What food & beverage CPG buyers really want from emerging brands
Recorded at the 2024 Big Connecticut Food Event at the Yale School of the Environment.
Breaking into the competitive food and beverage retail market is no small feat. In a candid panel discussion featuring buyers from Whole Foods, Big Y, and Bozzuto's, emerging brands gained unprecedented insights into what it takes to succeed in the cutthroat world of CPG (Consumer Packaged Goods).
The Differentiation Imperative
In a market saturated with products, standing out isn't just an advantage—it's a necessity. John Lawson from Whole Foods emphasized that categories are "highly rationalized," meaning every shelf space is carefully curated. Brands must answer one critical question: What makes you unique?
Differentiation goes beyond just another flavor of hot sauce or honey. It's about telling a compelling story through your packaging, ingredients, and brand identity. Successful brands leverage attributes like:
Organic certification
Regenerative agriculture practices
Fair trade sourcing
Women or minority-owned business status
Unique ingredient sourcing
Innovative flavor profiles
John Fraro from Big Y shared a telling example about honey producers. While there are countless honey brands, those who've successfully innovated—like creating hot honey variations—manage to capture buyer attention and consumer interest.
The Pricing Puzzle
Pricing strategy is where many emerging brands stumble. The panelists were crystal clear: understand your costs from day one. This means factoring in:
Production costs
Distribution expenses
Retailer margins
Promotional strategies
Jim Creely from Bozzuto's highlighted a crucial point: don't plan on making money in the first year. Emerging brands must be prepared for significant upfront investments. This includes understanding distributor costs, planning for quarterly promotions, and creating a sustainable pricing model.
Pro tip: Know your Suggested Retail Price (SRP) before approaching buyers. Blank looks when asked about pricing are a major red flag for retailers.
Evolution is Not Optional
The food and beverage landscape changes rapidly. Brands that survive—and thrive—are those willing to adapt. This means:
Staying ahead of food trends
Listening to customer feedback
Being willing to pivot your product offering
Understanding generational preferences (hello, TikTok trends!)
John Fraro pointed out the challenge of trend-driven markets, particularly with Gen Z consumers. "The good news and bad news is Gen Zs are typically really trendy," he noted. Brands must balance innovation with long-term sustainability.
Feedback: Your Secret Weapon
Collecting and implementing customer feedback is crucial. The panelists recommended a multi-channel approach:
Social media interactions
In-store demos
Customer service channels
Specialized feedback collection apps
Direct customer conversations
John Lawson emphasized the importance of demos and customer interactions. "When you're in there with your product, and customers are coming to you with suggestions, keep track of those conversations," he advised. This is essentially free marketing research.
Beyond the Shelf: Building Relationships
Getting your product on the shelf is just the beginning. Successful brands:
Develop strong relationships with buyers
Understand each retailer's local strategy
Provide consistent support
Plan promotional calendars in advance
Be prepared to invest in merchandising
Distribution: The Hidden Challenge
Distribution is often an overlooked aspect for emerging brands. The panelists stressed the importance of:
Understanding distributor programs
Factoring distribution costs into pricing
Leveraging distributor support services
Planning for efficient logistics
Bozzuto's, for example, offers multiple distribution programs, including a virtual marketplace that allows brands to ship directly to stores with minimal upfront costs.
Practical Advice for Emerging Brands
Research thoroughly before approaching retailers
Develop a clear, unique value proposition
Be prepared to invest in your brand's growth
Understand your target market deeply
Stay flexible and responsive to market changes
Build relationships, not just transactional interactions
The Bigger Picture
This isn't just about getting a product on a shelf. It's about creating a sustainable business that can grow and adapt. The most successful emerging brands view retail partnerships as collaborative relationships, not simply transactional interactions.
John Lawson summed it up perfectly: "We want to create scenarios that are going to build success in the future."
Final Thoughts
Breaking into the food and beverage market is challenging, but not impossible. With the right strategy, willingness to learn, and commitment to innovation, emerging brands can turn their passion into successful retail products.
Remember: Every great brand started exactly where you are now—with a vision, a product, and the determination to succeed.