THE CPSM BUSINESS MODEL FOR THE SUPERMARKET CHANNEL
In 2024-2025 the grocery industry continued to change. Technology has connected one side of the world with the other and thusly allowed the supply channel to grow at a rate far greater than ever before or ever expected. Variety, selection, and assortment in the supermarkets is at an all-time high.
Some adjustments have been made with some retailers, to give back space to the center store layout, where they lost space to the perimeter, but with very little success. The basic warehouse space has reached a capacity and is over full. They are out of slots.
What we knew as “in & outs “as well as “allocation “or a “chart out “are almost a thing of the past All of these factors have created a need for additional warehouse space and Third Party suppliers.
This is not the same as a distributor or a DSD delivery system, BUT it is uniquely different AND tailored to the needs of the retailer’s grocery store and supermarket operation. There are still divisions of Specialty Foods and those that only focus on natural and organic, but those are niche businesses with small footprints and smaller volume. Quite substantial though thru the third party distribution systems.
The main third-party suppliers in the USA are Kehe, UNFI, Cavallaro, Davidson, Chex, and Lipari.
Every retailer in the USA has a contract with one of these suppliers. Each of these suppliers basically stock the same items. If you don't place your product in all of these Third Party operations, you lose the opportunity to penetrate the total geography. BUT; You cannot build your brand AND expose your product with a large number of retailers UNTIL you get KEHE up and running. This is what we specialize in.
Kehe is the most efficient way to go to market for new client, new brand entries, and smaller manufacturers.
You have to cover coast-to-coast when you talk about building a brand, exposing your product, or creating demand, and Kehe provides that opportunity. You can penetrate every important retailer possible using Third Party distributors.
Kehe services over 50% of the retailers. This is what makes Third Party suppliers a new channel of sales in the grocery industry.
We at CPSM have done a considerable amount of research of the efficiency and financial benefits of third party distributors, and KEHE provides the very best opportunities for success, because of their technology platform and their desire for each client to be successful. Total and complete transparency.
This is truly the best approach to new business.
It is common knowledge that the desk of the category manager or the buyer is overloaded. The Third Party suppliers have their people positioned as partners within the retailers organization. They are not forced to follow the same rules that a broker or that of direct sales person follows.
There are unique advantages to the program we have designed to help teach this business to new clients. Financially, there are obvious advantages to you. Time wise to get from point A to point Z, we provide are huge time savings. Length and amount of time to expose your brand is still substantial but dramatically reduced with CPSM.
It is all about understanding how to manage through the clutter that exists in the grocery industry today. It is well noted that we can elevate your growth plan, save you money, and begin to build the brand through this KEHE, recommended distribution channel.
Direct shipping warehouses have those huge financial budgets for slotting and advertising. The demands for only very fast turning items, or expanded pressure on increasing distribution of private label SKU’s has limited the # of slots in the warehouse.
It just makes good sense to consider this option and opportunity to fully enter the supermarket industry with a management team that is willing to teach you this area of the grocery business and is willing to function in many different capacities all for the same common goal. SALES!!
•CONSULTING is an ongoing need
•BROKER management we bring with us
•BRAND management ,we won’t let you make an expensive mistake
•MARKETING at its best. Consumer, Trade, Brand, Retailer specific or Advertising
This is who we are and this is what we do.
We are Consumer Products Sales and Marketing.
Our name says it all.
THANK YOU
JACK SWART CPSM