Plastic Bottling BBQ Sauce ????

[mr t 59874]

Well I am at a point where I want to sell more sauces than I do now

I don't think I have to really worry about being "legal" until I sell 10,000 bottles a year.

Smokin, you may want to check with your county officials as far as legality.  It is not the quantity of a specific product that counts , but the quality.  It only takes one bad bottle to lose everything you have worked for if you are not properly licensed, bonded and insured.  One thinks, as I that you have a product that will easily sell, but after researching the requirements to do so it may not be feasible.  There are so many things that one takes for granted such as, a company name, labels have to meet government requirement's, bar codes, nutritional facts have to be reached, state and local licenses and a approved manufacturing kitchen among other things and in my case a 2 million dollar bond along with the HACCP certificate.

I am not trying to put a damper on your project, but merely trying to make you aware of what you can look forward to.

Tom 

 

[backwoods bbq]

My sauce labels hot off the press!

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• backwoods bbq
• Jun 24, 2013

 

[smokin-aces]

Thanks for the advice Tom. I will continue to research my local regulations (TN), and see what I need to do. But the game plan for now is to continue selling like I have been to see if volume will justify the cost of the legal approach.

I like the labels Backwoods. Puts me in the mind of a certain TN Whiskey that everyone seems to love... JD.

 

[mr t 59874]

JD, my question would be, can you justify the risk vs. the reward of a small profit.

  When taking surveys of my two products for public input, I simply gave a good supply away.  If supplying a restaurant or bar, I would use their legal kitchens to make the products and then get the opinions from the customers.

It was my intention to have a commercial company can the products as they could do it at a fraction of the cost, and determine from there if resale would be profitable enough to continue and can my own product.  As there are no such companies in Montana, it would be necessary to go out of state.  With the cost of fuel and shipping expenses along with the present political environment, it is impossible for me to continue any further at this time even though all I have to do now is apply for my manufacturing license. 

Another thing to consider is the immense competition among BBQ sauces.  There are a ton of them out there.  In order to make a decent profit, you will undoubtedly have to sell in stores and they will require you to be legal.  

There are those who sell their product under the table whether it be sauces, smoked fish or cheese, but at my age I'm not one to risk everything for a few bucks.  I'd rather give my products as gifts, but that's just me.

If you intend to only bootleg to friends and family, I can only wish you good luck. 

Tom

 

[smokin-aces]

If you don't mind me asking, approximately how much have you spent in becoming legal? Just so I have a figure in my head to start cost justification.

 

[backwoods bbq]

I know in Texas the average start up cost Is $20,000.00 that's why I intend to open a BBQ restaurant or food truck later in life then if it gets big to sell the sauce after I have made a name for myself.

 

[mr t 59874]

If you don't mind me asking, approximately how much have you spent in becoming legal? Just so I have a figure in my head to start cost justification.

Know I don't mind.  Keep in mind that I live in a somewhat isolated area of the lower US.

Get ready to get nickel and dimed by everyone you meet.

The prices are off the top of my head.

Required registered and copyrighted company name and logo.   Mine, Mr.T's [emoji]174[/emoji] 

[emoji]169[/emoji]    $50.00 each.

Bar codes,  $50 each.  Most stores will not accept products these days without a bar code.  Helps with inventory and speeds up checkout.

Nutritional information.  $100. THe cost could be higher depending on what lab does it.  Will have to send a couple samples of your finished product the way you intend to sell it.

Label design - Depends on design time and state requirements as to letter height and placement.

Hazard Analysis and Critical Control Plan certificate cost me almost $1000 as I had to add motel cost and fuel to the initial cost of $400 for the four day class.

State and local license's I'm not sure of the cost at this time so won't even guess. 

You will have to deal with the local and state health inspectors along with the FDA and if selling across state lines the USDA inspectors also.  They will be wanting to see your up to the minute HACCP sheet for each batch you make.  Another few reasons to hire your canning done by a contractor.

Hope this gives you an idea of what to expect.  Any more questions, please ask.

Tom 

 

[smokin-aces]

Thank you Mr. T! So a little more than $2000 total. That seems somewhat expensive just to get started.

I was calling around for local bottling plants that can bottle, label, and perform nutritional tests on sauces, and I found one on Memphis called ICA. I came across it on a Google search that took me to a BBQ Forum..

They have a minimum batch of only 30 gallons (~240 16 oz bottles). They send the confidentiality form so I know they won't steal or sell my recipe. I mail it back after I fill it out and sign it, with the recipe and sauce I want them to make. Then they will make the sauce according to the recipe and tweak the new batch to taste like mine (since they use fresh ingredients that are stronger in flavor). After they get it as close as possible, they send a bottle of the new batch and my original back so I can taste it and tell them yay or nay. Upon my approval, they process the batch I want. Whether it is 30 gallons or 3000 gallons (or more). I was told by the lady I spoke to that she has never seen a sauce they manufacture be completed for less than $2 per bottle and never seen one go for more than $5 per bottle. And this price includes the manufacturing, bottling, and labeling of the bottles. Also, they assume all responsibility for the sauce. So if someone gets sick, they are responsible and not me. 

This keeps me from having to go through most of the things mentioned above by Mr. T. 

Also, they supposedly bottled Myron Mixon's first bottle of BBQ sauce..

 

[mr t 59874]

Sounds like the way to go with minimum expense.   It will give you a idea as to how your product will sell while relieving you from a lot of worry.

Keep us up to date on your experience.

Tom

 

[dls1]

I agree with Mr T.

The $2,000 expense is minimal and before you even start producing and bottling a meaningful amount of product. You could easily double or triple that figure.

What you're looking for is known as a "Co-Packer", and in particular, one that is focused on sauces. It sounds as if that's what ICA in Memphis might be, though I've never heard of one with a minimum batch that low. One that I have a little familiarity with is Endorphin Farms, Inc. in St. Augustine, FL. They may not be the one for you, but you should check out their site, especially the FAQs, to get an idea of the process and costs. I would post the link to their site but from what I've read recently on the forum, that appears to be forbidden.

Good Luck.

 

[chef willie]

Lot of info being passed here and some is redacted (sp) or missing. I checked into this here in Oregon about 8-10 years ago. I had to contact the USDA and have the Fed come down and check my 'facility' where I was going to be doing this. Labels and such HAD to approved by the Fed, ingredients listed in a very specific way etc etc. You will be considered a manufacturer, no matter how small. The biggest PITA was I had to send actual product in containers that would be for sale to a food testing lab for bacteria tests, PH levels and whatever else they demanded. Now, that was in Portland so not to big of a hassle but it was expensive and they wanted 2-3 of each type or flavor etc especially if they had different ingredients. I did have the lab work done, I was curious about shelf life anyway. Along with others I sent them a jar I had laying around for about a year that was really just hot-packed in a Mason jar and surprisingly (to me) it tested fine. You will also need product liability insurance no matter how little you sell in case somebody claims they got sick using your sauce. I, personally, would become a LLC so if sued I wouldn't lose my house, cars, boats etc to some sue happy customer with an attorney working on percentage. You have dodged a bullet so far and many will say they have done it for years with no issues but the minute you start selling to the public you are at risk...seriously. I totally agree with the above poster to start with your County Health inspectors for guidance.....Willie

 

[s2k9k]

I don't know anything about this stuff but I agree with what Willie and others have said. All it would take is for someone to cook their pork butt wrong, put your sauce on it, get sick, blame the sauce and hire a lawyer!

 

[smokin-aces]

I agree with the two above posts. But from what I understand from the "Co-Packer", they assume all responsibility for anything could go wrong with the sauce. For instance, someone does get sick and sues, they are responsible. I will read the confidentiality contract and make sure before I commit to anything. 

They have been around for 30+ years, so I think they have it figured out. Also, I think they have a lab to determine Nutritional Facts and list ingredients. I will learn all this before I sign my life away to 30 gallons of sauce!

 

[smokin-aces]

I just like the idea of them making the sauce, bottling, and labeling it so I can be legal and legit if I sell it in local restaurants or stores. 

 

[mr t 59874]

I just like the idea of them making the sauce, bottling, and labeling it so I can be legal and legit if I sell it in local restaurants or stores. 

Now, it sounds like you are on the right track.  Get with your co-packer and find out what will be needed on your part. Hopefully you can find one nearby in order to lower your shipping and distribution cost.  Ask them for the name of a label designer who is knowledgeable with the state and federal guidelines and work on your label.

Good luck and keep us up to date, go or no go on your project.

Tom.

 

[smokin-aces]

Yeah, this seems like the most feasible approach to selling BBQ sauce publicly. 30 gallons will make approximately 240 16 oz bottles and they will run anywhere from $2-$5 a piece. So that't a total of $480-$1200. And they would be able to make as many as I want them to once we determine an acceptable flavor. 

Currently I am waiting on the confidentiality form to come in the mail. Then I will send that back with my recipe and a sample of my sauce. Then we wait until they contact me. Could be a couple weeks, could be a month. Oh, and I don't pay anything until they make the batch. The process of nailing down the flavor costs me nothing.

 

[smokin-aces]

I received the confidentiality contract in the mail the other day. I am going to let a friend of mine look at it who has more business knowledge than I do (he has an MBA and a degree in entrepreneurship). So after he looks it over and lets me know if it looks solid and safe then I will sign it and send it back with my recipe and sample of my sauce. Then they will match the sauce they make with my recipe. I will sample the finished product and upon my approval, they will make the 30 gallon batch. Then I will try to sell all the bottles to re coop my investment while hopefully growing the business. 

Hopefully everything will work out as planned. In the mean time, I bought a 36 quart deep fryer from Bass Pro today. The oil bucket has a spout so I had the idea of using it to make more sauce and can it. Has anyone ever done this before?

 

[mr t 59874]

I received the confidentiality contract in the mail the other day. I am going to let a friend of mine look at it who has more business knowledge than I do (he has an MBA and a degree in entrepreneurship). So after he looks it over and lets me know if it looks solid and safe then I will sign it and send it back with my recipe and sample of my sauce. Then they will match the sauce they make with my recipe. I will sample the finished product and upon my approval, they will make the 30 gallon batch. Then I will try to sell all the bottles to re coop my investment while hopefully growing the business. 

Sounds like you are on a roll.

Hopefully everything will work out as planned. In the mean time, I bought a 36 quart deep fryer from Bass Pro today. The oil bucket has a spout so I had the idea of using it to make more sauce and can it. Has anyone ever done this before?

Before you buy a lot of equipment other than for personal use, have you checked with anyone on the requirements of a manufacturing kitchen as they are much more stringent than a restaurant kitchen? It will have to be inspected and approved by both local and federal inspectors. 

You can also see if there is a co-op manufacturing kitchen in your area.  They will be licensed and have all the equipment needed to manufacture your product from beginning to the end.  Your local health department would have any knowledge of one in your area.  You will still most likely have to be licensed and bonded.  The closest one to me is over a two hour drive and they required a $2 million bond, yours may be different.  

Tom  

 

[frosty]

Wow, the complexities of sellin a little ole' bottle of sauce!

Good luck with it!

Happy Independence day!!!

 

[rdknb]

Also get the proper trademarks and copyrights so someone else can't steal your ideas.