GUIDE TO ALABAMA COTTAGE FOOD LAW
First in an Alphabetical Series of 50 State Cottage Food Law Guides (Plus DC)
Hey, Alabama Folks!
(And others curious about how cottage foods work in the Yellowhammer state, also called the “Heart of Dixie”, and even the “cotton state”.)
This is the first in a series of 51 (including DC) weekly digests on Cottage Food Laws, alphabetically by state.
So, Alabama is first. Alaska is next week. And Wyoming will be last, about a year from now.
This first one took several days to compile… but now I have a template, so states up next will take – I am guessing – about half the time.
With the 2021 update to their 2014 Cottage Food Law, Alabamans or Alabamians can now lay claim to a pretty rich range of options for cottage food marketing, delivery, and extended range of product types… to in-state consumers only.
(NOTE: See RESOURCE SECTION with Links at the Bottom.)
ALABAMA COTTAGE FOOD LAW DETAILS
What year(s) did legislation pass for Alabama Cottage Foods:
(PS Click on links below to see the law as written.)
Significant update, effective August 1, 2021.
What is the annual income limit?
NONE! UNLIMITED! Originally $20k. Limit removed with update.
Cottage Food License Required?
NO. But the local county health department MUST review your sample labels, verify your completed ANSI-approved food handler safety course, and provide you with a written Cottage Food Review form, before you can “cottage up”. Fees vary by county.
Cottage Food Home Inspection Required:
NO. But label must state: “This food is not inspected by the Health Department.”
Sales Taxes:
Alabama flat rate on food/groceries, including cottage foods (no exemptions) is 3%. Plus, there are over 200 local governments (cities and counties) with add-on local sales taxes as well.
Register for your permit (and other state taxes) here: https://myalabamataxes.alabama.gov/tap/_/#1
Selling Restrictions:
Must sell to end consumers, in-state only. May deliver personally, hire or appoint someone, or ship by mail or other parcel service. May not sell goods to any business FOR RESALE, including consignment.
You may sell from any venue, such as a mobile food unit, van, cart, tent, booth or store front that is NOT already permitted by the health department … as long as the products are being made in the cottage food producer’s home.
Online Selling Restrictions.
None. Website, social media (and by phone) all approved. Advertising OK. Sales to consumers in-state only.
Food safety training requirement?
ANSI Food Handlers certification REQUIRED, renewal every five years.
PS Lots of options, but I personally recommend Food Safe Pal. Everything online, including training, testing, and download of Certificate and Food Handler cards for your bag or wallet.
Fun to watch, “doodling” technology. Use Code MCHEF12 for $3 off the $15 course.
(NOTE: A fraction of the cost of ServSafe, and more enjoyable.)
Wholesaling Allowed?
NO. Again, you may sell to businesses acting as customers (e.g. breakroom, meeting goodies, customer appreciation) but NOT for resale.
What Agency Inspects and Monitors for Food Safety:
Alabama Department of Public Health is the approval and inspection agency for food products in Alabama. Find your closest/local office HERE.
Labeling Requirements:
Labels must be pre-approved by your county health department.
Every PACKAGE (not product) MUST have a label in 10-point or larger font, to include:
Name of the individual or business
Physical address or post office box of the individual or business
Common name of the food
Two Statements:
This product may contain allergens.
This food is not inspected by the Health Department.
Ingredients (with respective sub-ingredients in parentheses) listed in descending order by weight.
Note: Scannable QR codes are NOT a substitute for information directly on the label.
Labeling RECOMMENDATIONS (not required):
Name of the product in BOLD.
Contains statement to include any of the nine major allergens recognized by the United States that are in your product: wheat, soy, eggs, milk, peanuts, tree nuts (include type of nut), fish (type of fish), crustacean/shellfish (type of critter), or sesame. Example: Contains: Milk, Eggs, Peanuts
Weight of the product or volume. Example weight: 1 lb. 3 oz. Example volume: 8 fl.oz.
Label Disclaimer:
Required. “This food is not inspected by the Health Department.”
Ingredients List Requirement:
Yes, ingredients (with sub-ingredients) must be listed in descending order of predominance by weight.
Allergen List Requirement:
NOT REQUIRED. But must state on label “This product may contain allergens.”
RECOMMENDED by Health Department: List any and all of the nine FDA required allergens found in your product, including specific fish, specific crustacean or shellfish, and specific tree nut. If you do this, place the list after the main ingredients section on the label, in the form: “Contains … “.)
Sampling Requirements:
· According to the Alabama Farmers Market Authority, for state CERTIFIED farmers’ markets:
“No home prepared food samples shall be served at the market.”
· NON-CERTIFIED farmers’ markets may offer different rules, where sampling of your goodies is probably allowed. But check with the market manager.
CLICK HERE TO FIND YOUR CLOSEST FARMERS MARKET.
Other Possible and Notable Requirements (not a complete list):
Producers must register their business with the county health department environmentalist’s office.
If you live inside city limits, that municipality may also require a license for your business.
Some rental agreements, housing developments, or city zoning may prohibit you from running a business out of your home.
Some counties may also require a business license and/or a “doing business as” (DBA), sometimes called “assumed business name” (ASN).
Register your business (including entity) here:
https://www.revenue.alabama.gov/division/entity-registration/
Register your business for all STATE taxation purposes (including sales tax) here:
https://myalabamataxes.alabama.gov/tap/_/#1
Alabama also requires almost all businesses (including yours) to register for what they call “Business Privilege Tax”:
https://www.revenue.alabama.gov/individual-corporate/alabama-business-privilege-tax-and-corporate-share-tax/
Personal property used in your business is also subject to property taxes (e.g. appliances, equipment - but NOT inventory):
INFO HERE: https://www.revenue.alabama.gov/wp-content/uploads/2022/06/220616_BEST_BusinessPersonalPropertyTax.pdf
To open a business bank account, you will probably need an EIN number (along with your state business entity registration. And, depending on where you live, a business license from your city and/or county).
Get a federal EIN HERE: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
INSURANCE:
FLIP, the Food Liability Insurance Program, serves ONLY food businesses, and is the number one insurance company for cottage foodies. Click HERE to check it out!
Does Alabama Cottage Law Include or Cover Pet Foods?
NO
Cottage Food Law Covers Nutritional Supplements?
NO. Additionally, health claims fall under US Food and Drug Administration (FDA) regulations.
Alcohol Content?
Covered up to 3% MAX, but 0 for fermented or preserved fruits or vegetables. For products with alcohol over these limits, contact the Alabama Beverage Control Board.
Approved Food EXAMPLES:
Candies
Jams, jellies, fruit preserves, marmalades
Baked goods: cakes, cookies, pastries, doughnuts, breads, pies, cheese straws
Candied or roasted nuts
Tortillas
Popcorn (candied, coated, flavored)
Roasted coffee (including beans)
Hand-made chocolates/truffles
Dried baking (and other) mixes
Additional Examples of foods that CAN be sold WITH a pH of 4.2 or less and/or water activity less than 0.88. Must be tested by a Process Authority or state approved lab (subject to the testing organization fee schedule.) Results MUST be submitted to your county health department for review before offering to the public.
Dried and dehydrated herbs, herb mixes, vegetables or fruits (including freeze-dried, with water activity verification)
Fermented or preserved vegetables or fruits that do not result in the production of alcohol (e.g. pickled fruits and vegetables, sauerkraut).
Fruit butters
Tortillas
Pumkin breads, cakes, cookies, muffins, and rolls (not pies, custards, pudding)
Fruit pies with fruit and sugar fillings.
Barbeque sauce, salsas, and other low-acid or “acidified” foods, with pH verification. (PS Pretty unique option for a state cottage food law.)
Infused vinegars containing generally recognized as safe (GRAS) ingredients
Note: Some products, e.g. syrups, may also be approved with testing, on a case-by-case basis.
Examples of foods that CANNOT be sold to consumers as a cottage food:
Custards, puddings, cakes with custard fillings, meringues, cheesecakes, cream or custard pies and other desserts containing ingredients of animal origin. Or baked goods with any component that requires refrigeration (e.g. custard pies, cakes with a whipped topping, cheesecakes, raw cookie dough.)
Garlic in oil mixtures
Meats or fish in any form
Milk or other dairy products (i.e., soft or hard cheeses, cheese sticks, frozen milk desserts) - OK when blended into a product, and baked.
Vegetable pizzas (I assume baked pizza crusts OK.)
Kombucha
TCS (Time-Temperature Controlled for Safety) foods
Other Notes/Exemptions
Two of Alabama’s 67 counties, Calhoun and Montgomery, enjoy exemptions to the state law, and are allowed to make TCS foods under cottage food regulations. See your local health department for details.
ALABAMA COTTAGE FOOD RESOURCES:
Updated Brochure 2021 Alabama Cottage Food Law
(Warning: Out-of-date brochures based on the 2014 law are floating around on the internet. You can tell they are old, if they refer to the $20k income limit. This one is current, after the updated 2021 law.)
Fact Sheet for the 2021 Updates (additional details)
Cottage Food Law Official State Page
Cottage Food Law Official Articles:
https://www.aces.edu/blog/category/food-safety/cottage-food-law/
Find Locations and Register for Alabama Cottage Food Law Course ($25)
Third Party Alabama Cottage Law Pages Below: (Forrager is most accurate)
https://cottagefoodlaws.com/alabama-cottage-food-laws
https://ij.org/issues/economic-liberty/homemade-food-seller/alabama/
https://forrager.com/law/alabama/
Jams and Jellies in Alabama Cottage Food Making
https://www.aces.edu/blog/topics/cottage-food-law/alabama-cottage-food-law-making-jams-jellies/
Alabama Food Testing and Labeling Info:
https://www.aces.edu/blog/category/food-safety/testing-labeling/
Alabama Cottage Food Production Operations Group (Facebook) – not very active:
https://www.facebook.com/groups/376943859113608
Alabama Cottage Food Production Operations Page (Facebook) – also not very active:
https://www.facebook.com/profile.php?id=100064783803491
Alabama Vendor Events Facebook Page:
(Not a compiled/complete list, but may be good for marketing purposes)
https://www.facebook.com/groups/1627309530909963 Events only
Find Farmers Markets in Alabama (click on your county of interest):
https://agi.alabama.gov/farmersmarket/locations/farmers-market-location-map/
Farmers’ Markets may be Certified in Alabama (most are), and as I understand it, you must be certified as a vendor to sell at one. Certified markets include more stringent rules for cottage foods, including no sampling. Contact the Alabama Farmers Market Authority or your local farmers’ market for more information. https://agi.alabama.gov/farmersmarket/about/
ANALYSIS: The Alabama Cottage Food Law
Alabama offers a rich cottage food environment with the 2021 update, including:
· Wide open marketing/advertising to consumers, online or offline. Plus no income limit!
· Few restrictions on delivery option to customers (but in-state only)
· Allow some food categories you cannot make at home in most states… for example acidified/low acid foods, such as salsas, sauces, and condiments (but only with pH testing!)
Some interesting Alabama rules:
· You can’t sell cottage foods out of trailer, tent, booth, or food truck, that is already/otherwise licensed/permitted. (If unlicensed OK to sell out of, if you make products in your home.)
· List of FDA allergens is not required (just a statement that they may be present). However, Alabama recommends adding the nine allergens required by the FDA, INCLUDING the type of fish, type of crustacean/shellfish, and type of tree nut, mirroring FDA rules.
· Two of Alabama’s 67 counties, Calhoun and Montgomery, enjoy exemptions to the state law, and are allowed to make TCS foods under cottage food regulations.
· Label information must be in 10-point type or larger (ridiculous IMHO, and even 10-point varies WIDELY between fonts for actual size and readability.)
That’s all I have for ALABAMA!
If you see any mistakes or updates, PLEASE email me.
Next week… ALASKA! Time for some king salmon (cottage foodable?), wild berries, and … fireweed donuts?? Good times if you love the outdoors.
Mal Dell
The MONETIZATION CHEF
”Cooking Up Profits for Foodies!”