Distribution Disruptors (2022)

Disruption within foodservice distribution - from the August 2022 IFMA Foodservice Distribution Disruption White Paper.

A portion of the whitepaper speaks to disruptors – new, technology-focused companies that are entering the foodservice supply chain. Examples include:

•  Third-Party Ecommerce-Only Distributors. Not new but fueled for exponential growth.
  • “Since launching its new ecommerce platform in September 2018, FoodServiceDirect.com, says it has seen B2B sales and new customer acquisitions each increase 40%, and repeat purchases jump 110%.”
• Cash and carry redefined. Usually used for “fill ins,” now seeing the addition of ecommerce and crowdsourced local delivery through services like Instacart.
  • “Labor-constrained operators can now order critical items and have them delivered within an hour or at a prescribed time with zero disruption to their business.”
• Venture Capital-Backed Distributor Marketplace.
  • Investment in food ecommerce has been rising over the past decade. One provider type receiving massive funding has been distributor marketplaces: digital “one-stop shops” that allow operators to order from all of their distributors/suppliers through one ecommerce-based interface.
    • Emergence of marketplaces could threaten traditional business and revenue models for distributors
    • See download for info two marketplace examples – Cut + Dry and Choco.com