How to Expand Your Home Based Barbecue Sauce Business
Did you start your own barbecue sauce business recently? If not, maybe you are just thinking about doing so. Two of the initial steps that you’ll need to take are getting your barbecue sauce approved for retail sale and trying to get it onto grocery store shelves. Once those things happen, you may find yourself at a crossroads. That’s exactly what happened to an entrepreneurial friend of mine. He owned a restaurant and I helped him get his barbecue sauce business started. He began by making batches of his sauce within his own commercial kitchen. Then there came a time when both his barbecue sauce and his restaurant were doing so well that he had to separate the two and look for either a pilot plant or a co-packer for the barbecue sauce end of things. He felt that if he separated the two, it would allow both businesses to grow without him having to spend a great deal of time and money setting up a new facility. Here’s what we did next and why:
Understanding the Expansion Options
For those that are not familiar with the two options, a pilot plant is a step above a renting a commercial kitchen. It is used to produce barbecue sauce, or other food related items, on a grand scale. In most instances, you rent the pilot plant and then produce and package the barbecue sauce yourself. A co-packer is similar to a pilot plant, except the facility manufactures and packages the barbecue sauce for you. The benefit of using a co-packer is that it frees you up to take care of other things, like marketing and distribution. There are, however, a few downsides to consider. Using a co-packer typically requires you to share your recipe, pay for the convenience as well as give up day-to-day control over product quality and manufacturing times. In other words, it can be costly and you are at the mercy of the co-packer. Therefore, it is critical that you do your research before selecting one.
We started the process by contacting our local university extension services office. They gave us a list of names and contact information which we used to conduct in-depth research as well as set up site visits. If your local university extension services office does not know of any pilot plants or co-packers in your area, I would recommend that you start your research by checking out trade organizations and journals like the Contract Packaging Association and “Packaging World” magazine. I’d also suggest that you interview people currently using the services of each facility on your short list as well as investigate the sites through the health department and other regulatory agencies.
Deciding on an Expansion Option
We fully examined each option and then determined that renting a pilot plant one day a month was the way to go. Renting the pilot plant one day a month allowed my friend to manufacture six months worth of barbecue sauce in one day. It was cheaper than entering into a long-term contract with a co-packer and it allowed him to retain control over his product and recipes. At the time, we felt that it was better to wait until his barbecue sauce sales exceeded a certain dollar figure before signing on with a co-packer. It proved to be a prudent move.
Killeen Gonzalez has degrees in marketing and sales as well as hotel and restaurant management. She has also successfully brought a barbecue sauce to market.
More from this contributor:
How to Get Your Barbecue Sauce Approved for Retail Sale
