Founders mix these up constantly, and it costs them. A broker and a distributor do different jobs and get paid in different ways. As Mr. Checkout, a national distribution network, puts it: “a broker opens the door, a distributor drives the truck through it.” Here is how to tell which one your brand needs.

What a broker does

A food broker is a commissioned sales rep with existing relationships with retail buyers. The broker pitches your product, negotiates placement and manages the buyer, but never owns your inventory. Brokers typically earn a commission of 3 to 10 percent on the sales they generate. You choose a broker when your bottleneck is access, when you can produce and ship but cannot get the meeting.

What a distributor does

A distributor buys your product, warehouses it, and resells it to stores. It takes ownership, handles delivery and restocking, and carries the retailer's credit risk. A distributor usually buys at 15 to 30 percent below retail and earns the spread. You choose a distributor when your bottleneck is getting product physically into stores, especially across many independent accounts.

Many brands use both

The two roles are not either-or. A broker secures the account and works the shelf space while the distributor handles fulfillment. The key is to put responsibilities and commission terms in writing before the first purchase order. Clear terms prevent the fight that kills the partnership later.

The bottom line

If your problem is access, start with a broker. If your problem is logistics and reach, start with a distributor. For Polish and European brands selling into independent and ethnic grocery, a distributor already in those stores covers both the truck and the relationships. Eagle distributes to 500+ independent stores. Partner with Eagle, or call 773 775 5777.