The Difference Between A Food Distributor And A Food Wholesaler

Posted By : Aubrey Mead , on May, 2022

 

While the terms food distributor and food wholesaler seem similar, they are in fact very different. It is important that you understand the difference between the two.

Basic Definition

A food distributor distributes food and other goods to companies that supply food in one way or another, such as a grocery store, school cafeteria, or restaurant. A food wholesaler provides products in large quantities to retailers, hotels, restaurants, and consumers.

A Closer Look at Food Wholesalers

A food wholesaler purchases products in bulk and then sells them to retailers as a way of generating revenue. They act as an intermediary between the businesses that supply food to customers directly, such as restaurants, and the food producer.

Food wholesalers buy goods at a lower price because they buy large quantities. Then, they sell those goods to retailers at a higher price in order to earn a profit. Retailers who buy in bulk from a food wholesaler will also save money as opposed to purchasing the items individually. In addition, buying in bulk also reduces the risk of disgruntled customers and other disruptions because the retailer is less likely to run out of an item.

Food wholesalers are an important link in supply chains. They have immense collections in warehouses that make it possible to supply goods to a number of different retailers, from small convenience stores to large restaurants. A food wholesaler receives a lot of stock from a wide variety of manufacturers, breaks it down into small quantities, and moves these on to brands for sale.

Unlike distributors, food wholesalers do not have contracts. This makes it possible to stock products from competing brands without any conflict of interest. In addition, a wholesaler does not enter into any promotion activities to market the manufacturer’s goods. Instead, they rely on the supply and demand of the product to generate profits. While food wholesalers used to only deal with retailers, more and more are opening their doors to sell to consumers.

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