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Beverage co-packing plant relocation

Beverage co-packing plant relocation.
Keep customer supply in the plan.

Compare equipment reuse, customer-qualified products, receiving-site readiness, inventory cover and the full transition cost of moving a beverage co-packer.

Protected sanitary process skid prepared for equipment relocation
For owners, operations, engineering & financePlanning guide / North America

How DPS can scope the process and investment decision.

Start with the business outcome

A beverage co-packer moves more than machines. Customer recipes, package tooling, material ownership, records and service commitments must transfer with the production system. DPS can coordinate site / equipment interfaces and project delivery while the owner and specialists retain customer qualification and product-release duties. Value comes from a viable transfer with controlled total cost, rather than assumed annual profit from moving the same line.

Agree rigging, transport, preservation, destination work, specialist OEM support and customer / product qualification responsibilities. Customer-owned ingredients and packaging are not automatically the co-packer’s saleable inventory or avoided cash cost.

Beverage co-packing plant relocation: product and operating requirements.

Unbranded protein beverage samples and ingredient context

Customer / SKU commitments

List qualified recipes, packages, contracted campaign windows and release conditions. A production transfer may require customer review even if the same equipment is retained.

Material and inventory ownership

Separate owned stock from customer-owned ingredients, packaging and finished goods. Define usable cover, storage / shelf-life limits, lot identity and dispatch responsibility.

Destination and equipment fit

Verify retained package condition, controls support, access, utilities, cleaning and local interfaces. A delivered filler is not a restarted qualified co-packing operation.

Beverage co-packing plant relocation: compare process and equipment options.

Build product-specific service cover with qualified inventory or external production, where feasible.

Map commitmentsRecipes, formats, timing and ownership.
Confirm usable coverQualified stock, storage and dispatch.
Define uncovered exposureUse real contribution, not revenue.
Agree transition gatesCustomer and owner readiness.
Resolve before procurementInventory cover must be feasible for the actual product, shelf life, package and customer.

Equipment duties, utilities and supplier responsibilities.

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Select by operating duty and agreed supplier scope
SystemOperating dutyRelevant DPS guideConfirm before purchase
Process engineeringTurn measured requirements into an interface and duty specification.Process engineering ↗Actual product envelope, baseline data, qualified trials and responsibilities.
OEM and field interfacesConnect the selected equipment to the existing operating train.Installation & integration ↗Mechanical, electrical, software, site access and integrated acceptance.
Instrumentation and controlsExecute the agreed sequence and record meaningful equipment states.Automation & controls ↗I/O, alarms, recipe authority, backups and acceptance tests.
Utility supply and returnMeet the duty where the process actually uses it.Utility infrastructure ↗Peak overlap, recovery, quality, point-of-use conditions and isolation.

Co-packer relocation: reuse plan vs shorter-exposure plan.

Original hypothetical USD alternatives on the same destination and future operating basis. The annual ROI preset costs Plan B and deliberately assumes no recurring benefit.

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Beverage co-packing plant relocation selection and acceptance matrix
Cash boundaryPlan APlan B
Defined move / equipment scope450,000650,000
Separate destination work250,000250,000
15% capital contingency105,000135,000
Uncovered contribution loss + other transition910,000550,000
Working capital100,000100,000
Initial transition cash1,815,0001,685,000
One-time differenceReference130,000 lower total cost

Customer supply exposure, retained package uncertainty and operating value.

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Value-driver and responsibility map
Observed conditionMeasure before designDPS / team decisionEconomic basis
Customer supply exposureMap usable product-specific cover.Sequence transfer and temporary capacity.Uncovered lost contribution once.
Retained package uncertaintyInspect condition and current support.Compare reuse / refurbishment / new packages.Complete transition cost and future operating differences.
Unready receiving facilityTrack utilities, construction and interfaces.Set destination-ready gates.Avoidable one-time delay and temporary-service cost.
Lost recipe / lot continuityMap records, tooling and authority.Coordinate controls and responsible release.Usable operating evidence; no invented recall saving.

Compare operating corrections, retrofit and replacement.

Inspect retained equipment, tooling, software and supplier support; prepare the receiving facility before removal. Compare the full transfer against customer-qualified supply cover and required restart evidence.

Investment boundaryInclude dismantling, preservation, transport, destination connections, refurbishment and customer trials. The displayed Plan B has zero recurring benefit; its financial value is the one-time total-cost difference against Plan A.

Beverage co-packing relocation cost: move, restart and customer cover.

Compare proposals with the same product duty, supplier boundaries and acceptance basis. The amount below is a transparent planning example, not a market price range, supplier estimate or DPS quotation.

Illustrative scope-based budget / USD
Cost bucketAssumed amount
Asset survey / destination interface engineering$75,000
Removal, preservation and transport$150,000
Reinstallation and site connections$220,000
Controls restoration and package interfaces$75,000
Commissioning and agreed customer-trial support$80,000
Documentation, training and closeout$50,000
Defined project scope$650,000
Separate site / facility additions$250,000
Capital contingency (15%)$135,000
Separate one-time startup / shutdown cost$550,000
Incremental working capital$100,000
Total initial cash$1,685,000

The defined scope assumes applicable freight, procurement charges and taxes are included in the owner’s estimate. Add missing civil, land / shell, OEM, environmental, validation and permitting costs explicitly. Site and field conditions, duty, production access and quoted supplier scope determine actual price. Financing is excluded.

Worked operating case

Hypothetical screening case: 250 days × 0 equivalent useful hour/day × 0 accepted kg/h × 0% realization, capped at 0 kg incremental demand, gives 0 additional sold kg/year. Net price $0/kg less incremental variable cost $0/kg gives $0/kg contribution. Verified baseline purchase savings are $0, realized payroll savings $0, energy $0, cleaning resources $0 and maintenance $0 per year. Deduct $0 additional annual fixed cost. The selected shorter Plan B has zero recurring benefit. Its $550,000 startup boundary includes 96 uncovered hours × $5,000 contribution/hour = $480,000 plus $70,000 separate transition cost. The defined capital includes a $200,000 execution premium; with 15% contingency that premium is $230,000. The worksheet therefore reconciles to a $130,000 one-time alternative advantage, not an annual saving.

Calculated from these assumptions: steady annual net benefit $0; year-one net cash $0; cash payback Beyond 5 years; five-year NPV at 10% is −$1,685,000. Change the assumptions below to test a different case.

Relocation total cash and one-time outage alternatives.

Replace the illustrative inputs with your own measured or quoted values. The five-year pre-tax model uses good kilograms, demand-capped contribution and separately verified baseline savings; it is not a project quotation.

USD / 5-year screening model / pre-tax, unlevered

Beverage co-packing plant relocation scope-comparison example

This essential-project default costs the defined scope and assumes zero recurring benefit. Compare feasible alternatives and one-time execution exposure. Add annual benefits only when a separately evidenced change in future operating cash exists.

All-in investment & working capital
Calendar & constrained good-output rate
Verified baseline savings & added operating cost
Ramp, discount & target payback
Initial cash investment
$1.69M

Includes contingency, startup and working capital

Steady annual net benefit
$0.0k

Incremental operating cash before tax

Cash payback
Beyond 5 years

Includes year-one ramp assumption

5-year NPV
−$1.69M

At 10% annual discount

Steady annual cash ROI
0.0%

Net annual benefit ÷ initial cash

5-year net cash ROI
-100.0%

Net cumulative gain ÷ initial cash

Modeled incremental sales: 0 kg/year at $0.00/kg contribution. The base case does not recover the required discounted return within five years. Year-one net cash: $0.

Realization needed for the target operating payback

Not feasible

Demand, time, contribution or other cash benefits cannot meet the 4-year target under these assumptions.

CSV export is local. No inputs are submitted.

Cumulative project cash

BaseDownside

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Five-year cumulative project cashBase case starts at −$1,685,000 and ends at −$1,685,000. Downside ends at −$1,892,000. Annual values are available in the table below.−$2.04M−$1.30M−$555.0k$189.2k0Initial: −$1,685,000InitialYear 1: −$1,685,000Year 1Year 2: −$1,685,000Year 2Year 3: −$1,685,000Year 3Year 4: −$1,685,000Year 4Year 5: −$1,685,000Year 5
Undiscounted cumulative cash. NPV separately discounts year-end flows; working-capital recovery defaults to zero.
Inspect annual cash flow and sensitivity

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Base-case cash flows
YearNet cashCumulative cashDiscounted cash
Initial−$1,685,000−$1,685,000−$1,685,000
Year 1$0−$1,685,000$0
Year 2$0−$1,685,000$0
Year 3$0−$1,685,000$0
Year 4$0−$1,685,000$0
Year 5$0−$1,685,000$0

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Sensitivity assumptions are not forecasts
CaseAnnual benefitNPVCash payback
Downside$0−$1,892,000Beyond 5 years
Base$0−$1,685,000Beyond 5 years
Upside$0−$1,685,000Beyond 5 years

Downside: installed and site costs +20%, realization ×0.75 and unit contribution reduced by 20% of its absolute value. Upside: realization ×1.15, capped at 100%, and unit contribution improved by 10% of its absolute value. The demand ceiling still applies.

Formulas, scope and double-counting rules

Initial cash = (defined project scope + site additions) × (1 + contingency) + separate startup / shutdown cost + working capital. Contingency is conservatively treated as spent initially.

Sold incremental kg = min(days × recovered hours/day × constrained good kg/hour × realization, incremental demand). Contribution = sold incremental kg × (net price − incremental variable cost). New-volume labor, energy and packaging belong in that variable cost.

Baseline material benefit uses the verified percentage of actual purchases avoided at unchanged accepted baseline output. It is not a direct subtraction of two loss rates. Count a recovered kilogram once, either as its applicable cash saving or as incremental contribution.

Net annual benefit = contribution + independently realized baseline cash savings − added fixed operating cost. Year one scales gross benefits by the ramp factor while paying the full added fixed operating cost. Do not also count the same launch loss in the one-time startup amount.

Cash ROI = net annual benefit / initial cash. Five-year net ROI = (five-year cash inflows − initial cash) / initial cash. NPV = −initial cash + Σ cash flow(t)/(1 + discount rate)^t. Payback uses annual cash with linear interpolation within the recovery year. The threshold solver excludes terminal working-capital recovery.

This is a five-year screening horizon, not an asset’s entire life. No tax, debt, depreciation, grants, escalation, asset resale or additional replacement capital is modeled. Include recurring service costs in operating expense and use a detailed monthly budget for formal capital approval.

Co-packer move: reconciled one-time alternatives

Plan A has 168 uncovered hours and Plan B 96 after feasible customer cover. The $230,000 extra execution cost includes the capital premium and its contingency. Net alternative difference is $130,000 once; neither plan creates automatic annual sales.

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Commissioning tests and performance acceptance.

Agree the design basis.

Use representative products, measured constraints and a documented utility / cleaning envelope. Assign each supplier and owner interface.

Test the complete sequence.

Plan FAT / SAT, instruments, recipes, permissives, quality checks and upstream / downstream handshakes as appropriate to the scope.

Verify economic realization.

After stabilization, compare matched products and operating conditions. Reconcile extra output with sales, and baseline savings with actual purchases, bills and payroll.

Industrial HMI and control cabinet beside stainless process equipment

Published scope / project context

The published DPS case overview includes a co-packing plant relocation. It supports project-context relevance only. Another co-packer’s customer approvals, outage, site condition and costs must be assessed independently.

Read the published DPS case overview ↗

Compare installed scope, continuity and useful life.

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Decision framework, not a guaranteed cost comparison
DecisionTargeted interventionBroader replacement / new operation
ConstraintA measured gap can be corrected within retained assets.The verified operating envelope cannot meet product, demand or reliability needs.
Cost scopeInclude engineering, interfaces, shutdown, commissioning and retained-asset risk.Include all new systems, site / facility work, OEMs, utilities, ramp and working capital.
BenefitOnly incremental contribution and genuinely avoided costs versus the current operation.Demand-supported contribution less the full additional operating cost versus the agreed alternative.
AcceptanceVerify the changed duty and its effect on the complete line.Verify the integrated new train and the owner’s readiness to operate.

Beverage co-packing plant relocation project FAQ

Practical project questions
Does moving a co-packing line create a payback?
Not automatically. A required move can be evaluated by total transition cost, service continuity and future operating differences. The default does not invent annual capacity or savings.
Can we use all inventory as customer cover?
Only stock that is conforming, usable for the correct customer / product / package and available within storage, shelf-life and dispatch constraints. Ownership and qualification also matter.
Why does the shorter plan’s premium include contingency?
The full alternative comparison applies 15% contingency to the assumed execution-capital premium. Excluding it from the outage worksheet would overstate the shorter plan’s one-time advantage.
Are these prices or returns a DPS commitment?
No. The example inputs exist to make the business-case calculation reviewable. Actual scope, prices, schedule, savings and performance need project-specific assessment and agreement.
What should the first DPS conversation include?
Bring the product and package mix, operating baseline, commercial target, retained assets, site constraints, available outage window and the capital options you are considering. Mark unknowns for measurement or supplier trials.

Bring an operating baseline and a testable investment brief.

Prepare the information below, export the assumptions you have modeled, and discuss the unknowns with DPS. An unmeasured input is a question to resolve, not a reason to invent precision.

Discuss this project ↗

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Sources, assumptions and further reading.

DPS co-packing and project scope

DPS publishes co-packing / contract-manufacturing coverage and a co-packing relocation project context. The inventory, execution alternatives and cash amounts in this guide are original hypothetical assumptions, not that customer’s reported results.

Read the original source ↗

  1. DPS service and equipment scope
  2. DPS industry overview and published project context
  3. Process engineering
  4. Installation & integration
  5. Automation & controls
  6. Utility infrastructure

Guide assumptions reviewed on 26 October 2026. Qualified site / product teams establish regulatory and food-safety requirements; this guide does not prescribe a validated process.

Define the business case before the equipment list.

Bring the operating requirement, capital options and the evidence still to collect.

Talk to DPS ↗