Channel Profitability Analysis

The biggest-revenue channels are not the most profitable. Across ten channels, contribution margin ranges from 44% to 56% of revenue, and distribution — the route usually assumed to be cheaper — lands at the bottom. This tool traces where each dollar of the brand's ~$25.6M in annual revenue becomes contribution, and where it disappears. Cinderhaven is a fictional specialty food brand; the figures are illustrative.

* FY2026 is in progress — a partial year (data ends early in Q1), so its totals are below a full ~$25.6M year.

Retailers

6 channels · $17.7M revenue

Contribution Margin50.7%

FY2025, all 6 retailers

Distributors

3 channels · $7.8M revenue

Contribution Margin45.3%

FY2025, all 3 distributors

DTC

1 channel · $187.4K revenue

Contribution Margin52.7%

FY2025, DTC channel

Revenue by Channel

FY2025 · Top 3 = 41% of revenue

Margin Evolution

FY2025, all channels · Click a line to isolate

Dispute Overhead

FY2025 · Bubble size = channel revenue

The Full Picture

Channel	Revenue	Net Contribution	Margin ▼	Erosion
Whole Foods	$3.3M	$1.8M	55.2%	$1.5M
Sprouts	$2.8M	$1.5M	52.8%	$1.3M
DTC	$187.4K	$98.7K	52.7%	$88.7K
Regional Group	$2M	$1M	50.6%	$998.7K
Kroger	$3.6M	$1.8M	50.3%	$1.8M
Median			49.2%
Walmart	$3.6M	$1.7M	48.1%	$1.9M
Costco	$2.3M	$1.1M	46.5%	$1.2M
KeHE	$3M	$1.4M	46.2%	$1.6M
UNFI	$3M	$1.3M	45.0%	$1.6M
DPI Northwest	$1.8M	$795.5K	44.2%	$1M

FY2025 · Click column headers to sort

Capital Allocation

Action 1

Grow retail volume

50.7%

retail contribution margin

5.4 points above distribution. Deduction profiles are more complex, but per-dollar return more than compensates. Incremental volume here delivers the highest marginal return.

Action 2

Restructure dispute triage

$143.1K

annual dispute overhead

Walmart alone accounts for $28.9K on ~447 disputes/yr. Automate low-value claims, raise the filing threshold, or eliminate disputes where recovery is negligible.

Action 3

Review Costco economics

46.5%

contribution margin — lowest retailer

Trade deduction rate of 1.2% of revenue — highest among retailers. A trade-term renegotiation or promotional rebalancing could close part of the gap.