What’s the Difference between a Food Broker and a Distributor?
Food Broker: A food broker acts as a sales representative for your product but never owns the inventory. They connect manufacturers and suppliers with retailers, restaurants, and wholesalers to expand product visibility. Brokers are typically paid via commissions based on the sales they generate.
Distributor: A distributor buys products from producers, manages inventory, and resells them to stores and food service outlets. Once a distributor purchases your product, it becomes part of their portfolio alongside many other items.
Which One Should You Choose?
It depends on your product and your business goals.
Choose a food broker if:
- You need access to key decision-makers but can’t afford a dedicated sales team.
- You want to retain control over your product without managing logistics like storage and distribution.
- You are focused on quickly expanding into multiple retailers or food service channels.
Choose a distributor if:
- Your priority is to simplify the process and offload the inventory management responsibility.
- You have a product with consistent demand that can benefit from large-scale distribution.
- You prefer the distributor to handle warehousing, deliveries, and stocking.
Can I Choose Both?
Absolutely! It all depends on your business strategy. Think about how you want to reach buyers, manage your inventory, and scale your product. Using both a broker and a distributor can provide the best of both worlds—brokers help you grow relationships and visibility, while distributors handle logistics and ensure smooth delivery to customers.
Why This Matters
Each approach has advantages. A broker helps you grow relationships and expand your reach, especially if your product is new. On the other hand, a distributor takes the hassle of logistics off your plate, allowing you to focus on production and branding.
At the end of the day, your product’s unique needs and growth strategy will guide this decision. Whether launching the next award-winning salsa or introducing innovative packaging, aligning with the right partner will position you for success in the competitive food market.