Going to market: local markets often first step for turning passion into business.

• Author: Romig, Suzie
• Position: SPECIALTY FOODS

SPECIALTY FOOD COMPANY owner Clay Meers had a hankering for hot sauce his whole life.

"I've been eating green chilies as long as I can remember," said Meers, who grew up in New Mexico and now calls Northern Colorado home.

When Meers and his wife, Tamara, were dating, she carried a bottle of hot sauce in her purse just in case. Now they're saucy business partners at Yampa Valley Sauce Co., based out of Steamboat Springs.

The Meers' path is a scenario often duplicated, said Dawn Thilmany, professor of agricultural economics at Colorado State University. A personal passion-turned-specialty-product is a pattern that new food producers in Colorado follow more than 80 percent of the time.

Meers started cooking to share with friends and family. Taste tests of his habanera pepper sauces earned rave reviews and prompted the business school graduate to create a business plan and launch production in larger quantities.

Meers initially used the restaurant kitchen where he worked as a full-time chef to concoct his sauces after his shift ended. He introduced two flavors at the Steamboat Farmers Market in summer 2013.

"We decided to first start with the farmers' market because it's very local and we could see one-on-one reaction with customers and meet with end-users," said Meers, who introduced a Habacado sauce with an avocado base and Strabenero with strawberries. He added a third with blueberries this year.

The company's sauces are available online at yvsauce.com.

FIRST STEP FOR VENDORS

"I get a lot of calls such as, 'I make this great salsa for friends and family, and I'm looking at opportunities to market it,'" said Wendy White, marketing specialist with the Colorado Department of Agriculture. "Farmers markets are a great place to start selling and getting a lot of customer research. It's a great place for vendors to sample products and try packaging and price points."

A common next step is to sell to hometown stores and attend food industry shows to make connections and find outlets.

"Growth depends on the goals and desires (of producers)," White said. Those aims range from direct sales to online to supplying to restaurants. "It depends on how far they want to go and what their business plan and strategy is all about."

Many successful food entrepreneurs say they struggle with the decision to expand and hire a co-packer to make their product.

Distinctive foods and beverages made by small, local manufactures have become big business, reaching more...