New CA Law Expands Cottage Food Industry Opportunities

Listen: Considered one of the top cottage food experts in the country, .David Crabill has been making chocolate chip cookies since he was eight years old. While trying to start his cookie business in 2011, he learned about the cottage food industry and created https://forrager.com which educates people about their state's cottage food law, and also provides resources to entrepreneurs about starting a food business from home.

https://forrager.com/behind-the-scenes-of-a-cottage-food-bill/

https://crabillcandy.square.site/

Here are some fast facts about the new law (AB 1144):

• Allows the 5,000+ cottage food operations (CFOs) in CA to ship their products anywhere in-state
• Also allows them to fulfill orders with a third-party delivery service (like Postmates, Doordash, UberEats, etc)
• Increases the annual sales limit
  • Former sales limit was $50k
  • New sales limit for Class A CFOs is $75k
  • New sales limit for Class B CFOs is $150k
  • The main difference between Class A and Class B is that Class B can also sell their products indirectly, like in stores, restaurants, and other wholesale venues. However, Class B permits are more expensive and require a home kitchen inspection.
• This is the first time CA's cottage food law has been amended since 2013. It was first created in 2012 (AB 1616).
• Asm. Robert Rivas sponsored the bill, and it also received a lot of support from the Institute for Justice