Cottage Food Act Resources

• Food item meets eligible food guidelines
• The premise of the Cottage Food Act is that specific food items have a low, if no opportunity for a food borne illness (non-potentially hazardous is the technical term)
• These items are:
  • Baked Goods with a low moisture content (think scones, bread and galettes)
  • Pickled fruits or vegetables with a ph of 4.6 or lower (testing is available)
  • Canned, dehydrated or freeze-dried fruits and vegetables (some exceptions)
  • Jams, jellies and preserves (no fresh peppers allowed)
  • Spices and baking mixes
  • Honey
  • Eggs
• Items not allowed
  • Baked goods with raw butter (ie buttercream frosting unless you use an approved recipe), cream cheese or cheese of any kind (cooked or raw) or meats.
    • No cheesecake, custards, flans, puddings or other dairy-based baked goods
    • The issue is moisture.  Baked goods that are very moist may need to be tested and approved by the State of Colorado Department of Public Health & Environment
  • Salsas and sauces of any kind
  • Meats
  • Raw flour (ie edible cookie dough)
• Products must be pre-packaged in your kitchen and bear the correct labelling

• Pickled or fermented foods must be below a ph of 4.6
• Food is tested is required for pickled products
• Learn more: Ph testing

• Owner must meet the Food Safety requirement by obtaining a Food Handler’s License
• The state extension offices hold sessions monthly around the state that provide opportunities to ask questions (highly recommend if you are new to a food business)
• Online courses and exams are also available
• You must bring your certificate with you farmers markets

Depending on your city you may need to get a home occupation license. This in essence becomes your business license

• Fort Collins link

• Your product needs to bear the Cottage Food Act statement and meet other label guidelines
• Printable resources here
• If you need help with logo design or label creation, we can help!

Cottage Food Act does not regulate your packaging, however, new and clean packaging is required.

The more you buy, the more you save and bring your COGS down, but it is an up front investment. Wholesale packaging options to look into:

• Papermart is great for bakery boxes and other food packaging for the smaller business not purchasing in large quantities.
• Imperial Packaging – Steve Maxson: [email protected]
  • Glass bottles and jars
  • Option to pick up in Denver to save money on shipping – mention that you found him through Sari at Cultivate
• TriCor Braun
  • Carlos: [email protected]
  • Flexible packaging (ie standup bags and pouches, glass and plastic jars)
  • Also located in Denver for local pick-up to avoid shipping fees
• PBFY Flexible Packaging
  • Nice online source – can see all your options and prices

Food labels options (must include the information required for Cottage Food including the disclaimer statement)

• A printed card that is attached to the product with a twist tie, staple or ribbon
• Avery labels affixed to the product
• Professional printed labels – we recommend Leapin Lizard Labels
  • Please mention that you found them through Cultivate – Cody is great to work with

• Form an LLC to protect your personal assets
  • Be sure to complete an operating agreement even if you are a single member LLC.  This goes into your files and helps show the differentiation between you and your business if there is ever an issue.
• Obtain your EIN number
• Open a business banking account at your local bank (bring copies of your EIN and State of CO business filing)
  • Going forward, use this account to make all of your business purchases

• Product Liability Insurance with $1M in protection
  • FLIP– specifically for food businesses starting at $299/year
  • Other insurance options to look into are Hartford, Allstate, State Farm, National and Liberty
• It is not recommended to go through the same insurance company you have your house with as having a home-based business may increase your premiums

As a Cottage Food producer, you are able to sell your product through online, e-commerce channels

• Limited to sales within the state of Colorado
• You will be responsible for charging and remitting sales tax
• We recommend Shopify as it is built for commerce (starts at $29/mo with shipping discounts and easy to build your site), e
• WordPress/WooCommerce, Wix, Squarespace all have e-commerce platforms as well. We do NOT recommend GoDaddy
• You will want a strategy for shipping and how you will charge for this

• Purchasing a website domain name (for future use)
  • Don’t wait to purchase if you file an LLC as it may be purchased by “fishers” in the meantime
• Hover or Google Domains
• Set up a business email
  • can be the businessname@gmail or if you create a website add an email name@businessname
• Start a Facebook and Instagram business page if you are comfortable with social media
  • Facebook is great for events, photos and tagging other businesses to help promote each other
  • Facebook also has a “shop” function that you can list your products
  • Instagram is a visual medium and not as much as a “sales” pitch
    • Use this platform to show off beautiful product shots and people enjoying your food

• Colorado Farm to Market
• Colorado Proud
• Northern Colorado Food Cluster
• Larimer County Small Business Development Center Free Business Consulting
• Health Department Resources