I have created a hot sauce at home and done test marketing with the food industry (restaurants, catering companies, country clubs) and they all want the sauce. My problem is getting it manufactured in industrial sizes (1/2 to 1 gallon sizes) is becoming very expensive. Does anyone have any advise as to how I can get it done cheaply or at home and what liabilities am i looking at?
#1. "RE: Hot Sauce" In response to Reply # 0 Wed Dec-17-08 05:41 AM by Mira Inc
Shami,
The best thing to do is to find legal counsel, or a business advisor that knows how to navigate through the food industry. If I'm not mistaken, the industry is regulated to a point where selling to commercial establishments will require some licensing, etc.
I would find out what your customers currently pay for hot sauce and try to determine a price point for your sauce. Work backwards from there, and calculate costs for manufacture, packaging, distribution. This will allow you to figure out if it makes sense to continue forward. The cheap way to distribute is to make it at home, scoop it into plastic containers and sell it... whether it's legal is a whole other issue.
I have done all the legal requirements and pricing and also found a distributor, the only thing is finding a bottler who will do small batches for me rather than asking for 100 cases.
I have found a bottler that I have to go see. Hope that works out.