Nowadays, many people get confused between a food distributor and a food wholesaler because both of them overlap in their roles in the food supply chain. If you are in the food industry, knowing the difference between them is vital for you. Whether you are a food retailer, restaurant owner, grocery store owner, or any other food service provider. You should not use these terms interchangeably in your daily operations, as they carry different meanings. Today, we are gonna discuss the difference between a food distributor and a food wholesaler. Let's begin!

What is a Food Distributor?

A food distributor is directly connected with an FMCG manufacturer. It promotes and distributes its food products in a specific region or market. Its role is to work like a partner rather than a B2B customer. The food products distributor offers the products to the wholesalers, retailers, and other food service providers.  

The best FMCG distributor benefits both the FMCG companies and the local wholesalers and retailers with their extensive services. This food products distributor maintains strong logistics and warehousing facilities, as they usually operate in large quantities. A food distributor in UAE empowers the economic growth of any country. They act as a bridge between the local retailers, wholesalers and the international food companies. 

What is a Food Wholesaler?

A food wholesaler plays a significant role as it fulfills the demands of the retailers of the particular region. They are mostly connected with distributors to buy products in bulk. Food wholesalers act simply like a B2B customer. 

The best food wholesaler buys products from distributors in large quantities and resells them in smaller quantities at higher prices to the retailers. They are an important link in the supply chain of food products in UAE. Their team acts as an intermediary between the distributor and the retailer, helping the small establishment to have a steady supply of food products.

The Key Differences Between Food Distributors and Food Wholesalers

If you are still finding it difficult to navigate the difference between a food distributor and a wholesaler, you don't need to worry. It is a common confusion that many people face in their daily lives. You can find out the 5 key differences between them that will make the distinction clearer:

Representation

The food distributor actively represents the manufacturers and promotes their products. This food supplier provides marketing support and product education for the manufacturing companies. This helps the manufacturers get enhanced reach and a strong presence in the local markets. A food product distributor can usually represent many food products like confectionery, snacks, spreads, beverages, and more.

A food wholesaler is not restricted to represent the manufacturer. It buys products from distributors or sometimes manufacturers. Their team facilitate the products to retailers in smaller quantities and at higher prices. Overall, food wholesalers just act like a B2B customer to the manufacturer.

Exclusivity

The food distributor may need an exclusive agreement to sell products in a particular region from the manufacturers. In this way, they are bound to promote their products. The food distributor in Dubai usually promotes the products of many brands, including Coca Cola, Nestle, Mars, Lays, Milka, Pringles, and more.

The food wholesalers have no such contracts with the manufacturers, which means they are freer to stock the products of any brands without much conflict of interest. Therefore, they focus on maximizing their profits instead.

Focus

The food distributor focuses on the manufacturer's brand and sales goals to enhance their market reach in the local region. In this manner, a food product distributor in UAE also attains profits that keep them loyal to the manufacturers.

The food wholesaler has the goal of satisfying the demands of retailers in the region and maximising profits. They get profits through the margin between the wholesale price and the retail price.

Supply Chain Position

In a supply chain, the food distributor comes before wholesalers, as it has a greater role to play. It acts as a link between the manufacturer and wholesaler or retailers. It operates at a higher level than wholesalers.

The food wholesaler comes after the food distributor, as it acts as a link between the distributor and retailer. It generally has fewer connections to the big FMCG company in Dubai. It is more closely linked to the retailers who satisfy the demands of the consumers.

Marketing

The food distributor actively engages in the marketing and promotional activities of the products to strengthen brand awareness and sales. They also offer logistics and warehousing facilities to smooth the management of the products. The food distributor in UAE usually offers products like spreads, beverages, milk powder, tea and coffee, and many others.

The food wholesaler is not restricted from participating in the marketing and promotional activities of the products. Their role is to provide for the retailers only. These wholesalers offer a wide range of food products, for instance, Fanta soft drink, Milka chocolates, Lays chips, Bounty chocolate, Ferrero Rocher chocolate, Nutella, Lotus spread, and much more.

Bottomline

Overall, from the above discussion, we can decipher that the food distributor is more closely linked to the food manufacturer, and the food wholesaler is closer to the retailers. Both of them have a pivotal role to play in the UAE market. They are facilitating the availability of food products in the local market from the leading international brands. If these intermediaries weren't there, it would be impossible for the retailers to get the products directly from the manufacturers. They help in getting a wide range of high-quality food products available in the local market at an affordable price.

If you have a retail store, restaurant, grocery store, convenience store, or any other food service provider and are in need of the food products in bulk, then you should contact an FMCG distributor around you. They not only specialise in providing food products but the other daily essential products, too as personal care and toiletries. You can get authentic products from them at competitive prices.