1. Food Wholesaling and Retailing
Part A
AGEC 364

2. Food Wholesaling Accounted for 10% of the consumer’s food dollar
Specialize in adding spatial and possession utility
Assemble large lots of goods and distribute smaller lots to retailers

3. Types of Wholesalers Merchant wholesalers
Manufacturer’s sales branches
Wholesale agents

4. Merchant Wholesalers Buy, sell, and store grocery products
Make up about 75% of all food wholesalers
General Line Merchant
Wide variety of products
Specialty Line Merchant
Limited product assortment (dairy or beef)

5. Wholesale Agents Perform sales and marketing activities for clients
Usually do not take title of products
Provide merchandising assistance for their clients

6. Food Wholesaling
Food wholesaling accounted for 10% of the consumer’s food dollar. Food wholesalers specialize in adding spatial and possession utility. They assemble large lots of goods and distribute smaller lots to retailers.

8. Manufacturer’s sales branches
Extensions of food processing firm’s marketing activities at the wholesale level
Owned and operated by food manufacturers
Perform storage, selling, transportation, and intelligence marketing functions

9. Wholesaling Trends
The number of wholesalers has been stable but their average sales have grown significantly.
Volume is important to efficient wholesaling.
Food wholesaling mergers have increased the size of wholesalers.

10. Wholesaling Trends
Profit levels for wholesalers have been good relative to other food marketing firms.
Volume makes it easy to add efficiency in computerization, mechanization, electronic ordering and billing.

11. Wholesaling Trends
Globalization is occurring in wholesaling like in the rest of the food industry. Dutch, Canadian, German, and Japanese food wholesalers operate in America, and the U.S. operates in Canadian, Mexican, and Latin American markets.

12. Wholesaling Trends
The competitive position of independent food wholesalers and brokers has been threatened in recent years. Large retail food store chains perform their own wholesaling operations and have less need for wholesaler services.