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Selling it

Jam, jelly or preserve, and what to call it if it is none of them

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These are defined names, not descriptions. If the product meets the standard you may use them; if it does not, extension guidance is explicit that it must be informatively labeled so as not to claim to be a standard jam or jelly, and gives the example: Strawberry Fruit Spread.

What the three names mean

Two of these are the same standard and one is different, which is the opposite of what the words suggest in ordinary speech. Getting this straight matters because the name on the front of the jar is a claim about what is inside it.

NameWhat it is made fromWhere defined
JellyFruit juice, so no fruit solids21 CFR 150.140
Jam or preserveFruit, crushed or in pieces21 CFR 150.160
Fruit butterFruit pulp, cooked down21 CFR 150 subpart B

Jam and preserve are the same standard. The difference between them in practice is whether the fruit holds its shape, and that is a craft distinction rather than a legal one.

If you miss the standard

A product outside the standard is still sellable and still good. What changes is what you may call it, and there are accepted names for exactly this situation.

You have still made a product and you may still sell it. What you may not do is call it a jam. The replacement name has to inform rather than evade, which is why "fruit spread" works and an invented word does not. FDA has a compliance policy guide covering nonstandardized jellies for exactly this situation.

The one qualifier that is allowed

Extension guidance states that the term "Reduced Sugar" can be applied before the term "Jam" or "Jelly" on the label. That is a specific permitted qualifier, not a general license to modify the standard name.

What usually causes the miss

One cause accounts for most of them and it is almost always introduced for a reason that seemed like an improvement at the time. Reducing the sugar is the usual one, and it moves the product out of the standard by moving the ratio rather than by anything to do with taste.

Three things, in this order: not enough fruit against the sweetener, not enough concentration in the finished product, or an ingredient outside the permitted list. Those are on the ratio, 65 percent and what else the standard lets you put in.

References

21 CFR 150.160, Fruit preserves and jams. Code of Federal Regulations, Title 21. law.cornell.edu
21 CFR 150.140, Fruit jelly. Code of Federal Regulations, Title 21. law.cornell.edu
US Food and Drug Administration. Compliance Policy Guide Sec. 550.475, Jellies, Nonstandardized. fda.gov
Penn State Extension. Food for Profit: Commercial Production of Jams, Jellies and Fruit Butters. extension.psu.edu
Written from federal regulation and published extension guidance, not from a laboratory. A standard of identity is a federal floor and your state adds to it. Anything here is a starting point for a conversation with your state department of agriculture, not a determination that you comply.