Winning in the away from home market: what manufacturers need to know

Our Foodservice Fundamentals report aims to bring clarity to the routes to market for away from home products, helping suppliers find (and work effectively with) the right partners. Below are the key learnings for manufacturers looking to enter or grow in this sector.

A fragmented route to market demands tailored strategies

The AFH market is highly fragmented, with diverse customer types, small-scale delivery drops and varied product needs. This limits standardisation and creates complexity in distribution and ranging.

For manufacturers, this means:

• There is no “one-size-fits-all” route to market

• Segmenting customers (by sector, scale, and needs) is critical

• Niche and specialist opportunities can be as valuable as large contracts

Wholesalers are the critical gateway to market

Most operators rely on wholesalers as their primary route to sourcing food and drink.
Even large operators often depend on wholesalers for fulfilment, if not procurement.

Key implications:

• Gaining wholesale listings is essential to scale

• Wholesalers act as the main conduit to operators

• Distribution, not just product, is a core part of the value chain

Influence is shared between wholesalers and operators

Operators ultimately decide what goes on menus, but wholesalers decide what is stocked and distributed.

A lack of alignment between the two can block success - for example, products may fail if:

• Operators want them but wholesalers won’t stock them

• Wholesalers list them but there is insufficient operator demand

Manufacturers must therefore build relationships with both sides simultaneously.

Push and pull strategies must work together

Winning in AFH requires a dual approach:

• Push: secure listings and distribution through wholesalers

• Pull: create demand from operators and end users

The report highlights that relying on one without the other limits success.

In practice:

• Engage key accounts (chains, caterers) to drive demand

• Support wholesalers with activation, marketing and sales materials

Customer needs vary significantly by segment

The AFH market spans hospitality, catering, leisure, and more - each with distinct purchasing dynamics and decision-makers.

For example:

• Catering contracts offer stable volume but lower margins

• Hospitality segments are more commercially driven but volatile

Manufacturers must:

• Tailor propositions by sector (e.g. education vs QSR vs pubs)

• Understand how decisions are made (central vs site-level buying)

Scale dictates buying behaviour and access

Operators vary widely in how they buy:

• Large chains / contract caterers: buy centrally, often directly from manufacturers, using logistics providers

• Multiples: mix of central and site-level purchasing

• Independents: buy from multiple wholesalers, often at list price (or with limited discounting)

Implications for manufacturers:

• Large accounts offer volume but require bespoke products and tight alignment

• Independents are more profitable but harder to reach and scale

Direct supply is limited to the largest customers

Only the biggest operators have the scale to bypass wholesalers and build direct supplier relationships.

Even then:

• Wholesalers often remain involved in logistics (“wheels-only” models)

• Relationships are formal, long-term and specification-driven

For most manufacturers, wholesale remains the primary route to market.

Differentiation often outweighs efficiency for operators

While operators look to simplify supply, many deliberately use multiple suppliers to drive menu differentiation - especially in premium or “centre-of-plate” categories.

This creates opportunities for manufacturers who can offer:

• Unique or premium products

• Specialist or locally sourced ranges

• Category expertise

Specialists play a critical role alongside broadline wholesalers

Large “broadline” wholesalers dominate, but they cannot meet all needs. Specialist suppliers (e.g. fresh meat, produce, fine foods) remain vital, particularly for quality-led operators.

For manufacturers:

• Specialist positioning can unlock access to premium segments

• Product expertise and service can be a key differentiator

The market is consolidating - but remains accessible

M&A activity is increasing as large wholesalers acquire smaller players, improving scale and capability. 

However:

• Independent wholesalers continue to thrive

• Barriers to entry remain relatively low

This creates a dual opportunity:

• Partner with large national players for scale

• Work with regional/specialist wholesalers for targeted growth

Collaboration is essential to unlock growth

The most consistent theme is the need for strong collaboration across the value chain—manufacturer, wholesaler, and operator.

Success depends on:

• Aligning product, supply and demand

• Co-developing propositions with customers

• Supporting wholesalers with clear activation plans

Final takeaway

The AFH market is not just about getting products listed - it is about navigating a complex ecosystem of wholesalers, operators and logistics partners. Manufacturers that win are those who combine distribution scale with targeted demand creation, adapt to diverse customer needs, and collaborate effectively across the supply chain.