4 Benefits Of Having An Organic Food Certified Product

4 Benefits Of Having An Organic Food Certified Product

4 Benefits Of Having An Organic Food Certified Product

You just got your new product finished, you got your Schedule Process, and now you’re ready to get your product to mainstream markets and supermarkets. But then your wondering should you get your product organic food certified or not. But let me tell you this first, not all products need an organic food certification. You have to use your best judgment. To decide that question first we need to talk about some of the benefits of having an organic food certified product will provide.

1. Increase Brand Awareness

Once you get your product approved, as an organic certified product, you are permitted to use the USDA Organic logol that you can put on your product labels. With increased demands of organic foods by consumers and retailers these days it allows you to capitalize on this organic growth movement. Having your organic food certified gives you the opportunity to get your product exposure to a new set of locations and customers that are not too familiar with your brand. Brand awareness is important for any business to consider because it helps with marketing your business and your products. Having your product certified organic can help garner some attraction to some of your older products that haven’t been getting conversions.

2. Acceptance To More Markets

Now that your product has been certified it has the potential to open more doors than you have previously experienced. There are some markets and stores out there that will only sell organic products. For example, you would normally see a local health food shop featuring their top organic food certified products. So basically if you would like to be accepted into some of the smaller or local organic markets having an organic certified product might be your ticket into those places. 

3. More Revenue

Every business wants to be successful and make money. To do that, you have to get your product to profitability as quickly as possible. How does getting your product organic food certified help you generate profit? Consider this: if you’ve been to Whole Foods Supermarket before, you may have noticed that organic foods are almost always more expensive than conventional non organic food. You can price your products higher when they are organic certified because some people only buy and eat organic food.There are many opportunities to make money in the organic food industry because of product differentiation and perceived higher quality.

 

4. Organic Food Certified Trust

Many people take their health very seriously and so are very deliberate about what they put into their bodies. These customers are far more likely to buy your product if it’s organic. Right now, the organic lifestyle is trending upwards. Consumers trust brands that are marked as certified organic more and more as awareness increases. There are many positive possibilities and much potential for business growth in this industry.

In a world where product reputation is extremely important, you should always strive to produce the best versions of your products. It’s hard to rebuild a good reputation once you’ve lost it. Your customers are putting their trust in your product because of the organic certified seal. You can’t claim your product is organic when it’s not, as you can face serious legal consequences for doing so.

When you’re ready for your organic certification you can contact us at Organic Food Incubator to help you get it started. Contact us HERE! 

Continue Reading: Where To Start? How To Start Producing And Selling Your Product!



Where To Start? How To Start Producing And Selling Your Product!

Where To Start? How To Start Producing And Selling Your Product

Where To Start? How To Start Producing And Selling Your Product!

You have an incredible product that you want to produce and sell. We would love to help–but before we do, here are some steps to streamline the process:

  1. Know your product- Understand the measurements and ingredients needed to make your product. Understand what your options are for wholesale ingredients and what the most cost-effective way to store and purchase them. If possible, come prepared with a scheduled process. If you do not have one already, the OFI provides services to create one for your product.
  1. Equipment Needs- While the Organic Food Incubator has a considerable complement of equipment f, you may need a product specific machine that  we do not currently have. For information about the equipment we have available check here.
  1. Packaging Needs-  Product, packaging needs may differ. When choosing  the packaging it is important to think about maintaining flavor, freshness, product shape, and if production will affect the package (i.e. heat or freezing product).
  1. Timeline- Have a timeline of your production expectations. Is this the first time you are producing this produc?Do you want a trial run? How often do you plan to produce?
  2. Licensing and Insurance- Make sure you have the licensing and insurance you need to produce your product. There are accredited programs that offer training and licensing.

If you do not know this information and you’re still not sure where to start, OFI provides consulting services to help you make your product. For consulting services, reach out here.

Continue Reading: 3 Reasons Why Getting A Scheduled Process Is Important

Margins And Costs| Where Is Your Profit?

Margins And Costs| Where Is Your Profit?

Margins And Costs Where Is Your Profit?

When we are talking about margins and costs relating to the food manufacturing industry, you need to know some basic information. Perhaps the most important information is what portion of the money earned from your product you’ll actually be making!

Unfortunately, you do not get to take home your retail price. Before you see a profit, the grocer’s margin is deducted, the distributor’s margin is deducted and your costs are deducted. The amount that is remaining is your profit.

Grocer’s margins are a percentage of the retail price, which can be up to 40%.

Distributor’s margins are a percentage of the grocer’s cost, sometimes up to 35%

Here’s a Simple Example:

 

Retail Price             $10.00

Grocer Margin        $4.00     40% of Retail Price

Grocer Cost            $6.00

Distributor Margin $2.10      35% of Grocer Cost

Cost to Distributor $3.90      Proceeds to Entrepreneur

Proceeds to Entrepreneur includes cost of manufacture, ingredients, bottles, caps, labels, transportation, marketing, etc. and PROFIT hopefully.

 

Your profit is the difference between ALL of your costs and selling price.

Your costs can include ingredients, packaging, and labor. These are the cost of goods sold. In addition, your costs can also include marketing, insurance, social media promotion, setting up/maintaining your website, product transportation, utilities, and more. Before launching your product, consider all of the factors that will affect your profit and your margins.

Read Next: Who is My Target Market? 

Business Tip: Pretend You Are Bigger Than You Are

Business Tip: Pretend You Are Bigger Than You Are

Business Tip: Pretend You Are Bigger Than You Are

Just like meeting a person for the first time, businesses often make judgments on first impressions. Here’s a business tip that you might want to consider- pretend you’re bigger than you are.

Have all your business formation information ready before contacting any suppliers. Make sure you have your EIN number, LLC documents, prepared W9, website and business email addresses prior to contacting vendors, suppliers, potential clients, or distributors.

Product and ingredient suppliers will often ask for this information prior to giving out bulk pricing for packaging and ingredients.  They often prefer that smaller companies and individuals go through a distributor. However, it is essential for your business planning to know what the bulk direct and distributor pricing will be—even if it’s unlikely that you will order from them for months or years. Make sure you ask the price per pallet, the price per truckload, and what the minimum order is.

The goal in your business planning is to determine if your business and product can be profitable 1 or 5 years from now. To do that you need all of the information, in order to understand where the price breaks are for ingredients, packaging materials, and manufacturing. If a truckload price doesn’t work in your pro forma, then you have a hobby, not a viable business. 

For example if you use sugar, a large company like Wholesome Sweeteners is not going to engage with you if you only want to purchase 50 pounds. Instead, they will direct you to a distributor. But if you say “ I purchase 6 pallets per quarter, what is your MOQ (minimum order quantity)”, then you will get their attention. 

Other businesses can be hesitant to give out information to consumers, so it helps if you can present like you are a larger more established business even if you are just starting out. 

This research will help you determine if your great hobby will also make a great business.






Read Another Business Tip: Where Is Your Profits?

Filing A Scheduled Process

Filing A Scheduled Process

Filing A Scheduled Process

For most shelf-stable fluid products, it is necessary to obtain a scheduled process prior to producing the product.

A scheduled process is your recipe and procedure, which has been reviewed and edited by a recognized process authority. With very few exceptions, if you are making a product that is fluid and shelf-stable, you will be required to have a scheduled process.

The FDA regulates the production of food and requires that the scheduled process be registered with the FDA.

The links below will take you to some recognized process authorities:

Food Science New England – – Fred Jewett – fred.fsne@gmail.com

NorthEast Labs 

Cornell University

University of Maine

North Carolina State University   or NCSU Filing Page 

To obtain a scheduled process, you must submit:

  1. Your recipe. Each ingredient must be measured by weight (pounds, ounces, grams, kilograms). Choose one unit of measure and stick with it
  2. Your method. These are the production steps.

The scheduled process is a formal document which must be followed exactly, by you or by your co-packer.

You may do this yourself, or we can do it for you. The advantage of using our services is that we have filed many processes and understand the pitfalls that slow acceptance. We are normally able to have the process approved faster with less difficulty than if you attempted to file the process yourself. We review your process and offer suggestions to help speed you on your way to production.

It is to your advantage to streamline the process and allow for as many variables as possible.  For example, if you only make 5 fl oz bottles, but you think in the future you may want to make half gallons, ask the process authority to write it for “4 fl oz up to 128 fl oz”

You may also ask them to write statements such as “Water may be added to thin the product to the correct consistency” or “Vinegar may be added to adjust pH”. If it is not on the document, you are prohibited from making adjustments without permission from the processing authorities.

It is also important for you to know how many gallons of product (this is a unit of volume) or unit of product produced by this quantity.

The process authority will make adjustments to your recipe and procedure to ensure that it can be safely stored at room temperature. This may include the addition of acid, salt, sugar, or other additives to create the correct pH or water activity.

Do not be afraid to question the additions if you think that it will change the flavor or texture of the product. There may be other options.

Once you have your scheduled process, you are ready to go into production and can safely make a shelf-stable product.

We at Organic Food Incubator would love to assist you in obtaining your scheduled process. Click here to get started: Get Started Now!