HOW TO GET INTO WHOLEFOODS?

[IMKENOBI]

A colleague shares a challange/opportunity: "Getting UNFI on board -- we are submitting to them now, but their form greeting was a strong suggestion to use one of their preapproved brokers -- so now we are looking at less profit -- on an already tight bottom line -- with a broker on board (this all smells of kickbacks and pay to play, but I am not planning on fighting the system).

Comments? Especially about need to use a "preapproved broker" to get into WholeFoods ia UNFI?

Cheers,

Steve

[SMD]

Hello,

I'm new to the site and looking for information for our business plan. Specifically about distributors and getting into wholefoods. Of course, I came across this post first.

Can you tell me how this worked out for your colleague? Also, I'm trying to estimate how many units a company like Whole Foods would order in the first instance. Or any retailer or distributor? I know it's an impossible question to answer which is why I'm struggling. Would they be cautious and order one case or would they need to have a certain amount of stock just in case.

FYI, our product is non perishable (soap etc). It will be sold at boutique grocers and larger, organic stores like Whole Foods.

I really love this board, it is SO helpful!

Thanks,

SMD

[IMKENOBI]

Howdy SMD,

I will check with my colleague and get back to you.

In the meantime, Wholefoods will tell you how much they would want in an initial order.

Other retailers usually order your minimum, also usually a case of one dozen. Lately, some suppliers are offering half dozen units.

You might consider offering a "volume discount" in which several cases would be the minimum required to get the discount (best discount is to offer free merchandise)..

Does this help?

Steve

[IMKENOBI]

Hello SMD,

The secret is “try, trying again”, and of course, have a product line that relates to their product-by-product review periods (those are listed on line). If they’re reviewing olive oils and vinegars in October, don’t send cookies! They stick to their review schedule tightly.

When presenting to Whole Foods, Wegman’s or other high-performance chains, manufacturers must be prepared for the following minimum investment:

• 1 case per item per store free fill
• Demos in the stores, if requested (not always required, but highly thought-of)
• Samples for passive demos if paid demos cannot be provided
• TPRs – Temporary Price Reductions at least 3-4 times per year so consumers will find items that are (for example) $2.99 instead of $3.99…and will buy-up product they might not normally

WF does have “their brokers”: They work with many. If you choose to hire a national (and natural foods) broker your line will have to generate, say $2000/month in commission revenue, or you will have to guarantee a similar amount, to get your way into a brokerage firm.

Does this help?

Best regards,

Steve

[SMD]

Hi steve,
You are a wealth of information! I have a lot to learn. Next step is to track down your book.
Thanks!
Sasha

[SMD]

Oh, I just remembered another question I have; how do I find a broker? I suppose I won't be starting with a big, national broker but start with someone smaller and more affordable. I'll talk to a few different companies but how do I find them?
Thanks!

[IMKENOBI]

Hello Sasha,

See our listing under Broker Info at www.specialtyfoodresource.com

Ask for a broker listing from the NASFT.

You can meet brokers at the fancy food shows, and you can ask other producers and retailers which brokers they like to use, or are calling on them.

Your challenge is not the big, national or small regional brokers, but ones that have openings for your products. The best tend not to be interested in carrying new products.

Good luck.

Steve