Healthy snacks for kids are gaining popularity in the US market by offering nutritious and tasty options for health-conscious families. New Zealand’s dairy snack brand MChews has introduced these products to food distributors in the US. This article presents impressions gained during the process of finding distributors for MChews.
MChews: Healthy snacks for kids
MChews belongs to a group of companies based in New Zealand’s South Island. They develop and produce innovative healthy food products. The MChews brand entered the New Zealand market in mid-November 2019. It has grown rapidly thanks to effective branding and marketing.
US snack market situation
In recent years, the US market for specialty healthy foods has grown rapidly. Distributors and agents focusing on this area have driven much of this growth. Healthy snacks are often linked to fruit bars and dried fruits. However, products like MChews, made from natural milk, offer unique alternatives.
Shifting retail preferences and emerging consumer demands
As in the rest of the world, US retailers now seek a much more diverse product range than in previous years. Online marketing rapidly spreads product awareness, while shifting demand for niche items like organic, non-GMO, vegan, and artificial color-free products fuels this change. Consumers willing to try new products also value transparency about content and production processes. Consequently, these evolving demands create opportunities for small companies. At the same time, large companies adapt by using specialized distribution networks, online platforms, and major retail chains.
The rise of healthy snacks and market opportunities
Since the 1930s, snacks have started to replace main meals. With the trend toward healthier lifestyles, consumers now seek healthier snack alternatives, which drives industry growth. In the US market, healthy snacks mostly consist of fruit bars and dried fruits. Few alternatives focus on milk-based products for children. Many distributors and agents in the market see opportunities for innovative products like MChews.
Presenting MChews in glass jars has given the impression that the product is a food supplement. This has raised questions about how many a child can consume daily. Using pouches or more practical packaging would strengthen the snack image and boost sales.
Healthy snacks for kids distributors
The first option to sell food products in the US involves partnering with importers and wholesalers, typically medium-sized companies. These firms buy and import your products, then manage all distribution. As a result, this method demands less time and money. However, it also limits your control over the market. In addition, your company must oversee the distributors, which can be challenging from outside the US.
The second option is to work with large distributors covering all or specific US states. These companies are well-developed and connect you directly with major retailers and sales channels. They work best if you already have significant sales volumes. Choosing this route requires a strong marketing strategy and convincing retailers about your product. KeHE and UNFI are the two largest distributors in the US specialized in natural and healthy foods.
When working with large or medium-sized distributors and retailers, it is highly recommended to hire a food broker. The broker actively approaches retailers and distributors’ sales teams on your behalf. Moreover, they ensure your product receives priority and help you refine your marketing strategy based on market feedback.
Margins and prices
In this project, MChews was introduced to importers, wholesalers, two large distributors, and brokers. When setting retail prices, the value chain stages, costs, and profit margins of all parties were considered. It was decided to price MChews similarly to other healthy snacks in the mid-high segment.
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For more information about healthy snacks, healthy food, FMCG, the market situation in the US, and finding business partners in these and related sectors, please contact us. We can arrange a call with our consultant who managed the distributor search project in the US for this New Zealand company.
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