Vonco Products: Risk-Free Turnkey Contract Manufacturer - Medical Fluid Bags, Devices, Covers, Assembly | Spouted Stand Up Pouches
- KLS
- 6 hours ago
- 7 min read
For the 210th feature of our "Together Talks" campaign, we collaborated with Vonco Products and President, Keith Smith. Vonco Products provides the technology, creativity, experience, and innovation needed to take your medical device, fluid bags, and flexible packaging ideas from concept to commercialization - as quickly as possible.
"Together Talks" feature # 210: Vonco Products presented by KLS - Your Trusted Shipping Solutions In The USA
How did you balance the pivot the company made? What aspect of entrepreneurship do you appreciate the most? Share a decision that you made that was detrimental? What is your why?
Story of how it was created?
Vonco was founded in 1955 by a family called Von Stoser, that’s where the name “Vonco” came from. The original founder began by making equipment to sell, so it started as an original equipment manufacturer producing heat-sealing equipment to weld plastic together. It was a family business that started out of a garage and slowly moved into a small 10,000-square-foot facility in Lake Villa, Illinois. Later, the founder’s son-in-law, Larry Lasky, joined the business and he’s who I bought the company from in 2013.
Larry decided that instead of selling the equipment, which came with inconsistent, “feast and famine” sales, they would respond to customer requests to make the products using that same equipment. That’s when they moved into the consumable portion of the business. They began producing promotional products and even had accounts with McDonald’s, making bibs for Happy Meals and similar items. A lot of their work involved welding, shaping, and sealing flexible plastics. By the time I encountered them, Vonco had become a successful family business serving many industries; food, medical, promotional, and industrial, operating primarily as a job shop.
What stood out to me were a few things they did especially well. They used unsupported single films, which in 2012 was forward-thinking. Sustainability wasn’t as prominent a topic then. They were ahead of the curve. They also made shapes. Most of the flexible packaging industry focuses on rectangles, rolls of material folded and cut into rectangles or squares. But Vonco had a unique die-making capability that allowed them to produce circles, ovals, funnels, and other complex shapes at relatively low entry costs and with strong production efficiency. Their greatest core competency, which we still rely on today, was their ability to contain fluids.
Think of a flexible fluid package like a water balloon, it can burst. Vonco had mastered creating material and welding combinations that securely held fluids without leaks. That really intrigued me. My background was in food packaging for about 20 years at that point, so I initially thought of taking that technology into the food industry, which I knew well. We began marketing heavily toward that space, but along the way, medical device companies started reaching out. It became increasingly clear that our value proposition resonated better with medical device companies.
We already had great products managing fluids in and out of the body, so since around 2016, we’ve really leaned into that market. Today, roughly 60% of our business is single-use fluid bags, 20% is medical device packaging, and 20% is consumer flexible packaging, typically in the health and hygiene aisles of supermarkets: mouthwash, soaps, floor cleaners, and similar products. Those are often sold in rigid packaging, but we’re helping brands transition into flexible formats, refill pouches, for instance, which save significant plastic and natural resources over time.
What separates you from your competition?
There are multiple differentiators.
First, when it comes to medical device companies, we’re highly customer-centric. Across both our segments, medical device and consumer. We focus on a small group of customers we aim to be infinitely important to. We study what they’re doing and find ways to expand horizontally across their product needs. Over the past three to four years, we’ve been on an acquisition streak to provide more capabilities and integrate those into the overall Vonco bundle. We’re one of the very few companies that can supply both the medical device and its packaging.
In the medical device space, it’s no secret, it’s difficult. Each approved supplier comes with high costs for audits, maintenance, ERP management, and contracts. If we can do more for our customers, they can consolidate those burdens under one supplier. That’s where we continue to add value by bundling multiple capabilities under one roof. Very few companies are willing or able to operate on both the device and packaging sides — and that’s a major differentiator for us.
The second area is cost optimization. Everyone is trying to reduce costs. While being the lowest-cost supplier can work, there’s only one true low-cost provider in every category. Most customers don’t want a single supplier, that eliminates pricing leverage and flexibility.
Our approach focuses on redesigning aging specifications to improve performance and reduce cost. It’s challenging, because in regulated industries, every change must be validated, but meaningful savings come from re-engineering, not just trimming fractions of a cent.
We leverage our supplier network and in-house expertise to modernize these specifications and deliver genuine cost savings. Finally, our design team supports customers through new product introductions. We can either handle the entire design process or collaborate side-by-side with their teams. Overall, we have the capability to support virtually any flexible plastic medical device need.
What have been the biggest challenges?
Challenges are constant.
Initially, one of the biggest hurdles was deciding where to focus. We began as a job shop and needed a clear strategic direction. Transitioning from a job shop mentality to a premier medical device company was a major transformation. We had to build a new facility, invest in new equipment, hire people with medical device expertise, obtain certifications, and construct cleanrooms.
It was a heavy lift, years of reinvestment, acquisitions, and cultural change. But it paid off. Looking back now, it may seem straightforward, but considering where we started, the journey has been tremendous.
How did you balance the pivot the company made?
It became apparent through inbound customer requests that our value proposition resonated more with the medical device industry. Customers were finding us, without any marketing spend in that direction. That validated my hypothesis that we were a natural fit. I hired consultants to test that theory, and they confirmed it: our welding and material expertise aligned perfectly with fluid management applications.
In consumer products, flexible packaging usually involves dry goods. But in a hospital setting, IV bags, dialysis bags, it’s all fluids. It was a much better fit. We saw inbound opportunities from medical companies simply discovering our capabilities. Once we realized our strengths in containing fluids, the transition made perfect sense.
Culturally, though, it was a big shift. Our teams had been opportunistic, chasing various projects, so we had to become more selective and strategic. We shut down our promotional division to focus on our new direction. We also built a new facility that represented the clean, organized flow of a medical device operation. It was a lot of change, but ultimately, our confidence grew as customer demand validated the move.
What aspect of entrepreneurship do you appreciate the most?
I appreciate all parts of the business.
I came up through operations, so I’ve always been passionate about continuous improvement and operational excellence. More recently, I took on running the sales team for a few years. With so many new concepts entering the company, I wanted us to focus less on product knowledge and more on understanding customer needs.
Our goal was to develop our engineering team to handle technical depth while teaching sales to follow a disciplined process. Instead we wanted to ask the right questions, uncover unmet needs, and facilitate problem-solving. Watching our sales team grow, shift from “selling” to “solving,” and succeed through process and discipline has been incredibly rewarding.
Share a decision that you made that was detrimental?
I don’t view mistakes as failures, they’re lessons. But one particularly tough experience stands out. We went all in on a major medical device project, investing heavily in development for a large customer. This happened during COVID, and as conditions fluctuated, the project was eventually canceled. Because we had placed such a big bet on it, our pipeline suffered. We’d even expanded and bought new equipment for the project. Recovering from that was very difficult. During COVID, we’d actually grown, thanks to specimen transport products. But post-COVID, demand plummeted, everyone had overordered, and the market was saturated. That cancellation hit hard. I call it our “phoenix moment.” We had to rebuild slowly, diversify our portfolio, and never again rely too heavily on a single project.
What is your why?
Caring more. That’s my number one core value.
Caring more for each other here allows us to pour more into our customers, who in turn do great things for patients and consumers. Caring means being curious about employees, customers, and their goals, and continually finding ways to invest in their success.
The business is a platform for that.
We aim to help our employees achieve their dreams, and by extension, help our customers achieve theirs.
Do you have a moment that brings you the most joy?
One of my greatest joys is innovation.
At Vonco, we often take on what we call “white space projects”, initiatives that help our customers reach places they might not have envisioned. For example, we developed an enteral feeding product called EnteraLoc that’s much easier to use than current systems. Traditionally, tube feeders rely on pump systems or manually pour nutrition from cartons into syringes, an open, unsterile process.
We created a pouch system with a direct connector to the feeding tube, essentially a “baby food pouch” for tube feeders. It’s simpler, cleaner, and more user-friendly. Seeing EnteraLoc patented and now gaining traction in the market has been incredibly fulfilling.
How to approach being an entrepreneur?
I often talk about entrepreneurial energy.
To care deeply for others; employees, customers, partners, you must first manage your own energy. You have to fill your own cup before you can pour into others.
That means being intentional about rest, growth, and balance so you can show up fully every day. Entrepreneurship is a rocky road, and maintaining steady energy is key to navigating it and emerging stronger.
Piece of Advice
I meet two types of entrepreneurs: those who hesitate to leap and those who leap without managing their energy.
For the timid ones, if you’re only giving part of yourself, you’ll only get part of the results you want. Believe in yourself, invest fully, and take that leap.
For the bold ones, don’t underestimate how much energy entrepreneurship demands.
Manage your energy, be persistent and tenacious, and when you feel like giving up, that’s often when you’re closest to a breakthrough.
Community Callout
Arthur Magoulianiti and Tim Matthews from The Powerful Man
In Closing
KLS wants to thank Vonco Products and President, Keith Smith, for today's "Together Talks" feature. Follow along for their journey with their social handles below!