Food marketing agencies help manufacturers navigate national distribution through broker network management and distributor relationships. A managed service model allows manufacturers to retain ownership of sales networks while accessing established industry connections, protecting long-term business interests.
-- Food manufacturers pursuing national distribution increasingly confront a fundamental question about their sales infrastructure: who should own the broker relationships that drive revenue growth?
The U.S. foodservice distribution market represents roughly $370 billion annually, according to Morningstar industry analysis. The three largest distributors—Sysco, US Foods, and Performance Food Group—control approximately 35% of the market combined. This fragmentation creates both opportunity and complexity for manufacturers seeking to expand beyond regional success.
Traditional broker arrangements typically position the agency as the owner of customer relationships, sales data, and distributor connections. Manufacturers depend on their broker's continued commitment to their products. When relationships end, manufacturers often find themselves rebuilding from scratch while competitors gain ground.
An alternative structure has emerged in the food industry: the managed service provider model. Under this approach, a food marketing agency builds and manages a custom broker network specifically for each manufacturer—but the manufacturer retains direct ownership of all broker contracts and relationships.
The distinction proves critical when manufacturers consider long-term business continuity. If the agency relationship ends for any reason, the manufacturer keeps its entire sales infrastructure intact—brokers, distributor relationships, and customer data all remain under the manufacturer's control.
Comprehensive food sales and marketing services encompass far more than broker management. Quality agencies provide headquarters-level relationships with major distributors, uniform reporting systems across all markets, and dedicated regional leadership.
The foodservice channel alone encompasses approximately 5,000 distributors across 65 distinct markets. A national foodservice brokerage partner must demonstrate established relationships across all major markets, not just claimed coverage. Sysco alone reported $81.4 billion in revenue for fiscal year 2025 and serves approximately 730,000 customer locations.
Manufacturers evaluating food marketing agency partnerships increasingly prioritize the ownership structure alongside traditional metrics such as geographic coverage and category expertise. The question of who controls broker relationships has become a primary consideration in agency selection.
Industry observers note that food manufacturers seeking national distribution partners should carefully examine contract structures, ensuring that broker agreements remain in the manufacturer's name regardless of which agency provides management oversight.
This content was developed in partnership with Texas digital marketing agency ASTOUNDZ.
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