One other thing that stands out and needs to be said:
Using an out of state copacker is fine - there's nothing inherently wrong with it and no one should think less of you for doing it. A lot of companies do. Sometimes it just makes sense. Just don't pretend to be helping your local economy, which is exactly what "locally made" or "locally sourced" or "local product" is communicating.
E.g., if you tell people it's locally sourced or locally made, you're telling them you have an environmentally and corporately responsible product, with a low environmental footprint. Saying "locally made" isn't just a buzzword to generate sales - there are some very important considerations to it that either are, or aren't important to your company.
Some of these are:
- supports local economy
- supports local farmers / vendors
- low environmental impact by not flying/trucking in from another state - small carbon footprint
- quality implications - e.g. you're there to oversee production, QC your product, etc. There's an assumption that a locally made product has more oversight from you.
So with specific regards to that definition you posted, and your associated commentary, it's not just about what the "legal definition" of "local" is - as THP said, it comes off as trying to be tricky or fool people. And so to add to THP's commentary, the above list is typically what consumers infer from the claim of being a "local product".
It's ok if these aren't core values for you, or if they are but you couldn't meet them for whatever reason - you just can't have it both ways.
If you really want a blunt answer, stop by the produce vendor selling peppers or garlic at your local farmer's market. Tell them you use a FL co-packer who sources all FL produce and ask them if they think you have a local product. I'm pretty sure you'll hear some colorful language that will require the presence of an adult or guardian.
Wow, I never even considered all this at the time. The reason I brought it up here is because I don't want to lie at all to a customer, client or another business. I'll have to choose my wording carefully and not sound like a greasy car salesman at the same time.
The 1st part is an excellent policy - honesty is everything in business. The 2nd part is rife with pitfalls - if you tell a 1/2 truth or omit information, you're still being dishonest.
Just to be clear, even if I had Endorphin Farms source all the produce I use from CT (which is tricky since habaneros in bulk aren't really packing silos here in CT) and shipped to Florida, because the product was produced there it's going to be seen in the eyes of a consumer as a "Made in the USA" product, but a Florida product as well and not a local food?
1. you'd never do that because you'd spend a ton of money shipping product from CT to FL to CT.
2. Yes, it's a FL product because it's made in FL. It's certainly not "locally made". Local company, out of state product. There's no splitting hairs or slicing and dicing to make it a locally made product if it's made in another state. It is what it is.
I hope this isn't a pitfall that puts me on the outside. I've clearly been asked this a few times. This, to me, is scarier than trying to find a good price to sell at without driving customers away.
Back to point #1: be honest. If someone asks me anything I tell them the truth. In your case you have excellent reasons for making it at Endorphin - they have a great reputation, they're nice folks (I know, I chat with Adam often) they produce fantastic quality products and you didn't have the ability to do it yourself at that scale. These are all valid reasons, so I'm not sure why you'd be so concerned about pitfalls "putting you on the outside" - either your customers will like your sauce and will respond well to your sampling or they won't, on an individual basis. Some will care that your product isn't made locally but a lot more won't.
Go sell your product for what it is and be 100% honest - if you do that you'll never have to worry about what you're telling people because it's the truth. And if it weighs on you heavily or you believe it's hurting your sales, then consider looking for a local copacker to make future batches. But for now, roll with it and see how it goes. Cross bridges when you get to them, not before.
It's an industrial standard, and acceptable by the Federal Trade Commission. Shady? I guess that depends on who's wheels get greased
Your customers don't have wheels and won't want to be greased. I'd suggest not operating in these terms when it comes to your customers.