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Food Wholesaling and Retailing

Food Wholesaling and Retailing. Part A AGEC 364. 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. Types of Wholesalers. Merchant wholesalers

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Food Wholesaling and Retailing

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  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.

  7. 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

  8. 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.

  9. 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.

  10. 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.

  11. 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.

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