Page 54 - Business Basics for Alberta Food Processors

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Direct Sales to Food
Service
The variety of food service establishments vary from
snack bars to white tablecloth restaurants and the
need for products and services are equally as diverse.
Products are sold in bulk and therefore will usually
reduce your labeling and packaging requirements.
Distributors
A distributor buys your product and resells it, at a
profit, to his accounts. The benefit of using a
distributor is that they do the job of selling your
product. Distributors offer experience, contacts and
market segments such as gift stores, grocery chains,
delicatessens, food service or specialty food stores.
They have existing accounts and work to increase
their market share.
Brokers
While distributors buy product from you, brokers do
not. They represent your product in return for a
commission on sales. They sell directly to retailers
and distributors. In some respects, brokers act in
much the same way as a company salesperson by
selling, maintaining accounts and representing your
product directly to the buyer. A broker is useful
when you are attempting to market a product into a
new outlet or region.
Private Label
Private label products are made for retail buyers,
wholesalers or brokers who exclusively own and
utilize the label name. Superstore’s
President’s
Choice
is an example. The manufacturer is under
contract to produce the product according to the
specifications of the label owner. The owner
promotes and advertises the product.
Industry Trade Shows
Most industries hold trade shows or exhibitions to
display the latest products and services offered by
suppliers to the industry. Trade shows provide a
forum to discuss new products, services and
technological developments. They are also an
opportunity to increase client contacts and sales. For
information and a listing of some of the trade shows
available check the Alberta Economic Development
Authority website www.alberta-canada.com
For more information on the topics in this section
see the resources section, page 59.