When I started TeaSquares, I had no idea how the CPG Industry worked, who the major players were, and my options for building a business. I thought this would be a big disadvantage for me. The good news is there is no single path in the industry that guarantees success. You can build your own unique path that’s right for you.
What I do recommend is understanding how the industry works, so you can purposely break from “industry standards” rather than stumbling through them.
Path to Market
The food industry has developed along two main routes to get your product into the hands of customers, retail and E-commerce. CPG companies have to work with a variety of intermediaries to get their products to market.
Suppliers: Provides your ingredients and packaging.
Manufacturer: The company making the final product. This could be yourself or a 3rd party.
Distributor: Transports your product to the retailer.
Broker: An optional outside sales consultant that is sometimes needed to get into certain grocery stores.
Retailer: Provides a shelf for customers to purchase your product.
Customer: The person purchasing your product for themselves or someone else.
Selling Website: The E-commerce site selling your product.
3rd Party Fulfillment: A warehouse that holds your product until it’s ready to ship.
Courier: Company that delivers your products to the customer (UPS, FedEx, USPS)
While these are the two most common paths to market, there are also Farmer’s Markets, B2B selling platforms, direct selling events, and foodservice.
We’ll go into more detail on all of these throughout the book.
Begin With The End in Mind
Even though you’re just at the beginning, I want you to take a moment and visualize where you want to be in the end. Why? Because you have to know where you want to go, in order to get to your destination.
“Begin With the End in Mind means to begin each day, task, or project with a clear vision of your desired direction and destination, and then continue by flexing your proactive muscles to make things happen.” – Franklin Covey