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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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Wholesalers and retailers play a critical role in helping food products reach the consumer, but they serve very different functions in the marketplace. Wholesalers purchase products in bulk and sell them to businesses such as grocery stores, restaurants, convenience stores, and institutions, allowing food brands to scale through higher volume and broader distribution. Retailers, on the other hand, sell products directly to the consumer through outlets such as independent grocers, specialty food shops, farmers markets, convenience stores, and large chains. To work with either channel, food businesses must carry product liability insurance, which protects the brand in the event of illness, contamination, or product-related claims and is often required by buyers before products can be placed on shelves. Understanding the differences between foodservice wholesalers, regional distributors, national distributors, specialty retailers, and big-box retailers helps food entrepreneurs choose the right path, set appropriate pricing, and enter the market with confidence and professionalism.

Up Next: Part 3 Food Manufacturing and Distribution

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Getting started in the food business begins with turning a passion into a plan. While a great recipe is important, success comes from understanding the business behind the food—how it’s produced, packaged, labeled, and legally sold. New food entrepreneurs must take time to learn about licensing, health department requirements, food safety, and compliance before entering the market. Just as important is knowing your target customer, testing your product, and pricing it correctly so it can grow beyond the kitchen. The food business is built step by step, and when you focus on preparation, consistency, and education from the start, you give your product the foundation it needs to move from a dream to a sustainable reality.

Up Next Part 2: Getting Your Food Items to Wholesaler and Retailers

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