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Can natural brands survive without a distributor?

Vancouver-based Vega sells its new Vega Sport line of supplements directly to Whole Foods Market stores nationwide. Can other natural brands get by without UNFI?

Nutrition Business Journal just sent its February 2012 Sports Nutrition & Weight Loss issue to press today—expect to see that one up on newhope360 shortly. In it we have a Q&A with Charles Chang, president of Vancouver-based Vega (formerly Sequel Naturals), a natural foods brand that recently launched Vega Sport, a complete line of plant-based, whole-food sports nutrition supplements targeting vegetarian and vegan athletes.

Formulated by vegan triathlete Brendan Brazier, the line steers clear of common allergens such as dairy, gluten, soy and corn, and focuses on plant-origin proteins, such as rice and pea, and botanicals to fuel performance. Chang argues that plant-based ingredients benefit from a natural alkalinity, making them superior for recovery to whey and soy protein, which are acid-forming. Plant-based options also take a much smaller toll on the environment than their dairy counterparts, he says.

NBJ is excited about the brand because it essentially lives in a niche of its own without a major competitor. But Chang also mentioned something else that caught us off guard. Vega Sport was picked up for national distribution by Whole Foods Market, but Vega doesn’t sell the line through UNFI. Common knowledge would have it that you can’t sell to the former without the latter, but Vega has managed to buck the trend. They’ve placed a hyper-growth brand on the shelves of the world’s biggest natural retailer and they did it all by themselves.

Which got me thinking. Are there many brands that get by in natural retail without UNFI and KeHE?

I put the question to New Hope Natural Media’s own Bill Crawford, director of retail publishing programs. “Grocery brands,” he says, “including cold and frozen, probably have to be in a distributor to succeed about 98 percent of the time.” There are exceptions, of course. Light items with low shipping costs, like pasta and tea, can get by going direct, he says, and big supplement brands like Solgar, Country Life and Solaray also do well without distributors.

But small, startup brands often seem irrevocably dependent on the guys with the trucks. So I’ll put the question to you, 'o brand-holders of the natural products universe:

Can you get by without a distributor? Tell me in the comments.

Discuss this blog 6

We have done fine for a decade dealing direct. Our customers tell us that they enjoy the hands on service. We enjoy the ability to restrict where our product is sold as well as the ability to provide training and ongoing support. However, times are changing and we are considering distributors at this time. If done properly, small companies can survive on their own but careful attention to service and quality is a must.

By GabrielFlexcin  on Feb 15, 2012

"Chang argues that plant-based ingredients benefit from a natural alkalinity, making them superior for recovery to whey and soy protein, which are acid-forming. Plant-based options also take a much smaller toll on the environment than their dairy counterparts, he says."
Since when is "soy protein" not "plant-based?"
D Goldberg

By Anonymous (not verified)  on Feb 16, 2012

UNFI is for the lazy stores like Moscow ID Food Coop. It used to be a nice business to work with but now it is no better than Whole Foods. The more who can bypass them the better for the consumer.

By Anonymous (not verified)  on Feb 16, 2012

Distributor promotional costs are constantly increasing and their ROI shrinking, couple that with loss of business intelligence (don't know which stores are buying your products) it can make the decision to sell direct very compelling. Granted the mfr needs to have the necessary systems in place to support their retail partners (pick & pack/warehouse, accounting, customer service/sales, etc.) and ensure high service levels. It's not for every brand, but a viable option.

By Anonymous (not verified)  on Feb 22, 2012

I am a small business owner and relatively new to the market. I am still learning about this market and would greatly appreciate all input!
This article posts a very good question.

By Anonymous (not verified)  on Feb 23, 2012

It's so much easier to buy from UNFI than direct, especially if you just need 1 unit or 1 case. It takes extra time, effort and record-keeping to order direct. That said, if the direct company really has something special to offer, it's totally worth it. I do think a direct line needs to have good representation and the willingness to support the retailer with free fills, consumer samples and demo product. Those definitely help me to make the time for a direct line.

By Anonymous (not verified)  on May 3, 2012
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