# Target's Food & Beverage Unit Added $9B in Growth — Here's How Small Brands Get In

*The retailer turned grocery into a traffic engine by expanding shelf space for emerging CPG brands with traction.*

By **Jenny Huang Goodman MPA MSc MHSA, Principal** — The Stash Edge, Hako Shikin LLC.
Published 2026-09-04.

Canonical: https://www.pops4.com/stash/articles/target-2026-09-04t06-3
Subject: Target
Tags: target, food and beverage, retail platform, emerging brands, cpg distribution, category expansion

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Target's Food & Beverage category generated **$9 billion** in incremental growth since 2019, according to Forbes, making it the retailer's top traffic driver. The move transformed Target from a general merchandise destination into a primary grocery stop for millions of households. The mechanism: Target aggressively expanded shelf space and assortment depth in consumables, then prioritized emerging brands with differentiated products that pulled in new customers.

Target now positions Food & Beverage as a platform for emerging brands, not just established CPG giants. The retailer allocates dedicated shelf sets for new entrants that demonstrate early traction in direct-to-channel sales, social proof, or specialty retail. The category mix skews toward better-for-you, plant-based, and functional products — segments where small brands historically outperform legacy manufacturers in velocity per SKU. Target sources brands through its buyer network, accelerator programs, and direct outreach to companies showing momentum in Whole Foods, Sprouts, or regional chains.

This works because frequent consumable purchases drive store visits, and store visits create basket expansion across higher-margin hardlines. A customer arriving for oat milk leaves with apparel, home goods, or electronics. Target reported that shoppers who buy both food and general merchandise spend **three times more** per visit than single-category buyers, per the same Forbes report. By anchoring trips with grocery, Target converted occasional visitors into weekly regulars, which compounds over annual customer lifetime value.

The steal for a small physical-product brand is straightforward. First, prove velocity in a regional chain or specialty grocer. Target buyers want evidence: turns per week, reorder rate, consumer reviews. Document this. A brand doing **$50,000** per month across ten Whole Foods locations with consistent reorders has the proof Target evaluates. Second, enter through Target's Takeoff or Forward Founders programs, which surface brands to category buyers without requiring prior Target relationships. Applications open quarterly. Third, prepare for the volume test. Target will place a small brand in **50 to 100 stores** regionally before expanding nationally. The cost: you cover slotting (often waived for program participants), co-op marketing (typically **2-4%** of wholesale), and the working capital to fulfill initial orders. A brand with **$20,000** in cash and manufacturing capacity for **10,000 units** can make the first test viable.

Target's playbook also opens a wedge for non-food physical products. Once a brand establishes a Food & Beverage foothold, it gains access to Target's cross-merchandising logic. A hot sauce brand can extend into grilling tools. A snack brand can propose bundled gift sets in seasonal. The platform is the entry point; the expansion is where small brands capture margin and visibility beyond consumables.

## The takeaway

Target's $9B food growth turned grocery into a traffic lever — small brands enter via regional velocity proof and accelerator programs.

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## Publisher

**Hako Shikin LLC** — Virginia Beach, Virginia. Founded 1997. ASI 217876 · DUNS 18-204-6339.
Principal and author: **Jenny Huang Goodman MPA MSc MHSA**.

- Author: https://www.huanggoodman.com/about
- LLM context: https://www.pops4.com/stash/llms.txt
- MCP endpoint, for AI agents: https://mcp.pops4.com/mcp
- Client dashboard: https://dashboard.pops4.com/
- Catalogue: 70,000+ products, 200+ brands