Food distribution channel overview : a guide for new manufacturers

Abstract

The food distribution system in the U.S. is complex. Many players—including middlemen—produce, manufacture, transport, distribute, market, and sell every type of food product imaginable. By the time a product is placed on a grocery store shelf, it has traveled countless miles and has been handled by many people. Each person has evaluated and scrutinized the product to assess its risk and opportunity. Each has considered quality, price, packaging, labeling, and marketing plans. By the time the product is purchased, the manufacturer, broker, distributor, and retailer have all determined it to be viable and profitable, and the end consumer has deemed it to be of significant value.