Advice on Helping Another Business Create a Hot Sauce for Retail

PepperDaddy

PepperDaddy

I have been asked to help create a retail hot sauce product for a chef (at least I think I have) and was wondering what everyone's thoughts were on the subject.  Here is a little background.
 
This chef backed my Kickstarter campaign and ordered one bottle of sauce.  His Kickstarter profile said he was a personal chef trying to become a TV chef, so I figured what the hell and sent him all three sauces.  He loved them and immediately tweeted and sent me a Facebook friend request.  It’s been pretty casual, a few likes and FB comments here, a few tweets there.  I initially proposed that if he liked my sauces then maybe he could use them on his show.  He agreed and now one year later he has funding and is filming his show.  It’s called “From Scratch”.  This link goes to the trailer and this link goes to the FB page.
 
He sent me a Facebook message the other day and this is what it said:

“We are interested in working with a sauce maker to make a couple From Scratch sauces for our new merchandise line that is launching.”
 
So I’m not sure if he just wants to talk and maybe get a little hot sauce making advice or if he actually wants me to help make a sauce for his product line.  If it’s the latter then I have no idea how to approach this.  He’s a real nice guy and I would love to help out in any way possible.  I think he has a real future as a TV chef and not everyone can have that in their corner.  He's going to call me tomorrow evening to discuss this.  Any thoughts?
 
Ken
 
Sort by date Sort by votes
If you have some sauces of yours and recipes , you change the just a tiny bit so they are same but different so they can be branded and labeled w.o any troubles. You make sure all the legal stuff for that is in check like whos are the sauces who has the labels right and stuff.. you get the idea , and how they are / can be used. And what are the monetary returns to you,depending on the various previous scenarios I mentioned up.
 
If its tv means there are money involved means you need to get your cut if you make a product dont think you would want to make something for free that can be potentially huge and profitable as brand in the future.
 
If the whole thing is a bust you got nothing to loose if it blows up and gets big you got lot to gain.
 
think about it.
 
Upvote 0 Downvote
Interesting----
 
 
My initial thoughts are-
if this guy is a chef why isn't he making his own sauces? 
 
 
 
 
 
Others will have more of a feel for how it goes with TV, shows, production, products....yea, can't give you any help there....
 
 
Is this a fishing expedition from them?  If the "chef" likes your sauces, are they just trying to get you to share the recipe and they can use it in an episode or make it and sell it?
 
 
I'd be VERY cautious.  Offer to appear as a "guest specialist" to talk about "making and selling hot sauce", but don't give anythiing away!!!!
 
Upvote 0 Downvote
salsalady said:
My initial thoughts are-
if this guy is a chef why isn't he making his own sauces? 
Click to expand...
 
Chef doesn't mean he knows how to make hot sauce.
 
Sounds like they want a couple hot sauces for their store to brand as their own and they like yours enough to consider you. You'll know more tomorrow.
 
Upvote 0 Downvote
salsalady said:
Interesting----
 
 
My initial thoughts are-
if this guy is a chef why isn't he making his own sauces? 
 
Click to expand...
The Hot Pepper said:
 
Chef doesn't mean he knows how to make hot sauce.
 
Sounds like they want a couple hot sauces for their store to brand as their own and they like yours enough to consider you. You'll know more tomorrow.
Click to expand...
I agree to that! 
 
 
 
 
The show is "from scratch"....so, set up and make a sauce "from scratch" for the show.  Doesn't have to be one you have in production, just a From Scratch sauce.  Pull a good sauce out of the archives for a sauce that tv viewers would be able to easily replicate.  Good luck with this, you may have a very unique opportunity to get onto a tv show. 
 
Upvote 0 Downvote
PepperDaddy said:
I have a few recipes I can give.  If he were to just give me a couple ideas of what he's looking for I could turn it into something tasty.
Click to expand...
Change nothing.

If you got here by going with the flow, that's how you should continue ... because it may very well be what differentiated you.
 
Upvote 0 Downvote
Congrats Ken!  Because you treated this guy well early on it's opened another door for you down the line.  That speaks to your genuine character.  Happy for you bud. :)
 
I'd imagine he's looking to 'create' a couple sauces that can be "From Scratch" branded and sold through his show's marketplace.  When I say create I mean that he'll provide you with some ideas/direction in what he's looking for and then YOU make them.  He's probably doing this with salad dressings, dips, infused vinegars, etc. How the rest shakes out depends on the percentages - specifically how much he and the show's producers and you will all make.  
 
They are going to approach you about making the sauces.  They'll want you to do the legwork and present them with a finished product (the easy part).  The hard part is going to be how to split the revenue.  Because there are multiple entities involved they'll all want a cut - the producers will say 'we'll be giving you nationwide exposure!' etc etc.  But unless the label specifically states 'made by KPW' with a blurb or a website listing no one who buys the From Scratch sauces will know you're doing them.  
 
That's not necessarily a bad thing if they're selling like crazy and you're making an acceptable cut, but if you're only getting say 5% above cost then it sucks.  So I might be inclined to trade some profit percentage for label real estate and treat the whole thing like a marketing opportunity, or if they aren't willing to co-brand I'd then be looking to get somewhere close to my current retail profit % out of it.  
 
Also consider:  Who's paying for the labels?  Who's storing/shipping the finished sauce?  Can your existing producer warehouse the stock and drop ship for them or do they need to buy/store/ship on their own?  Ideally they'll want you to take care of every step - which will mean you'll be able to up your buys and secure better pricing for ALL your labels/ingredients/shipping - because you'll be buying larger lots of ingredients.  
 
Just my train of thought that is.  ;)
 
Upvote 0 Downvote
Another fail tonight.  He's just too busy with the show and out of town tomorrow so we will try to hook up later.  I'll just keep patient.
 
Dru, I doubt he would want me to have label space on his product.  I know if I were a chef I would not want to advertise that someone else created my sauce.  I think treating this like a food broker is a decent idea.  Say 5% of wholesale or distributor cost.  I think that's a lot.  I know it's more than I'm willing to give up, which is why I don't have a food broker :P 
 
Hopefully I'll have more information to work with in the next week or two.  It's not a question of "if" we hookup on this, it's "when".
 
Upvote 0 Downvote
You must log in or register to reply here.
Back
Top