# #257 Co-Man Due Diligence 101 with Riot Energy and Kelley Drye & Warren LLP

- Show: [The Startup CPG Podcast](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast)
- Published: 2026-07-14
- Length: 50m
- Episode: 341
- Page: https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2026-07-14-257-co-man-due-diligence-101-with-riot-energy-and-kelley-drye-warren-llp
- Listen: https://share.transistor.fm/s/91bbeb83

## Summary

Laura Jakobsen, founder of Riot Energy, and Daniella Carelli, Special Counsel at Kelley Drye & Warren LLP, discuss the critical importance of co-manufacturer due diligence and contract negotiation for CPG brands. They emphasize that a 'partnership approach' and transparent reporting on attainment, inventory, and yield loss are more valuable than low per-unit pricing. The conversation covers protecting trade secrets through fragmented ingredient sourcing, conducting effective facility walkthroughs, and the strategic advantage of brands drafting their own baseline contracts rather than redlining manufacturer templates.

## Outline

1. Introduction and Riot Energy's Growth
2. Partnership Approach vs. Price
3. Reporting Requirements and Yield Loss
4. Facility Walkthroughs and QA Culture
5. Protecting IP and Trade Secrets
6. Contract Strategy: Baseline Agreements
7. Final Advice on Due Diligence

## Topics

- [Manufacturing partners & offshoring](https://hardwarepodcasts.com/topic/manufacturing-partners)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Intellectual property](https://hardwarepodcasts.com/topic/intellectual-property)
- [Quality & yield](https://hardwarepodcasts.com/topic/quality-and-yield)

## Most relevant to

companies scaling up

## Mentioned

- Riot Energy (company)
- Kelley Drye & Warren LLP (company)
- Whole Foods (company)
- Costco (company)
- Chobani (company)
- SQF (other)
- BRC (other)

## Related episodes from other shows

- [S3 E8: Navigating and Managing Contract Manufacturers with Peter Russo](https://hardwarepodcasts.com/podcast/the-builder-circle/2026-01-27-s3-e8-navigating-and-managing-contract-manufacturers-with-peter-russo) (The Builder Circle)
- [S1 E4: Cracking the Code of Hardware Manufacturing with Scott Miller](https://hardwarepodcasts.com/podcast/the-builder-circle/2023-05-15-s1-e4-cracking-the-code-of-hardware-manufacturing-with-scott-miller) (The Builder Circle)
- [036: Helping Wildlife & Developing Ceramic Products with Gavin Christman of Green&Blue](https://hardwarepodcasts.com/podcast/product-startup/2017-01-17-036-helping-wildlife-developing-ceramic-products-with-gavin-christman-of-green-b) (Product Startup)
- [How to Select a Contract Manufacturer](https://hardwarepodcasts.com/podcast/global-medical-device-podcast/2022-02-02-how-to-select-a-contract-manufacturer) (Global Medical Device Podcast)
- [155: Identifying a Sourcing Partner for Overseas Manufacturing](https://hardwarepodcasts.com/podcast/product-startup/2022-12-21-155-identifying-a-sourcing-partner-for-overseas-manufacturing) (Product Startup)

## Citing this page

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