The craft beer industry continues to grow, and many brand owners rely on beer co‑packers or contract producers to bring their products to market. Whether you are an emerging beer brand without a production facility or an established brewery seeking to expand capacity, contract production can be a cost‑effective way to scale your business. But one critical question remains: should you have a written contract in place?
Why a Contract Is Essential
It might be tempting to move forward on a handshake deal, especially if you have an established relationship with the brewery handling your production. However, beer production involves significant regulatory oversight, financial investment, and brand reputation. Without a written beer co‑packing agreement, both sides risk misunderstandings that can lead to delays, financial losses, or disputes.
A contract brewing agreement provides clarity and legal protection by addressing:
- Roles and Responsibilities: Who sources ingredients? Who schedules production runs? Who is responsible for packaging and labeling?
- Quality Standards: Your beer represents your brand. Contracts should outline specifications for recipes, quality control, and packaging to maintain product integrity.
- Intellectual Property: Your recipe and branding are valuable assets. A contract protects these elements from misuse or unauthorized disclosure.
- Regulatory Compliance: Beer production is highly regulated at both the federal (TTB) and state levels. A contract allocates responsibility for compliance, labeling, recordkeeping, and excise tax obligations.
- Pricing and Payment: Clearly defined pricing models, payment schedules, and provisions for ingredient or cost fluctuations help avoid financial disputes.
- Liability and Risk Management: Contracts should address liability in case of product defects, contamination, or recalls.
Key Contract Considerations
When drafting or reviewing a beer co‑packing contract, brand owners should consider including:
- Production volumes and timelines
- Ingredient sourcing, ownership, and storage
- Packaging formats and labeling responsibilities
- Confidentiality and intellectual property protections
- Insurance requirements and indemnification clauses
- Dispute resolution procedures and termination rights
A carefully structured beer co‑packing contract ensures both parties understand their roles and responsibilities, reduces the risk of disputes, and protects both the beer brand’s integrity and the brewery’s reputation. A beer co‑packing contract attorney can help draft and negotiate these agreements, ensure regulatory compliance, safeguard intellectual property, and structure terms that protect your financial and operational interests.
How Lindsey Zahn P.C. Can Help
At Lindsey Zahn P.C., we focus exclusively on alcohol beverage law and understand the unique challenges faced by beer brand owners and co‑packers. Our law firm is experienced in drafting and reviewing beer co‑packing contracts and beer contract production agreements and can provide the following services:
- Draft and negotiate co‑packing and contract production agreements tailored to your business model;
- Review existing agreements to identify potential risks and strengthen protections;
- Incorporate TTB and state regulatory compliance into contract terms; and
- Help structure relationships that support your long‑term operational and financial goals.
If you are unsure where to start—or want to ensure your co‑packing agreement protects your brand—contact us today to schedule an initial consultation. We’ll guide you through every step of the process and help you build a strong foundation for your business.
📩 Email us at info@zahnlawpc.com
🔗 Visit our Contact Page to get started.