Following on from several questions about my article last week about creating a winning pitch to retailers, I’m looking to answer those here.
Historically, retailers showed little interest in new-to-market brands since there were concerns that they’d be unable to meet the mass distribution demands of their significant store numbers.
But now, the major retail chains are increasingly looking to source products from small, reliable suppliers, recognising that these entrepreneurs add innovation and variety to their offerings and these businesses now receive greater support throughout the process.
In particular, Tesco, Sainsbury’s, Asda, and Morrisons who account for around 65% market share, actively welcome local suppliers through various initiatives. Middle and regional managers now have the authority to make local purchasing decisions, enabling them to support producers in their supply to a handful of local stores up to an initial listing of around 500 stores under certain incubator programmes.
Tesco’s regional roadshows for food producers where they can meet buyers directly. Sainsbury’s Supply Something New initiative offers training, support, and certification, while Waitrose’s programs include numerous small suppliers’ products. And TV programmes such as Channel 4’s ‘Aldi’s Next Big Thing’ have given some insight into the way retailers select products and the approach they adopt to working with potential supply partners.
But how do you start the conversations?
Your best chance of succeeding is through direct communication with the buyer responsible for procurement. Undertake research to find the right contact by exploring LinkedIn in particular along with online publications such as The Grocer.
Attending events where buyers are actively looking to source new products can provide fantastic opportunities to meet your target buyers and Bread & Jam have meet the buyer events running across the whole year (https://www.breadandjamfest.com).
All the major retailers now use a portal called Range Me (https://www.rangeme.com). Use the free version only, not the premium version – this is on the advice of a number of retail buyers!
In terms of social media, Instagram is the most valuable platform as some buyers do use it to look at new product launches so that they can keep their finger on the pulse and in doing so of course they may see a product that they are interested in listing.
If direct outreach isn’t proving possible, then use buyer contact information which is available within their websites and follow the tips in my article ‘Creating a winning pitch to retailers: Part 1.
As mentioned in that article, your pitch should include a detailed marketing plan demonstrating your capacity to meet demand, including how you intend to manage increased order volumes.
After securing a deal, be ready to scale production rapidly, as supermarkets expect quick turnarounds on popular products and maintain active marketing strategies as the major retailers only allow a limited time for products to prove themselves.