Special Categories in Arizona

Arizona is one of the few states that allows meat and poultry products under its cottage food program — but with significant conditions. The 2024 expansion (HB 2042) opened this door while keeping federal food safety requirements firmly in place.

What's allowed under cottage food: Meat and meat by-products from a federally inspected (USDA) source can be used as ingredients in cottage food products. For example, you can buy USDA-inspected ground beef and use it in tamales, empanadas, or meat pies sold under your cottage food registration.

Poultry has two paths:

1. Inspected-source poultry: Poultry from a USDA-inspected source can be used as an ingredient in cottage food products — similar to meat.

2. 1,000-bird exemption: If you raise your own birds and slaughter fewer than 1,000 per calendar year, you can sell poultry products directly to consumers under the federal exemption at 9 CFR § 381.10(c). This is a unique opportunity for small-scale poultry farmers in Arizona.

Critical restrictions: All meat and poultry cottage food products must be sold directly to the consumer. You can sell online, but you must deliver in person — no third-party delivery platforms (DoorDash, UberEats, etc.), no shipping via carriers, and no placement in retail stores.

What's NOT allowed: Uninspected meat or poultry (e.g., you cannot slaughter your own cattle and sell the meat under cottage food). Fish and shellfish products are entirely excluded from Arizona's cottage food program.

Arizona's 2024 expansion allows dairy products — including milk, cheese, butter, and ice cream — to be made and sold under the cottage food program. This is uncommon among state programs and represents a significant opportunity for artisan dairy makers.

Key restriction: Dairy products can only be sold directly to the consumer, with in-person delivery. You can take orders online, but the physical delivery must happen person-to-person. No third-party delivery platforms, no shipping, and no retail store placement.

Raw milk prohibition: Unpasteurized (raw) milk and products made from raw milk are explicitly prohibited under Arizona's cottage food program. All dairy cottage food must use pasteurized milk as a starting ingredient. Raw milk sales in Arizona are governed by separate regulations under A.R.S. § 3-606.

Eggs, milk, and dairy used as ingredients in baked goods (e.g., butter in cookies, milk in bread dough) are allowed without the direct-sale restriction — the restriction applies to standalone dairy products.

Alcoholic beverages and foods containing alcohol intended to intoxicate are explicitly prohibited under Arizona's cottage food program (A.R.S. § 36-931). You cannot make and sell beer, wine, spirits, hard cider, hard seltzer, or any food product with intoxicating alcohol content under your cottage food registration.

Separate licensing required: If you want to produce and sell alcoholic beverages in Arizona, you need a license from the Arizona Department of Liquor Licenses and Control. The main license types are:

Alcohol licensing involves significant investment — facility requirements, federal TTB (Alcohol and Tobacco Tax and Trade Bureau) registration, and compliance with both state and federal regulations. This is a fundamentally different business than cottage food and should be treated as a separate venture.

Note on cooking with alcohol: Using small amounts of alcohol as a flavoring ingredient (e.g., vanilla extract, rum flavoring in a cake) is generally acceptable as long as the finished product is not intended to intoxicate. The line can be gray — if you're unsure, contact ADHS.

Non-alcoholic fermented foods — like sauerkraut, kimchi, pickles, and fermented hot sauce — are allowed under Arizona's cottage food program. Shelf-stable versions can be sold through all channels; TCS versions must follow temperature control rules.

Kombucha is a special case. It's a fermented tea that naturally produces trace amounts of alcohol during fermentation. At the federal level, beverages with less than 0.5% ABV are considered non-alcoholic. However, Arizona's cottage food statute prohibits alcoholic beverages and foods containing alcohol, and ADHS has not issued specific guidance on kombucha.

If your kombucha consistently stays below 0.5% ABV, it may be possible to sell under the cottage food program. If it exceeds 0.5% ABV at any point (which can happen during shipping, storage, or secondary fermentation), it could be classified as an alcoholic beverage — requiring a liquor license and federal TTB registration.

Our advice: If you want to sell kombucha, contact ADHS before investing in production. Explain your product, fermentation process, and expected ABV levels. Get their guidance in writing if possible.

Cannabis-infused and marijuana-infused products are explicitly prohibited under Arizona's cottage food program. A.R.S. § 36-932 states that a cottage food product may not include marijuana or its by-products.

Arizona's cannabis market: Arizona legalized recreational marijuana in 2020 (Proposition 207). Licensed dispensaries can sell cannabis-infused edibles, but production must occur in licensed facilities that meet strict safety, testing, and packaging requirements regulated by the Arizona Department of Health Services, Bureau of Marijuana Licensing.

CBD edibles: The legal landscape for CBD (cannabidiol) in food products is complex. The FDA has not approved CBD as a food additive, and Arizona follows federal guidance. While CBD products derived from hemp (with less than 0.3% THC) are sold widely in Arizona, manufacturing CBD edibles for sale requires compliance with both state and federal regulations that fall outside the cottage food framework.

Acidified foods (like pickled vegetables, salsa, and hot sauce that use added vinegar or citric acid to achieve a safe pH) and low-acid canned foods (like canned beans, soups, or vegetables) occupy a unique regulatory space.

Under cottage food: Shelf-stable acidified foods — salsas, pickles, fermented vegetables, hot sauces — are allowed under Arizona's cottage food program, provided they meet the pH threshold (4.6 or below for acidified foods) and are properly processed. ADHS includes these in its approved foods categories.

Federal FDA considerations: At the federal level, the FDA requires commercial processors of acidified foods and low-acid canned foods (LACF) to register their facility and file scheduled processes under 21 CFR Parts 113 and 114. However, these requirements typically apply to interstate commerce and facilities that are "commercial processors" — cottage food operations selling only within Arizona under the state's exemption are generally not subject to FDA facility registration.

If you want to scale: If you outgrow your cottage food operation and start producing acidified foods in a commercial kitchen for wider distribution, you would need to comply with FDA acidified food regulations, including Better Process Control School training and scheduled process filing. This is a more advanced step for sellers who have built demand under their cottage food registration and are ready to transition to a licensed food manufacturing operation.

Fish and shellfish products are completely excluded from Arizona's cottage food program. This includes all fresh, frozen, smoked, cured, and canned fish and shellfish — regardless of whether the product comes from an inspected source.

If you want to produce and sell fish or shellfish products in Arizona, you would need to operate from a licensed commercial kitchen under the oversight of the Arizona Department of Health Services (for retail food operations) and comply with applicable FDA seafood HACCP regulations (21 CFR Part 123). This is a significantly more complex regulatory path than cottage food.

Pet food and dog treats cannot be sold under Arizona's cottage food program. Animal food is classified as commercial feed and regulated by the Arizona Department of Agriculture — not ADHS.

If you want to produce and sell pet treats commercially in Arizona, you would need to register with the Arizona Department of Agriculture as a commercial feed manufacturer and comply with AAFCO (Association of American Feed Control Officials) labeling and ingredient standards.