Fruit preserves have been a popular ingredient for desserts, snacks, and toppings. Combines with nut butters, they make up the majority of the spread niche. In the following lines, you’ll find a full guide on the spreads business - how to start one, how popular are wholesale preserves, and what are the most common types of fruit preserves and nut butters.
What Businesses Buy Wholesale Peanut Butter
- Retailers. Naturally, supermarkets, grocery stores, and other retailers sell large quantities of peanut butter. Those that buy it wholesale usually have packing equipment or just sell it in bulk.
- Venues. Peanut butter is often an ingredient in desserts. That’s why it can be bought in large quantities by restaurants, bakeries, and other venues.
- Specialty stores. Health food stores are the most obvious example. However, many online stores offer organic food products too.
- Institutions. Schools, hospitals, prisons, and other institutions might require large quantities of peanut butter for their operations.
- Food manufacturers. Snacks with peanut butter are among the most popular ones. That’s why companies producing different types of sweet desserts often stock peanut butter.
Pros and Cons of Buying Bulk Peanut Butter
Businesses choose to work with wholesale food distributors for a variety of reasons. Let’s dive deeper into the main pros of buying bulk peanut butter.
- Lower cost per pound. The main benefit of buying wholesale preserves and nut butters is the fact that the price is lower.
- Customization options. When you buy something in large quantities, you have more leverage over the seller. That’s why wholesale buyers might negotiate a variety of things like customized products.
In B2B trades, buying wholesale peanut butter is popular. However, there are some disadvantages to buying bulk as well.
- Storage considerations. Even businesses that often use peanut butter might not use it in significant quantities such as other ingredients. That’s why it might take a lot of storage space that can be otherwise used for other products.
- Cash flow. Even though the price per pound is lower, buying wholesale peanut butter is an upfront investment. Thus, it might have opportunity costs. Consider finding suppliers of wholesale nut butters that also accept smaller orders.
- Peanut butter. It’s the most widely consumed nut butter and one of the most preferred spreads globally. It’s used in snack food, baked goods, dressings, toppings, and sauces.
- Almond butter. The rich texture and flavor of this spread make it great for baking recipes. It’s rich in fats and low in carbs. Thus, keto and gluten-free dishes frequently used it as an ingredient.
- Cashew butter. One of the main usages of cashew butter is as a vegan cheese alternative. It’s rich in proteins, has a creamy consistency, and is a popular ingredient in vegan desserts.
- Walnut butter. Being rich in omega-3 fatty acids and having a distinct earthy flavor, walnut butter is used in many diets. Walnut oil is also used in salad dressings.
- Hazelnut butter. The sweet and nutty taste of hazelnuts is an ideal component of many desserts. Hazelnut butter is often mixed with other ingredients such as chocolate to get a sweeter spread.
Nut Butters in the Restaurant Industry
Nut butters are used for breakfast food, brunches, desserts, pastries, and other dishes. Let’s dive deeper into the main applications of nut butters in restaurants.
- Vegan dishes. Vegan dishes are among the top restaurant industry trends today. Adding a creamy texture to a vegan dessert is not easy. One of the ways to do so is to use cashew butter or other non-dairy products.
- Beverages. Smoothies, milkshakes, and some types of coffees include nut butters in their recipes.
- Pastries. Baked goods are often made with fruit preserves like jam or nut butters. The nutty flavor adds richness to pastries.
- Bars and snacks. Nut butters can be a binding agent for sweet bars. They also contribute to the taste. The most common options are peanut, almond, and hazelnut butter.
Just like with other items, many businesses buy wholesale preserves and nut butters. The main advantage of this approach is the better price per pound. There are other reasons to buy wholesale though. For example, as wholesalers work with a variety of manufacturers and suppliers, their clients get access to different products. Furthermore, if you have enough leverage, you might be able to negotiate custom nut butter blends for the needs of your business.
The main disadvantage of buying wholesale is the fact that it’s a high initial investment. Restaurants or other businesses might not use as many nut butters, but they’ll still take up storage space. That’s especially true for less frequently used nut butters such as cashew, pecan, or walnut ones. That’s why it might make more sense to buy wholesale preserves and nut butters once your business uses large quantities of them.
With time, nut butters can chain their texture and lose some of their characteristics. Some bakeries and other businesses even prefer to work directly with manufacturers of peanut butter in order to be confident that it’s as fresh as it gets.
Where to Buy and Sell Wholesale Preserves Nut Butters
- Online marketplaces. The increase of eCommerce trade in the past decade is not just in B2C trades, but also in B2B. Businesses use various online marketplaces to find suppliers. That’s why distributors of wholesale preserves and spreads often offer their products at marketplaces like BlueCart.
- Exhibitions. Trade expos are a great way to find new clients and establish new partnerships. Suppliers of nut butters and wholesale preserves distributors can attend health, wellness, and food trade exhibitions.
- Specialty stores and grocery chains. In order to maximize revenue, you should consider offering not only wholesale preserves and nut butters but also smaller quantities. This can be done by investing in packaging tools and machinery. The jars or other containers can then be sold at grocery and specialty stores.
Nut butter enthusiasts might turn that into a profitable business. There are various business ideas you can explore in the field.
- Specialty or organic nut butters. You can manufacture and sell natural nut butters to local clients. If you’re an individual, the main regulations you need to follow are related to the Cottage food laws. Keep in mind that they are different in every state. In addition to that, you can also sell specialty products like cinnamon-almond nut butter or spicy pecan butter. Don’t hesitate to experiment with different blends. You might find a unique recipe that will turn your hobby into a very profitable business.
- Nut butter and food preserve subscription boxes. Nowadays, people try to automate as many tasks as possible. That includes buying groceries. You can benefit from that trend and offer subscription boxes that include jams, jellies, nut butters, and other spreads.
- Nut butter food truck or mobile stand. Even something as simple as a peanut butter and jelly sandwich can become a business. For example, you can open a mobile stand near a park or other place where a lot of people pass by.
- Organic nut butter bars. Health-conscious customers and athletes have multiple reasons to enjoy nut butter bars. For starters, they are very nutritious and rich in proteins. Additionally, they are tasty. That’s why making and selling on-the-go snacks made from organic nut butters can be a profitable endeavor.
Just like nut butters, manufacturing jams, jellies, and fruit preserves can be turned into a business. Let’s dive a little deeper into the subject of how to start a jam business.
- Prepare a business plan. This will be your jam and jelly business’s roadmap. A proper business plan should contain financial projections, marketing goals, objectives, planned products, pricing, audience, and markets.
- Research regulations. Regulations regarding trading with food products can be very different compared to other products. If you’re an individual, make sure to familiarize yourself with Cottage food laws.
- Choose what products to sell. Grape jelly and strawberry jam are among the favorite types for US families. However, the competition in that field is very high. Consider selling products that are exotic and not so popular. This narrows your market, but it can give you a competitive advantage.
- Facility and tools. If you wish to make jams and jellies in your kitchen and sell them after, you are free to do so. There are some regulations under the Cottage food laws. The main things you need are a large enough refrigerator, storage, packaging materials, and kitchen accessories needed to make the jam.
- Ingredients. Find suppliers of fruits and vegetables for your food preserves business. You can also check for wholesale produce distributors. That way, you will get a lower price per pound.
- Marketing, pricing, and distribution. Create a brand identity and use all suitable marketing channels to increase the brand recognition of your products. In the beginning, consider offering different types of discounts. “Buy 2, get 1 free” is a good example. Make sure to be active with the local community and during local events. You can even consider sponsoring a local sports team in order to find new loyal customers.
Jam and Jelly Business Ideas
Probably the most popular option for a jam and jelly business is to manufacture different types of jams and jellies. Homemade fruit preserves are a preferred option for many people. Furthermore, one of the latest trends in consumer behavior is to buy locally grown and made products. Thus, you can benefit from that tendency and attract customers from your community.
With homemade jams and jellies, the most popular distribution channel is to sell directly to consumers. This can be done at farmers’ markets or through your own website. However, consider finding partners that wish to sell on consignment. This is a win-win situation for both businesses.
Cottage food laws in different states have regulations regarding the revenue or the amount produced per year. That’s why, if your jam business grows and you wish to become a wholesale preserves distributor, you will need to research the regulations and get a wholesale license.
Small businesses that make and sell jams and jellies can attract customers by offering different blends and unorthodox flavors. These boutique products can be sold at a higher price and with higher profit margins.
Other ideas for jam and jelly businesses:
- Online store. Selling fruit preserves can be done online as well. Whether you manufacture them or use the dropshipping model, an online store for jams and jellies can be a profitable business.
- Classes and workshops. People are curious by nature. That’s why many might wish to know how to make their own jam. Furthermore, these jelly and jam-making classes can be a fun activity for the whole family.
- Gifts. Chocolates, nut butters, jams, jellies, and other food products can be great gifts. Hampers are often used as corporate gifts and you can never be wrong if you buy one of a special occasion for your loved one.
There are many reasons why businesses buy wholesale preserves. The lower cost per unit is the main one. In addition to that jam and jelly wholesalers can offer a variety of flavors from different manufacturers. Thus, it makes a lot of sense for businesses to use the services of suppliers.
There are cons to buying wholesale preserves too. Most suppliers have requirements regarding minimum order quantities. They might be too high for small companies or businesses that don’t use a lot of fruit preserves. Buying wholesale is a type of financial investment too. It is recommended for businesses with limited cashflows to buy only the products they need the most in large quantities. Otherwise, their storage might become full of products that don’t need replenishment often.
If you’re planning to start a jam and jelly business, you might want to do a proper research regarding the places to sell these products and what is needed to do so.
Where to Sell Jam and Jelly
- Farmers’ markets. Obviously, you can find many clients that search for local and organic products there.
- Events. Food festivals, local fairs, and craft shows can be the perfect place to sell homemade jams and jellies. You can also organize events where your products are sold. Such can be tasting events, workshops, or jam-making classes.
- Stores. Health food stores or gourmet shops might be interested in offering organic fruit preserves.
- Online. Invest in your website, but also benefit from selling products via online marketplaces. They attract millions of traffic and can help you increase sales dramatically.
- Through partners. You can combine forces with food vloggers, chefs, and other influencers in the food industry. They can promote your products for an affiliate commission.