Expanding into the United States is a major milestone for any consumer packaged goods (CPG) brand, but it comes with significant challenges. The U.S. market is highly competitive, complex, and requires a deep understanding of regulations, distribution channels, and consumer behavior. For brands—especially those in the food and perishable goods sector—having a well-defined strategy is crucial to achieving long-term success.
In this guide, we’ll break down the key insights and steps to help CPG brands successfully enter and scale in the U.S. market. Whether you’re an emerging brand looking for your first retail placement or an established player aiming to expand, these insights will help you navigate the journey strategically.
Understanding the U.S. CPG landscape
Before diving into the specifics of entering the U.S. market, it’s critical to understand the business environment, the role of key stakeholders, and the expectations of buyers.
1. The complexity of the U.S. distribution system
Unlike smaller markets where distribution is more centralized, the U.S. operates through a multi-tiered system involving:
- Wholesalers: These major players act as gatekeepers, supplying products to supermarket chains, independent retailers, and food service providers.
- Retailers: Ranging from large national chains (e.g., Walmart, Kroger) to regional grocers and independent stores.
- Distributors and brokers: Essential intermediaries who help brands get listed, navigate buyer requirements, and manage retail relationships.
- E-commerce and direct-to-consumer (DTC) channels: Growing rapidly, allowing brands to bypass traditional retail and reach consumers directly.
2. Buyer expectations and competitive pressures
U.S. retailers operate under extreme margin pressures and expect new brands to prove their ability to drive sales. Buyers look for:
- A strong value proposition: Why should they replace an existing product with yours?
- Established demand and velocity: Will your product move off shelves quickly?
- Marketing support: Are you investing in promotions, demos, and advertising?
- Operational readiness: Can you meet supply chain requirements without disruptions?
3. The importance of local expertise
Navigating the U.S. market without local expertise is risky. This is why working with experienced brokers, distributors, and merchandising teams is not just an option—it’s a necessity. The U.S. is one of the most aggressive retail markets, and if a product does not perform, it is quickly replaced. Success requires constant monitoring, active promotions, and an optimized distribution strategy.
Step-by-step guide to entering the U.S. market
Step 1: Define a strong market entry strategy
A successful U.S. market entry strategy starts with:
- Identifying your target audience: Understanding U.S. consumer segments, cultural nuances, and purchasing habits.
- Assessing competitors: What similar products exist? What makes yours different?
- Selecting the right distribution channels: Wholesale, retail, e-commerce, or a hybrid approach.
For many brands, starting in regional markets like the tri-state area (New York, New Jersey, Connecticut) provides a testing ground before expanding nationally.
Step 2: Work with a broker to accelerate market penetration
As highlighted in Group MCC’s strategic plan, brokers play a crucial role in gaining access to key wholesalers and retail chains. Without a broker, brands often struggle to:
- Secure meetings with buyers.
- Understand pricing structures and retailer requirements.
- Achieve product codification with wholesalers, a step that allows wide-scale distribution.
A broker’s role extends beyond introductions—they provide insights into pricing, placement strategies, and execution. Their relationships open doors that would otherwise take years to develop independently.
Step 3: Prepare for compliance and regulatory hurdles
U.S. food and beverage products must comply with strict regulations from entities like:
- FDA (Food and Drug Administration): Oversees labeling, ingredient approvals, and safety standards.
- USDA (United States Department of Agriculture): Regulates meat, dairy, and organic certifications.
- State and local health departments: Set additional guidelines, especially for perishable products.
Brands must ensure their packaging, nutritional labels, and claims meet all federal and state-specific requirements before launching.
Step 4: Build an aggressive retail execution and merchandising plan
Even after securing shelf space, winning at retail requires constant attention. A common mistake brands make is assuming that getting listed means guaranteed sales. In reality, without proper support, retailers may delist slow-moving products within months.
To prevent this, brands must:
- Invest in sales and merchandising teams that visit stores regularly to ensure proper stocking, display compliance, and promotional execution.
- Monitor inventory levels to prevent out-of-stock situations that hurt sales velocity.
- Run in-store promotions and demos to drive trial and awareness.
Group MCC’s strategic plan emphasizes sales & merchandising as a key component of success, helping brands avoid the risk of being pulled from shelves due to underperformance.
Scaling beyond regional markets: Building a national presence
Once a brand has successfully established itself in regional markets like the East Coast, the next challenge is expanding nationwide without compromising profitability or operational stability. The key is to scale strategically and progressively, ensuring that the brand has the infrastructure, production capacity, and logistical support to sustain its growth.
1. Expanding distribution with a phased strategy
Unlike smaller markets, expanding too quickly in the U.S. can lead to overstocking, high logistical costs, and cash flow constraints. To mitigate these risks, brands should:
- First consolidate a key region, ensuring strong sell-through and sustained demand before expanding further.
- Partner with brokers specialized in different regions to tailor market entry strategies for the West Coast, Midwest, and Southern states.
- Diversify distribution channels, combining traditional retail with specialized distributors and e-commerce strategies.
Larger markets like California, Texas, and Florida are attractive but each has a unique distribution ecosystem. Expanding without the guidance of an experienced broker can result in stock shortages, excessive returns, or lack of in-store visibility—all of which can cripple growth.
2. Securing agreements with national distributors
To expand successfully, brands need to transition from regional wholesalers to national distributors that supply large retail chains. As they scale, they should:
- Negotiate direct agreements with retailers like Whole Foods, Kroger, Safeway, Costco, and Walmart, which have strict performance and velocity expectations.
- Optimize pricing and margins to remain competitive at a national level while ensuring profitability.
- Invest in retail execution teams to maintain presence and visibility across multiple store locations.
National distributors streamline logistics and supply chain management, making it easier to fulfill large-scale orders efficiently. However, they also require strong inventory management, compliance with vendor terms, and a well-structured marketing plan to support sales velocity.
The role of e-commerce and direct-to-consumer (DTC) strategies
While traditional retail remains dominant, e-commerce has reshaped consumer behavior and offers a crucial pathway for brand growth. Many CPG brands use DTC models to validate demand, build consumer loyalty, and create an alternative revenue stream before expanding into national retail.
1. Leveraging DTC to build brand awareness
Direct-to-consumer models allow brands to:
- Control the customer experience by selling directly through their website.
- Gather first-party consumer data to refine product positioning and future marketing strategies.
- Test new product variants before committing to large-scale production.
Platforms like Shopify, Amazon, and subscription-based models provide scalable solutions that enable brands to create direct relationships with consumers.
2. The synergy between retail and e-commerce
A common misconception is that DTC and retail operate separately. In reality, they complement each other, creating a multi-channel ecosystem where online efforts drive in-store demand. Key strategies include:
- Using digital ads and influencer marketing to generate awareness and encourage in-store purchases.
- Offering in-store pickup options through partnerships with major retailers.
- Utilizing social media insights to refine retail merchandising and promotional strategies.
Brands that integrate e-commerce, wholesale, and retail strategies cohesively position themselves for long-term success.
Measuring success and ensuring sustainable growth
Expanding into the U.S. market is not just about getting on shelves—it’s about staying there and growing consistently. To maintain momentum, brands need to track performance and adjust strategies accordingly.
1. Key performance indicators (KPIs) to monitor
Success in the U.S. market requires constant evaluation and optimization. Essential KPIs include:
- Sell-through rates: Are retailers reordering, or is inventory sitting on shelves?
- Retail compliance: Are products properly stocked, displayed, and priced?
- Customer acquisition cost (CAC) vs. lifetime value (LTV): Is the brand building a sustainable customer base?
- Velocity per store per week (VPSPW): A critical metric retailers use to evaluate whether a product deserves continued shelf space.
2. Adapting strategies based on data
Markets evolve, and so should your strategy. Brands that succeed in the long run:
- Pivot based on consumer feedback and sales trends to optimize their product mix.
- Reinvest in high-performing channels while phasing out underperforming strategies.
- Leverage technology for real-time analytics, ensuring data-driven decision-making.
3. The importance of brand consistency and retailer support
Long-term success depends on consistent brand messaging, strong retail partnerships, and ongoing marketing support. Brands that fail to invest in:
- Retail activation (promotions, demos, advertising) risk losing their shelf space.
- Trade relationships (engaging buyers, wholesalers, and brokers) may struggle to secure prime positioning.
- Sustained consumer engagement (DTC, loyalty programs) lose momentum over time.
In high-competition markets like the tri-state area, a hands-on approach is critical to ensuring continuous growth.
Conclusion: the roadmap to success in the U.S. CPG market
Entering the U.S. market is a high-stakes, high-reward endeavor that requires strategic planning, local expertise, and ongoing execution. The key takeaways for success include:
- Leveraging brokers and wholesalers to streamline entry into major retailers.
- Combining retail with e-commerce strategies to maximize brand presence and sales.
- Continuously tracking performance and adapting based on market feedback.
- Investing in execution and retail support to secure long-term positioning.
For brands looking to establish themselves and thrive in the U.S. CPG space, a structured, data-driven, and well-supported approach is non-negotiable.
At Group MCC, we specialize in helping brands navigate this complex journey, ensuring they have the right connections, strategies, and execution plans in place. Contact us today to discuss how we can help your brand break into and scale successfully in the U.S. market.