Food Broker vs. Distributor: What Every Food Brand Needs to Know Before Scaling

Learn the difference between food brokers and distributors, when to hire each, and how to find the right fit for your CPG brand. Expert insights from 6 Seeds on scaling your retail and distribution strategy.

For a CPG Startup, Understanding Brokers and Distributors Is Essential

At 6 Seeds, we’ve spent years helping emerging food and beverage brands grow strategically — guiding founders as they expand from farmers’ markets to major retail shelves. One of the most common crossroads new CPG founders face is deciding how to get products into stores at scale.

Do you need a food broker to open retail doors, or a distributor to manage logistics and get your product onto those shelves?

Both play vital — but very different — roles in a brand’s retail journey. Understanding how they work, when to engage them, and what to look out for can make the difference between costly trial and sustainable growth.

What They Do and Why They Matter

Food Brokers: The Sales Connectors

A food broker (sometimes called a sales agent or CPG broker) acts as the link between your brand and retailers — but they don’t take ownership of your product. Their strength lies in relationships and representation.

Brokers pitch your products to retail buyers, manage listings, and help secure or maintain shelf space. They may also support promotions, category reviews, and merchandising coordination. For many startups, a broker becomes your outsourced sales team, giving you retail access without the overhead of hiring full-time staff.

Brokers typically work on commission, usually between 5 – 20 % of sales, depending on the services offered and market size. Some operate regionally; others specialize by channel (natural, conventional grocery, or foodservice).

💡 Think of a broker as your brand ambassador to retail — they sell your story as much as your SKU.

Food Distributors: The Logistics Powerhouses

A food distributor, by contrast, physically buys your product and manages the storage, transport, and delivery to retailers, restaurants, or other outlets. Distributors handle warehousing, fulfillment, and order management — the operational muscle behind your supply chain.

They make money through markups or margins, often around 20 – 30 %, and may decide where, when, and how to sell within their network. Major players like Sysco, UNFI, or KeHE are well known, but there are also strong regional and specialty distributors across Canada and the U.S.

Distributors are invaluable when logistics become too complex to manage directly — helping you scale to new markets, service multiple retail chains, and ensure consistent delivery.

When to Find Them

Knowing when to bring in a broker or distributor depends on your stage of growth.

Start with a Broker When You’re Building Retail Relationships

If your product has strong local traction but limited retail exposure, a broker can help you break into key stores and grow brand visibility. They open doors, build credibility with buyers, and help navigate retail requirements before you’re ready for national distribution.

Engage a Distributor Once You’re Scaling Logistics

Once demand grows and orders multiply, a distributor becomes critical. They handle the heavy lifting — literally — by storing, shipping, and managing your inventory. This lets you focus on marketing, product innovation, and customer relationships rather than fulfillment.

🧭 Many successful food brands work with a broker first to secure listings, then layer in a distributor to streamline logistics once volume builds.

What to Be Careful About

Working with Brokers

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Alignment matters: Ensure the broker’s values and category focus align with your brand — for example, if you emphasize sustainability or Canadian-made sourcing, find someone who shares that ethos.
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Check their relationships: Ask which retailers they actively sell into and how many competing brands they represent.
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Set expectations: Confirm commission structures (often 5 – 7 %) and whether retainers or performance targets apply.
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Stay connected: Brokers can only sell what they know — keep them updated on stock levels, new SKUs, and promotional campaigns.

Working with Distributors

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Control trade-offs: Once a distributor buys your product, you lose visibility into how it’s prioritized or presented.
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Understand costs: Distributor margins can be steep (20 – 30 %), so factor that into your pricing model.
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Evaluate fit: Choose distributors experienced in your category with the right regional coverage, flexible order minimums, and reliable logistics.
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Maintain communication: Regular updates on demand forecasts, new products, and retailer feedback can strengthen the partnership.

Key Considerations and What to Know

Choosing the Right Broker

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Specializes in your category (e.g., snacks, beverages, frozen).
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Has proven regional reach or retail relationships that match your goals.
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Offers references or data on past performance.
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Does not represent direct competitors unless managed transparently.

Choosing the Right Distributor

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Provides geographic coverage suited to your growth plan.
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Has strong warehouse and logistics capacity for your product type.
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Maintains healthy cash flow and a solid track record with retailers.
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Understands your category’s velocity expectations — slow-moving items can get deprioritized.

Collaboration Is Key

Both brokers and distributors succeed when you treat them as partners, not vendors. Maintain open communication, share marketing plans, and align on targets. The more informed they are, the better they can represent your brand in the market.

Additional Tips for CPG Founders

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Start local. Test partnerships with regional brokers or distributors before going national.
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Review performance. Evaluate results quarterly and adjust as your needs evolve.
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Stay visible. Continue building direct relationships with key retailers and buyers, even when partners are in place.
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Own your brand story. No one will advocate for your product better than you — empower your partners with the right tools and messaging.

Ready to Find the Right Partner?

The right broker or distributor can accelerate your brand’s path to market — but only if you choose strategically.

At 6 Seeds, we’ve helped dozens of Canadian and international CPG brands navigate this stage of growth through research, strategy, and marketing that opens doors to new markets.

👉 Download our Free Broker List to explore trusted partners.

👉 Download our Free Distributor List to start mapping your retail expansion strategy.

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