How to get your food products in supermarkets & grocery stores: 6 steps
Selling your products to supermarkets and grocery stores is a significant advantage for any farmer or manufacturer. Simply follow the steps below:
1. Acquire permits
Check whether you qualify to operate a food manufacturing business in your city and state. Local laws vary, so ensure you have all the permits the local health department sets.
2. Finalize product development and packaging design
You need packaging that ensures product freshness, whether it’s in the grocery, meat, dairy, or processed snack category. Packaging must also meet US Food and Drug Administration (FDA) guidelines for labeling ingredients and food products.
3. Conduct market research
Audience research will help you learn more about your consumers and the existing demand for your product. This will give you insights to refine your offerings and their presentation before approaching grocery retailers.
You can sell your food from a stall at a local farmers market or hand out samples to your target audience. Gather as much feedback from consumers as possible and improve your products accordingly.
4. Compile a list of buyers
Not all retailers in your area will be the ideal place to sell your product. Make a list of potential stores and identify which are a good match.
If you sell high-end extra virgin olive oil, it will perform better at a gourmet store versus a convenience store.
5. Prepare a product pitch
Once you’ve prepared a list of potential stores that can sell your products, tailor a presentation for each.
Use your market research and sales data to make a case for why your product will be a good fit.
6. Connect with store managers and distributors
Connect with local store managers and distributors for your product pitch. New businesses may have to sign vendor registration forms before entering deals with larger stores.
If needed, you can offer the stores incentives like discounts or promotional offers to convince them to carry your products.
Types of stores that sell food products
You must be familiar with the industry's landscape to sell your food products in grocery stores and supermarkets. Here are some of the most common types of retailers that can carry your products in the US food market:
Conventional supermarkets: These stores stock a complete range of groceries, meats, and processed foods, usually with a wine store or bakery section. There are 62,383 conventional supermarkets and grocery stores in the US.
Supercenters: These major shopping centers combine conventional supermarkets and department stores. They sell electronics, toys, and home appliances in addition to food products.
Warehouse stores and warehouse clubs: These stores sell groceries and other food items in bulk quantities at discounted rates. The difference between a warehouse store and a club is that customers need a membership to shop at the latter.
Gourmet stores: These carry locally sourced items or organic produce that customers wouldn’t find at a large supermarket chain. There is often an increased focus on healthy, nutritional, and sustainable food products.
Independent stores: These include sole proprietorships and small grocery companies with a limited regional footprint. They are more open to working with small businesses and showcasing new, homegrown products.
Convenience stores: Customers grab household essentials, fast food, and processed snacks from these retailers at street corners or gas stations. According to NielsenIQ, convenience stores are the most common food retail outlet, numbering over 155,000.
Knowing the differences between these types of food stores will help you reach your target customers more accurately.
Top 5 benefits of having your products on store shelves
The average US household spends $165 weekly on grocery shopping. In a year, sales add up to $846.4 billion.
For a business to succeed in the food industry, capturing a slice of the physical retail market is extremely important.
Finding the right way to sell your products to supermarkets and grocery stores, is important for increasing your profits.
Here are the ways selling to supermarkets can benefit your business:
1. More sales
Having products featured in a store guarantees a captive audience. Packaging and branding can attract more customers and drive sales. This is in contrast to ecommerce, where customers can have difficulty finding your items online.
2. Brand visibility
When your products are featured in stores with existing customer bases, your brand strengthens by association. You can capture a new audience that could represent a new segment of loyal consumers for your company.
3. Increased legitimacy
Grocery stores and supermarkets are neighborhood fixtures and have established relationships with customers. When customers see your products, they automatically trust their quality because they meet the store’s standards.
4. Lower costs
Selling your products to supermarkets and grocery stores reduces operational costs.
According to a study by McKinsey & Company in 2023, businesses can save up to 20-30% on logistics and fulfillment expenses by selling through retail stores instead of managing direct-to-consumer delivery operations.
This cost reduction is achieved by using the retailer's existing distribution networks and infrastructure.
5. Broader reach
As your sales grow, you can expand your distribution network to include more stores in different geographical markets.
A 2023 report by the Food Marketing Institute (FMI) indicates that brands expanding their presence in regional grocery chains can increase their market reach by up to 40% within two years.
By scaling up food production to match the demand from more stores, you can significantly enhance your brand’s visibility and penetration across diverse markets.
Final thoughts
Getting your products on supermarket shelves is a game-changer for any food manufacturer, offering great opportunities for increased sales, brand visibility, and market expansion.
By understanding the retail landscape, refining your product, and strategically pitching to the right stores, you can secure a foothold in the competitive grocery market.
This journey not only boosts your revenue but also solidifies your brand's credibility and reach, setting the stage for long-term success in the food industry.
Taking these steps is not just an option—it's a vital milestone in your business's growth and sustainability.
