Specialty Food Magazine

Summer 2019

Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.

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122 ❘ SPECIALTY FOOD MAGAZINE specialtyfood.com S pecialty food makers seeking to get their products onto the shelves of discount food retailers need to remember that those types of stores are called "discounters" for a very good reason. The retail prices that makers might be accustomed to seeing for their products in specialty food stores or supermarkets will not be found in the discount world. Accordingly, selling through discount channels requires manufacturers to think differently about their revenue and profit calculations—and in fact, in many cases it may not be feasible for small specialty food manufacturers to pursue the discount retail channel. Still, there may be good reasons for specialty food makers to work with discounters, such as to sell through product that has been discontinued or is approaching its expiration date. That strategy may not be appropriate for low-priced retailers such as Walmart, Target, or Aldi, but it is a viable way to sell product through retailers such as Grocery Outlet or through chains that specialize in discounted general BY MARK HAMSTRA Selling to Discounters: How Low Can You Go? Food makers can gain exposure to new customers through sales to low-price operators. article bug specialtyfood.com ❘ SPECIALTY FOOD MAGAZINE 122 specialty food maker

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