For CPG brands, getting into retail is the holy grail. Seeing our products on the grocery or department store shelves is a pinch-me moment.
But how do companies leap from selling at the local farmer’s market to being on shelves in Target, Whole Foods, or CVS?
We spoke with Laurel Orley, co-founder of Daily Crunch Snacks, about getting her product into retail and suggestions for other entrepreneurs looking to do the same.
Launched in March 2020, Daily Crunch’s sprouted snacks are available in 5,000 stores across the United States, including Foxtrot, CVS, and Sprouts Market.
Here are some of her tips.
It’s One Thing to Get Into Retail, and It’s Another to Do the Work to Stay in Retail – Congratulations, you've received your first purchase order from a major retailer. Now comes the challenging part of maintaining your spot on the shelf. In the first year, you should check in with the retailer regularly. How is the product doing? What promotions can be utilized (buy one get one, 50% off)? However, ensuring you have the necessary capital on hand through investors or crowdfunding efforts to fulfill orders is CRUCIAL.
Recognize When to Transition from Sampling to Encouraging Product Orders – As you work to get into a retail partner, giving away products for free (or sampling) will be part of the "wooing" process. However, the freebies should politely turn into a paid account at some point. Your business cannot afford to give out products without bringing anything in return. However, you can encourage consumers to purchase products and reward them through Go to Aisle.
Sign Up on Aisle – Aisle is a technology platform that turns a marketing promotion into an in-store purchase. Check out the Daily Crunch Snacks page here.
Create a Retail Presentation Deck (Different than a Pitch One) – You have a pitch deck, an investor’s deck, and now a retailer’s deck. How is it different? A retail pitch deck should have more detailed information on the product itself – flavors, packaging sizes, suggested promotions, etc. Check out How To Pitch To Retail Buyers For CPG Brands from SocialNature for examples on retail pitch decks.
Differentiate Yourself from the Competition – What is your product’s Unique Value Proposition? Is it gluten free, upcycled certified, or vegan? Retail is known to be highly competitive, and your packaging should clearly differentiate your product's unique features and those most compelling to your audience.
Send Monthly Follow-Ups – Have you sent e-mails to retail buyers only to get nothing in return? Follow up strategically. Some CPG brands send monthly e-mail updates to investors, potential supporters, buyers, and partners. These e-mails include recent press mentions, new product announcements, and other noteworthy items. Keep this as positive as possible. Check out "Why Investor Updates Are Important (Even If You Don’t Have Investors)" for more information.
Utilize Social Media Platforms to Reach Out to Buyers - One of the most common questions we get is – do you know who to contact from (insert retail name) to get into their store? Here's a trick. Follow some of your favorite CPG entrepreneurs on LinkedIn (including Laurel). When those founders post about their products in new retail partners, they might tag people who helped. Check out those individuals and reach out accordingly.
Be Proactive and Suggest Times to Showcase Your Brand – March is Women's History Month, May is Mental Health Month, and September 15 – October 15 is Hispanic Heritage Month. If your brand makes sense for any celebration month, note it accordingly to the buyer.
Become a WBENC Company – Not only will you get access to supplier diversity and procurement executives at hundreds of major U.S. corporations and federal, state, and local government entities, but you'll also have negotiating leverage with prices and fees, which brings us to the final tip.
Work on Your Negotiating Skills – Negotiating is an acquired skill and can be difficult for many entrepreneurs, especially women. How to be more confident? Know your numbers and explain why your product will help the retailer and buyer. Remember - what's everyone's goal – to move product and make MONEY. Show the buyer how your brand can do that. Check out "Negotiating Successful Retail Contracts" for more specific terminology and things to look out for.
Exploring a retail strategy is an intelligent step for every CPG company. However, deciding to enter the big box stores is unique to each brand.
There are many factors to consider, including the economics behind shelf space vs. the cost of revenue, logistical hurdles, and the time needed to manage each retail presence. Ensure your brand is in peak retail form to avoid overpromising and under-delivering. If you still need to get retail ready, work on other selling options, including direct-to-consumer, focusing on your e-commerce sales. You can always revisit retail once you are further along in your business.
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