Service 02 · Brokerage & negotiation
Food brokerage and commercial negotiation.
We act as food broker and negotiator between the people who make food and the people who buy it, building the price structure, agreeing trade terms and putting agreements in place that still work after the first order.
What is a food broker?
A food broker represents a producer or brand to buyers (distributors, retailers, foodservice operators and food manufacturers) and negotiates the deal. Brokers usually do not buy and resell the goods. They are paid for the business they bring and the terms they secure.
Union Trade works as broker and negotiator in food and ingredient trade across the US, UK and EU. The Functional Brands Group team behind Union Trade has sold to retailers and bought for distributors, so we prepare each negotiation knowing what the other side needs before it says yes. For each deal we state in writing who we act for and how we are paid.
Who needs a food broker or negotiator?
- Producers and brands that need representation with distributors, retailers or manufacturers.
- Brands negotiating a first distribution agreement, an exclusivity request or a price increase.
- Importers, distributors and manufacturers that want a negotiator for supply contracts at origin.
- Companies entering a new market that need a local price structure before they quote.
What brokerage and negotiation cover
- Price structure. We build the price waterfall for each channel, from ex-works or FOB through landed cost, distributor and retailer margins to the shelf, and test it against competitor shelf prices.
- Trade terms. Payment terms, Incoterms, minimum order quantities, lead times, promotional funding, rebates, listing support and the handling of returns and short-dated stock.
- Exclusivity and territory. What to grant, to whom, for how long and against which performance conditions, and what to keep back.
- Supply negotiation for buyers. Price basis, specification tolerances, contract volumes, shipment schedules and the quality-claims procedure, negotiated with producers at origin.
- Agreements. Heads of terms and the commercial content of distribution, agency and supply agreements, prepared for your lawyers to draft or review.
- The negotiation itself. We prepare the case, take part in the meetings and calls, keep the follow-up moving and close.
The Functional Brands Group team has built importer-to-shelf price models, prepared commercial offers for UK grocery retailers, and negotiated territory, rebate and promotional terms with North American distributors. See selected work.
What you get from brokerage and negotiation
- Price waterfall model for each market and channel
- Negotiation brief for each counterparty: objectives, positions, concessions and walk-away points
- Trade terms matrix covering payment, Incoterms, minimum order quantities, lead times, promotions and rebates
- Heads of terms ready for your lawyers
- Meeting notes, a follow-up log and a record of agreed points
- Handover pack for the team that will manage the account
How does a brokerage engagement run?
- Brief. You tell us the deal you want, the counterparty and your limits.
- Model. We build or check the price structure and the trade terms.
- Strategy. We agree the negotiation plan with you, including what you will and will not concede.
- Negotiate. We run the conversations and report back after each round.
- Close. Terms are confirmed in writing and handed to your lawyers and operations team.
FAQ
What does a food broker do?
A food broker represents a producer or brand to buyers and negotiates on its behalf. The work covers finding the right distributors, retailers or manufacturers, presenting the product, agreeing price and trade terms, and following up until orders arrive. Brokers usually do not take ownership of the goods. At Union Trade, brokerage can be combined with market entry or retail listing work.
How are food brokers paid?
Brokers are commonly paid a commission on the sales they generate. Some work suits a project fee or a monthly retainer instead, for example when a price structure and distributor agreements must be built before any sales happen. Union Trade agrees the model and the terms in writing before work starts. We do not publish fees, because scope depends on product, market and channel.
Do you represent the seller or the buyer?
Either, but one side per deal. Producers and brands appoint us to represent them to buyers. Importers, distributors and manufacturers appoint us to source and negotiate supply. We tell every counterparty which side we act for, so negotiations stay clear and both parties know where they stand from the first conversation to the signed agreement.
Can you negotiate an exclusive distribution agreement?
Yes. We negotiate the commercial terms of exclusivity: the territory, the channels covered, the term, minimum performance and what happens if targets are missed. Exclusivity can help a distributor invest in a brand, but it can also block growth if it is drawn too broadly. We set out the trade-offs, and your lawyers draft the final agreement.
Do you draft contracts?
We prepare heads of terms and the commercial content of distribution, agency and supply agreements. The legal drafting and review are done by your lawyers, and we do not give legal advice. Keeping the roles separate means the final agreement reflects what was negotiated and is checked by someone qualified to sign it off.