Institutional food service channels

Connect to the market

There are different ways you can connect to the industrial food service market, including:

• Through a broker or distributor 
• Directly with a company or business
  • This is less common with institutional food service
• Working with group purchasing organizations

Price and costing model

It's important to know what your costs are and how you will price your product. Cost model will need to be at wholesale prices, and work from a cost instead of margin pricing model.

• This means you need to figure out your costs and add your markup to that number. The final total is your sales price

Volume and quality

Make sure you have enough volume for delivery and you know your product quality. 

Volume

• Have a guaranteed agreement with the minimum volume delivery requirement, with applicable late and short fees
  • Volumes are usually expected to be prepared in bulk

Quality

• Clarify the quality requirements for your product, for example: 
  • Low sugar
  • Consistent texture

Marketing

Develop a marketing strategy.

• A customer base needs to be established before entering this market
• Distributors may support you to market your product

Labelling and packaging

Know the requirements to label and package your product.

Traceability standards

• Labelling and packaging must meet traceability standards, including:
  • A traceability system to track and document the production, processing and distribution of your product
  • Universal Product Code (UPC) using the Global Systems of Standards (GS1)
  • Global Trade Item Number (GTIN)

Canadian Food Inspection Agency (CFIA) standards

• Labelling must meet CFIA standards. Generally this means:
  • Nutritional chart
  • Allergens
  • Ingredients
  • A best before date

Portion size requirements

There are portion size requirements by institution, for example:

• Pre-portioned
• Ready to serve

Visit CFIA’s food labelling tool to understand more on product specific requirements.

Certifications and audits

Certifications

Make sure you have the right certifications, this might include:

• Food Safety Certified Hazard Analysis Critical Control Point (HACCP) 
• Good agricultural practices (primary agriculture only)
• Canadian Food Inspection Agency (CFIA) - Meat products and food animals
•  A Hold Harmless Agreement
  • This is a type of insurance that prevents businesses from being held legally responsible for losses or damages for which they might otherwise be considered liable
• Insurance with a minimum of $2M coverage for:
  • Occurrence
  • Products and completed operations
  • General aggregate
  • Umbrella liability

Audits

You might be audited by a retailer to make sure you have the correct certifications.

A large retailer might also conduct a social audit to make sure your company follows social responsibility standards and ethical practices in areas such as:

• Labor practices
• Environmental impact
• Occupational health

Resources

• Tips for Getting Ready to Sell to Commercial and Institutional Buyers