Food and BeverageB2B GrowthRetail

Grocery Outlet 101: Closeout and Everyday Opportunities | Startup CPG Webinar

Startup CPG
Startup CPG•Mar 25, 2026

Why It Matters

Partnering with Grocery Outlet lets CPG founders convert surplus stock into sales, reduce waste, and access a fast‑growing discount channel that reaches cost‑conscious consumers nationwide.

Key Takeaways

  • •Grocery Outlet buys excess inventory, preventing waste and destruction costs.
  • •Fastest-growing discount grocer: $4.6B, 531 stores nationwide across United States.
  • •Direct-to-warehouse model eliminates brokers, speeds brand product placement.
  • •Stores offer brand-name goods at deep discounts, attracting price‑sensitive shoppers.
  • •Partnerships enable testing, regional distribution, and increased brand exposure.

Summary

The Startup CPG webinar highlighted Grocery Outlet’s pivotal role as a rescue channel for consumer‑packaged‑goods (CPG) brands facing excess or near‑expiry inventory. Founder Daniel explained how the retailer’s willingness to purchase closeout stock saves brands from costly destruction fees and puts products directly into consumers’ hands. Key insights included Grocery Outlet’s scale—$4.6 billion in revenue, 531 locations coast‑to‑coast, and a self‑distribution network that bypasses brokers. The company prioritizes rapid decision‑making, buying both closeout and everyday items, and positions itself as the “TJ Maxx of grocery” with a treasure‑hunt shopping experience that drives trial and deep discounts. Notable remarks underscored the partnership’s value: Daniel noted the emotional relief of avoiding waste, Tom Fossett called Grocery Outlet a “safety net for CPG,” and Angelique described the store experience as “Costs‑Less Co.” The team also emphasized opportunities for brands to test new SKUs, gain regional exposure, and reach price‑sensitive shoppers. For founders, the implications are clear: Grocery Outlet offers a low‑friction, high‑visibility outlet to salvage inventory, generate consumer impressions, and expand distribution without the red tape of traditional retail channels, turning potential loss into revenue and brand growth.

Original Description

Are you sitting on excess inventory—or approaching a code date with no plan?
In this Startup CPG webinar, Daniel Scharff sits down with a team of veteran buyers from Grocery Outlet to explore how CPG brands can turn surplus, short-coded, and discontinued inventory into real revenue. This session breaks down how Grocery Outlet operates as a fast-moving, no-red-tape partner for emerging and established brands alike—bridging the gap between over-production and consumer access.
From pricing mechanics to live pitch examples, we cover how brands can approach Grocery Outlet, what information to bring, which categories are in highest demand, and how to move product quickly without sacrificing brand equity.
If you're a CPG founder, operator, or supply chain manager looking to avoid product destruction costs and unlock a new sales channel, this is your playbook for working with the fastest-growing discount grocer in the U.S.
Takeaways:
How Grocery Outlet operates as the "safety net" for CPG brands with excess or short-coded inventory
Why Grocery Outlet should be your first call before going to a broker
What information to include in your product submission to get a fast yes
How pricing and discounts work—and why margin requirements aren't the starting point
Which categories are in highest demand right now
How brands can use Grocery Outlet to hit MOQs, test new SKUs, and meet end-of-quarter sales targets
Why regional targeting and inventory control make Grocery Outlet a brand-safe partner
Real-world pitch examples from founders on the call
How relabeling, repackaging, and reconditioning expand what Grocery Outlet can accept
Alternative channels for surplus inventory, including brokers and Feeding America food banks
Key Topics:
01:24 Who shops at Grocery Outlet and what makes the experience unique
03:39 Why Grocery Outlet is a vital partner in the CPG ecosystem
05:32 Meet the buyers
12:48 Grocery Outlet's footprint: 531 locations, $4.6B revenue, both coasts, and growing
15:22 When brands should approach Grocery Outlet and what situations it solves
16:47 Types of inventory Grocery Outlet accepts: short-coded, excess, discontinued, seasonal, and more
19:15 Pricing mechanics: the 40% consumer savings basket and how deals get structured
20:00 How to submit a product: what data to include and what happens next
26:12 Decision timelines, PO speed, and buyer autonomy
27:21 How Grocery Outlet evaluates products differently from conventional retailers
29:43 Logistics: pick-up vs. delivery, warehouse locations, and self-distribution
33:44 Most in-demand categories: protein, beverages, pet food, Dubai chocolate, functional drinks, and more
36:39 No minimum order quantity—and how regional placements work
43:52 Live pitch #1: Allison from Say So
47:23 Live pitch #2: Rathi from Lentil
49:31 Live pitch #3: Grace from Absurd Snacks
53:08 Wrapping up: contact info, how to submit, and key takeaways
55:28 Additional surplus channels: brokers, food banks, and how to extend expiry dates
Connect with Guests:
Grocery Outlet 🌐 Website: https://www.groceryoutlet.com
Angelique Muñoz — Buyer, Dry Grocery: Pet Food & Soup, Grocery Outlet
Angelique has 17 years of retail experience at Grocery Outlet, with 11 years of buying across many food and non-food products.
Brianne Wong — Senior Buyer, Health & Beauty Care, Grocery Outlet
Sarah Albini — Buyer, Health & Beauty Care, Grocery Outlet
Carol Yu — Buyer, Beer, Wine, and Spirits, Grocery Outlet
Tonya Rice — Senior Buyer, Frozen, Grocery Outlet
Dalila Pigford — Senior Director, General Merchandise, Grocery Outlet
Tom Fawcett — Buyer, Grocery Outlet
Daniel Scharff — Founder, Startup CPG
About Startup CPG: Startup CPG is the largest community for emerging brands: 35,000+ Slack members, the #1 podcast in CPG, 100+ events per year, and award-winning resources to help brands grow. Join free today: https://startupcpg.com/sign-up
#StartupCPG #CPG #GroceryOutlet #ExcessInventory #CloseoutDeals #CPGFounders #DiscountRetail #FoodWaste #InventoryManagement #CPGMarketing #RetailStrategy #EmergingBrands #BrandGrowth

Comments

Want to join the conversation?

Loading comments...