Consumer Products · Food and beverage

What happens to unsold inventory, does the retailer destroy it?

Founder Co-founder Biz.Dev

April 30th, 2017

I have a snacks business and have positive response from few retail ourlets. What happens to unsold inventory, does the retailer destroy it? Is there a company (wholesale liquidator for example) that I can sell at deep discount?

Chris Gorges Managing Director, Infinia Group // Founder, Biddlist

May 1st, 2017

If it's a food company, why don't you donate the food to a good cause / charity and take the entire donation as a deduction? Do something good, and give your business some tax advantage.

Scott Sapire ENTJ

April 30th, 2017

Depends on the retailer / distributor and the product.

Some distributors give you the choice of picking up your product (paying them back + fees), or donating the product. Either way it's coming off invoice.

Retailers will typically discount it deeply themselves before donating or tossing it.

If you're sitting on your own inventory you can sell to places like HomeGoods and Marshalls.

Corey Blaser Sailor. Mormon. Entrepreneur.

April 30th, 2017

It depends. Some product, like bread and produce, can be sold, or even given, as feed to farmers. (Farmers get cheap feed and pigs love expired food.) Milk can be recycled. Once it is expired it is collected, re-pasteurized, mixed and sold again as chocolate milk. Other product is just disposed of in a dumpster.

But honestly, a retailer that is running their business well will have very little waste product. They only order what they need, especially in perishables. They have such a small margin (1.9%) that they cannot afford to have a lot of waste.

Rohit Sanghi

May 1st, 2017

If you say that you are in the snacks business then it is presumed that it is for human consumption, now it depends on what snacks you are preparing(Dry/ Wet/ or mix, whether recycling is permissible without any health hazard coz it is again going to come back into the food chain, and that's a huge risk you will be taking!

Tesleem Abiodun Mr

May 2nd, 2017

You can give it out to the needy.I'm sure,there are a lot of people out there who gat nothing to