A Guide to Wholesale Snacks and the Wholesale Candy Business

October 31, 2022
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Are you a candy enthusiast? Do you want to start your own wholesale candy business or start selling wholesale snacks? If yes, this guide will help you get started to ensure business success. 

Many stores these days specialize in candy sales and these include eCommerce stores and brick and mortar locations. Such businesses tend to operate using a B2B business model or direct to consumer approach. 

Regardless of the business model that you choose, it’s important to keep in mind that the wholesale candy business is profitable. There are many business opportunities when it comes to candy and wholesale snacks. This is especially true since the candy manufacturing industry generates more than $20 billion annually. 

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Wholesale Snacks and Wholesale Candy Industry Trends 

Candy is often considered to be an indulgence. Many people tend to associate candy with religious holidays such as candy canes during Christmas and chocolate bunnies during Easter. 

There are many trends within the food and beverage industry that businesses should follow in order to stay competitive. These include beverage trends, fresh produce trends, coffee industry trends, and restaurant industry trends

When it comes to wholesale snacks and wholesale candy, there are also a few popular trends to follow. 

Popular wholesale candy industry trends include:

  • Chocolate
  • Caramels and nougat sweets
  • Toffees
  • Lollipops
  • Jellies and chewy sweets
  • Gums
  • Mints
  • Boiled sweets or hard candy

4 Steps To Starting a Wholesale Candy Business

When considering opening a business for wholesale snacks or candy, it’s important to plan for success. Even in a thriving industry with great opportunities, the process isn’t always a piece of cake. 

Here are four steps to start your own wholesale candy business:

1. Create a Business Plan

Running a wholesale business requires proper planning and a detailed business plan. It’s important to write a business plan so that you have a blueprint to refer back to as you grow your business.

An ideal wholesale candy business plan should include your niche market, expenses, profit predictions, competitor analysis, and wholesale marketing plan. 

Your potential business expenses include ongoing expenses such as rent, property insurance, eCommerce business insurance, inventory cost, and electricity. It’s also important to consider the labor cost and payroll taxes for your employees.

2. Name and Register Your Business

Once you determine the kind of wholesale snacks, candy, and other wholesale products you plan on selling, you have to choose a name. The ideal name for your wholesale candy business should resonate with your target market. 

Perform the following research to ensure your business name availability: 

  • Web domain availability
  • State business records
  • Social media platforms
  • Federal and state trademark records

You can register your business after you choose a business name. This process will vary based on your state and the city you’re located in. 

Most of the time you will need to get an Employer Identification Number (EIN) to use when filing payroll and federal taxes. Consider exploring the local business registration requirements in your city for more information.

Once you register your business, you can start obtaining the necessary permits and licenses for your business. A health permit is crucial, especially when working with food items. This can ensure that you are up to date with food safety practices.

3. Find Distributors and Stock Up On Inventory

You need products in order to open your doors or make your website live. To get products on hand, you need to know how to find wholesalers. One way is to browse through a wholesale directory for candy and wholesale snacks. 

Be mindful of the fact that many wholesale distributors will have set MOQ or EOQ requirements. This may result in you having to pay more money upfront for a larger quantity of product. Many businesses prefer to pay for the wholesale vs retail price of products because it provides long-term benefits.

4. Start Marketing

As a new business, you need to focus on customer acquisition and customer acquisition strategies to attract new customers. Developing a marketing plan will help you get started on the process.

There are different marketing tactics to consider including paid and free marketing. You may also consider using marketing software, inbound marketing, and different 

New businesses will need to focus on customer acquisition in order to gain customers. This is possible with customer acquisition strategies and marketing tactics. Be sure to look into different types of email marketing.

Once you attract customers, you have to work on customer retention. This will allow you to hold onto your customers long-term. One way to do this is through a loyalty program, such as a restaurant loyalty program

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Marketing Tactics for an Online Candy Store

When running an online business, you need to have strong marketing tactics to be successful. This starts off with having an eCommerce marketplace complete with built-in SEO tools.

Here are five marketing tactics for running an online candy store: 

1. Offer Promotions, Sales, and Discounts

People tend to like good deals. That’s why running sales, discounts, and promotions is a great way to attract new and existing customers. These include running seasonal sales, buy-one-get-one discounts, and loyalty program discounts. 

2. Social Media

Promoting your business on social media is a great marketing tactic. Popular platforms include Facebook and Instagram because they have tools that provide you with an opportunity to measure the effectiveness of your posts. 

It’s possible to use free marketing tools and paid advertisements on social media. Incorporating both methods into your social media marketing strategy will ensure maximum exposure for your business. 

Common social media marketing tactics include: 

  • Engaging with related pages. Most related pages will be your competition. However, engaging with them will provide you with an opportunity to engage with their fans. It’s likely that their fans will also have an interest in your products. 
  • Posting regularly. Consistency is key with social media which is why it’s important to have a consistent posting schedule. This way, you can reach a large audience and expand outside your local area. 
  • Hosting giveaways. A way to increase traffic to your social media account and your website is through giveaways. It’s ideal to host giveaways once you have a large following so that people know about your brand and trust it. 

3. Maintain a Blog

Having a blog on your website will provide you with an opportunity to utilize SEO tactics to increase website traffic. This will also help with increasing brand awareness. 

Including keyword-rich content and performing eCommerce keyword research will help your website stand out from the rest. Common blog ideas for a wholesale candy business include recipes using candy products and anything candy or sweets-related.

4. Link Building

Another SEO tactic is link building because it helps websites rank higher up on the search engine results page (SERP). Link building involves external linking and internal linking. External links lead visitors from your site to other websites whereas internal links lead visitors to other pages within your own site. 

5. Email Marketing

After you gain customers, you can start utilizing eCommerce email marketing tactics. An email marketing campaign will allow you to inform customers about upcoming promotions, new products, and sales. 

With email marketing, you can engage your customers and keep them in the loop about what’s going on with your business. It’s also possible to send them the latest blog postings and upcoming event information. 

6 Bulk Candy Store Costs

The costs for opening a bulk candy store will vary depending on a few different factors, such as the size of the store. 

Here are six bulk candy store costs to keep in mind:

  1. Startup costs. These will depend on the size and scale of your business. Startup costs refer to inventory, equipment, supplies, and cash reserves. On average, small business startup costs range from $5,000 to $50,000.
  2. Inventory. Dealing with wholesale candy means that you need to have a strict inventory management process to ensure that you keep track of inventory. This will also allow you to track your reorder point and keep up the par level of inventory. Knowing when inventory comes in and out will also ensure proper food safety practices. 
  3. Store supplies. If you’re running brick and mortar wholesale candy business, you need to have proper store supplies. These include shopping bags, packaging, and dispensers. On average, these supplies can range from $500 to $1,500. 
  4. Candy-making equipment. If you plan on making the candy on your own instead of working with a candy supplier, you need the proper equipment. Examples of such equipment includes mixing bowls, double boilers, whisks, candy thermometers, and sheet pans. This equipment can cost about $6,000. 
  5. Shelving and displays. Keeping things organized is crucial, and it’s how to properly run a wholesale business. Proper warehouse inventory management starts with organization and this includes shelving and displays. Working with wholesalers with MOQ and EOQ levels means that you will likely have excess inventory that needs proper storage. These shelves and displays will help with that.
  6. Signage. Signs allow you to communicate essential business information to your customers. The average cost of store signage will range between $500 and $1,000.

4 Tips for Candy Shipping

While most candy isn’t perishable, it’s still important to properly ship candy in order to protect it. This way you can ensure that it reaches the customer in excellent condition. 

Here are four tips for shipping wholesale candy:

1. Plan Your Deliveries Ahead of Time

Be mindful of the fact that the summertime is when people travel the most on holidays or vacations. This time is also the hottest of the year which is why it’s important to bring in your packages from the heat outside.

Planning deliveries ahead of time will help you ensure that your customers get their candy quickly. Look into expedited shipping options such as overnight shipping and flat rate shipping.

2. Properly Store Your Inventory

Running a wholesale candy business means that you need to have proper inventory management practices in place. The right inventory management techniques will allow you to track your inventory as it comes in and out of your business. 

Maintaining the temperature of your warehousing facilities will also be helpful. This is because you shouldn’t store candy in warm temperatures or in direct sunlight as it can cause damage or melting.

3. Pay Attention to the Packaging Process

When shipping your candy, it’s crucial to utilize proper packaging methods. This way the items will stay safe during transportation. 

The question of, “how much does it cost to ship a package?” will likely arise when shipping packages. However, you should also pay attention to the kind of eCommerce packaging you use and how to measure a box for shipping

Using the proper packaging will keep your items safe and in excellent condition. It’s ideal to use sturdy shipping boxes, cushioning, and cooling packs in the packages. 

4. Be Mindful of Hot Weather

Wholesale food distributors should be familiar with how to ship food. This includes how to ship cookies, how to ship dairy, and candy products such as chocolate. 

During the summer months, the heat can get intense. It plays a huge role in the quality and freshness of your candy and chocolate. Using temperature-controlled packaging will allow you to keep your candy products safe. 

What To Look For in a Wholesale Chocolate Supplier

Starting a wholesale chocolate business means that you will need to find a chocolate supplier. A good way to find one is to look into how to find wholesalers or browse through a wholesale directory

After you secure a supplier for your wholesale candy business, you can start working on your delivery management plans. This way you can monitor inventory levels and keep the right amount of products on hand.

Starting a Snack Food Distribution Business

Developing relationships with snack wholesalers is crucial for a snack food distributor. You are the middleman between wholesalers and retailers.

To start your business, you have to first establish a niche and companies within that niche. Do your research because you will be representing these companies with your snack products. 

As a snack food distributor, you should have:

  • Secure storage space for your snack inventory
  • A reliable way to transport your snack products to your buyers

Food is perishable which is why it’s important to properly store it. Your snack products should ideally be stored out of direct sunlight and in a climate-controlled environment. This is because severe weather conditions will affect the snacks. 

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Healthy Snacks - 4 Things to Look For

Everyone has a different understanding of the term “healthy” which is why it’s important to focus on a niche and product that fits your ideal customer’s vision of the term. Some healthy snacks have low amounts of calories, carbohydrates, and sodium, and are fat-free.

These are 4 things to look for in healthy snacks:

1. Macronutrients

Macronutrients are how our bodies get their energy. These include carbohydrates, protein, and fat. The ideal healthy snack should have at least two of the following components: 

  • Plant-based fat
  • Protein
  • Fiber-rich carbohydrates

2. Fiber

It’s necessary for food to have fiber in order for our bodies to feel full. A few grams of fiber in a snack is ideal to reach your daily goal for fiber intake.

3. Sodium

Many pre-packaged snacks have high levels of sodium and this isn’t healthy. Sodium is commonly used as a preservative and for taste. However, low levels of sodium represent a healthier option. 

4. Sugar

It’s possible to sweeten foods using natural sweeteners such as dried fruit. Added sugars are an indication of unhealthy food. Healthy snacks will ideally have less than 2 grams of sugar or no sugar at all. 

Gourmet Popcorn: What Is Gourmet Popcorn?

Gourmet popcorn refers to hand-made popcorn in smaller batches compared to regular popcorn, and it includes little to no added preservatives. It’s popular for gourmet popcorn to come in different flavors such as caramel, butter, cheese, and chocolate. 

When in the wholesale candy business, creativity is important. With gourmet popcorn, you can get your creative juices flowing with flavor experimentation. 

Popcorn is a healthier snack option and one that many consider selling through a wholesale food distribution business. It’s possible to make your business stand out from the competition with unique packaging options and flavors. 

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