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    How To Sell A Food Product (Especially to Grocery Stores)

    Wild-Groves-Products_group

    This is Dewey, he sells high end olives and olive oil from his brand Wild Groves Olives:

    Dewey Wild Groves Olives

    Dewey wants to sell even MORE olive oil. But how does he do that?

    Well since ME AND YOU are his trusted advisors, together we need to help Dewey sell lots of olives.

    Let's take stock of what Dewey currently sells:

    Dewey's top sellers are a line of high end olives oils:

    These are used by foodies, restaurants, and gourmet chefs. They're on the expensive end, but taste super unique and delicious.

    dewey-wild-groves-olive-oil-bottles

     

    He also sells a line of high end mustards and olives:

    These are awesome (I tasted them all)!

    Wild-Groves-Products_mustard

     

    He also sells a line of high end vinegars:

    My favorite one of these vinegars is the "Sex on the Beach" flavor:

    Wild-Groves-Products-Vinegar

    The way this is done is by getting his product into grocery store chains.

    Let's dig into some stats (and please say "You're Welcome" to Dewey for opening up about this info by visiting him at WildGroves.com).

     

    These products sell "OK" online:

    Dewey already sells about 20% of his product directly from his website, but the big kahuna of sales is still grocery store chains. 

    Checkout this stat:

    80% of Dewey's sales come from orders placed by large grocery store chains!

    That's because the orders from grocery store chains are FAR LARGER than anything small consumers will ever buy.

     

    Single Online Buyers ($16 to $120 orders):

    olive-oil-small-orders

    Example: Dewey got 5 orders on Tuesday that equaled $150 in gross sales.

    Mom & Pop Stores ($100 - $500 Orders):

    olive-oil-food-orders-medium

    Example: On the same Tuesday Dewey got 2 small mom & pop stores that ordered for a total of $600. We Olive Fresno bought $200 worth of oils, and Olive This Olive That bought $400 worth of olive oils.

    Grocery Store Chains ($10,000 - $50,000 Orders)!

    lots-of-olive-oil-orders

    Example: This week Nugget Market (which is a grocery store chain) bought $10,000 worth of merchandise from Dewey! They bought 1,056 bottles of balsamic vinegar and 1,056 bottles of olive oil (all of them were the large 500 ML bottles).

    Naturally you can see how selling to these larger grocery store chains would be very well worth Dewey's time! The small and medium sized orders add up to only a few hundred dollars of gross sales per day, but a single grocery store chain order will be $10,000+ of merchandise!!

    This is why trying to get a food product into a large grocery store is one of the most profitable endeavors a food company can do!

     

    Getting A Product into Grocery Stores:

    The first thing you need to understand is that a grocery store is a business.

    They exist to sell products and make money.  So let's work this backwards and see how we can help THEM.

     

    Method 1.) Show them how much they can make with your product:

    Generally the margin on olive oil is roughly 50%.

    Normal olive oil costs $5 per bottle. This means $2.50 of profit per bottle.

    Dewey's olive oil is $22 per bottle.  This means $11 of profit per bottle 🤑 !! 🤑 !! 🤑 !!

    This means they only need to sell 1 bottle of Dewey's olive oil to make the same profit as 4+ bottles of normal olive oil.

    However selling a $22 bottle of olive oil won't work in every grocery store, especially budget stores. However it works well in higher end gourmet stores.

    Let's put it in a slide like this:

    food-marketing-grocery-store-pitch-10

     

     

    Method 2.)  Tell  Show People Different Uses for Your Product:

    I have a bunch of Wild Groves product, and I told Dewey I wasn't really using the vinegar that much.  He asked if I'd tried putting his vinegar in my morning smoothies.

    I was like, "GROSS!!!!"

    He told me to put 1 tablespoon of the Sex On The Beach vinegar in my next smoothie.

    Then I was like, "Oh snap this is pretty damn great!"

    A few months later I bought 3 more bottles of different flavored vinegars from Wild Groves to put in my smoothies. Every time I put this vinegar in my smoothies I always think:

    "Vinegar in smoothies....who would've thought!?"

    Most consumers wouldn't know to put these in their smoothies, so that's why it's important for the business owner (Dewey) to SHOW clients that this works.

    Showing different and novel uses of a product isn't a brand new idea, it's been around for years. In fact one of my favorite ads is this old Campbell's Soup ad that shows you can drink beef broth directly as a beverage, not just a soup:

    Old Campbell's soup drink beverage ad

    Ya ya ya, while some people might revolt at the thought of drinking straight beef broth, this campaign effectively changed the consumers mind about what you could do with a simple can of beef broth.

    So for our presentation, let's make a little slide showcasing this novel use of Wild Groves vinegars:

    food-marketing-grocery-store-pitch-6.png

     

    Method 3.) Show off your star customers (chefs):

    When I first heard that Dewey's olive oils were $22/bottle I asked who in their right mind would buy such an expensive oil.

    He said primarily it was high end chefs who appreciate and understand the value of a damn good olive oil.

    So let's make a slide to show that!

    food-marketing-grocery-store-pitch-b-8.p

     

    Method 4.) Demonstrate all of this in a nice little package:

    We made some good points above on how to get a product into a grocery store, HOWEVER, it's all talk unless we actually DEMONSTRATE IT!

    The next time Dewey is trying to pitch to a large grocery store chain, instead of going in without a plan, he can go in with this handy "marketing packet" that will showcase to large grocery store chains why they should buy Wild Groves products over the competition.

    The Brochure Layout:

    • Intro to Wild Groves
    • Show that Wild Groves is most awarded olive oil in California.
    • Show that Wild Groves is most bought olive oil in California.
    • Show different uses 1
    • Show different uses 2
    • Show different uses 3
    • Show testimonials
    • Show how store makes more money with Wild Groves.
    • How to order and contact info.

    Here's what the whole brochure and presentation looks like in order:

    Now armed with a deck like Dewey can get his olive oil into more grocery store chains.

    It's actually surprising the number of people who try to sell to grocery store chains, but don't have any "reason" for the chain to buy their products.

    Sincerely,

    Neville Medhora - Olive Oil & Vinegar Buyer

     

    P.S. I was putting 2 tablespoons of Dewey's Sex On The Beach Vinegar in my smoothies everyday, and when my bottle ran out, I realized how crappy my smoothies tasted without them :(

    So I ordered a bunch more...

    wild-groves-olive-oil-neville-order.jpgMuch oil. Many vinegar. Very flavor.

    ...and now my smoothies taste awesome! My favorites are the Sex On The Beach vinegar and the Peach vinegar.

     

    P.P.S. What are some other ways we could get Dewey more giant grocery store chain orders? Have any experience with this?

    I'll be sending two free shirts, of any style, to anywhere in the world, FOR FREE, to the top two commenters!

    shirts-prizes.png


    User Feedback

    Recommended Comments



    Guest Dewey Lucero

    Posted

    Hi Kevin,

    We have done as much, and yes, it does work! Now that you have reminded me of this, I might try it again :)

    At festivals, when customers ask where they can buy it locally, I tell them to ask the manager of their store for Wild Groves, and it has worked a time or two.

    Link to comment
    Guest Dewey Lucero

    Posted

    True on the old school....fortunately...and unfortunately :)
    Link to comment
    Guest Dewey Lucero

    Posted

    Yes, in as few words, that is what needs to be done in a very precise way. Now, that said, we have been doing this, but not precisely. Now that Neville (and everyone else commenting here) has opened my eyes to other tools and possibilities we are going to now try a more tactful method of sales to these grocery stores. We even have a list we've been blanket emailing for a couple years of 400+, that we've collected from Fancy Food Shows, now it's just about executing....know any good salespeople :)
    Link to comment
    Guest Dewey Lucero

    Posted

    Absolutely, we have a reached a point where we need to hire a salesperson. I've been a one-man show up to this point.

    Brokers are tough - FYI. They can take a lot of hand-holding & education, plus take a lot of profit with fees up to 15%. I would say it's probably better to just hire someone you can mold and shape.

    Link to comment
    Guest Dewey Lucero

    Posted

    Wow, yes! Great point and idea Niel. Give the customer ways to use the product so they can visualize themselves using it before they even buy it. I really like this idea because it has so many possibilities, all about educating the customer, which is a win, win, win for all (customer, store, Wild Groves). I agree, why don't you see this more? For a long time you saw many products with those scannable square badges, but not much any longer....I wonder why?
    Link to comment
    Guest Neville Medhora

    Posted

    Bahahaha yeah I remember seeing this! The ironic part is that story got them a ton of exposure and more sales 🤣
    Link to comment
    Guest Neville Medhora

    Posted

    I actually think it won't really impinge on your online sales too much, as most people probably won't be nearby those stores it's already sold in.

    Also it gives you a boost of credibility that you are sold in a large amount of stores.

    You could easily put up a page simple as:

    Wild Groves is proudly sold by:

    Place 1

    Place 2

    Place 3

    Place 4

    Place 5

    Place 6

    Place 7

    Place 8

    So it probably wouldn't take TOO much effort :)

    Link to comment
    Guest Neville Medhora

    Posted

    I agree....while I like this idea, it also seems like a very slow (and expensive 😳) way to grow.

    It almost seems like going directly to grocery store chains is better.

    Link to comment
    Guest Neville Medhora

    Posted

    Oh wow, this worked well!?!!?

    ......a good piece of advice is to "keep doing what's working!"

    Link to comment
    Guest Neville Medhora

    Posted

    It's kinda cool you only have 400-ish places to go after. That REALLY narrows down the market compared to other industries where there might be hundreds of thousands of possible contacts.

    You can really put some elbow grease into getting to know this group of people. Most people have well over 400 friends on their Facebook alone, so this is totally doable!

    Link to comment
    Guest Neville Medhora

    Posted

    Get someone to man the horn all day! Someone with an agreeable attitude, and preferably someone that totally digs your olive oil :)
    Link to comment
    Guest Neville Medhora

    Posted

    My theory on why you don't see this:

    If you just put a giant ass website label on a product, grocery stores wouldn't like it as much.

    Link to comment
    Guest Quantella Owens

    Posted

    Three things occur to me:

    #1) VC firm CircleUp focuses on the consumer industry and they have a ML platform called "Helio" https://circleup.com/blog/2017/02/23/announcing-the-launch-of-helio/. Helio helps buyers and investors surface new food/consumer items to feature.

    #2) Rephunter.com. It's a site which allows you to search for independent sales reps by INDUSTRY. Those reps already have relationships in place...no sense reinventing the wheel.

    #3) Costco. Full disclosure: I'm a member and they love bringing new things to light. It's their whole ethos- "the treasure hunt." You will get a huge order, but it probably won't be repeated. The bonus here is that you will get massive exposure to a truly spendy customer base. The average Costco member makes $100K + annually and is very picky and loves gourmet stuff....

    Link to comment
    Guest Neville Medhora

    Posted

    Yeah, it's kind of a blessing and a curse if something is so old school.

    BLESSING: It's easy to use basic things like a good cold email to get a meeting.

    CURSE: It's a super slow, relationship based, and time intensive to get exposure.

    Link to comment
    Guest Arthur

    Posted

    This was really interesting for me. I noticed you talked about how the chains can make much more money with the olive oil in the beginning. But in the brochure you talked about it at the end.

    What’s the line of thinking formpurr He that stuff in the end?

    Link to comment
    Guest Joel

    Posted

    Are you having to pitch at regional level (all of socal), or can they walk into a store and talk to the manager directly and do it one-off, then use that to show other stores?
    Link to comment
    Guest Jenn

    Posted

    As much as I like the idea of grocery store sales being driven by what people are introduced to in restaurants, I have worked in restaurants before, and the two issues you brought up are significant.

    Serving a ramekin of your oil with bread service would take a significant amount of product.

    Link to comment
    Guest Jenn

    Posted

    I like the idea of grocery store sales being driven by what people are introduced to locally in restaurants, but this might prove to be a difficult approach. While restaurants are quick to accept samples, they are typically hesitant to introduce anything to their customers that they aren’t confident they can continue to carry. “Freebies” rarely make it into rotation, and restaurant stockrooms often have sample cases of specialty condiments and liquors collecting dust.

    If you do find yourself working with a restaurant willing to introduce your oil to their clientele, the presentation would be critical. Serving a side of your oil with table bread would require a significant amount of product in house, and there would likely be a tremendous amount of waste. Servers throw away full cups of unused dipping sauces on a regular basis. You are also depending on those servers to call attention to your oil and get your name out, and unfortunately, that would not happen consistently.

    For more bang for your buck, the restaurant could bring a bottle of the oil to the table with a drizzle spout. Depending on the size of the restaurant, they would only need to have a couple of bottles in rotation at a time. Since the oil is still in its bottle, if it isn’t used none is wasted. More importantly, the customer would have the bottle in their hand. They would be able to view your label and become familiar with your packaging, which would certainly help with your brand recognition.

    It really is a great idea, but it would take a lot of trust in the restaurant’s intentions. Once you hand over the product, you have very little control over where it goes from there.

    Link to comment
    Guest Bart

    Posted

    Does it?

    The original goals is to get the product in the store, (not. to promote a product that is already in the store)

    You can bring in an convince the manger very effectively to get YOUR product in HIS store.

    Follow up with awesome service and good display material, like printed tips etc, etc.

     

    think about it....

    Traditional or not it WILL be very effective to get YOUR new product in the mangers store.

    Link to comment
    Guest Allen

    Posted

    You could target health food stores and other places where people are frequently using apple cider vinegar for “health benefits.” The Sprouts grocery here in the bay has an enormous display of apple cider vinegar for this reason.

    People hate drinking it, but believe it does something. They also don’t know what to put it in. So you’ve got an opportunity to solve their problem by showing them how to use your products rather than choking down a spoonful of vinegar by itself.

    So some place like a small supplement shop doesn’t sell vinegar, but has customers that buy vinegar...and probably drink smoothies.

    So you market to them, you’re the only vinegar in their store (no competition), use the smoothie/shake example, and potentially you’ve got sales people explaining your product benefits rather than just sitting on the shelf.

    I’d also think about end cap style displays and signage to give to the groceries. If your stores sell more product, they make more orders.

    Easiest way to get more orders is with existing customers. You can write newsletters for yourself, and also for your customers. Think Trader Joe’s flyers as well as email.

    Link to comment
    Guest Neville Medhora

    Posted

    Hey Allen, selling the vinegar to smoothie and supplement stores, that's a possibly shirt-worthy idea :)

    Never thought of that avenue, great suggestion!

    Link to comment
    Guest Neville Medhora

    Posted

    Hey Arthur! The thinking is to show that the product itself is super awesome, and that it can actually justify that high $22/bottle price.

    So you gotta build it up a bit to show WHY it's worth 5x the price of standard olive oil!

    Link to comment
    Guest Neville Medhora

    Posted

    Great suggestions Quantella!

    Something like a Costco order is the ultimate dream :-)

    Link to comment
    Guest Neville Medhora

    Posted

    Bahahahha I've never heard of these diamond candles, that's hilarious!
    Link to comment



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