Companies want growth, and for low margin Fast Moving Consumer Goods (FMCG) like milk growth comes from increased sales.. However companies don’t grow arbitrarily. They consider factors like their own capacity, behavior of competitors among others. For instance relatively small and low capitalized processors may not wish to grow very fast until they are able to increase their capacity (think machinery) to process more milk and more importantly until they are able to recruit more dairy farmers. They would be hesitant to get into a market only to develop a reputation of unreliable supplies. This is the reason some milk companies only supply milk to a few towns.

So if your location does not have a distributor of a particular brand it’s not necessarily because the company is not interested but it could be because its capacity does not allow. Of course the best way to find out is by approaching the company. It will be of help if you have an idea of the capacity/size of the company and most important you have hard figures on consumers, retailers, competitor behavior in your location. These can be just through observation. The aim is to convince the company of the existence of an opportunity if