Broker Consolidations Continue to Disrupt Foodservice Sales

Broker Consolidations Continue to Disrupt Food Service Sales

Broker consolidation and category management are dramatically changing the landscape of the foodservice market. Business as usual is no longer an acceptable strategy. Food manufacturers active in the foodservice market must adapt quickly in order to maintain and grow market share, and in some cases, to survive.

Broker consolidations, in particular, are having a negative effect on manufacturers’ foodservice sales. In many cases these consolidations cause hard conflicts that leave the non-surviving manufacturer without representation. Even if you are lucky enough to be the survivor, the newly combined organization is distracted with all of the strategic and conversion needs of the new organization.

The roll-up of National Broker Agencies has benefited the industry in many ways and has created some great organizations—but at a cost. Many manufacturers no longer get the sales focus they need and deserve. In addition, if a National Broker Agency should resign a manufacturer, that manufacturer is completely without a broker network and with very little notice.

Presenture is a National Foodservice Sales Agency whose core services are uniquely aligned to effectively address today’s market challenges. We help our manufacturer-clients adapt and mitigate risk through proven broker management and customer diversification strategies. Presenture offers viable options to some of today’s market disruptors that include:

  • Stability. Presenture appoints brokers in each market on behalf of the manufacturer so that the representation agreement in each market is between the local broker and the manufacturer. As a result a manufacturer’s broker network is not at risk from national termination in all markets should a consolidation occur.
  • Maximize Performance. Presenture gives the manufacturer the ability to appoint the best available broker suited to the unique needs of that manufacturer in each market. Presenture’s outside sales team manages these brokers, or they utilize the manufacturer’s team of regional managers for the best combination and results.
  • Focus. Presenture uses proven sales processes that maximize broker engagement and increase focus. Presenture’s inside sales team fosters broker engagement by reaching out to the broker multiple times throughout the phases of the sales cycle offering support and guidance. Presenture’s inside sales team populates data on behalf of the broker into Presenture’s customer relationship management (CRM), increasing communication, collaboration, and team building as a result. Presenture’s CRM gives manufacturers national uniform reporting for the entire broker network.
  • Operational Expertise. Presenture acquires access to best practices and proven methodologies that may be too costly or time consuming for the manufacturer to implement in-house.
  • Cost Savings. Manufacturers can reduce overhead and the overall cost of human capital, including the hiring and training of new personnel, by utilizing Presenture’s services. This frees up resources for core business needs.
  • Time to Market. Partnering with Presenture enables the manufacturer to accelerate the execution of its foodservice strategy effectively and efficiently with less risk.

Presenture is a National Foodservice Sales Agency doing what no one else does, specializing in representing emerging foodservice manufacturers. We interact with our clients and customers in fresh ways, embracing new technology and processes while aligning our resources with those of our manufacturer-clients. By leveraging our culture, people, and systems, Presenture provides a complete foodservice solution that includes strategic planning, a managed national broker network, and critical support services to the industry.

Authors: Michael O. Maher & April Spears