When expanding into new Asia Pacific (APAC) export markets, food and beverage brands face a critical strategic decision: What is the best way to enter and grow in the market? Food and beverage export development agency, Incite, has released its 2025 guide to appointing Asia Pacific distributors, to support producers.
Common models include appointing a local importer and distributor, selling directly to retailers or working with consolidators in the brand’s domestic market. While each model has its merits, appointing a dedicated distributor remains a favoured approach for many businesses, particularly in complex or unfamiliar markets.
The advantage of using on-the-ground distributors is that it simplifies operations significantly by working with one partner in each market. Rather than managing multiple retail relationships individually, the brand partners with one importer and distributor who handles warehousing, logistics, sales, merchandising, marketing and promotion across all relevant channels. This allows businesses to leverage the distributor’s local market distribution, knowledge, networks and infrastructure.
Even large corporations continue to use in-market distributors rather than pursuing direct-to-retail models for exports. While direct models may work efficiently in markets including New Zealand, Australia and the UK, they often fall short in export contexts due to the on-the-ground work required to support sales across Asia Pacific markets. Getting the product on the shelf is not enough, significant effort is required to drive sales.
Good distributors act as a brand's in-market team. If well supported, they are more than just vendors – they become invested partners. However, the relationship requires commitment and collaboration, rather than a transactional, hands-off approach often dubbed "Viking exporting."
Why choose the distributor model?
One trade-off with the distributor model is the additional margin required. Businesses must factor in a distributor's margin when setting export pricing to ensure the model is financially viable for all parties. This doesn't mean lowering export pricing, but rather building in profitability for the distributor through smart supply chain planning and pricing strategies.
The Philippines, Indonesia and Thailand are markets known for their regulatory complexities. In addition to their distribution, marketing and merchandising capability, capable distributors in these markets will also have strong compliance teams to navigate the inherent regulatory hurdles. In such environments, having a capable local partner is not just helpful – it’s essential.
Distributors and market complexity
When it comes to appointing distributors (especially in regulated or complex markets), laying the groundwork is essential. In the context of more challenging markets, including the Philippines, Indonesia and Thailand, most seasoned distributors come equipped with in-house expertise in areas including regulatory compliance and especially managing local FDA processes.
While they are not regulatory agencies themselves, these distributors often have specialists who manage compliance and registration requirements to help smooth the path to market entry.
Laying the groundwork for distributor success
One of the biggest hurdles brands face in engaging potential distributors is simply getting their attention. Distributors are inundated with new brand pitches and need to quickly assess whether an opportunity is worth pursuing. The key to cutting through the noise is preparation. Brands must present a compelling, well-researched and commercially attractive business case that makes it easy for the distributor to say yes.
This involves showcasing business credentials, including sales history, market rankings, major customers and sales volumes in the brand’s domestic market and current export markets. It also includes providing pricing analysis, often in the form of a “cost model” or “price tree,” which helps outline the full value chain, including landed cost, wholesale price and potential retail pricing.
Having clarity on your pricing strategy from the outset ensures alignment with the right distributors, whether you're aiming for a premium niche or mass market appeal.
Distributors also appreciate insight into operational logistics, e.g. shelf life, storage conditions, pallet and container configurations. This helps them quickly understand operational requirements. Marketing support is another crucial factor.
While a full marketing plan isn’t necessary at the early stage, having a clear view of your ambition and the level of support you intend to provide sets the pace of the potential partnership.
Making the business case to distributors
Investing time in market analysis is another way to stand out. Demonstrating a clear understanding of how your brand fits into the competitive landscape, including target pricing and customer segments, saves distributors time and shows professionalism. In some cases, this groundwork can accelerate the distributor review process by months.
Just as brands need to appeal to distributors, they also need to be selective about who they partner with. Distributors vary widely in capability from traditional margin traders through to full–service partners that offer marketing, merchandising and compliance support. The right choice depends on the brand’s goals and the market’s complexity.
Tailoring the approach to market and brand
Evaluating a distributor involves more than just ticking boxes. Chemistry matters. An early introductory meeting helps both sides assess compatibility, expectations and potential synergies. Practical factors also come into play. A distributor's current portfolio of brands should ideally complement the brand’s positioning.
For example, chilled products require cold chain logistics expertise and may benefit from co-loading opportunities with similar items in the early stages until volume gets to critical mass. For brands with mass-market distribution strategies, a large distribution footprint and strong retail relationships are vital. Conversely, niche products may require a more agile partner who is actively seeking innovation and novelty.
Ultimately, distributor selection is part strategic planning and part matchmaking. The goal is to align brand ambition with local execution capabilities, setting the foundation for a long-term and mutually beneficial partnership.
What to look for in a distribution partner
While on paper a distributor may tick all the boxes (category expertise, infrastructure, and portfolio synergy) real success often hinges on less tangible factors like professionalism, communication and relationship quality. Experience shows that what makes a distributor effective is often the individual managing the account. Distributors with overstretched teams or high staff turnover can struggle to prioritise new brands, no matter how promising the opportunity.
The personal relationship is critical, especially in the early stages. Some of the most successful brand–distributor partnerships endure not because of lengthy distribution contracts, but because of the commitment and proactivity of a single point of contact. In fact, when a key account manager switches companies, brands often follow them, reinforcing just how people-driven these relationships are.
Choosing the right partner
Capable distributors do far more than just move boxes. In markets like Indonesia, Thailand and the Philippines, where regulatory frameworks can be fluid and complex, compliance is a frontline issue. New regulations, like Thailand's salt tax, Singapore’s “war on sugar” or evolving labelling rules, can emerge with little notice. Here, the distributor’s proximity to government agencies and familiarity with enforcement practices is invaluable.
While it’s tempting to rely on a single regional distributor for efficiency, the reality is that local expertise is usually invaluable. Multi-market deals can be risky if a distributor lacks strong, on-the-ground relationships in each country, especially with major retailers or regulatory authorities. Often brands will end up structuring separate agreements in each market, even with a distribution group that has a regional presence.
The role of distributors in compliance and regulatory change
In today’s interconnected world, there's no one-size-fits-all communication strategy. In Thailand, for instance, apps like Line are preferred even by senior executives. In the Philippines, email followed by a WhatsApp or Viber message is the norm. While cold outreach is rarely effective, a respectful and culturally appropriate approach, often starting with a phone call, sets the stage for more meaningful engagement.
Understanding the preferred communication methods and business culture of each country isn't just polite, but it can make or break your entry into the market.
Spotting red flags early
Before formally appointing a distributor, it’s crucial to align on fundamentals. This includes expected retail and wholesale pricing, channel strategy, sharing of listing fees and marketing contributions, and sales forecasts.
Rather than relying on overly complex distribution contracts, many businesses are turning to short, practical memorandums of understanding. These outline the agreed business plan and basic terms including duration, territories, payment terms and damaged goods handling.
Setting clear expectations up front reduces friction and allows the relationship to focus on growth, not negotiation.
Aligning on fundamentals before signing
There are clear warning signs that suggest a distributor may not be the right fit. The biggest one among them is poor communication. If a distributor is slow to respond during early discussions or vanishes for long periods, that behaviour is unlikely to improve after appointing them. Another red flag is an unwillingness to share risk. If a distributor demands steep discounts or passes all listing fees and marketing costs onto the brand, it may signal a lack of long-term commitment.
Knowledge gaps are also revealing. If a distributor appears unfamiliar with your category or doesn’t have the right channel access, it’s often better to walk away than force a fit.
Exclusivity: trust and commitment in the same package
The Japanese market exemplifies how patience and local know-how can pay off. It’s a high–potential market, but heavily relationship-driven with many regulations to navigate.
Brands must identify the right decision-makers early and expect a slower sales cycle. Communication is typically via email, and distributors should be full-service vs. large trading houses with many unrelated business interests. Labels and claims need to be precisely compliant and even packaging decisions like over stickers versus market-specific SKUs require detailed planning.
Navigating complex markets
Exclusivity is a contentious topic, especially for brands with prior bad experiences. However, an exclusive distribution agreement gives the distributor the confidence to invest in the brand and ensures clarity in the market. Trying to manage multiple distributors in one country almost always leads to distributor competition, overlap, confusion, and cannibalisation. For on-the-ground execution, especially in grocery, it’s hard to beat a single well-aligned distribution partner model.
A one-size-fits-all playbook would be out of date the moment it's printed. Compliance rules vary not just by country, but by product category and even by interpretation across different customs agents. Instead of relying on a static guide, the most reliable strategy is building trusted, informed local partnerships.
In the APAC region and beyond, the success of a new export market is about so much more than “a good product”.
Strong relationships, clear planning, market-specific strategies and mutual respect between the brand and distributor are key to success of the venture. With these fundamentals in place, navigating even the most intricate markets becomes achievable and financially rewarding.
Read the full report here.
