Ready for a Distribution Partner?

A Readiness Guide for Early-Stage CPG Brands In Canada

If you’ve built a thoughtful product, proven demand with early sales wins, and you’re eyeing  retail for your next stage of growth, the “distribution” question arrives fast: When do we bring on a distributor? What will they look for? And how do we prepare so we don’t burn bridges—or cash?

This guide is a candid checklist to help early-stage brands self-assess their readiness for boutique distribution. We’ll outline what matters most to Canadian retail buyers, where brands stumble, and how to confidently step into a distribution relationship that supports long-term, profitable growth.

Why Distribution—And Why Now?

For many early brands, distribution can feel like the “big league”: access to new retailers, streamlined logistics, and a dedicated team representing your brand day to day. A great distributor helps you:

- Expand retail coverage efficiently, beyond founder-led outreach.
- Centralize ordering for retailers with B2B platforms and modern warehouse operations.
- Align your go-to-market with Canadian norms: bilingual packaging, GS1 compliance, shelf expectations, and buyer cadence.
- Launch promotional cycles and field marketing thoughtfully—without overwhelming your team.

But timing is everything. Entering too early (with unclear margins, unfinished packaging, or no local traction) can stall momentum. Entering at the right time means you can leverage the distributor’s scale, relationships, and systems—without compromising quality or cash flow.

Your Readiness Checklist: What Distributors Look For

1) Demonstrated Local Traction (Prove Pull, Then Add Push)

Why it matters:
Retailers and distributors are both risk managers. A signal that consumers want your product—especially in the target region—lowers adoption friction, shortens the sales cycle, and justifies initial PO volumes.

What “good” looks like:
- 10–20+ active retail doors in your home market, or several meaningful Canadian pilots (specialty retailers, concept shops, or regional chains).
- Sell-through data showing velocity, not just sell-in. Even 30–90 days of POS or reorder history helps.
- Testimonials from buyers or store managers confirming fit and repeat purchase.
- Willingness to share insights: what promos moved the needle; seasonality; best-selling SKUs; pricing sensitivities.

Common pitfalls:
- Counting one-time wholesale orders as traction without confirming reorders.
- Over-expanding door count without supporting retail activation, resulting in stagnant shelves and delistings.
- Relying solely on DTC success to predict retail performance; retail requires different price psychology, pack formats, and merchandising.

2) GS1 Certified Barcodes, non-negotiable for Canadian and global retail

Why it matters:
GS1 barcodes are the foundation for accurate inventory, receiving, and point-of-sale operations. Non-GS1 or reused barcodes cause compliance fines, receiving delays, and manual rework for retailers—and many will simply decline a line without a GS1 prefix.

What “good” looks like:
- GS1 membership and assignment of GTINs for every sellable unit, inner pack, and case.
- Barcodes tested for print quality and scannability on final substrates.
- A master data sheet containing GTINs, case packs, weights, dimensions, and pallet configuration.

Common pitfalls:
- Using third-party or recycled barcodes that aren’t GS1-issued to your company prefix.
- Mismatched unit/case GTINs or inconsistent case pack counts.
- Printing barcodes too small, too close to the packaging seam, or with insufficient contrast for scanning.

3) Retail-Ready, bilingual packaging to meet Canadian language requirements

Why it matters:
Bonjour! Canada is a bilingual market, with French copy required on pack. Beyond language, buyers evaluate shelf presence, claims clarity, and category fit. Non-compliant packaging blocks PO approvals and excludes regional and national accounts from the growth plan.

What “good” looks like:
- English and French on-pack for all required elements ( e.g., ingredients, directions, net quantity, cautionary statements).
- GS1-aligned barcode placement; high-contrast, scannable.
- Clear primary display panel: brand, product name, key benefit, size/quantity.
- For health/beauty: clean INCI/ingredient declarations; batch/lot codes; expiry where applicable.

Common pitfalls:
- “Sticker now, print later” bilingual fixes that peel, bubble, or look unprofessional.
- Tiny type that fails legibility tests; low-contrast designs that disappear on shelf.
- Claims that don’t align with Canadian regulations (e.g., unapproved health claims).
- Missing GS1 barcodes on inners or shippers, causing receiving headaches.

4) Margin structures  to support wholesale and distribution

Why it matters:
Retail thrives on predictable margins. Keystone pricing—where wholesale is roughly 50% of MSRP—is a common North American norm. Distributors then need their own margin to service the brand, hold inventory, and extend payment terms to retailers. If your margin stack doesn’t support these realities, the math won’t work, no matter how great the product.

The basic stack:
- MSRP (retail price on shelf)
- Wholesale (what retailers pay): typically about 40-60% of MSRP
- Distributor Cost (what the distributor pays the brand): should allow the distributor a minimum of 30% margin on the wholesale price to retailers.

A simplified example:
- MSRP: $20.00
- Wholesale (keystone): $10.00
- Distributor margin target: ≥30% of wholesale
- Distributor pays brand: $7.00 (distributor keeps $3.00; 30% of $10.00)
- Brand’s distributor cost must still preserve healthy brand margin after COGs, freight-in, and trade spend.

What “good” looks like:
- Landed COGs low enough to support wholesale and distributor margin
- Clear MSRP and wholesale lists by SKU; cohesive pricing architecture across formats and bundles.
- Thoughtful trade spend plan (promos, OI, samples, demos) that doesn’t zero out profits.

Common pitfalls:
- MSRP set too low to chase DTC conversion; leaves no room for wholesale and distribution.
- Wholesale discounts too deep early on, training buyers to expect net prices that aren’t sustainable.
- Ignoring freight, duties, and hidden fees when calculating landed costs.
- Promos layered on top of already thin margins, turning growth into a cash drain.

5) Operational Maturity: Inventory, B2B Readiness, and PO Discipline

Why it matters:
Even the best sales team can’t overcome poor fill rates. Canadian retailers value reliability: correct case packs, advanced OOS communication, and on-time deliveries. Distributors use streamlined warehouse and B2B platforms to make ordering painless—but your inventory plan must support it.

What “good” looks like:
- Consistent safety stock targets by SKU; realistic MOQs; lead time transparency.
- Retail-ready case packs (uniform quantities; protective packaging; scannable case GTINs).
- Batch/lot traceability; 9+ months shelf life on receipt where applicable 12+ if possible
- Fast response to PO exceptions: short ships, delays, substitutions are communicated within 24 hours.

Common pitfalls:
- Overly broad SKU lists (e.g., >150 SKUs) for an early stage team; creates forecasting chaos.
- Missing allocation priority for inventory on hand quantities
- Failing to reserve inventory for planned promotions, resulting in stockouts mid-campaign.

6) Brand-Distributor Fit: Values, Focus, and Category Strategy

Why it matters:
Boutique distribution is about curation, not crowding. A great fit means your brand complements the portfolio, aligns with shared values, and has the right category logic for Canadian retail.

What “good” looks like:
- Purpose-driven positioning: sustainability, inclusivity, or category innovation that resonates with conscious Canadian shoppers.
- Clear hero SKUs to guide buyers to obvious winners first.
- Packaging and brand identity that hold their own on a modern shelf set.

Common pitfalls:
- Misalignment on velocity expectations (e.g., niche positioning with premium pricing but aiming for high-volume chains prematurely).
- Rapid packaging or formula changes during the first 12 months, disrupting listings and resets.
- Overly complex content requirements (dozens of variants, custom shippers, seasonal one-offs) for a first-year market entry.

Transparency and Partnership: Good Wares Sales & Distribution

Feel ready for the next step? At Good Wares, we specialize in sales and distribution for purpose-driven beauty, wellness, lifestyle, and select food and beverage brands. As a women-owned, founder-focused distributor, we partner with teams who are doing good—whether that’s sustainability, inclusivity, or reimagining categories—and help them scale across Canada with modern operations and a transparent, collaborative approach.

At Good Wares, we believe in clarity from day one. Here’s what you can expect in a discovery-to-onboarding process with us:

Candid scope conversation
We’ll review sales history, margins, and operational readiness. If timing isn’t right, we’ll offer clear next steps and a timeline to revisit.

Streamlined onboarding
We use a tailored B2B ordering platform, modern warehouse systems, and a structured onboarding survey to capture GTINs, case packs, images, certifications, and MSDS (as needed).

Strategic retail access
We maintain relationships with key Canadian retailers—from specialty to national chains—prioritizing fit and sustainable growth.

Marketing support
From product photography guidance to curated buyer experiences, we help amplify your presence with decision makers.

Transparent accounting
We use clear fee structures and off-invoice accounting for promotional plans. You’ll see exactly how programs are funded.

Curious if you’re a good fit for Good Wares? Try the 10-Point readiness Score below.

Self-Assessment: Give yourself 0–2 points per line below (0 = not ready, 1 = partial, 2- Fully Ready). Score 8-10, you’re prepped for distribution! If you score 5-7, reach out and we can provide feedback on how to increase your readiness over the next six months.

1. GS1 GTINs assigned per unit/inner/case. Barcodes sized and placed to GS1 spec.
2. English and French on pack as required by category; Health Canada approvals where applicable.
3. Batch/lot codes and expiry dating aligned with retailer standards (often ≥9 months on receipt for perishable/active categories).
4. Local / regional sales traction with 10+ wholesale doors, with a minimum of 60-90 days reorder data.
5. Pricing architecture aligned to category wholesale costing, and distributor margin of at least 30% of the wholesale price.