Alabama’s Cottage Food Laws: A Complete Summary

Overview of Alabama Cottage Food Laws

Cottage food laws have gained significant traction in many U.S. states in recent years, and Alabama is no exception to this trend. In essence, cottage food laws are designed to enable small food entrepreneurs to operate businesses from their own homes, typically under less-stringent regulatory requirements than are typically required of commercial food enterprises. The goal is to allow entrepreneurs to develop and grow businesses that would eventually transition into commercial kitchens if successful.
Alabama’s cottage food law, crafted in 2016 as part of an extensive legislative overhaul known as Act 2016-253, allows for just such a scenario. The cottage food law has proven popular with thousands of state residents. A 2016 report published by Alabama’s Department of Public Health estimates that 563 cottage food businesses registered with the state in the law’s first year. That number ballooned to more than 2,000 in the law’s second year, with nearly $1 million in sales generated from home-based kitchen enterprises. In other words , the cottage food law has proven so popular that it has spawned the development of an entirely new food industry in Alabama.
But while Alabama’s cottage food law has opened the door to a new driver of the state’s economy, it is not well understood by the general public or by many small food entrepreneurs themselves. This has inhibited the growth of cottage food businesses in the state and has led to confusion over what is and isn’t permissible under the law. In addition, Alabama cottage food entrepreneurs should be aware of the state’s health code regulations and be conscious of the necessity of following the guidelines set forth by the Alabama Department of Public Health.
In the remainder of this blog post series, we will provide a comprehensive overview of Alabama’s cottage food law and what it means for small food entrepreneurs in the state. We will also dive into the specific guidelines that cottage food entrepreneurs in Alabama need to keep in mind as they launch and grow their businesses.

What is a Cottage Food?

Cottage Foods in Alabama refers to a specific range of food products that are made in home kitchens and sold directly to consumers without regulations that typically apply in a commercial kitchen. Under Alabama’s Cottage Food Law, cottage foods are generally food products that are made by hand, in small batches, and are not time- or temperature-sensitive for their safety.
"Food" is any "article used for food or drink for humans or other animals." It includes "chewing gum and all substances used as ingredients in the preparation of animal food or drink." Section 1-3-1(8) Code of Alabama 1975.
Cottage foods must be eithers sold directly to consumers (as in farmers’ markets) or twice-baked nonpotentially hazardous baked goods can be sold to wholesale customers as long as it is done through the sale of the product at the bakery or similar food establishment and not through wholesale distribution.
The law specifically prohibits the sale of "time/temperature control for safety" foods, which is defined in the Alabama Rules as follows:

(7) TIME/TIME CONTROL FOR SAFETY FOOD. A time/temperature control for safety food is any food that requires time and temperature control for safety to limit pathogenic organism growth or toxin formation. Pathogenic microorganisms including bacteria, molds, yeasts, and viruses are the organisms of primary concern.

Examples of foods generally not considered cottage foods under the Alabama law include pickles, fruits, popcorn, jams and jellies, maple syrup, flavored honey, dry pasta, and canned goods and beverages.

Regulations for Cottage Food Makers

To take advantage of the cottage food exemption, the producer must abide by certain legal requirements.
Permits and Registrations
To sell cottage foods in Alabama, you do not need to obtain a permit, license or registration from any local, state or federal government agency. Food and lodging establishments require a health inspection to operate legally. However, as noted in a previous post, food items which are processed and offered for sale through home-based businesses are exempt from inspection requirements. It is important to remember, however, that this does not absolve cottage food producers from meeting other requirements of law, and local authorities may establish reasonable guidelines to assure safe food handling where warranted.
Self-Certification
According to the Alabama House Bill 10, which established the cottage food exemption, producers wishing to take advantage of the exemption must file an annual self-certification with the Department of Public Health. The self-certification must attest that the producer’s products meet safe standards for human consumption and are not contaminated with pathogens or harmful substances. The self-certification may be filed on-line with the Department of Public Health.
Home Kitchen Inspection
Generally speaking, cottage food producers are not subject to inspection. However, as stated in the subsequent post, local authorities may establish reasonable guidelines to assure safe food handling where warranted.

Maximum Food Allowances Under Alabama Law

Section 5-18-2(b) of the Alabama Cottage Food Law lists the following food items that can be prepared in a cottage food production operation:
"(1) Baked goods, except for those otherwise requiring time/temperature control for safety such as cream-filled pastries;

• (2) Candy;
• (3) Coated or uncoated popcorn;
• (4) Dried fruit;
• (5) Dried pasta;
• (6) Cereal granola bars;
• (7) Trail mix;
• (8) Fruit butters;
• (9) Jams;
• (10) Jellies;
• (11) Vinegar and flavored vinegars;
• (12) Mustard;
• (13) Sprouts and mushrooms;
• (14) Certain fish and seafood (smoked/cooked shrimp only);
• (15) Raw produce, whole or cut (vegetables, herbs, mushrooms, fruits);
• (16) Seasoned rice, peanuts, and nuts;
• (17) Raw vegetables, herbs, mushrooms, fruits to be pickled and refrigerated;
• (18) Herbs and spices in their whole and dried state;
• (19) Cheese, fermented milk, yogurt, cultured milk, cultured buttermilk, and sour cream;
• (20) Pickles, relishes, dips, and salsas and hot pepper sauces; and
• (21) Fruit and vegetable juices (alphabetical listing is not provided in current legislation)."

Food items identified above are not subject to inspection by State Health Officials as long as they meet the following criteria:

Labels and Packaging Needs

Regulations require that cottage food products have specific information on their labels. You can find the full legal text of Alabama’s labeling requirements in the Alabama Cottage Food Law, as well as in Alabama’s Food Labeling Regulations, AMC § 20-1-22 et seq. The requirements include your business name on the label and a net weight or volume statement. The net weight or volume statement must use standard measurements (e.g., ounces, pounds, fluid ounces, pints, quarts) and must be on the bottom 30% of one of the principal display panels.
Cottage food products must also include an allergen statement on the label identifying the specific food allergens (i.e., milk, eggs, fish, wheat, tree nuts, peanuts, soybeans, and crustaceans) that are contained in the product. Finally, cottage foods must include your complete address on the label so that consumers can readily identify where your food was made .
According to guidance issued by Alabama’s Department of Public Health ("Department"), cottage food products that are "properly packaged" to prevent contamination, and include a label that contains the information above, comply with the labeling requirements. Proper packaging requirements are industry-standards that ensure that the food is adequately protected during transport, sale, and storage, and includes the following:
Since cottage foods are excluded from most of Alabama’s public health system, proper labeling and packaging requirements serve as substitutes for some of the protections and controls that apply to general food products. They ensure that food is free from contaminants, and that the source of the food is identifiable. In addition, proper labeling provides the consumer with useful information that permits the consumer to evaluate the food product and allows the Department to accurately identify and respond to problems related to any contaminated foods.

Selling and Promoting Your Alabama Cottage Foods

Once you’ve discovered what you can and can’t make, and how much you can sell, it’s time to get down to the business of selling. Many of the buyers for home-made products are looking for those unique items at fairs, festivals and flea markets. Therefore farmers markets and craft shows tend to become the primary selling venue for many cottage food businesses. Other cottage food businesses may choose to sell directly out of their kitchens, either through word-of-mouth, a family style newsletter or on Facebook. Regardless of how you choose to market yourself, a lot of that marketing happens digitally. Before you put significant effort into something (i.e., your packaging, website, customer lists), it’s important to know exactly what is – and is not – allowed by the State of Alabama. For instance, a cottage food producer can sell at a temporary location such as a farmer’s market, flea market, craft show, or church bazaar. They can also sell directly from their home kitchen. What they cannot do is to place ads on Craigslist or Facebook. Another important limitation is advertising your cottage food products by means of an "advertising circular," whatever that means. Is this a print circular or something electronic, such as email, a text message or Facebook post? The safe bet is to err on the side of caution. Like many aspects of cottage food laws, there aren’t any hard and fast rules concerning the type and degree of packaging a cottage food business requires. There are some general guidelines, though. For instance, the product must meet industry standards, be free from contamination, and must be identifiable. It’s safe to say that your product should be in an ‘as purchased’ state and should probably be in some sort of container. Above all, the law does require that the label must include: • the name and address of the cottage food operator • the common name of the food product • the word "homemade" • the date on which the food was processed • the ingredients of the food product in descending order of predominance • allergens as required by the Food Allergen Labeling and Consumer Protection Act of 2004 (FALCPA) Not only must your product be labeled to meet the letter of the law, it should also represent your product accurately. That sounds so obvious, but with so many home-based and boutique operations out there, it’s easy to get caught up in the competition. Implying ‘fresh’ or ‘made-to-order’ may not really be appropriate for a baked good that is prepared a day earlier. Your ‘hand-rolled’ bagel? Those would likely fail a lie detector test in the courtroom. Instead, seek to differentiate by highlighting the qualities that make your food unique.

Common Issues and Their Solutions

Embarking on a new business venture can be fraught with challenges, and cottage food businesses are no exception. Understanding potential roadblocks ahead of time will help you navigate obstacles more efficiently and successfully. Some common stumbling blocks and strategies to overcome them are presented here.
Legal Hurdles
As with all business opportunities, filing all necessary paperwork can be a tedious process. One of the most important documents you will file is your business license, which can be completed and submitted online through the Alabama Secretary of State’s website. This is also where you will go to apply for an annual cottage food registration.
In addition to registering your business in Alabama, you will also want to register your food business with the FDA. Although it is not required, it does provide several benefits, including an invitation to an FDA training seminar and a certificate of registration. It’s free, so there’s no reason not to do it.
Competition
It can be a bit discouraging when you realize that there are other cottage food businesses in your area. You may be thinking, "I’m going to have to work twice as hard to find customers."
Fortunately, you’ll have several areas where you can distinguish yourself from the competition. If you plan to specialize in gluten-free or vegan foods, for example, chances are good that you’ll have little competition. Catering to niche markets will also allow you to sell directly to consumers without having to compete with larger grocery store chains. Speaking of which…
Competition with Grocery Stores
It’s no secret that grocery stores sell homemade foods, and consumers are drawn to the taste and quality of these goods. When grocery store owners catch wind that Cottage Food Entrepreneurs are selling everything from cupcakes to candy bars right at their front door, they might feel a little worried about losing customers. It’s important that you differentiate your product from that of grocery stores that sell homemade foods. Find your edge, and use it to your advantage.
Food Safety
Often, Bakery Entrepreneurs think that if they’re not preparing food in a large commercial kitchen, they don’t need to follow food safety standards. Unfortunately, nothing could be further from the truth. If you plan to save money by cooking from home, you’ll need to take the same precautions that you would if you were looking to pass a health inspection.
Of course, any Cottage Food Entrepreneur worth his or her salt would never put anything on the market that could endanger customers. Still, in order to build a business that lasts, you should follow food safety standards carefully.

Future Developments in Alabama’s Cottage Food Landscape

The cottage food industry in Alabama is poised for continued growth and expansion in the coming years. While the Alabama Department of Public Health (ADPH) regulates these businesses, state and local laws often must catch up to market demand. For this reason, cottage food producers are hopeful that future legislation will address several areas of concern.
Currently, successful cottage food businesses face many practical obstacles. These include acceptance by local communities, education about food health safety and business development, and marketing for greater demand. The past caveat to marketing has been the limited scope of cottage food businesses. However, Alabama restaurants, farmers’ markets and community supported agriculture (CSA) groups are now taking an active interest in cottage foods.
Since passage of the Alabama Cottage Food Act in 2015, the number of cottage food producers has soared. Currently, ADPH estimates that 10 percent of Alabama’s food economy may now be cottage food related. Unfortunately, the law that regulates these businesses hasn’t kept pace with producers. Additional legislation is needed to update and streamline compliance with cottage food sales.
Legislators may be willing to address outstanding issues. Following the passage of the Cottage Food Act during the 2015 Alabama Legislative Session, Senator Clay Scofield indicated an intent to review the Act during the 2016 legislative session . Nonprofit organizations like the Alabama Sustainable Agriculture Network and the Alabama Farmers Federation expressed hope for legislative revisions that would eliminate geographic restrictions and allow sales of potentially high-risk foods such as meats, hazelnut spreads, soft serve ice cream and corn on the cob.
Additionally, prior to the advent of Alabama cottage food laws, many residents made their livelihoods through the sale of high-risk foods. These foods are now illegal to sell. Their producers face a crisis of economics as their source of income is lost while they may not have access to alternative outlets such as farmers’ markets or CSAs.
Market research indicates that consumers want locally-sourced foods. The National Public Radio (NPR) program "Hidden Brain" recently featured a piece in which researchers found a correlation between market growth and consumer preference for local foods, despite the fact that consumers may pay more for them.
Alabama cottage food businesses can fulfill the need for locally-sourced foods. They provide new opportunities for rural and underserved communities. Many cottage food communities experience increased interest from area restaurants and markets. For this reason, ADPH may be open to a review of the cottage food laws.
Living in a cave provides the advantage of perspective. While Alabamians may love their cave homes, producers may wish for different legislation that opens more avenues for cottage food businesses.