The Importance of Grocery Wholesale Distributors in Food Distribution

The Importance of Grocery Wholesale Distributors in Food Distribution

Have you ever wondered why food manufacturers spend the majority of their time, resources, and energy in producing food instead of marketing them to the consumers? Well, manufacturers are limited in reach and instead of striving to get their products into the hands of consumers, they make use of food wholesalers and distributors who work as middlemen. These middlemen distribute the food products to retailers who in turn deliver them to the doorstep of customers.

The Role of a Wholesale Distributor

The hidden truth is that manufacturers produce food products while the retailers sell them to the final consumers. For instance, a can of cooking oil is produced and packaged and sold to consumers through various retail outlets or grocery shops. In between the manufacturer and consumer, there are major operators called middlemen or distributors who serve the purpose of moving this product from the point of manufacture to the consumer’s market.

Some are wholesale or merchant distributors – they purchase the products in large quantity from the manufacturer and sell to companies from their warehouse, the company resells directly to the end-users or use them for whatever purpose they deem fit. On the other hand, the operators could be retail distributors who sell directly to the final consumers.

Wholesale distributors are mostly establishments that market products to retailers, contractors, merchants, commercial, institutional, or even industrial users. The wholesale distribution companies sell both durable goods such as furniture and non-durable goods like groceries.

Active operators involved in wholesale distribution includes food brokers, manufacturer’s offices, and commission agents. The wholesale distributor performs a big role in running an independent firm that purchases and sells food products of which they have taken ownership. Of course, those activities are performed in warehouses where the list of goods are received and then distributed to customers.

What Does Food Wholesalers Do?

A food wholesaler is any business organization or firm that sells food products to other firms. A manufacturer can become a wholesaler if they engage in selling their own products to retailers. Also, found in the category of food wholesalers are industrial-based grocery shops that sell in bulk at wholesale rates to grocery stores and restaurants.

Grocery wholesale distributors offer food service opportunities with the chance to purchase a fewer quantity of products, despite the fact that such food products seem to be provided in large quantities than what is obtainable from the conventional grocery stores. In the same manner, they provide prices based on the volume of products they purchase and supply food products in bulk just like wholesale distributors.

Food Distributors and Their Roles

Generally, the role of food distributors is to deliver food products directly to retail food dealers and wholesaler who in turn sells these food items to retailers. They provide their clients with so many products to choose from while many distributors are specialists in one particular food item or the other.

Furthermore, food distributors offer their clients the convenience of delivery, to the extent of allowing customers to carry goods from the warehouse even without meeting the minimum delivery condition.

Challenges Facing Wholesale Distributors 

The number one challenge facing the average grocery wholesale distributor is the problem of taking care of perishable food items and delivering them to the consumers when they are still fresh. This alone makes it mandatory that they must have extensive infrastructural facilities such as coolers and freezers that will keep the food items from spoiling.

Locally produced food products have become so popular that they cause some retailers to run away from big wholesalers and distributors. This is a problem as it tends to concentrate on food items produced in large amounts by big manufacturers.

Opportunities for Grocery Wholesale Distributors  

Grocery wholesale distributors provide convenience to experts in the restaurant business as well as retailers. They save them from working with too many individual food vendors and arranging for multiple deliveries and pickups.

Food wholesalers and distributors offer convenience to manufacturers as well by helping them to limit large-scale deliveries instead of multiple small deliveries. This saves time, you know!

Also, wholesale distributors who are specialists in a particular type of food item build supply networks that enable them to exchange comparable items when their normal offerings are not easily available.

So, as a grocery wholesale distributor, you will be buying food products to sell at a profit. You will be working and connecting business-to-business by selling to retail stores or companies and other wholesale organizations instead of the buying public.