How to Start a Class B Cottage Food Business in New Hampshire

New Hampshire cottage food producers can choose between two paths: Class A for direct sales only, or Class B for wholesale opportunities. If you're thinking about selling your homemade goods to local stores, cafes, or restaurants, Class B is your ticket to scaling beyond farmers markets and direct sales.

Unlike many states that cap cottage food sales or restrict online selling, New Hampshire keeps things simple. No sales limits, online sales allowed, and wholesale permitted with the right license. But Class B does come with additional requirements that Class A producers don't face.

Who This Guide Is For

This guide walks through the specific steps to obtain a New Hampshire Class B cottage food license. You'll learn exactly what paperwork to file, which inspections to expect, and how to legally sell wholesale from your home kitchen.

This is for producers who want to:

• Sell to local grocery stores, cafes, or restaurants
• Scale beyond direct-to-consumer sales
• Take advantage of New Hampshire's no-cap policy
• Build a wholesale cottage food business

Understanding Class B Requirements

Class B cottage food operations in New Hampshire can produce the same foods as Class A operations, but with wholesale privileges come additional oversight requirements.

Allowed Class B foods include:

• Baked goods (breads, cookies, cakes, pastries)
• Jams, jellies, and preserves
• Granola and trail mixes
• Dried fruits and vegetables
• Honey and maple syrup
• Pickled vegetables
• Vinegars and flavored vinegars

Additional Class B requirements:

• Kitchen inspection by state health officials
• More detailed labeling requirements
• Wholesale customer record keeping
• Annual renewal process

The key difference is that inspection. While Class A producers self-certify their kitchen setup, Class B operations must pass a state inspection before receiving their license.

Step 1: Prepare Your Kitchen for Inspection

Before applying, your home kitchen needs to meet commercial standards. The state inspector will check for proper food safety practices, adequate storage, and appropriate equipment.

Kitchen preparation checklist:

• Install a three-compartment sink or have a plan for washing, rinsing, and sanitizing
• Ensure adequate refrigeration with thermometers
• Remove all non-food items from food prep areas
• Deep clean all surfaces, equipment, and storage areas
• Check that your hot water heater reaches at least 120°F
• Ensure proper lighting in all food prep areas
• Secure pest control measures

Common inspection failures include inadequate handwashing facilities and improper storage of cleaning supplies near food. Address these before scheduling your inspection.

Step 2: Complete the Application

New Hampshire requires a detailed application for Class B operations. You'll need to provide your kitchen layout, list of products you plan to make, and your food safety plan.

Required application materials:

• Completed Class B Cottage Food Operation Application
• Kitchen floor plan drawn to scale
• List of all products with recipes and ingredients
• Written food safety plan
• Proof of completion of food safety training
• Application fee (typically $100-150)

The food safety plan doesn't need to be complex, but it should cover how you'll prevent contamination, maintain proper temperatures, and handle ingredients safely. Think through your process from ingredient storage through final packaging.

Step 3: Schedule and Pass Inspection

Once your application is submitted, the New Hampshire Department of Health and Human Services will schedule an inspection. This typically happens within 2-4 weeks of application submission.

Inspection day preparation:

• Have all application materials available
• Kitchen should be clean and organized
• Be prepared to demonstrate your food handling processes
• Have thermometers, sanitizing solutions, and cleaning supplies visible
• Remove pets from the kitchen area during inspection

The inspector will check your physical setup, review your food safety plan, and may ask you to walk through your production process. Most inspections take 1-2 hours.

If you don't pass initially, you'll receive a list of required corrections and can schedule a re-inspection once issues are addressed.

Step 4: Understand Labeling Requirements

Class B operations have stricter labeling requirements than Class A, especially for wholesale products. Your labels must include specific information and meet certain formatting standards.

Required label information:

• Product name
• Ingredient list (in descending order by weight)
• Net weight or quantity
• "Made in New Hampshire" statement
• Your business name and address
• "Made in a home kitchen not inspected by the New Hampshire Department of Health and Human Services"
• Allergen warnings if applicable
• Production date or batch code

For wholesale customers, you may also need nutritional information depending on where your products are sold. Large retailers often require this even when not legally mandated.

Step 5: Set Up Wholesale Operations

With your Class B license in hand, you can start approaching wholesale customers. Success in wholesale requires different strategies than direct sales.

Wholesale preparation steps:

• Develop consistent production capacity
• Create wholesale pricing (typically 50% of retail)
• Design professional packaging for shelf display
• Prepare product information sheets for buyers
• Establish minimum order quantities
• Set up invoicing and payment terms

Start with small, local businesses that align with your products. A local coffee shop might be more receptive to artisan cookies than a large grocery chain. Build relationships before pitching products.

Step 6: Maintain Compliance

Class B licenses require ongoing compliance that goes beyond the initial approval. You'll need to maintain records, renew annually, and be prepared for periodic inspections.

Ongoing requirements:

• Keep detailed production and sales records
• Maintain customer list with contact information
• Track ingredient sources and lot numbers
• Document any customer complaints
• Complete annual renewal application
• Maintain food safety training certifications

New Hampshire may conduct follow-up inspections, especially if there are customer complaints or food safety concerns. Treat these as opportunities to demonstrate your commitment to safe practices.

Common Pitfalls to Avoid

Many new Class B producers underestimate the complexity of wholesale operations. Here are the most common mistakes:

Production scaling issues: Wholesale orders can be 10-20 times larger than direct sales. Make sure you can actually fulfill orders before accepting them.

Pricing problems: Many producers price wholesale products too low, forgetting to account for packaging, delivery, and the time invested in wholesale relationship building.

Cash flow challenges: Wholesale customers typically pay net 30, meaning you'll front ingredient costs and wait weeks for payment. Plan accordingly.

Inconsistent quality: Wholesale customers expect identical products every time. Develop standardized recipes and processes before taking on wholesale accounts.

New Hampshire Cottage Food Quick Reference

Class B License Benefits:

• Wholesale sales permitted
• Online sales allowed
• No sales cap
• Statewide distribution permitted

Key Requirements:

• State kitchen inspection required
• Enhanced labeling requirements
• Wholesale customer records
• Annual license renewal

Timeline:

• Application to inspection: 2-4 weeks
• Inspection to license: 1-2 weeks (if passed)
• Total process: 4-6 weeks typically

Next Steps

Starting a Class B cottage food business in New Hampshire opens doors to wholesale opportunities that most states don't allow. The inspection process might seem daunting, but it's straightforward if you prepare thoroughly.

Ready to connect with wholesale customers once you're licensed? Koti makes it easy for cottage food producers to reach both direct and wholesale buyers in their area. Create your profile at koti.market/sell to start building your customer base before your license arrives.

The Live Free or Die state truly lives up to its motto when it comes to cottage food freedom. Take advantage of New Hampshire's producer-friendly laws to build the food business you've been dreaming about.