Colorado

Cottage Food Law

The “Colorado Cottage Foods Act” began in 2012 and was amended in 2013, 2015, and 2016 (read about the history of the act). 2016’s amendment (SB 16-058) added all non-PHF foods to the approved list (including pickled items) and enabled internet sales within the state.

The current law restricts producers to direct sales only, but no license from the health department is needed. 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 ($10,000 per product/flavor). This allows producers to sell an unlimited amount of food, as long as they keep creating different products.

Selling

Allowed Venues

Events Farmers markets Home Online Roadside stands

Allowed Services

Delivery Mail order Pickup

Prohibited Venues

Restaurants Retail stores

Prohibited Services

Catering Wholesale

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.”

Interstate sales are not allowed. Your products may be sold online and shipped/delivered within Colorado.

Although your products cannot be resold, you can assign a “designated representative” to sell on your behalf.

Although your products cannot be sold through stores or restaurants, you can ask the health department about selling directly at those locations, which they may allow on a case-by-case basis.

Here is more information about selling.

Allowed Foods

Prohibited Foods

Perishable baked goods Salsas Sauces Ketchup Mustards Meat jerkies Juices Kombucha

There are probably more prohibited foods, but the ones above have been confirmed

Here is more information about eligible foods, allowed ingredients, and allowed/disallowed canned goods.

Pickled fruits and vegetables must have a finished pH level of 4.6 or below. Whole, fresh peppers cannot be used to make pepper jellies/jams/preserves, but dried spices can be used instead. The health department offers free pH testing as well as information about best practices for producing these items.

Freeze-dried produce is allowed.

Whole eggs may only be sold under certain conditions, including a 250 dozen per-month limit.

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

Direct sales only Interstate sales prohibited Sales limit

There may be more limitations, but the ones above have been confirmed

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. For more information, contact your county extension office or local health department.

CSU is also developing a comprehensive online course for those interested in learning about starting a cottage food operation. It satisfies this training requirement, but the course takes 3 weeks and costs $170.

Business License

You should contact your local city and county offices to determine if you need a business license.

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 be able to get an exemption because you’re selling food that won’t be consumed on your premises (you need to check with your city and/or county about that).

Here is more information about starting a cottage food business.

Though not required, the health department recommends getting private water systems (like wells) tested once a year.

Labeling

Label Requirements

Business address Business name Date produced Ingredients Phone number Product name Statement

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 2/29/2020

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.

If a baked good or confection contains alcohol, it is recommended to include “This product contains alcohol” on the label.

Here is more information about packaging and labeling.