Quotes of the Day

Tuesday, Apr. 20, 2004

Open quoteWhen Charlie Ferguson was growing up in Beech Grove, Ind., he would help his dad, a connoisseur of spicy food, to plant and tend a backyard crop of chili peppers. So began a lifelong love affair with hot peppers. As an adult, Ferguson found commercial salsa either too salty or not spicy enough for his discerning palate, and he started making his own. By the time he married Glenda Klingensmith eight years ago and moved to her farm in Noblesville, Ind., Ferguson, now 52, was hooked on homemade salsa — so much so that he started planting jalapenos, habaneros, red chilis, Anaheims and sweet banana peppers. "Glenda goes, 'What are we going to do with all these peppers?'" recalls Ferguson. His response: make salsa — lots and lots of it. "We wound up making 140 quarts of it every summer, and we couldn't make enough of it," says Ferguson. "Finally, one day my attorney friend just called me over to the side and said, 'Charlie, I'm not trying to be nice to you — you need to be marketing this stuff. It's that good.'"

Within a year of taking their friend's advice, the couple had christened C&G Salsa. Their journey from kitchen to supermarket aisle has paid off handsomely. Crazy Charlie's Salsa — hot, medium and mild — is now in 87 Kroger stores in Indiana and Illinois. Charlie, a 27-year veteran of General Motors, is planning to retire in three years and devote all his energies to C&G.

Few products in the supermarket started out as the private stock of folks like the Fergusons. New foods are more likely to be designed and market-tested by corporate scientists, who could just as easily be making new pharmaceutical products. The Fergusons represent a growing flock of middle-aged foodies who are convinced that their homespun concoctions could be big sellers at the cash register. Of course, no one says it's going to be easy. But if you want to sell your favorite food to the public, there are lots of lessons to learn from the challenges faced by those like the Fergusons who have built thriving businesses around the tasty treats they have made at home.

For many, the road to the market is bumpier than expected. Consider the case of Joan Allen, 51, a free-lance television producer in Baltimore, Md., who decided to sell her popular dense, mousselike brownies after her job opportunities were severely curtailed during the post-9/11 recession. Faced with creating her brownie large-batch formula, she quickly discovered that she didn't have the slightest clue about how to work with commercial-grade liquid eggs. After that, two arrangements for using commercial kitchens eventually fell apart before she entered into her current agreement with Louise's Bakery in Baltimore. But probably her biggest mistake was not to have an attorney from the get-go. Allen had no idea that the name she attempted to trademark for her business — Chocolate Goddess Brownies & Sweets, a paean to the persona Allen adopts to give chocolate demonstrations — was already taken. Now she has an attorney who has helped her apply to use the name Silver Goddess Brownies & Sweets to operate her business, launched a month ago, in Maryland.

Experts say Allen isn't the only one to fall into these nettlesome traps. "The main problems are people's lack of familiarity with regulations and the belief they can cook food to be manufactured in the same way they cook it for immediate consumption," says Olga I. Padilla-Zakour, director of the Food Venture Center, part of Cornell University's food-science and -technology department in Geneva, N.Y.

Another challenge is getting shelf space. David Hahn, who started commercially selling his products, Caramel Sin and Cranberry Fool, in late 1999, when he was 51, says it took 2 1/2 years of "constant, everyday work" to get his first placement in a Whole Foods Market. His products are now in 80 stores. "What people don't get is how dogged you have to be to pursue it," he says. "It takes months of phone calls once a week, being both charming and pushy."

Hahn, a television writer who lives in Los Angeles with his wife and business partner Melanie Ray, started making Caramel Sin, "a fine candy in a jar," and Cranberry Fool, a natural, cooked-fruit topping, as holiday presents for family and friends about 14 years ago. Encouraged by the accolades they received, he concluded that he was sitting on a gold mine. "One Christmas, when it got to be more than 300 jars, my wife said, 'Get it out of my kitchen,'" he says.

But if you're going to cook for the masses, you'd better be able to take the heat. This is humbling business, and weathered veterans of corporate America, accustomed to a certain level of authority, often seem to give off an attitude of "Who are you to tell me I can't be CEO?" says Stephen F. Hall, who consults through his company, Food Marketing International in Scottsdale, Ariz., and is the author of From Kitchen to Market: Selling Your Gourmet Food Specialty. "It's fraught with great risk," says Hall. "I discourage folks from mortgaging their home."

Fortunately, Charlie and Glenda Ferguson had enough cash on hand to start their salsa venture. Bootstrapping the operation, they turned half of a barn into a warehouse early on. And soon enough their product was a barn-burning success — owing in large part to their systematic approach to learning about product labeling, food regulations and licensed co-packing facilities. In 14 months, the company starting ringing up a profit, and the Fergusons were selling their salsa at festivals and bazaars, presenting their product to food stores and winning prizes, including the first-prize People's Preference Award at the International Zesty Food Show in Fort Worth, Texas, last September.

"We really didn't know how complicated it was going to get," says Glenda. This year they are projecting about $500,000 in revenue, but their best reward might be seeing the salsa move into the hands of the consumer. "We were in a Kroger store recently by our display, and a lady came by and put a jar of our salsa in her cart," Glenda recalls. "It was a gratifying moment to see someone pick up our product to buy it."Close quote

  • Coeli Carr
Photo: STEPHANIE DIANI FOR TIME | Source: Want to take a favorite baked treat from your kitchen to the supermarket aisles? It ain't easy, but lots of food lovers are doing it. Here's what you can learn from their business ventures