Uh oh...

DevilDuck

DevilDuck

I may be in trouble. Good trouble, but trouble nonetheless.

I took my sauces to my local bar where I hang out. I happen to know one of the head cooks there and he made some wings with my "Barnacle Remover" (the guy used the whole bottle I took up there...). Well, the owner was there and wanted to know what was on the wings because they didn't look like the "regular" wings and tried one. Ater he was done cussing and ate a few flour tortillas, he wanted to know where the sauce came from. Well, Jacob (the cook) pointed right at me. This was last night.

I just got off the phone with the owner, and he wants me to supply the bar with sauce. I told him that my sauce wasn't meant to be a wing sauce, but he didn't care.

I'm not even legal yet...what do I do? I don't have enough here at the house to last the bar a few days or enough peppers to make more.

I just had to do that, didn't I....:lol:

What do I do?
 
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I'm not a legal expert, but I think one of my universal axioms applies here: The safe bet is a good bet, even if it doesn't payoff as much as a riskier bet. If you explain to the owner that you are still looking for a new co-packer, but would love to supply the bar afterward and I'm sure he'll be happy to wait.
 
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Thanks. I just went into "panic mode" after the phone call.

I just went down to the bar with my sauces because everyone would hear about them from others who have visited my house and tried my concoctions. All I wanted to do is prove they exist.

I'm looking at a co-packer that's not too far from here, but I'm still prohibited by cost. It's a good price, but I just don't have the funds.
 
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DevilDuck said:
Thanks. I just went into "panic mode" after the phone call.

I just went down to the bar with my sauces because everyone would hear about them from others who have visited my house and tried my concoctions. All I wanted to do is prove they exist.

I'm looking at a co-packer that's not too far from here, but I'm still prohibited by cost. It's a good price, but I just don't have the funds.
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You can get FDA approval to do the sauce out of the house. I started out that way until my Blue's Carolina Pepper Sauce took off. I still do 8 gallons/week for a restaurant out of the house. There is no cost to get FDA approval. You just need to jump thru the legal hoops and provide PH levels and or preservatives to keep the sauce safe. You can get that info from almost any state university for $50.00.

Hope that helps.

Blue's
 
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Blue, this is not the case in all states. For instance, it is illegal to fo it New Jersey. There is no way around it. Also, you may want to seriously consider not making the stuff at home even if it is allowed. To make the stuff from yuor home is fine, but remember, your house becomes an asset to the company. If someone for some reason sues you, the corporate veil is pierced as there is no distinction between personal assets and business assets, as they are the same. Just a word of caution.
 
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DEFCON Creator said:
Blue, this is not the case in all states. For instance, it is illegal to fo it New Jersey. There is no way around it. Also, you may want to seriously consider not making the stuff at home even if it is allowed. To make the stuff from yuor home is fine, but remember, your house becomes an asset to the company. If someone for some reason sues you, the corporate veil is pierced as there is no distinction between personal assets and business assets, as they are the same. Just a word of caution.
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Thanks for the words of wisdom.

What I did was incorporate and carry 1 million+ in insurance. Won't protect me from big money people that like to sue, but should help. My co-packer can't get my recipe exact and the restaurants that buy from me after trying mine over the co-packer still want my home version. I do try and make sure I strain the body parts out before bottling!

Blue's
 
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LOL! Just looking out for people. Truthfully, I'd increase your coverage. It's usually the first million that costs the most, to tack on a few is much less per unit. I would LOVE to make the stuff at home, I almost feel detached in a way. I still make it for my house parties though.

I've mentioned it a couple of times on other threads, but local colleges will sometimes help you find a commercial area in orde to produce your pocket. That way the production of it is out of your house, and is now only a distribution area, much different.
 
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DevilDuck said:
Thanks. I just went into "panic mode" after the phone call.

I just went down to the bar with my sauces because everyone would hear about them from others who have visited my house and tried my concoctions. All I wanted to do is prove they exist.

I'm looking at a co-packer that's not too far from here, but I'm still prohibited by cost. It's a good price, but I just don't have the funds.
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Talk to the owner of the bar and see if you can manufacture the sauce out of his kitchen. You would be under his liability umbrella, no?
 
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Dan@BLP Labels said:
Talk to the owner of the bar and see if you can manufacture the sauce out of his kitchen. You would be under his liability umbrella, no?
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Not too sure how that would work. If I make it out of his kitchen, doesn't the sauce become property of the bar? Sounds iffy to me.
 
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Pay him rent for the kitchen or just give him a great deal on the sauce since you are using his facility. Make sure he understands that you will be making sauce to sell also. There are probably a million different wayys to go about this.
 
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DevilDuck said:
Not too sure how that would work. If I make it out of his kitchen, doesn't the sauce become property of the bar? Sounds iffy to me.
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I actually tried to share a commercial kitchen. The FDA in North Carolina wouldn't approve it because they said we would be sharing utensils and each party involved could not be responsible for each other. I explained that we would not share anything. He then ran his finger over a counter top and said how can't you share this.

Check with a co-packer. Mine does it cheaper for me than I can do it at home. I know money is tight but it might be cheaper in the long run.

Blue's
 
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I don't think it's legal here in NY. Also FDA approval is one thing, what about the board of health? Wouldn't it need to pass inspection?
 
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thehotpepper.com said:
I don't think it's legal here in NY. Also FDA approval is one thing, what about the board of health? Wouldn't it need to pass inspection?
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Not sure about NY. Here in NC, sauces fall under FDA only. The facility that the sauce is produced in, falls under Health Alliance; however, the FDA does the facility inspections unless you are processing uncooked meats and then the health alliance does the inspections. That my friend makes no sense at all, but that's good ole NC.

Blue's
 
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thehotpepper.com said:
I don't think it's legal here in NY. Also FDA approval is one thing, what about the board of health? Wouldn't it need to pass inspection?
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DEfinitely not legal in NYS! You can make it in a restaurant (which I do now).
 
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Well, I do have a commercial kitchen I can use (for a fee, of course), but I haven't talked specifics with he owner yet. I do know that I'd be cooking after hours and all day on Sundays.

I'd hate to make the sauces in the bar, that whole place would smell like peppers and vinegar during the day. I also see that turning into a problem for some reason... call it a gut feeling.
 
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