When you stroll down the aisles of a modern grocery store or supermarket, convenience store, or big box discount store, among scores of other entities who sell food to consumers, whether direct or through wholesale outlets, a little—known but powerful food industry ally—FOOD BROKERS—plays a not insignificant role in helping to provide affordable, discounted food products to American consumers.
Food brokers play a critical role in bringing the food we consume to market. They act as intermediaries between various sectors of the food production paradigm, from manufacturers and retailers to packers, cookers, and distributors, among others who operate in the food industry.
However, before we can better understand top food brokers’ role in the modern grocery landscape, it is helpful to understand the history of food brokerage in America.
Early Origins of Food Brokerage – “Jobbers” & “Wholesalers”
Brokering food has its roots in ancient marketplaces. Intermediaries would help connect farmers and food producers with consumers, facilitating trade by providing market access and negotiating deals to guarantee that surplus goods reached areas of demand.
Fast-forward to 19th-century America, where the Industrial Revolution led to dramatic improvements in transportation, transforming the industry of food distribution in the process. It was during this period that saw the rise of “jobbers”—wholesalers who bought goods and bulk products from importers and sold them to retailers. These jobbers were specialized intermediaries, providing market knowledge, pricing, and product placement expertise.
By the 20th century, food brokers took on a vital role in the distribution chain as the food industry became more organized and more complex. They helped the growing number of manufacturers focus on food production and allowed them to expand into new markets by providing various services such as sales representation, merchandising, and marketing.
The Emergence of the Modern “Food Broker”
However, food broker companies in the US began to resemble what they are today in the mid-20th century. Prior to the existence of the National Food Brokers Association, the food brokerage industry was not uniform, and there were almost as many different methods of conducting business as brokerage firms in the country. The lack of self-regulation was detrimental to all players, from sellers to buyers to brokers to consumers.
By the mid-1900s, however, with the NFBA leading the way, food brokers began to specialize in specific product categories (dairy, frozen, produce, etc.) and geographical regions. By focusing on the knowledge and skills of a specific region of the country, brokers were able to build strong relationships with local buyers while also developing a deep understanding of the dynamics of regional markets.
The advent of the telephone and refrigerated transportation then streamlined operations, giving rise to larger brokerage firms capable of offering comprehensive services while representing multiple manufacturers. In short, during this period, food brokers became the indispensable intermediaries they are today.
How to Choose a Food Broker Today
With the increasing rise of large supermarket chains, discount stores, and online retailers, today’s food brokers operate in a complex and dynamic environment that demands diversification and adaptability. The use of technology, data analytics, and digital marketing tools is now a staple of the industry, and the practices of sustainability, local sourcing, and specialty products have led to the emergence of niche brokers that cater to specific market segments.
For manufacturers and retailers, the question isn’t “Should I use a food broker?” but rather ” How do I choose a food broker?” The first step is understanding your target market, geographic coverage, and specific needs, be it sales representation, merchandising, marketing support, or supply chain management.
By carefully considering all these factors, you can select a food broker who aligns with your business goals and can effectively help you navigate the complexities of today’s food distribution market. If you’re looking to partner with one of the country’s leading food brokers, a firm with an established reputation and a global network of connections, contact Marvell Foods to find out how we can help you turn close-coded, expired, and/or surplus food into fast cash and a better bottom line. Contact: Scott Raybin: Marvell Foods | 561-367-1730 | Scott@MarvellFoods.com