How to Start a Food & Beverage Manufacturing Business

Product Development 

• Review the Food and Beverage Startup Journey developed by Oregon Department of Agriculture. 

• Create a business plan that outlines your products and/or services, potential cost and revenue projection. There are templates from the Small Business Administration or SCORE for reference. 

• Check your name against the US Patent and Trademark website and Oregon Active Trademark. Search or hire an attorney to research current trademarks before settling on a business name.   

• Get Assistance: 

• Portland Small Business Development Center offers a Getting Your Recipe to Market course to help guide food & beverage startups. 

• Oregon State University College of Agricultural Sciences Food Innovation Center

• Explore our funding page to learn about what funding options are available.

Find a location 

Choose where you plan to manufacture: at home, at a commercial kitchen, use contract manufacturing, or lease/purchase a facility. 

• If from a home kitchen: you may be required to apply for a Domestic Home Kitchen license with the Oregon Department of Agriculture. Also check Oregon’s Cottage Food Exemption, which allows people to produce certain food items in their home kitchens and sell them retail to consumers, in-person or online, and wholesale through grocers and other businesses without having to obtain a food establishment license or undergo an inspection from the Oregon Department of Agriculture (ODA). 

• If from a commercial kitchen: you can find a licensed commercial kitchen for rent using the Kitchen Door. 

• If using a contract manufacturer (co-packer): use PNW Co-packer locator to look up co-packers. 

• If you are looking to operate from your own manufacturing facility, it may be required to be licensed and inspected by Oregon Department of Agriculture. Contact them at 503-986-4720 for more information. Before committing to a brick-and-mortar location, read the permitting guide here to learn about tips and what to look out for. Work with a tenant representation broker and a lawyer before you sign a lease. 

Set up your business 

• Register your business with the City of Portland. You may also be required to register with the State of Oregon and federally. Before registering, choose a legal structure and a name that fits your business. Learn more here. 

• Obtain insurance: Purchasing business insurance to help protect your business. Check out the Oregon Small Employer Guide to Insurance and Worksite Safety for more information. 

• Digital presence: Setting up a digital presence for your business helps generate buzz and sets the digital marketing foundation. Learn more about the basics here. 

• If you are going to hire employees, follow the steps outlined in the Oregon Employer’s Guide. 

Prepare your space if in a commercial facility 

• Building permits: review our permitting page to learn about what may be required, the cost, and the process. 

• Apply for the food safety license with the Oregon Department of Agriculture. 

• Garbage, recycling, and compost requirement: Learn more here about garbage, recycling, and compost requirements for businesses operating in a commercial space. Note that there are additional composting requirements depending on how much food waste you produce. Work with your landlord/property manager to set up these services. If you are setting up a new service, you can negotiate service level, frequency and cost. Rates are not set by the City of Portland.

• Fats, Oil and Grease control for food businesses: Food service establishments, such as restaurants, in Portland are required to have kitchen fixtures connected to grease interceptors. Learn more here at the Bureau of Environmental Services. 

• Sign and awning permit: learn more about when a sign permit is needed and how to apply here. Additionally, learn about the sign registration for portable signs and temporary signs. 

• Tree permit: check with City of Portland Urban Forestry to determine if your construction may require a tree permit and how to apply. 

• Get Assistance:  

• Schedule a free 15-minute appointment with Portland Permitting & Development for permit, code, and zoning questions 

• Explore our funding page to learn about what funding options are available.

• Incentives from Energy Trust of Oregon  

• Oregon Department of Agriculture offers the Machinery and Equipment Certification, which allows food processors to request a property tax exemption for qualified property machinery and equipment, and personal property. Learn more here.

• Businesses that make structural adaptations or other accommodations for employees or customers with disabilities may be eligible for tax credits and deductions. Learn more at the IRS webpage here. 

Food & alcohol licenses 

• Obtain the Food Handlers Card from the Multnomah County. 

• Learn about the food labeling requirements here under Resources.

• If you are going to manufacture alcoholic beverages, apply for the Annual Liquor License: learn about the steps to obtain the annual liquor license with the Oregon Liquor and Cannabis Commission (OLCC).  

• Employees who serve alcohol on the premise are required to obtain the Alcohol Service Permits. 

Open your business 

• Check the Manage Your Business page to learn about the license renewal and tax filing requirements. 

• Connect with the Prosper Portland Food & Beverage Manufacturing liaison to stay to update with the available support.

• Stay connected with Portland Office of Small Business via our newsletter.