Learn how to scale your canning hobby into a profitable small business. Get tips for creating a business plan, obtaining licenses and certifications, marketing your products, and building a loyal customer base.
Have you ever dreamed of turning your love of canning into a successful business? Canning businesses are popping up all over, as people seek out high-quality, artisanal preserved foods. If you have an amazing canning recipe or two that you think could take the local food scene by storm, now may be the perfect time to start your own canning business.
Starting a canning business is easier than you might think. All you need are some simple ingredients, the right equipment, and your tried-and-true canning recipes. With passion, hard work, and persistence, you can build a devoted customer following and turn your home-based hobby into a thriving business.
In this guide, we'll walk you through the key steps to starting your own canning business, from perfecting your recipes and learning proper canning technique to obtaining the necessary licenses and permits, finding customers, and scaling up production. If you're ready to share your love of canning with the world, read on to learn how to turn your hobby into a successful canning business!
The Canning Business Market
The market for artisanal canned goods has exploded in recent years. As consumers seek out high-quality, locally-made food products, canning businesses have become increasingly popular. Canning businesses typically target local customers with an appreciation for gourmet and artisanal foods. Products are usually positioned as premium, luxury goods and sold at a higher price point.
The target audience for a canning business is generally affluent, foodie customers. They value fresh, organic ingredients and support local food makers and small businesses. Canning businesses can sell their products at local farmers markets, food co-ops, and specialty food stores, as well as online. Some canning businesses open their own retail storefront to sell products directly to customers.
While the overall canning and preserving industry is quite large, most canning businesses operate on a small, local scale. They emphasize high quality over mass production. However, some canning businesses are able to scale up over time and sell to larger regional chains or even nationwide. With the growing popularity of artisanal and gourmet canned goods, the market opportunity for canning businesses looks bright.
Developing Your Product
The heart of any canning business is, of course, the canned goods themselves. You'll need to develop recipes for products that stand out in the market and keep customers coming back for more. Some possibilities include:
•Unique fruit preserves, chutneys, and jams made from local, seasonal produce. For example, fig bourbon jam, strawberry lavender preserves, or peach Sriracha chutney.
•Savory canned goods like pickled vegetables, salsas, marinara sauce, or chili. Spicy kimchi, bacon onion jam, or pumpkin curry sauce would all make great unique products.
•Infused oils, vinegars, and cocktail mixers. Chili oil, lemon rosemary olive oil, berry shrub, or ginger beer concentrate have lots of potential.
• Ready-to-eat meals like beef stew, chicken soup, or vegetarian chili. Hearty, comforting meals in a jar are appealing for customers.
Your products should be made in small batches using high quality, locally-sourced ingredients whenever possible. They need to have a long shelf life when canned and stored properly. Consider how your products will be consumed and packaged for retail sale. Provide recipes and serving suggestions to help customers use your products.
Developing a line of 3 to 5 products to start is a good approach. You can then get feedback from customers and expand from there. Be sure to check regulations to ensure your canned goods meet safety standards. With unique, high quality products and beautiful packaging, your canning business can stand out!
Economics and Finances
The economics of a canning business depend on keeping costs low while still using high quality ingredients. Cost of goods sold includes ingredients, packaging, labels, and any equipment needed for production. Given the artisanal nature of the products, ingredients may cost more, especially if locally and organically sourced. However, since canning businesses typically operate on a small scale, initial startup costs can be relatively low.
Pricing strategies aim to position products as premium artisanal goods. Prices are usually higher than mass-produced canned goods. A standard markup for packaged food products is around 50-100% of cost of goods sold. So if your cost of goods for a product is $3, you would sell it for $6-$9. However, for premium products with unique, gourmet appeal, you can mark up as much as 200-500% of cost of goods.
For example, if you produce an artisanal fig bourbon jam, your cost of goods may be $5 for a 8 oz jar. But as a premium product, you could sell that jar for $15-$25. Be sure to consider what your target customers are willing and able to pay. You want to stay competitive with similar products while still maintaining a good profit margin.
Many canning businesses start out producing goods on a small scale to keep costs down. As sales increase, you can invest in more efficient equipment to ramp up production. But always focus on high quality over mass production. Keeping costs in line with premium pricing strategies will ensure your canning business is profitable and sustainable in the long run.
Marketing Your Canning Business
Effective marketing is key to building a loyal customer base and increasing sales for your canning business. Some strategies to consider include:
•Search engine optimization (SEO) for your website. Choose keywords like “artisanal canning business” or “[your location] canning company” to help rank higher in search results. Update your site with blog posts on canning tips, recipes, and more.
•Build a social media presence. Start accounts for your business on Instagram, Facebook, and Pinterest. Share photos of your products, behind-the-scenes shots of production, and recipes. Engage with followers by liking and commenting on their posts. Run social media contests and giveaways to increase shares and follows.
•Sell at local farmers markets and events. Apply to sell your products at weekend markets, food festivals, and craft fairs in your area. This allows you to meet customers face to face, get feedback on your products, and make direct sales. Offer samples and discounts to drive new customers to your website and social media.
•Contact local retailers about carrying your products. Approach gourmet food stores, co-ops, gift shops, and kitchen supply stores to see if they're interested in selling your canned goods. Be prepared to offer a wholesale discount, around 30-50% off retail price. Ask if they'll feature your products in a display for maximum visibility.
•Run a customer email list. Start collecting email addresses from your website, social media, and at events where you sell. Send a monthly newsletter with recipes, canning tips, new products, and special offers. This direct line of communication will keep your brand at the top of customers' minds and encourage repeat sales.
•Advertise in local publications. Place ads in food and dining magazines, blogs, podcasts, and newsletters in your area. Sponsor a canning or cooking contest or event. Submit your products for reviews to spread brand awareness and drive new customers to your business.
With a mix of online marketing, social media engagement, and direct community outreach, you can build a loyal following for your canning business. Focus on establishing your brand as a premium, artisanal producer of canned goods. Keep customers coming back for your high quality, delicious products and personalized service!
Sales Strategies and Processes
For a canning business, the majority of sales will likely come from direct retail channels. This includes farmers markets, craft fairs, food festivals, and selling to local retailers. Be sure to have an efficient process for managing your sales events:
•Apply for vendor permits and licenses required to sell at markets and events in your area. There may be fees for some events, so factor that into your budget.
•Prepare plenty of inventory for each event. Have a good mix of your products on hand, especially any new or seasonal items. Make sure everything is attractively packaged and priced.
•Set up an eye-catching display. Use baskets, crates, and props to showcase your products. Have a banner with your business name and logo. Offer samples if allowed. Your booth should entice customers and reflect your brand.
•Accept multiple payment methods. Bring a cash box with change, a card reader for credit/debit payments, and consider using a payment processing app that allows you to take payments via smartphone or tablet.
•Interact with customers and gather feedback. Engage people who stop by your booth, offer enthusiastic recommendations for using your products, and ask them what they think. Get contact info from interested customers to follow up with later.
•Track your sales at each event to determine which products and locations are most profitable. Compare sales between events to see if you should revisit a particular market or look for new opportunities.
For selling to local retailers, reach out with a wholesale price list and samples of your products. Be prepared to negotiate terms like margins, discounts, delivery, and product placement. Check in regularly to ensure your products are well-stocked and to get feedback from customers purchasing through retailers.
With time and practice, you'll develop a smooth system for managing your sales events and retail accounts. Provide the best customer experience possible to build loyalty and boost sales. Focus on high-quality products, strong relationships, and personalized service - the hallmarks of a successful canning business!
Operations and Execution
To run a successful canning business, you need to establish efficient operations and follow safe canning practices. Some key things to consider:
•Source high quality ingredients from local farms and suppliers. Buy in bulk when possible to keep costs down. Ensure you have enough ingredients on hand for your production schedule.
•Obtain the necessary equipment: large stockpots, knives, cutting boards, jars, lids, tongs, labeling machine, shrink bands or seals, etc. For higher volume production, you may want to invest in an electric canning system.
•Develop a production schedule based on the shelf life of your ingredients and capacity of your equipment. Make smaller batches more frequently, rather than very large batches at once.
•Follow approved canning methods to ensure food safety. Use sterile jars and lids, the appropriate processing time and temperature for your product, and check that jars have sealed properly.
•Create a dedicated workspace for production. It should be clean, temperature controlled, and have enough space for your equipment and ingredients. You may need additional storage space for inventory and supplies.
•Establish standard operating procedures for production, packaging, labeling, and quality control. This will ensure consistency between batches and compliance with regulations. Train any employees on proper procedures.
•Keep detailed records of recipes, production dates, batch numbers, and sources for all ingredients. This information will be important for meeting regulations, ensuring quality, and addressing any issues.
•Consider co-packing as an option if demand exceeds your production capacity. Find another local canning business with excess capacity to produce some of your goods under your brand and recipes. But maintain high quality standards.
With efficient operations, high quality standards, and safe canning practices, you'll be able to produce delicious products and scale your business. Keep optimizing your processes to increase productivity while still maintaining an artisanal touch. Focus on consistency and quality above all else in your canning business.
Legal Requirements
Before starting a canning business, be sure to research all legal requirements and regulations. Rules vary in different locations, so check with your local and state health departments. You will likely need a business license or permit to operate. There may also be zoning regulations regarding producing food products from a home kitchen or requirements for a dedicated production space.
Any canned goods sold across state lines must follow FDA regulations for safe food handling and labeling. Even for intrastate sales, you should follow approved canning methods to prevent foodborne illness. Check if your state has adopted the FDA Food Code or additional rules for cottage food operations.
Liability insurance is highly recommended to protect your business in the event of any issues with your products. Consult an attorney to determine if a limited liability company (LLC) or corporation is right for your business structure. There may be tax implications to consider as well.
While the legal requirements for a canning business may seem complicated, don't get discouraged. Take it step by step, starting with your local health department. They can outline exactly what is required to safely and legally operate your canning business. Do plenty of research to ensure you understand and comply with all regulations. It will give you peace of mind in starting your business and set you up for success!
Turn Your Passion for Canning into a Thriving Business
If you have a love of canning and want to share your homemade creations with the world, starting a canning business could be a perfect outlet for your passion. While there are regulations and requirements to keep in mind, many resources are available to help guide you through the process. With unique, high-quality products, strong connections to your local community, and an efficient operation, your canning business can become a successful and sustainable reality.
Turn your hobby into a thriving business by perfecting your recipes, learning proper canning technique, and obtaining the necessary licenses and permits to operate legally. Build your customer base through social media, selling at local markets, and supplying retailers. Focus on using the freshest, locally-sourced ingredients and maintaining the highest standards of quality and safety.
Keep optimizing your processes to increase productivity while still maintaining an artisanal touch. And remember why you started - your love of canning and sharing that with others. With passion, persistence, and by providing personalized service, your canning business can become a beloved local institution. So what are you waiting for? Get started and share your delicious creations with the world!