Niche Distributor of Organic and Natural Foods Covering Central Canada
The business focuses on distributing and wholesaling natural, health food products to retail and foodservice customers (B2B) across the vastly untapped Central Canadian market. The business distributes specialty fresh, frozen, meat, dairy, and dry grocery items with a focus on high margin items like Organic, All-Natural, Gluten Free, Vegan, and Local foods. As one of the only major specialty distributors in Central Canada, this business enjoys high buying power over suppliers. This has allowed the business to offer a diverse range of high-quality specialty food products, higher than industry average gross margins, and a very positive reputation with business customers and end users in the region.
Consequently, the business has a wide network of over 100 retailers and food service providers across Central Canada, including B2B customers such as Sobeys and major Universities in Canada. Streamlined operations, careful product selection, and superior customer service have helped the business develop its reputation as Central Canada’s go-to specialty food distributor, boosting its top line from $80,000 to over $2 million in just a few years. Due to its niche focus and location advantage, the business has been able to consistently generate gross and net margins which are well above the industry average.
Over the next five years, the demand for specialty and natural foods will continue to grow, primarily driven by a shift in attitudes towards a healthier lifestyle and an increase in health issues among a widening demographic. Canada’s growing ethnic and minority population will further provide a growing market for specialty items. The industry revenue is expected to grow annually by 1.2% over the five years to 2023 and reach a value of $3.1 billion.
The owners are looking for an exit via strategic acquisition, which will enable the business to continue its growth trajectory and provide health solutions to the Canadian population. This is a great opportunity for a strategic buyer or an investor, who has a footprint in food distribution, specialty retail, or related industries. This opportunity is also highly appealing to owner-operators searching for a unique non-retail business opportunity with little direct competition in a growing market segment.