Exporting products to supermarkets in the USA is an attractive prospect for businesses worldwide. Not only does it provide access to a large, lucrative market, but it also allows companies to build their brand internationally. The process of exporting goods to US supermarkets, however, is complex and often daunting for those unfamiliar with the procedure.
Major supermarket chains in the USA
The supermarket industry in the USA is highly competitive. It is dominated by a handful of large companies that together control an impressive share of the market. The two largest supermarket chains in the US by marketshare are Walmart and Kroger. Walmart holds a staggering 29% of the total market share while Kroger has around 9%.
Other major players in this space include Albertsons Companies Inc., which accounts for 5%, and Publix Super Markets with 4%. Ahold Delhaize, H-E-B Grocery Co., Wegmans Food Markets, Aldi US and Whole Foods Market are all other notable competitors with respective shares ranging from 2-3%. Together these companies hold over 60% of the total market share across all supermarkets in America.
Walmart, Kroger and Albertsons
Walmart is one of the most well-known US retailers, with over 5,000 stores across the United States. Founded in 1962 by Sam Walton in Rogers, Arkansas, Walmart has become an iconic symbol of American retail. Despite its success and large footprint, Walmart’s presence in the US has been met with some criticism. Some have argued that Walmart’s large scale operations lead to job losses as local businesses struggle to compete. In addition, their low wages and lack of benefits for employees have also come under scrutiny from both lawmakers and consumers alike. However, others argue that Walmart’s competitive prices are beneficial to many communities and provide access to goods at a lower cost than other retailers. Regardless of these debates however, it is clear that Walmart will continue to remain a dominant force in the American retail market for years to come.
Kroger is one of America’s largest grocery store companies, with more than 2,700 stores across 35 states and Washington D.C., including Kroger Marketplace locations and convenience stores like Turkey Hill Minit Markets. Kroger offers an expansive selection of fresh produce, meat, dairy products and other items at competitive prices. The company also has its own line of private label brands such as Simple Truth Natural Foods and HemisFares International Specialties.
Albertsons Companies is one of the largest food and drug retailers in the United States. Founded in 1939 by Joe Albertson, they currently employ over 250,000 people across 2,200 stores located in 35 states and Washington D.C. In addition to their traditional grocery store format, they also own and operate supermarkets such as Safeway, Vons, Shaw’s Supermarkets, Jewel-Osco, Acme Markets and many more. Their products include an extensive selection of fresh produce including organic options as well as a wide variety of packaged foods and non-food items such as health and beauty products. As part of their commitment to providing customers with quality products at competitive prices they partner with trusted suppliers throughout the world to ensure that only the best ingredients are used in their products.
Role of distributors and wholesalers in FMCG
The role of distributors and wholesalers in FMCG (fast-moving consumer goods) in the USA is significant. They are responsible for buying products from manufacturers and selling it to retailers, as well as providing services like inventory management, storage, transportation and more. Distributors provide a range of benefits to both manufacturers and retailers. By offering cost-efficient solutions for procuring goods from various vendors, distributors enable retailers to focus on their core competencies such as marketing or customer service.
On the other hand manufacturers benefit from access to local markets that wholesalers can help them reach due to their relationships with retailers in different regions. Furthermore, distributors also provide valuable feedback about market trends which can be used by manufacturers to shape new product strategies and forecast demand accordingly.
Core-Mark International is one of the top FMCG wholesalers in the country, providing full-line service to almost 45,000 retail stores across North America. They specialize in fresh foods and other perishables, along with traditional convenience store products like cigarettes and beverages. US Foods is another major player in the FMCG wholesale market, offering a wide selection of food products to over 250,000 restaurants and foodservice operators nationwide.
Role of brokers
The role of brokers in supermarket distribution is an important one. Brokers help to bring products from the manufacturer or distributor to retail stores and supermarkets. Brokers also play a key part in setting up promotional activities such as discounts and sales that draw customers into stores.
Brokers typically work with manufacturers to determine which products will be stocked at each store; they also often negotiate prices on behalf of the retailer. In addition, brokers may provide marketing services such as coordinating advertising campaigns or managing product displays at retail locations. With their keen knowledge of the industry, brokers help ensure a successful supply chain for supermarket distribution operations.
The Fast Moving Consumer Goods (FMCG) industry is a highly competitive business sector in the United States, with a total of over 5,000 brokers operating throughout the country. FMCG brokers specialize in providing and managing logistical services for businesses that sell consumer-oriented products.
These brokers have become increasingly important due to the rise of online shopping. Online retail stores require more sophisticated delivery systems than traditional store fronts, making them reliant on FMCG brokers to ensure timely delivery of items sold through their websites. In addition, these brokers are also becoming an integral part of effective supply chain management for companies in the US market, helping them to reduce costs and increase efficiency.
Importing FMCG products in the USA
Importers of Fast Moving Consumer Goods (FMCG) into the USA must observe several requirements. The first requirement is that all goods imported into the USA must comply with domestic safety and quality standards, as outlined by the US Food and Drug Administration (FDA). This means any food, beverage, drug or cosmetic products must meet relevant FDA regulations prior to import.
In addition to this, certain categories of FMCG may require specific permits from government agencies such as the Department of Agriculture and the Bureau of Alcohol Tobacco Firearms & Explosives. Furthermore, depending on what type of product is being imported, additional documentation may be required such as a Certificate of Free Sale or a Letter Of Exemption.
You can work with a 3PL (Third Party Logistics) provider who can help you with customs clearance, document preparation, freight forwarding, and delivery. They will also be able to advise you on the most cost-effective way to transport your product into the US. You will then need to ensure that your product meets all relevant regulations and safety standards for sale in US supermarkets. Once this has been done, you will need an agreement with a wholesaler or distributor who can handle orders from retailers such as supermarkets. They may have their own requirements so it’s important that these are met before they will agree to stock your product in their warehouses or stores across America.
Getting your products on the shelves
Getting your products in US supermarkets is no easy task. It requires an understanding of the logistics process, from importation and customs clearance to delivery and stocking.
First research which supermarket chain best suits your product and target market. This entails examining factors such as pricing policies, shelf space allocation rules and promotional activities offered by each chain; all of which can vary significantly between different stores. Once you have identified a suitable partner, you must then obtain any necessary licenses or permits required to export your items into the US before obtaining distribution agreements from the store’s suppliers.
Then work with brokers to actually approach these supermarket chains. Alliance experts can help you with finding the right 3PL parties, distributors and brokers and present your products to them in a way that they prefer.