John Hard of CaJohns

by Cody Badaracca

All alliteration aside, CaJohns Fiery Foods out of Columbus, Ohio has been doing some deal making in the world of hot food. The company is nationally recognized for its vast catalog of sauces, salsas, and rubs and has won multiple awards for them. They’ve garnered attention at food festivals all over the country and have been featured on the Food Network and the History Channel. Heck, CaJohns owner and founder John Hard was even assimilated into Southern Culture when he was made an “Honorary Cajun” at the New Iberia Hot Sauce Festival. Quite the honor for a self-proclaimed “Irishman from Ohio.”

A quick history: John Hard has spent the last 14 years building up and running CaJohns Fiery Foods, which started out as a way to teach his teenage children about running a business, and to get himself deals on hot sauce. After attending the 1997 National Fiery Foods and Barbecue Show, and gathering samples of various hot sauces, Hard and his children decided what sauces they were going to sell, assembled everything, and proclaimed “OK, we’re in business.”

“It took about 6 weeks for the first order to come in for two bottles,” Hard said. “The kids were excited and we thought we were on our way.”

It would be another eight weeks before the next order came in for a single bottle. Excitement began to wane. “I could see that I was losing their interest and a lot of momentum, so we started booking festivals here in Columbus,” Hard said. Eventually, Hard began making his own sauce. “We started with some recipes and actually had some success with them in the 1999 Scovies. Our salsa won three first place Scovies in the Hot, Habanero, and Extra Hot categories.”

CaJohns’ “big break” came when appliance manufacturer Frigidaire used CaJohns hot sauce as part of a gift package for customers after seeing an article about the company in the paper. Both CaJohns and Frigidaire are headquartered in Columbus, OH. “They wanted a premium gift to give to people who bought ranges,” Hard said. “We ended up doing 7,500 gift packs for them, which put us all over the country and made us a buyable company.”

In 2004, Hard sold his prior family business of fire protection and began to work on CaJohns full time. “I thought this would be a nice little business for me and my wife. We could travel and sell hot sauce, but I never realized that we would pick up the momentum we did.”

Momentum like an avalanche: in the first three years of business, CaJohns product went from 7,500 bottles sold, to 75,000 in the second year, to over 200,000 in the third year. “We’ve had a phenomenal growth rate,” Hard said. “If we go back over the last 11 years, we’ve had 30 percent growth per year, and if you look at the last 5 years, we’re at just about 20 percent. Of course, as the number gets bigger, it gets harder to grow.”

Hard estimated that the company will go over 1.5 million in sales this year.

CaJohns and Winning Collaborations

There are numerous reasons why a company does well in the world of free trade: timing of the product, advertising, and knowing how to play the game while not biting the invisible hand that feeds you. In addition, there’s CaJohns’ fiery foods business model of collaboration and quality.

Calling the Chili Police!

When they're not at the Fiery Foods Show, the Chili Police are concocting hot sauce in Germany. Photo courtesy of Wes Naman

There are trends in the world of food that have helped CaJohns’ business, but part of the company’s success has stemmed from collaborating with others to create a symbiotic relationship. CaJohns has partnered with people like rock and roll poster artist Mike Martin to do labels for limited edition sauces, the Chile Pepper Institute to help further research on peppers, and the Chili Police from Königsbach-Stein, Germany to just help out a fellow hot sauce maker.

When the Chili Police came to the Fiery Foods and Barbecue show in 2009 as attendees, they were pleased to see that CaJohns had a booth there. They were in awe that John Hard was there in the flesh. “I was like on the status of celebrity or something,” Hard said. “They ended up hanging around our booth and were a lot of fun.”

Over the next year, the Chili Police decided they wanted to attend the 2010 National Fiery Foods and Barbecue Show as vendors and sell their product in America. “It is a big problem to bring food products into the United States,” said Ralf Nowak, the founder of the Chili Police. “The rules are very strict. We had to find out an easier way.”

That easier way was CaJohns, who offered to make Nowak’s sauce for him in America with Hot Mama’s label on it. Through that a partnership blossomed. Hard said, “we put them in touch with our label company and it worked out very well.” The collaboration has worked out well for CaJohns too. While the company already has a big European base—with about 20 percent of its sales going in Europe—the partnership with the Chili Police has given CaJohns a fresh perspective on spice in the Old World. “I’ve asked them what they’ve seen going on over there, and I think it’s a collaborative effort because it’s really opened my eyes,” Hard said.

CaJohns and the Chile Pepper Institute

Another collaborative effort CaJohns began was with the Chile Pepper Institute (CPI) at New Mexico State University in Las Cruces, “because chile production is going down worldwide,

Paul Bosland, NMSU professor, shows off his Guinness World Records certificate for the world’s hottest chile pepper (NMSU photo by Darren Phillips)

and that’s the root of our business. We wanted to know what we could do to help,” Hard said. “The best thing we could do was make a product, sell it, and give them a part of it.” CaJohns developed a whole line of products with the Bhut Jolokia pepper as the main ingredient. The “Holy Jolokia” hot sauce and salsa that was developed has been incredibly popular (the salsa won a 2010 Scovie award), and a portion of the proceeds from the products’ sales have gone to help fund the CPI.

The Chile Pepper Institute’s “Holy Jolokia” salsa won a 2010 Scovie Award.

The CPI has also worked with CaJohns to locate and contract with pepper growers to fuel the company’s ever-increasing product demands, because the Bhut Jolokia has become a mighty popular pepper. This has put CaJohns at the forefront of the trend, which is right where Hard wants to be. “If you’re going to participate in something, you really need to help pave the way,” Hard said. “I’ve always believed that if you’re going to try and be the best at something there really is no room for an ego, because in this business, you’re only going to be first for a little while…unless you are adapting.”

AUTHOR BIO: Cody Badaracca is a writer and freelance journalist based out of Nashville, Tennessee. He received his BA in journalism from Belmont University in Nashville. He owns and operates an upstart publishing company, Voices Of [the] Goat Publishing. You can reach him at: wcbadaracca@gmail.com.
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2. I’ve already won Scovie Awards. Why should I keep entering?
A Scovie Award that’s several years old won’t have the same relevance as a current award. Wins must be new and fresh to be newsworthy.

3. Why do you need four examples of my product? Because of breakage, samples for the judges, goodie appreciation bags for the judges, and samples for the media.

4. Can I get a discount for multiple entries? Yes.  If you enter 3, you will get the fourth free (any category).  If you enter 5, six and seven are free.  For more than five, call Emily DeWitt-Cisneros toll-free at 877-99FIERY (34379) or 505-873-8680.

5. What if my product gets broken or lost in shipping? You will have to resend it. We will notify you if there is a problem with your entry.

6. Do buyers notice Scovie Winners at the Fiery Foods Show? Absolutely.  This is what the banners and medallions are for.

7. Why should I order a Scovie Medallion? To get extra notice at shows or sales. The medallions are eye-catching and new, so will help draw attention to you and your product.

8. How do I decide whether to enter in the Cook It Up Division or the Regular Category? If your product can’t really be tasted by itself, but is a cooking ingredient (like a marinade, rub, etc.), it should be entered in the Cook It Up Section of the contest.

9. Can I enter the same product in multiple categories? Yes, within reason. Obviously a hot sauce can’t be entered as a rub.

10. How will you notify me if I’m a winner? You will be called on the phone before the winners are announced to the media.

11. Is there any way I can see the judging comments for my entry? Yes, by purchasing a Scovie Evaluation Report.

By Harald Zoschke

If your last name isn’t McIlhenny, chances are that you were not born as a fiery foods business entrepreneur. At least I wasn’t.

Running a software company for more than fifteen years in Europe and closely watching the signs of the time, I figured out a few years ago that it would not be advantageous to have all my eggs in one basket. At the same time, a friend of mine in Florida was having a hard time keeping up with his growing hot sauce business–besides running a hot shop with his wife, he had created two award-winning sauces that were taking off in terms of sales. Amidst the boom, however, the couple split up. Since the wife was the administrative part of the couple, and he couldn’t afford employees, he was lost in a flurry of making sauces, ordering ingredients, taking orders, and packing and shipping product.

Lesson learned: Before Mom and Pop decide to run a fiery-foods (or any other) type of business together, they should perform a serious self-check. Is the marriage stable enough to take the added stress of an operation that might turn into sixteen hour days? Are they able and willing to spend almost twenty-four hours a day together? Will they be able to manage a business in addition to their family?

In this particular case, my wife Renate and I were able to help, to everyone’s benefit. We acquired our friend’s hot sauce shop and worked it into our newly-founded fiery foods company, which got a nice head start due to the two sauces that were already well established. Also because of this purchase, our friend had some money on his hands to pay overdue bills, and he was then able to concentrate on his old job again, which he never gave up completely.

Lesson learned: Never fully give up your existing job or business until you feel confident that your “hot & spicy” operation will pay for all your needs, plus bring you some extra money. If you are a newcomer, try to build on existing experience and reputation.

While our friend had cooked and bottled his sauce in small batches, we figured that we needed to manufacture on a larger scale in order to keep up with the demand, as well as our plans for growth. Since we did not want to invest in a manufacturing facility of our own, we decided to use a local contract packer (“copacker”). After he signed a nondisclosure agreement, the copacker started to look at our formulas. While our products called for plenty of fresh peppers, this manufacturer was better prepared to work with mash (peppers chopped and brined at the grower’s location), so he advised us to use his mash, too. We were in for a big disappointment. Our sauces looked terrible, tasted different, separated like hell, and were only acceptable for a trip to the dumpster. Time to switch copackers.

Being higher up learning curve by now, we made a better choice the second time. Not only is our current copacker able to work with fresh peppers (he uses fresh ones for his own products, too), he shops for all ingredients without markup, and charges less manufacturing cost per case than his predecessor.

Lesson learned: Be especially careful when choosing your copacker, as he determines the quality of your product. If you need fresh ingredients, find out what the copacker normally uses. Find out what he is charging for key ingredients, then compare prices to some wholesale suppliers that you call up. Check hygiene, too; it’s helpful to visit the operation in question unannounced. You might be surprised.

As your business picks up, you’ll probably be in for yet another lesson. It seems to be notorious in the fiery foods industry that nobody pays you on time. Don’t run your business on the last dime; always have a financial buffer.

While companies like McIlhenny and Pace account for the lion’s share of this industry, strolling through the aisles of the National Fiery Foods Show® quickly shows you that many of the companies are very small–Mom & Pop, Father & Son, Buddy & Buddy. And guess what: When the show is over, every single mini company will write up almost identical “Thanks for stopping by our booth … we give you flavor and heat …” letters to their potential new customers. All other day to day tasks are handled in a similar fashion–every company an island in the sea of an industry that’s rapidly getting more competitive. One-thousand-fold duplicated efforts in small companies make sure that none of them will ever become a threat to the established fiery foods big wigs. In order to survive, you must work smarter and distinguish yourself from the rest of the crowd.

Lesson learned: If you are able to find trusty competitors, it might be worthwhile to join forces and split tasks among partners; each company still can (and should) keep its corporate identity. This means one person ordering supplies for two or more companies; another person taking care of administrative work and maybe answering the phone. Yet another one taking care of sales calls for all partners’ products. Sharing resources like phone systems, computers and staff skills can save big bucks and help you to make more money more quickly–law firms are the best proof. And last but not least, your customers are benefiting–they need only call one supplier for many products, and consolidated warehousing and shipping on your side saves them money. My company is undertaking such a co-operation with another local hot sauce company, and as far as any of us can tell, it is working quite well.

This story wouldn’t be complete without talking about Web sites. Even the smallest fiery foods company can no longer afford to be without an Internet presence. And of course there are “Web Designers” out there who know this very well and are just waiting for you. While I am fortunate enough that my software company in Europe is selling Internet technology, which enables me to build our fiery foods Web presence without external help, I saw quite a few fellow entrepreneurs talked into dubious site designs, banner ad purchases and online mall rentals. The most frequent sales argument you’ll hear is the number of “hits” (the total number of times all pages on a Web site are viewed), which is often mistaken for the number of potential buyers.

Lesson learned: Before signing up with a Web site designer, banner salesperson etc., ask for references. Don’t base your decision on hard to prove and often meaningless hit rates; find out what the referred clients actually got out of their investment. If you do develop a Web site, keep in mind that a successful site is never static. If you don’t provide interesting and varying content (including recipes, some humorous stuff, places to purchase your products etc.), people will visit your site only once. Decide who will provide this information, and who will be in charge of updating the site. And remember: people won’t visit your site even once if you don’t tell them where you are, so don’t forget to include your Web address (“URL”) on your business cards, stationary, show banners, as well as in your press releases and ads. Also, be sure you or your “Webmaster” registers your site with major search engines, the Internet’s powerful counterpart to the Yellow Pages. I decided to take care of our site myself, and I can tell you it takes a lot of time (say goodbye to late night TV shows).

Well, I’d like to tell you more about lessons I’ve learned so far, but I gotta go maintain our Web site….

Harald Zoschke is president of Suncoast Peppers, Inc. in Kressbronn, Germany and runs www.pepperworld.com

Update, September 2000: The above Hot Seat article originally appeared in Fiery Foods Magazine in November 1998. A lot has happened since then, as readers can tell by visiting our Web site. Although our first attempt of co-marketing with a “competitor” didn’t last too long, we learned how increasingly important strategic alliances have become. Latest development: Teaming up with CaJohns Fiery Foods Company of Columbus, Ohio. They acquired our award-winning line of hot sauces, which includes Vicious Viper, Belligerent Blaze, Butt Twister, Liquid Ax, El’s Red Eye, Sir Fartalot’s, Peppa Colada, Florida Heat, and Currybbean Fiesta. In turn, both companies’ products will soon be introduced in Europe. This way, our sauce line benefits from CaJohns’ strong distribution infrastructure. In turn, CaJohns does not have to worry about marketing their products abroad.

An Insider’s Guide to Placing Your Product
In Shops, Catalogs and Grocery Stores

You’re almost there. The recipe is great, and you think you’re ready for the big time. Not sure what to do next? Don’t worry if you’re feeling lost in a maze of packaging and procedures. We polled four hot and spicy buyers: Joni Rayment, owner of Salsas, Etc., a hot shop and mail-order source in Milpitos, California; Richard Crawford, partner of Chili Chompers, a hot shop chain and mail order source in Savannah, Georgia; Jamie Mays, retail consultant for Calido Chile Traders, a nationwide franchise based in Merriam, Kansas; and Faye Greenberg, specialty food director for the Central Market, a gourmet specialty food store in Austin, Texas. These people know what is hot, and they told us the best way to approach them with product, follow up on your query, and improve the chances of getting your stuff on the shelves.

Don’t be Afraid

All buyers say they welcome samples from all companies, but that small manufacturers must be realistic and honest about how much they can produce. Rayment says it is better not to oversell yourself, and only promise what you can actually deliver. Mays says that if a small manufacturer cannot produce large quantities, Calido Chile Traders is happy to handle small amounts of merchandise through one local franchisee, even though the product must still be approved through the main office.

At Salsas, Etc. and Chili Chompers, the owners put out samples of products in their stores for customers to try. “We really want everyone to succeed,” says Crawford of Chili Chompers, where each product is sampled for eight to ten months in the store to give it ample exposure.

Consider Your Packaging Before Approaching a Buyer

Your product may taste great, but if it doesn’t attract attention and conform to industry standards, it isn’t going to sell. Here are some points to assess:

–A professional looking label. Every buyer agrees that a professional looking label is a necessity. No photocopied pictures taped to the bottles.

–Shelf appeal. How does it stand up next to other products? Rayment thinks flask bottles are clever because the wider bottles take up twice as much shelf space, and more of the label shows because it does not curve around. Also consider how easily the bottles pack and how many will fit in a case.

–Obscenity. It’s in the eye of the beholder. Calido Chile Traders wants only “tasteful” labeling: “I’d be in big trouble if I tried to put `Slap A ‘Ho’ hot sauce in a downtown Chicago shop,” says Mays. “In order to get a product like this in our stores, I might suggest a name change to something like “Slap A Hog.”

However, Rayment says that even though she finds some labels offensive, there are others that she finds humorous, and humor, she believes, attracts both attention and customers. “Some people won’t buy anything with a devil on the label,” she says, “but others buy these sauces as gag gifts for their preachers.”

–UPC Coding. This is not necessary, but it is fast becoming an industry standard, and many stores use this method for tracking products. All buyers agree that UPC coding helps your chances of acceptance.

–Nutritional labeling. This also is not necessary to sell your product to a buyer, but it helps in selling to health-conscious consumers.

–Batch Numbers. Calido Chile Traders prefers batch numbers on product to make tracking easier.

–Expiration Dates. These are absolutely necessary for items that perish quickly such as chips, which only have a shelf life of about a month. But for other products such as hot sauce and non-fresh salsa, you will want to check with buyers for their company’s preference and specifications on this matter.

–Sealing. All products must be vacuum sealed, and should be able to spend time on the shelf without spoiling or leaking. International manufacturers should take extra care because improperly sealed product will not pass customs. Safety seals win brownie points with consumers.

–Directions. Make sure the directions work on products such as rice mixes, and that the finished result tastes good without add-ons.

Making Contact With a Buyer

Now you have all the details worked out and you’re ready to make a presentation. Every buyer we spoke with is happy to receive any product, but they all prefer that you call first to establish yourself, send samples of your product, then…LEAVE THEM ALONE. They need time to critique packaging, try out your product and gather commentary from other people in their offices and stores. Wait at least 30 days before calling back. “We get turned off by persistence,” says Rayment. “Give me a month and I’ll have an answer for you, don’t call three times a week.”

In late 2005, the Fiery Foods & Barbecue SuperSite ran a month-long survey to receive a snapshot of manufacturers and the market for chile peppers and their sources. Note that this was a worldwide survey, and that not every respondent replied to every question. As usual with any survey, these data should be regarded as suggestive rather than definitive.

1. What kinds of products do you manufacture or have manufactured for your company? Select all that apply.
1 Hot sauce 25.20%
2 Salsa 18.11%
3 Barbecue sauce 18.11%
4 Condiments 18.11%
5 Other 14.17%
6 Snacks 6.30%
Total Responses: 127

2. What varieties of chiles do you use in your products? Select all that apply.
1 Habanero 23.21%
2 Jalapeno 20.83%
3 Cayenne 19.05%
4 New Mexican 11.90%
5 Serrano 10.12%
6 Ancho/poblano 9.52%
7 Piquin 5.36%
Total Responses: 168

3. What varieties of chiles are difficult for you to locate? Select all that apply.
1 Habanero 34.78%
2 Piquin 19.57%
3 Serrano 13.04%
4 Cayenne 10.87%
5 Ancho/poblano 8.70%
6 Jalapeno 6.52%
7 New Mexican 6.52%
Total Responses: 46

4. What types of chile products do you buy? Select all that apply.
1 Fresh 25.00%
2 Powder 21.67%
3 Mash 15.83%
4 Dried pods 15.83%
5 Flakes 13.33%
6 Frozen 8.33%
Total Responses: 120

5. Would you like the opportunity to receive bids on chiles from different suppliers?
1 Yes 78.57%
2 No 21.43%
Total Responses: 42

6. Please rate your satisfaction level of the quality and consistency of the chile products you purchase.
1 Satisfied 64.44%
2 Very satisfied 33.33%
3 Dissatisfied 2.22%
Total Responses: 45

7. What is the size of your food company?
1 Less than $200,000 gross income per year 71.74%
2 $200,000 to $1 million per year 21.74%
3 More than $1 million per year 6.52%
Total Responses: 46

8. Do you source any of your chiles from outside the U.S.?1
No 64.10%2
Yes 23.07%3
Grow own chiles 12.82%
Total Responses: 39

9. If so, from what countries?
Mexico was the country cited the most often. Other countries mentioned included:Australia, Mexico, Peru, India, Spain, Costa Rica, Dominican Republic, USA, Netherlands, China, Thailand, Bahamas, and Chile.

10. What problem(s) do you have with your chile supplier(s)?
1 None 27.27%
2 Quality/consistency: 21.21%
3 Availability: 21.21%
4 Price fluctuations: 18.18%
5 Shipping cost: 6.06%
6 Stored too long: 3.03%
7. Dealing with suppliers 3.03%
Total Responses: 33

11. What is your opinion of Latin American chile suppliers?
1 Don’t know: 52.38%
2 Good: 23.81%
3 Unreliable: 9.52%
4 Late shipments: 4.54%
5 Difficult to find: 4.54%
6 Minimum orders too high: 4.54%
Total responses: 21

It’s like a gathering of wildebeest arriving for their annual migration, pawing the ground and excited about the experience that lies ahead. On the first Monday of October, about 50 Scovie Award morning judges converge upon the County Line BBQ, a barbecue restaurant in the shadow of the Sandia Mountains on the edge of Albuquerque. Some are old-timers. Some are newbies. All love the heat of capsaicin.

By 10 a.m., the parking lot is full, the tasting room is packed and a half-dozen tables are surrounded by excited foodies. The Scovie judges, who are chefs, restaurant owners, food critics and other culinary whizzes, are handing out business cards to each other and making small talk. Standing near each table is an assistant who will announce each category and pass around samples of this year’s entries.

“I’d like to have your attention,” announces Dave DeWitt, the organizer and originator of this annual pilgrimage of souls seeking capsaicin enlightenment. “You have score sheets upon which you’ll grade each entry on appearance, flavor, uniqueness and several other attributes. Then we’ll tally up the scores afterwards and determine the winners.” He cautions us not to discuss any product while judging. “And don’t make any faces,” he warns.

With that, the action begins. Table-assistants check that their judges have all the accoutrements for tasting and the necessary gastronomic salves-milk, flour tortillas, soft drinks and water-to quench any tongue fires that may get out of control.
So many entries in so many categories arrive each year, not every table can taste the same products. If a table is “lucky,” it might taste a number of habanero-laced foods; but if it’s luckier, it might get to taste some chocolate goodies.

The first product code number is announced. The judges dutifully note it on their score sheets. The unnamed, coded product makes it way around the table, and each judge places a sample on a plastic plate. The newbies watch the oldtimers perform their ritual: examine the product, smell it, taste it, score it, write any comments. Pretty soon everyone is in a similar rhythm. Life is good.

Now it’s barbecue sauces. First, the judges taste the sauce alone and then on a bit of toothpick-speared sausage or chicken. Used toothpicks and plates pile up, but are periodically whisked away. Whoa! A heightened sense of the universe (and everything else) suddenly appears in sharp focus. And-ah-is the room getting warmer? Mr. Reality says it’s the accumulative effect of endorphins from the relentless capsaicin. The first order for milk goes out, followed by a cascade of requests for water and soft-drinks.

A blizzard of salsas makes it way around the table. Then some dry rubs. Next, it’s habanero-laced sauces obviously containing time-release-but, hopefully, food-grade-napalm. Are the sauces laughing? Beads of sweat appear on the foreheads of judges. Fortunately, tiny cups of euphemistically named palate cleansers-actually antidotal sherbets-magically appear. They are quickly devoured.

After two hours of fiery nibbling and scoring countless categories, the morning session comes to a warm close. Pizzas and salads appear. Diehards staying for the afternoon session grab a slice or two, chat with acquaintances and wander around outside, taking in the scenery.

Soon, a second rush of vehicles appears–it’s the afternoon contingent joining the fun. It’s déjà vu all over again: examine, smell, taste, score, don’t make a face, yada, yada, yada. The next two hours fly by. Finally, the last product is tasted and hardly anyone has made a face. The fat lady has sung, and it’s over.

The capsaicin-buzzed judges pick up their gift bags and wobble their way to the parking lot, chanting “Scovie, Scovie.” Life is good.

How many times a week do we come across people who hate their present jobs? Barbecue hobbyists-turned-entrepreneurs love their businesses because they evolved from a favorite activity that grew into something bigger. What better way to make a living or subsidize an already established career in another field?

The degree of transformation from barbecue hobbyist to business entrepreneur varies–an idea emerges, concepts are kicked around, and research, if done correctly, can determine the market potential. While many folks are intimidated by the start-up investment, the majority of them believe in their products or services and are aware of the hard work required to start a new business. Many put together a partnership or consortium of like-minded individuals to share in the risk, labor, cost, and eventually the profits, of a ground floor company. With diligence, hard work, lots of effort, and a sound game plan, the satisfaction of success can be enormous.

I was out on the barbecue competition circuit recently, attending the World Pork Expo Great BarbeQlossal and the Illinois State Barbecue Championship, and I scoped out many of these fellow hobbyists-turned-business-people. Names like Bone Smokers Spice Rubs, Baby Joe’s Bar-B-Q Sauce, Happy Holla Barbecue, Westerfield Place Barbecue Sauce & Catering Company, Goobs’ Que Ball Tie Dye Barbecue, along with other catchy monikers were everywhere. Some pitch their “secret recipe” barbecue sauces, and “specially formulated” spice rubs, while others market barbecue apparel or offer services such as barbecue instruction classes or training videos.

It is entertaining, from a retailers point of view, to see the wheels of marketing and promotion take place. These folks “shoot from the hip, kick em’ in the butt and hit their market right between the eyes” and they are not shy in the least to do so. Very few of them have a public relations department on the floor below the penthouse of “Barbecue Centre Point Plaza.” In a lot of situations you see the company President, CEO, Director of PR and Marketing wearing one pair of Converse All Stars. The creativity of these people represents the knowledge, humor, and pride they have for their particular products. A prime example comes from an ad that Ray Lampe of Bone Smokers Spice Rub put together: “Don’t be an idiot, you couldn’t possibly make a rub this good on your own.” This is a bit arrogant, to say the least, but he sells a lot of rub.

In discussing marketing strategies with a few of these “stand up” folks, the comments differ as much as the products they sell. Some feel they are the “Davids in a Goliath world,” while others have the ambition to earn a million dollars in annual profit from their ventures. But they all agree that it takes effective marketing and a sound business plan to achieve success. They are all enthusiastic about their barbecue businesses, whether a full time gig or a sideline, and most of them agree that you have to spend money to make money, then spend it wisely on things that work.

“The process of bottling a barbecue sauce, from blackboard to store shelves, really opened our eyes,” says Rick Dipper of Baby Joe’s, who is referring to himself and his three partners, Joe, Andy and Joe P. “We had to choose a bottler, then a label type, we eventually hired a graphic design artist for our logo and our label, but we had no idea that we needed an FDA label and a trademark search,” Rick states. “Another problem was time. Baby Joe’s was supposed to hit the market last Thanksgiving, however, it took another four months on top of that target date to hit the shelves. The Christmas gift giving season was over by then.”

Even so, Dipper is confident in the company’s marketing effort so far. The sauce is in many gourmet shops, mid-sized food markets, and several meat markets. “We refuse to go into the large super markets due to the expensive cost of the shelf space,” Rick explains. The purpose of the sauce is to grow towards a larger picture. “People will see our name and get used to seeing it, so when we open our BBQ restaurant within the next couple of years (which is their goal ), people will say, ‘They make good sauce let’s try their food, too’,” Rick discloses. “But we need a very sound business plan to go on to our next goal. Otherwise the banks will not be very cooperative.”

Take confidence in the fact that there are people who have made huge successes out of this hobby. One of them is my friend Charlie Robinson of Robinson’s No. 1 Rib and Barbecue Sauces. Back in 1982, the late Mike Royko, a nationally syndicated columnist for the Chicago Sun-Times, said that he made the best barbecued ribs around, and he issued a challenge by organizing Chicago’s first Ribfest which was held in Grant Park, and attracted over 400 cooking entries. Those numbers are pretty close to the draw for Memphis in May or The American Royal Barbecue cook-offs. Charlie entered the event because he believed he had the best ribs out there and it turned out that others agreed–he won first prize. Charlie has been “Mr. Rib” ever since and even now his advertising proclaims: “Winner of the First Mike Royko Ribfest.”

But… Charlie dreamed of opening a restaurant where he could serve his many types of BBQ foods, pass on the Robinson family barbecue sauce recipe of Lambert, Mississippi, and make a living at the craft he loves. Having very little of his own money to “seed” the investment he went from bank to bank to bank, with nothing more than an idea, a picture of himself with Mike Royko, and the plaque award given to him at the Ribfest. Needless to say, he was rejected many times, but remained determined. Finally, a willing and open-minded banker decided to take a risk and gave Charlie the loan he needed to get started.

Now, in addition to his prize-winning sauces, which are sold internationally on a retail basis and through wholesale food distributors and brokers, Charlie has many successful restaurants throughout the Chicago area. He has also developed a spice rub and a line of hot sauces that are pretty damn good in their own right.

But Charlie knows that he must continue to work hard if he wants his success to continue. He constantly advertises his restaurants and products on Chicago radio spots, and places full-color glossy brochures right next to the pick-up window at all of his restaurants, so customers can’t help but grab one on the way out. He even does promotions with local food stores that carry his products. A Web page is in his future too. If you go to one of his restaurants, chances are he’ll be there because Charlie believes in the hands-on approach to doing business. “I teach my pit men exactly what I know,” he proudly informs me.

Ed Roith also shares the benefit of his experience. He is the owner of Happy Holla Barbecue, and is the Kansas City Barbecue Society’s official instructor of the KCBS sanctioned Certified Barbecue Judges Program. He travels from his digs in Shawnee, Kansas, to the east, west and Midwest sections of the country on a regular basis to conduct certification seminars on the art of judging barbecue competitions. His classes usually attract no fewer than 50 barbecue lovers at a seating. I attended Ed’s seminar last March, and even though I am an experienced barbecue lover and competition chef, I left with an even more in-depth knowledge of what judges look for in taste, appearance and tenderness of genuine barbecue. If you ever attend his program be prepared to sample as much true blue barbecue as your gullet can handle.

Roith also markets a line of barbecue sauces and rubs, and has produced two instructional videos. In the second video, Ed takes you from the kitchen, to the butcher shop, to the backyard. He explains how to select the best meat, shows how to trim all surface fat from the ugly but flavorful pork shoulder (which is what pulled pork is), and demonstrates how to start a fire accurately and maintain the constant temperatures required for genuine barbecue. Ed markets his products in many trade journals, grilling publications, and barbecue catalogs–but he doesn’t stop there. Roith’s products can be found at barbecue competitions throughout the country. Every time I run into Ed, he tells me “biz is good,” as we watch large numbers of customers buying his products.

The Culinary Institute of Smoke Cooking (yes, there is such a place) was formed by hobbyist Charles Knote. Charlie, as he is referred to by those who know him, started barbecuing back in 1951 as a pastime, and he perfected his craft by studying the Knote family cookbook collection, in addition to the more than 100 BBQ and meat science titles in his own library. He is the Dean and Chief Instructor of the CISC course material, is a Purdue University graduate, and has received an honorary Doctorate of Science from the University of the Ozarks. As a retired formulation chemist he frequently serves as a head judge in competition barbecue cook-offs.

“The difference between my course and other courses is this: I allow the student actually to use their own equipment,” he says. “Not only that, my students know they can call me any time to help with difficulties they may encounter. I do not travel all over the country to teach the course material, so they know where I am. I have been cooking outdoors for over 45 years, barbecue on all types of equipment, and have a smoke house attached to my home. I am constantly educating myself, and I pass this wealth of knowledge on to my students. I am not worried about revealing trade secrets in my course because I don’t cook competitively anymore.” Charlie markets his courses through his book Barbecuing & Sausage Making Secrets, sends direct mail, and advertises in trade journals and cooking school directories.

Another success story is that of Oklahoma Joe’s, which was born in the mid 1980s when Joe Davidson, a barbecue fan and hobbyist, designed and built several prototypes of his solid steel smokers that incorporated sophisticated air flow principles. In 1987 he tested the market by taking a dozen samples to the Oklahoma State Fair, and upon return, had sold all of the prototypes and had orders for over a hundred more. Joe built those cookers and delivered them personally.

Joe built the cookers in his garage in Perry, Oklahoma until space got too tight. He first moved to a bigger garage and then relocated again to a larger facility in Perry. In 1995, Joe moved his headquarters to a 25,000 square foot plant in Stillwater, Oklahoma.

There are products in the company’s line of solid steel cookers for people of all levels of experience, from the beginning backyard cook to the experienced chef. All of the cookers are hand-crafted in Stillwater and carry a lifetime guarantee against burn out. “We are constantly researching ways to improve our production process and develop new products,” says Joe. “The success of this company is due to a quality product and a dealer network that believes in Oklahoma Joe’s.”

The company also markets related products such as barbecue sauce and seasonings, as well as charcoal and wood. The products can be found in Wal-Mart stores, trade publications and in the company’s own full color catalog. Additionally, Joe has established a distributor in Switzerland who has introduced Oklahoma Joe’s product line and American barbecue to Europe. Approximately 6,000 Oklahoma Joe’s cookers will be shipped to Europe this year.

The keys to turning a hobby into a business are these: Build a complete knowledge of the market you are aiming for. Maintain confidence and a positive attitude towards your venture. Set aside a budget for marketing or promotion, no matter how small your company. Get belly to belly with your prospects and don’t take “No” for an answer. Invest some of your profits back into the business for expenses, expansion and other unseen, unexpected costs. Make a business plan–this is absolutely necessary, and if you cannot develop one on your own, hire a business or financial expert. And finally, enjoy what you are doing! Maybe one day it will be your business occupying the “Penthouse of Barbecue Centre Point Plaza.”

About the Author

Columnist Larry Gerber has been featured in the Chicago Tribune Good Eating food section, the Daily Herald food section, the Copley Courier Newspaper Your Life section, and writes two columns for the magazine USA Smoke. He is president and founder of Barbecue Man, Inc., an Illinois-based business that covers barbecue-related issues as well as performing barbecue and grilling cooking demonstrations tailored toward the print and broadcast media. His barbecue and grilling demonstrations were recently aired on the James Beard Award-winning food series, CLTV Good Eating and on the Chicago area variety show, Jeff’s Place.

Larry can also be heard on many local Chicago radio stations during the spring and summer seasons, discussing the art of barbecue and grilling, and he actively participates in competition barbecue cook-offs. He is perfecting his craft and seeks the prestigious Pitmaster Certification by currently attending the Culinary Institute of Smoke Cooking.

Bottles. Ingredients. Advertising. Labeling. Insurance. The list goes on and on when it comes to taking care of your business. However, while packaging and labels are high on the to-do list, insurance is often a last thought or after-thought that falls somewhere behind purchasing a corporate jet. While this may seem like somewhat of an exaggeration, food industry insurance expert Michael Coughlin of the Coughlin Group in Larchmont, New York, describes this as the “chicken before the egg” syndrome, observing that insurance coverage is often number 1001 on a long list of top priority projects. “I talk with a lot of companies who feel like they don’t need to worry about it until they really get up and running with their product and are doing some volume.” Unfortunately, he says, many people don’t even look into the possibility of insurance until after their first year of business, or when someone they are doing business with says they have to have it, or until disaster–or litigation–strikes.

Pay Now, Or Pay Later

So what about this insurance thing you say to yourself–do I really need it, and how much is all this happiness going to cost me? The answers are yes, and it depends. It’s a fact that some companies are hiring staff attorneys to do everything from collections to threatening law suits. In today’s litigious society, no prudent business person in their right mind would consider doing anything with the public without some sort of minimum insurance coverage. That minimum, according to Coughlin, is the proverbial million dollar question. While it often comes down to the reality of what a person can afford, he says, the accepted rule of thumb for anyone who manufactures or distributes food products on a small scale is $1,000,000 in liability coverage. That “bare bones” coverage for a small manufacturer, according to Coughlin, is only going to cost $750-$1000 a year–not a bad deal when you consider that if you are sued while not insured, you will have to pay an up front retainer between $5,000 and $10,000 to hire an attorney.

Protection and Authentication

The bottom line is that to be a real company, you need to have insurance. That’s the word from every hot shop, gourmet shop and grocery store we talked to. In fact, most stores require to see a certificate of insurance before they place their first order. Some require to see proof of coverage before they will even consider a product for placement. Just as your vendors have the right to ask for verification of sufficient insurance, it makes good business sense for you also to ask for certificates of insurance from suppliers who are a part of your business, from bottlers, to co-packers to distributors.

According to Coughlin, insurance coverage can and should be configured based on the particulars of your business, whether it’s big or small. What about your warehouse? Employees? Aunt Zelda who runs errands for you? Coughlin advises all of his clients to look at the big picture, in terms of what they insure. “Maybe you have employees who deliver cases of your products to stores or to the cannery in their own cars. If they get in an accident and get injured or kill someone, you could be named in a claim since they were on the clock.”

Go With a Pro

While the insurance agent who takes care of your home and car coverage may be able to meet your everyday needs, you might want to consider finding an agent who offers coverage specific to your industry or product as a regular part of his or her business. In fact, working with specialized insurance agents may actually be less expensive, since they work with your type of liability every day. You may also benefit from the volume they do, as well as save time since the agent won’t have to do as much leg work. Finally, make the time to get more than one quote, and make sure you understand what you are paying for. A good agent will take the time to find out about your business, as well as present an easily understandable proposal. Remember, the right time to find out about insurance is before, not after, your warehouse burns down.

There are many different coverages besides product liability that you may want to look into for your company. Here is a list of a few additional endorsements to ask a prospective agent about:

Property Coverages

1. Brands and labels
2. Property in transit
3. Property at fairs and exhibitions
4. Spoilage

Food Industry Specific Risks

1. Refrigeration equipment insurance
2. Rejection insurance to cover the cost of a shipment of imported food in case it is rejected by the U.S.D.A.
3. Internal “shrinkage” and theft coverage on bulk liquid products such as olive oil
4. Ocean, cargo and U.S. Transit coverage

Consumers Concerned About Food Safety

Even if you’re not thinking about things that could go wrong, your customers certainly are. The Industry Council on Food Safety conducted a nationwide survey of consumers and editors who cover food issues, and found that people are more aware of food safety now than they have been in the past.

*67% of editors and 52% of consumers think that the issue of food safety is more important today that it was one year ago.

*Of the 32% of the consumers who said they believe less than half of the media stories on food safety issues, more than 75% of them said they would take action in response to negative stories about drinking water, bacteria in food, and food preparation. More than 60% said they would take action in response to negative stories about pesticide residue, food handling, food processing, and mad cow disease.

*9 out of 10 respondents (consumers and editors) specifically listed meat and poultry packers, food processors and manufacturers, supermarkets, and restaurants as being directly responsible for ensuring a safe food supply. 8 in 10 named farmers, producers, and government agencies.

*A high number of editors and consumers believe that producers/farmers and supermarkets are providing a reliably safe food supply. High scores were also received by consumers, food processors and restaurants. The lowest scores in this area were received by meat and poultry packers and government agencies.

*Seven issues that concern consumers the most:

• Safe drinking water—-86%
• Food handing—-85%
• Food preparation—-81%
• Bacteria—-77%
• Pesticide residue—-74%
• Food processing—-73%
• Fat content—-62%

Source: The Food and Beverage Report.

So you just “invented” the world’s finest hot sauce. That’s great. Whether you plan on going commercial or just cook up a mini-batch for your friends and family, it is important to play it safe.

To prevent the sauce from spoilage and development of harmful bacteria like the potentially deadly Clostridium botulinum that causes botulism, it is important to cook the sauce at a proper temperature for a sufficient time so undesired organisms are destroyed, and to “acidify” sufficiently. This means to bring the pH well below 4.6, preferably below 4.2. The pH of a food is the measure of that product’s acidity or alkalinity on a range from 0 to 14. Any value smaller than 7.0 is considered acidic.

Monitoring Cooking Temperature

When a food product is acidified to a pH of 4.6 or less, according to FDA’s “Good Manufacturing Practices,” inhibition of growth of C. botulinum is assured. Hot sauce ingredients like chiles, other veggies and fruit are high in pH; i.e. they spoil easily without proper acidification. To acidify a hot sauce, vinegar, lime juice or other low-pH substances are added. Typically, a vinegar-based hot sauces has a pH in the range from 3.0 to 4.0.

Although our taste buds can recognize pH differences of various foods (acidic products taste sour, while alkaline products would taste bitter), measuring needs to be done more accurately. Measuring the pH is accomplished with litmus paper (an indicator which changes color depending on the degree of acidity), or–preferably and more precisely–a pH meter. This is an electronic instrument with a probe, and low-cost units are now available for less than US$ 100.00. One manufacturer and supplier of affordable pH meters is Omega; their Web site is at www.omega.com

Checking pH with a pH meter

It is very important to read the instruction manual, condition the probe, and calibrate the meter using buffer solutions (typically pH 4.0 and 7.0) accordingly. Also, the reading should take place at room temperature.

Going commercial?

For commercial products brought into interstate commerce, the requirements for registration, manufacturing, and process filing of “low-acid canned foods (LACF) and acidified foods (AF) in hermetically sealed containers” are issued and codified in Title 21, Code of Federal Regulations, Parts 108, 113 and 114.

Although the FDA does not approve, license, or issue permits for finished food products shipped in interstate U.S. commerce, all commercial processors of LACF and AF are required to register their establishments and file processing information for all such products with the FDA. Special forms are required for this, which are available from:

Food and Drug Administration
LACF Registration Coordinator (HFS-618)
200 C St. SW, Washington, D.C. 20204

Commercial products which fall into this category need to be cooked and packed by an operation that was also registered with the FDA, under the supervision of a properly trained and certified person. Now what’s excatly required? One problem is that if you ask five people, you’ll get five different opinions. Thanks to the Web, you can read the FDA regulations for yourself, for example here.

So will you have to deal with the FDA? Or just the Dept. of Agriculture? It highly recommended to consult one of the experts in this field. For example Dr. Al Wagner, Texas A&M, or Dr. Bill Morris, University of Tennessee (Knoxville, TN). These specialists can also serve as the so called process authorities which are required if you have to file your products with the FDA. They also hold Better Process Control School classes. For other class locations, search the Web for “Better Process Control School”.

About the Authors

While running Suncoast Peppers, Inc. in St. Petersburg, Florida for four years, Harald and Renate Zoschke developed a line of award-winning hot sauces, including Florida Heat(R), Currybbean Fiesta, Liquid Ax, and Peppa Colada. Renate attended Better Process Control School at the University of Tennessee. While the Suncoast sauces are now owned and made by CaJohns Fiery Foods in Columbus, Ohio, the Zoschkes opened the first German hot shop on the Web, and Harald was the original Webmaster and designer for  the Fiery Foods & Barbecue SuperSite and his own site, Pepperworld.