Hispanic Grocery Distributors
Distributing to Hispanic Grocery Distributors is all about satisfying the store’s needs in what type of products their customers demand. Hispanic Grocery Distributors want a product that has been established and will sell quickly. Contacting local Hispanic Grocery Distributors is a good first step to get a feel for what products do well in that market.
Finding a distributor who already has an established relationship with independent specialty retailers is essential. The distributor and retailer relationship is important in product placement in Hispanic Grocery Distributors. If a distributor has a good reputation with an independent specialty retailer the process of getting products into the store is a lot smoother.
Building a relationship and a positive track record is a very important part for the distributor. It is important for the distributor to do some research on what kind of specialty products do well in each specialty store, which can be dependent on where they are located. If a product does well in one independent specialty store the likeliness the distributor will put it in other stores is high. In Hispanic Grocery Distributors and independent stores in general it is all about shelf space and what sells well will claim that shelf space. Products that do not, will be given less space or no space in order to move in a new product that sells well.
Hispanic Grocery Distributors look for products that are innovative and will set them apart from competitors. So, new products have a better chance of making it into an independent specialty store vs. a big box retailer. An independent specialty store will have a stronger personal relationship and knowledge with products compared to big box stores as well. This is beneficial to everyone involved because having knowledge about the product in stores will improve sales.
In order to get a product into an independent specialty market contacting the correct distributor is the first step. The next step would be sending samples and other pertinent information to that distributor if requested. They like to see proof of sales and selling points of that product. Communicating about price points and minimum order quantities is very important. If the distributor likes the product and thinks it would be a good fit for their route they will purchase the product.
If the product does well in stores, the distributor will continually order more. Proof of sales will bring more orders and getting in contact with other distributors in other parts of the country is the next step. A product with proven sales in a few Hispanic Grocery Distributors will make its way to Hispanic Grocery Distributors all across the nation through different distribution channels. Establishing and building relationships with distributors is the best way to get products into Hispanic Grocery Distributors.
Here are the 6 steps you need to take to have your product picked up by a distributor.
1. Start with the right questions.) Before you try distributing your product, you need to ask yourself a few basic questions. Do you need to build demand for your product, or is there already a demand for it? Do you know that the distributor would be interested in selling your product? If you can strike a deal with them, can you handle the production volume? Do you want to sell directly to the distributor, or do you want to license your product to a manufacturer that will handle distribution?
2. Be prepared to profit.) Does your product offer enough of a profit margin for a distributor? Can you sell your product at a reasonable enough profit to cover the packaging, shipping, commissions, marketing and wholesale distribution? Check the distributor’s guidelines for other fees that you will have to build into the cost of your product in order for you to be able to turn enough of a profit to make the effort worth your while. If you work with a discount retailer, they will try to strip your profits down to zero in order to keep their prices as low as possible.
The typical breakdown of margins are: If a products costs $1 to produce, that product will retail for $4. That product that retails for $4 will wholesale for $2 to distributors and stores that purchase direct. Big box retailers like Walmart may offer to pay $1.25 to the manufacturer if the product costs $1 to produce. That is the typical profit margin.
3. Determine if the distributor is the right one for your product.) The relationship between you and the distributor starts with you browsing the store’s that they service for competing products. If the stores already has a similar product, it is going to be very difficult to get your product picked up. Picture in which zone your product would best fit on the shelf and keep in mind that the most precious asset that these big box stores value are their shelf space. Keep this information in mind when you are preparing your presentation to the distributor.
4. Pitch your product.) Decide whether it will be you or a representative to present your product to the distributor. Your presentation depends heavily on your strengths as a businessperson as they will most likely ask financial questions and logistics questions.
It’s common for companies to hire a broker to pitch their product to a distributor, as it will be more likely that your product will make it to the next stage if the individual pitching your product has industry knowledge or a personal relationship with them. The percentage of commission verses, however generally a broker will take around 5% to represent your product.
We at Mr. Checkout have experience dealing with brokers and know that there are several retail brokers that have poor business practices that can potentially damage your brand. If you are seeking a legitimate broker, please give us a call for a recommendation. It could save you a huge headache and a lot of money.
5. Complete the required paperwork.) Often a distributor will have you go through an application process. However, before submitting the paperwork required, you should contact them and let them know your intentions. Having a contact inside of the company will potentially move your application more smoothly through the process.
6. Anticipate the need for increased volume.) Having a distributor pick up your line will most likely mean a significant increase in volume. You should be prepared to ramp up your production and informing your manufacturer of this opportunity.
Having production, logistics and distribution to sync is not only difficult, it requires a significant amount of time invested in customer relations. Also, distributors may have stipulations in the contract that may penalize you for delays in shipping and production. Have an attorney explain all contracts to you if you don’t understand the terms.
If you’re looking to distribute your product through a distributor, be sure to thoroughly assess the marketplace, carefully prepare for production growth, and take full advantage of resources available to help you grow your business.
Top 4 Hispanic Grocery Distributors
Hispanic delicacies are one of the most sought after in the United States. Just like all other grocery sourced from all over the world to sell in the American market, Hispanic grocery is particularly foreign but has found a place in the meal plans of millions of Americans.
Getting these products to the United States from their various indigenous homes is the work of the distributor. The distributor works with agents in the foreign country to get a shipment of these products down.
Hispanic grocery distributors would be listed below:
Headquartered in San Jose, California, PITCO FOODS is an innovative wholesale cash & carry and distribution company driven to provide great, quality selection at the lowest price possible.
With 4 locations of members-only warehouses, PITCO FOODS serves over 12,000 independently-owned convenience stores, grocery stores, liquor stores and food service operators from Bakersfield to the Northern California border.
Leading the wholesale food and beverage distribution industry in efficiency, quality and selection, PITCO FOODS is proud to offer numerous Hispanic and Asian product lines, as well as PITCO’S own quality-driven Private Label brand, PARADE.
United with thousands of recognizable name-brand items, PITCO FOODS stocks over 9,000 various groceries, beverage, refrigerated, frozen, HABA, housewares, janitorial, auto supply and dollar items.
Since 1989 Midway Importing has help define the Hispanic Health & Beauty Care products category for retailers across the United States. Hispanic shoppers want brands that they know and trust and Midway helps retailers provide the right mix of products for their Hispanic shoppers and create long-term relationships.
Souto Foods Wholesale & Distributors
By remaining closely involved with demand and industry changes, Souto Foods offers an extensive selection of products from Latin American and Caribbean countries, as well as other countries around the globe. They have become a preferred food distributor thanks to their high quality standards. The totality of our products meets all the necessary norms and regulations. Their relationship managers and experienced buyers work together to carefully select all lines of products to ensure solid relationships with both Souto Foods clients and their clients.
Los Compadres specializes in importing and distributing Mexican food, Central American food, South American food, and Caribbean food. They are Mexican food suppliers that sell and distribute nationally and internationally recognized brands with more than two decades of industry experience. Whether you own and operate a grocery store or restaurant, Los Compadres is your Mexican food suppliers of choice.
Banner Wholesale Grocers has been servicing the independent grocer since 1926. They offer a large variety of merchandise, specializing in American and Hispanic products. At Banner, their mission is to consistently provide the highest quality service and excellent value to their customers.