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Frequently Asked Questions

For nearly 30 years, our clients have asked important questions about entering and operating in the U.S. CPG market. Below is a selection of frequently asked questions that many companies, whether emerging brands or established businesses, want answered before expanding into the U.S.

Getting Started

Thoroughly research and familiarize yourself with the U.S. market. This includes understanding consumer behavior, market trends, and any potential competition.

 

Conduct a market test or undertake a comprehensive study to ascertain whether your products have potential demand within the U.S. market. This could involve surveys, focus groups, or small-scale product launches in specific locations.

 

Formulate a financial plan to ensure you have sufficient funds to support your company’s objectives. This includes budgeting for production costs, marketing, shipping, and other operational expenses.

 

We can facilitate this process by connecting you with industry consultants and providing access to educational resources such as seminar recommendations and research materials. These resources will further aid you in your journey to understanding and entering the U.S. market successfully.

We work with reputable U.S. law firms that have experience forming C Corporations for international clients. With the appropriate documents, these law firms can typically form a U.S. C Corporation for under $2,000 (USD).

 

The cost of forming a U.S. C Corporation can vary depending on factors such as the state of incorporation and the specific services required. However, working with experienced legal professionals helps ensure the process is handled efficiently and cost-effectively.

 

We can also refer you to reputable U.S. law firms that specialize in forming C Corporations for international fast-moving consumer goods clients, helping ensure the structure and setup are aligned with your business needs.

Although an overseas company can operate in the U.S. without forming a U.S. legal entity, many consumer goods companies choose to do so because of the benefits it can provide.

 

A few common advantages include:

 

  • Limited liability protection: Certain legal entity types help protect the owners’ personal assets if the business encounters legal exposure or financial challenges.

  • Tax advantages: Depending on the structure and situation, forming a U.S. entity may allow for expense deductions and other tax-related benefits.

  • Improved access to banking and capital: Having a U.S. entity often simplifies access to banking services and can support fundraising activities, including investments and stock issuance where appropriate.

  • Greater credibility in the market: A U.S. legal entity can increase confidence with customers, retail partners, distributors, and other stakeholders.

 

We can work with you and your attorney to help ensure the entity formation process is completed correctly and aligned with your U.S. business goals.

In short, yes. Insurance is required to operate in the U.S. consumer goods market. This is because virtually every distributor and retailer will require a certificate of insurance (COI) naming them as an additional insured.

 

If an incident or claim occurs related to your product, distributors and retailers will typically require that your business carries the appropriate coverage so they are not held liable and your company is protected.

 

The type of insurance required can vary depending on factors such as the category of products being sold, the size of the business, and the specific requirements of each distributor or retailer.

 

We understand the importance of having the right insurance coverage in place and work with an experienced insurance broker who can help clients obtain appropriate coverage if they do not already have it.

By engaging with us at an early stage, we can help guide you through entering the U.S. market, including market research and product development, navigating legal and regulatory requirements, and establishing a U.S. business entity.

 

We understand that expanding into the United States can be a complex process, especially while you are still becoming familiar with the nuances of the U.S. marketplace. That’s why we encourage international companies to engage us early in their exploration of the U.S. market, even if they do not yet have sales.

 

More than one client or prospect has lost a U.S. sale because they were unable to meet customer requirements in a timely manner after agreeing to supply product. Having your U.S. operations prepared to support customers quickly can be an important factor in long-term success.

 

We aim to help you make informed decisions and avoid costly mistakes.

We differentiate ourselves as a fully integrated Business Process Outsourcing (BPO) provider focused exclusively on Consumer Packaged Goods (CPG) and Fast-Moving Consumer Goods (FMCG). We originally started as a consulting firm and evolved into a full-service back-office provider as we recognized the need for outsourced, integrated operations for both international and domestic brands. We have supported clients of all sizes, including large clients such as Nestlé and Unilever, as well as smaller natural product companies.

 

We stand apart from many competitors because we provide a complete suite of back-office services in one integrated model. This includes accounting, supply chain management, order processing from order-to-cash, trade deduction management, and robust financial reporting.

 

We also developed OpalTrack™ as our ERP platform and integrated it with Microsoft Dynamics for accounting purposes. We continue to invest in and develop OpalTrack™ in-house, which strengthens our ability to deliver a level of FMCG-specific BPO service that most providers cannot match.

While the exact onboarding timeline can vary depending on several factors, we typically require approximately 12 weeks to set up a new company in OpalTrack™ and our supporting systems, starting from receipt of the startup fee and all required information.

 

During this period, our team works closely with the new client to gather key setup details, configure OpalTrack™ appropriately, and complete the required onboarding steps. In some cases, we can begin processing orders in as little as four weeks, depending on readiness and the information available.

 

By working closely with our team and following our proven onboarding process, companies can move through the startup with confidence and be prepared to support customers efficiently.

When you partner with us, we provide a dedicated U.S.-based team of professionals with experience across supply chain management, order fulfillment, accounting, trade promotion management, and more. We work closely with you to ensure your account is managed in a way that aligns with your specific needs, priorities, and company goals.

By working with us and outsourcing sales and marketing through a dedicated third-party sales group, international consumer goods companies can successfully operate in the U.S. market without the need to maintain an in-house U.S. employee team.

The time required will depend on how much authority and responsibility the parent company delegates to its U.S.-based service providers. In many cases, a few hours per week from several individuals is sufficient during the first year. As the business grows, assigning a full-time team member may become appropriate.

Sales and Pricing

In most cases, our clients’ products are sold through established sales groups such as master brokers, sales managers, national brokers, and regional brokers. These sales professionals represent the brand and product line to buyers and help drive U.S. market growth.

 

We support clients throughout the process by providing ongoing information, coordination, and back-office assistance related to these sales teams when needed. For international consumer goods companies entering the U.S., we can help connect you with the appropriate sales resources, including:

 

  • Master brokers

  • Sales managers

  • National brokers

  • Regional brokers

 

Our role is to help ensure clients have the right support structure in place while we remain separate and focused on providing strong, integrated back-office operations.

As dedicated advocates for our clients in the U.S., we believe in providing valuable insights into potential customers and market strategies. We understand the importance of driving top-line sales and profitability while maintaining an efficient and strategic operating model.

 

That is why we do not directly sell our clients’ products. Instead, we focus on supporting clients by helping them engage a dedicated sales group that operates separately from our back-office services. This separation creates flexibility, allowing changes to be made within sales or operations without disrupting the other.

 

By keeping back-office operations separate from the sales function, we are able to deliver a more efficient and effective service model. Clients receive the right support and guidance related to sales and marketing strategy, while we remain focused on building a strong operational foundation that supports growth and profitability.

 

This approach provides the best of both worlds and allows us to deliver the highest level of service while supporting long-term success in the U.S. market.

We can support clients by identifying and referring appropriate sales personnel, including master brokers, sales managers, national brokers, and regional brokers. While we provide ongoing information and assistance related to these sales groups when needed, the ultimate responsibility for building and managing the sales team remains with the client.

Sales group costs can vary significantly based on the structure chosen, as well as the pricing model and scope of representation. The total cost depends on several factors, including product category, expected sales activity, and the class of trade being pursued. At a national level, brands typically see costs ranging from $6,000 to $20,000 per month, in addition to a sales percentage that often falls between 1% and 10%.

 

We support clients by providing insights into the cost of doing business across major U.S. sales channels, including:

 

  • Distributors

  • Retailers

  • Mass merchandisers

 

This information helps consumer goods brands evaluate pricing, margins, and overall profitability. We provide guidance to help clients make informed decisions and build a pricing strategy that aligns with both market expectations and business objectives. Final pricing decisions remain with the client based on their goals and strategy.

We help companies evaluate whether their products are a good fit for the U.S. market by providing practical guidance and industry insight. This typically involves reviewing several key factors, including product quality and competitiveness, pricing, promotional and marketing programs, market trends, the competitive landscape, and any regulatory or legal hurdles that could affect the product’s success.

 

When appropriate, we can connect clients with qualified consultants who specialize in market research and market analysis. This support helps clients better understand U.S. demand, identify opportunities, and determine the most realistic path to success.

 

We also provide guidance related to product positioning, pricing strategy, and distribution channel selection.

Yes. Private label and food service have unique requirements compared to typical U.S. CPG food businesses, and we support clients in these segments with tailored guidance and back-office support. We have experience supporting private label programs and similar channel-specific requirements in the U.S. market.

We help clients evaluate pricing by providing insight into the cost of doing business across key U.S. channels, including distributors, retailers, and mass merchandisers. Our role is to support clients in navigating the pricing landscape and developing pricing that reflects product value while remaining competitive. Ultimately, pricing decisions are determined by the client based on their business goals and strategy.

Yes. We can assist with preparing vendor documentation in coordination with the client and the sales team. While we support the process and provide guidance, decisions related to pricing, minimum order quantities, promotions, and other commercial strategy items are ultimately determined by the client.

Yes. We can support the shipment of sales samples and help coordinate fulfillment in the most practical way based on the situation. Samples may be handled internally, through the sales broker, or through a trusted third-party provider. We work with the appropriate parties to ensure samples are shipped economically and efficiently, and we avoid using a warehouse for small sample shipments when possible since warehouse fees for small-unit shipping can be unnecessarily high.

Yes. We can support and manage EDI (Electronic Data Interchange) transactions for our clients. In many cases, we leverage a trusted EDI partner that we use across our client base, which allows brands to access EDI services at a more cost-effective, shared-rate structure. EDI fees are typically based on the client’s transaction activity and volume.

 

As a client’s volume grows, we can also evaluate the most efficient long-term setup, including whether it makes sense to continue through our EDI partner or transition certain activity to in-house support.

We can provide information and referrals to potential customers, including both regular and salvage sales opportunities, to support our clients’ sales efforts. We maintain relationships with retail buyers and interact with them on administrative matters when needed. However, we do not engage in direct selling activities.

Yes. We can assist with tasks related to GS1 and GDSN (1WorldSync). These data services provide standardized systems for product identification, data synchronization, and data exchange among trading partners across the supply chain. This allows customers to accurately identify, track, and share product data, improving inventory management, supply chain visibility, and logistics efficiency.

 

We maintain proficiency with these systems by investing in ongoing training and staying current through seminars and webinars.

Trade Promotion & Deduction Management

Trade promotion involves offering special deals, discounts, or incentives to retailers or distributors to promote the sale of a manufacturer’s products. Trade promotions can take various forms, such as temporary price reductions, volume discounts, buy-one-get-one-free (BOGO) offers, promotional pricing, and trade allowances.

 

Deduction management refers to the process of managing and reconciling deductions taken by retailers or distributors from invoices during payment. Deductions are usually taken for various reasons, such as promotional allowances, rebates, damaged goods, returns, and other adjustments. Deduction management involves verifying the validity of the deductions, reconciling them with the agreed-upon terms and conditions, and resolving disputes or discrepancies.

 

Both trade promotion and deduction management are critical components of a manufacturer’s sales and marketing strategies, and effective management of these activities can greatly impact a company’s profitability and overall business performance in the competitive FMCG industry.

The level of trade promotion spending can vary significantly among clients, product categories, classes of trade, and years in business. For example, trade promotion spending can range from 0% to 35% of sales. Therefore, it is important for clients to incorporate expected trade promotion costs in their pricing models.

 

At Opal, we have observed a wide range of trade promotion spending among our clients.

Trade promotion types include but are not limited to the following: 

  • Off Invoice Allowance:
    • A deal where the manufacturer offers the customer (retailer, distributor, wholesaler) an allowance to be taken off the gross amount of the purchased item or group of items (promo group). The allowance is available for a limited period based upon both the order dates and ship dates.
  • Scan
    • Promotion in which the customer takes a deduction from the distributor or manufacturer ONLY when an item is scanned at the register. Also referred to as a “Retro” by European companies, these promotions are much more common than a Warehouse Withdrawal Case Discount.
  • Warehouse Withdrawal
    • Promotion in which the customer takes a dollar amount off per case upon purchase from a distributor or when an individual store withdraws product from the retailer’s warehouse instead of a scan at the register. This is an incentive to drive product into the store, but does not generally require any proof of performance on the part of the retailer. In this situation, the deduction is taken whether the store sells the product(s) to the consumer or not. Warehouse Withdrawal Case Discount promotions are less common than Scans.
  • Case Stack Program
    • A case stack program allows the customer to get increasing discounts by purchasing larger case quantities of the product (example would be “buy 5 cases, get 1 case free”; “buy 8 cases, get 2 cases free”; “buy 10 cases, get 3 cases free”). This type of promotion requires a minimum purchase quantity and can offer increasingly greater allowances as they buy more. Proof of performance is usually required from the retailer in the form of invoice copies.
  • Slotting/New Item Placement/Free Fill
    • The retailer’s, distributor’s and/or wholesaler’s fee to begin stocking an item that is new to that retailer, distributor, or wholesaler. This fee can be a fixed amount per SKU or based on the number of cases per SKU per store stocking. Payment(s) can be by check or deduction(s) in 1 lump sum or in installments. This fee can also apply to new store openings; thus, the plan can cover an entire year. This fee will be referred to in various ways on deduction backup, including new item placement fee, slotting or free fill. MCBs (manufacturer chargebacks) of 50‐150% of product sales price typically fall into this deduction except for discontinued items.
  • Feature Ad
    • Advertising directed to the consumer either online, mail or in‐store circular. These ads can be published in various forms depending on the retailer and referred to as different types of publications (newsletter, newspaper ad, magazine, mailer, flyer, etc.)
  • Distributor/Sales Advertising Directory (Catalog Ad)
    • Advertising is directed to the buyer in a product catalog. Sometimes referred to as a salesman’s book, the catalog may include product promotions. The product directory is typically updated quarterly and is available online or in printed copy. The vast majority of these deductions would have no promo group associated to them.
  • Displays – In Store
    • In-store activity which includes secondary placement of product in an area such as endcaps (end of aisle), in‐aisle case displays or pallet displays for the purpose of promoting sales. This often applies to seasonal products. Generally, the retailer charges a fixed/flat fee for this type of activity (not a per-case amount).
  • Demos/Samples
    • In-store demonstration of the product (whether product is prepared or individually wrapped). Also includes samples given to the consumer in the store and given by the distributor to retailers.
  • Coupon Redemption – Retailer Rewards
    • Online, mail or in‐store circular coupon or other reward-type program generally attached to a loyalty card (including fuel and other rewards related specifically to the purchase of the product), issued by a retailer and valid only at that specific retailer. This is different from coupons issued by the manufacturer, which are valid at any retail outlet. Manufacturer coupons usually would not be deducted from a customer’s remittance; manufacturer coupon expense is handled between the manufacturer (Opal client) and the coupon redemption house.

Opal utilizes trade promotion control systems to manage trade promotion programs and deductions. The process involves but is not limited to:

  • Entering plans, including rates and projected volumes, into the client portal of OpalTrack
  • Matching shipments to plans
  • Matching actual deductions to plans for monitoring and analysis of spending
  • Monitoring and pursuing collection of questionable and unauthorized deductions when appropriate

 

With Opal’s trade promotion management process, our clients can have peace of mind knowing their promotions and deductions are being managed with accuracy and efficiency.

Yes, Opal can handle the collection of unauthorized deductions. However, clients will need to engage brokers and other sales personnel in the process to determine whether the effort is justified.

The important dates to follow are:

  • Order Dates
    • Order Dates refer to the range within which the customer can place a purchase order for a product and receive the promotional allowance. It is important for Off Invoice allowances.
  • Ship Dates
    • Ship Dates refer to the range within which the customer can request shipment of product and receive the promotional allowance. Some leeway is granted regarding the requested ship date on the Purchase Order and the actual date the product is shipped or picked up at the warehouse. This date range is particularly important for Off Invoice allowances.
  • Effective Dates
    • Effective Dates are the range within which the customer can perform the required promotional event. This range is generally four weeks, and some leeway can be granted. This date range is particularly important for scan/retro e.g. bill back/deduction allowances.
  • Performance Dates
    • Performance Dates refer to the range within which the customer performs the required promotional event. This range usually is a one or two-week period. This date range is particularly important for scan/retro e.g., bill back/deduction allowances.
  • Promotional Events
    • A Promotional Event is any activity defined offered by the manufacturer (Opal client) to their customer e.g. the distributor, wholesaler, retailer, or other purchaser, that entitles the purchaser to the discount, deduction, rebate, lump sum payment or other compensation.
  • Proof of Performance
    • Proof of Performance is any evidence that confirms the customer actually performed the required promotional event. This evidence can include photographs, tear sheets (copy of trade feature ad), shelf tags, broker/merchandiser confirmation, third-party data (IRI, Nielsen, Spins) or other documentation.

Inventory

Our clients are the owners of their inventory until it is sold to a customer. It’s important to note that The Opal Group does not take possession of the inventory, but rather acts as a facilitator to help clients manage and track their inventory effectively.

Yes, Opal will track lot codes and aging requirements of products based on the quantity of inventory, value, and remaining shelf life. The frequency of manual reporting will be determined in agreement with the client. OpalTrack can also integrate with other warehouses’ tracking systems for automatic and real-time tracking of aging inventory.

 

We believe in robust tools that can optimize and streamline operations. One such feature of our propriety ERP system, OpalTrack, is the real-time capability to track aging inventory and lot codes. Whether it’s based on inventory quantity, value, remaining shelf life, or more, we ensure that our clients are well-informed on the status of their inventory levels and what’s shipping to customers.

 

Opal can assist with the sale of such products by connecting clients with salvage buyers who may purchase the products at a reduced price, depending on the remaining shelf life. Clients can also choose to sell to discount outlets or donate to organizations like Feed The Children. Ultimately, it is the client’s responsibility to set the price and find appropriate outlets for the products.

Opal performs a manual inventory reconciliation once a month for each warehouse. During the monthly reconciliation, Opal’s team reviews all of the warehouse activity, including inbounds, outbounds, and any inventory adjustments. If any discrepancies or issues are identified, they will be reviewed and addressed promptly. It’s important to note that this process is critical for maintaining inventory accuracy and ensuring that clients have an accurate understanding of their inventory levels at any given time.

Much of the inventory activity can be reflected in real time if OpalTrack is connected with the warehouse. As adjustments occur, they will be reported, and depending on the adjustment, they will be reviewed. There are many types of adjustments that can occur such as cycle counts, disposals, repacks, damages, etc. At least once a month, Opal will perform a manual inventory reconciliation of each location, and if there are inventory adjustments that need to be made that haven’t been made, Opal will notify the client and warehouse.

If product goes missing at the warehouse, the Opal Group will investigate and attempt to determine the cause of the issue. In most cases, missing inventory can be attributed to one of several possibilities, such as an incorrect shipment, disposal, failure to receive the product, or a system error. If it is determined that the warehouse is responsible for the missing inventory, Opal will review the liabilities and limitations outlined in the warehouse agreement with the warehouse to determine if compensation is warranted. Depending on the value of the product that was lost, an insurance claim can also be filed to cover the cost. Opal’s system tracks inventory levels in many different reports, which helps to minimize the occurrence of inventory discrepancies and ensures that clients have an accurate and up-to-date understanding of their inventory levels.

If you are using Amazon Vendor Central to track your inventory, then Amazon is responsible for managing it. They will use their own system to track inventory levels and provide you with regular reports, which you can access through your Amazon Vendor Central account. On the other hand, if you use Amazon Seller Central, you will need to manage your own inventory levels and track them through the Seller Central platform.

 

It’s important to note that the Opal Group is familiar with both processes and can help track inventory activity for both types of models. We can assist clients in understanding the differences between these two options and help them choose the one that best suits their needs and business model.

When choosing a warehouse location for the first time, it’s important to consider several factors. One of the most important factors is the proximity of the warehouse to your customers. If you have a clear understanding of where your customers are located, you should choose a warehouse that is close to them to minimize shipping costs and delivery times. Additionally, if your US entity is importing products, it’s essential to choose a warehouse near the correct ocean port, especially if sea freight containers are being used. This will help reduce transportation costs and transit times. However, if your customer base is not clearly defined, then choosing a distribution hub like Chicago, which is centrally located in the United States, can be a good option. This will provide easy access to all regions and help reduce shipping costs and transit times. Other factors to consider when choosing a warehouse location include the cost of the space, the availability of transportation, and the overall reliability and reputation of the warehouse provider. The Opal Group can assist with finding the best warehouse location based on these factors and your specific business needs.

When it comes to auditing and physically counting inventory at a warehouse, there are many factors to consider, including who will conduct the audit and what type of audit will be performed. However, as a general rule, a physical count of inventory should be done at least once a year. Depending on the warehouse agreement, the warehouse may conduct the count themselves, and they will typically follow the agreed-upon terms. It’s important for clients to communicate their specific needs and requirements for inventory audits with their warehouse provider to ensure they are meeting their expectations.

 

It’s important to note that routine cycle counts may also occur at the warehouse, which are regular checks of inventory levels to ensure accuracy and prevent discrepancies. These counts can happen on a daily, weekly, or monthly basis and are typically conducted by the warehouse staff. However, these routine counts should not be confused with the larger-scale annual physical inventory audit, which is more comprehensive and involves a complete count of all inventory items.

When it comes to determining the right amount of inventory to hold, there are several factors to consider, including the industry, product type, and business model. While having too much inventory can lead to increased storage costs and decreased cash flow, not having enough inventory can result in stockouts and missed sales opportunities. Businesses should strive to find the right balance between having enough inventory to meet demand while minimizing excess inventory.

 

To help determine the appropriate level of inventory, businesses can use inventory turnover ratios to understand how quickly they are selling inventory and make informed decisions about how much to order. It’s also important to consider the aging of inventory, particularly for perishable goods like food products. If inventory is not moving quickly enough and approaching its expiration date, it may be considered too much inventory.

 

In addition, businesses should take into account the time it takes for their product to be produced and imported, especially if the production facility is overseas. It’s important to factor in the overall purchasing lead-time when balancing inventory levels to ensure sufficient inventory levels are maintained to meet customer demand.

No, it is not recommended to store finished food products inventory in a warehouse that is not food-grade certified. Food grade certification ensures that the warehouse meets specific standards for cleanliness, temperature control, pest control, and other factors that are critical for food safety. Storing food products in a non-food grade warehouse can increase the risk of contamination, spoilage, or other hazards, which could potentially harm consumers and damage your reputation as a business. It is important to ensure that the warehouse where you store your finished goods food products is properly certified and follows all relevant food safety regulations.

 

The Opal Group has a strong network of warehouse suppliers that are food grade certified.

Yes. Opal has expertise in managing CHEP pallet inventory accounts as well as other pallet programs. We currently manage CHEP accounts for clients who sell to retailers such as Costco and Sam’s Club, which require pallet programs. However, it is important to note that this type of activity and program is time-intensive to track the ownership transfers of pallets. Therefore, Opal will need to charge an additional fee on top of the regular services to handle this type of program.

Opal can assist in forecasting inventory needs and determining reorder points. The supply chain team will analyze the current inventory, order activity, and sales forecast to determine the ideal reorder points. Opal’s supply chain team typically manages the production forecasting process and works with the sales team to ensure the sales forecast is up-to-date on a monthly basis for production planning purposes. If the production is overseas, Opal will coordinate with the parent entity, manufacturing facility, or foreign supplier for ocean freight and air freight planning.

Opal has a comprehensive process to handle inventory discrepancies that may arise during the receiving, storage, and shipping process. The company reviews and reconciles all discrepancies using various accounting and supply chain procedures depending on the type and size of the discrepancy. If the discrepancy is related to an error in receiving or shipping, Opal will work to reconcile the issue with the warehouse, carrier, or party who placed the order to ensure accurate inventory levels are maintained.

Yes, with OpalTrack. The Opal Group provides clients with real-time inventory visibility and reporting. Our clients have access to a variety of sales, inventory, and freight reports to track their inventory and orders. They can access their own portal and customize their dashboard with their favorite reports for quick access. With over fifty reports available, clients can choose the reports that are most relevant and important to them.

When inventory levels fall below a certain threshold, Opal follows specific procedures to bring them back up to a standard level. The standard level typically ranges from 1 to 3 months worth of inventory, but it varies. If there are delays in production or receiving, the supply chain department will work with the appropriate parties to reconcile the issue. In cases where there are discrepancies in sales forecasts, Opal collaborates with the sales team to improve forecast accuracy. Furthermore, Opal’s system will notify the Order Fulfillment department when inventory levels are low.

Yes, Opal has worked with over three hundred production facilities and warehouses in just the last few years. Most of Opal’s clients have numerous warehouse locations (west coast, east coast, central midwest, etc.). Opal’s systems can handle any quantity of warehouses, distribution centers, and production facilities.

Warehousing, Freight and Distribution

Opal has a process to evaluate new or alternative warehouses for clients who are seeking to find a new warehouse in the US. Opal uses a comprehensive warehouse questionnaire and checklist that covers various categories such as warehouse overview, clients, inbounds, inventory and storage, order processing, shipping, inspections, certifications, registrations, food safety, recall management, technology, and special services.

 

With a broad network of relationships spanning across numerous warehouses, distribution centers, and production facilities, Opal’s experience in the industry is substantial. Having worked with hundreds of such entities in recent years, Opal’s connections and working relationships can greatly benefit new clients. Opal’s ability to leverage their experience and understand their clients’ needs helps them to provide guidance and recommendations that clients can trust, ensuring that they are being pointed in the right direction.

 

Lastly, because Opal is a back-office service provider only, strategic decisions should be made by the client. Warehouse studies should be performed by the client. The Opal Group will support the process.

Opal does not own any warehouses of its own. Instead, Opal works with numerous third-party warehouses throughout the United States. The choice of warehouse depends on several factors such as the client’s specific needs, the type of product, the type of customer, customer ship-to locations and the desired ship-from location. By working with a variety of warehouses, Opal can provide clients with a tailored solution that meets their unique requirements. This flexibility allows clients to have greater control over their logistics operations and can help to optimize their supply chain as the business grows.

To manage the transportation of products from the warehouse to customers, Opal leverages a variety of freight companies, third-party logistics providers, and freight brokers. These partners allow Opal to provide clients with a range of shipping options that can meet their specific requirements in terms of cost, speed, quality control and reliability. With this approach, Opal can help clients to optimize their transportation operations and ensure that their products are delivered to customers efficiently and on time no matter what region of the US the trucks are delivering to.

Although The Opal Group does not import its own products, it provides import handling services to clients. The company collaborates with reliable freight forwarding and customs brokerage partners to manage imports by ocean, air, or truckload freight. Opal works with clients to ensure a smooth and efficient import process and verifies that they comply with the FSMA Foreign Supplier Verification Program’s best practices for food safety.

The Opal Group brings together a team of highly skilled supply chain professionals, although it is important to note that Opal itself is not a customs brokerage and does not possess certified customs brokers within its organization. However, we have established strong partnerships and collaborate with third-party customs brokers on a regular basis to provide comprehensive import and export services for our clients in the United States.

 

When selecting customs brokers to work with, Opal prioritizes certain criteria to ensure quality service and seamless operations. These criteria include:

 

  1. Ability to handle various aspects of the supply chain – Opal seeks customs brokers that can efficiently manage container pickup, freight forwarding, customs clearance, and in-land delivery, ensuring a smooth flow of goods throughout the entire process.
  2. Record keeping and paperwork tracking – Effective customs brokers possess robust systems for record keeping and tracking paperwork, ensuring compliance with regulations and simplifying client documentation.
  3. Cost effectiveness and affordability: Opal considers the cost-effectiveness and affordability of customs brokerage services, aiming to provide clients with competitive pricing while maintaining the highest standards of quality and efficiency.
  4. Communication: Seamless communication is very important in the customs brokerage process. Opal looks for customs brokers who prioritize clear and timely communication to keep clients informed about the status of their shipments and address any concerns or inquiries promptly.

 

By collaborating with trusted third-party customs brokers who meet these criteria, Opal is able to provide clients with the support they need for successful import and export operations.

The rise of e-commerce has led to an increase in D2C fulfillment centers (AKA e-commerce fulfillment centers) as more businesses are choosing to sell their products directly to consumers online. In D2C fulfillment, the products are shipped directly from the fulfillment center to the end customers, bypassing the traditional retail supply chain.

 

The Opal Group oversees many e-commerce fulfillment centers across clients and is very familiar with how to manage the operations and accounting of such warehouses.

 

If sample shipments are needed, Opal will work with the necessary sales team to determine the most cost-effective solution for sending samples (shipping out of an office, out of a home, etc.).

When selecting a warehouse for your business that experiences seasonality and inventory fluctuations, it is important to communicate your sales forecast to the warehouse provider. This allows them to plan and adjust their operations based on the anticipated increases and decreases in activity. It’s important to note that seasonality should be considered when discussing the cost structure. For instance, if inventory levels decrease and processing activities slow down during certain periods, the warehouse may be inclined to raise rates or set a minimum monthly requirement. Maintaining ongoing communication with the warehouse about your sales activity is important to avoid abrupt changes in the agreement. By doing so, you can work together to ensure a smooth and mutually beneficial relationship.

 

The type of pallets suitable for your product depends on the specific product and the requirements of your customers. However, as a general guideline, it is recommended to use heat-treated, food-grade pallets that are typically sized at 40 x 48 inches. While wood pallets are commonly used, there is a growing trend towards plastic pallets due to their durability and resistance to infestation by bugs and bacteria.

 

Keep in mind that different customers may have specific pallet requirements. For instance, a retailer like Costco may insist on the use of CHEP pallets. Therefore, it is important to comply with customer requests and ensure that the product is shipped on the pallets specified by the customer.

 

Establishing and adhering to the correct pallets is not only important for customer satisfaction but also for safety reasons. It is recommended to document the required pallet specifications in your business’s Food Safety Plan to ensure compliance with relevant regulations and standards. By doing so, you can prioritize safety and maintain consistency in your palletization practices.

Regulatory and Compliance

The Food Safety Modernization Act (FSMA) was signed into law on January 4, 2011, by President Barack Obama. FSMA is the most significant reform of U.S. food safety laws in over 70 years. Its main objective is to ensure the safety of the nation’s food supply by shifting the focus from responding to foodborne illness outbreaks to preventing them.

 

The key elements are:

 

  1. Preventive Controls: FSMA emphasizes preventive measures by requiring food facilities to implement hazard analysis and risk-based preventive controls to identify and address potential hazards.
  2. Inspection and Compliance: The act grants the U.S. Food and Drug Administration (FDA) enhanced inspection and compliance authority, including the ability to conduct routine inspections of food facilities to assess their compliance with preventive control standards.
  3. Import Safety: FSMA places increased responsibility on food importers to ensure the safety of imported food products. It requires foreign suppliers to meet U.S. safety standards and mandates the development of a system to track imported food from the source to the U.S. market.
  4. Response to Contamination: The act improves the FDA’s ability to respond to food safety incidents by granting it the authority to order recalls, establish mandatory recall procedures, and implement stricter enforcement measures.

 

We at Opal are familiar with the FSMA and can assist our clients with navigating the process.

A fast-moving consumer goods company (FMCG) that imports into the US for distribution should be aware of the following key elements of the Food Safety Modernization Act (FSMA):

 

  1. Preventive Controls: FMCG companies should implement preventive controls to ensure the safety of their imported food products. This involves conducting hazard analyses, implementing risk-based preventive controls, and monitoring their effectiveness.
  2. Foreign Supplier Verification Program (FSVP): FSMA requires importers to develop and implement an FSVP to verify that their foreign suppliers meet US food safety standards. Importers must assess the hazards associated with their imported products, evaluate the foreign supplier’s performance, and ensure appropriate corrective actions are taken if needed.
  3. Third-Party Audits: FMCG companies may utilize third-party audits to assess the safety and compliance of their foreign suppliers. These audits provide an additional layer of assurance and help importers verify that their suppliers meet the necessary food safety requirements.
  4. Prior Notice of Imported Food Shipments: FSMA mandates that importers provide prior notice to the FDA for all imported food shipments. This requirement ensures that the FDA has information about the imported products before they arrive in the US, enabling better oversight and targeted inspections.
  5. Records and Documentation: FMCG companies should maintain comprehensive records and documentation related to their imported food products. This includes records of their hazard analyses, preventive controls, monitoring procedures, verification activities, and corrective actions. These records help demonstrate compliance with FSMA requirements and facilitate traceability in case of any safety issues.

 

It is important for FMCG companies to familiarize themselves with these key elements of FSMA to ensure compliance with US food safety regulations and mitigate potential risks associated with importing food products into the US market. By implementing preventive measures, conducting thorough supplier verification, and maintaining proper documentation, FMCG companies can uphold food safety standards and meet the regulatory expectations set forth by FSMA.

An FSVP plan is a comprehensive document that outlines a company’s procedures for complying with FSVP requirements under the FSMA in the US. Its purpose is to verify that foreign suppliers meet US food safety standards. The plan includes key components like product descriptions, hazard analysis, supplier evaluation, verification activities, corrective actions, record-keeping, and review. It serves as a roadmap for FMCG companies to demonstrate commitment to food safety and regulatory compliance when importing food products into the US market.

 

An FSVP plan is a legal requirement for US importers of food products. It is important to note that regulations and requirements can change over time, so it’s always recommended to consult the most up-to-date information and guidelines provided by relevant regulatory authorities, such as the US Food and Drug Administration (FDA).

The person responsible for creating the FSVP plan within a company is typically the Preventive Controls Qualified Individual (PCQI). The PCQI is an individual who has received specialized training and is knowledgeable about FSMA requirements. They play a vital role in developing and implementing the FSVP plan, conducting hazard analysis, supplier evaluations, verification activities, and ensuring overall compliance with FSVP regulations.

 

The Opal Group acts as the PCQI for its clients.

Opal employs a comprehensive approach to stay up-to-date with new regulations from regulatory bodies like the FDA, USDA, and others. In addition to leveraging the team’s collective experience and education, Opal actively collaborates with various supply chain service providers and maintains strong relationships with customs brokerage agencies.

 

Opal recognizes the dynamic nature of regulatory landscapes and understands the importance of being well-informed. By fostering relationships with supply chain service providers, Opal gains access to valuable industry insights and resources. These providers specialize in monitoring regulatory changes and updates, ensuring that Opal remains informed about new regulations that may impact their clients operations.

The FDA Data Dashboard promotes transparency by providing easy-to-understand publicly available FDA data. It allows users to explore compliance and inspection information, including clinical trials, manufacturing facilities, and enforcement actions.The FDA Data Dashboard enhances transparency and accountability, empowering users to analyze and make informed decisions based on FDA data.

 

The FDA firm and supplier database available on this site includes data associated with inspection classification, inspection citations, compliance actions, recalls, and imports.

https://datadashboard.fda.gov/ora/fd/fser.htm

In the unfortunate event that a product or packaging issue arises, a stock recovery, market withdrawal, or product recall, it is important to follow a Recall Plan established by the business that identifies these areas, at the least:

 

  • Recall procedure
  • Recall manager
  • Recall committee
  • Decision to recall
  • Notification
  • Regaining control of affected stock
  • Follow-up and effectiveness of recall
  • Testing and reviewing

 

The Opal Group can help your US entity create its recall plan and review it annually. 

 

We provide support to our clients in meeting the compliance requirements of California Proposition 65 regulations. Our team collaborates with manufacturers, testing laboratories, supply chain teams, third-party quality control auditors, sales teams and law firms to ensure that all ingredients and byproducts contained in consumer packaged goods items sold in California are identified and addressed appropriately.

California Prop 65 warning label requirements only apply to products sold in California if they contain a designated item from the hazardous list. This includes various categories such as food, drugs, cosmetics, household products, and workplace products. The warning labels must be displayed on the product or at the point of sale to comply with the regulations. Non-compliance with these requirements can lead to penalties and legal consequences.

While a certificate is not explicitly required for compliance with California Proposition 65, it is mandatory to undergo an assessment process to determine if a product contains any of the chemicals listed under Proposition 65 and to ensure that the product is labeled or otherwise appropriately warning consumers about the potential exposure to these chemicals. The Opal Group can help with this assessment process involves evaluating the product and its components for the presence of Proposition 65-listed chemicals, and if any are found, taking appropriate steps to inform consumers about the potential exposure. Failure to comply with Proposition 65 can result in significant financial penalties and other legal consequences.

The California Proposition 65 list is updated at least once a year by the California Office of Environmental Health Hazard Assessment (OEHHA). However, updates to the list may occur at any time during the year if new chemicals are added or existing chemicals are removed or reclassified.

 

The most up-to-date California Proposition 65 list can be found on the OEHHA website at https://oehha.ca.gov/proposition-65/proposition-65-list. The website also provides additional information on Proposition 65, including guidance on compliance, warning requirements, and safe harbor levels.

The bottle deposit programs, also known as bottle bills or container deposit programs, implemented in different states across the United States share some similarities in their overall objectives, but they also have some differences in terms of program details, requirements, and regulations.

 

Similarities among bottle deposit programs:

 

  1. Refundable deposit: All bottle deposit programs require a refundable deposit to be paid by consumers at the time of purchase for certain beverage containers, typically 5 cents or 10 cents per container.
  2. Redemption centers: Consumers can return empty containers to designated redemption centers to receive their deposit back.
  3. Recycling promotion: Bottle deposit programs are aimed at promoting recycling and reducing litter by incentivizing consumers to return containers for recycling rather than disposing of them as litter.
  4. Program administration: Bottle deposit programs are typically administered by state or local government agencies, which oversee program requirements, regulations, and enforcement.

 

Differences among bottle deposit programs:

 

  1. Covered beverage containers: Different states have different definitions of eligible beverage containers for their bottle deposit programs. While most programs include soda, beer, and water bottles, some programs may also include other types of beverages such as juices, teas, and sports drinks.
  2. Deposit amount: The deposit amount per container can vary among different bottle deposit programs. While 5 cents is the most common deposit amount, some states have higher deposit amounts, such as 10 cents per container.
  3. Redemption options: Bottle deposit programs may have different options for consumers to redeem their deposits, such as designated redemption centers, retailers, or reverse vending machines.
  4. Handling fees: Some bottle deposit programs may allow retailers or redemption centers to charge handling fees for processing returned containers, while others do not.
  5. Program requirements and regulations: Each bottle deposit program may have its own set of requirements and regulations for manufacturers, distributors, retailers, and consumers to follow, including registration, labeling, reporting, and record-keeping.
  6. Program coverage: Bottle deposit programs may vary in terms of their coverage, with some programs covering the entire state, while others may be limited to certain regions or localities

Some bottle deposit programs, such as those in California, Oregon, and several other U.S. states, have more comprehensive bottle deposit laws that include a wider range of beverage containers, including plastic bottles, glass bottles, and aluminum cans, as well as other containers like those for sports drinks, tea, and juice drinks. These programs often aim to promote recycling, reduce litter, and increase the recovery of a wide range of beverage containers that can have negative environmental impacts if not properly managed.

 

On the other hand, some bottle deposit programs may be limited to specific types of beverage containers, typically glass and aluminum containers, due to various reasons. These reasons may include the challenges and costs associated with handling and processing different types of containers, the existing recycling infrastructure and capabilities in a region or jurisdiction, and the historical development of the program. For example, some bottle deposit programs may have been initially established with a focus on glass and aluminum containers due to their higher recycling value and established recycling markets, while other types of containers, such as plastic bottles, may have been added later as recycling technologies and markets evolved.

In states with bottle deposit programs, manufacturers should include a separate line item for bottle deposits on their invoices when they sell directly to retailers or distributors. This practice ensures compliance with the requirements of bottle deposit programs and facilitates the collection of bottle deposits from the buyers.

 

The inclusion of a separate line item for bottle deposits on the invoice serves as a transparent and accountable way to document and track the deposit amounts. It allows manufacturers to clearly communicate the deposit charges to their customers, ensuring that the appropriate deposit fees are collected.

 

The typical practices and requirements for collecting bottle deposits can vary slightly between states with bottle deposit programs. However, some common practices include:

 

  1. Clearly indicating the deposit amount: The invoice should clearly specify the deposit amount per container or per unit, as determined by the applicable bottle deposit program.
  2. Differentiating between deposit and product costs: The separate line item for bottle deposits distinguishes the deposit charges from the actual product costs on the invoice, providing clarity for both the manufacturer and the buyer.
  3. Complying with program regulations: Manufacturers should ensure that their invoicing practices align with the specific requirements and regulations set forth by the bottle deposit program in the relevant state.
  4. Properly documenting and reporting deposits: Manufacturers may need to maintain accurate records of the bottle deposits collected, including the amount collected and the corresponding sales transactions. This documentation may be required for reporting purposes or potential audits.

Manufacturers may be eligible for exemptions or special provisions in bottle deposit programs.

 

  1. Small manufacturers exemption: In some states or jurisdictions, small manufacturers with limited sales volumes or production capacities may be exempt from certain requirements of the bottle deposit program. This could include being exempt from paying bottle deposits or being subject to reduced reporting or record-keeping obligations.

 

    1. Oregon: In Oregon, small manufacturers with annual gross sales of less than $1 million of beverage containers may be exempt from paying bottle deposits, as well as from certain reporting and record-keeping obligations.
    2. Vermont: In Vermont, small manufacturers with annual gross sales of less than $500,000 of beverage containers may be exempt from paying bottle deposits, as well as from certain reporting and record-keeping obligations.
    3. Connecticut: In Connecticut, small manufacturers with annual gross sales of less than $250,000 of beverage containers may be exempt from paying bottle deposits.
    4. Massachusetts: In Massachusetts, small manufacturers with annual gross sales of less than $24,000 of beverage containers may be exempt from paying bottle deposits.
  2. Exemption for certain types of containers: Some bottle deposit programs may exempt certain types of containers from being subject to bottle deposits. For example, containers used for milk, juice, or infant formula may be exempt from bottle deposit requirements in some states.
  3. Exemption for containers sold out of state: In some cases, manufacturers may be exempt from collecting bottle deposits on containers that are sold out of state or exported to other jurisdictions where bottle deposit programs do not exist.
  4. Exemption for refillable containers: In bottle deposit programs that differentiate between refillable and non-refillable containers, manufacturers of refillable containers may be subject to different requirements, such as lower or no bottle deposit fees, as an incentive to encourage the use of refillable containers.
  5. Provision for alternative compliance options: Some bottle deposit programs may provide manufacturers with alternative compliance options, such as participating in recycling or sustainability programs in lieu of paying bottle deposits.

 

It’s important to note that the specific requirements and thresholds for small manufacturers exemptions in bottle deposit programs can vary by state and may be subject to change.

Yes, manufacturers have the option to pass the cost of bottle deposits onto consumers or retailers, depending on the regulations and requirements of the specific bottle deposit program they are participating in, as well as the terms of their contracts with consumers or retailers.

 

In bottle deposit programs, manufacturers typically pay a fee or deposit to the program for each eligible container they produce or sell. This fee or deposit is intended to incentivize consumers to return the containers for recycling or proper disposal, and to help fund the recycling or waste management infrastructure associated with the program.

 

Manufacturers may choose to pass on the cost of these fees or deposits to consumers by incorporating them into the price of the product at the point of sale. This means that consumers would effectively pay the bottle deposit as part of the purchase price of the product, and would be eligible to receive a refund when they return the empty container for recycling or proper disposal.

 

Alternatively, manufacturers may also negotiate contracts with retailers that specify the handling of bottle deposits. For example, manufacturers may sell products to retailers without including the bottle deposit in the price, and retailers may be responsible for paying the deposit directly to the program when they purchase the products. Retailers may then choose to pass on the cost of the bottle deposit to consumers at the point of sale, or absorb the cost themselves as part of their business operations.

 

It’s important to note that the specific practices regarding the passing of bottle deposit costs onto consumers or retailers can vary by bottle deposit program, state or country, and the terms of contracts between manufacturers, retailers, and consumers. Oregon, Vermont, Connecticut, and Massachusetts have bottle deposit programs where manufacturers may have the option to pass the cost of bottle deposits onto consumers or retailers, either by incorporating the deposit into the price of the product at the point of sale or through negotiated contracts with retailers. Manufacturers should carefully review the regulations and requirements of the specific program(s) they are participating in, and consult with relevant authorities, legal professionals, or industry organizations to ensure compliance with applicable laws and regulations.

The repercussions for a manufacturer failing to participate in a bottle deposit program can vary depending on the specific state and its regulations. In general, however, failing to participate in a bottle deposit program in a state where it is required can result in potential legal and financial consequences. Some possible repercussions may include:

 

  1. Penalties and fines: Manufacturers that fail to comply with bottle deposit program requirements may face penalties and fines imposed by the relevant regulatory authorities. These penalties and fines can vary depending on the state and the severity of the non-compliance.
  2. Legal actions: Non-compliance with bottle deposit program requirements may also expose manufacturers to potential legal actions, including lawsuits and legal disputes with regulatory agencies, retailers, or other stakeholders.
  3. Loss of business opportunities: Manufacturers that do not participate in bottle deposit programs may face consequences in the form of lost business opportunities. Retailers or distributors in states with bottle deposit programs may prefer to work with manufacturers that are compliant with the program’s requirements to avoid potential legal or financial risks associated with non-compliance.
  4. Damage to reputation: Failing to participate in a bottle deposit program may also result in negative publicity and damage to a manufacturer’s reputation, as it may be seen as non-compliant with environmental or sustainability initiatives.

 

It’s important for manufacturers to understand and comply with the specific requirements of bottle deposit programs in the states where they operate to avoid potential repercussions.

Marketing, Advertising and Promotion

No. Clients are required to purchase this type of data directly from these information services. However, Opal stands ready to guide clients through this process. Once the data is purchased, Opal can also assist in integrating this valuable information into the client’s business strategies, ensuring optimal utilization for informed decision-making.

Retailer information is accessible online for stores like Walmart, Target, and Whole Foods. These stores offer detailed insights and analytics for effective tracking and management of product sales and inventory. Other retailers, on the other hand, extend this information through paid subscriptions, which can provide more tailored, detailed data and analytics. With the client’s user access, Opal can efficiently retrieve the client’s sales data, aiding in the customer analysis.

 

It’s important to note that OpalTrack provides data up to the customer’s ship-to address level. This ensures a precise tracking, assisting clients in monitoring sales patterns and delivery efficiencies.

Clients retain the primary responsibility for marketing their products. However, Opal is fully prepared to assist by offering valuable referrals to enhance marketing strategies. These referrals can encompass a range of services including packaging, product design and quality, social media engagement, advertising, couponing, public relations, and other related marketing activities. We support our clients by connecting them with professionals and agencies that are well-equipped to elevate their brand presence and market penetration, ensuring that their products resonate effectively with the target audience.

Opal can facilitate coupon clearing for activities of a smaller volume. However, when it comes to handling higher volumes of coupon clearing, a specialized coupon clearing house becomes a necessity. Opal can recommend appropriate and reliable clearing houses that align with the client’s specific needs and requirements, ensuring efficiency and accuracy in the coupon redemption process.

Absolutely. Opal has decades of experience planning and orchestrating client booths at trade shows. We not only ensure a seamless experience but can also extend our support in liaising with third parties to provide additional staffing resources. Our goal is to enhance the visibility and impact of our clients during these events, ensuring optimal exposure and networking opportunities.

No, Opal does not directly participate in sampling programs. Although, we facilitate and coordinate with esteemed third-party providers who specialize in executing effective sampling programs at retail environments and special events. We ensure that our clients’ products are showcased and experienced by a targeted audience to maximize impact and feedback.

Human Resources