The Consumer Packaged Goods (CPG) industry is on fire, with massive acquisitions like Siete Foods joining PepsiCo for $1 billion and Mars, Inc. acquiring Kellanova for $35.9 billion. But before these brands hit major deals, they had to tackle one of the most challenging aspects of the business: breaking into retail. If you’re a CPG startup, getting onto store shelves might seem like a steep climb, but with the right tactics, you can get there.
1. Use Data to Prove Your Value
Retailers are interested in products that make them money and have a high retail velocity. Make it easy for them to say "yes" by coming armed with data that proves your brand’s value. Start with concrete sales figures, retail audits, and purchase orders. Show them evidence that your brand performs well, can keep up with demand, and has a loyal following. Point out any repeat orders, growth trends, or customer reviews to demonstrate traction.
Take Action: Compile your best numbers—sales growth, distribution wins, and customer retention—and package them into a presentation tailored to retailers. If you don’t have retail data yet, lean on online sales metrics, customer testimonials, and any performance data that shows demand.
2. Work with the Right Distributors
Your distributor is your bridge to retail, so finding the right partner is essential. Start by researching which distributors already work with similar brands in your category, and build relationships with them. Some retailers may only work with specific distributors, so get familiar with the ones that matter and start building these partnerships early.
Take Action: Make a list of retailers you want to approach, then find out which distributors are accepted by those stores. Start reaching out, and be clear about why your brand would be a win-win for them and the retailer. This Startup CPG distributor list is a great place to start.
3. Invest in the Retail Experience
Your goal is not just to get on the shelf but to make an impact once you’re there. Capture attention by offering samples or hosting in-store demos. Consider hiring an outsourced sampling team to ensure you’re giving consumers a true taste of your brand. In-store demos don’t just generate buzz—they give you valuable face time with customers, allowing you to collect direct feedback.
Take Action: Allocate a budget for in-store promotions and reach out to demo companies or freelancers who specialize in your target retail locations. A small investment here can pay off in customer loyalty and word-of-mouth.
4. Start in Your Own Backyard
Launching locally can help you build a strong retail story before you scale. We discussed the power of launching locally with the CEO of Bizzy, a coffee brand that’s in more than 7,000 stores. Starting small lets you refine your pitch and create case studies that show how well your brand performs in a retail setting. It also allows you to build relationships with local retailers, which can lead to testimonials or referrals for larger accounts down the line.
Take Action: Identify 2-3 local retailers and pitch them on the benefits of partnering with a homegrown brand. Offer them exclusive promotions or events to help drive foot traffic and sales, and use those wins to expand to a wider network.
Breaking into retail is no small feat, but with these actionable strategies, you can set yourself up for success.