Success StoryIt’s a Marshmallow World for New Home-based Business



It’s a Marshmallow World for New Home-based Business

Author: Diane Mason

Planning Unit: Boone County CES

Major Program: Nutrition and Food Systems General

Plan of Work: Financial Fitness for Adults (FCS)

Outcome: Long-Term Outcome

In 2018 the Kentucky legislature passed House Bill 263 with modifications through House Bill 468 passed in 2019, allowing individuals to sell foods as a “home-based processor.” In general, this designation allows individuals to produce specific non-potentially hazardous foods in their homes to sell at farmers markets, festivals and fairs, or from their home resulting in no more than $60,000 a year in income. 

Marshmallows, in general, are “on-trend” with their popularity growing in the United States. Homemade and gourmet marshmallows tend to be nothing like those produced in the commercial world.

A virtual hands-on class on making marshmallows from scratch was offered as a way for individuals to make gifts for friends and families. Approximately 15 adult men and women from the general public participated in the program. One participant took the lesson and opened a home-based business selling homemade gourmet marshmallows at local farmers markets and craft shows. They are also marketing their products for weddings, children’s parties, and treats for various  events. They currently have 12 marshmallow flavors and products in their arsenal. Additionally, they use their homemade marshmallows in crispy treats, allowing for a value added option along with enabling customers to know what is in their products. 

As a result of the class and their home-based business operation the family reports that $600 in credit card debt has been paid. The initial investment in the business has been paid, and the marshmallow sales have saved the family from falling behind on monthly bills. Marshmallows have provided a valuable second income source. They are planning to stick with their goal of growing the home-based business into a commercial operation that will allow for online orders and shipping to locations beyond their current reach. 


Sample of homemade gourmet marshmallows

Submitted 10/8/2023






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