MOQ Strategy for Food Brands — When to Move Beyond Small Batches

MOQ (Minimum Order Quantity) is one of the biggest sticking points for food founders. Order too little, and your unit costs eat your margins. Order too much, and you risk sitting on stock that goes out of date.

At Ace Packing, we specialise in helping brands move smoothly from 5k runs (Launch Pack) into consistent 5k–100k+ production (Scale Pack). In this guide, we’ll break down how to think about MOQs, the tipping points where it makes sense to scale, and the Amazon FBA factors that can make or break your cash flow.

Why Co-Packers Set MOQs

  • Efficiency: machines like VFFS and multihead weighers are optimised for continuous runs.
  • Film + packaging materials: usually ordered in bulk, so higher runs reduce waste.
  • Labour: setup and changeovers are costly compared to longer runs.

    Smaller runs = higher cost per unit; larger runs = more efficiency.

 

Signs You’re Ready to Move Beyond 1k–5k Units

  1. Consistent sales velocity on Amazon or D2C (e.g., selling out within 30–45 days).

  2. Predictable reorders from retailers (farm shops, fine food distributors).

  3. Margins shrinking — unit costs are too high at small MOQs.

  4. Securing new listings (Amazon, hampers, corporate gifting).

 

The Cost Curve — Small vs Scale Runs

  • Launch Pack (1k–5k): Great for validation and avoiding risk. Unit costs higher.

  • Scale Pack (5k–100k+): Economies of scale kick in, carton/pallet efficiency improves, compliance paperwork is amortised.

  • Hidden costs: wasted film, extra labelling runs, freight inefficiency.

Amazon FBA & MOQ Strategy

  • Amazon penalises stockouts — lost ranking is hard to recover.
  • Too much stock = storage fees + risk of expiry.
  • Best practice:
  • 3 months of cover at current velocity.
    • Always have the next production slot pre-booked with your co-packer.
    • Rapid Repack safety net: if FBA rejects stock, quick over-labelling saves launches.

Balancing Risk vs Reward

  • Too small: you pay high per-unit costs + constant stress of reorders.
  • Too large: you tie up cash flow + risk expiry.
  • Smart brands: use sales data + MOQ modelling to scale gradually.


FAQ 

Q: Can I ask for MOQs lower than 1k?
A: Most co-packers won’t accept less than 1k because of machine setup costs. At Ace Packing, our Launch Pack starts from 1k.

Q: When is the right time to scale to 5k+?
A: Typically when your sales velocity can clear that stock in 90 days without risking expiry.

Q: Do MOQs apply to all formats?
A: Yes, but tins/tubes often require higher MOQs than pillow bags due to material sourcing.

Not sure when to scale?
Ace Packing offers Launch Pack (1k–5k) and Scale Pack (5k–100k+) options, with expert guidance on MOQ strategy, Amazon FBA prep, and retail readiness.

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