The foundation of Colorado's cottage food rules — what shelf-stable means, how pH and water activity work, and the sales limits that apply to your products.
Under Colorado's Cottage Foods Act (C.R.S. § 25-4-1614), the key requirement is that your product must be "non-potentially hazardous" — meaning it does not require refrigeration to remain safe. In food science terms, these are foods that don't support the rapid growth of microorganisms that cause foodborne illness when stored at room temperature.
Two measurable properties determine whether a food is shelf-stable: pH (acidity) and water activity (how much available moisture the food contains). Most products approved under Colorado's cottage food rules naturally fall into safe ranges for both — but for some categories, particularly pickled products, you'll need to verify your pH.
Measures how acidic a food is on a scale of 0 to 14. Lower numbers mean more acidic. Colorado requires pickled products to have a finished equilibrium pH of 4.6 or below — the threshold below which Clostridium botulinum (the bacteria that causes botulism) cannot grow. Most vinegar-based pickles, fermented vegetables, and fruit preserves naturally fall below this level.
Measures the available moisture in a food on a scale of 0 to 1.0. Foods with water activity below 0.85 are generally considered shelf-stable because bacteria, yeasts, and molds can't grow effectively. Dry goods like cookies, crackers, dried fruit, candy, and jerky all have low water activity. Colorado's statute doesn't cite a specific aw number, but the "non-potentially hazardous" standard implicitly relies on it.
In plain English: If your food can sit on a kitchen counter at room temperature for days without spoiling or becoming unsafe — and it isn't meat, dairy, juice, or a fresh cut fruit/vegetable — it's very likely shelf-stable and eligible under Colorado's cottage food rules. When in doubt, CDPHE can help you confirm.
If you're making pickled fruits, pickled vegetables, kimchi, sauerkraut, relish, chutney, or fruit/vegetable vinegar, Colorado requires that the finished product reach an equilibrium pH of 4.6 or below. This isn't just a suggestion — it's a food safety requirement tied to preventing botulism, which can be fatal.
The good news: CDPHE offers free equilibrium pH testing for cottage food producers making these products. Each producer can submit up to 5 different products for free testing. Results are emailed directly to you and will confirm whether your recipe is safe or needs adjustment. Contact CDPHE at (303) 692-3645, option #2 or email cdphe_mfgfd@state.co.us to arrange testing. Funding for this program is limited and offered on a first-come, first-served basis.
Each distinct product or flavor counts separately. There is no total annual cap — only a per-product limit. Different flavors of the same product (e.g., strawberry jam vs. peach jam) are treated as separate products, each with its own $10,000 ceiling.
Colorado's per-product model is one of the most generous in the country. If you sell 8 flavors of jam, each at up to $10,000 in net revenue, your jam business alone could generate $80,000 annually — all under cottage food rules. The limit is based on net revenue (revenue minus the cost of goods), not gross sales, which makes it even more favorable.
You're responsible for tracking your own revenue per product. The state doesn't require you to report your sales, but you must stay within the limit. If you exceed $10,000 in net revenue on any single product, you'll need to register with CDPHE as a food manufacturer or obtain a retail food establishment license to continue selling that product.
Tax note: Your cottage food business is subject to Colorado income tax. You may also need to collect local sales tax depending on your jurisdiction — Colorado exempts food for home consumption from state sales tax, but local taxes vary. See our Licenses & Permits guide for details.
Colorado's cottage food rules require that all sales be direct to the informed end consumer. The product must be delivered directly from you (or your designated representative) to the person who will eat it. No wholesale, no resale, and no interstate commerce. Here's the breakdown:
| Sales Channel | Status | Details |
|---|---|---|
| In-Person / At Your Home | ✓ Allowed | Sell directly to customers who come to you Display required point-of-sale sign |
| Farmers Markets | ✓ Allowed | Sell at any Colorado farmers market You or a designated representative must be present |
| Community Events & Fairs | ✓ Allowed | Festivals, craft fairs, pop-up events May need special event sales tax form (DR 0589) |
| Online Sales (Within CO) | ✓ Allowed | Your website, social media, SellFood storefront Delivery method agreed between you and buyer — must stay in-state |
| In-State Shipping | ✓ Allowed | USPS, UPS, FedEx, or personal delivery within Colorado No interstate shipping permitted |
| Storefront / Consignment | ✓ Conditional | Allowed only if store employees act as your designated representative They must know the product and answer consumer questions |
| Restaurants & Grocery Stores | ✗ Prohibited | Cannot sell to licensed food establishments Not an approved source for retail food establishments |
| Wholesale / Resale | ✗ Prohibited | Products cannot be resold by a third party Direct-to-consumer only |
| Interstate / Out-of-State | ✗ Prohibited | All sales must occur within Colorado Federal FDA rules apply to interstate commerce |
| Catering | ✗ Prohibited | Products must be sold to the end consumer, not prepared for events Catering requires a separate license |
Multiple locations, same day: Yes — you can sell at multiple locations and events on the same day. You or your designated representative can deliver products directly to informed end consumers at any number of venues simultaneously.
Colorado's Cottage Foods Act doesn't mandate specific storage protocols the way a commercial kitchen license would — there's no inspection to verify compliance. However, CDPHE strongly recommends following standard food safety practices to protect your customers and your business. The food safety training you're required to complete covers these principles in detail.
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