Food Business Manufacturers and Distributors (Part 3 of 3)
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Text Ms June at Doing the Do in Business
Manufacturing and distribution are the final steps that move a product from the kitchen to the customer at scale. Manufacturing may involve producing in a licensed commercial kitchen, co-packing with a third-party manufacturer, or scaling production in your own facility, while distributors serve as the bridge between manufacturers and retail or foodservice outlets. There are several types of distributors, including broadline distributors that service many categories, specialty distributors that focus on niche or ethnic foods, and direct-to-retailer distributors that work with smaller or regional brands. Distributors typically purchase products at wholesale pricing and resell them to retailers, working within margins that often range from 25–35%, while retailers may add an additional 40–50% markup, making it critical for food entrepreneurs to price products strategically. To successfully pitch to buyers, brands should prepare professional sales sheets that include product descriptions, wholesale pricing, case pack details, shelf life, UPC codes, certifications, and brand story, along with samples and proof of insurance. Wholesale and retail outlets fall into categories such as grocery chains (like Kroger or Publix), natural and specialty stores (Whole Foods, Sprouts), convenience stores (7-Eleven), club stores (Costco, Sam’s Club), foodservice distributors (Sysco, US Foods), and independent retailers, all of which require tailored approaches based on volume, pricing, and distribution expectations.
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