Six steps to getting stocked in a major supermarket

Umami Pappi founder, Ethan Yong, says that from making chilli oil in his kitchen to being stocked in more than 700 stores has been a whirlwind of hard work, determination, and many learnings. He shares with Food & Drink Business his six top tips for SMEs trying to break into the supermarket channel.

When I started making chilli oil, I never aimed to become a successful business owner; I just hoped to earn enough money to buy a new guitar.

During the lockdowns, I began making chilli oil in my kitchen, refining the recipe with feedback from friends and family. A lot has changed since then – including buying that new guitar.

Today, our product is stocked in more than 800 stores, including Coles, IGA, and independent retailers. Our growth accelerated after my appearance on Food Stars, where I competed for Gordon Ramsay’s investment. I was fortunate to be invited to the show by an Endemol Shine producer who was a fan and had been following Umami Papi’s journey. Receiving Gordon Ramsay’s approval for my product is something I’ll never forget.

In the early days, I walked around Melbourne with a backpack full of jars, approaching delis and stores to stock my product. This effort got us into nearly 100 stockists.

I even travelled to Sydney, sending 48 jars to my auntie’s house so I could knock on doors there as well.

I didn’t know about distributors back then.

Eventually, I hired a brand manager and distributor, which led to us being stocked in Coles Local from June 2022. In September, after a month of selling well, Coles launched us into 150 stores. Today we’re in about 500 Coles stores.

I realised from the outset that food and beverage industry is very visual, so to stay competitive and get recognised, as I did for Food Stars, a strong social media presence is essential.

I also joined Entrepreneurs’ Organisation (EO), which was a gamechanger for me. I was struggling to find like-minded people to discuss the challenges I was facing in my business. EO provided a platform to learn from others, build my network, and have a great time with people who understand the journey I am on. Through EO, I’ve learned that the most relevant lessons can come from outside your industry and that building strong business connections is crucial for fast-tracking growth. 

Now I regularly connect with other food and beverage entrepreneurs, and we support each other and share what we’ve learned.

For other food and beverage founders looking to get stocked in supermarkets, my advice is:

1. Have a great product
   If your product isn’t selling well before getting into the majors, you should go back to the drawing board and make sure that what you are selling is delicious and is well sought after.
2. Build relationships
   Having your foot in the door with people who are experienced in this industry can aid in the preparation of launching into the major supermarkets. 
3. Ensure your margins are healthy
   Once you are in the major supermarkets, there will be additional costs that you will be subject to as a supplier. These include fuel surcharges, transport costs and storage costs of inventory. If your margins are strong and healthy, you should still remain profitable even after deducting these additional new expenses.
4. Be prepared to meet order demand 
   Having to keep up with high demand can be seen as a good problem to have, however it can be dangerous if you are unable to meet delivery deadlines.
5. Present a compelling pitch 
   Not only should the buyers be impressed with the quality of the product but how are the sales performing currently in other retailers? Make sure you have numerical data to support your case.
6. Join an Entrepreneurial Support Group
   Joining an entrepreneurial support group, like the Entrepreneurs' Organisation (EO), connects you with like-minded individuals who understand your challenges. EO offers valuable knowledge, resources, and networking opportunities. This support helps you stay motivated, gain new perspectives, and access advice that can significantly impact your business's growth and success.  

My journey from making chilli oil in my kitchen to becoming a successful business owner stocked in over 700 stores has been a whirlwind of hard work, determination, and many learnings. As I continue to grow Umami Papi, I'm excited about the future and the opportunities that lie ahead. If you're passionate about your product and dedicated to your vision, the journey, though challenging, is incredibly rewarding.