Food Brokerage

We examine the often misunderstood functions of food brokerage by exploring the various roles brokers play and their importance to the industry.

Food brokers generally work independently with food producers and manufacturers, helping launch, manage and expand sales and marketing efforts for their products. These marketers also assist food buying companies in selling items to chain wholesalers and independent retailers.

Most food brokers operate within specific geographic areas. Sometimes, brokers in a region or continent may consolidate to form a global food brokerage firm with worldwide operations. Multinational food brokers are critical in international food trade as they help local manufacturers access foreign markets by marketing products overseas.

Lower Costs Vs. Direct Selling

While manufacturers can self-market, brokers provide greater efficiency and specialization. As John Wopperer, CEO and founder of Ventures Sales Group noted, brokers achieve efficiency by serving many clients simultaneously, lowering costs versus direct selling.

Brokers fall into retail or food service categories within the industry. Retail includes grocery and major retailers like Walmart, Kroger, Costco and Target with hundreds of outlets worldwide stocking thousands of overseas brands. Natural food stores also use retail brokers.

Food service brokers primarily engage ready-to-eat outlets. Restaurants and fast food represent the largest food service segment.

Broker services encompass three primary roles: linking producers and buyers through networks with manufacturers, wholesalers and stores; market research on product performance and competitor comparisons; and developing short and long-term sales goals. Additional functions include promotional campaigns, packaging design, and administrative tasks like tracking shipments and payments to free manufacturer focus.

Great brokers possess marketing, deal negotiation, customer handling, and interpersonal skills. Marketing skills maximize revenue and distribution through exceptional sales abilities. Negotiation skills ensure maximum client value. Customer handling builds confidence and trust with potential buyers. Interpersonal skills facilitate industry networks and product-buyer matches.

Brokers benefit manufacturers by outsourcing sales functions, providing valuable market feedback, and offering a cost-effective alternative to dedicated sales representatives while leveraging strong industry networks.