There two ways to distribute a product through associated wholesalers and retailers structures. This is true for wide range of consumer products, including food.
Manufacturers and growers usually determine how they will get their product to the end customer and how many steps will be involved in between.
How food distribution industry operates in wholesale and retail sectors:
Retail Food Distributors
Retail food distributors acts as middlemen between the manufacturer or farmer and the consumer through retail chain stores. Retailers purchase either directly from food producers or through a wholesaler and then work to market the item to the public at the retail level. Associated retail food distributors come into cooperation in different structures and with the help of the food supply and distribution chain, they are growing quickly on the regional markets.
Retail Distributors / Major distribution channels:
Sysco, Walmart, EMN Europe - Information
Wholesale Food Distributors
Wholesale food distributors purchase products and then take on the responsibility to move them from the warehouse to the companies that resell them or businesses who use them. Wholesalers add an additional step to the process (in comparison to partnerships with retail food distributors), but make the product more widely available.
Growers and Manufacturers
With distribution of a food product comes an added exposure to more customers. It also gives the producing company the ability to build a stronger brand. And with an efficient partnerships, it can often lead to free advertising. Because of this, it is typically advantageous to make distribution agreements based on stock availability and consumer interest.
Usually there is a specific estimation involved when relying on a food distributor to handle the movement of a product on a market.
Food growers and manufacturers create a product for the market with an end-goal of making it available to as many consumers as possible. Following these steps, the food product is introduced to the food distribution industry:
1) The first step in this process is to determine price. The manufacturer must calculate the cost of their product and research the retail price of similar items. Using those figures, and how much income will make the venture profitable, the manufacturer sets a price.
2) The second step is to determine the end user. Different products are sold best in different ways. The manufacturer must determine if the end user of their product will buy it in a retail grocery setting or in a restaurant or other business setting.
3) The third step is to decide how to get it where it will be sold. Depending on the end user, retail and wholesale food distribution options are both viable and helpful.
4) The fourth step is to partner with a distributor.
Reaching the Customer
With increased growth in food sales, businesses have a unique opportunity to reach more consumers. Not only can a product be featured on store shelves on the local and regional retail stores, but also in international markets.
The food distribution process has a wide range of options for both the consumer and the manufacturer. Increased availability of specialty foods, and a wide range of products, make it easier for consumers to find what they need, as well as for the manufacturers to get it to them.
Major Distributors List:
Food Distribution Channels
Specialty food distributors
Snack food distributors
Organic food distributors
Mexican food distributors
Italian Food distributors
Ice cream distributors
Health food distributors
Gourmet food distributors
Frozen Food distributors
Fine food distributors
Canadian food distributors
Asian food distributors
American food distributors
Energy Drink distributors
Bottled water distributors