Grocery Channel Requirements: What CPG Brands Need to Know Before Pitching a Buyer

What Grocery Buyers Are Actually Evaluating

Walking into a grocery buyer meeting unprepared is one of the most expensive mistakes a CPG brand can make. Category reviews happen on a set schedule. If your product is not positioned correctly when that window opens, you wait another cycle. In most grocery categories, that means six months to a year before you get another shot.

Buyers are not evaluating your passion for the product. They are evaluating whether your item belongs in their planogram, whether it will sell through at a rate that justifies the slot, and whether you have the operational capacity to keep the shelf full. Here is what that actually looks like in practice.

Item Authorization and the Planogram Process

Authorization is the formal approval process by which a retailer adds your product to their approved item list and assigns it a location in the shelf set. Without authorization, your product cannot be stocked, ordered, or reordered by that retailer's stores, regardless of how much demand exists.

Authorization decisions are made at the category level by a buyer or category manager. They review new item submissions against existing planogram space, current category performance, and strategic priorities for the review period. Most grocery chains run formal category reviews one to two times per year. Missing the submission window means waiting for the next cycle.

A broker who knows the retailer's calendar and has an existing relationship with the buyer is your best asset in this process. They know when submissions open, what format buyers prefer, and how to position your item against the current category gaps. Once a buyer says yes, the process does not stop there. Read New Item Forms and Retailer Setup to understand exactly what comes next and why most launch delays happen in that window.

Slotting Fees

Most conventional grocery chains charge slotting fees for new item authorizations. Slotting is a one-time payment that compensates the retailer for the operational cost of adding a new item: updating their systems, resetting the shelf, training store staff, and absorbing the risk of carrying an unproven product.

Slotting fees vary widely by retailer size, category, and number of SKUs being submitted. Regional chains may charge a few hundred dollars per SKU per store. Larger national chains can charge significantly more. Budget for slotting as a cost of entry and factor it into your launch economics before you pursue chain-level authorization. For a full breakdown of what slotting costs, when it is negotiable, and how to budget for it, see Slotting Fees Explained.

Some retailers negotiate slotting on a case-by-case basis. Strong velocity data from comparable accounts, a well-funded promotional plan, and broker credibility with the buyer can all influence the conversation. This is an area where an experienced broker earns their commission before your product ever hits the shelf.

Promotional Compliance Requirements

Grocery chains have specific requirements around promotional participation. Most chains expect new items to participate in their promotional calendar, which typically includes ad features, temporary price reductions, and display programs. These programs drive trial and velocity during the critical first months of distribution.

Failing to support promotions after authorization is a fast way to lose a placement. Buyers remember which brands committed to promotional support and did not deliver. That credibility gap follows you into the next category review.

Before you accept an authorization, make sure you understand the promotional obligations attached to it. What programs are you expected to participate in? What is the funding requirement for each? How far in advance do deal submissions need to be filed? Your broker should be walking you through these requirements and helping you plan your trade spend accordingly.

Margin and Pricing Requirements

Grocery buyers have margin expectations that vary by channel and category. Conventional grocery typically requires a retail margin in the range of 35 to 45 percent. Natural and specialty channels may run higher. If your pricing structure does not leave the retailer adequate margin after their promotional deductions, they are not going to carry your product regardless of how compelling the pitch is.

Work out the full margin math before your first buyer conversation. That means your cost of goods, your distributor margin, the retailer's margin requirement, and the promotional funding you are committing to. If the numbers do not work at every level of the chain, no amount of relationship will fix it.

Packaging and Shelf Readiness

Grocery buyers evaluate packaging not just for consumer appeal but for operational fit. Does your product scan correctly? Is the barcode readable and GS1-compliant? Does the shelf unit fit the standard shelf depth for your category? Is the case pack configured correctly for the retailer's receiving and stocking processes?

Operational packaging problems create friction at the store level and reflect poorly on your brand's retail readiness. Address these details before you submit for authorization, not after you have already made the pitch.

What to Bring to the Meeting

A grocery buyer meeting should include a clean sell sheet with your UPC, case configuration, cost, and suggested retail price; velocity data from existing accounts even if the sample is small; a promotional plan that covers at least the first two quarters of distribution; and a clear story about why your product fills a gap in their current category set.

Come with specifics. Buyers sit through dozens of brand presentations. The ones that stand out lead with data, have a clear answer to the margin question, and demonstrate that they understand how that retailer's category currently performs. Vague claims about consumer trends do not move buyers. Numbers do. For a complete guide on structuring a pitch that holds up in the room, read How to Build a Retail Buyer Pitch. And if you want to understand what the grocery channel looks like across the Gulf South specifically, see our Grocery Brokerage Services page.