Submit Your Product to Deleks Foods
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How To Get Into Deleks
Founded by self-made Israeli billionaire, Yitzhak Tshuva, Deleks Group is a business conglomerate and one of Israeli’s largest companies. It has large dealings in energy and infrastructure. The company has investments in upstream and downstream energy, water desalination and power plants.
Deleks US Holdings was founded in 2001 and has been involved in several activities which include petroleum refining, logistics, convenience store retailing, and renewables. This platform was created through a combination of M&A and organic projects that has supported continued growth since 2001. The most recent step, which doubled the size of Deleks, was the completion of the acquisition of Alon USA Energy, Inc. in July 2017 and the acquisition of the remaining units of Alon USA Partners in February 2018. The inland refining system has four refineries with approximately 70% of its crude oil sourced from the Permian Basin, via a combination of third-party and Deleks pipelines.
Deleks’ assets in refineries, pipelines and convenience stores operate across nine states in the Southeast and Southwest region of the United States. With the extensive investments, it is not unexpected that Deleks, a fast growing conglomerate, is a $10 billion public company.
The company’s logistics segment is quite extensive. It gathers, transports and stores crude oil, as well as markets, distributes transports and stores refined production in the southeast United States and West Texas. Deleks Logistics assets consist of approximately 770 miles of crude and product transportation pipelines, a 600 mile crude oil gathering system and storage tanks and terminals.
The company also has dealing in asphalt. Deleks’ asphalt operations consists of 14 owned or operated asphalt terminals serving markets from Tennessee to the west coast through a combination of non-blended asphalt purchased from third parties and produced at the Big Spring, Texas and El Dorado, Arkansas refineries. It markets number of different asphalt product formulations through its operations.
The world is fast moving towards renewable energy and there are cars that now run on biofuel and renewable energy. Thus, energy companies are running towards providing efficient products to meet emerging demands. Deleks is not left out. The company’s foresight into the world where only renewable energy would run engines has made it set up plants to research and provide biodiesel fuel. The Company’s Renewables segment consists of plants in Texas and Arkansas that produce biodiesel fuel to be used in its refining operations and by third parties. It also has a renewable diesel facility in California.
The company is also in the retail business. Since the company deals in energy product, it is fitting convenience stores under its brand name feature at its gas stations. The Company’s convenience store retail business operates approximately 300 convenience stores. Its stores also markets motor fuels in central and west Texas and New Mexico.
On the whole, Deleks is a big company that has grown over the years into a multinational conglomerate. Its strides in the energy sector are one that draws a lot of investors and its stocks have been doing quite well in the market.
How to get your product into Deleks
- Understand you client: Before you spend a lot of time and money creating a product, you should know if anyone will want to buy it. Learn more about Market Research
- Learn if it’s protectable: Know if you can defend your product against cheap copies if it gets knocked off. Learn more about Copyright and Patent your product
- Test your product: Make sure that there’s a demand for your product and the customer understands what you are selling when it’s on the shelf and nobody is there to explain it. Learn more about Product Testing
- Perfect your pitch: Before you speak to decision makers, know your numbers, know your retailer and know your logistics in and out. Learn more about Pitching Your Product
- Don’t do it alone: If you haven’t been successful in retail before, a secret of success is that you can’t do it alone. Having great sales staff, customer support and marketing partners can take you from zero to success faster than if you tried on your own. Learn more about Retail Partnerships
Contact Deleks Buyer
Do not trust any “list” of buyers.
Typically retail buyers change either companies or positions every few years. This strategy helps retailers know that their buyers are not taking “kick-backs” and are selecting the very best product for the very best position each time.
Buyers are typically held to a very rigorous standard of sell-through volume that they must hit and because of this they are risk averse. Your job as a supplier or vendor is to convince them that the buyers going into the stores not only know about what you’re selling but are actively seeking the product in the store currently.
How to Submit a Product to Deleks
There are several ways to get a product placed in Deleks. However, most entrepreneurs only dream about getting their product distributed to major retailers, few actually do it. We have experienced a significant rise in interest since the show Shark Tank started airing on NBC. Mr. Checkout has had the pleasure of working with a few Shark Tank success stories such as KISStixx and 180 Party Cups which are now currently being distributed around the country to stores like Walmart, Target, Kroger, 7-Eleven and more.
If you envision your product would be a good fit for Deleks, we have a few steps to help you get your product on their shelves.
Here are the 6 steps you need to take to have your product placed in Deleks.
1. Start with the right questions.) Before you try distributing your product to Deleks, 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 Deleks would be interested in selling your product? If you can strike a deal with Deleks, can you handle the production volume? Do you want to sell directly to Deleks, 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 Deleks? Can you sell your product at a reasonable enough profit to cover the packaging, shipping, commissions, marketing and wholesale distribution? Check Deleks 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 Deleks 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 Deleks is the right store for your product.) The relationship between you and Deleks starts with you browsing their store for competing products. If Deleks already has a similar product, it is going to be very difficult to get your product picked up. Spend some time at your local Deleks to see what kind of products they are selling, speak to the manager and see if he thinks your product will sell well in their store. 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 Deleks.
If your company is minority or women owned, check Deleks website and see if they offer specific opportunities for those designations.
4. Pitch your product to Deleks.) Decide whether it will be you or a representative to present your product to Deleks. 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 Deleks, 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 Deleks. The percentage of commission verses, however generally a broker will take around 5% to represent your product to Deleks.
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 Deleks 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 Deleks paperwork.) Often Deleks will have you go through an application process. However, before submitting the paperwork required by Deleks, you should contact a buyer at Deleks 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 Deleks agree to stock your product 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, Deleks 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 sell your product to Deleks, 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.
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