The food supply chain in the US is supported by tens of thousands of distributors and suppliers. These companies specialize in B2B sales of wholesale food products. They make it possible for restaurants to offer delicious meals and for grocery stores to fill their aisles with goods. In addition to selling a wide selection of food products, suppliers in this sector also offer other items. For example, a food distributor might also sell restaurant supplies, wholesale paper goods, and even machinery and equipment. That way, suppliers aim to become the one-stop shop for grocery chains and businesses in the restaurant industry. If you wish to know what are the main categories of wholesale food products, this article will shed some light on this topic. We’ll also give more details about the pros and cons of purchasing from broadline suppliers versus partnering with specialized distributors.
Key takeaway: There are more than 27,000 distributors of wholesale food products in the US. That includes large nationwide food distributors and smaller regional suppliers. Businesses that purchase wholesale food products include grocery stores, restaurants, catering companies, other retailers, and other food service providers.
Wholesale Food Products Offered by Distributors
There are multiple categories and subcategories of wholesale food products. In fact, even though drinks and beverages are not technically food, they are often considered part of the broad food and beverage industry. Let’s examine the main categories of food items.
- Produce. From seasonal fruits to pre-cut salad mixes, produce distributors offer various types of fresh and processed products;
- Meat. Chicken, beef, and pork are the most consumed types of meat in the US. Meat suppliers also offer wholesale deli meats and high-end specialty products like Wagyu beef;
- Dairy. From bulk milk to artisanal cheeses, wholesalers offer a variety of dairy goods;
- Specialty food. There is no definition of specialty food. This category includes various products such as gourmet and luxury food or spices and products that don’t fall under any other category. Ethnic food or niche products such as vegan meat alternatives are often considered part of the specialty food group;
- Seafood. Restaurants and grocery stores need various types of seafood;
- Baked goods. Most broadline suppliers offer generic baked goods in large quantities. Businesses that want to order custom wholesale baked goods partner with commercial bakeries;
- Dry products. Staple food products are among the most common goods delivered by suppliers of wholesale food products;
- Beverages. A lot of business owners prefer to partner with specialized wholesale coffee distributors or wine and spirits suppliers. That’s because they are more knowledgeable in these fields and can offer better customer service. When it comes to generic beverages like soda, there is little difference whether you order them from broadliners or from specialized beverage distributors;
- Supplies. In addition to selling various wholesale food products, distributors in this niche also offer other high-demand products. Disposable goods, wholesale janitorial supplies, tableware, cookware, and other goods are just some examples of supplies;
- Other goods. Of course, there are products that don’t fall under any of the major categories. Large distributors of wholesale food products offer tens of thousands of different goods. From condiments and sauces to canned ready-to-eat meals, there are various other goods sold by food distributors.
Ordering from Broadliners VS Specialized Distributors
When purchasing wholesale food products, businesses can either partner with suppliers that specialize in a certain category or with broadline distributors (what is broadline distribution). These two options have their pros and cons. Let’s examine when it makes more sense to order from broadliners and what businesses primarily partner with specialized distributors.
Purchasing from Broadliners
The main benefit of ordering from a broadline distributor is that they offer a wide selection of products. This makes them the all-in-one distributor for restaurant businesses, retailers, and other companies. Another advantage is that the wholesale prices of broadliners are often more competitive as they benefit from economies of scale. Large food distributors have access to more data that can be analyzed. This allows them to adapt to the latest market and restaurant industry trends. Broadliners often have more solutions for their customers compared to smaller distributors. They include software solutions that make ordering easier, eCommerce catalogs, and additional food distribution services.
Buying from Specialized Suppliers
The main benefit of ordering from distributors that specialize in a single product category is their knowledge in the field. They can offer consultations and help businesses with additional services such as courses or product sourcing. It’s hard for specialized distributors to compete with broadliners in terms of prices. That’s why they aim to offer improved customer service. Local food distributors that focus on a specific sector purchase their products primarily from regional farms and manufacturers.
B2C Wholesale Food Products
Buying wholesale products is not only for businesses. The benefits of buying wholesale are also available for households and individuals. There are many cash & carry and warehouse club retailers that offer products in bulk. They operate with very slim profit margins. This means everyone can purchase wholesale food products. Farmers markets and food cooperatives are also places that are open to the general public. Unlike food service and grocery store distribution companies, these businesses rarely offer deliveries to individual customers. Furthermore, ordering in bulk only makes sense if you have adequate storage space.
Frequently Asked Questions about Wholesale Food Products
Wish to read more about wholesale food suppliers for restaurants or you’re interested in increasing your wholesale sales? You’ll find valuable resources on a variety of topics on our website. Below are the answers to common questions on wholesale food products.
What Are the Biggest Suppliers of Wholesale Food Products?
Sysco is the biggest food distributor not only in the US but also worldwide. They employ more than 76,000 people across their over 330 distribution centers in 90 countries. The company serves more than 600,000 customers worldwide. US Foods is another major distributor of wholesale food products. They primarily focus on food service companies such as restaurants, cafeterias, and institutional customers that need a supplier of wholesale food products. Gordon Food Service and Performance Food Group are also among the biggest broadline food distributors. KeHE is another big supplier. Their primary focus is on organic and natural food products.
What Are the Different Types of Food Wholesalers?
Most people associate the term food wholesaler with large companies like Sysco and US Foods. Big broadliners serve a large percentage of the grocery chains and hospitality groups. However, that’s not the only type of food supplier. Here are the main categories.
- Broadline distributors – suppliers that offer a wide selection of wholesale food products;
- Specialized suppliers – companies that specialize in one or two product categories;
- Producers – farms, manufacturers, and growers often do bulk deliveries of their goods.
- Local distributors and resellers – smaller companies that purchase from large broadliners and sell to businesses in their area;
- Cash-and-carry stores – wholesale stores that are often open to the public.
Is Selling Wholesale Food Products Profitable?
Although wholesale distributors have fairly low profit margins, they can benefit from economies of scale. Therefore, selling in bulk to businesses in different niche markets can be a profitable endeavor. Some suppliers of wholesale food products aim to increase their profit by offering additional services and value to their customers. For example, they might organize training and classes or offer product-sourcing services. Suppliers might also invest in packaging capabilities and offer such services in addition to white labeling services. Wholesalers might also benefit from offering more flexibility in terms of minimum order quantities (MOQ) or emergency deliveries at an additional cost. Read more on how to become a wholesaler.
Sell Wholesale Food Products on BlueCart
Whether you’re a producer who wishes to sell quality products to restaurant managers and catering businesses or you wish to choose between different suppliers, BlueCart is the solution for you. Our platform connects food distribution companies with thousands of businesses across the country. Schedule a free demo today and see how BlueCart’s software can improve your business processes and help you streamline wholesale ordering.