Selecting the right distributor is one of the most critical decisions for any CPG (Consumer Packaged Goods) brand. A distributor's ability to manage logistics, market your product, and meet your brand’s needs can determine whether your product thrives or struggles in the marketplace. However, it’s not just about finding a distributor with broad reach; you need one that’s a good fit for your product’s specific needs and growth trajectory. Here are 6 key factors to consider when choosing the right distributor for your CPG brand.
1. Industry Expertise and Experience
The right distributor will have experience in your specific product category and a deep understanding of the CPG market. Their knowledge of market trends, consumer behaviors, and retail expectations can make a significant difference in how your product is positioned and marketed.
What to Look For:
- Experience with products similar to yours and knowledge of the consumer demand in your category.
- A distributor who understands the challenges unique to your product type, such as shelf life, handling requirements, or market positioning.
Top Distributors with Expertise:
- Jonluca Neal: Specializes in natural and organic products with extensive experience managing wellness brands.
- Tree of Life: A well-established distributor with deep expertise in health, wellness, and organic food markets.
- Purity: Known for its strong focus on natural foods and organic products, Purity is a great choice for health-conscious brands.
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Terra Foods: A leader in distributing organic and natural products, Terra Foods has extensive knowledge of the market trends and consumer preferences in this sector, making them an excellent fit for brands looking to grow in the health and wellness space.
Tip: Ask for a tour of the warehouse and see how the place is organized and how they are managing their staff.
2. Geographic Reach and Distribution Network
The geographic reach of a distributor is one of the key factors in expanding your product into new markets. Whether you want to stay local, expand regionally, or distribute nationally or internationally, you need a distributor with a well-established network that can handle your requirements.
What to Look For:
- A distributor who can meet your desired geographic reach—locally, regionally, nationally, or internationally.
- A strong network of retailers, wholesalers, and online platforms in your target markets.
Top National and International Distributors:
- UNFI Canada: A leading distributor with nationwide reach across Canada and the U.S., offering access to natural and organic retailers.
- Horizon: Known for its expansive distribution network and partnerships with top-tier retailers, Horizon can help grow your brand’s national presence.
- KeHE: With a broad national network, KeHE distributes natural, organic, and specialty foods to a wide variety of retail locations. 🇺🇸 USA ONLY
Local Distributors in Calgary:
- Birkby: A Calgary-based food distributor specializing in delivering high-quality frozen, dry and perishable goods to food service businesses across Alberta.
- Nationwide Natural Foods: A British-Columbia-based distributor specializing in natural, organic, and specialty food products.
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Culina Foods: A Calgary-based distributor that works with health-conscious and organic food brands, offering a personalized approach to distribution.
It is more than acceptable to select more than one smaller distributor to service specific areas of Canada as long as each distributor is aware of their sales territory. It is sometimes better to have a variety of distributors that you feel connected with than one large distributor.
3. Logistical Capabilities and Infrastructure
Logistics play a huge role in a distributor’s ability to meet your brand's needs. From warehousing to order fulfillment and transportation, a distributor’s logistical systems need to be top-notch to ensure your product reaches retailers on time and in good condition.
What to Look For:
- Robust inventory management systems and efficient transportation networks.
- A distributor who can handle specific requirements such as cold storage, special handling, or temperature-controlled transport if needed for your product.
- Transparency in reporting, such as real-time stock updates and delivery tracking.
Distributors with Strong Logistical Infrastructure:
- Propel: Known for its reliable logistical systems and use of technology to track and manage inventory, Propel offers efficient distribution solutions.
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Hain Celestial: With a vast infrastructure across North America, Hain offers a seamless distribution experience, ensuring your products are efficiently moved across channels.
4. Financial Stability and Reputation
A distributor’s financial health is key to maintaining smooth operations. A financially stable distributor can better handle fluctuations in supply chain demands, absorb risks during economic downturns, and support your brand’s growth with necessary investments.
What to Look For:
- Evidence of strong financial performance, such as profitability and consistent growth.
- Positive reviews, references, and a strong reputation in the industry.
Distributors with Financial Stability:
- Jonluca Neal: With a strong financial foundation and years of experience, Jonluca Neal offers security and stability to its brand partners.
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Tree of Life: As one of the largest distributors in North America, Tree of Life boasts both financial stability and an excellent industry reputation.
Word of mouth is the best review, ask your peers. See what they have experienced and evaluate your decision with their experience in mind. Note that not all brands are made alike so your experience might be different.
5. Customer Service and Communication
Good customer service can make or break your relationship with a distributor. Clear communication, quick response times, and proactive problem-solving ensure that your product gets to the right shelves at the right time.
What to Look For:
- A distributor who is responsive and proactive in communicating about inventory levels, order status, and sales performance.
- Transparent communication about potential delays, stockouts, and issues that may affect your brand’s availability.
Distributors Known for Strong Customer Service:
- UNFI Canada: Known for their high level of customer service, UNFI provides great communication and support to their brand partners.
- KeHE: Offers dedicated account managers and personalized customer service to help brands grow and thrive in the market. 🇺🇸 USA ONLY
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Terra Foods: Known for their excellent customer service and dedication to building partnerships with brands, Terra Foods offers personalized attention to ensure your products are delivered and stocked on time. Their communication with retail partners is also top-notch, ensuring that your brand is always front of mind.
6. Minimum Order Requirements and Catalog Size
A key factor that is often overlooked is a distributor’s minimum order requirements and the size of their catalog. If your product is not one of their top sellers, meeting the distributor’s minimum order can become a challenge. You don’t want your product to be “sitting” in a warehouse because the minimum order is too high for smaller retail locations or because your distributor's catalog doesn’t prioritize your brand.
Why This Matters:
- If your product isn’t one of the distributor’s top sellers, they might not prioritize it or be able to meet the delivery requirements, especially if their catalog is saturated with slow-moving items.
- If the distributor’s minimum order is high and you don’t have enough products to meet it, it can lead to missed sales opportunities and frustrated retail partners.
What to Look For:
- Ask the distributor, "What is the average minimum order size for stores, and how often do you deliver?" This will help you gauge whether the distributor can meet your retail partners’ needs.
- Consider the distributor’s catalog size. If they have an extensive catalog, ensure that your product will stand out and not get lost among hundreds of other items that aren’t selling well.
Distributors with Flexible Ordering:
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Propel: Known for being flexible with smaller orders and helping emerging brands get into retail spaces, Propel is an excellent choice for brands that are just starting out.
Conclusion:
Choosing the right distributor is critical to the success of your CPG brand. By considering these 6 key factors—industry expertise, geographic reach, logistical capabilities, financial stability, customer service, and minimum order requirements—you can ensure that your distributor is not only capable but a strategic partner who can help grow your brand.
Whether you're a local brand looking for distribution within Calgary through partners like Culina Foods, or you're targeting national distribution with industry leaders like Jonluca Neal, UNFI Canada, Tree of Life, and KeHE, making an informed decision about who handles your distribution will set you up for success.
Ready to connect with the right distributor for your CPG brand? Attend the CPG EXPO to meet industry leaders and distributor reps face-to-face. Whether you’re looking to network, ask the tough questions, or find the right fit for your brand, the CPG EXPO is the perfect place to make those connections.
Buy your ticket now or Become an exhibitor and engage directly with distributors to get the answers you need. Sometimes, meeting a company’s staff in person can make all the difference in finding the right distributor for your brand. Don’t miss this opportunity to take your CPG brand to the next level! Get your ticket now!