Food broker vs distributor: which an emerging brand needs, and when

What a food broker does

A food broker is a sales agent. A broker represents several brands at once and pitches them to buyers, mostly at supermarket chains, wholesalers, distributors and foodservice companies. Good brokers know the buyers personally, know when each category is reviewed, and know what a buyer needs to see before saying yes.

A broker never buys your stock or delivers it. They are usually paid a commission on the sales they bring in, and some also charge a monthly retainer or fees for extra work such as store checks. Rates and terms vary from broker to broker, so get them in writing.

What a distributor does

A distributor buys your stock, holds it, and sells and delivers it to stores. It keeps a margin between your price and the price the store pays. You get reach and fewer invoices to chase. Our guide on how to find a distributor covers when you are ready and what to bring.

Some distributors have sales teams that pitch new stores, but most expect the brand to create demand. Their strength is delivery.

What going direct means

Going direct means you find the stores, pitch the owner or buyer, deliver the cases and send the invoice. You keep the full wholesale price and you know every stockist yourself. It suits independent stores, which buy on their own without a head office or a category review. Our guide to getting your product into stores covers how.

Side by side

The three routes, compared on the things that matter to a small brand.

• Who sells. Direct: you. Distributor: mostly you, sometimes their reps. Broker: the broker.
• Who holds the stock. Direct: you. Distributor: the distributor. Broker: nobody new, so you still need a way to deliver.
• How they are paid. Direct: you keep the full wholesale price. Distributor: a margin on each sale. Broker: a commission, sometimes plus a retainer.
• Which stores. Direct: independents. Distributor: the stores on its delivery runs. Broker: chains, wholesalers and foodservice buyers.
• What they need from you. Direct: time. Distributor: proof that stores reorder. Broker: distribution in place and a budget for promotions.

When a food broker makes sense

A broker earns its commission when chains are within reach and you need someone in the room with the buyer. That usually means you already have a distributor who can supply the chain, sales data from other stores, and money set aside for the promotions and listing costs a chain will ask for. Our guide to slotting fees covers those costs.

When a broker is too early

If you have a handful of stockists, nobody has reordered yet, or you are still changing your price or pack size, a broker is too early. You would pay for access to buyers you are not ready to supply.

This is the stage to sell direct to independents and build a record of stores that reorder. Our guide to retailers or distributors first explains why.

How a broker spends its time

Most brokers carry many brands, and their time goes where the commission is. A brand with strong sales and an upcoming category review gets attention. A small brand with no distribution gets a slot when there is time left over. That is simply how commission works, and it is worth knowing before you sign.

A good broker will tell you honestly whether you are ready. If a broker is keen to sign you before you have stores that reorder or a distributor in place, ask what they plan to sell your product into, and how they will measure their own results. Ask other brands they represent how it has gone. Brokers who specialise in your category and the chains you want are usually worth more than a bigger firm with no link to either.

Questions to ask a food broker

Before you sign, get clear answers.

• Which buyers do you work with now, and which brands do you represent in my category?
• How are you paid: commission, retainer or both, and on which sales?
• What do you expect me to fund, such as promotions, samples and listing costs?
• How do you report on your work, and how often?
• Is the agreement exclusive, for which region, and how does either of us end it?

Going direct: the route you control

Most brands use all three routes in the end: direct to independents first, a distributor when delivery becomes the problem, then a broker when chains come into view. The first step is the one you control, and the one that makes the other two possible.

LaunchPal does the selling part of going direct. We find the independent stores that fit your product, find the owner or buyer, and email each one about their store and your product. Follow-ups stop the moment a store replies, and the AI does not reply for you: you take it from there. For a fuller comparison of a broker with your own outreach, see food broker vs outreach.