CPGsurplus distributes product to Tier 2 Retailers as well as buyers in Secondary Channels across Canada. We work with buyers who can be trusted to handle your information and product with care and discernment.
Traditional liquidation makes up over half of CPGsurplus’ business.
Contact Us today to add CPGsurplus to your list of buyers.
NO OBLIGATION QUOTE
For a no obligation quote, send us your inventory today. If preferred, download and populate the CPGsurplus inventory template for uploading.
CPGsurplus is committed to confidentiality and will not share your information without prior consent.
Traditional Quote Form
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Most brands liquidate through Tier 2 or Secondary Channels. This is where CPGsurplus does its best work for you.
LIQUIDATION THROUGH SECONDARY CHANNELS
The Secondary Channel is replete with independents who have been in operation for 25+ years – wholesalers and retailers.
It is a fragmented space requiring most CPG brands to place their trust in wholesalers to channel their product to consumers through surplus retailers.
Purchase roughly 80% of all excess/short coded product from CPG brands
Two companies own 50% of this market; one in Quebec, one in Ontario
Balance of wholesale shared by 10-15 other companies, including CPGsurplus
Pros of selling to Wholesalers
- Volume: purchase large quantities (see cons for why they can buy volume)
- Less internal resources required to manage: fewer orders, shipments, invoices, etc
- Less financial risk: most pay well
Cons of selling to Wholesalers
- The bad ones, who have been around for a long time
- Sell into tier 1 channels, primarily franchisee run grocery stores in Ontario and Quebec.
- Route product into the US
- Pay lower prices, typically 20-40% less than retail buyers
Purchase roughly 20% of all excess/short coded product direct from CPG brands, the balance of product is purchased through wholesalers
40+ retailers in this space – all independent from Tier 1 banners
4 banners combined own 30% share, each with 60+ locations. The balance each have between 1 and 15 locations.
Pros of selling to Retailers
- Higher return then selling to wholesalers
- No risk of product being diverted to Tier 1 channels
- No risk of product being diverted to US or international markets
Cons of selling to Retailers
- Highly fragmented space
- Process high number of orders, shipments, deliveries, etc
- Greater financial risk
Leave us a note or any questions you may have, or better yet, give us a call at 1.800.901.8688.