I'm Avi, the founder of Lazrbeam. One of the most common questions I get from CPG founders is "do I need a broker?" The answer isn't always yes. And for a lot of early-stage brands, the answer is "not yet."
Brokers are deeply embedded in the CPG industry. They've been the default path into retail for decades. But the landscape has changed. Direct outreach tools exist now. Retailer accelerator programs have opened new doors. And many of the retailers that emerging brands target first, like Whole Foods and Sprouts, are actively seeking direct relationships with founders.
This post breaks down what brokers actually do, what they cost, when they're worth it, and when you're better off going direct.
What a food broker actually does
A food broker is a sales representative who pitches your product to retail buyers on your behalf. They work on commission, typically 3 to 7 percent of net sales, and maintain relationships with buyers at multiple retailers across a region or nationally.
The good ones bring real value. They know the buyers personally. They understand category review schedules. They know what each retailer looks for and how to position your brand. They can get a meeting that would take you months to set up on your own.
A broker's day-to-day work includes presenting your product to retail buyers during category reviews, managing ongoing communication with the retailer's buying team, submitting new item forms and coordinating logistics, negotiating promotional calendars and placement, and providing sales reports and market intelligence.
The best brokers act as an extension of your sales team. They show up to buyer meetings with your sell sheet, your samples, and a pitch that's tailored to each retailer.
What brokers cost
The standard commission structure is 3 to 7 percent of net sales. "Net sales" means after deductions, returns, and promotional costs. On $500,000 in annual retail revenue, a 5% commission is $25,000 per year.
Some brokers charge monthly retainers on top of or instead of commission, especially for smaller brands. Retainers typically range from $1,000 to $3,000 per month. That's $12,000 to $36,000 per year regardless of how much product you sell.
A few things to know about broker economics. Most brokers represent 20 to 50 brands simultaneously. Your product is one of many they're pitching. The more revenue your brand generates, the more attention you get. If you're doing $50,000 in annual retail revenue, your broker earns $2,500 per year from you. That doesn't buy much of their time.
This is the fundamental tension. The brands that need brokers most (small, early-stage, limited retail presence) are the ones brokers are least incentivized to prioritize.
When a broker is worth it
You're scaling into conventional grocery. Chains like Kroger, Albertsons, Safeway, and regional conventional grocers often work primarily through broker networks. Their buyers expect broker relationships and may not engage with direct outreach from unknown brands. If conventional grocery is your target, a broker with strong relationships at those chains is genuinely valuable.
You're expanding nationally and need coverage. If you're in 200 stores regionally and want to go national, you need someone calling on buyers in regions where you have no presence. A national broker network can cover accounts you physically can't.
You've outgrown your ability to manage retail relationships. If you're in 15 retail chains and each one has a different buyer, different promotional calendar, and different compliance requirements, managing those relationships is a full-time job. A broker takes that off your plate so you can focus on product and marketing.
You have the revenue to justify their attention. If you're doing $1M+ in retail revenue, a broker earning $50,000+ in annual commission from your brand will prioritize you. Below that threshold, you're unlikely to be their focus.
When to skip the broker (or wait)
You're targeting natural and specialty retailers first. Whole Foods, Sprouts, Natural Grocers, co-ops, and indie natural stores are generally open to direct outreach from founders. Many of them actively prefer it. These retailers have programs designed for emerging brands (Whole Foods LEAP, Sprouts' forager program, KeHE Elevate) that don't require broker involvement.
You're in fewer than 10 retail accounts. At this stage, you can manage the relationships yourself. You don't need a broker to call on 5 buyers. What you need is the buyer's contact information and a strong pitch. A tool like Lazrbeam gives you both.
Your revenue doesn't justify the commission. If you're doing $100,000 in retail revenue, a broker earning $5,000 per year from you is not going to prioritize your brand. You'd be better off investing that $5,000 in demos, direct outreach, and marketing that drives velocity at your existing accounts.
You haven't validated product-market fit in retail yet. If you don't know whether your product moves at retail, don't hire a broker. Get into 5 to 10 stores yourself, prove velocity, and then use that data to attract a broker who's excited about your growth trajectory.
How to evaluate a broker
If you decide to hire one, here's what to ask before you sign.
Which retailers do you actively call on? Get a specific list. "We cover the Northeast" isn't an answer. "We have direct relationships with the natural snacks buyer at Whole Foods Northeast, the grocery buyer at Wegmans, and the specialty buyer at ShopRite" is an answer.
How many brands do you represent? More than 30 and your brand is likely getting minimal attention. Ask how many are in your category specifically.
What brands have you launched in the last 12 months? Ask for references. Talk to those brands about their experience.
How do you report activity? A good broker provides regular updates on buyer meetings, submission status, and sales data. If they can't describe their reporting process, that's a red flag.
What do you need from me? Good brokers will tell you exactly what materials, samples, promotional budget, and marketing support they need to be effective. If they say "just send us your sell sheet and we'll take care of everything," be cautious.
What's the contract term and termination clause? Don't sign a multi-year exclusive contract with a broker you haven't worked with. Start with a 6-month trial with a 30-day termination clause.
The hybrid approach
The approach I recommend to most early-stage brands is a hybrid. Do your own outreach for the first 5 to 10 accounts, especially natural and specialty retailers. Use that experience to understand the sales process, build relationships with buyers, and learn what resonates in your pitch.
Once you have velocity data and a track record, bring on a broker for the accounts that are harder to crack through direct outreach, mainly conventional grocery chains and large regional retailers.
This way you're not paying commission on accounts you can land yourself. And when you do engage a broker, you have the revenue and data to attract a good one who will prioritize your brand.
How Lazrbeam helps
Lazrbeam exists for the part of the process where brands traditionally rely on brokers or trade shows: finding the right buyer and making first contact.
On the platform, you search for retail buyers by retailer, category, and region. You get verified contact information. You generate a pitch email tailored to that buyer's category and store. The entire outreach process that used to require a broker or a $5,000 trade show booth now takes minutes.
For brands that do hire a broker, Lazrbeam complements the relationship. You use the platform to identify opportunities and make initial contact, and your broker manages the ongoing relationship once you're authorized.
I built Lazrbeam because I watched too many early-stage brands sign broker contracts they couldn't afford, for retailers they could have reached themselves. The broker has a place in the CPG ecosystem. But it shouldn't be your first move.