What Is a Food Broker and How Can They Benefit Your Business?

Developing and producing a successful food product means that a lot of pieces have to come together perfectly…

On the culinary side there’s flavor, mouth feel, ingredient list, and presentation to consider.

On the business side there’s shelf life, pricing, serving size and packaging to figure out.

But even that’s not enough to guarantee success. You also need the right channel partners to help get your perfect product to market.

It means deciding on a distribution strategy, figuring out what food brokers do, and choosing wholesalers and distributors who will be a good match.

Bottom line… It’s not easy to navigate the complex distribution channels in the food industry. This post should help.

What is a food broker and what do they do?

Food brokers act as intermediaries between producers and retailers. They negotiate prices with retail buyers and try to get your product on store shelves. It’s an important sales management role that leaves you more time to focus on the manufacturing side of your operation.

Typically, food brokerages charge a set-up fee plus a monthly retainer and 5 to 10% commission on every transaction. So those costs must be factored in to your bottom-line accounting. And they can add up!

The best food brokers will maximize your profit margins and expand your reach with better shelf placement and more locations. The worst ones just become an added layer of expense and hassle.

Some common problems with food brokerages…

Sometimes brokers run into conflicts of interest that can be detrimental to your sales. The larger the brokerage, the higher the chance of a conflict.

Transparency and communication can be problematic, so you might find it hard to track the broker’s activities and ensure compliance with contractual agreements.

Small brands and foods imported from other countries often have a hard time getting the same attention from a broker as bigger domestic brands.

The livelihood of any food broker revolves around purchase orders. The more POs they generate, the more money they make. So many brokers are hyper focused on transactions… Just get the order!

Channel Ambassadors take a more holistic, hybrid approach.

With Channel Ambassadors on your side it’s not transactional, it’s relational. The whole idea is to foster lasting relationships that open doors and facilitate win-win deals over the long run.

Channel Ambassadors bridge the gap between food brokerages, wholesalers and distributors. It’s a unique, hybrid role that can simplify supply chain management dramatically for food producers.

One strategic channel partner, rather than several specialists.

Unlike brokers, Channel Ambassadors buy your product up front. They have skin in the game and a tangible incentive to make sure your product moves off the shelves.

Channel Ambassadors don’t just sell and take orders, they make sure your products are marketed end-to-end.

That starts by taking time to know your product, your category, your business and your customer base. Once they know where you fit, they leverage their network of high-level industry connections to open doors, facilitate trade, and close deals.

Then it involves proactive marketing efforts, so your story gets told and your flavors get the attention they deserve. Ambassadors don’t quit when your product hits the shelves.

On-the-spot, 24/7 logistics support is the final piece of the puzzle. Brokers don’t help with that.

Channel Ambassadors make sure that your inventory is managed correctly and delivered precisely every time. So you won’t have to worry about lost shipments or missed deadlines. It’s end-to-end service with long term growth in mind.

If you sign an agreement with a food brokerage, you might get a bump in sales, in the short term. When you sign with Ambassador Foods, you’ll get a strategic partnership that will simplify your life, and be mutually beneficial for everyone involved.

If you’re still wondering, “what can a food broker do for me,” just fill out a quick form and a real human being from Ambassador Foods will reach out. For more on how Channel Ambassadors work, click here.

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