What It Really Takes for Small Food Businesses to Enter Retail in Cape Town

For many small food businesses, getting a product onto retail shelves is seen as a defining milestone. But as a recent Food & Beverage Growth Coalition engagement revealed, the reality behind that milestone is far more complex, and often underestimated.

Convened at UVU Africa, the session brought together industry experts, entrepreneurs, and public sector stakeholders to unpack what “retail readiness” actually means in practice.

A central theme emerged early in the discussion: retail readiness is not just about having a strong product.

“It’s important to have the retailer’s checklist in writing,” said Tracey Cherrington, a growth business coach and former national procurement manager at SPAR. “There’s a whole ecosystem you need to engage with at retailers – from logistics to warehousing to food safety. It’s easy to think you’re ready when you’re not.”

Cherrington noted that many emerging suppliers approach retailers with a fundamental misalignment of expecting retailers to adapt to their business models. “Retailers are like massive ships that take years to turn a few degrees. You have to fit into how they work,” she advised.

Cost and complexity were also recurring themes. Suppliers often underestimate the financial implications of entering retail, from compliance requirements to merchandising and distribution costs, leading to unsustainable growth trajectories.

From an entrepreneur’s perspective, Cait Black, co-founder of Grumpy Snacks, emphasised that success in retail starts long before listing.

“Our journey to retail started with the product,” she said. “You have to ask – have you created something people actually want? If you have, you’re already moving in the same direction as retailers.”

However, she cautioned that entering retail is only part of the journey. “The biggest challenge has been doing well in retail. Serving retail can be incredibly taxing.”

Beyond individual businesses, the discussion also highlighted broader systemic challenges within the food ecosystem.

Nicola Jenkin, founder of Pinpoint Sustainability, pointed to the interconnected nature of environmental, financial, and social sustainability. “You forget basic things like access to water,” she said. “And then there’s the social dimension—how you treat labour. When you look at all these requirements, it can feel overwhelming.”

At the same time, she highlighted untapped opportunities within the food system for SMMEs to explore. With an estimated 10.3 million tonnes of food waste generated annually in a food-insecure country, there is growing potential for small businesses to investigate alternative value streams, such as composting or repurposing non-compliant produce instead of product provision alone.

The conversation also surfaced an important disconnect between support structures and the businesses they are intended to serve.

Black noted that her business had never actively engaged government support platforms, citing a lack of visibility and trust. This sentiment was echoed by participants in the room, including calls for more accessible communication and outreach to ensure that SMMEs are aware of the support resources available from City and Province departments.

Overall, the session underscored the value of collaborative platforms like the Growth Coalitions in bridging gaps between stakeholders. Independent retailers, in particular, were highlighted as critical entry points for emerging brands, offering more flexible pathways to market and opportunities to test products.

As Cape Town continues to prioritise inclusive economic growth, the discussion made one thing clear: unlocking retail access for SMMEs will require more than meeting standards. It will depend on stronger alignment between stakeholders, clearer pathways to readiness, and better connection between support systems and the businesses they aim to serve.

To find out more about the Food & Beverage Growth Coalition, email in**@******co.za.