1. Kitchen to Market Tom Bruce Founder/President Central Coast Food & Beverage

2. Why is this bill important to you?
Reduced startup costs
Allows you to begin a small business from home

3. Producer Liabilities for Food Safety
Liability insurance options
Establishing a reasonable care defense

4. Calculating Product Selling Prices
Prime Cost Formula
Product Cost
Labor Cost
Packaging
Distribution
Vendor Incentives

5. When do I transition to an industrial facility?
Efficiency of production and economy of scale
Finding the right facility

6. Preparing for Future Growth
Creating and Tracking Batch Numbers
Packaging Concerns
Bar Codes
Financial Evalutions
Inventory Costs
Turnover Ratios
Cash Flow Calculations

7. Are You Ready to Grow Your Business?
The key to manufacturer health and longevity lies in the correct groundwork in early stage growth.
Are you at a turning point in your company?
Brand new company, need to get word-of-mouth, build momentum and customer base
Entry level company, need to secure shelf space in local community specialty stores
Saturated local market, need to move regional
Saturated regional market, need to move national
Received award, press, etc & can leverage to build sales
Help narrow down the type of food show that is right for you (consumer vs. trade)
Create personal show related goals that tie into your business plan; no two shows are the same

8. Develop Your Success Story
Visit the marketplace
Understand your category within the marketplace
Profile the competitors and how your product compares
Identify key potential customers – and affiliates
Build a compelling story about why your product belongs in the market

9. What Channel of Trade are You Targeting?
Manufacturer
Supermarket
Foodservice
Distributor
Specialty Food Store
Broker
Direct to Consumer
Research the industry.
There is no perfect one-size-all plan that fits the growth of all companies.
Many companies start at farmers markets, selling online, selling at local specialty stores and then moving into supermarkets.
When to add a distributor and brokers into the mix is complex.
Foodservice is a complex channel of trade but can be a very successful channel for some specialty foods

10. Do You Have Manufacturing Capacity?
Are you ready to make a deal?
Take a step back. One of the biggest mistakes you can make is accepting a deal with a buyer that you are NOT ready to fulfill properly.
Before you sign on the dotted line, make sure
Your pricing is right and margins have taken into account future growth of your company to include a distributor and broker . You can lock in a price when a young manufacturer that won’t make sense as you grow.
Your factory or co-packer can continue to support this level of production

11. Questions? Specialty Food Association 136 Madison Avenue
New York, NY 10016
Ron Tanner
Vice President, Philanthropy, Government and Industry Relations

12. Co-Packers: What to Watch For
Vetting Co-Packers
H.A.C.C.P. Programs

13. Resources Small Batch Co-Packers Paradigm Foodworks, Inc.
5875 Lakeview Blvd., #102
Lake Oswaga, OR 97035
Ph: (503) Fax: (503)
Purveyor’s Kitchen
2403 Airpark Ct.
Auburn, CA
Ph , fax , toll free

14. Resources, cont’d Bar Codes: Labels: www.buyabarcode.com
Westmark Industries
6701 McEwan Road
Lake Oswega, OR 97035
Ph: (503)
Rebecca Sawyer

15. To view this presentation, or others from the series, go to: http://www.santacruzpl.org/brownbags

16. For Free Follow-up 1-on-1 Counseling Contact:
The Santa Cruz Small Business Development Center
at Cabrillo College
(831)

17. THANK YOU to our SPONSORS Please fill out the golden evaluation form inside your packet

18. Santa Cruz County Environmental Health Division
Phil McCauley REHS
Santa Cruz County Environmental Health Division
701 Ocean Street, Room 312
(831)

19. Cottage Food Operations (CFO’s)

20. California Cottage Food Law (AB 1616)
Signed into law January 2013
Allows individuals to prepare and/or package certain non-potentially hazardous foods in private-home kitchens referred to as “cottage food operations” (CFOs)

21. Traditional permits Wholesale permits Retail permits
-Handled by the State
Processed Food Registration (PFR)
Retail permits
-Handled by County Environmental Health Division
“Permit to Operate”

22. CDPH – “The State” California Department of Public Health CFO: FAQ’s
CFO: FAQ’s
Approved foods
Labeling Guidelines

23. Santa Cruz County Environmental Health Division
CFO
Applications are available
Permits have been issued
Inspections may be conducted
scceh.com

24. CFO Class A/Class B Class A – “direct sales”
No inspection conducted
$62 initial / $32 annual
Class B – “indirect sales”
Inspection conducted
$217 annual

25. Self-Certification Checklist
Facilities/Equipment
Procedures
Illness prevention
Prevention of Contamination
Water/Waste water

26. Approved foods
Baked goods, without cream, custard, or meat fillings, such as breads, biscuits, churros, cookies, pastries, and tortillas.
Candy, such as brittle and toffee.
Chocolate-covered nonperishable foods, such as nuts and dried fruits.
Dried fruit.
Dried pasta.
Dry baking mixes.
Fruit pies, fruit empanadas, and fruit tamales.
Granola, cereals, and trail mixes.
Herb blends and dried mole paste.
Honey and sweet sorghum syrup.
Jams, jellies, preserves, and fruit butter that comply with the standard described in Part 150 of Title 21 of the Code of Federal Regulations. * See Below
Nut mixes and nut butters.

27. Approved foods Popcorn. Vinegar and mustard.
Roasted coffee and dried tea.
Waffle cones and pizelles.
Cotton candy.
Candied apples.
Confections such as salted caramel, fudge, marshmallow bars, chocolate covered marshmallow, nuts, and hard candy, or any combination thereof.
Buttercream frosting, buttercream icing, buttercream fondant, and gum paste that do not contain eggs, cream, or cream cheese.
Dried or Dehydrated vegetables.
Dried vegetarian-based soup mixes.
Vegetable and potato chips.

28. Approved Foods Ground chocolate. Seasoning salt. Flat icing.
Marshmallows that do not contain eggs.
Popcorn balls.
Dried grain mixes.
Fried or baked donuts and waffles.
Dried hot chocolate (dried powdered mixes or molded hardened cocoa pieces).
Fruit infused balsamic vinegar (containing only high-acid fruits such as apple,crabapple, nectarine, peach, plum, quince, blackberry, blueberry, cherry, cranberry, grape, huckleberry, gooseberry, loganberry, pomegranate, pineapple, raspberry, strawberry, tomatillo, youngberry, grapefruit, kumquat, lemon, lime, orange).

29. CFO Sales Limitations
$50,000 or less in gross sales annually

30. Retail Food Permit Categories
Food Vending
Food Service
Mobile Food
Temporary Food Booth
Caterer

31. Shared Kitchen
Retail permits – “County”
Wholesale permits – “State”

32. Santa Cruz County Environmental Health Division
Contact
Phil McCauley REHS
Santa Cruz County Environmental Health Division
701 Ocean Street, Room 312
(831)

33. Santa Cruz County Environmental Health
s/FoodFacilityInformation.aspx
Cottage Food Operation Registration Form
ood/Cottage%20Food%20Operation%20Registration%20- %20EHS-480.pdf