Distribution Grocery Channels

Distribution Grocery Channels

A Distribution channel is a chain of intermediaries through which goods or services pass until it reaches the last buyer or consumer. While distribution channels may seem endless and complicated, traditionally, these channels include the manufacturer, wholesaler, retailer, and nowadays, even the internet.   Distribution channels are part of the downstream process of getting products to the customers.

CHOOSING THE RIGHT DISTRIBUTION CHANNEL

In choosing the right distribution channel for your products, you should consider how quickly you want your products to reach their buyers. Take the nature of the products into consideration. Certain products are best distributed via a direct distribution channel. Such products include; animal or farm products. Other foodstuffs are better served by an indirect channel.

A company that chooses multiple distribution channels like; online sales and retailers should ensure that these channels do not clash with each other. Formulate tactics to ensure that one channel does not overpower the other.

PROBLEMS ASSOCIATED WITH GROCERY STORE DISTRIBUTION CHANNELS

Every grocery store is usually confronted with problems related to the distribution network and inventory merchandising. The wide variety of items in grocery stores that often require choices makes it difficult for them grocery store owners or managers to handle inventory effectively.

Problems can occur when distribution partners have inadequate knowledge of the products or target market. This could most likely result in poor service to customers, and loss of sales. This problem can be avoided by educating and arming distributors with adequate training programs that could help familiarize them with the products.

The growing demand for healthy food alternatives has to lead to a gradual decline in the business of grocery stores. Studies reported in Forbes, 2015 show that consumers are willing to pay more to eat healthy foods. Although, this does not necessarily have to pose a problem anymore as manufacturers distributors and are striving to make healthier food options available to the consumers.

The stress of handling fresh, easily perishable foods like fruits and vegetables in a bid to maximize the freshness and get it to the consumers on time. This poses an additional challenge as perishable foods need to move out of the door as soon as possible to maintain its short shelf life, or else it results in a loss for the producers.

Seasonal peaks and shortage of manpower is another problem facing distribution channels to grocery stores. Distribution is highly dependent on manpower.  The older generations who are more inclined towards this are gradually retiring with less young generation willing to replace them. Young graduates seem unenthusiastic about careers in warehousing.

Lastly, more extended distribution channels can mean less profit for each intermediary for its service. The longer the chain of supply,  the lesser the dividend of each channel.

Distribution Company for Grocery Stores

Distribution Company for Grocery Stores

The grocery industry is considered the most important retail channel in the United States. Operators in this industry generally retail food products such as: seafood, canned and frozen foods, animal products, cereals, foodstuffs, baked goods, and the rest.

WHY DO GROCERY STORES NEED DISTRIBUTORS?

Grocery stores need distribution companies for consistency and ease. Distributors are a grocer’s safety net. They bring stability and consistency to the stores, ensuring that the shelves are always filled up, and the grocery stores are never out of your favorite brand products.

The grocery industry is highly competitive. With over 150,000 grocery stores competing for market share, the industry has been growing at a considerably fast speed for several years. That being said, below are some top distribution companies for grocery stores.

TOP GROCERY DISTRIBUTION COMPANIES

C&S WHOLESALE GROCERS

This is an American wholesale distributor of food and grocery items. It is known as the largest wholesale grocery distributor in the United States.  C&S grocers were founded in 1918 with its headquarters in New Hampshire, United States. It has over 50 distribution centers in 16 states.

CORE-MARK

Core-mark is one of the largest and highly revered marketers of fresh and broad-line products to the grocery retail industry. They supply a wide variety of products and offer marketing programs to over 29,000 locations in North-America. They provide services to traditional convenience stores, drug stores, grocery, and specialty store and to other small retailers that sell packaged goods to consumers

THE KROGER COMPANY

Kroger is one of the companies holding the largest market share in the supermarket and grocery stores in the US industry. It is the largest supermarket chain by revenue and the second-largest retailer, thanks to its 36 distribution centers. It delivers food products to 2622 stores in 34 different states across the United States.

MCLANE COMPANY

McLane Company Inc is a 44 billion full chain supplier of groceries and foodservice to convenience stores, chain restaurants, and mass merchants around the United States. McLane more than fifty distribution centers making it one of the nation’s largest fleet. The company delivers more than 50,000 unique products to about 90,000 locations in the United States.

 

WEGMANS FOOD MARKETS INC

This is a privately held American chain of supermarkets. Its headquarters is located in Rochester, New York. Wegmans has 101 stores as of October 2019 in the mid-Atlantic and North-Eastern regions.

TRADER JOE’S

Popularly known as the neighborhood grocery stores, Trader Joe’s is an American chain of grocery stores with its headquarters in Monrovia, California. As of April 2020, it has over 505 stores in 42 states nationwide. Trader Joe’s is known for its brands of amazing food and drinks.

So, if you are on the lookout for grocery distribution companies that will not disappoint, these companies should be on your list.

Distribution Channel Grocery Stores

Distribution Channel Grocery Stores

Grocery stores are large stores where groceries (foodstuffs, household items, and other commodities) can be purchased. There are food distributors who specialize in delivering grocery items to grocery stores. Getting your products on the shelves of grocery stores is a great way to expand your brand to a new customer base. If you are wondering how to do this successfully, we are here to help.

These few tips will guide you in achieving your aim.

CONDUCT A DUE DILIGENCE

This is a form of market research; it is an essential factor in launching a successful business or brand. You can visit local store retailers to study their products and consumer preferences. Talk to buyers if you can to get their likes, dislikes, and preferences in a product. Even, you may go as far as conducting a market audit to acquire adequate knowledge of the consumer base you are targeting and the risks associated with the market space.

CREATE A BRAND IMAGE

Proper packaging can market a product better than any other sales strategies. Once you have done adequate research to help guide the development of your product, you can use this information to create a professional, attractive packaging that will make your products stand out on the shelves of grocery stores. Working with a topnotch product designer will help you get your consumers impressed and attracted to your products.

CONTACT DISTRIBUTORS

You can get your products to grocery stores by either approaching each store yourself,  hoping they will accept your products, or you can partner with the right distributor who will do most of the work for you. The latter is more advisable and less exhausting because the truth is retailers are reluctant to devote shelf space to new products. They would instead continue to sell existing products that have already earned the trust of consumers and generates lots of sales.

Since these distributors are already familiar with grocery stores, working with one will significantly improve your chances of success. You will need a little help from these experts to reach your destination. Listen to your distributor’s feedback carefully as you can trust them to give you great tips on growing your business.

APPROACH GROCERY STORES

Once you’ve got a distributor, you are ready to start speaking to grocery stores. At this stage, they will mostly want to take your products on consignment. Consignment launches your product and gives you a method of testing how well it performs in the market. This means they will only pay you after your products have been sold. Do not be alarmed. If you have a quality product, it will sell out in on time.

Achieving these stages does not mean you have to relent. You still need to do your part in marketing and spreading awareness about your products. Marketing strategies like social media campaigns, trade show events will prove productive.

Distribution Center for Grocery Stores

Distribution Center for Grocery Stores

Have you ever bothered to think about how a particular grocery item you pick up frequently from the grocery store got to the shelf? Most of us are unaware of where our regular brands of food items, cereals, or beverage products are produced and the process they pass through before they are sold to us. The effort of food distribution channels brings fresh products from farms and processing centers to your convenience at grocery stores and other retail outlets.

These distribution channels are the path through which all goods travel to arrive on your tables. Distribution channels could be short or long, depending on the number of intermediaries or middlemen employed in delivering the products. Goods can reach customers through multiple channels. This means there are many ways a consumer can find these goods. One of these ways is through a grocery store distribution center.

You probably visit some of these stores regularly and purchase their products. Some of these grocery distribution centers include:

WHOLE FOOD SUPERMARKETS

Consumers describe whole foods as natural, healthy, wholesome, and original with good quality products. Whole foods specialize in organic foods. It first opened in its headquarters at Austin in 1980, and now, it operates stores in the United States, Canada, and the united kingdom. Whole foods were acquired by Amazon in 2017. The company has standards for humane care and slaughter of animals used for its meat and other dairy products.

WALMART INC.

One of America’s greatest multinational retail corporations, Wal-Mart operates a chain of markets and grocery stores in the United States. It is headquartered in Bentonville, Arkansas. The company was created by Sam Walton in 1962 and incorporated in 1969. Since then, Wal-Mart has grown into a retail giant and is one of the top grocery distributors in the country. It has over 5,000 stores nationwide and serves customers more than 200 million around the world per week. It has 42 regional U.S distribution centers, some of which operate 24/7.

COSTCO WHOLESALE CORPORATION

Costco is an American membership-only warehouse that provides a wide variety of merchandise.  Costco is another top grocery distributor in the nation. It handles 604 warehouses, with 437 in the United States and the rest in various international locations, including Japan, Korea, and Mexico. Costco is home to lots of cheap and tasty foods. Some of their brands include: Kirkland signature chocolate milk cartons, Kirkland signature organic apple sauce, and their S&W organic black beans.

These stores are considered to be some of the best because of their excellent quality products, reliability, excellent customer service, providing good value for money, and their well-designed facilities.