The Spotlight Summer 2021 - Startup CPG

Page 18

WWW.CATAPULTSERV.COM

WHAT’S REALLY AT STAKE CONTRACT MANUFACTURER PARTNERSHIPS + EQUITY

By Jamie Valenti-Jordan, CEO of Catapult Commercialization Services

Early in the life span of a CPG company, a vital decision must be made: will they partner with a contract manufacturer (co-man), and if so, what will this relationship look like? This decision can have major implications on the brand’s future success. We hear a lot of questions from founders about co-man relationships, so we asked an expert to explain equity-based arrangements. Jamie Valenti-Jordan of Catapult Commercialization Services offers his insights into the often complicated financial relationship between these two parties -- and why “equity” and “strategic partnerships” are not always synonymous. 18


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