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RE:IBCQuote

The business · 5 min read

Why we turned down a 2,000-unit order

Nina CaldwellTrading desk

The specification was food grade, the quantity was real and the buyer was serious. We said no, and I would make the same call again.

Short answer

A buyer wanted 2,000 food-grade 275-gallon totes inside six weeks. Documented food-contact used stock at that volume did not exist in our network, and the only way to fill the order would have been to supply reconditioned industrial units with an optimistic description. We quoted rebottled units at a higher price instead and lost the order. That is the correct outcome.
  • Food-grade supply is bounded by affidavits, not by demand
  • Reconditioned industrial cannot be described as food grade
  • We offered the honest alternative and lost on price
  • A grade claim you cannot evidence is a liability transfer

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This is the order I get asked about most inside the building, so I am writing it down. The numbers are real; the customer is not named.

The request

A beverage co-packer expanding a line needed 2,000 food-grade 275-gallon composite totes delivered across six weeks to two sites. Budget was adequate, payment terms were fine, and the buyer knew what they were asking for. It was, on paper, the best enquiry that had crossed my desk that quarter.

It was also roughly four months of our entire food-grade throughput compressed into six weeks, which is the detail that made it impossible rather than merely difficult.

Why we could not fill it

Food grade is two conditions and both are mandatory: a bottle in resin conforming to FDA 21 CFR 177.1520, and a documented history of food-contact use only. The resin is rarely the constraint. The documentation always is.

Every food-grade unit we sell carries a prior-contents affidavit collected from the original filler. That affidavit is a piece of paper somebody at another company has to sign, and the rate at which those get signed is completely independent of how many containers anyone wants to buy.

Across our yard and all 38 partner yards, documented food-contact stock in a six-week window came to roughly 340 units. Not 2,000. Not close.

Food-grade supply is bounded by how many fillers will sign an affidavit, not by how many clean containers exist.

The easy wrong answer

There was an obvious way to fill this order, and it is the way a certain kind of supplier fills it.

We had well over 2,000 reconditioned industrial units available. They are washed, tested, documented and genuinely clean. Many of them have bottles moulded from resin that is itself FDA-compliant, because most IBC bottles are. A supplier who wanted this order could ship those units, describe them as "food safe" or "suitable for food contact" — note the careful absence of the word grade — and let the buyer discover the distinction during their first audit.

The liability for that discovery sits entirely with the buyer, which is precisely why the language is constructed the way it is. "Food safe" has no regulatory definition. "Food grade", in this trade, has a specific one that everybody in it understands.

What we actually quoted

We offered 340 documented food-grade units at the normal band, and the remaining 1,660 as rebottled — a new bottle in virgin food resin fitted into a reclaimed, shot-blasted cage, with the resin certificate retained against each serial.

What the two routes cost the buyer
RoutePer unit2,000 unitsEvidence supplied
Documented food grade (available: 340)$185 – $340—Prior-contents affidavit
Rebottled, food resin$210 – $365~$575,000Virgin resin certificate per serial
New food-grade composite$390 – $540~$930,000Manufacturer certificate
Reconditioned industrial described loosely$120 – $225~$345,000None that survives an audit

What the two routes cost the buyer

We lost on price to a supplier quoting roughly the fourth line. I do not know what paperwork went with those containers and it is not my business, but I know what paperwork can exist, and it is not an affidavit.

Why the rebottled option is the honest one

Rebottling exists for exactly this situation. The bottle is new, moulded from virgin food-grade resin, and the certificate travels with the serial. The cage and base are reclaimed, which keeps 44 kg of galvanised steel per unit out of a furnace.

It costs more than a reconditioned industrial unit because it genuinely is more — there is a new bottle in it. It costs substantially less than new because there is no new steel in it. And it produces evidence a food-safety auditor will accept, which is the entire point.

The environmental arithmetic is also better than it looks. A rebottled unit avoids about 64 kg CO₂e against new; across 1,660 units that is 106 tonnes. Less than reconditioned would have saved, and a great deal more than new.

What the buyer could have done differently

This is the useful part, because the buyer did nothing wrong and still ended up in a bad position.

  1. Ask earlier. Six weeks is a sprint for 2,000 documented units. Six months is comfortable, because affidavit flow is steady rather than scarce — it is only scarce against a deadline.
  2. Split the grade deliberately. Taking the 340 documented units plus rebottled for the balance is a stronger audit position than 2,000 units of one uncertain grade, and it was available.
  3. Ask their own fillers for affidavits. A beverage co-packer generates food-grade empties. Those are worth roughly double documented, and the document costs ten minutes.
  4. Make the evidence requirement explicit in the RFQ. "Food grade" invites interpretation. "Prior-contents affidavit from the original filler, retained per serial" does not.

The part that still bothers me

Not losing the order. What bothers me is that the buyer did everything right by the standards of their own process. They specified correctly, they asked for the right grade, they had the budget. The market punished them for it by offering a cheaper option that was not the thing they asked for, described in language carefully built to not quite be a lie.

The only defence is the four questions on our food grade vs industrial page. Ask for the affidavit. Ask which wash chemistry. Ask whether the food line is physically separate. Ask to smell the inside. A supplier who cannot answer all four has not got a food-grade container, whatever the invoice says.

Written by

NC

Nina Caldwell

Trading desk

Prices grades and landed freight. Measured on used-first sourcing and repeat business, not on margin per unit.

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