Rgand, the revolutionary online B2B marketplace transforming the food service supply chain, has officially announced the launch of a Direct Trade Foundation, which happens to be new initiative aimed at helping global food producers break into the U.S. market. According to certain reports, the stated foundation will deliver financial and operational aid worth $100 million to facilitate the given objective, and it will do so over the course of next three years. In essence, these funds will be leveraged to enhance innovation, support brand growth, and achieve market success for small and medium-sized suppliers. More on the same would reveal how DTF brings forth comprehensive support package to selected producers, providing them with access to logistics support, sampling programs, mentorship and training, as well as innovation and market impact.
Talk about each of these components on a slightly deeper level, we begin from logistics support where DTF will basically cover essential operational costs, including market entry logistics, product certification, and marketing. Next up, we have sampling programs. This one will see the introduction of an initiative called the Sample Box Marathon, which would be an automated platform that allows chefs at leading U.S. restaurants to try out new products. The idea behind doing so is to promote brand visibility and product recognition, thus fostering long-term relationships with restaurants and hotels.
“As the food service supply chain grows more complex, smaller producers often struggle to gain visibility and compete on price. With the Direct Trade Foundation, we want to level the playing field and offer these businesses a chance to access one of the world’s largest food service markets,” said Rovshan Rasulov, CEO and founder of Rgand.
Then, there is a prospect rooted in mentorship and training. Here, all selected producers are likely to receive training and expert guidance on how to promote their products, expand their brand presence, and adapt their offerings to the U.S. market. Complimenting that would be DTF’s promise of providing innovation and market impact to help innovative F&B companies, along with equipment suppliers, gain a competitive edge.
Among other things, we ought to mention that DTF will select 50 producers annually to participate, focusing on businesses with strong potential for market impact and innovation.
To further understand the significance of such a development, we must acknowledge US restaurant industry’s fight against ongoing challenges with profitability, despite projected sales exceeding $1.1 trillion in 2024. As for why is that the case, National Restaurant Association’s word claims that rising food and labor costs have significantly impacted profit margins.
In response, Rgand preaches a rather lean operation by removing intermediaries from the supply chain, and therefore, connecting producers directly with restaurant buyers.
“The Direct Trade Foundation will help these producers not only enter the market but grow sustainably,” said Rasulov. “We’re creating opportunities for them to sell directly to restaurant and hotel buyers, ensuring better prices for both sides.”
Founded in 2018, Rgand’s rise up the ranks stems from being the first online wholesale marketplace for producers and restaurants to trade directly. This includes its effort to help food and restaurant supplies manufacturers get direct access to thousands of buyers, thus bypassing costly trade shows, distributors, and stores. Not just that, the platform also makes it possible for restaurants and other commercial food establishments to enjoy perks like special offers, free samples, and free shipping.
“We believe DTF will have a substantial and lasting impact on the U.S. restaurant industry and beyond,” said Rasulov. “This is just the beginning of a transformative journey.”
