Most people, myself included, don’t really think about who makes the packaged goods on their grocery store shelves.
The biggest companies generally have their own factories, but that’s a relatively small part of the industry. In other cases, brands use what’s called a co-packer.
That’s a term I learned watching “Shark Tank,” where many entrepreneurs learn they can’t efficiently do everything themselves. Instead, they bring their recipe to a partner who specializes in making things.
Kevin O’Leary once even made an offer to a contestant, Nowhere Bakery, contingent on it using a co-packer.
“I want to put it in major grocers around the brand,” he said, CNBC reported. “I’ll give you $200,000 for 20% … I’m going to bring the co-packer I want in mind that I think you’re going to like, and I’m going to give him half of my equity.”
Co-packers usually operate under nondisclosure agreements — they can’t talk about the products they produce — but when a major player in the space files for Chapter 11 bankruptcy, it has a ripple effect.
“Creative Foods LLC, a Baltimore, OH-based commercial bakery product manufacturer, filed for Chapter 11 protection on January 14, 2026, in the Southern District of Ohio. The company, which operates as a privately held entity, filed under Subchapter V to facilitate a restructuring of its debt obligations while maintaining its status as a regional supplier and private label partner,” RK Consultants reported.
Documents filed on PacerMonitor verified the Chapter 11 bankruptcy filing.
The company operates two primary manufacturing facilities, including a 75,803-square-foot plant in Osceola, AR, and its headquarters in Baltimore, OH.
“Creative Foods specializes in the production of margarine, spreads, and perishable prepared foods for various food retailers and distributors. Led by CEO Bob Berger, the manufacturer recently invested in domestic equipment to reduce its reliance on international raw material suppliers and automate production lines,” RK Consultants added.
The company’s Chapter 11 filing was a direct result of recent business issues.
“The filing follows a liquidity crisis triggered by the loss of a contract manufacturing partner that accounted for 50% of the company’s annual revenue,” according to RK Consultants.
Management cited significant macroeconomic headwinds, including a 45% to 55% surge in input costs from European suppliers following the 2022 invasion of Ukraine and sustained labor shortages.
The company intends to pursue a Section 363 sale of its assets to preserve the business as a going concern.
Co-packers produce some well-known brands.Shutterstock ·Shutterstock
Co-packers like Creative Foods generally can’t share what brands they produce, and they must keep other secrets.
“Recipe confidentiality is important to us and guaranteed in a non-disclosure agreement. When recipes are shared with Creative Foods, they need to be typed with an ingredients list, method of production, and scaled to 1 or 5-gallon batch sizes for test runs in our kitchen,” the company shared on its website.
More Bankruptcy:
Not all of the Sharks on “Shark Tank” support the idea of using co-packers.
“Every food product [founder] I ever had that went into a co-kitchen came out of the kitchen and did it themselves again,” Barbara Corcoran said to Nowhere Bakery. “Co-packers never work for them.”
Voluntary Chapter 11 filing (2026): Creative Foods LLC filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Ohio on January 14, 2026, beginning the reorganization process. The case was assigned Case No. 26‑50186 and documented in federal court records.
Bankruptcy status: The filing shows that the debtor paid the required Chapter 11 filing fee of $1,738 and entered bankruptcy as a debtor in possession, meaning it will operate its business under court supervision while restructuring.
Court and representation: Creative Foods LLC is listed with a listed address in Baltimore, Ohio, and was represented at filing by counsel from Allen Stovall Neuman & Ashton LLP, according to PACER‑derived docket information.
The bankruptcy petition for Creative Foods showed assets in the range of $1 million to $10 million and liabilities in the range of $10 million to $50 million.
Creative Foods LLC reports that its number of creditors is in the range of 1-49. Source: Bankruptcy Observer
“By outsourcing the packaging side of operations, companies can free up internal time and resources, and have peace of mind that the job will be done safely, efficiently, reliably, and to their precise specifications by packaging experts,” noted Co-packing Services and Companies in the USA, A Thomas Industry Overview.
The global contract packaging market was valued at almost $79.7 billion in 2025, and is expected to reach more than $120 billion by 2030, growing at an 8.69% CAGR.
“During economically challenging times, the benefits of outsourcing often outweigh the drawbacks for brands that find it difficult to manage these functions internally,” BCMPA Presidet Emma Verkaik said in a press release. “It’s about exploring how third-party providers can support their needs effectively.
