V Group has signed an agreement with US-based beverage co-packer and manufacturer United Packaging Group (UPG) to serve its packaging needs.
As part of the agreement, UPG will initially produce V Group’s former incubation partner Fernhill’s RK Super brand in a 12oz package and RK Super XL carbonated beverage in a 16oz bottle later.
The packaging company will also co-pack V Group’s And Fitness Water in a dumbbell packaging, as well as oversee the production of Leaf of Faith’s Patience beverage line.
V Group president Larry Twombly said: “We are very excited to do business with this large co-packer. Their location, as well as their production abilities, will allow us to grow much quicker.
“It will fulfil our production needs for the entire West Coast. With the larger productions, comes economy of scale.
“We estimate that we will be able to save roughly $0.50 per 12 pack case on every product produced. This number is significant. The lower production cost will allow the companies to grow faster, allowing more for promotion as well as adding to the profitability of all brands.”
The company is in the final stages of installing a new production line for beverage packaging, which is scheduled to be completed in August.
Twombly further added: “Once demand exceeds the ability of the manufacturer to produce, larger facilities need to be engaged. This is a welcome challenge and a positive step in the evolution of the brands.”
UPG produces a range of water products, including flavoured and carbonated beverages.
The company currently operates multiple production lines and has the capacity to produce 500 bottles per minute, including custom PET bottles.