New England is a leading region for food business launch and expansion. In partnership with Canadian Flavors Food Festival and the Consulate General of Canada in Boston, Branchfood hosted, “Expanding your Food Business to the U.S.? First Stop, New England.” The event brought together leaders in the food industry to discuss viable paths to market, what it takes to get products into retail and foodservice sales channels, and how emerging businesses can succeed in an omni-channel environment.

Event panelists included:

Kevin Mannering, Chief Development Officer at Rodeo CPG
Matt Cotton, Founder at Rooted Food Sales
Art Papazian, Founder at Specialty-Natural Food Consulting & Management Co.
Nina Brouwer, New Products Sourcing Manager at Chex Finer Foods
Hosts: Lauren Abda, Founder at Branchfood and Branch Venture Group (Moderator) and Colette Lekbourg (Trade Commissioner at the Consulate General of Canada in Boston)

Why New England?

Academic institutions that advocate for health and wellness, and have representatives of in the field
An Ecosystem that fosters small businesses and startups support opportunities such as accelerators, incubators, and funding, as well as community support where collaboration and coexistence with other startups is encouraged.
A wealth of Knowledge in the food industry. In addition to academic institutions, food consultants, food services, and a knowledgeable community is easily accessible.
Large grouping of natural foods. Large customer bases and numerous competitors.
Diversity and ethnicity, condensed population. Meeting different customers with small proximity - easy transportation.
Resource Availability: Distributors in the different sizes, multiple avenues to sell, numerous diverse vendors…

How does the consulate of Canada in Boston support Food Businesses in their entry to the New England market?

Business advice and insights.
Connect businesses to key contacts to the region.
Business opportunities and support.
Resolve business problems in foreign markets.
Through their partners in Canada, they connect entrepreneurs to important webinars and events, and leverage local partners.

To inquire for more information about how the Consulate General of Canada can help your business enter the New England market, please reach out to Colette Lekborg at colette.lekborg@international.gc.ca.

Main Points of Discussion

We want to set Canadian entrepreneurs up for success in expansion. What can companies do today (remotely!) to get things organized and underway?

Be Flexible: Businesses entering the U.S. market for the first time have to be flexible to American consumer needs. - Identify the important channel > Identify the costs > Ship quantities with strategic prices.

Any particular strategies on how to get started with channels?

Independent small retailers have low barriers for entry
Growth would involve distributors

How can entrepreneurs learn about competitors in the market and place their pricing strategy in an effective manner?

Instacart and Mercado give you a solid idea as to what products are selling for.
Build price from the Bottom Up: make sure you have enough to satisfy costs and then move on to profit.
Build price from Top to Bottom: What is the value of your product?

Foodservice establishments are plenty in New England from Universities, to hospitals, catering, athletics, and more. How can a food business begin to explore opportunities for sales in this channel and what’s different about pursuing foodservice as opposed to retail?

There are 7-8 food service categories. Identify the ones that fit best for you > Identify the biggest customer base in that category > This will force distribution > Get selling!
Outreach is less limited in food service and product prices would defer between retail and food service locations.

Do Food service businesses have an interest in a particular category?

Beverage is the most challenging with the limited refrigerated place mainly dominated by Coke and Pepsi.
Short shelf life products are challenging. You would have a lot to prove: Stable sales and customers.
Frozen and the stable products are good.

What information do distributors need for a successful partnership?

Have strong pricing structures: The distributor and retailer combined will add approximately 35-45% to your margins.
Pack sizes: distributors want the smallest packages. The smaller the case, the smaller the financial obligation. Also the smaller the pack out, the better - stores want everything to fit on the shelves.
Samples to distributors > high ROI
Marketing Programs
Slotting/placement allowances
Insurance
Importing - Canada is one of the easiest/least complicated

*Distributors look for businesses that are starting. They want products that are not available at a regular wholesaler - products that are not being distributed in masses.

Where are some areas that entrepreneurs can leverage to negotiate a good deal?

Basic costs and requirements are set. You might be able to differ how you will be giving them that money (through other strategies) in a way that is more beneficial for you.

Are you expanding your food business to the U.S.? Learn more about Branchfood's work in collaboration with the Canadian Consulate in Boston to support Canadian food startups expanding to the USA.