Scotch-Bonnet

How to Start Hot Sauce Production Business

agriculture small business

Hot sauce production business is very profitable and moderately challenging. The business requires extensive marketing because of competition from established brands. However local production that target statewide distribution is an effective strategy for small/medium hot sauce production companies.

Hot dog sausage production

Major producers of hot sauce

The top producer of hot sauce is the United States of America. Other major producers are Belize, Caribbean, Trinidad, Chile, Mexico, Panama, India, China and United Kingdom.

  • United States of America
  • Belize
  • Caribbean
  • Trinidad
  • Chile
  • Mexico
  • Panama
  • India
  • China
  • United Kingdom
Hot Sauce Production

What is hot sauce?

Hot sauce is a combination of hot peppers, condiments, salsa and seasoning. Commercial production involves canning, sealed nylon or capped bottling.

Types of hot sauce

There are different types of hot sauce based on the ingredients or country. Popular hot sauce are Cholula, Valentina, buffalo, Diaguitas, Scotch bonnet, Pickapeppa sauce.

More are Pique sauce, Marie Sharp’s, Trinidad Scorpion, Bajan pepper sauce, Ti-malice, D’Elidas, Tabasco, Lousiana Hot sauce. More include Chili pepper water, Texas Pete, Crystal hot sauce, Infinity Chili.

Popular hot sauce

  • Cholula
  • Valentina
  • Buffalo
  • Diaguitas
  • Scotch bonnet
  • Pickapeppa sauce
  • Pique sauce
  • Marie Sharp’s
  • Trinidad Scorpion
  • Bajan pepper sauce
  • Ti-malice
  • D’Elidas
  • Tabasco
  • Louisiana Hot sauce
  • Chili pepper water
  • Texas Pete
  • Crystal hot sauce
  • Infinity Chili

Funding

Amount of funding depends on the scope/size of the hot sauce production company. Costs run from $10,000 to $500,000 depending on the equipment, lease, and physical structures.

Sourcing raw materials

Major source of raw materials are local farmers or imports. Others are farmers markets, spice dealers, wholesale grocery stores.

Factory location and labor

Locate the commercial kitchen or factory close to farmlands or zoned area. Make sure the location has good road network, utilities, storage, and factory plan. Labor depends on type of equipment, factory workers, cleaners, manager and driver.

Hot sauce production Licensing

Cottage food laws in some states prohibit the processing/packaging of hot sauce from home. The health department recommends production in a factory environment or commercial kitchen. Safe food regulations covers provincial trade, export, manufacturing or processing other cover treating, preservation grading, packaging and labelling, storage, transportation.

A license is required for import/export trade, manufacturing process, grading, packaging, retail selling. Canned or bottled hot sauce requires appropriate branding, logo and batch number. The product is certified by the food and drug administration.

Register a business name and incorporate LLC. Get insurance premium, workers insurance, tax identification number, operational license, factory certification.

Licensing

  1. Safe food regulations covers (export, manufacturing or processing other cover treating, preservation grading, packaging and labelling, storage, and transportation).
  2. import/export trade license
  3. appropriate branding, logo
  4. batch number
  5. food and drug administration certificate
  6. Register a business name
  7. incorporate LLC
  8. insurance
  9. tax identification number
  10. operational license

Hot sauce production equipment

Common kitchen equipment is needed to make hot sauce at home. We have PH meter, latex gloves, food processor or blender. Others are nonreactive cooking pot, glass jar, and strainer.

There are many recipes for hot sauce based on the production process and ingredients. Here is an article on how to make hot sauce from home.

Home hot sauce making equipment

  • PH meter
  • latex gloves
  • food processor
  • blender
  • nonreactive cooking pot
  • glass jar
  • strainer

Ingredients in hot sauce production

In the United States of America there is a grading system or standardization for commercially produced hot sauce. The grading system is based on flavor, color, consistency of the pepper sauce. The manufacturing process involves container aging, cooking.

The type of hot sauce determines the ingredient however chilli pepper is generally used as a base ingredient. Primary ingredient in commercial hot sauce production is tomatoes, chilli peppers, pepper sauce, seasoning, salsa, condiments.

Other ingredients are vinegar, salt, vegetables, fruits, capsaicin, mustard oil, different spices. Belize hot sauce primary ingredient is onion however the sauce contains carrots and habaneros while Caribbean pepper sauce in addition has extra flavor. We have some with scotch bonnet peppers, shallots, garlic, lime juice, annatto seeds.

Ingredients

  • chilli pepper
  • tomatoes
  • pepper sauce
  • seasoning
  • salsa
  • condiments
  • vinegar
  • salt
  • vegetables
  • fruits
  • capsaicin
  • mustard oil
  • different spices
  • onion
  • carrots
  • habaneros
  • extra flavor
  • scotch bonnet peppers
  • shallots
  • garlic
  • lime juice
  • annatto seeds

Marketing

Sell the product at convenient stores, grocery stores, supermarkets. Other locations are farmers markets, trade fairs, and online, local stores. Sell to restaurants, hotels, fast food outlets, local residents.

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