Snack food distributors and wholesalers are the backbone of a snack food business. While you can order snack foods directly from some manufacturers, wholesalers and distributors usually offer better bulk pricing on name brand snacks.

There are snack food manufacturers that also serve as their own snack food distributors, and they shouldn't be overlooked when ordering snack foods. Bulk food distributors offer snack foods in bulk from leading manufacturers, and usually include products such as nut mixes, spices, and snack mixes for bars and restaurants. When ordering your snack foods, remember these snack food distributors and wholesalers basics:

1. Some snack distributors focus on one aspect of the snacking industry, like vending machines.

2. Snack wholesalers don't always work with well-known brands, but that doesn't mean the snacks aren't top notch.

3. Many small companies are the manufacturer and snack food distributor. You may find more personal service when using a smaller, family-run company.

Action Steps
The best contacts and resources to help you get it done

Work with a wholesale snack foods company for good deals

Wholesale snack food companies offer brands of different snacks for discounted bulk prices. The stock of a wholesaler can vary, but most wholesalers try to stock what customers need and do carry regular products.

I recommend: Try WholeSaleBulkFoods.com for bulk food products at wholesale prices. Get wholesale snack cakes and pastries from Candy Store.

Use a snack distributor that focuses on your business niche

There are snacks distributors that focus on concession stands, prepackaged snacks and portion snacks. By working with a company that specializes in your business niche, you get better service and can find products that fit your needs.

I recommend: Get nuts, pretzels and mixes in portion controlled sizes from Classic Snacks. These work well in airplanes, lounges and lobbies. Order snacks for a concession stand from Mickey's Game Time. They offer traditional game snack foods like popcorn, nuts and cotton candy.

Find a snack foods distributor for your vending business

If you run a vending machine route, it's much easier to work with a snack distributor than to get all the product on your own. A vending distributor or wholesaler might have products you can't find at your local discount warehouse.

I recommend: Order a variety of brand name snack foods for vending machines from SnacksOverAmerica.com. Get vending machine snacks from Blair Candy. You can contact them if they don't have your favorite snacks, and they'll try to get your order fulfilled.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you run a small snack foods business, such as operating one or two vending machines, and don't want to deal with snack food wholesalers or distributors, try a wholesale club. Small scale snack businesses can operate by using a wholesale club, such as Sam's Club or Costco, and only buying what's needed.

Americans eat out — a lot. According to the U.S. government's last census of such things, more than a half-million eateries and bars posted more than $321.40 billion in sales, a bit more than $1,000 a year per man, woman and child in the country. How all of these small businesses get the food and drinks they need to keep those tables turning is an industry unto itself, and a fragmented one at that, considering it involves timely delivery of perishables. Figuring out where you'll get the best and freshest foods at the lowest price is a matter of understanding the market, in particular, understanding how the wholesale beverage and food distributors work. This primer on selecting a wholesale food distributors for your own restaurant covers:

1. The different types of food and beverage distributors available for any restaurant.
2. Your options for food distributor alternatives.
3. How to make the most of purchased wholesale foods, by combining the buying power of multiple restaurants.
4. Advice for ensuring you are getting the best price for your wholesale foods.

Action Steps
The best contacts and resources to help you get it done

Most of the business is done by food wholesalers

Whether its tins of tomatoes or piles of pork ribs, chances are you will start with a major supplier of wholesale foods, where prices are driven down because of the high volumes they handle.

I recommend: The largest food wholesalers include Sysco, US Foodservice, Performance Food Group and Gordon Food Service.

Buy direct from the manufacturer

Many food and beverage producers maintain their own delivery systems if your account is large enough. Going this route allows you to cut out the middle man, and avoid markups added on by the food distributor.

I recommend: Go to the International Foodservice Manufacturers Association site and search the membership directory for free. Search by "industry category" to quickly turn up food or beverage distributors near you. The American Beverage Association has a list of its (non-alcoholic) beverage maker members and Bevnet lists both manufacturers and distributors. The International Beverage Network covers alcohol beverage distributors worldwide.

Find a local independent broker

A good portion of the food distributed in the United States goes through an agent or broker.

I recommend: Search thousands of food and equipment suppliers through the Thomas Food and Beverage Market Place guide. Free if you register, although full company data is pricier.

Lots of tables? Join an alliance and get volume discounts

Joining a cooperative could save you money if you buy enough food regularly to qualify. This is usually true for institutional dining operations like hospitals and schools, but a regional chain restaurant could easily muster the same volumes.

I recommend: Some cooperatives include UniPro and Progressive Group Alliance. Premier focuses on healthcare institutions.

Check specialty suppliers for deals

Over the years, regional suppliers have sprung up to serve smaller, mom-and-pop eateries in second-tier markets. There are also specialty gourmet food distributors.

I recommend: Smart & Final operates in six western U.S. states and northern Mexico. McClane serves 18 cities across the country. Cheney Brothers trucks are a common sight in the southern United States.

Shopping clubs are an alternative

Most warehouse shopping clubs offer wholesaler discounts and special ordering rules that get you in and out in a jiffy. If you have the time and inclination to go get the food, these can save you money.

I recommend: Check prices for membership against potential savings at Costco, Sam's Club and BJ's Wholesale Club. Similarly, retailers Target and Wal-Mart (type ZIP code and choose "supercenter") both have opened gigantic grocery stores which can cut pretty close the warehouse prices without annual membership fees.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  To get the best price on your wholesale foods, always run the numbers on your wholesale food distributors, the more often the better. Some will low-ball early on at a loss then try to raise prices later.
• •  If you don't do gigantic volumes, consider forming your own coop with other local restaurant owners. Deliver to your door then break the packages for savings.
• •  Never count out your local grocery store. Their loss leader might be your best margin of the week. If there's not enough on the shelf, talk to a manager about buying up the back stock, especially on non-perishables like wine and canned foods.
• •  Negotiate with your food distributor, always. The food is doing them no good on the warehouse floor, and they could easily have overbought in anticipation of demand. If you are a regular customer or a bigger customer, demand discounts.

There are a few key components to working with snack food distributors and wholesalers that make the process easier for both parties. If you offer a wide selection of snack foods, you'll probably work with both snack food distributors and snack wholesalers. However, if you prefer working with only one company, you can provide a decent snack foods selection by working with only one distributor or wholesaler.

If your snack food business is close enough to your desired snack food distributor, consider taking a tour of the distribution plant. Most distributors have tour options or will schedule a time for you to visit the distribution center. Before committing to a specific snack distributor, research the following:

1. Does the snack food distributor offer returns or credits for damaged or incorrect shipments, and what process must you take for a return?

2. Does the company have numerous forms of communication for both business and after-business hours?

3. What are the shipping policies of the snack distributors, and do any offer free shipping after ordering a certain amount?

Action Steps
The best contacts and resources to help you get it done

Work with snack food wholesalers that offer a variety of snack foods

Wholesale snack foods work well for large offices that want snacks for employees, small businesses that want snacks for customers and food snack businesses, such as concession stands and food trucks. The benefit of using wholesalers is that they have a supply of snacks from different manufacturers.

I recommend: The Betty Mills Company specializes in snack foods for offices. They offer a favorable return policy with a minor restocking fee for some items. Get free shipping anywhere in the continuous 48 states on candy and beef jerky snacks from Choo Choo R Snacks.

Use a bulk food distributor for snack food distribution

When working with snack food distributors and wholesalers, a bulk food distributor is a great option. A bulk food distributor offers snack foods from many of the major manufacturers at a good price. Bulk food distributors are also a popular choice for junk food distribution.

I recommend: Browse the product catalog from Dutch Valley Bulk Foods Distributors and find items from Hershey, General Mills, Conagra and more. BulkFoods.com offers a huge selection of candy and snack food mixes, with no minimum order requirements.

Buy from an established snack food distributor

An established snack food distributor is one that can trace its company roots back many years. They may manufacture and distribute their own product, or just have a history of distributing particular snack foods. The benefit of using an established company is that they usually have excellent client communication and interaction.

I recommend: Horizon Snack Foods distributes little baked pies for convenience stores and other snack businesses. They have over 50 years in the snack food business. Popcorn County USA offers premium popcorn, toppings and supplies for concession stands. They have over 20 years in the popcorn and snack foods business.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  You can use some snack food manufacturers to start your own snack food distribution business. Smaller snack manufacturers sometimes offer turn-key business opportunities for a vending machine route that showcases their snacks. They usually provide training and supplies for an initial start-up investment.

Vending snack foods can be a profitable and important part of any business dealing with the public. However, there may be some snack food distributors and wholesalers key terms that you are not familiar with. Learning as much as you can about these key terms can help you grow your business. Here are a few terms that you may need to know more about.

Action Steps
The best contacts and resources to help you get it done

Vending machines

A vending machine is an automated mechanism that allows for the sale of a variety of items. A person inserts money into the machine and the selected item comes out through the bottom, a sliding door, or a variety of other ways.

I recommend: Gumballs.com has a history of the vending machine.

Prepackaged

Prepackaged snacks or snack foods are perfect for vending machines because they retain their freshness longer, and they are hygienic and safe to eat.

I recommend: They Deserve It has an article about prepackaged healthy snacks for children.

Portion snacks

Portion snacks are snacks sold in certain portions, making them easier and more handy to eat. These are great vending machine items because your customers can get a small snack to eat and create less waste.

I recommend: Family Education has an article on the advantages of portion snacks.

Wholesale club

A wholesale club usually requires membership dues but sells retail items at bulk and wholesale prices. You can get large discounts by shopping at a wholesale club.

I recommend: Mom Advice has great information on wholesale club shopping.

Concession stand

A concession stand can come in many forms and sell a variety of food and drink products to patrons. Concession stands can be found at theaters, fairs, carnivals, sporting events and anywhere a large group of customers frequent.

I recommend: Milford Drive In has a page about their own concession stands.

Wholesalers

Wholesalers sell to patrons at discount prices. This can be in the form of wholesale clubs or other venues that offer bulk pricing and discounts for members.

I recommend: Blacks Academy discusses the benefits of using wholesalers.