Thriving in the Cottage Food Industry: A Guide to Selling Food from Your Home in Colorado
With an increasingly entrepreneurial spirit sweeping across the nation, a growing number of Americans are exploring grand ambitions from small beginnings — specifically, out of their own kitchens. The cottage food industry — selling food from home — is exploding. Colorado is no exception to this trend with many residents now involved in developing, packaging, and selling food from home in Colorado and beyond.
Many home cooks are particularly drawn to this sector due to factors such as low start-up costs, flexible work hours, and an opportunity to turn a culinary passion into profit. But before you start converting your kitchen into a commercial kitchen or convert your family’s treasured scone recipe into a bestseller, you need to understand the state guidelines and laws surrounding the cottage food industry.
In Colorado, the Cottage Foods Act, which came into effect in 2012, allows residents to produce, package, and sell certain types of food products from their homes without needing a food license or inspection. The regulation specifically covers non-hazardous food products, such as baked goods, jams, jellies, and more. However, this doesn’t mean anyone can open shop and begin trading freely. There are specific guidelines that must be adhered to ensure food safety and uphold consumer confidence.
First, understanding and identifying which food products are permitted is crucial. Food items that are shelf-stable at room temperature and don’t require refrigeration are allowed. This includes baked goods without cream or cream cheese fillings, candies, fruit empanadas or chocoflan, pickled fruits and vegetables, dried herbs, spices, teas, and more. It is worth noting that items like meat, dairy products, pickled meats, vegetables, and fish are not covered under the Cottage Foods Act.
Before starting your selling food from home business in Colorado, you need to undertake a food safety course that covers basic food handling, sanitation, and processing. This should be done within the previous three years of starting your business. The Colorado State University Extension offers several food safety training options that can help ensure you are adequately prepared.
Product labeling is also paramount. Labels should include the name and address of your cottage food operation, ingredients in the order of predominance by weight, possible allergens, and a clear statement indicating that the food product was produced at a home kitchen and not inspected by the state department of health or a local health department.
As a cottage food operator in Colorado, remember that there are limits on your sales. Currently, one can earn up to $10,000 per product annually. This is a cumulative total from direct and indirect sales. However, the best marketing and business strategy is to engage your local community first before expanding further, so this restriction often isn’t a hindrance.
Sales must also generally be conducted directly between the producer and the consumer. With the explosion of farmer’s markets, roadside stands, and community-supported agriculture programs, it’s easy to establish a direct-selling platform. However, the Act does allow for third-party sales for specific products.
In conclusion, the thriving cottage food industry provides an excellent opportunity for Colorado residents to launch a home-based food business. With understanding and adherence to the Colorado Cottage Foods Act, food lovers can turn their culinary passion into a flourishing income stream, all while selling food from home.
The success of any business, including those selling food from home in Colorado, depends on the quality of the products, a clear understanding of the market, and an unwavering compliance with health guidelines and other regulations. If you’re able, consider seeking advice or mentorship from established cottage food industry players.
Remember, while it’s an exciting and potentially profitable venture, it requires passion, hard work, and creative marketing. Nonetheless, with a great product and a well-executed business plan, your home-based food operation could be the next big thing in the Colorado cottage food industry.