How do I sell a hot sauce brand I make myself?
To sell a hot sauce brand you make yourself, make the business work without you in the kitchen. Write down the process, decide whether production moves to a co-packer or to the buyer’s kitchen, list your retailer and market accounts, and offer a set period of help after the sale.
When you make the sauce, pack it and sell it at the market, a buyer sees a job as much as a business. Your task is to turn that into something someone else can run. The more of it that sits on paper rather than in your head, the easier it is to explain and the less a buyer has to take on trust.
Write the process down
Record each recipe with quantities, sourcing, batch method, bottling steps and cleaning routines. Add where each ingredient and each jar or bottle comes from, and who else could supply it. Test the document: ask a friend to follow it. A recipe that only you can reproduce is a risk for a buyer, and your lawyer can tell you how to protect and transfer it properly.
Decide where production goes
A buyer may want to keep making it in your kitchen, move it to their own, or hire a co-packer. Each choice affects what is included. If your kitchen is rented, the lease may not pass to the buyer. If a co-packer takes over, the sauce may change slightly, so some owners offer to oversee the first runs. Be ready to explain what you think works best.
Hand over the accounts and the name
List every shop, market, restaurant and online channel you sell through, with who the contact is and how orders arrive. Some will welcome a new owner, and some bought from you personally. Introduce the buyer in person where you can. Check that the brand name and any trademark are in your name or the company’s, so there is something clear to transfer.
Offer transition help
Consider offering to stay on for a set period, at the market stalls and on the first batches. Agree the length, your role and any pay in writing. Ask your accountant how the sale and any ongoing help should be arranged.
Related reading
13 pages on the same subject, grouped by topic.
Selling
Buying
- Expert answerAm I buying a sauce brand or a sauce manufacturer?
- Expert answerHow do I find a sauce company for sale?
- Expert answerHow do I make sure I get the recipes when I buy a food brand?
- Expert answerWill a food brand’s grocery listings stay when I buy it?
- Expert answerDoes the co-packer contract transfer when I buy a food brand?
Legal
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
- 02Business Development Bank of CanadaGovernmentHow to Find the Right Buyer for Your Business
- 03Canadian Intellectual Property OfficeGovernmentThe various categories of marks
- 04Business Development Bank of CanadaGovernment7 steps to increase your business’ value—before you sell it
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