A jam-making company is a business that produces and sells different types and flavors of jams. Aside from the fact that jams are spread on bread, jams can also be used with sweet and savory foods. Apricot and peach jam can be used as a glaze for pork or chicken.
Jam and Jelly production business is part of the global fruit and vegetable processing industry and the industry is made up of companies that are engaged in the processing and packaging of fresh fruit and vegetables into canned, bottled, preserved, frozen, dried (except sun-dried) or otherwise processed or preserved food products for human consumption.
The jam, jelly, and preserves market is projected to register a CAGR of 3.6% during the forecast period (2022 to 2026). In 2020, the production volume of jam and other fruit spreads made with apples amounted to roughly 60.4 thousand tons, a decrease compared to the previous year at 62.35 thousand tons.
Steps on How to Start a Jam Making Business
Table of Content
Conduct Market Research
Conducting market research before starting any business is key to the success of the business hence you must not open a jam-making business without conducting market research. This is because market research provides critical information about your market and your business landscape.
It can tell you how your business is perceived by the customers and clients you want to reach. It can help you determine who and where your customers are, and which customers are most likely to purchase jam from you. In essence, thorough market research will help you understand how your target customers think and adapt to their needs to turn them into regular customers and brand advocates.
a. Who is the Target Market for Jam-Making Business?
The target market for jam-making business cut across households and all players in the food preparation line of business such as grocery stores supermarkets, hotels, restaurants, bakeries, caterers, snacks manufacturers et al.
b. Is Jam Making Business a Profitable Business?
Yes, the jam-making business is very profitable. The industry is worth over $290 billion annually.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to jam-making business because jam-making is a niche idea in the global fruit and vegetable processing industry.
d. Who are the Major Competitors?
- Duerr & Sons Ltd.
- B&G Foods, Inc.
- The J.M. Smucker Company.
- Andros Group.
- Orkla ASA.
- The Kraft Heinz Company
- Campbell Soup Company
- General Mills Inc.
- McCormick & Company Inc.
- J. Heinz Company
- Unilever Group
- Crosse & Blackwell Food Production Company
- Gold Pure Food Products Co.
- Hirzel Canning Company & Farms
- Shan Food Industries
- Three Threes Condiments
- Wei-Chuan Food Corporation
- The Bega Co-operative Society Limited
- ConAgra Foods, Inc.
- Baxter and Sons
- Bonne Maman
- Wellness Foods
- Hershey Company
- M. Smucker
- Wilkin and Sons
- Nestle Ltd
- Premier Foods.
e. Are There County or State Regulations or Zoning Laws for Jam Making Business?
Yes, there are county and state regulations and zoning laws for jam-making businesses in the United States. Please note that the Food and Drug Administration (FDA) sets the federal Food Code, but it doesn’t oversee individual jam-making businesses. Instead, the various states use the Food Code as the basis for their food codes. They may adopt its rules, interpret them differently or set their own rules.
Please note that in the United States, you are required to follow your own state’s food service code. For example, all states (except for New Jersey) allow for the sale of foods produced under CFBs at farmer’s markets, stands, fairs, and festivals while some states also provide that they may be sold wholesale and online.
f. Is There a Franchise for Jam Making Business?
No, there are no franchise opportunities for jam-making business.
g. What Do You Need to Start a Jam Making Business?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- A Good Production facility
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- Equipment and Machines
- Supplies
- Employees
- Startup Capital
Memorable Jam Making Business Names
- Larry Watkins® Jam Production Company
- Queens Taste® Jam Production Company, LLC
- Nina Trent® Jam and Jelly Production Company, Inc.
- Knox Julia® Jam and Jelly Production Company, Inc.
- McKeon Brand® Jam and Jelly Production Company, Inc.
- Lara Brown™ Jam and Jelly Production Company, Inc.
- Perfect Spread© Jam Production Company, Inc.
- Meg™ Jam and Jelly Production Company, LLC
- Janet McKesson© Jam and Jelly Production Company, Inc.
- Belinda Pickford© Jam and Jelly production company, Inc.
- Cook Master® Jam Making Company, LLC
- Robert Dean® Jam Production Company, LLC
- The Peak™ Jam Production Company, LLC
- Juliet Carson© Jam Production Company, Inc.
- Fruit Pro® Jam Production Company, Inc.
- Cristo™ Jam Production Company, Inc.
- Al Lacteal™ Jam Production Company, Inc.
- Queensland© Jam Production Company, Inc.
- Jerry Smith® Jam Production Company, LLC
- Jolly Joe™ Jam Production Company, Inc.
Register Your Business
a. What Type of Business Structure is Best for Jam Making Business?
When it comes to starting a jam-making business, you have several options when it comes to the business structure, but the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits. Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Jam Making Business?
- General Business License
- Health and Safety Permit
- Food and Drinks Handlers’ License
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections
d. What Type of Certification is Needed to Open a Jam-Making Business?
You don’t need any certifications to open a jam-making business.
e. What Documents are Needed to Open a Jam-Making Business?
- DBA
- EIN
- Business and Liability Insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Online Terms of Use
- Online Privacy Policy Document
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a jam-making business, you will need to file for intellectual property protection or trademark to protect your formula and brand.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Jam Making Business?
The cost required to open a jam-making business may vary significantly. For example, you can start a homemade jam-making business with less than $5,000 and at the same time, you can start a standard jam-making business with a robust distribution network and with several employees on your payroll with over $1 million.
b. What are the Costs Involved in Starting a Jam Making Business?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $4,300.
- Marketing, Branding and Promotions – $3,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $175,000.
- Other start-up expenses include stationery ($500), and phone and utility deposits ($1,800).
- Operational Cost (salaries of employees, payments of bills et al) – $30,000
- Start-up Inventory – $100,000
- Store Equipment (cash register, security, ventilation, signage) – $1,750
- Production Machines and Equipment – $200,000
- Distribution Trucks – $$45,000
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
c. What Factors Determine the Cost of Opening a Jam-Making Business?
- The size of the jam-making business
- The choice of location
- The required licenses and permits
- The type of facility
- The cost of hiring and paying a business consultant and attorney
- The cost for branding, promotion, and marketing of the jam-making business
- The cost for furnishing and equipping the jam-making facility
- The cost of insurance policy covers
- The cost for registering the business
- Source of your supplies and ongoing expenses
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
- The cost for the grand opening of the jam-making business
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
No, it is not compulsory to build a new facility for your jam-making business, but if you have the required finance, it will pay you to build your own facility. The truth is that building or reconstructing a facility will help you come up with a facility that can fit into your overall business goals and vision.
e. What are the Ongoing Expenses of a Jam-Making Business?
- Raw material supplies (inventory expenses)
- Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
- Salaries of employees.
f. What is the Average Salary of your Staff?
- Chief Executive Officer – $75,000
- Production Manager – $45,000 Per Year
- Food Nutritionist – $42,000 Per Year
- Quality Control and Quality Assurance Manager – $42,000 Per Year
- Human Resource Manager – $40,000 Per Year
- Accountant – $35,630,000 Per Year
- Machine Operators – $28,000 Per Year
- Salesmen and Saleswomen (Distributors) – $26,000 Per Year
g. How Do You Get Funding to Start a Jam Making Business
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Jolly Joe® Jam Production Company, Inc. is a licensed global fruit and vegetable processing company with a bias in the production of jam and jelly that will be based in the outskirt of Overland Park, Kansas– United States.
We have done our detailed market research and feasibility studies and we were able to secure 25 hectares of land to start our jam production plant. Our jam production plant is going to be a standard commercial company hence it will be involved in producing jam for the United States market and other countries of the world.
b. Products
Jams and jellies from Pectin-rich fruits such as crabapples, sour apples, lemons, partially ripened oranges, Kumquat, pomegranate, cranberries, partially ripened grapes, damson plums, sour cherries, melons, and quinces. And also, from Pectin poor fruits such as peaches, strawberries, blueberries, peaches, pineapple, rhubarb, grapefruit, and guavas.
c. Mission Statement
Jolly Joe® Jam Production Company, Inc. is a registered jam production company that is committed to cultivating and processing fruits into jam for both the United States and the global market. We want our well–processed and well–packaged jams to flood the nooks and crannies of the United States and other countries of the world.
Vision Statement
Our vision is to ensure that one in ten Americans make use of our wide range of jams – we want to become a household name in the United States of America.
d. Goals and Objectives
The goals and objectives of a jam-making business are to produce different flavors and types of jam for consumers, the food industry, and retailers.
e. Organizational Structure
- Chief Executive Officer
- Production Manager
- Food Nutritionist
- Quality Control and Quality Assurance Manager
- Human Resource Manager
- Accountant
- Machine Operators
- Distributors
Marketing Plan
a. SWOT Analysis
Strength:
- Ideal location for a jam-making business
- Highly experienced and qualified employees and management
- Access to finance from business partners
- Access to ingredients and supplies.
- A reliable, clean, healthy, and efficient method of preparing and producing jam.
Weakness:
- Financial constraints may restrict the publicity and branding of the business
- A new business that will be competing with well-established jam production companies in the city.
- Inability to retain our highly experienced employees longer than we want during the teething stage of the business.
Opportunities:
- A rise in the number of food-related businesses within our market space
- The shifts in preferences of domestic consumers, increasing urbanization, rising incomes, demographic and social factors, and the changes in productivity of jams have brought about changes in the pattern of consumption and hence the demand for jams
- Online market, new services, new technology, and of course the opening of new markets.
Threat:
- The arrival of a new jam-making business within our market space
- Steady wage expenses
- Economic uncertainty
- Liability problems
- The U.S. Food and Drug Administration (FDA) could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.
b. How Do Jam making businesses Make Money?
Jam making businesses make money by selling different types of jams.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
d. Sales & Advertising Strategies
- Introduce your jam-making business by sending introductory letters alongside your brochure to households, retailers, and all players in the food preparation line of business such as hotels, restaurants, bakers, caterers, snacks manufacturers, and other key stakeholders throughout the city where your jam-making business is located.
- Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
- Create a basic website for your business to give your business an online presence
- Directly market your products.
- Engage in roadshows in targeted communities from time to time to promote your jam-making business
- Join local jam-making business associations for industry trends and tips
- Provide discount days for your customers
- Advertise our business in community-based newspapers, local TV and radio stations
- List your business on yellow pages ads (local directories)
- Encourage the use of word-of-mouth marketing (referrals)
Financial Projection
a. How Much Should You Charge for your Product/Service?
The price for jam depends on the brand and size, but statistic shows most store-bought brands cost between $3 and $4 a jar. On average, it costs about $1.75 to make a jar of jam or jelly at home. However, if you use fruit or berries from your yard the price is reduced to $1.35 per jar on average.
b. How Much Profit Do Jam Making Business Owners Make a Year?
It depends, but available reports show that on average a small to medium-sized jam-making business can earn anywhere from $75,000 to over $150,000 in a year.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the jam-making business
- The types of related products produced
- The location of the jam-making business is covering
- The management style of the jam-making business
- The business approach of the jam-making business
- The advertising and marketing strategies adopted by the jam-making business.
- The number of years the jam-making business is in business
d. What is the Profit Margin of a Jam-Making Business Product/Service?
The average jam production company sells their jams with a profit margin of 25 to 30 percent.
e. What is the Sales Forecast?
Below is the sales forecast for a jam-making business. It is based on the location of the business and other factors as it relates to such startups in the United States;
- First Fiscal Year: $250,000
- Second Fiscal Year: $350,000
- Third Fiscal Year: $600,000
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for Jam Making Business?
- The demography of the location especially as it relates to food-related businesses
- The demand for jams in the location
- The purchasing power of residents of the location
- Accessibility of the location
- The number of jam production companies, and retail outlets that sell jam in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Jam-Making Business?
- Overland Park, Kansas
- San Antonio, Texas
- Brooklyn Park, Minnesota
- Jefferson City, Missouri
- Huntsville, Alabama
- Fort Smith, Arkansas
- Cedar Rapids, Iowa
- Oklahoma City, Oklahoma
- Chagrin Falls, Ohio
- Idaho Falls, Idaho
c. What Equipment is Needed to Operate a Jam Making Business?
- Blenders
- Grinding machines
- Food Processor
- Tight-fitting lid jar
- Packaging and Labeling Machines
Hire Employees
When it comes to hiring employees for a standard jam-making business, you should make plans to hire a competent chief executive officer, production manager, food nutritionist, quality control and quality assurance manager, human resource manager, accountant, machine operators, and distributors. These are some of the key employees that you can work with.
Launch the Business Proper
In recent times, no jam-making business opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.
The bottom line is that with a proper launching of the jam-making business, you will officially inform people in your city that your jam-making business is open for business.
a. What Makes a Jam Making Business Successful?
- Choose a good location and production facility to launch the business
- Make sure you produce different flavors and types of jam (give your customers options)
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your jam-making business
- Leverage on all available online and offline platforms to promote your jam-making business
b. What Happens During a Typical Day at a Jam Making Business?
- The production facility is open for the day’s work
- Supplies and ingredients are ordered
- Workers go to work to start producing jams
- Deliveries of orders are made
- Stocks are taken and reports are written and submitted to superior officers
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Jam-Making Business?
- Excellent food production skills
- Excellent customer services skills
- Interpersonal skill
- Accounting and bookkeeping skills
- Business management skills
- Work experience in a food-related production company
- Experience in managing people
- Experience in business administration
- Experience in the global fruit and vegetable processing industry.