Distributors & Distribution

Choosing a distributor is one of the highest-stakes structural decisions an emerging CPG brand makes, and it is expensive to reverse. The distributor you sign shapes your retail reach, your effective margin, your promotional obligations, and how much working capital you need to hold. Two brands with identical products and identical shelf placement can have very different economics purely because of how their distribution is structured.

The tradeoffs are real in both directions. National distributors buy you reach and credibility with chains that will not take direct shipments, but they add fees, deductions, and a layer of separation between you and the buyer. Regional distributors and DSD often give you better service and tighter feedback loops in exchange for a smaller footprint and more relationships to manage. Going direct preserves margin and control until the volume outgrows your ability to ship it.

These posts cover the comparisons that matter — UNFI against KeHE, national against regional, distributor against direct — plus the parts founders discover late: how slotting and free-fill actually get charged, what a distributor agreement commits you to, and how to keep an account healthy once you are onboarded and no longer the new brand.

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