How to Sell Farm Products to Grocery Stores & Supermarkets

Learn how to successfully sell your farm products to grocery stores. Get tips on market research, packaging, pricing, and building relationships with buyers.
Fresh produce for sale at grocery store/supermarket
Written by
Lisa Pham
Published on
September 24, 2024

Did you know that nearly 80% of consumers actively seek out grocery stores that prioritize food from local farms? This growing demand presents an exciting opportunity for farmers and small producers eager to connect with retail markets. As shoppers increasingly prioritize nutrition and sustainability, the potential for farm-to-shelf sales is brighter than ever.

Getting your farm products onto grocery store shelves can be challenging, but with the right approach, it's entirely within reach. Proper preparation and knowledge can help farmers successfully enter the retail market and significantly increase revenue.

In this article, you'll find a complete guide to selling your farm products to supermarkets and wholesale buyers. We cover everything from understanding buyer preferences to building brand recognition and relationships with grocery managers, offering actionable steps for successful market entry.

Key takeaways

  • Retail sale success begins with knowing your competitors and potential customers. 
  • Reach out to produce buyers and grocery chains with a solid sales pitch. Highlight the value of your locally sourced and organic products.
  • Package and label your products effectively. Good packaging extends shelf life, reduces food safety issues and attracts customers, while accurate labelling ensures compliance with regulations.
  • Develop enduring relationships with grocery stores’ produce managers. A personal connection can lead to consistent supply opportunities.
  • Use online farm SaaS tools like Local Line to simplify sales and distribution. It can handle high volumes of product, and keep track of orders efficiently.
  • Implement a food safety plan and secure product liability insurance to protect your business and assure grocery stores of your credibility.

👉 We’ve put together a whole library of resources on how to better position your farm to sell to different wholesale channels, from food service, grocery, and restaurants. Get the Wholesale Readiness Program today!

Benefits of getting your products into a grocery store or supermarket

Getting your farm products onto the shelves of food retailers offers a number of advantages such as:

Increased sales volume

Grocers have high foot traffic, leading to greater sales volume than selling through farmers' markets or direct marketing alone.

👉 For more sales tips from high-selling farms, download our free guide on sales tips for farms from farmers.

Brand recognition and loyalty

Regular presence in retail outlets builds brand recognition, prompting repeat purchases and customer loyalty.

Wider customer reach

Grocery chains often have multiple locations, offering exposure to a more extensive customer base beyond your local area.

Reliable revenue stream

Binding agreements with superstores can provide a more predictable and consistent income compared to other sales avenues like seasonal farmers' markets.

Economy of scale benefits

Selling in larger volumes often allows for more efficient production and distribution, potentially lowering per-unit costs.

Value-added opportunities

Groceries may support a range field of products, including ready-to-eat foods and value-added products, which can yield higher profit margins.

Year-round sales potential

Unlike seasonal farmers markets, food chains operate year-round, offering a steady market for your products irrespective of the season.

What products are grocery stores looking for?

Supermarkets and grocery stores are constantly on the lookout for products that align with changing customer preferences. For example, nearly 47% of shoppers are more likely to choose items with USDA Organic certification. To succeed, it’s necessary to know what grocery items they prioritize. Currently, stores are focusing on:

  • Locally sourced products: With consumers becoming more conscious of their food sources, there’s a growing preference for locally produced.
  • Unique and specialty items: Products like heirloom vegetables, artisan cheeses, or specialty meats stand out from typical offerings and attract attention.
  • Value-added products: Prepared foods, such as jams, sauces, and pickled items, provide convenience and appeal to customers seeking more than just fresh produce.

How to identify what grocery stores need

To effectively match your products to food retailer needs, it’s important to focus on two main areas: understanding the market and conducting thorough market research.

Understanding the market

Knowing what drives consumer demand will help you tailor your products to grocery store requirements. Here are some practical steps:

  • Visit grocery stores: Observe what’s popular on the shelves, particularly in your category. Take note of packaging, pricing, and any gaps that your products could fill.
  • Talk to store staff: Managers and employees can provide insights into which products are selling well and what customers are requesting. This helps you identify market opportunities.
  • Use industry data: Look at consumer reports and market studies to identify trends, such as the growing demand for organic or local products. Use these insights to refine your offerings.
  • Survey your audience: Leverage social media or email lists to ask potential customers about their preferences when shopping at grocery stores. Their feedback can guide your product development.
  • Monitor farmers’ markets: Observe what draws interest and why at local farmers markets. Insights gained here can help you align your products with consumer preferences before approaching wholesale buyers. What are your top-sellers? Why?

Conducting market research

Thorough market research is crucial before pitching your products to grocery buyers. Here’s how to do it effectively:

  • Define your target audience: Understand who your ideal customers are, including their demographics and buying habits. This will help you focus your product and marketing efforts.
  • Test your products: Use farmers' markets, your online store, your existing customer base, or small retail outlets to gather feedback and validate your ideas. This direct interaction helps refine your products based on real consumer reactions.
  • Analyze data: Track sales performance and customer feedback to understand what works. Use this data to improve your product and craft a strong pitch to grocery stores.
  • Study competitors: Analyze similar products to see what sets them apart. Identify your unique selling points, whether it's superior quality, distinctive packaging, or a compelling farm story.
  • Develop your unique selling proposition (USP): Clearly define what makes your products special and valuable. This is crucial when approaching buyers and differentiating your brand.
  • Create a compelling pitch: Use your research to build a narrative that highlights how your products meet consumer demand and align with store goals. A strong, well-prepared pitch can make a significant impact.

What grocery buyers look for in suppliers and producers

Local farm products are gaining popularity among grocery buyers who are looking for unique, sustainable options to meet customer demand. It seems every grocery, whether it’s a chain or independent location, is growing its local program. This growing trend presents significant opportunities for farmers and small producers. When grocery buyers evaluate suppliers, they focus on several important aspects beyond just product fit.

We sat down with John Crane, General Manager of Portland Food Co-op, to learn what they look for when working with new suppliers and producers.

Understand retail requirements

Suppliers need to recognize the difference between selling to a retail store and selling at a farm stand or farmers' market. This includes adjusting packaging and presentation to meet retail standards and ensuring that products are durable enough to hold up in a retail setting.

Show tech savviness and adaptability

Farmers who are comfortable using technology for orders, invoicing, and communication are preferred. While some producers may still use traditional methods, the ability to embrace digital systems simplifies processes and builds stronger relationships with buyers.

Ensure consistent product quality

Delivering high-quality products consistently is crucial. Buyers prioritize freshness, traceability, quality, flavor, and appearance for produce, while safety and shelf life are top concerns for dairy and other perishables.

Have a reliable product supply

Grocery stores rely on suppliers to meet their product volume needs without unexpected shortages. A steady and dependable supply chain for a successful partnership.

Provide clear communication

Professionalism and clear communication are key to maintaining a strong relationship with buyers. Suppliers should be responsive and proactive in their interactions to build trust and credibility.

Finding the right match between a store's needs and a producer's offerings is crucial for long-term success.

How to get your product in grocery stores

As we've seen, entering the retail market can seem daunting, but with the right approach, farmers and small producers can successfully sell their farm products to grocery stores. The key is to understand the preferences and operations of these businesses and adapt your sales strategy to meet their needs.

1. Prepare your farm products

The first question to answer is: can I meet the demand of this buyer

Quality and consistency are the foundation of a strong relationship with grocery stores. To prepare your list of products, ensure that each batch maintains the same high standards for freshness and taste that buyers expect. 

Proper packaging and labeling are also critical. Your products should be packaged in compliance with industry regulations, which typically include information on ingredients, nutrition, and potential allergens. Packing produce correctly ensures it stays fresh, appealing, and compliant.

2. Price your products

Wholesale pricing is a delicate balance. Start by researching market prices and assessing what your competitors charge for similar items.

Calculate your costs carefully to determine a price point that is both profitable for you and competitive within the market.

Consider using online farm sales platforms like Local Line to manage your price lists, order management, and offer clear pricing strategies to grocery stores, which may include bulk discounts or seasonal promotions to make your products more appealing.

3. Build your farm brand

A strong brand identity and market presence can help differentiate your farm products from competitors. Create a cohesive brand image through creative farm logos, packaging, and farm marketing materials such as brochures and business cards.

A professional farm website and active social media presence for your farm can extend your reach and connect you with both consumers and retail buyers. Telling the story of your farm and products can help build an emotional connection with your audience, further enhancing your brand's appeal.

4. Identify grocers, co-ops and supermarkets to target

Focus on identifying grocery stores, food co-ops, and supermarkets that align with your values and product range. Research the prospects in your area that are known to carry locally sourced and organic products.

Networking at events like agricultural tradeshows, farmers markets or industry expos can provide valuable contacts and insights into potential targets. Keep a list of stores to approach and tailor your sales pitch to emphasize how your products can meet their specific needs and customer demands.

5. Pitch your products

Crafting a compelling pitch is crucial. Prepare informative and persuasive presentations that highlight the unique qualities of your farm products.

Schedule meetings with store managers or produce buyers, and be persistent with follow-ups. A well-executed pitch should communicate the value your products bring to their stores and the advantages of supporting local farming.

6. Make a deal

Negotiation is all about finding mutual benefits. Understand what grocery buyers value, such as exclusivity, first access to new products, or flexible payment terms.

Be prepared to answer common questions and address any concerns or objections. Present yourself as a reliable business partner by demonstrating your ability to provide a consistent supply and meet their volume requirements.

Finally, negotiate terms that respect both their margins and your profitability.

By following these steps, you'll be well-equipped to navigate the complex but rewarding process of selling your farm products to grocery stores. Remember that perseverance, professionalism, and a clear understanding of market dynamics are key to your success in the retail world.

How to build and maintain relationships with grocery store managers and buyers

Once you have a relationship with a grocery store manager or buyer, it’s important to maintain and nurture that connection to keep your products on their shelves. Here’s how to do it:

  • Effective communication: Highlight the unique benefits and market potential of your fresh produce, dairy, or value-added products. Tailor your pitch to the store’s specific needs, focusing on how your offerings can enhance their selection.
  • Regular follow-ups: Continue the conversation after your initial meeting. Schedule periodic check-ins to discuss product availability, any changes in production, or new items that might interest them.
  • Excellent customer service: Address any issues promptly and professionally. Show your commitment to maintaining high product quality and a dependable supply chain.
  • Food safety and liability: Reassure grocery stores of your dedication to food safety standards and provide information about your product liability insurance. This helps build trust in your business practices.

How to prepare your food products for distribution

Now that you’ve found a buyer, how do you prepare your farm products for distribution? As you grow your presence in grocery stores, you'll need to ensure your operations can handle the increased demand.

1. Assess your production capacity

Before approaching grocery stores, it's essential to evaluate your ability to consistently meet demand without compromising quality. This involves a thorough examination of your:

  • Current production capabilities: Can you increase output without sacrificing quality?
  • Storage facilities: Do you have adequate space to store increased inventory?
    Staffing: Is your team equipped to handle larger orders and potentially longer hours?
  • Supply chain: Can your suppliers meet increased demand for raw materials?

Remember, consistency is key in the retail world. Grocery stores need assurance that you can deliver the same high-quality products week after week, month after month with a predictable time of arrival.

2. Optimize your distribution

Efficient logistics are crucial for maintaining product freshness and meeting delivery schedules. Consider the following:

  • Transportation: Invest in reliable transportation methods, whether it's refrigerated trucks for perishables or sturdy crates for produce.
  • Refrigeration: Ensure you have adequate cold storage for temperature-sensitive items like dairy products, meat, or fresh produce.
  • Packaging: Develop packaging that not only looks appealing on store shelves but also protects your products during transit. Consider eco-friendly options to appeal to environmentally conscious consumers.
  • Inventory management: Implement a robust inventory system to track stock levels and predict future needs. Local Line's inventory management software can be invaluable for this purpose.

3. Ensure food safety compliance

Food safety is non-negotiable in the retail sector. Take the appropriate measures to meet their demands, as every grocery may have slightly different requirements.

Maintaining food safety and supply chain integrity is mission-critical to keeping customers satisfied and complying with new regulations. Many in the food and agriculture industry are aware of the growing importance of the Food Safety Modernization Act section 204(d) Requirements for Additional Traceability Records for Certain Foods (FSMA 204) to enable food to be traceable from field to fork. 

👉 Check out our article Build Your FSMA 204 Knowledge to build your knowledge of this key regulation and to learn how to best prepare. 

4. Consider working with food distributors

As your business grows, partnering with food distributors can help you reach a wider market and manage larger orders. Here's when to consider this option:

  • When direct marketing cannot reach enough potential customers
  • To handle fluctuations in high volumes of product
  • For guidance on food production and retail sale compliance
  • When you're ready to expand into regional or national markets

Distributors can provide valuable services such as:

  • Warehousing and transportation
  • Sales and marketing support
  • Navigating complex supply chains
  • Managing relationships with multiple retailers

5. Develop a scalable production plan

As you prepare for retail distribution, think about scalability:

  • Identify potential bottlenecks in your production process and plan solutions.
  • Consider investing in equipment that can handle larger volumes.
  • Develop relationships with multiple suppliers to ensure a steady supply of raw materials.
  • Create contingency plans for unexpected surges in demand or supply chain disruptions.

6. Leverage technology

Utilize technology to streamline your distribution process:

  • Implement an order management system to handle increased volume and complexity of orders.
  • Use route optimization software to plan efficient delivery routes.
  • Adopt a Customer Relationship Management (CRM) system like Local Line's CRM for farmers to manage communications with buyers and track sales trends.

Pro Tip: Local Line's suite of sales features, including e-commerce, inventory management, and customer management features, can significantly simplify your transition into retail distribution.

7. Build strong relationships

Lastly, remember that successful distribution is about more than just moving products. It's about building relationships:

By thoroughly preparing your food products for distribution, you'll be well-positioned to seize the growing opportunity in the retail market. Remember, the key to success lies in maintaining consistent quality, optimizing your operations, and building strong relationships with your retail partners.

Scale your farm and food product operations with Local Line

As demand for fresh, local, and organic products grows, scaling your farm operations becomes essential. Local Line's platform offers powerful online tools to support this growth while maintaining product quality:

  1. E-commerce: Expand your reach with online sales capabilities.
  2. Subscriptions: Implement standing orders for steady income.
  3. Inventory management: Track stock levels in real-time to meet demand efficiently.
  4. Orders and invoices: Manage transactions seamlessly in one intuitive system.
  5. Customer management: Build and nurture a loyal customer base for sustainable growth.

Local Line streamlines your sales, simplifies operations, and makes scaling a natural part of your farm's growth. By leveraging these features, you can focus on what you do best - producing high-quality products - while the platform handles the complexities of growth and distribution.

Get started with Local Line

Learn why Local Line is trusted by thousands of farmers and food hubs around the world.

Frequently asked questions (FAQs) about how to sell to grocery stores

What are the key factors grocery stores consider when choosing products?

When selecting products, grocery stores prioritize quality, availability, consistency, packaging, pricing, and demand. Product quality must be high to meet consumer expectations and legal standards; consistency is key to maintaining a reliable brand image. Packaging needs to be safe, practical, and visually appealing, while pricing should reflect both value for the consumer and a fair margin for the retailer. Lastly, product demand steers grocery stores towards items that are expected to sell well, often influenced by trends towards locally sourced and organic foods.

How do grocery stores get their products?

Grocery stores source their products through various channels including distributors, direct from producers like local farmers, and wholesale markets. Large grocery chains may prefer distributors for their ability to supply large volumes and handle logistics. Direct marketing appeals to those seeking fresh produce and local farm products, facilitating a closer connection to the source of food production. Wholesale markets are often used for purchasing bulk items at competitive prices.

How can I ensure my farm products meet health and safety regulations?

To meet health and safety regulations, educate yourself on both local, state and national requirements and ensure that your food safety plan is compliant. This involves implementing proper handling, packaging procedures, and maintaining clean facilities. Quality control measures should be in place to detect potential issues early, and staff should be trained to adhere to food safety protocols. It may also be prudent to secure product liability insurance to protect your business.

When should I consider scaling my operations?

Consider scaling your operations when you are consistently meeting current demand and have identified clear market opportunities for expansion. This could involve increasing your volumes of product, diversifying your offerings with value-added products, or expanding into new markets. Scaling should be done with a strategic plan to ensure you maintain product quality and can manage increased production and distribution effectively.

How can I make my product packaging more attractive to retailers?

To make your product packaging more attractive to retailers, it should not only meet regulatory guidelines but also capture the essence of your brand and appeal to consumers. Use high-quality materials, clear labeling, and consider incorporating elements that indicate the product's local or organic nature. It's important that packaging safeguards the shelf life and freshness of your goods, such as in the case of fresh fruit, dairy products, or ready-to-eat Foods. Good packaging differentiates your products on the shelves and can influence both produce managers and consumers in their buying decisions

Lisa Pham Local Line
Lisa Pham
Lisa is Local Line's Content Marketing Specialist. Helping with their content strategy, she equips farmers with the tools and knowledge they need to succeed.
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