How do I get local grocery stores to carry my value-added products?

Over the years, value-added entrepreneurs have found it very challenging to get their products on the shelves of local grocery stores. UT Extension publication PB 1719 "How To Get Value-Added Products Into Local Grocery Stores" presents the results of a survey conducted with management personnel of grocery stores <http://www.utextension.utk.edu/publications/pbfiles/PB1719.pdf >. The survey was developed to obtain information needed to evaluate how receptive local grocers are to carrying value-added products produced in Tennessee and to identify the primary steps/procedures/conditions that value-added agri-entrepreneurs should consider to best target local grocers.

The results presented in this publication provide information that will be helpful for farmers and agri-entrepreneurs planning to market value-added products through local grocery stores.

According to the results of the study, wholesalers are the most frequently used suppliers of products to grocers, and small food producers (including farmers and entrepreneurs) supply the smallest percent of products to grocery stores. Therefore, value-added entrepreneurs should consider working with/through wholesalers to get products to local grocery stores.

"Shelf-space," "customer recommendations/requests" and "a proven sales record" were indicated as the most important criteria used by grocers to decide whether or not to accept a new product. Because there are so many products that compete for limited shelf space in grocery stores, small food producers should consider ways for their product to compete for this limited space. For example, the size, shape, amount and type of packaging and use of shelf space options such as hanging racks should be considered. In addition, customer comments should be solicited during sampling opportunities or through alternate marketing opportunities that substantiate positive customer reaction. The comments should be summarized and communicated to the grocer. Small food producers should also document and communicate to the grocer evidence of a strong sales history, including number of units and/or gross sales over a specific time period. This might be accomplished through the use of effective brochures and charts.

Survey participants indicated that "price," "image" and "taste" were the primary reasons for products remaining on the shelf after the first year. In addition to developing products that are price-competitive, appealing to the eye and pleasing to the palate, small food producers should make sure their products = attributes are effectively communicated to potential consumers and grocers through consistent promotional activities, free sampling, effective packaging and labeling and educational materials.

Survey participants also indicated that their decision to carry a product is influenced by the entrepreneur = s ability and willingness to assist with or carry out such tasks as delivery, stocking, inventory, promotion and advertising. Therefore, in addition to producing value-added products, the entrepreneur should consider taking an active role in various marketing tasks. For example, the value-added entrepreneur might assist grocers with advertising expenses, do demonstration/in-store product sampling and/or provide the grocer the first five cases of the product free. The entrepreneur might also take the responsibility of maintaining an inventory of the shelves and/or stockroom product level and even agree to a next-day delivery when product levels are low.

More than three-fourths of the survey participants indicated that the Pick Tennessee Products (PTP) logo contributes to increased sales in Tennessee products, and more than half indicated that the inclusion of the PTP logo on products makes them more willing to carry the product in their store. Therefore, small food producers should carefully consider including the PTP logo on the labels on products sold in Tennessee stores. However, because of the response of the grocers in Kentucky, the use of the logo outside the state of Tennessee should be carefully evaluated.