How do I check a specialty food wholesaler’s product lines and top suppliers?
List every product line with its supplier, then see which lines carry the business and which suppliers could walk away from the business. Ask for supplier agreements and whether the wholesaler holds exclusive rights or simply buys on open terms.
A specialty wholesaler is only as strong as the products it can reliably get. Ask for a product list that names the supplier behind each line, how long that relationship has lasted, and how much of the sales depends on each. Look for lines that sell steadily and lines that look like leftovers from earlier decisions.
Then read the supplier terms. Some suppliers give a wholesaler exclusive distribution; others will sell to anyone who orders. Ask whether any exclusivity is written down and whether it passes to a new owner. Some suppliers also have a say over who may carry their products, so a quick conversation with the main ones, once the seller agrees, can show how they see the change.
Finally, check the paperwork on the food side. Ask which licences the wholesaler holds, how products are traced, and what happened during any past recall. A supplier who cut the business off before is a sign to ask why. Your accountant can compare purchase records with the stated product mix. Ask also how new products are chosen, since a buyer should know whether the range was built by taste, by customer demand or by whatever a supplier pushed.
Key takeaways
- Match every product line to a named supplier and its share of sales.
- Ask whether supplier exclusivity is written down and whether it transfers.
- Review licences, tracing records and any past recall.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentHow to diversify your supply chain
- 03Canadian Food Inspection AgencyGovernmentRecall procedure: A guide for food businesses
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