Private Label Arrangements: What CPG Brands Should Know Before Signing the Deal | Foster Garvey

In this mini episode, host Daniel Scharff sits down with Hillary Hughes, leader of the Consumer Brands Industry Group at Foster Garvey, for a straight-talking breakdown of private label arrangements — what they are, how they're structured, and what can go wrong if you don't get the contracts right. Private label is one of the most misunderstood opportunities in CPG. Done right, it's an additional revenue stream that helps brands build scale and monetize manufacturing capacity. Done wrong, it's a margin-eroding, cannibalization-accelerating trap that leaves you on the hook for volume you can't fulfill, at prices you can no longer afford to hold, under contracts that don't protect you when things go sideways. Hillary has seen all of it. She walks through the entire private label lifecycle — from the first conversation with a retailer to the termination clause you need before you ever sign — and shares the specific legal and commercial structures that protect brands at every stage. Whether you're being approached by a retailer for the first time, actively negotiating a deal, or trying to figure out what went wrong with one you're already in, this episode gives you the framework to think clearly about private label. Key moments: 0:00 What is private label — and what makes it different from your branded business 2:06 Why brands pursue private label, and who's actually ready for it 3:36 The spectrum: white label vs. custom formulation vs. unique innovation 5:18 How retailers find private label partners — and the co-man risk you need to know about 7:35 Good, better, best: how to position your branded product against your private label version 10:21 What goes into the arrangement: co-man obligations, forecasting, exclusivity, and commercial terms 12:38 Who owns regulatory compliance — and why you're always in the middle 14:31 When things go wrong: the finger-pointing problem and how to prevent it contractually 16:34 Pricing flexibility: force majeure provisions for commodity spikes and supply shocks 18:47 Volume commitments: how to protect yourself from over-promising on capacity 21:03 Why verbal promises from buyers are worthless — get everything in writing 21:55 Planning for termination: the exit rights every brand should negotiate up front Connect with the guest: Hillary Hughes — Chair, Business Group, Foster Garvey PC 🌐 Website: http://www.foster.com 🔗Hillary on LinkedIn:   / hillaryhhughes   🔗 Foster Garvey on LinkedIn:   / foster-garvey-pc   Daniel Scharff — Founder, Startup CPG 🔗 LinkedIn:   / danscharff   About Startup CPG: Startup CPG is the largest community for emerging brands: 35,000+ Slack members, the #1 podcast in CPG, 100+ events per year, and award-winning resources to help brands grow. Join free today: https://startupcpg.com/sign-up Stay connected: 📸 Instagram:   / startupcpg   🔗 LinkedIn:   / startupcpg   If you enjoyed this episode, like, subscribe, and leave a 5-star review on Apple Podcasts or Spotify! #StartupCPG #CPGPodcast #PrivateLabel #CPGLegal #FosterGarvey #CPGFounders #EmergingBrands #RetailStrategy #CPGCommunity #FoodAndBeverage #BrandStrategy #CPGOperations