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Vermont Cottage Food Laws

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Vermont cottage food laws are unique in that they allow you to start with no license at all. As you grow you can obtain different licenses to allow for more sales and opportunities.

You can get a Home Caterer License, Home Bakery License and a Home Food Processor License.

The easiest, fastest and cheapest path to starting your cottage food business is what I’ll show you below and will allow you to start today!

HOW TO START YOUR COTTAGE FOOD BUSINESS IN VERMONT – LICENSING

Cottage Food Laws - Home Baking Profits

To start your cottage food business in Vermont, simply follow the steps below:

STEPS TO START

Always contact your local city / county office and verify if a business license is required prior to starting.

This is simply done by calling the main number to your city and letting them know you are starting a cottage food business and ask if you need a business license.

  1. Pick foods to offer from the “allowed” food types listed below.
  2. Submit a home bakery license exemption form
  3. Get a local business license in your City/County – if required
  4. Get labels made (see label example below)
  5. Review Food Safety Requirements
  6. Start baking/cooking, marketing and selling

FIND AN ERROR – GET A SPECIAL GIFT

If you find an error, omission, mistake, broken link, any outdated information or an addition that we missed – simply email me at [email protected] a link to the page and any information and I’ll send you something awesome.

VERMONT COTTAGE FOOD LAWS – Foods That Are Allowed

The following are examples of common products you can made from your home kitchen.

Per the definition of “bakery” in 18 V.S.A. §4301, bakery products include “bread, cakes, pies, or other food products made either wholly or partially with flour.” I advise to double check before deciding on something by calling: 802-863-7221

Any product that requires refrigeration or is temperature controlled is not allowed under this program.

NOTE: If you would like to also offer – jams, jellies, candies, chocolates, salsa, sauces, salad dressings, etc. – you can also submit a home food processor exemption at the same time.

Bread

  • Bagels
  • Biscuits
  • Breads
  • Brownies
  • Cake pops
  • Cakes
  • Cookies
  • Cupcakes
  • Doughnuts
  • Muffins
  • Rolls
  • Scones
  • Sweet breads
  • Tortillas
  • Waffles


Pastries

  • Churros
  • Cones
  • Danish
  • Empanadas
  • Other Pastries
  • Pies


Snacks

  • Crackers & Pretzels
  • Granola

Real Life Cottage Food Entrepreneurs and Opportunities

VERMONT COTTAGE FOOD LAWS – PROHIBITED FOODS

  • Temperature controlled foods
  • Potentially hazardous foods

VERMONT ANNUAL SALES LIMITS

Most states set a cap on what you’re allowed to make annually.

This is usually put in place to push you towards opening a full-fledged retail business while at the same time letting you start from home. Vermont sets a cap of $6500 annually. $10,000 is the limit under the home food processor exemption.

To go beyond these limits, you can get a Home Caterer License, Home Bakery License and/or a Home Food Processor License.

A Home Bakery License will remove the cap of $6500 and allow you to make as much as you want annually.

ACIDITY LEVELS AND TESTING

Most states determine if a food is non-potentially hazardous by the acidity level found in the food. The higher the acidity, the more stable at a range of temps, that food product is.

For example: milk is low acidity and requires temperature controls.

The acidity of foods is measured by pH.

• The range of pH is commonly considered to extend from zero to 14. A pH value of 7 is neutral because pure water has a pH value of exactly 7.

Values less than 7 are considered acidic, while those greater than 7 are considered basic or alkaline.

• All fruits are acidic foods and are usually tart and sour. Ex: tomato, lemon, peach, apple, etc.

• The FDA rule for acidic foods states that a food must have a pH below 4.6 to be sold as a minimally processed food

• The reason for this is bacteria does not grow at this level of acidity.

• The exclusion shall not be construed as allowing the sale of low acid foods (pH > 4.6) i
hermetically sealed containers (i.e. home-canned green beans, peas, etc.) when such
food is not prepared in a permitted establishment.

TESTING

Some states require testing if the pH level is unknown.

For many food products, the pH level is already known. You can test for pH yourself using a pH spear tester. (make sure it is made for food and has a long spear tip).

Oklahoma State University shares an awesome guide for selecting the correct tester for foods and liquids which includes tips and tricks for operation and maintenance. Get The Guide Here.

VERMONT COTTAGE FOOD LAWS LABELING REQUIREMENTS

All food items must be properly labeled prior to sale. The following, at a minimum, must be present on all food items:

  • The name, street address, city, state and ZIP code of your cottage food business.
  • Allergens (see below)
  • Product name – e.g. Chocolate Chip Cookies
  • Net Weight

COTTAGE FOOD LABEL EXAMPLE

Below is an example label:

Vermont Cottage Food Laws - Labeling example

Using VistaPrint.com or similar – you can quickly create professional labels that not only serve to meet the state cottage food guidelines but also serve for marketing your awesome business and products.

You’ll find some fantastic examples of this from members inside VendorsUnited.com

ALLERGENS ON LABELING

The FDA lists nine (9) major food allergens. Listing any of these on your label is a smart business practice and will certainly help your customers choose a product.

  • Milk
  • Eggs
  • Fish (e.g., bass, flounder, cod)
  • Crustacean shellfish (e.g., crab, lobster, shrimp)
  • Tree nuts (e.g., almonds, walnuts, pecans)
  • Peanuts
  • Wheat
  • Soybeans
  • Sesame seeds

Simply add to your label: “CONTAINS: SOYBEANS” Some go as far to announce that a certain allergen is used in the same kitchen.

Some states require you list any potential allergens and potential for any cross contamination even if the allergen is not used in the recipe.

FDA Allergen Labeling Example: Contains Wheat, Milk, Egg, and Soy

WHERE CAN I SELL MY COTTAGE FOOD PRODUCTS

Vermont Cottage Food Laws – Sales Rules


All sales are restricted to:

Events
Farmers markets
Concession Stand
Home
Delivery
Pickup
Online

Inside kitchenincome.com you can find out how many cottage food entrepreneurs are getting sales faster than they can make the food.

FOOD HANDLER TRAINING AND BEST PRACTICES

Vermont does not require you take a food safety / handler course.

Many of our VendorsUnited.com members are proud to display their food safety certificates as a way to insure their customers that they care. This helps your business.

However, knowing the safe handling practices will protect you and your customers, it is always a good idea to take a quick online class and get certified.

There are many short courses you can take online and actually get certified and be able to share that with your customers.

Many of our VendorsUnited.com members are proud to display their food safety certificates as a way to insure their customers that they care. This helps your business.

SAFE PRACTICES

Much of this may seem like common sense, but even if you already know, it’s a good idea to remind yourself with a list of things that can prevent you from missing something small.

And if for no other reason… CYA! CYA = Cover Your A#%

CLEAN WORK AREA / WORK SPACE / SANITIZATION

Providing safe to eat foods from your kitchen – starts in your kitchen.

Keep your area clean and sanitized to avoid cross contamination and to insure you provide your customers and clients with the safest and best foods they can get.

The following are some “common” sense things you can do to insure the best environment for preparing foods to sell:

  • ​Keep all equipment and surface areas clean and sanitized

  • Make sure window and door screens are bug proof with no gaps

  • Keep ingredients separate to prevent cross contamination / e.g. raw eggs near flour

  • No pets in work area and preferably none in the home

  • Allow no-one with a cold, sniffles or sick in kitchen while preparing foods

  • Wipe down walls and clean floors daily

  • Use good lighting to avoid missing unclean areas

  • Keep window and door screens in good repair to keep insects out

  • Wash hands frequently while working and use food grade gloves for extra safety

  • Keep areas of food storage and equipment storage clean and sanitized

RECORD KEEPING

Why keep these types of records?
Let’s say the inspector calls you and says they got a report that your banana bread, someone purchased, made them sick.

You’ll be able to show that you didn’t even make banana bread that week and that the person who reported you, bought that 4 weeks ago and you weren’t even the one that sold it to him.

This does not need to be complicated. I love my yellow legal pads and they make an inexpensive tool for keeping up with the following:

  • The recipes you use including ingredients

  • The process you use to prepare that specific recipe: (can be just like recipe instructions)

  • Date made (can be coded for your own use only if your state doesn’t require the production date) e.g. Made 12.22.29 = 292212

  • Date sold (you can have a batch code to help track a certain batch) Simply write down date you sold an item

  • Location sold is another great piece of information to keep track of

  • Sales receipts are something great to keep for a couple of reasons and over at KitchenIncome.com I dive into the best practices, best systems and best methods for tracking, managing, selling and shipping.

COTTAGE FOOD lIABILITY INSURANCE

We live in a society that likes to sue. I can sue you for wearing that color shirt. No kidding!

Of course I probably won’t win, but at the very least, it’s gonna cause you stress and some costs.

Liability insurance is a MUST.

It can be expensive – but several years ago, I found FLIP and by far, they gave me the most protection (coverage) and allow you to run your cottage food business without fear of being sued.

WHY? Because they provide the lawyers. And their lawyers… they are good!

Of course you should price shop around with your local agent or a national brand company, but rest assured, I’ve done all the legwork for you.

Alternatively, some folks opt to get bonded. You’ve heard the saying before: “licensed and bonded”.

A bond is usually provided from an insurance bonding company or your own insurance company. My first time, I got a bond at State Farm.

A bond is expensive comparatively but is less out of pocket in the beginning. Of course, it’s way, way less insurance / coverage too.

A $10,000 bond may cost $50 annually while a $2,000,000.00 liability policy may cost a few hundred a year.

No matter what you decide… knowing you’re insured against frivolous lawsuits is worth every penny.

VERMONT COTTAGE FOOD LAWS IMPORTANT LINKS

VERMONT COTTAGE FOOD CONTACT INFO

Department of Health Agency of Human Services
Environmental Health
Food and Lodging Program
108 Cherry Street – PO Box 70
Burlington, VT 05402-0070
HealthVermont.gov

802-863-7221
[toll free] 800-439-8550
[email protected]

Local Health Department Office Contacts

UPDATES TO VERMONT COTTAGE FOOD LAWS

From time to time, links, info, rules and numbers change, are updated or made obsolete.

Although I spend time daily with hundreds of vendors (many of which are cottage food businesses) – I can miss an update.

If you find a broken link, outdated information or any other issue… please let me know and I’ll send you a special gift for helping me maintain the best site on the internet for the cottage food industry.

My goal has always been to have a central place that is absolutely free for those starting out or existing entrepreneurs who use their homes and kitchens to make real incomes.

Please send to [email protected] / or post inside the private VendorsUnited.com group.

Need more resources? Check it out HERE (Helpful Resources)

Take a peek at the best vendors on the planet, the community that rocks the food vending world: Vendors United…

Vendors United - Cottage Food Laws

Disclaimer

This information is provided to help those interested in starting a cottage food business. It is not a document made by the state government. This information is not provided as law nor should be construed as law. Always use the contact information for each state to confirm compliance and any changes.

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