How did a squeezable fruit pouch maker land its products on the shelves of 18,000 stores in just two years' time? Here's a hint: marketing was a key ingredient.
It all started in 2006 when Fabian Milon couldn't find squeezable fruit pouches -- a popular and healthy snack in his native France -- anywhere in the U.S. Voila! The Coral Gables, Fla.-based Buddy Fruits was born in 2009.
A restaurateur in France at the time of his inspiration, Milon used his culinary experience to create recipes. Meanwhile Buddy Fruits' co-founder and CEO, Jerome Lesur, handled marketing and business development. Here are seven steps they recommend taking to get your foot in the door of a major grocer like Whole Foods Market, Wal-Mart, Kroger and Publix:
- Use and train your brokers: If a buyer is inaccessible or unresponsive, use brokers with access to the major stores. Brokers have something you don't: A pre-existing relationship with grocery-chain buyers. Convince them to carry your line, then train and equip them with everything from samples to press kits, which they can use to successfully tell your story.
- Show the trend: Prove your product's significance in today's marketplace with both quantifiable and anecdotal information. For Buddy Fruits, their value proposition of "One Buddy Fruits a day keeps the doctor away" aligned with popular messages from Michelle Obama, Jamie Oliver and school boards across the U.S. Demonstrate that your product is right, not just "right now," for the store and its demographic. An industry leader such as Wal-Mart won't be interested in your product if it's a fad or a flash in the pan.
- Don't go in cold: Show that you have loyal customers and tell the store buyer what you've already achieved in terms of success and distribution. This is where you trot out your business model complete with market research and sales figures.
- Position the product: Lesur says that because their product contains 100 percent fruit, he wanted it positioned in the produce section near the fresh fruit -- despite the fact that it's packaged. The move made sense to the big grocers, as did the company's slogan: "Eating Fruits Made Easy!"
- Stand out: Remember, your packaging is tailored for your retailers every bit as much as for your customers. Big brand grocers will yank your product off the shelves if customers aren't looking at it. Remember, if your product doesn't pop, everybody loses money.
- Secure a distributor: Distribution deals are critical in the food and beverage industry. Whole Foods, Kroger and other national chains won't meet with you unless you have a distributor. But don't expect to lock up giants from the start. Secure a mid-sized distribution company and prove yourself first. Once you have the data, the charts, the proof, the graphs, a profit -- that's when you make your move on the industry leader.
- Find an advantage: Every distribution company already has clients. Offer the one you want to work with something they don't have. Find the distributor that doesn't carry anything resembling what you offer, including your value proposition
What steps would you add to this list of how to land on grocers' shelves? Leave a comment and let us know.
Comments:
Hi Carolyn, do you think store retailers would be reluctant to carry your products if you also sell them on your own website? These days every company has their own webpage but maybe it can be viewed as competition. Not sure how these things work.
Good Stuff here. I was thinking of putting products in Whole Foods.
THE ARTICLE DOESN'T TELL YOU HOW MUCH YOUR COMPANIE'S NET WORTH HAS TO BE TO SELL WALMART YOUR PRODUCT, EVEN THROUGH A DISTRIBUTOR. YOU MUST USE A NON DISCLOSURE FORM WITH WHOMEVER YOU CHOOSE TO BE YOUR DISTRIBUTOR AND HAVE IT SIGNED BEFORE ENTERING ANY AGREEMENT WITH THEM. IF YOU DON'T GET A NON-DISCLOSURE FORM, DON'T DO BUSINESS WITH THAT DISTRIBUTOR.
Thanks for that tip - I identify with you. Growing slowly without debt.
Thank you for this great article. I would personally add selling your strengths e.g. No debt Lower overheads Cash reserves Flexible employees Back-up systems Regards Claudette
Ideally, we select our brokers based on the brands they represent and utilize industry references to locate brokers. We always make sure there are no conflicts and that we will be incorporated in the same category for every store that we are in. It is also important to assess the success they are having with other brands, specifically the same industry you are in. One thing to be cautious about is the number of brands a broker represents. If there are working with too many they will not have the time and energy to focus on your products. Also it is important to evaluate when you need a broker and when you will be more successful selling directly. Some accounts do not like to deal with brokers and prefer to be in direct contact with manufacturers. It really varies from one retailer to another.
Good post. I hope the above mentioned points are helpful in marketing the products.
This is so true. And for a lot of small businesses out there that may very well have something unique to offer, but don't have the funds to pay a broker and distributor right off the bat, it's not only easier but wiser to start small and scale up. I started my food & beverage company in 2009 and went from small, local co-ops to mid-sized markets with only 2-3 locations in my state, and have worked with a local buyer at Whole Foods for the last 3-4 months exchanging info, success stories, progress, and finally gotten confirmation that they'll be bringing some of our items in. It's great exposure, but also great in that we will be able to start in just a few stores in our area first, before moving to other locations. Slow, steady growth has worked really well for our small business with one owner and only parents as support. Had we grown any faster, I wouldn't have been able to keep up. Had I put out a lot of money to brokers, marketing/sales associates, and distributors, I'd be two years in and making very little money. Roll your sleeves up and get dirty before paying others to do work you may be able to balance on your own!! It'll pay off...
how do you find the brokers??
In less than 2 years since inception my non food product is sitting on the shelves of Walmart. It helps when you have something unique to offer. http://www.looprope.com/
As someone who loves Buddy Fruits, I think reading of what they had to do to get national exposure is great. Seeing that they worked hard to make their product successful because they believed in it is wonderful.
Very interesting article. Thanks
Many chains (Whole Foods included) have regional buyers who can place orders for your goods without going through a national rep or broker. You might only get exposure in a dozen stores, but many entrepreneurs without large production capability might find that appealing. Having sold into this chain, I would suggest approaching the regional buyer, or even department managers at store level if you can get an appointment or referral to see them. (they have the ability to place an order as long as your SKUs can be put into their system). Then expand into their other stores via your suggestion #3 - by using sales figures at their own stores.