I believe that launching your CPG brand in a single region with key regional grocers is the smartest strategic and financial move you can make. Here’s why I stand by this approach: 1. Distribution – Partnering with UNFI or KeHE in a focused region unlocks all the retailers there. Expanding across multiple DCs at once is expensive. Concentrating on one region lets you maximize your marketing ROI, show strong velocities in the distributor's DC, and build momentum. Launching in Gelson’s (SoCal), Central Market (Texas), and Wegman’s (NY) at the same time means juggling two distributors, three DCs, and marketing in three distinct regions—each with its own customer base. Instead, focus on three retailers using just one UNFI DC for the best results. 2. Diversification – Getting discontinued happens. By securing multiple points of distribution within a single region, you protect yourself from the risk of losing your distributor entirely if one retailer drops your product. 3. Funding – You can launch in one region with a few hundred thousand dollars. But every time you add another region, you're stacking on similar costs. 4. Product-Market Fit – Some chains will perform well with your product, and others won’t. But if they’re all in the same region, you’re dealing with a more similar customer base. 5. Supply Chain – Managing ingredients, materials, and logistics for one region is far simpler than trying to scale across multiple areas, even if the store count is the same. #CPGStrategy #ProductLaunch #RegionalGrowth #DistributionSuccess #UNFI #KeHE #RetailExpansion #SupplyChainEfficiency #BrandBuilding #ProductMarketFit #CPGMarketing #Entrepreneurship #GrocerLaunch #FoodAndBeverage #StartupGrowth #cpg
Excellent post. My only comment would be the opportunity to avoid KeHE and UNFI entirely by starting with other distributors. I've seen brands leverage this approach to avoid these 2 distributors altogether
Nice list. I would add to explore some regional distribution partners to start for the launch depending on the channel.
100% agree. It’s much easier to focus and optimize your top of funnel marketing initiatives also.
Great post Lonny James Ruben
Slow clap...
Sound advice for any emerging brand!
Great info here!
I’d argue regional DSD’s are a better first step for most brands. Kate Cash is right on. Leverage the big boys once you have the turns and geographic need. Always ask buyers who their secondary distributors are. We’re talking: LoCo Food in Cooorado, Chex on east coast, Rainforest and others in NYC, and the list goes on. They may seem more expensive at first but the chargebacks from those other guys will turn margins upside down in a heartbeat
How can focusing on one region for launching a CPG brand help in maximizing marketing ROI and building momentum?
Founder, Elite Commerce Group | E-Com & Retail Media - Amazon, Walmart, Instacart, Criteo | Banned from Chuck E. Cheese | USMC Combat Vet
3moI can only look at this through the lens of someone who drivesretail velocity for a living. I get a front row seat with a lot of brands and a lot of different strategies. Regional first, as you said, is the way. Younger brands approaching their first national launch think it’s hard to get in the retailer. Is much harder (and more expensive) to *keep* those retailers. It takes a long time to build up the awareness and demand necessary to keep a retail account healthy. Regional allows brands to consolidate and focus that effort. This is a much needed topic!