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The Label and the Code

5 min read · Rules, Labels, and Pennies

Lesson video in production

The full lesson text below is complete — the video version lands with launch.

The label is the only part of your business every customer, inspector, buyer, and attorney sees. It is also the cheapest place to fail an inspection, because label violations are visible without opening the jar. Design it twice: once for the law, once for the shelf, in that order. This lesson is the law half; the shelf half comes later in the course.

Five elements must appear on a retail food package under federal labeling rules, and your state may add one or two. The statement of identity, the common name of the food, in a reasonably prominent type size. The net weight in both metric and US units, placed in the bottom thirty percent of the front panel. The ingredient list, in descending order by weight, with sub-ingredients declared in parentheses: soy sauce is not an ingredient, soybeans, wheat, salt, and water are. The allergen declaration, the nine major allergens named in plain language, either in the list or in a separate "contains" statement. And the responsible party: your business name and address, so a complaint has somewhere to land. Add your lot code and best-by date to that discipline, as "The Legal Kitchen" established: the code ties the unit back to a batch record when something goes wrong.

The net weight rule has a direction, and getting it backwards is fraud. Weights and measures enforcement treats selling fourteen ounces as a pound as short-weighting, a deceptive-practices violation, while overfilling is your cost and your problem alone. So when your fill is inconsistent, aim high. One operator filling jars by eye ran about five percent variance and overfilled deliberately for exactly this reason. If your product settles after packing, like a sauce cooling in a jar, weigh it at its final state, not at filling.

Nutrition facts are the panel beginners fear, and the fear is mostly misplaced at small scale, because two separate federal exemptions cover a first-year brand. The first is the direct-sales exemption, and it asks nothing but eligibility: if you sell to consumers yourself and your total annual sales run under five hundred thousand dollars, or your sales of food to consumers run under fifty thousand, no panel is required and no notice is filed with anyone. The second is the low-volume product exemption, and it works by headcount and units: average fewer than one hundred full-time-equivalent employees and sell fewer than one hundred thousand units of the product in a year, and the panel is exempt, but this lane comes with a filing duty most guides skip. You submit a short notice to the FDA annually, before the exemption period begins, unless you also run fewer than ten employees, are not an importer, and stay under ten thousand units a year, in which case the notice is waived there too. A solo founder under ten thousand units qualifies twice over and files nothing. Both exemptions die the same death: making any nutrient claim. The moment your label or marketing says high protein, low sugar, or prints any nutrition information, you owe the full panel regardless of volume. Plenty of brands stamp the panel anyway because retailers prefer it, and that is a market choice, not a legal one at your size.

When you do want the panel, price it by method. Database analysis, where a service computes values from ingredient data, costs tens of dollars per label through services like ReciPal, and full laboratory analysis of a single product starts around two hundred forty dollars at budget labs and can run past seventeen hundred at full-service ones. Database is acceptable for most simple products; go lab when the product is fried, fermented, fortified, or otherwise poorly modeled.

Two practical notes before you send anything to a printer. First, print labels yourself in the beginning: a thermal or laser setup lets you change the best-by date and lot code per batch without committing to fifty thousand pre-printed labels for a recipe you may revise. Second, when a store or state inspector reviews your label, and several states will do this for free through their agriculture department, take the free review before the first print run. Fixing a missing sub-ingredient costs an email before launch and a reprint after.

That is the whole legal label. What remains is the question the label exists to serve: what has to be true about your costs for this package to make money at each price it will ever sell for. That question gets its own full treatment later in the course, and it is the one readers say they wish they had done before anything else.

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