Great products don’t sell themselves. You need a distribution plan that gets you into the right stores, in the right order, at the right time — without draining your resources.
Why Distribution Strategy is Your Growth Engine
When small CPG founders think about growth, they often think “more stores.” But more isn’t always better. The wrong store at the wrong time can drain your cash flow, overwhelm your operations, and hurt your reputation if you can’t keep up. The right store at the right time, though? That’s the kind of momentum that builds sustainable growth.
I’ve seen brands with fantastic products fail simply because they spread themselves too thin too early. I’ve also seen smaller, disciplined rollouts lead to national deals down the road. The difference is a distribution strategy built on purpose, not impulse.
Step 1: Define Your Ideal Customer First
Before you make a store list, you need to know exactly who your product is for. Are they health-conscious moms shopping at natural grocery chains? College students hitting convenience stores? Office workers grabbing lunch at premium cafés?
The team at LivePlan emphasizes that this clarity helps you avoid wasting time on accounts that will never move volume for you.
A sparkling botanical beverage I worked with nailed this. Their target audience was young professionals in urban centers. Instead of chasing every grocery chain, they started with trendy coffee shops, yoga studios, and boutique markets in three high-density neighborhoods.
Step 2: Start with the Channels You Can Own
Independent grocers, specialty shops, food service outlets, and local retailers can give you better margins and more flexibility than big chains early on. They’re also more likely to give you prime placement and let you run in-store events.
The WiseMerchant retail entry guide points out that early wins in small channels can create strong proof points to use in your pitch to larger retailers later.
One energy bar brand I advised avoided mass retail in their first two years entirely. Instead, they built a network of 120 independent gyms, climbing centers, and juice bars. This gave them loyal customers and high-velocity sales before stepping into regional grocery.
Step 3: Build Your Distribution Map
A distribution map is your visual game plan for where and when you’ll expand. It should balance ambition with operational reality. Here’s a sample for a fictional plant-based snack brand called “GreenLeaf Bites”:
Phase 1 (Months 1–6):
- Target 15 high-traffic independent natural food stores in the home city
- Add 10 specialty cafés and juice bars
- Direct-to-consumer sales through the brand’s website and local events
Phase 2 (Months 7–18):
- Expand to 40 more independent stores in three nearby metro areas
- Partner with two regional distributors for broader reach
- Test sales in 10 specialty regional grocery chain locations
Phase 3 (Months 19–36):
- Approach two national natural grocery chains with strong presence in target regions
- Selectively enter 100–150 locations based on velocity projections
- Launch seasonal limited-time flavors to drive repeat purchase
This phased approach ensures you have the production, cash flow, and marketing support in place for each new wave of stores.
Step 4: Balance Depth and Breadth
Early on, it’s better to go deep than wide. Selling 200 units per week in 10 stores is often more impressive to a buyer than selling 20 units per week in 100 stores. High velocity in a focused set of locations shows that your product can move — which buyers love to see.
One granola brand I worked with used this to their advantage. They focused on just eight stores but ran constant in-store demos, built strong relationships with managers, and made sure their shelf stayed stocked. Their velocity numbers blew away the competition when they pitched to a regional chain.
Step 5: Get Your Logistics Right Before You Scale
Your distribution strategy is only as strong as your ability to fulfill orders consistently. Before you jump to a new region or retailer, make sure your production schedule, storage capacity, and shipping partners can handle the increase.
We cover this in detail in our Process — because nothing kills retailer trust faster than out-of-stocks in the first three months.
Step 6: Support Every New Door You Enter
Getting into a store is step one. The real work is making sure your product sells once it’s there. Plan your promotions, demos, social media pushes, and local marketing before you ship the first case.
If you can’t personally be in every store, find creative ways to connect with customers — QR codes that lead to recipe videos, shelf talkers with your founder story, or collaborations with local influencers.
Step 7: Review and Adjust Quarterly
Distribution isn’t “set it and forget it.” Every quarter, review your store list, sales velocity, and margins. Drop underperforming accounts that drain resources, and double down on the ones where you’re thriving.
I worked with a kombucha brand that cut 15 low-performing stores and reallocated that effort into their top 25 stores. Sales jumped 40% in just two months because they focused their energy where it mattered.
Common Pitfalls to Avoid
- Chasing big names too soon: National chains can look tempting, but they’ll crush you if you’re not operationally ready.
- Ignoring unit economics: A retailer that moves volume but kills your margins isn’t worth it.
- Expanding without local marketing: New stores without local awareness lead to slow sell-through.
- Not having a backup plan for logistics: Weather, shortages, and supply chain hiccups happen — plan for them.
Quick-Start Checklist for Your Distribution Plan
- I know exactly who my target shopper is
- I’ve identified the first 10–15 stores that match my audience
- My production and logistics can handle the next growth phase
- I’ve planned in-store support for every new account
- I have a quarterly review process to refine my store list
Final Thoughts: Distribution is Strategy, Not Luck
The right distribution plan gives you control over your growth, protects your margins, and builds a track record that makes bigger opportunities possible. The wrong plan can put you out of business even with a great product.
If you’re ready to build or refine your distribution strategy, we can help you create a roadmap that fits your product, your operations, and your goals. Reach out through our Contact page and let’s map out your next move.