Ready to Work with Food Wholesale Distributor Companies?

 

For people just starting out, selling farm fresh ingredients and specialty foods on a large-scale is confusing. The barriers of market entry alone can be hard to understand. This is especially the case when non-direct marketing channels are involved. For example, privately owned restaurants may not demand that their suppliers provide labels on all products whereas convenience stores, grocery chains and food wholesale distributors companies do. With that said, we’ve put together a short list of what many food wholesale distributors expect and included information on how suppliers can reach them when they are ready to do business:

In general, food wholesale distributors expect suppliers’ products to have labels and packaging that meet industry standards. They should also meet any certification requirements typically associated with applicable product categories and be covered under the supplier’s product liability insurance. In addition, the supplier must be poised to explain why his or her product is better or at least equal to the leading brand. On top of that, the company’s sales team must offer the distributor attractive, wholesale pricing. He or she has to be able to fulfill large orders on time, to exact specifications, and handle all related activities professionally too. By related activities, we are referring to tasks like invoicing and preparing accurate bills of laden.

If a supplier is able to meet all of those industry requirements, the next step is to invest in a top-notch directory. The directory should contain food wholesale distributor companies’ contact information in a workable, easily digestible form. That way, suppliers can begin prospecting and qualifying sales leads without having to go through the time and expense involved in building a lead pool from scratch. To learn more about the best food wholesale distributor company directories there are on the market today, please contact us. At Wholesale Grocers Directory, we have access to, and information on the people, programs and businesses that food sellers need to know.

Getting your Product in the Supermarket

 

As a manufacturer of food products selling through local convenience and grocery stores, your long term ultimate goal would be to see them in branded supermarkets as they can give you the right kind of exposure and guaranteed market which is difficult with small scale stores. You have to adopt flexible strategies and work with experienced experts that can tell you how to get products into c stores which are in supermarket range. There are two basic rules of supply to supermarkets and large retailers wherein you can sell under your brand or as unbranded products which will be sold by them under their own brand.

 

Supermarkets prefer unbranded products as it helps them boost their brand, but if you have a special brand the retailer would not be able to squeeze your margins and you can use this as a platform to increase market for your products.

 

You can use the assistance of convenience store brokers as they have long term relations with large supermarkets to get your products there or try to meet them yourself as a food product manufacturer to promote your brand. Once you get an appointment with a buyer of a supermarket chain present yourself as an organized and knowledgeable person with information about the potential of your product, the price you expect to get for it and how it will be broken up to meet profit margins of distributor and retailer.

 

Large retailers rarely accept unknown brands under their roof unless they are allowed to sell it as their products, but if you have a product that is recognized in local markets and recommended by food distributors and you offer them attractive discounts they will readily accept it on an experimental level.

 

Niche products can create the right impact if marketed and distributed to the right market and also bring large profits to its manufacturers. A recent study by National Association for Specialty Food Trade stated that in the forthcoming years this specialty food sector will account for $50 billion sales in forthcoming years. Large retailers can afford to offer better prices on specialty food products supplied by wholesale grocery distributors which can give greater exposure to your products than gourmet stores. While trying to get your product into supermarkets see if your existing production unit will be able to handle the large scale demand from them.

 

Food and beverage brands which today are famous in international markets have cleverly used the strategy of getting the right product at the right price in the right market at the right time making it an instant success.

 

Steps to get product into supermarkets – If you have a winning product which has been a hit in local markets and you are confident of meeting demand of large stores then you can try the following techniques to get them into supermarkets.

 

Carry out market research – Before marketing your product carry out a detailed market research to study existing competitors in the market and compare it with your product to find the differential factor that makes it special. Visit food product exhibitions and read up extensively on information online and offline to study how markets work and reasons behind failure of some good and bad brands. This information will help you to avoid problems that are likely to occur in beverage distribution and food distribution and help in timely delivery of your product to large retailers.

 

Enlist help of grocery distributors – When you are ready to reach out to big league retailers take the help of your distributors who have better knowledge of market demand and know which of the big retailers can stock your product and also provide the right kind of exposure to your brand. They will give unbiased feedback about products that have been popular in the past and how your product can be marketed and presented to large retailer for instant success. Super markets will not have the bandwidth to develop and market your product so you have to carry out branding, packaging by yourself so take the help of others before you.

 

CheckStand program – As a manufacturer you may not be keen about engaging in marketing side of your product and would like to hand over that responsibility to an expert. This daunting task can be performed by a professional group called CheckStand program which specializes in launching convenience products into small and large retailers. It offers manufacturers two programs depending on the product type to enter the retail industry and create a niche for itself in the competitive c-store product market.

 

The CSP works with manufacturers to design pack and present the product in an attractive manner and carry out test programs within all their affiliate stores. If the product gets a good response from customers then it is distributed through grocery store distributors across the nation or state depending on the manufacturing capacity of manufacturer.

 

Getting the logistics in place – If you are planning to get the large supermarkets to accept your products then get your logistic plan in your presentation. They will ask you to deliver a particular number of units at a particular store one day and deliver the next consignment of specific number of units across stores in a particular state which is not possible unless you have a distribution network in mind. Talk to wholesale food suppliers in your area which make deliveries to the supermarket for a clear knowledge about delivery schedules so you can work out a viable agreement with your client. Do not try to push capacity to breaking point and always have a backup plan in place wherever delivery schedules are concerned.

 

Manufacturers have a tendency to stop marketing and promoting their products once they reach supermarket shelves. But the real competition starts when the product is sitting on the shelves besides other market leaders are trying to attract attention of shoppers who are looking at it for the first time. Maintain constant interaction with your target customers and take their opinion to improve your product or add new ones to the brand. Offer attractive discounts to your distributors and retailers to sweeten the deal and retain your product on the store shelves.

Reference: http://www.checkstandprogram.com/news/getting-your-product-in-the-supermarket/

Infrastructure of Retail Food Distribution Network Within North America

 

Have you ever tried to consider how a fresh stack of vegetables and your favorite brand of groceries reach your nearest grocery store every week? Though the retail distribution network undergoes turmoil every few years to reduce operating costs and maintain growth of both small and large convenience store chains, warehouse retailers and single store grocery and convenience stores. In recent years retail distribution has witnessed a dramatic trend about growing control of retailers on supply chain which has helped to increase inventory turnover. Several large retailers are working with branded food producers to maintain direct store delivery which reduces number of distributors.

 

Supermarkets within North America have undergone a complete turnaround in the last couple of decades as regional and national supermarkets have moved from stocking only food products to complete convenience stores. Now wholesale food suppliers also distribute their products to major retailers which were not dealing in food like Walmart, 7-Eleven, Dollar Stores and 99 Cents only stores.

 

These chain stores now contribute nearly $ 381.7 million per annum to food retail sales and nearly 50 percent food distribution has shifted to alternative retail stores. Unfortunately this takeover of retail food industry by large convenience store chains has led to closure of traditional grocery stores located close to them due to lack of variety in their merchandise.

 

Besides Walmart Stores which is now among top 75 food retailers in North America with Kroger Co. and Costco Wholesale coming close in terms of turnover, other new retailers which have entered grocery product sales in a large way are Supervalu, Loblaw Cos. And Publix Super Markets to name a few. Wholesale grocery distributors have expanded their infrastructure to directly deliver produce to warehouses of large c-store chains and grocery store chains which take care of distribution and delivery to their stores themselves.

 

Grocery retailers are increasingly investing their products into increasing number of stores across the state and national boundaries instead of setting up distribution infrastructure. Retailers which have less infrastructure for food distribution can afford to give better prices to their customers in comparison to small retailers which have elaborate distribution chains.

 

Network of retail food infrastructure

 

Farmers markets – To connect farmers to consumers these markets are emerging as the best resource leading to growth by 54 percent since 2008 which has helped nearly 7000 farmers to connect with retailer chains and interact with consumers too. The USDA provides support to small and large farmers through several rural development programs to improve their produce and expand outreach to large markets.

 

Farmers are now able to interact with food processing firms to supply their output directly to them and also sell it in local markets which have been set up under community facilities grants. Food distributors also purchase their requirements on a regular basis and supply it to food service companies like restaurants, hospitals, schools and other food businesses. Regional farmers markets are being set up across rural farming areas which are close to high traffic areas to attract larger number of buyers.

 

Farmers’ cooperatives – To improve their bargaining power and grow their marketing strength farmers are setting up cooperatives which will also help them get better funding and grants from government agencies. Conservation and Development agencies which are working towards conservation of local industry and producers give financial assistance to these cooperatives to set up warehousing and cold storage facilities where their produce can be stored safely. Food wholesale suppliers also take delivery of their requirements from these cooperative warehouses and supply directly to small retailers, grocery store chains and also to food processing companies.

 

Centralized distribution and delivery – Under this system, manufacturers deliver their produce in large pallets to central warehouses located at key distribution centers which are then broken down into smaller pallets for distribution by vendors like convenience store brokers and grocery wholesale distributors across the nation. This system is ideal for manufacturers of processed food products and also for large farms making dairy products like cheese, yogurt, meat and butter. Food distribution networks in North America maintain their hubs around Los Angeles, Atlanta, Chicago and either New Jersey or Pennsylvania along with Toronto and Calgary.

 

Direct store delivery – Sometimes manufacturers of processed dairy products take the responsibility of delivering directly to convenience store chains through associations like Checkstand program which take the responsibility of launching products to customers along with delivery and sales. These distributors supply both regular and specialty foods to direct sales distribution network to major large and small retailers spread across the nation.

 

These channels help manufacturers bypass regular retailer and wholesaler distribution networks by moving goods directly from manufacturers’ warehouses to stores. Direct store delivery is profitable for perishable products which have short shelf life as products are in stores faster and there is nearly 10 percent reduction in costs.

 

Emerging trend in retail food distribution infrastructure

 

• Most top food retailers which had their own delivery networks to maintain quality and quantity of merchandise are now outsourcing their distributing needs to service providers like grocery store distributors and farmers’ cooperatives so they can concentrate on expanding number of stores in the region.

 

• Large supermarket chains like Target, Walmart, Costco and others have varied warehouses for food and non-food merchandise which also function as distribution centers for deliveries to their stores.

 

• With growing demand for online ordering and delivery of food products by restaurants, grocery stores are keen on having a similar facility of online food distributors which can take care of their needs at short notice.

 

• Mobile farmers markets which have cold storage facilities are going to areas where people do not have access to farmers markets and helping them gain access to fresh fruits and vegetables grown by local farmers in other parts of the state.

 

In recent years both traditional grocery retailers and grocery distribution centers have closed down due to competition from large retailers which have reduced distribution networks and are able to provide better prices to their buyers. But with improvement in supply chain technology and operational management some future ready supermarkets have managed to stay afloat.

 

 

Creative Marketing for Your Wholesale Business

 

There is no such thing as ‘enough’ marketing – especially in this day and age of Internet and the social media. Every business needs to market their products or services but if not done right; the efforts are wasted and this would not translate into new clients or more sales. Also, businesses need to utilize more ways to market their products other than the usual tried and tested ones. If this was not enough pressure to market right, then not only you need to tweak the tried and tested ones to suit your needs but you also have to come up with unique ideas to help build your business.

 

If you are a wholesaler, then you know by now how important it is to market your business. The wholesale business is one of the most competitive businesses out there and you can’t just sit easy after establishing a client base of a few retail stores and assuming that they would be your clients for life.

 

For a successful wholesale business, it is important that you come up with creative marketing ideas that will cost you the least amount of money and will increase your sales in the most effective manner.

 

Here are some creative ways to market a wholesale business.

 

Use your connections

 

One of the best ways to market a wholesale business is through your relationships with the manufacturers. It is in the interest of the manufacturer or the vendor to sell as many products they can sell. For this they rely on the wholesalers. A manufacturer will have many wholesale clients. The key is to become the preferred wholesaler to get the best promotional offers.

Promotions or seasonal discount offers are the best ways to market your business to the retail stores. The more you offer to the retailers, the better your chances of increasing sales and building a new client base.

 

But go a step further and don’t just depend on what the manufacturers offer you. If the manufacturer is launching a new brand of shampoo in the market, then ask for sample sachets for your retail clients. Or if the manufacturer is offering samples on its own accord then ask for promotional leaflets to distribute along with the samples or even without them.

 

Go an extra mile, if you think you have a winning product in hand. Ask your manufacturer if they can provide you with extra promotional material that might list the benefits of ingredients used in the shampoo. If the manufacturer is lagging behind on this or can’t supply you with this information, then have some printed at your expense and request your retail clients to display them in their stores along with the samples and the product.

 

Ask your manufacturer if they can provide you with special promotional products. Ask them if they can bundle together two products to promote one. For instance, maybe create a special promotional packaging for the new shampoo with an existing soap category.

Think of ways you can use your business relationship with your vendors and manufacturers to increase your sales.

 

Make a website

 

If you think a wholesale business doesn’t need a website, think again. All businesses irrespective of the size and type of business can benefit with the presence of a website. You don’t need to spend thousands of dollars to launch and maintain a website. You can easily have an easy to navigate and informative website by spending only a small sum and that also you can reap by the business it will bring you.

 

So how do you maximize marketing benefits through a website? You will of course have information on your inventory and business on your website along with all relevant contact information. Now you need some add-ons that can help you market your wholesale business in new ways.

 

Use the website to display offers and promotions and new product launches. Use a news feature where you can post about new happenings, new launches or any new information regarding your business. Use your website for extra information on products. To continue with the previous example of the new shampoo launch, you can use your website to advertise this product, to mention benefits of the ingredients and promotional offers.

 

Use your website to increase your social media presence. Create a business page on a social networking site and link this to your website where clients can connect with you. Provide existing and potential clients with informative content related to your stock. Use your social media page to conduct surveys on the state of the market or to ask your clients their reviews on new products or suggestions if any.

 

Start a weekly, monthly or bi-monthly newsletter to promote new products and to inform clients of seasonal promotions in advance. Your website will also help you get subscriptions for your newsletter.

 

Network and network some more

 

Attend trade association events. Participate in local business events and seminars. Be at the forefront. Make new friends. Talk about your business. Join online forums to exchange ideas and offer solutions.

Serve your community

 

Use local fairs or community events to promote your business but also offer something back to the community. You can have a promotional stall to promote the new shampoo and offer free samples to all those who visit your stall.

 

Sponsor a community event where you can have your business banner or distribute environment-friendly grocery bags with your logo to all the attendees. People are likely to use these and every time the bags are used, you have the opportunity for business promotion that you created from a single event and for one-time investment.

 

Offer your goods for free for community events. If you are in the food business, you can offer refreshments from your new cookie or juice brand for neighborhood soccer matches. Or you can distribute stationary for the neighborhood reading programs.

 

There are endless ways to promote a business while serving the community. It helps build business goodwill and can give you the satisfaction of being able to do some good.

 

Market right. Market smart.

Different Types of Food Distributors in the Retail Industry

 

Today convenience stores have grown beyond regular gas, cigarettes and beer stores to full-fledged multi-utility stores selling food products and a host of convenience items. Though both convenience stores and grocery stores have different business formats, both depend on middlemen like convenience store distributors and grocery wholesale distributors to carry out their business and replenish stocks. These distributors are specialized in carrying a wide assortment of products and are a vital link between manufacturers and retailers.

 

While they provide nationwide markets to manufacturers they also help retailers to find high demand products which will bring in more customers and will also provide high margins on sales.

 

The processing and distribution of food products is a specialized activity and requires inputs by specialists at various levels to make it fruitful to the producers. There are different levels within the food distribution chain like beverage distributors, wholesale food suppliers, wholesale grain distributors, vegetables and fruits distributors, dairy and meat products distributors. While large retailers like Wal-Mart, Safeway, Albertsons and others have their own distribution centers where manufacturers deliver their products, wholesale clubs like Sam’s and Costco pick up directly from wholesalers and manufacturers as it suits them.

 

The food distribution sector links food supply between producers, retailers and consumers. This complex sector includes supermarkets, food wholesale suppliers, grocery distributors, fruit and vegetable processing units, restaurant chains, ready to eat food manufacturers and distributors and food brokers. The food distribution industry comprises of several thousand food service establishments with sales of several billion every year which also provides employment to skilled and unskilled personnel in retail and distribution. A large part of food products are distributed through traditional food distributors channels to small and large convenience store chains, independent stores and grocers along with regular supplies to small and large restaurant chains.

Middlemen in food distribution channel

 

Food distributors – They purchase processed and packaged products directly from manufacturers and also from wholesale grocery distributors and either sell or distribute it to retailers like convenience stores and grocers or to food service companies and other distributors. Food distribution by this group is limited to a middleman’s role of picking up from one person and giving it to another direct seller or reseller.

 

Food brokers – These middlemen act as manufacturers’ representatives and facilitate relationship between retailers and manufacturers. Their main function is to help retailers find new products which will enhance their product line and assist manufacturers in finding suitable outlets to sell their products at a profit. As they do not take physical possession of the food products they do not have any ownership over their distribution and supply.

 

Grocery wholesale distributors – This group of middlemen are quite similar to distributors of other convenience products but as they do not interact with retailers they are not entitled to carry out stocking activities or provide advice on setting up retail shelves.

 

Food service distributors – (www.wholesalegrocersdirectory.com) These are specialized middlemen with detailed knowledge about markets and demand patterns which enables them to manage supply efficiently. They focus their expertise on servicing customers which are into food service like fast food restaurants, regular and boutique restaurants, ready to eat food manufacturers and service canteens in hospital and schools.

 

Food distribution pathway has several small diversions which help in fine-tuning the product and making it ideal for consumption by the customer. Different distribution paths are adopted by food distributors to get the products to retailers which are dependent on product type, market need, type of retailer and selling skills of manufacturer. While some prefer selling their limited products like fruits, vegetables, dairy products and other farm products in local farmers’ markets and also to brokers, few manufacturers fail to sell their products as they are unable to effectively promote them in the markets. Generally perishable foods like seafood, meats, dairy products along with fruits and vegetables have few middlemen between producer and retailer as compared to processed food products like jams, fruit juice, cheese, and other groceries.

 

Direct store distributors – Distributors which act as conduit between wholesalers and retailers like convenience stores and grocery stores are called as direct distributors as they have a special relationship with retailers and provide them advice about store layout and product positioning on shelves. These grocery distributors are middlemen who specialize in selling only grocery items and these grocery store distributors generally work with manufacturers or wholesalers to maintain quality of their products as ordered by retailers.

 

Grocery wholesale distributor – They have direct business relationship with several manufacturers as a whole as they buy goods in large bulk quantities which improve their buying power in the market. They have large warehouses where the goods are broken up into smaller pallets for distribution through brokers and agents and distributors. Wholesale distributors give discounts to distributors or retailers who buy large number of items from them and take the responsibility of picking up the goods from warehouses directly as this saves on distribution costs.

 

Online food distributors – With the boom in online sales of ready to eat food products through fast foods outlets and restaurants, even grocery chains and convenience stores are slowly exploring this purchase and sales option. Wholesale food distributors are increasing their online presence to help retailers and brokers to make their bulk purchases online so that their orders are replenished if their delivery trucks are in that neighborhood. Packaged food items can be sold on wholesale like soups, snacks, cookies, canned products, spices, seasonings, baby food, tea, dry groceries and pet food. Through purchase from online food distributors retailers are assured of low prices and are saved from waiting for regular distributor to make their deliveries.

 

In undeveloped markets food distribution is still carried out through traditional channels of multiple middlemen which lead to wastage and products being marked up at a high level when consumers buy them. These countries also lack proper transportation, storage, warehousing and processing facilities which lead to high inventories at the manufacturer level. The maturity in European, US markets has encouraged global retailers and distributors of food products to focus their attention on undeveloped markets in Asia, Australia and Russian Federation.