Food Business to Retail Success

For many food entrepreneurs, the dream begins at the farmer’s market. The setup is simple: a table, a tent, and a direct connection with customers who offer immediate feedback. Margins are high, sales are personal, and the community feel is rewarding. But at some point, many business owners start asking the bigger question: How do I get my product onto retail shelves?

Scaling from farmers markets to wholesale is a leap that requires more than just making bigger batches. It transforms your entire business model, affecting licensing, distribution, margins, and even how you define success. 

According to Sherie Theriault, co-founder and adviser at New England Food Business Advisors (NEFB)  with decades of experience helping food companies scale, “The first step is always your business plan. You need to understand why you want to add wholesale to your portfolio, what your sales channels are going to be, and how that decision will affect your overall operations.”

The Shift from Direct Sales to Wholesale

Entrepreneurs enjoy higher profit margins and complete control over the sales process at farmers markets. Customers buy directly, and the brand story is told face-to-face. Transitioning to wholesale changes everything. “When you move into the wholesale realm, it’s a different license, different insurance, different regulations,” Theriault explained. Large retailers often require broader liability coverage and compliance with strict safety standards.

Even more challenging is the loss of direct customer interaction. On a grocery store shelf, your product competes with dozens of others. As Theriault put it, “If you’re a hot sauce brand, you’re one of fifty on that shelf. Why should a consumer who doesn’t know you choose yours? That’s where your sales and marketing strategy becomes essential.”

Distribution, Shelf Life, and Risk

Distribution is another hurdle. A farmers market vendor may drive products directly to the point of sale, but wholesale demands a more sophisticated system. Frozen and refrigerated products require temperature-controlled transport, while shelf-stable goods face different challenges. Entrepreneurs must weigh whether to self-distribute or partner with a distributor; each option with its own costs, risks, and requirements.

Shelf life is equally critical. A product that sells within days at a market may need to last six to eight weeks in retail. “If your product can’t hold up in that timeframe, you’re facing buyback programs where unsold items are returned to you at full cost,” Theriault noted. “That risk falls on the producer, not the distributor or grocery store.” This makes shelf stability, packaging, and storage all part of the equation when moving into wholesale.

Rethinking Success

Scaling also forces entrepreneurs to revisit their definition of success. For some, success means seeing their brand on shelves across the region; for others, it’s about steady income and community engagement. Wholesale is not automatically the “next level”; it’s a different model with different risks and rewards.

Theriault emphasizes that clarity here is key: “If your vision of success is regional visibility, then you need distribution and everything that comes with it. If success is putting a little money in your pocket while keeping direct customer relationships, that’s a different path entirely.”

Case Studies in Scaling

NEFB has guided numerous food businesses through these pivotal decisions. Nola Salsa, for example, used farmers markets strategically; not as an endpoint but as a marketing tool to drive consumers to retail locations. Two bakers working with NEFB recently explored wholesale opportunities with caterers and restaurants, finding niches where their products could fill unmet needs. And one energy drink entrepreneur began with markets to establish proof of concept, then spent a year building strategy and customer loyalty before moving into retail.

These stories illustrate that scaling is rarely a straight line. Each entrepreneur must evaluate their resources, product characteristics, and long-term goals before deciding whether wholesale is the right move.

The Role of Distribution Strategy

Perhaps the most complex step in scaling is choosing the right distribution model. Large distributors like Sysco, UNFI, or Rainforest have the logistics to handle refrigerated, frozen, and shelf-stable products, but they rarely take on smaller brands. Smaller distributors may be more accessible, but product type, geography, and company size all factor into the decision.

“Distribution is really a research game,” Theriault said. “You need to know where you’re making your product, where you want to distribute, and what your product requires. Once you sign on with a distributor, you’re often locked into pricing for at least six months. If your costs go up but your margins are too slim, you risk losing your place on the shelf.”

How Advisors like NEFB Help

This is where NEFB’s expertise becomes invaluable. Theriault and her team help food businesses understand the realities of scaling before money and time are lost. They provide market research, identify potential retail and distribution partners, and offer realistic growth forecasts. With more than twenty years of industry connections, they can also make introductions that open doors.

As Theriault put it, “There are successful small businesses out there that make it onto retail shelves. The difference is that they planned, accounted for risks, and had the right resources. That’s what we help our clients do every day.”

Final Takeaway

Scaling a food business from farmers markets to retail shelves is not just a matter of producing more; it’s about changing the way your entire business operates. From licensing and shelf life to distribution and marketing, every piece must align for the leap to be sustainable.

For entrepreneurs ready to make the move, the key is careful planning and expert guidance. With the right strategy, resources, and partners, a farmers market favorite can grow into a brand that thrives on store shelves.