test, determined the optimal flavour mix, shelf life, etc.?
I'm concerned that your costs are high vs your RRP, leaving 0 room for error, returns, etc. Of course, the 1st production runs are loss leaders as you establish whether your concept works. Once you start to get assured volume, will you be able to get your costs down?
Typically the buffer is not 15% but nearly 100% - e.g. if it's going for $2, then costs all in are $1. Will the market bear $2 a bottle?
