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NFT: Anyone have any experience in the food distribution industry

bradshaw44 : 6/27/2015 9:59 am
?

My family has a gluten free commercial bakery in North Carolina. It's growing pretty quickly in the southern states, simply because that's where they are based. They are currently with a couple distributors that are mainly focused on the southern/midwest states. Those distributors picked them up because their clients had tried the product and personally requested the distributors carried their product. As far as them reaching out to a distributor with success, not much luck.

The pizza crust was picked up by a northern based bread distributor, but that's the only product so far. Every time they reach out to northern or national distributor it's usually unfruitful or an annoying game of back and forth.

Anyone ever deal with distributors and have any suggestions of how to go about being more successful when reaching out to them? Or any suggestions on developing our own network into territories we aren't currently located?

Thanks for any help!
My brother-in-law suffers from Gluten issues.  
wgenesis123 : 6/27/2015 1:55 pm : link
My sister has to shop at Weis Markets to get food that he can eat. I believe it not only has to be gluten free but also wheat free. Anyway since Weis markets does carry such foods, perhaps that would be one place you could take a look at to see if you can market your product.
Should have mentioned I am in Eastern PA.  
wgenesis123 : 6/27/2015 1:57 pm : link
north of Philly.
BlueLou  
BigBlueDownTheShore : 6/27/2015 2:12 pm : link
Is the guy you need to talk to as he has distributed wine and vinegar. I know it's not exactly the same, but it's in the same ballpark.
RE: Should have mentioned I am in Eastern PA.  
bradshaw44 : 6/27/2015 3:21 pm : link
In comment 12346072 wgenesis123 said:
Quote:
north of Philly.


Thanks, wgen. I'll see what I can dig up with them. They are already in all the Food Lions and Lows Foods in NC, so they do well in markets. Thanks again for the tip.
RE: BlueLou  
bradshaw44 : 6/27/2015 3:23 pm : link
In comment 12346084 BigBlueDownTheShore said:
Quote:
Is the guy you need to talk to as he has distributed wine and vinegar. I know it's not exactly the same, but it's in the same ballpark.


The thought crossed my mind as I knew he was in a distribution line of work with his wine. I was hoping he might pop on his thread. Thanks
Bradshaw I really can't help with specific advice,  
BlueLou : 6/27/2015 4:53 pm : link
as wine and what's more Kosher Wine is a niche product and in fact the entire market for it is a niche market...

I do think it may be worth your family's time to reach out and market to specific store chains, ones like Whole Foods that are national (aren't they?). I would not merely try to sell to them, I would ask them for advice for your national strategy. You might catch someone in the store management chain who could give you really good ideas how to proceed. I would also contact other specialty food producers who are NOT competitors for ideas - like Boboli Pizza Crusts, for example. Good luck!
I've heard several sales pros  
mrvax : 6/27/2015 5:28 pm : link
claim the North-East is always the hardest to do business in regardless of the product. It's probably due to keen competition. Buyers may have just too much to sort through to take the proper time to look into all comers.

I might suggest an upper tier supermarket chain here in Florida that has stores in 2 other states. Try to contact "Publix Supermarkets." If you can crack Publix, a lot of patrons will return North East in the warmer months and may desire to continue to use your bakery.

Oddly, I really never heard of gluten allergies until a friend had it. It seems like a serious problem because gluten seems to be in about 80% of all food products!


RE: Bradshaw I really can't help with specific advice,  
bradshaw44 : 6/27/2015 5:35 pm : link
In comment 12346197 BlueLou said:
Quote:
as wine and what's more Kosher Wine is a niche product and in fact the entire market for it is a niche market...

I do think it may be worth your family's time to reach out and market to specific store chains, ones like Whole Foods that are national (aren't they?). I would not merely try to sell to them, I would ask them for advice for your national strategy. You might catch someone in the store management chain who could give you really good ideas how to proceed. I would also contact other specialty food producers who are NOT competitors for ideas - like Boboli Pizza Crusts, for example. Good luck!


Thanks for the advice Lou, much appreciated. I will definitely pass the suggestions on. And thanks for taking the time to chime in!
RE: I've heard several sales pros  
bradshaw44 : 6/27/2015 5:45 pm : link
In comment 12346226 mrvax said:
Quote:
claim the North-East is always the hardest to do business in regardless of the product. It's probably due to keen competition. Buyers may have just too much to sort through to take the proper time to look into all comers.

I might suggest an upper tier supermarket chain here in Florida that has stores in 2 other states. Try to contact "Publix Supermarkets." If you can crack Publix, a lot of patrons will return North East in the warmer months and may desire to continue to use your bakery.

Oddly, I really never heard of gluten allergies until a friend had it. It seems like a serious problem because gluten seems to be in about 80% of all food products!



Thanks, mrvax! I'll pass the tip on to them.

I actually hadn't heard anything about gluten allergies or even knew what gluten was until my mom was diagnosed with celiacs by her doctor about 7 years ago. Long story short my dad isn't allergic and he got sick of eating all of her gross gluten free products so they started making their own. Being from Greece and Italy, they don't like crappy food. All their products have the taste and texture of regular food. It's their main sales point and it's why it's spread so well. It dominates all the food expos versus the other competition. Unfortunately they aren't big enough too compete nationally with the likes of Udis or Glutinos. Which if you've had them, suck, but are the biggest brands.

Thanks again!
Bradshaw has your family ever considered contracting with a  
Watson : 6/27/2015 6:17 pm : link
food broker. They represent various brands; they take the place of in-house marketing & sales staff. They already have relationships with merchandising departments & buyers. Obviously they get % but it may allow your family to focus on what you do best.

You may already know this, the supermarket chains will be looking for promo $$, new item fees, sloting fees etc.

Wish you and your family much success!
RE: Bradshaw has your family ever considered contracting with a  
bradshaw44 : 6/27/2015 7:12 pm : link
In comment 12346278 Watson said:
Quote:
food broker. They represent various brands; they take the place of in-house marketing & sales staff. They already have relationships with merchandising departments & buyers. Obviously they get % but it may allow your family to focus on what you do best.

You may already know this, the supermarket chains will be looking for promo $$, new item fees, sloting fees etc.

Wish you and your family much success!


Thanks, Watson. My father isn't thrilled with the brokers.

Food Lion and Lowes have been great with us. They work on a consignment basis but have their staff make freezer space in their warehouse for us. Which limits spoilage. Other chains try and make you pay the fees you mentioned which they aren't in a position to do at the moment.

Thanks for the info!
A few years back when I was still in trucking, one good customer  
wgenesis123 : 6/27/2015 7:28 pm : link
was Food Lion, in Green Castle, PA. Thats a distribution center you may already have connections too. Also I don't know if anything I have said is helpfull, but you seem to have the good sense to be gratefull to anyone who makes an effort. I respect you for that.
Wgen  
bradshaw44 : 6/27/2015 7:55 pm : link
We have a really good relationship with Food Lion. Over time they plan to put us in all their chains which expand down to the Caribbean and they aren't just Food Lion, there are various other markets they own.

And I'm always grateful to anyone that's willing to help another person (stranger at that). Especially when they are taking time out of their day to do so.

And thanks for the info and appreciation!
If that's the type of relationship you have with Food Lyon & Lowes  
Watson : 6/27/2015 8:38 pm : link
that's terrific! It's the way to go.

I threw in the comment about fees (in the trade called allowances) because that's what chains will be looking for & it doesn't buy you any loyalty. They will be looking for $$ every year. So you have to be prepared. Keep in mind that they will also not pay you on time unless your a big player:)

Sounds like Food Lyon could be a big break for you. So again Best Wishes.

Being a GF person, I've seen a lot of changes in the GF  
buford : 6/28/2015 7:16 am : link
foods carried in stores. First there were none (unless you went to Whole Foods or other specialty stores) then there were some, now a whole section. Yes, Udis and Glutino dominate the selections. I try not to eat a lot of GF 'junk' food, but I like to get the GF Pasta and bread so I can have a normal sandwich and not a lettuce/bread sandwich once in a while.

What kind of foods does your company make? I have used the GF pizza crusts a few times and they were pretty good.
RE: If that's the type of relationship you have with Food Lyon & Lowes  
bradshaw44 : 6/28/2015 9:24 am : link
In comment 12346344 Watson said:
Quote:
that's terrific! It's the way to go.

I threw in the comment about fees (in the trade called allowances) because that's what chains will be looking for & it doesn't buy you any loyalty. They will be looking for $$ every year. So you have to be prepared. Keep in mind that they will also not pay you on time unless your a big player:)

Sounds like Food Lyon could be a big break for you. So again Best Wishes.


Thanks, Watson. We have definitely noticed most grocery stores want you to give them the moon ha. It's definitely a difficult industry to work in. Hopefully they can get the business to the point of being a big player and then we can start fleecing the grocery stores:). Thanks again for the well wishes and suggestions!
Buford  
bradshaw44 : 6/28/2015 9:29 am : link
They make a pretty decent assortment of goods. White bread, pizza crust, Carolina sandwich rolls, hamburger buns, croutons and bread crumbs. They also sell pancake mix, and waffle mix. Those are the non sweets items I can think of off he top of my head. Then they have an assortment of cupcakes, cakes, cookies, brownies and loafs. Those are extremely popular with the restaurants.

Which brand is your favorite for bread products?
I like Rudy's cinnamon raisin bread  
buford : 6/28/2015 10:21 am : link
the white breads aren't that good. I am trying a new one that is not frozen is All but Gluten. It's ok.

Udi's has just come out with some frozen lunch/dinners which are pretty good. I don't really like eating processed foods, but sometimes you need something quick.

There used to be a Foodlion nearby but I think it closed. Do you sell your stuff in Kroger or Publix?
We aren't in Publix or Kroger yet  
bradshaw44 : 6/28/2015 1:03 pm : link
I think we may reach out to them after mrvax recommended them above. It's tough to get in with the grocery chains that aren't in our market. Which is kind of why I was reaching out to everyone. If we can crack that market I'll post it here.
Bradshaw  
EricJ : 6/28/2015 9:15 pm : link
I have been in the foodservice business my entire career and sell to ALL of the tier 1 and tier 2 foodservice distributors. I also sell to DOT Foods who is the largest re-distributor in the US.

I fully understand what is happening in your family business. This is, and will be a tremendous uphill climb because in general, distributors DO NOT want to stock new items and bring on new lines without a demand from their customers.

The limited success you have seen so far by forcing the product into the distributor by the operators who want it... is the way to do it right now.

However, what you need to do is get to the multi unit operators. You have Aramark, Sodexo, Compass/Foodbuy, Premier, etc but they are the monsters that will be extremely difficult to put a program together with. UNLESS the product you are selling is unique and they do not already have a contract with another company making a similar product.

So, I would target some of the regional chain accounts that can potentially force distribution into a group of distributors for you. Examples are Guest Services, Brock & Co, Culinart, Unidine, etc etc

There is however one other way to get traction. Produce a private label version of your product for Sysco or USF under their label. Then, they will most likely force distribution into all of their OPCO's/Divisions.

A food broker (mentioned by someone earlier) in theory is an option. I use brokers too. However, with no sales base a broker simply will not spend any time selling your product. They will focus on the products that are paying high commission dollars. I am selling for a very well known food company and still have to fight for my fair share of their selling time.

I would be willing to speak live about this. Just send me a PM.
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