Market expansion

How to secure distribution in the U.S. grocery market 🇺🇸

Expanding into the U.S. grocery market is a major opportunity for food and beverage brands, but securing the right distribution partners is crucial to navigating the complex retail landscape and building a profitable business.

Nicola O'Rourke
February 20, 2025

Expanding into the U.S. grocery market presents a significant opportunity for food and beverage brands. With a complex but lucrative retail landscape, understanding how to get your product into grocery stores and securing the right distribution partners is crucial.  Understanding your value chain to market is important to understand whether you can profitably build a business in the market in which you are endeavouring to sell your products – distribution plays a significant role in that value chain.

The type of distribution you need is impacted by a number of choices you make in your go-to-market strategy:

  • The channels you wish to sell through – Food service, retail, convenience, mass 
  • Pack format to sell into retail ie. inners, outers, shippers, cartons, pallet sizes
  • Number of SKU’s you are selling and how they are packaged
  • Uniqueness of your product distribution requirements ie. chilled, frozen, chilled to ambient
  • Geographic location of your customers in relation to ports and other border access points
  • Where you are going to target your products first 

How you think it goes

How it really goes

Understanding the route to market

Each market comes with different channels to access your end consumer.  Knowing your route to market is critical to the define the distribution partners you require.  For example, in some channels you may only need an importer of record, 3PL and then the primary distributor into your channel can pick up the goods.  In other examples, you may need a full service distributor in addition to a 3PL, importer of record, internal distribution option and multiple warehousing solutions.

The below are some things to consider in identifying distribution partners, accessing retailers, and designing a value chain that enables success in the U.S. grocery market.

Identifying Distribution Partners

Here’s how to identify and engage the right partners:

Understand the Types of Distributors

  • Broadline Distributors: Large distributors like Sysco, UNFI, and KeHE serve national and regional chains, providing extensive market access.
  • Specialty Distributors: Smaller, niche distributors focus on organic, gourmet, or ethnic foods.
  • Direct Store Delivery (DSD) Providers: For products like beverages and baked goods, DSD services allow frequent restocking.
  • Retailer-Owned Distribution Networks: Some chains, like Kroger and Walmart, manage their own supply chains and require vendors to align with their logistics.

Research and Evaluate Potential Partners

  • Market Fit: Identify distributors with experience in your product category.
  • Retailer Relationships: Assess which stores they currently serve.
  • Operational Capabilities: Evaluate their warehousing, logistics, and promotional support.
  • Financial Terms: Understand fees, margins, and payment terms before committing.

Engaging with Distributors

  • Attend industry trade shows like the Fancy Food Show, Natural Products Expo, or PLMA Show to meet distributors.
  • Leverage industry associations like the Specialty Food Association (SFA) or United Natural Foods Inc. (UNFI).
  • Present a strong sell sheet, including product benefits, pricing, packaging, and promotional plans.
  • Have a compelling sales story, including market trends and how your product fills a gap.
  • **Backing your conversations, sell sheets, and sales stories with real consumer feedback (like the stuff you get from Stickybeak) is a powerful way to show your products are tested and have demand. 

Accessing Retailers

Once a distribution network is in place, the next step is securing retail shelf space. Retailers look for products that align with consumer demand and drive sales.

Target the Right Retailers

  • Mass Market Chains: Walmart, Kroger, and Target require volume production and often demand slotting fees.
  • Supermarkets: Mid-sized chains like Publix, Albertsons, and Safeway cater to regional markets.
  • Natural & Specialty Retailers: Whole Foods, Sprouts, and Fresh Market favor organic, health-conscious, and gourmet products.
  • Independent & Regional Stores: Smaller grocery chains and co-ops provide a good entry point without large distribution commitments.

Pitching to Retailers

  • Develop a retail pitch deck with sales data, consumer insights, and promotional plans.
  • Offer promotional support, such as sampling, in-store demos, and introductory discounts.
  • Consider slotting fees, as many large chains require upfront payments for shelf space.
  • Leverage broker networks to establish relationships and secure meetings with category buyers.
  • Start with regional distribution before expanding nationwide to manage supply chain logistics effectively.

Designing a Value Chain to Market

A well-structured value chain ensures profitability and efficiency in distribution. Consider these factors when mapping out your supply chain:

Production & Compliance

  • Ensure FDA and USDA compliance with proper labeling, nutrition facts, and ingredient disclosures.
  • Obtain necessary certifications like Non-GMO, Organic, Kosher, or Fair Trade to meet retailer and consumer expectations.
  • Work with co-packers or manufacturers that have the capacity to scale production efficiently.

Logistics & Fulfillment

  • Optimize warehouse locations to reduce shipping costs and delivery times.
  • Use third-party logistics (3PL) providers for storage, pick-and-pack, and retailer compliance.
  • Implement EDI (Electronic Data Interchange) systems for seamless order processing and invoicing.

Marketing & Brand Support

  • Invest in trade promotions like price discounts, in-store displays, and endcap placements.
  • Use digital and influencer marketing to create demand and drive foot traffic to stores.
  • Ensure strong retail execution by monitoring shelf placement, replenishment, and consumer engagement.

Breaking into the U.S. grocery market requires strategic planning, strong distribution partnerships, and a well-designed value chain. By identifying the right distribution partners, accessing the right retailers, and building a scalable supply chain, brands can achieve long-term success in the USA grocery sector. 

A final tip, access the risk profile you are prepared to take with your products in the supply chain and ensure that you have the necessary indemnities, insurances and risk management in place and know where your liability begins and ends.  

Some helpful resources to check out are:

Taking your FMCG brand global

Retail

Distribution list

Podcast: How to get your brand on store shelves

Food Service

Podcast: How to launch in Food Service? Part 1Part 2

 

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Nicola O’RourkeJoy Consulting

Nicola O'Rourke is a passionate advocate for building and scaling brand-led CPG businesses, particularly in food and beverage. With deep experience across brand marketing, innovation, e-commerce, and commercial operations, she combines strategic insight with a hands-on approach to driving growth. Known for her energy, momentum, and strong industry network, Nicola helps brands navigate challenges, accelerate success, and get things done. 🚀

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