Nut butters have a slightly sweet, savory, and nutty flavor. That makes them a popular ingredient in many desserts and an evergreen brunch and restaurant industry trend. While peanut butter is the most recognizable one, there are other varieties of seed and nut butters on the market. As the snack, bakery, and restaurant industries are striving to offer new products to their clients, using less-known nut butters for desserts and other dishes gives a lot of options. In the following blog article, we’ll give information on the pros and cons of buying wholesale nut butters as well as ideas on where to sell wholesale products from the food preserves and spreads niche.
Where to Sell Wholesale Nut Butters
Wholesale suppliers have multiple options where to acquire new customers. Let’s dive a little deeper and examine some of the places where you can sell wholesale nut butters.
Online Marketplaces
The past decade has been a true renaissance for the eCommerce trade. That’s why a wholesale nut butter supplier should offer their products on major online marketplaces and platforms. In addition to that, establishing your own website means you can skip the middleman and trade directly with customers. A marketplace like BlueCart connects wholesalers with their clients and provides various additional features such as invoicing and automation.
Health and Wellness Expos and Events
Attending trade shows is important for wholesale nut butter suppliers. As wholesaling is a B2B business, meeting with other companies at exhibitions is a great way to acquire new clients. Obviously, these can be trade shows related to the healthy eating industry. However, expos for the snack or hospitality industry can also lead to many beneficial contacts.
Search Customers Directly
Even though bakeries, restaurants, or snack manufacturers might already have a reliable wholesale nut butter supplier, you can still win them over as customers. In order to do that, you need to have better offers for them. Either in terms of pricing, quality, or product diversity.
Grocery Chains And Specialty Stores
Grocery stores might be interested in offering spreads in large quantities. Large families might wish to stock their pantries with these products as they have a long shelf life. Additionally, consider investing in packaging tools as selling jars or smaller quantities of nut butters can maximize the revenue for your business.
Nut butters are very nutritious and rich in proteins. That’s why they are among the top-selling products of health food stores. Other specialty stores that might be interested in stocking wholesale peanut butter and other butters are organic food stores.
Desserts and Snacks Manufacturers
A lot of sweets have peanut butter in them. The snack industry is constantly introducing new items on the market. Therefore, they’ll be interested in offering products with other nut butter alternatives such as walnut or almond butter.
Partner with Co-Packing Companies
A way to maximize the profits of your wholesale nut butters business is to sell to retail customers. However, that is not easy to organize. That’s why you can use a co-packer company. They specialize in packaging and labeling various products. Furthermore, many contract packagers offer additional services like warehousing and distribution.
Key takeaway: Selling wholesale nut butters can be a profitable business. Wholesalers can find clients both online and offline. The main reason to buy wholesale nut butters is the cost saving. The main reason not to is the storage difficulties it might cause.
Pros of Buying Wholesale Nut Butters
There are many reasons why businesses buy wholesale. Here are the main ones:
- Better price. Naturally, the main benefit of buying wholesale nut butters is that the price is lower than purchasing them in small quantities.
- Flexibility. Businesses that require different types of nut butters for their manufacturing needs might benefit from the flexibility wholesalers offer. If a business uses a truckload of peanut butter, but only a pallet of almond butter for a certain amount of time, a wholesaler might supply these different quantities.
- Access to different products. Nut butter wholesalers usually supply a large variety of both nut and seed butters. This means you can order alternatives to the popular nut butters without the need to contact other companies.
Cons of Buying Wholesale Nut Butters
Although buying nut butters in bulk quantities has advantages mainly related to cost savings, it has some downsides too. Here are some of them:
- High initial investment. Some companies might use a lot of peanut butter or other nut products but not enough to buy wholesale. Ordering bulk quantities means there is a lot of capital invested in that one ingredient which might not be optimal for the business.
- Storage capacity problems. Nut butters have a long shelf life and you might want to stock high quantities of them for the foreseeable future. However, that might pose a problem in terms of storage.
- Freshness. After some time, nut butters lose some of their characteristics. That’s why some bakeries and other businesses might prefer to regularly stock smaller quantities of these ingredients. That way, they will always use fresh and quality nut butters.
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Frequently Asked Questions about Wholesale Nut Butters
Obviously, one blog article can’t answer all questions regarding wholesale nut butters. However, below you will find the answers to some of the most common ones.
What Is Needed to Start a Wholesale Nut Butter Business?
In order to sell wholesale nut butters, you need to find the two most important things - manufacturers and clients. Companies that make and sell nut butters can be both small and large. If you source nut butters from small or homemade manufacturers, make sure they have the needed permits.
A restaurant wholesaler also needs to find the right clients to deliver products to. These can be venues, bakeries, snack manufacturers, and other enterprises that need nut butters in their business. You can find these clients at trade shows and exhibitions, online marketplaces like BlueCart, directories, or by reaching out directly.
Other than manufacturers and clients, a wholesale nut butter supplier needs the following:
- A business plan for starting a nut butter business;
- Obtaining all necessary permits and licenses for trading wholesale food products;
- Branding, marketing, and packaging design in order to make the brand recognizable;
- Quality assurance and strict control measures;
- Sales and pricing strategy;
- Shipping and logistics solutions;
- Scalability plan. If you plan to grow a wholesale nut butter business, consider selling jam or jelly wholesale as well. Make sure to research this aspect of the spread business as starting a jam business might be very different compared to nut butter companies. Alternatively, you can focus on other food products needed by the hospitality industry.
Are Nut Butters a Profitable Business?
Yes, both trading and making nut butters can be a profitable business. The approximate profit margin for nut butter producers is around 40%. Understandably, the percentage is lower for traders and suppliers. If you wish to increase the profit of your nut butter business, consider offering more luxurious items on the market like exotic nut or seed butters or interesting mixes.
What Are the Most Used Nut Butters?
It’s no surprise that peanut butter is the most used type both at home and in the hospitality industry. Other types of nut butters used in the restaurant industry and the baking business include almond, cashew, pistachio, hazelnut, and walnut. Seed butters also have applications in the food and beverage industry.