co-packer By using a copacker, is my product disqualified as being a "Local Product" in Connecticut and no lon

I ran into someone 2 days ago who was all excited about the prospect of putting my sauce in his store for local businesses.  Until he read the bottle and saw it was made for me by Endorphin Farms in Florida.  That boat sailed pretty quick and he withdrew the offer, telling me that the product was no longer a Connecticut product and I would have to have produced it completely myself.
 
Later on, I ran into someone else in discussions about farmer's markets... and they were unsure if my product would qualify as a local product either, meaning some/certain FM's may deny my product/business because I didn't bottle it myself.
 
Is a Local Product virtually all or completely all produced, (assembled & packaged) - in the state in which it's marketed in?
 
If my research, development, focus groups, business, mailing address and LLC registration are in Connecticut, USA... but the sauce is produced and filled for me by a copacker in Florida, am I disqualified from legally saying that this is a Connecticut product?
 
In short, yes. In order for something to be considered local it must be, well made local. Meaning if I sell only locally made items and I live in Florida, it must be produced in Florida. Some go even further and expect it to be created within fifty miles or so. The movement started because the idea is to limit the use of fossil fuels because many items come half way around the world, when it could be produced much closer. It cuts costs, burns less gas and so is better for the environment.
 
To that guy you were not local.  But I bet to most you would be.  You can't control how someone thinks about the issue.  I am in two farmers markets and both were "producer only" markets.  The products should be homemade or handmade.  They still let me in.  I just explain they are my recipes I developed in my kitchen.  I hired a co-packer to make the sauce so I would have time to go to the farmers markets and sell the sauce.  They were all fine with that.  I also tell patrons that and they have all been okay with that explanation.  I spoke with a buyer for a large grocery chain in town and they said as long as I am a local company then they would sell it as a local product, even though the product is made in another state.  Then again, Connecticut may be much pickier with this kind of stuff than Missouri.
 
I've been pecking around online about qualifications for "Local food" and it seems the FDA even recognizes a limit of 400 miles from production to location (of sales) - so with that, Florida to CT is over 1000 miles (St. Augustine to Hartford) - so I can't legally say it's a local product in CT.  Source - summary iii (page 2)
 
400 miles.PNG

 
But my explanation up to this point as been, I developed and perfected the recipe(s) right here in Guilford, Connecticut on the shoreline.  I used a wonderful processor called Endorphin Farms out of St. Augustine, Florida because filling thousands of bottles was very overwhelming, but the recipe and requirements were strictly controlled by me.  It's made right here in America.
 
Maybe it's just one guy getting to me, but it did strike a legal cord and a "?" above my head after being rejected after his initial offer.  "Great, I could put this right here for you... oh wait.  Here's your bottle back, sorry."
 
^
Exactly why NOT to do it.

People look for that wording and catch it, like you did. Then, have a negative impression.
 
I've commented on this subject before...You would not be allowed to be in my farmer's markets because you don't manufacture the product in California.  It doesn't matter where your business is located. 
 
But that farmer's market org is a certified FM, which has to impose those standards in order to meet certain criteria so that they can get the state benefits (tax implications, placing markets on state property/landmark locations, etc). 
 
Many stores will call BS on your claim of being a local product, because there are 2 things they generally consider: 
1. Locally sourced - Did your product help the economy of your state and did you support your state's farmers? 
2. Locally made - did you manufacture within 100 miles of you? Did you manufacture in your state? 
 
Definitions vary, but if you made your product out of state, you're not a local product in most stores/FM's eyes. 
 
Not all farmers markets care - but the certified farmers markets must meet the guidelines imposed on them. Swap meets, flea markets and non-certified farmer's markets can use their own discretion when it comes to letting you in. 
 
I sell product to a couple of the Bon Appetite cafeterias - their corporate office participates in a program called "farm to fork". The terms of that program dictate that any product brought in under "farm to fork" must be 1. manufactured within 100 miles of the company selling it, and 2. must source 65% or greater of total product within 100 miles (or 150, I forget which) - that's including everything - glass bottles, label, produce, spices, etc. If it were produce-only I'd be close to 95%, but since it's everything, I'm closer to 85%, which is well within tolerance for the program. It's great for the cafeterias because the $ for my product comes out of their national/corporate budget, and not their individual cafeteria budgets. 
 
When I sought out a co-packer, local manufacturing and sourcing were two key requirements for my company, because I strongly believe in local sourcing and supporting my local economy. It costs me roughly 25% more to make my product by doing so, but that was the trade-off I made in being true to my core values. Mexican produce is comparable quality and significantly cheaper - but I live in CA so I wanted to support the CA economy. 
 
As for your situation, and the somewhat loose definition you posted, it comes off as a serious reach.  Most people would not consider your product "locally made" by any stretch, and the statement about where you conceived it comes off as an excuse for why you didn't find a local place to make it. I don't think anyone would consider 400 miles to be "local", and certainly not from across state lines. 
 
I don't think you "blew it" by using a co-packer out of state, as it solved a need for you. If you couldn't have made it yourself, they provided you with a service to do so. But it certainly limits your ability to advertise as a "local" product (most consumers, including myself, and including 99% of FM customers, would call BS on that) and it will limit your ability to get into some sales avenues like upscale stores that specialize in local products, or farmers markets that can't allow you in by their own rules/standards.  That said, there are other stores, there's online sales and there are non-certified FM's who would likely let you in. 
 
So while it's not great, it's not the end of the world either. You are a local business - you can work that angle. Just don't tell people you have a local product, because IMO, you don't. 
 
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.
 
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?
 
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.

The Hot Pepper said:
Tricky wording will piss people off. Would you like to buy a "Made in USA" product that was designed in the USA, but made in China?

Not saying you are being tricky, but just avoid it. :)
 
products.jpg

 
It's an industrial standard, and acceptable by the Federal Trade Commission.  Shady? I guess that depends on who's wheels get greased
 
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. :cheers: 
 
LDHS makes several valid points. In a similar vein, I've never claimed that anything I produce is organically grown, even in cases where the actual practices I'm employing are exactly the same as the certified organic guy down the road. The simple fact is that I don't have the certification, and that means I can't legally call it organic. I have no problem with explaining to people that I don't use any pesticides or chemical fertilizers on my passionfruit, but I'm clear that they aren't certified organic.
 
I guess what I'm saying is that when it comes down to legalities, it's better to err on the side of caution.
 
Agree with Scott too.
Honesty is the only way to go..
Especially when dealing in the food business, you don't wanna piss off the wrong inspector or town official, or they may put out a 'hit' on you and make things real difficult.
 
I was turned down by several markets due to my sauces also being produced by Endorphin farms or my other co-packer out in Colorado. 
Or because of any of a number of reasons... Each town official I dealt with seemed to follow a different set of codes from the NJ Health Dept. manual.
 
Don't worry about the FM or stores you can't get into by having your sauce made in FL.  Roll with what you have for now and make changes of co-packers in the future if needed.  But be honest!  Nothing wrong with presenting it as "I'm a new sauce business and for the first run, I chose to go with a very reliable high quality co-packer.  We are looking for a local packer who can meet the quality we get from Endorphin Farms.  Hopefully we will have that resource in place for the next run."
 
I get questioned all the time where I get the fresh produce for the salsa.  I use local produce in season (from farmers who sell at the FM) and buy from a produce supplier the rest of the year.  The Jalapenos and Habaneros are locally grown and I process them in season for use all year.  Customers seem happy with that and it works for me!
 
 
Sometimes I add a sticker "Made with Local Produce" just for good PR..... when I can use all local tomatoes, onions, green peppers, etc....
 
Kalitarios said:
So I shot myself in the foot by using a copacker?
Definitely NOT!

I live in NY and could care less about a sauce made in NY. I care more about flavor and ingredients, of course! I think everybody does!
 
It seems in more rural markets, the whole root-to-table and "locally sourced ingredients" is a lot more important. 
 
A lot of businesses will get sales based on their "Local" claim...but if the product isn't good, there will be no repeat sales. 
 
Make a great product and don't worry about all the "claims", "niche markets", "catering to that .001% of the market.."  Start with one product that is the Mainstay and run with it....
 
Haha... it was the look on his face that stirred all this up.  The old "Oh wow, this will be great" - flips bottle over, reading the Made For line, turns from smile to stoic face "Yeah, this won't work out"
 
It's like you could pinpoint his heartbreak right at that point.
 
Lots of really good information as usual here.  So its not a local CT product, no bid deal there at all. But what about,....It IS a local Florida product and FL has year round FMs so go down there and set up or team up with someone who can sell your product in that market at the FMs or specialty grocers? Just a thought. 
 
If its important to you be be a local product, sell it where you are a local product.
 
Back
Top