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How to Enter New Markets as a Food and Beverage Manufacturer?

Enter New Market as Food and Beverage Manufacturer

You can’t get into the food and beverage industry without a plan, even if you’ve got a great new product. The U.S. food and beverage industry is fiercely competitive, so jumping in unprepared can cost you money.

You’re probably thinking, what should I do to avoid costly mistakes and get noticed?

In this blog, we’ll discuss the biggest challenges and how to navigate them so you can confidently expand into new markets.

Major Challenges in the Food and Beverage Industry

Let’s talk about the major challenges in the food and beverage industry.

1. Changing Consumer Preferences

There’s always something new happening in the food and beverage industry 

For example, consumers are increasingly focused on plant-based products, sustainable sourcing, and clean labels. Staying on top of these trends is critical for starting a food brand. Not meeting consumer expectations can lead to missed opportunities.

2. Navigating Complex Regulations

Compliance with food safety and labeling regulations is a major challenge. In the U.S. follow FDA guidelines for food safety, labeling, and packaging.

For example, the Food Safety Modernization Act (FSMA) requires manufacturers to create a food safety plan. This means you must document and implement preventive controls to avoid contamination. Without compliance, you risk costly delays or penalties.

3. Competition

You’re not just competing against established brands but also niche startups. To succeed, you need to highlight what sets your products apart—whether it’s unique flavors, sustainable practices, or a healthier option.

4. High Operational Costs

Starting a beverage business or a food company involves significant upfront costs. From securing raw materials to marketing, managing your budget wisely is crucial.

For instance, sourcing premium ingredients might be appealing, but if it increases costs without guaranteeing customer demand, it could hurt your profitability.

How to Enter New Markets in the Food and Beverage Industry

Here are key steps to follow when expanding into a new market:

1. Research and Planning

Research is the foundation of successful market entry. Before anything else, you need to gather as much information as possible about your target market.

This includes:

For example, if you’re starting a beverage business and your competitors are mostly focused on sugary drinks, offering a healthy, low-sugar option could help you stand out.

2. Develop a Business Plan

A solid business plan gives you a roadmap to follow, helping you stay focused and organized.

Consider the following when building your business plan:

3. Licensing and Permits

Before you can start selling in a new market, you must ensure that you comply with local regulations. In the U.S., food and beverage manufacturers need to meet specific health and safety standards.

Here are some key regulations to be aware of:

4. Build a Strong Distribution Network

Once you’ve secured the necessary licenses, it’s time to focus on distribution. A reliable distribution network is key to getting your product into the hands of consumers.

You can either:

5. Marketing and Promotion

After you’ve set up your distribution, you need to focus on effective marketing strategies. How will you let potential customers know about your product?

Consider using a mix of:

6. Monitor and Adapt

After launching in a new market, the work isn’t over. It’s important to continually monitor how your product is performing. Pay attention to:

Bonus Tip: Use Brizo FoodMetrics – Foodservice Market Intelligence Tool

We designed Brizo FoodMetrics to give food and beverage manufacturers the data they need to succeed in new markets. It’s not just a database of restaurants; it’s a comprehensive market intelligence tool built to help you make smarter decisions.

With Brizo FoodMetrics, you can:

For example, if you’re starting a beverage business, Brizo FoodMetrics can show you which regions have a growing demand for healthy drink options. That way, you can target your efforts more effectively.

Conclusion

Now, you have a clear roadmap to enter new markets with confidence. You’ve learned the key steps to overcome challenges and make informed decisions for your food or beverage business.

Want to skip costly mistakes and actually grow using the right data? Try Brizo FoodMetrics.

Brizo FoodMetrics gives you access to 2.1M+ foodservice establishments, detailed insights into menu items, tech stacks, and more. With Brizo, you’ll discover new markets, extend your reach, and enrich your sales pipeline. Sign up now for a FREE trial.