Hot Sauce Business?

[ThomR]

I started growing my own hot peppers a few years ago, and have been tinkering around with hot sauce ever since. This year I came up with a very very good hot sauce recipe.
I've given several bottles of it away to friends and co-workers. Everybody that has tried my latest recipe has said that it was the best hot sauce they have ever had. One of my co-workers drank 3/4 of a bottle of my hot sauce in an 8 hour shift at work.
A lot of them have said that I could sell it because it is such a good hot sauce.
So now I'm kicking around the idea of actually trying to make a profit off of my recipe. It will have to wait until next years growing season before I can start marketing it.

[foesgth]

If there is one in your area, a Farmer's Market is a good place to start. Check with your local health dept. first. Some of them require you to produce your product in a certified kitchen. Some are OK with home kitchen. I'll take some when you decide to start shipping!!!

[JonB_in_Glencoe]

One possible problem...as least for us in MN.
Depending on where you live and how consistent you climate is, Growing hot peppers can be challenging...they need a fairly long hot season. Some years, we in southern MN can produce Hot peppers, some years they grow but don't develop much of the heat.

[ThomR]

That's the plan. I'm also going to see if I can get my hot sauce into some Mexican restaurants in the area.

[ThomR]

Currently I live in southern Illinois and we don't have any problems growing hot peppers here.
My wife and I are planning on moving to the south western part of the states as soon as she finds work. That should provide me with a longer growing season, and hopefully more potential customers.

[JonB_in_Glencoe]

Well, I wish you the best!

FYI, I recently seen a documentary on Tabasco and Avery Island
There is secrecy and security (to say the least) involved with name brand hot sauces.

https://www.tabasco.com/visit-avery-island/

[smoked turkey]

ThomR I also wish you the best. I am not an expert on hot sauce, but I do like it. I too would be willing to give a bottle a try if and when you get it going. I don't know how you will go about selling it here since it is not a gun related item, but I do notice that folks here are pretty good cooks evidently from some of the posts I see. Let us know how it goes.

[LaPoint]

A former co-worker did the same thing with salsa. He retired early and went full time at it. He started selling it at the local farmer's market then went to the farmer's markets in Minneapolis and St. Paul. He is sells it through a couple smaller chain/family markets in the Minneapolis/St. Paul area. I would think that if you are successful with your hot sauce you won't be able to grow enough peppers at home and will need to use commercially sourced peppers. I love hot sauce. Best of luck with your venture!

[45workhorse]

I am in for buying a your hot sauce if you get it going. Good luck!

[ThomR]

Most of the people I've given a bottle of hot sauce to run out in a week or two. Mind you that these are five ounce bottles.
I'm not trying to put the Tabasco company out of business, but I think it's good enough to earn a decent income.

[sureYnot]

One possible problem...as least for us in MN.
Depending on where you live and how consistent you climate is, Growing hot peppers can be challenging...they need a fairly long hot season. Some years, we in southern MN can produce Hot peppers, some years they grow but don't develop much of the heat.Central Minnesota here. Never a problem getting a nice pepper crop. I make/eat a lot of salsa, Tabasco, and my fav.... Sausage stuffed, bacon wrapped, jalapenos. Have no problem growing pablanos, habeneros, and others, either.

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[jsizemore]

Will you be up for trading lead for hot sauce?

[ThomR]

Will you be up for trading lead for hot sauce?

Maybe.

[rking22]

Im in too, love hot sauce!!! There is lots of potencial on the i-net as well. Keep us posted, mailorder ????

[buckwheatpaul]

I started growing my own hot peppers a few years ago, and have been tinkering around with hot sauce ever since. This year I came up with a very very good hot sauce recipe.
I've given several bottles of it away to friends and co-workers. Everybody that has tried my latest recipe has said that it was the best hot sauce they have ever had. One of my co-workers drank 3/4 of a bottle of my hot sauce in an 8 hour shift at work.
A lot of them have said that I could sell it because it is such a good hot sauce.
So now I'm kicking around the idea of actually trying to make a profit off of my recipe. It will have to wait until next years growing season before I can start marketing it.

Tempt us with your post without pictures; cost per bottle; or the recipe!

[ThomR]

I'll end up setting up a website to sell online.
As far as the recipe goes, I'll just say that it has 8 ingredients.

[dbosman]

Check in with the county or state ag extension office. Some states offer help setting up small scale commercial businesses.
Hot sauce is one of the current hot commodities for starting a small business. Even just a state wide success can provide a fair living. If you do a web search for "start a hot sauce business" you will turn up a lot of links. Ignore any and all that offer to sell you anything. You'll know when you have to find a commercial bottling facility as your family and friends will be exhausted before that need arises.

Commercial bottling is a known product for any commercial bottling or canning facility. All, after they find out you're serious, will work with you to best deal with that aspect.
Your state university will have some business incubator type help in the business college. Generally that is free to cheap. If your product gets accepted to a business class product you'll get lots of free help in writing a business plan and how to proceed. Some of that help is worth the cost. Some of that help would be worth paying for, but you won't have to.

Michigan State University has those types of things and they've been featured in the campus news for some of their successes.
Good luck and hang in there.

[jaysouth]

For several years I made a sold hot sauces under the "death wish" label. Financially is was a disaster. First is the upfront cost of designing and producing labels. When you get the product manufactured in accordance with your state's laws and labeled, you need distribution. Breaking into retail distribution is a challenge. You can try farmer's markets and local sources but will likely not sell enough through these channels to pay for your labels. Major distribution is very expensive. Slotting fees for Food Lion were $60,000 per year. If the products do not sell well enough, they pull the product and bill you for returns.

Get the costs for a couple of thousand bottles and labels. Go see an accountant and he will tell you how many thousand units you need to sell to break even.

I owned a high volume restaurant that featured and sold the sauces. It was very good publicity and stroked my vanity, but I lost $40,000 in five years.

[Houndog]

There are a couple of hot sauce only boutique stores in Gatlinburg/Pigeon Forge Tennessee that would be worth looking into. Get your hot sauce on their shelves and you have an opening to sell to the world. Lots and lots of US and international tourists pass through there year around. GOOD LUCK with your project, and I'm in for at least one bottle!

[Chihuahua Floyd]

Look into start up kitchens. I know in Asheville there are kitchens you can use to get a business up and running until you get your kitchen good to go.
CF

[Finster101]

I want some too!

[JonB_in_Glencoe]

Shark Tank :holysheep

Since others are suggesting some 'far-out' ideas, I'll throw that one out there ;) LOL :p

:lovebooli

[dragon813gt]

Hot sauces are a very crowded market at the moment. Same thing for barbecue sauce. I watched at least one person come through the Show Shark Tank w/ a sauce. The amount of money the contestant had already spent was in the hundreds of thousands. But that was nothing compared to the numbers being discussed about distribution.

I wish you luck if you try to sell it. But it’s not going to be an easy one.

[redriverhunter]

put me down for one

[bedbugbilly]

Good luck on your journey with the hot sauce! Don't know whee you are, but if you got big enough to have to buy peppers - check out Hatch, NM. When we go to AZ from MI, we usually take the road through Hatch and hot peppers are all over the place - it's my understanding that they are one of largest growers - but that is hearsay from talking with folks there.

[Handloader109]

Jaysouth is right, not just about sauce, but a lot of products too. I would make enough for local restaurants that will purchase and farmers market. Forget chains. Maybe a few local groceries that dont charge for spots for locally produced items. Good luck.

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[jonp]

How hot on the Scoville? A niche or "hook" is where you can make it. Forget Food Lion, WalMart etc for now anyways. Guy at home found one for Maple Syrup. Not by the gallon but selling it in small, fancy shaped bottles as "Organic Maple Syrup" through boutiques in NYC. Instead of the
$40 Gal it normally goes for he is getting something like $500 gal. Same syrup. We both laughed like heck over the flatlanders but he is making Bank.

I'd work that angle, online sales like Etsy and so on.

I'd like to try a bottle but I don't like real hot death sauce. Texas Pete is about as hot as I like.

[Hickory]

Fly in the ointment-Health Department.
Here in Ohio, you need to manufacture your product in a certified kitchen, have the kitchen inspected by the health dept. and if you pass you will have to buy a $200.00 licence every year. Fines are in the thousands of dollars and you'll need insurance incase someone gets sick from your hot sause.

[Wis Tom]

Same here in Wis. you have to book spots in a certified kitchen, and have the health dept. inspect, and show proof of insurance. Can't imagine Illinois would miss a chance at taxing, and regulating you too. They have hit just about everywhere else, to tax.

[St. Hogustine]

If you ever take a road trip from southern IL to the great Southwest, stop by Subiaco Abbey in Arkansas and try some of their "monk sauce." A couple of the monks have a pretty good side business going re: hot sauce, and I bet they would enjoy sharing some advice re: production and marketing. Plus, it's just a neat/beautiful trip.

[jsizemore]

I'd like to try a bottle but I don't like real hot death sauce. Texas Pete is about as hot as I like.

Texas Pete on the sausage, egg and cheese biscuit at breakfast, French fries, and barbecue. Tapatio on grilled meat and McIlhenny's on the collards and turnip greens with roots.

[wv109323]

At some point,if the business grows you will not be able to raise the peppers yourself. You will need to be in the kitchen instead of in the garden. I am sure Heinz does not grow its tomatoes. Besides your supply will be seasonal and unavailable most of the year.
I would start with local restaurants and some way have the brand mentioned. Remember some restaurants proclaimed "We serve Coke-cola as our drink product". You may supply the restaurant with serving containers with your logo, like Coke-cola on the drinking glasses.
Next I would supply the local farmers market vendors with your product, like honey suppliers do.You do not need to be there to sell your product and it can be sold at several markets in a larger area.
I am sure there are outlets that specialize in products made in the state or region. I think Kentucky has the logo Made in Kentucky for in state products. People are loyal to local products. Here in WV there are several stores that specialize in local products.
A local salsa maker here started with pint and half pint canning jars as her container. That way the container is a usable product after the hot sauce is used.
Good luck

[JWFilips]

I did it with "Jami McPhillips Kilt tilt'n Hot Thai Sauce" Home grown and all organic for 10 years
Limited market but good interest locally! I'm now into Urfa Bieber/ Aleppo lacto fermented hot sauce! Very good but again limited market until word of mouth

[Plate plinker]

Others have done it you can too. Onward!

[jonp]

Texas Pete on the sausage, egg and cheese biscuit at breakfast, French fries, and barbecue. Tapatio on grilled meat and McIlhenny's on the collards and turnip greens with roots.

I never used hot sauce growing up in Northern New England, don't think I ever saw any, but when I joined the Army I quickly learned to carry a bottle whenever in the field. You can eat powdered eggs, fried spam or whatever if you give them a dose of Tabasco.

[JWFilips]

Well I do have to say you can sell for awhile until the State steps in! Almost every state has regulations that is why I only sold to private parties!
I'm really not sure it is worth the hassel! I usually give as "gifts"