In the fast-paced world of consumer goods, getting a new product on the shelves of a major supermarket chain like Kroger or Walmart, or keeping a current product on shelf, is the ultimate prize. But what does it really take to win that coveted spot? It’s far more than just having a great-tasting product like a syrup, a trendy topping, or a new take on a classic ice cream cone.
We’ve seen firsthand that not only are consumer purchasing behaviors changing, but retail giants are evolving, and so are their expectations. Here’s a look at what food and beverage brands must bring to the table to succeed in today’s competitive retail landscape.
1. A Vision for Innovation, Not Just a Product
Today’s retailers aren’t just looking for a new flavor, they are seeking “true innovation.” They want to see products that will optimize their product selection for both a more efficient shelf space and a better customer experience. This means products can’t just be “good”; they need to fill a gap, address a consumer trend, or offer a unique solution. Retailers are actively looking to evolve their categories that speak to their consumers in a new way, so a product that might have been dismissed historically could now be a perfect fit for their new strategy. The key is to demonstrate that your product is part of a larger, forward-thinking plan.
This is especially true for value-added products like licensed food and beverage items. Licensed products are naturally more expensive for consumers than store branded items since manufacturers have to build in the cost of paying the brand’s/properties they license a licensing fee. This can be a challenge for retailers The value is not just in the ingredients but in the immediate brand recognition, built-in consumer loyalty, and established marketing power they bring. However, a licensed product that offers true innovation can command a premium and provide a better return on shelf space than a standard private-label item.
2. A Comprehensive “360-Degree” Marketing Strategy
The days of simply handing over a product and hoping it sells are long gone. Big retailers now demand a comprehensive marketing plan, and they want to see the numbers. A “360-degree plan” means showing how you will support your product across every consumer touchpoint, from national advertising campaigns to retailer-specific media spending. This demonstrates that you are a serious partner, willing to invest in driving consumer traffic to their stores. It’s a reflection of a brand’s confidence and its commitment to shared success.
3. Operational Excellence and a Commitment to Quality
Behind every great product is a flawless operation. Retailers are laser-focused on efficiency and reliability. They have strict requirements for everything from how new items are submitted to the format of presentations. There is a zero-tolerance policy for errors, as a simple mistake can create a logistical nightmare for the retailer. Furthermore, they demand an extremely high on-shelf availability (OvS), often 95% or higher, because an empty shelf is a lost sale. Brands must prove they have the supply chain and operational rigor to meet this high standard, ensuring their products are always in stock.
4. A Realistic Understanding of Financial Commitments
The relationship between a brand and a retailer is a business partnership, and brands must be prepared for the financial reality of that relationship. This can include new item allowances (sometimes called “slotting fees”) and various service charges. These fees are not just an arbitrary cost; they are a way for the retailer to manage the risk of bringing in new, unproven products and to support the various services they provide. Having a clear understanding of these financial components shows a brand is prepared to do business at this scale.
The Takeaway
Succeeding with major retailers is a complex process that requires more than just a great idea. It demands innovation, a robust marketing strategy, operational precision, and a clear-eyed view of the financial partnership. Brands that are serious about growth must come prepared with a complete portfolio of their offerings and a submission that is meticulously accurate, a clear sign that they are in tune with the high standards of the industry’s biggest players.
