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Colorado

The “Colorado Cottage Foods Act” began in 2012 and was amended in 2013. In 2015, one amendment (SB 15-085) increased the sales limit from $5,000 to $10,000 per product, and another amendment (HB 15-1102) added more allowed foods, including pickled items. However, before pickled items could be sold, the health department needed to create additional rules, which never happened despite holding many meetings on the topic.

In 2016, a new amendment (SB 16-058) will add all non-PHF foods to the approved list, including pickled items, and it will eliminate the need for the health department to create additional rules. It will also clarify that interstate sales are not allowed. The new amendment will go into effect on August 4, 2016.

The current law restricts producers to direct sales only, but no license or permit from the health department is required. However, producers must take a training course before they can start selling.

One thing that differentiates Colorado from other states is that rather than limiting overall sales per year, they limit the sales of each product. This allows producers to sell an unlimited amount of food, as long as they keep creating different products.

Selling

Allowed Foods

Prohibited Foods

Here’s the official list of allowed foods. Jalapenos jellies/preserves, pumpkin butter, and jams/jellies with low sugar are likely not allowed. Whole eggs may only be sold under certain conditions, including a 250 dozen per-month limit.

When the new amendment becomes effective on August 4, 2016, all non-PHF foods will be allowed, including pickled fruits and vegetables.

Only "non-potentially hazardous" foods are allowed, but certain non-PHFs may not be allowed. Most foods that don't need to be refrigerated (foods without meat, cheese, etc.) are considered non-potentially hazardous. Learn more

Limitations

Limitations
Sales are limited to $10,000 per product
Although the producer can make no more than $10,000 of net revenue per year from a product, product variants are considered different products. For instance, strawberry jelly and grape jelly are two different products.

Business

Food Handler Course

You must take a food handler training course, which can be taken online for $10 – $15 at statefoodsafety.com.

If you would prefer to take a course in-person, the CSU Extension’s Food Safety Works program offers classes around the state which usually cost between $5 and $30. You can contact your local health department to learn about the upcoming courses in your area.

Sales Tax

You are not required to collect state sales tax, but you may be required to collect local sales taxes. To see if this could apply to you, check out this page and click on “View Sales Rates and Taxes”, then click on “View Local Sales Tax Rates”. Even if your county does require sales tax, you may still get an exemption because you’re selling food that won’t be consumed on your premises. But you need to check with your city and/or county about that.

Labeling

Sample Label

Chocolate Chip Cookies

"This product was produced in a home kitchen that is not subject to state licensure or inspection and that may also process common food allergens such as tree nuts, peanuts, eggs, soy, wheat, milk, fish, and crustacean shellfish. This product is not intended for resale."


Forrager Cookie Company

123 Chewy Way, Cookietown, CO 73531


Phone: (123) 456-7890


Ingredients: enriched flour (wheat flour, malted barley flour, niacin, iron, thiamin mononitrate, riboflavin, folic acid), butter (cream, salt), semi-sweet chocolate (sugar, chocolate, cocoa butter, milkfat, soy lecithin, natural flavors), brown sugar, granulated sugar, eggs, vanilla extract (vanilla bean extract, alcohol, sugar), baking soda, salt (salt, calcium silicate)


Produced on 5/24/2016


In addition to the labeling requirements, a sign must be displayed at the point of sale with this statement: “This product was produced in a home kitchen that is not subject to state licensure or inspection. This product is not intended for resale.”

Alternatively, an email address can be substituted for a phone number on the label.

The address on the label should be the location where the product was made.

Workplace

Beyond your home kitchen, you can also make your products at other private, public, or commercial kitchens.

Resources

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Comments

Hello,
I was wondering what the specs were on selling cheese. I use fresh, raw cow’s milk. I’d like to be able to sell at local farmer’s markets. Any info would be greatly appreciated.
Thank you!

On the CO farm to market website in FAQ section it states dehydrate fruits and vegetables are allowed and freeze dried fruits and vegetables are not. Why is this? Freeze dried fruits and vegetables have no water content what so ever.

    Usually in cases like this, it doesn’t relate to the risk of the final product, but rather the risk of processing it. Freeze-drying typically requires special equipment and specific time and temperature controls in order to achieve the desired effect, so I can see why they wouldn’t allow it. But I’d still recommend that you call the health dept and confirm that freeze-dried foods are not allowed under this law.

hi,

i want to start cakes business from home, i would like to make cakes and seel them from home, basically i will make cakes when i will ger orders. do i need any license for this? if yes then do you have any link about its details? if no then what other steps i need to follow to for this business? Also how much i determine cake products? like chocolatr cake is 1 product and vanilla cake is another product?

appreciate your help.

thanks

    You don’t need a license from the health dept, but there may be other requirements: http://forrager.com/faq/#starting

    I don’t know exactly how product variations can be classified, but I assume that vanilla and chocolate cake would be two different products. You can contact the health dept about how they define the sales limit.

I was wondering if I can sell Nut Butters like Almond Butter. And what I would need to do that online or at a Farmers Market.

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