The global food and beverage wholesale market is expected to grow by $7400.31 billion in 2025. (Source :Business Research Company)

Imagine you are a F&B wholesaler managing large food orders of perishable items. You stock up, but then demand shifts leaving you with excess inventory and shrinking profits. Meanwhile, a competitor using wholesale software delivers faster, manages stock easily, and attracts more customers.

Running a food and beverage wholesale business isn’t just about moving products from warehouses to retailers. It’s about staying profitable despite rising costs, inventory challenges, and increasing customer expectations.

So, what’s the key to success? Technology and smart business strategies. If you want to grow your food and beverage wholesale distribution business, you must adapt, automate, and add value. Here’s how you can do it.

What is food and beverage distribution?

Food and beverage distribution refers to the process of transporting food and drink products from manufacturers to customers. It includes several key players:

• Wholesalers – Buy in bulk and sell to retailers.
• Distributors – Act as middlemen for storage and transportation.
• Retailers – Sell products directly to consumers.
• Third-Party Logistics Providers (3PLs) – Manage warehousing and last-mile delivery.

Smooth F&B distribution requires accurate inventory tracking, reliable logistics, and fast order fulfillment. However, many wholesale food and beverage suppliers still rely on manual processes, leading to costly errors.

Key Challenges in Food and Beverage Wholesale Business

1. Inefficient Inventory Management 

Managing inventory in the food and beverage (F&B) industry is particularly challenging due to the perishable nature of products. Wholesale distribution businesses must strike a balance between maintaining freshness and minimizing waste, especially for temperature-sensitive items like dairy, meats, and produce.

• Overstocking leads to waste and cash flow problems.
• Understocking results in missed sales and unhappy customers.
• Manual tracking creates errors and delivery delays.

2. Slow Adoption of Technology

48% of wholesale Food and Beverage Suppliers still rely on manual spreadsheets, making them less competitive (Source: PR Newswire)

Despite the rise of technology in managing food and beverage wholesale businesses. Many wholesalers still hesitate to adopt a wholesale software for F&B distribution management due to:

• Lack of technical knowledge among staff.
• Concerns about high costs.
• Fear of workflow disruptions

3. Intense Market Competition

With Direct-to-Consumer (D2C) models disrupting the industry. To stay ahead, wholesalers need more than just low prices. Faster deliveries, better service, and extra benefits make the difference.

Automate Your F&B Wholesale Distribution Business – Book a Free Demo with RouteMagic Now!

3 Ways to Grow Your Food & Beverage Wholesale Business in 2025

There are 3 main distribution strategies to grow your food and beverage wholesale business which can streamline operations, reduce errors, and improve customer satisfaction.

1. Automate Inventory Management to Reduce Error & Waste

Over 75% of companies by 2027, will automate their warehouse operations. (Source:Gartner)

Managing inventory manually takes time and leads to errors. An AI-powered inventory management system can:

• Track stock in real time, reducing overstock and shortages
• Automate order processing for faster fulfillment
• Analyze buying trends to predict demand accurately

See how Routemagic can help you with your wholesale business.

2. Use Technology to Streamline Operations

Businesses using AI driven supply chain management experienced 15% cost reduction. (Source: McKinsey)

A powerful wholesale software can help F&B wholesale businesses optimize:

• Route Planning to reduce delivery delays and fuel costs
• Order processing to automate back-office and field tasks
• Use data to personalize customer interactions

3. Offer Value-Added Services to stand out

Increasing customer retention rates by 5% increases profits by 25% to 95%. (Source: Harvard Business Review)

Customers expect more than just bulk orders. Successful wholesale food and beverage suppliers offer:

• Same day or next day delivery for urgent orders.
• Bulk purchase discounts and seasonal promotions.
• Loyalty programs to reward repeat customers

Conclusion

The food and beverage wholesale business is changing, and those who leverage automation, technology, and value-added services will stay ahead. Wholesale software for Food and beverage distribution management is no longer optional—it’s a necessity for efficiency, profitability, and long-term success.

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FAQ

1. How do food distributors make money?

Food distributors earn by purchasing products in bulk at discounted rates and selling them at a higher price, adding a profit margin. Additionally, they offer value-added services such as delivery, same-day shipping, or bulk discounts, which help retain customers and generate extra revenue.

2. Is the wholesale food business profitable?

Yes! Wholesale distribution businesses that adopt wholesale software without being hesitant to adopt new technology and automate their workflows increase efficiency and boost profit margins.

3. What is the role of MIS in Food and Beverage Operations? 

A Management Information System (MIS) helps wholesale food and beverage suppliers streamline their day-to-day operations. It assists with tasks like managing orders, planning delivery routes, tracking inventory, generating invoices, handling payments, and creating detailed reports. By automating these processes, MIS eliminates redundant manual work, allowing businesses to focus on growth and other core activities.

4. What is the Wholesale Distribution Business? 

A wholesale distribution business operates on a B2B (business-to-business) model. Wholesalers act as the bridge between manufacturers and retailers, purchasing goods in bulk and selling them in smaller quantities. They play a critical role in ensuring that products are available to retailers and, eventually, consumers.