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Losing Product to Package Changes? Food Brokerage Services Can Help

Food brokerage services like Marvell Foods help companies avoid product and profit loss in a wide variety of ways, including offsetting the losses that are incurred in relation to packaging changes.

Repackaging is often an essential part of renewing and refreshing a brand. Sometimes it’s for seasonal reasons, other times it’s one facet of a larger effort to rebrand a product image and gain the attention of a more diverse pool of potential buyers. Or, it could be a spec or ingredient change that renders the current packaging inaccurate, in which case, the manufacturer/ producer/retailer of the product generally seeks to zero out the inventory as fast as possible to make way for the new/revised product.

Regardless of the reasoning for a package change, repackaging can — and often does — create a loss for brands since they can no longer stock shelves with the older version of the product. The ramifications of a package change are numerous, across a wide range of operations – this includes freeing up warehouse, storage and in some cases freezer space to make room for the new product. This is where closeout liquidation companies like Marvell Foods can be of service.

Counteracting Losses from Package Changes

As food closeout buyers, Marvell Foods works with a wide range of companies – from food manufacturers, co-packers, distributors, and some of the nation’s largest retailers to help them liquidate products quickly while also preserving some sales revenue on these goods. While a lot of the food closeout industry is focused on expired, soon-to-expire, or over-produced inventory, for many companies, the cost to repackage can be a major variable in the decision to repackage. Projected sale costs of soon-to-be-retired goods can be very helpful to a company contemplating just such a move. As a potential buyer or broker of such goods, Marvell Foods early involvement in the decision tree can play a critical role in this process.

When a company changes a product’s packaging, often times the implications go way beyond an appearance change. Ultimately, the goal is to improve sales of the product through improved shelf and consumer appeal.  The profit gains from these types of repacking efforts must be weighed of course by the loss or write down of the old, or soon to be retired goods. This creates a unique balancing act for companies: how to maintain as much of your previously anticipated (gross sales) bottom line on a particular SKU when a change in marketing strategy necessitates a loss of inventory?

To help companies counteract this loss, Marvell Foods works with a large network of global buyers to find unique ways to sell the product with the old packaging. Instead of filling up discount shelves with the old product (and thus possibly taking a hit on brand integrity), companies will have an opportunity to sell their products outside of their normal markets or distribution channels. In this manner, Marvell Foods not only has the right buyers, but this also creates an opportunity to mitigate losses and preserve product income.

Find New Buyers For Old Products

Marvell Foods helps companies  sell your business inventory in the most efficient and profitable way possible. If any of your company’s products have recently undergone a packaging change, our team of experts and our proven network of national contacts can provide  a quick and easy solution to many issues related to repackaging issues.

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