For emerging consumer packaged goods brands, making the leap from local farmers markets or direct-to-consumer digital channels onto physical retail shelves is both the ultimate goal and a formidable operational hurdle. 

At ECRM’s recent Food & Beverage Sessions in Dallas, Road 2 Retail podcast co-hosts Bruce Montgomery and Tracey Priest brought together veteran grocery merchants to peel back the curtain on what it truly takes to be retail-ready. Drawing from decades of commercial experience across major retail markets, the panelists provided insights that will help founders navigate the complex, capital-intensive grocery landscape while avoiding the critical operational mistakes that often lead to product discontinuations.

Panelist Andrea Hatziyannis is the Private Brands Strategy Manager at Sprouts Farmers Market, who has more than 20 years of industry expertise spanning R&D, manufacturing quality control, and private label management across dairy, bulk, and frozen categories. Joining her was Tim Ryan, a 38-year veteran at Albertsons Companies whose career evolved from stocking store shelves to managing major national frozen categories, including pizza, snacks, potatoes, and vegetables, following a five-year tenure managing salty snacks for the entire national footprint.

Throughout the session, the panelists provided candid, practical guidance on how emerging brands can differentiate themselves in crowded store aisles, build resilient supply chains, and structure sustainable commercial plans. Rather than focusing solely on winning initial shelf placement, Hatziyannis and Ryan emphasized the intensive execution required after launch, including managing product velocity, maintaining inventory flow, executing targeted marketing, and adapting to evolving consumer expectations. 

Road 2 Retail: What major consumer and category trends are currently driving growth in the healthy food, snack, and beverage spaces?

Ryan: When analyzing category growth from a merchant perspective, everything originates directly with customer expectations and shifting shopping habits. Right now, we are seeing strong sales growth at both ends of the economic spectrum – value-driven items are performing exceptionally well, and premium products are also expanding rapidly, which leaves mainstream products feeling squeezed in the middle. Emerging, smaller brands that introduce genuine innovation are driving much of this category growth. However, regardless of how strong a product's nutritional claims are, the absolute baseline requirement is that it must taste good. You can build an item around high protein or high fiber, both of which are hugely popular right now, but if the taste profile falls flat, the product will not sustain repeat purchases.

Hatziyannis: At Sprouts, our primary brand value is to be deliberately different, and we live that value through how we curate our store shelves to inspire shoppers. We view our target market as sitting at the intersection of health-conscious consumers and adventure seekers who enter our stores looking for culinary discovery. These shoppers are actively searching for health-forward, organic, or specialty items that they simply cannot find at standard traditional supermarkets. To capture these shoppers, emerging brands need to lean heavily into unique product attributes and clear differentiation that fulfills an unmet customer need.

R2R: What does meaningful innovation look like to a retail buyer, and what product pitches are feeling overdone?

Ryan: Meaningful innovation revolves around ease of preparation and genuine health benefits for modern families. A great example of this is how the explosion of air fryers has transformed frozen food consumption, as busy families look for quick, high-quality meal solutions. Innovation that aligns with how people actually cook and live – delivering high taste, value, and premium quality with maximum convenience – is what resonates. Conversely, buyers do not need more cut-and-paste brands that simply duplicate existing shelf items. Just because a product is new to a founder or their immediate circle does not mean it is new or differentiated to the retailer or the broader consumer base.

Hatziyannis: True innovation requires moving past basic product attributes that have been standard in the industry for years. We want to see brands take popular health attributes and expand them into new formats or store categories, moving beyond the freezer into shelf-stable applications where consumers need convenient choices. Modern consumer lifestyles are evolving at an unprecedented pace, and brands must keep up with those shifting daily routines. Simply repeating a standard attribute across a standard category is no longer enough to stand out on a crowded retail shelf.

R2R: How should an emerging brand structure its expansion strategy without overextending its resources?

Ryan: Scaling too quickly is one of the most dangerous mistakes a young company can make. Instead of attempting to launch across all 2,200 stores in a massive national footprint right away, a brand should start with a controlled regional test of 20, 40, or 50 stores in key markets like Southern California, Chicago, or Philadelphia. This localized approach allows the supplier and retailer to verify execution, measure sales velocity, refine social media messaging, and iron out packaging or supply chain issues. Rolling out too fast risks disappointing consumers and failing on a national stage, whereas testing and measuring allows a brand to dial in its strategy, make necessary adjustments, and then scale up smoothly from a position of strength.

Hatziyannis: Uncontrolled growth often leads to severe operational strain, outrunning available cash flow, and ultimately triggering high product discontinuations, markdowns, and returns. While some brands backed by major parent companies or well-connected brokers can handle rapid rollouts, most emerging founders need to maintain tight control over their distribution expansion. It is vital to master the nuances of distributor networks, understand inventory fulfillment, and ensure product demand is fully established in regional pockets before attempting to go coast-to-coast.

'Scaling too quickly is one of the most dangerous mistakes a young company can make.' - Ryan

 

R2R: What specific elements must an emerging brand include in its pitch presentation to convince buyers they are ready for shelf space?

Hatziyannis: When evaluating a new brand, buyers look closely at the complete consumer experience, starting with the physical packaging. Packaging must be functional, easy to open, designed appropriately for store shelf dimensions, and intuitive for how the consumer will store and prepare the item at home. Furthermore, a brand must articulate clear, compelling attributes that give shoppers a reason to buy the item repeatedly. Winning initial trial on the shelf is only the first hurdle; the product must deliver enough quality and convenience that it becomes an essential, recurring item in the shopper's household grocery routine.

Ryan: Beyond packaging and product claims, a brand pitch must cover the core business fundamentals, including accurate nutritional claims, cost structure, competitive suggested retail pricing, and a clear distribution network. Crucially, a founder must bring a comprehensive 52-week commercial plan that explains exactly how they will drive consumer demand into store aisles consistently throughout the year. Buyers need to see that the founder understands that securing shelf space is merely step one. The hard part is generating continuous velocity, and without a solid full-year plan for promotions, marketing, and execution, getting onto the shelf will not translate into business success.

R2R: How significant are third-party certifications like USDA Organic, Non-GMO, or Gluten-Free in a brand's evaluation?

Hatziyannis: Third-party certifications hold substantial weight with shoppers because they provide instant verification and consumer confidence. For instance, a certified gluten-free seal gives celiac consumers absolute peace of mind, while the USDA Organic seal remains the single most recognizable and trusted mark in grocery retail due to rigorous government oversight and auditing. Consumers trust that the verified standard on the package is genuine. However, founders must exercise caution and avoid cluttering their packaging with an overwhelming list of logos. Identify the specific two or three certifications that truly move the needle for your primary target customer, state them clearly on the front of the pack, and let those core attributes drive buyer interest.

Ryan: Certifications provide instant credibility on the shelf, but they must align directly with what the target customer in that specific category is seeking. Whether a brand highlights organic, regenerative, or zero-carb attributes, those claims must be accurate, verified, and easy for the consumer to digest at a glance. Certifications reinforce a product's value proposition, but they must be backed by great taste and realistic pricing to convert browser interest into actual purchase velocity.

‘Third-party certifications hold substantial weight with shoppers because they provide instant verification and consumer confidence’ - Hatziyannis

 

R2R: How do retailers assess suggested retail pricing and margins when reviewing emerging brand submissions?

Ryan: Pricing tolerances and margin thresholds vary widely depending on the specific product category, whether you are dealing with frozen pizza, salty snacks, beverages, or frozen vegetables. Every category has distinct price cliffs where consumer demand drops off significantly if a product is priced too high. Right now, consumer wallets are constrained, driving strong sales in value-tier products. At the same time, consumers who are cutting back on restaurant dining are willing to purchase premium grocery items to elevate home meals. A brand must price its product realistically within its specific category dynamics, balancing premium positioning against what shoppers are genuinely willing to spend.

Hatziyannis: Setting a suggested retail price that sits far above the standard category baseline without a massive marketing budget or extraordinary claim to justify it creates an immediate barrier. Founders must understand where their price point sits within the retailer's broader shelf ecosystem. If an item is priced too high, it will struggle to achieve the velocity necessary to maintain its shelf placement, regardless of how impressive the product attributes are.

R2R: What role does digital readiness, social media presence, and viral content play in winning retail distribution?

Hatziyannis: Digital platforms and social media offer incredible tools for targeted regional marketing, allowing brands to reach specific consumer demographics right in the retailer's trade area. Going viral online can create massive momentum, but it also carries huge operational risks. Going viral is only beneficial if a brand possesses the manufacturing capacity and inventory pipeline to handle the sudden surge in order volume. If a viral spike creates demand that the brand cannot fulfill on store shelves, it results in lost sales, out-of-stock positions, and frustrated shoppers.

Ryan: While social media is a vital component of a modern brand launch, it cannot be the sole pillar of a marketing strategy. We have seen brands with millions of social media followers fail on store shelves because they lacked a balanced, multi-channel marketing plan. Today's shoppers navigate grocery aisles with smartphones in hand, so digital readiness means having location-based mobile advertising, digital coupons, and robust app integration that pings shoppers in-aisle or pushes your brand to the top of digital search lists. Social media must be part of a complete, balanced commercial strategy.

R2R: How do space constraints impact shelf retention, and what must brands do to keep their placement year after year?

Ryan: Physical shelf space in retail stores is severely limited, making velocity and turn rates the ultimate deciding factors for retention. For example, across thousands of stores, an average location might only have four total doors dedicated to frozen potatoes. Within those four doors, space is occupied by private label value options, major national legacy brands, and a handful of premium or organic innovators. If an emerging brand fails to generate adequate sales turns, the retailer is forced to replace it with a higher-performing product. Retaining shelf space requires open communication, continuous performance tracking, and a shared commitment to driving velocity.

Hatziyannis: At Sprouts, we closely analyze space-to-sales performance to ensure every square inch of shelf space is maximizing value for the store ecosystem. If a product is underperforming compared to category benchmarks, it will eventually be replaced to make room for new emerging brands. Furthermore, as emerging brands achieve mainstream popularity and expand into mass merchants, specialty retailers need those brands to continuously innovate. To maintain long-term buyer engagement, successful brands should introduce compelling line extensions or refreshed product concepts in their second and third years to keep consumer interest high.

R2R: What backend operational details and supply chain factors frequently surprise new retail suppliers?

Ryan: Many founders are unprepared for the sheer volume of backend administrative work and complex logistics required to service a major retailer. Simply getting vendor setup complete can involve forty pages of detailed documentation. Once operational, managing purchase orders requires strict adherence to delivery windows. When a retailer issues a purchase order with a four-week fulfillment window, that product must arrive cleanly at the distribution center back door on schedule. The journey from manufacturing facility to distributor, onto delivery trucks, into store backrooms, and onto retail shelves involves dozens of moving parts. Repeatedly failing to deliver on purchase orders damages buyer trust and quickly leads to discontinuation.

Hatziyannis: Supply chain disruptions, longer shipping timelines, and ingredient shortages affect manufacturers everywhere, whether producing domestically or importing materials. Because a brand cannot generate sales if it is absent from the shelf, suppliers must maintain robust contingency planning. Brands need to establish operational Plan B, Plan C, and Plan D scenarios for sourcing and logistics. Above all, proactive communication is critical. If an operational issue arises, contacting the buyer immediately to explain the situation and present a solution preserves the relationship and maintains confidence in the brand.

‘Brands need to establish operational Plan B, Plan C, and Plan D scenarios for sourcing and logistics’ - Hatziyannis

 

R2R: How do retailers work with brands when sales velocity falls short of expectations, and how quickly is a problem identified?

Ryan: Ensuring a product succeeds on the shelf is a shared responsibility between the brand and the retail buyer. Retailers do not want to see brands fail, as setting up new items requires significant time and investment from store teams. When velocity lags, buyers work closely with suppliers to analyze root causes and adjust tactics over a six to twelve-month window. Is the retail price point off? Are promotional cadence and rollback discounts structured correctly? Is the marketing mix balanced? By staying in close communication and evaluating early data, suppliers and buyers can tweak pricing, run targeted promotions, or adjust messaging to revitalize sales turns.

Hatziyannis: Retail buyers monitor store sales data constantly, reviewing new item performance as early as 30 days and 90 days post-launch. Early monitoring helps determine whether low sales are due to broader execution issues – such as store-level distribution delays or missed promotional placements – or true lack of consumer interest. If the product itself is struggling to gain traction, grass-roots tactics like in-store sampling and hands-on demos can dramatically lift velocity. Getting the physical product directly into consumers' hands often bridges the gap and transforms slow movers into thriving shelf staples.

‘Ensuring a product succeeds on the shelf is a shared responsibility between the brand and the retail buyer’ - Ryan

 

R2R: What evolving regulatory and policy changes should natural and organic brands monitor closely?

Hatziyannis: Emerging brands must pay close attention to state-level regulations, which are currently moving far faster and with greater organization than federal policies. Individual states are enacting strict laws around sustainable packaging mandates, plastic bag eliminations, and standardized best-by date labeling – with California often leading the charge. If a brand intends to distribute nationally, its product packaging and formulations must satisfy the most stringent state requirements across its target distribution footprint. Ensuring your packaging is fully compliant across all target states prevents costly re-designs or legal friction down the road.

Ryan: Regulatory requirements and packaging claim standards evolve continuously, making it essential for founders to stay hyper-vigilant. Every single health claim, certification seal, and ingredient listing printed on a package must be thoroughly verified and accurate. Staying ahead of regulatory shifts ensures that your product avoids costly compliance hurdles or forced packaging overhauls as standards change.

R2R: To wrap up, what are the single best strategies and the most frequent mistakes you see small brands make?

Ryan: The single most common mistake I see emerging brand founders make is "lighting the cigar" the moment their product lands on the store shelf. They treat getting onto the retail shelf as the final destination and celebrate victory. In reality, getting onto the shelf is merely the starting line. Winning space in the consumer's shopping basket week after week requires continuous, relentless effort, disciplined execution, and active commercial management.

Hatziyannis: The biggest misconception among online or direct-to-consumer founders is assuming that strong sales on Amazon or social media automatically mean a brand is ready for physical grocery retail. While digital success provides valuable proof of concept, physical retail requires an entirely different operational skillset, supply chain discipline, and trade margin structure. Brands must thoroughly prepare for the unique demands of brick-and-mortar execution before taking the leap onto physical retail shelves.