“You have to take care of the relationship with your distributor; you need to invest in them,” explained industry veteran Ian Kelleher, co-founder of Peeled Snacks during an SFA Maker Prep webinar, Thursday, that focused on the basics of working with distributors.
But first, it's important to find the right fit. Food makers should determine the kind of distributor they're looking for, he said. Specialty/natural distributors have small minimums for smaller volumes or stores, while mass distributors require a larger volume. There are wholesalers, where a retailer can go to pick up products, regional distributors that only cover a specific region, and online distributors who handle the online portion of a maker's business.
Research is also key. Kelleher advised learning what retailers a distributor sells to, what brands are in its catalog (and if there is any competition), the other services the company offers, and ultimately, what the costs will be for you.
When preparing to meet with a distributor, a company should know its products and pricing, as well as that of its competitors, said Kelleher. It’s also helpful to know case/pallet minimums, shelf life, and share any special product issues.
He shared strategies to get the most out of the partnership, including:
• Look for leverage, but use it carefully.
• Stay on their good terms, but hold the line.
• Always be networking with other clients and customers.
• Look for win-wins and mutual growth opportunities
• Always have a back up
Most importantly, even if the distributor doesn’t ultimately work out for your company, never burn a bridge, Kelleher warned. “You never know when you may need this distributor again,” he said.
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