Distribution starts with production.

Producers initiate the channel and market the products.

For example:

A producer owns an apple orchard. Depending on the size of the crop, that producer could sell the apples to
  • consumers directly from a roadside stall,
  • a neighbour to sell to consumers at the local farmers' market, and/or
  • SunRype® for apple sauce to sell (through processing, manufacturing and distributing) to consumers in grocery stores.