Performance Story
Distribution is a key step in product commercialization and value chain development that is often overlooked by specialty food entrepreneurs as they focus on business establishment, product development and market positioning. Distribution is a particular challenge for both current and start up specialty food companies in Manitoba. Currently specialty and health food stores in Manitoba purchase the majority of their products from Toronto or Vancouver because an adequate Manitoba-based specialty food distributor option does not exist. At the same time most retailers and food service operators prefer to have as few suppliers or distributors as possible to minimize paperwork and drop charge penalties. A local specialty food distributor could assist emerging specialty food suppliers in achieving market readiness and championing value chain relationships with retailers which has been a challenging and critical issue for many emerging specialty food suppliers.
This feasibility study looked at distribution from both the supplier and retailers of specialty foods. The study included 20 supplier surveys and 12 retailer surveys. Surveys were completed via direct contact and letters were sent to all survey participants summarizing the results. The report was also shared with some industry partners.
The survey results indicated there is interest in and need for a distributor for specialty products within Manitoba. Input gathered from both retailers and suppliers identified a number of challenges they faced that a having a distributor would help address. Examples of these challenges included resources and knowledge to bring a product to market on the supplier side, and on the retailer side, availability and consistency of supply.
Based on the results, the applicant is looking to procure funding to move forward with a pilot implementation project of this distribution concept.
