Selling Wholesale


#1

Hi!

We have had local businesses that want to carry our product. We have fridges around town based on honor systems with businesses we know and trust. We were delivering to a single cafe wholesale but learned at JuiceCon that is not legal for us if I remember correctly since we do not do HPP.

Anyone else have suggestions as to how they get their products out to sell at other interested businesses?

Thanks in advance!


#2

Major issue in the US is that we can only sell raw juice direct to consumer. Companies have done “consignment” models where another business has your product for sale, but technically you still own it. When someone buys the juice from the business, they are collecting the money on your behalf and settle up with you later. This is definitely a gray area, so I’m not recommending it, but just wanted to point out that others have done it. This was happening a lot in California for years up until about 2015 when the local health department cracked down.

In reality, the FDA needs to change the laws to be more in line with what is reasonable. Other countries like Canada, Europe, Australia do not have this regulation. The law really benefits big beverage that can afford to HPP or pasteurize.


#3

I’m in Canada and I’m planning to do exactly what kmsoto described - stock my juices with local businesses. I talked it over with the health department and they were fine with it, as long as the juice is kept refrigerated and is fresh. Of course that carries a risk if the business carrying the juice does not keep it chilled or tries to sell it beyond the use by date so that has to be managed.


#4

Thanks so much Charlie - consignment deals are the only other options we’ve come across and I don’t love that. Hopefully the JMA will be able to breakthrough and change some laws. With the pasteurization warning and dates, we should be able to wholesale.


#5

Hi Charlie,
I have known this was the law, but I do see other juice businesses wholesaling raw juice, even delivering it across the country. How are they doing this?! I have no interest in HPP, but am often approached by small local businesses who would like to carry my product. It’s a real bummer that I am not permitted to do this in a safe way. What is the real risk in doing so on a small level? I understand where the regulation comes from, and am not a fan of blatantly disregarding a law, but am curious how/why so many people are?


#6

I agree it’s a total bummer that you can’t work with local businesses that want to carry your juice.

Shipping raw juice state to state can be legal depending on what state you’re sending it to and what they’re specific laws are about raw products. Technically you are still selling direct to consumer so you aren’t breaking federal law.

I don’t really know. I remember a conversation I had with a juice co owner, and she said that basically the local health department just told them to stop.

If your juice did happen to cause an outbreak it could probably be much worse.


#7

We were selling non HPP juices “wholesale” for a while in Indy until we stopped to focus on growing other parts of our business. We did it through a loophole that people who make raw sushi use. We would sign a lease to “rent” refrigerator space from the grocery store and then maintain our own inventory and record temperatures. Call your local board of health and they may agree to it.


#8

That is a great idea.


#9

That’s a good idea. That’s another thing we were thinking of doing!! Thanks so much.


#10

Hi Clare! Thank you so much for this insight, super helpful! :grinning: I’m also in Canada hoping to do something similar. In which province are you located?


#11

Hi jars! I’m in Ontario. Are you using jars for your juice or bottles? Inquiring minds want to know! :slight_smile:


#12

So if I provide a POS system to the business that will carry my product and they conduct all transactions through my system, does that cover all legalities? It would be as if I had a stand alone shop within the store, right? I’m thinking that’s equivalent to a smoothie shop within a gym?


#13

It depends on your local department of ag and their regulations/how they enforce the FDA food code. I’ve had some inspectors say it had to be an employee of yours, in which case doing an employee share with that company could work. Ask your local department of ag inspector, and they can help walk you through it.