Specialty food production and distribution

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August 22, 2024

by a searcher from University of Pennsylvania - The Wharton School in New York, NY, USA

I'm looking to learn more about the specialty food production and food distribution industry. If you have experience in the industry and would be willing to connect, I'd much appreciate the time.

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Reply by a searcher
from University of Melbourne in Melbourne VIC, Australia
Had exposure to food ingredients wholesale distribution - if that is of interest, you could look at DKSH, Univar Solutions, Brenntag, Azelis - and seek out salespeople on linkedin previously in those businesses that note food ingredients on their profile, and get a feel for that space through those contacts. Some high margin businesses in that segment of the market, and still at least in my observations, relatively fragmented market despite the major players. There are a few search acquisitions in that space - Louis Jardel at Actibio in France, and Paige Kohalmont at Austral Herbs in Australia.
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Reply by a searcher
from Massachusetts Institute of Technology in Apex, NC, USA
I'm more bullish on production than distribution.

Margins in distro are tight, capex heavy (trucks, inventory, warehouse), and buyers care about 3 things - price, price, and price.


Production can be high value add - lot more pricing power if working as co-packer esp for early cpg brands - downside is early cpg formation is way down and getting crushed and setting up brands is more bespoke. But almost all costs can be passed.
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