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Sysco Corporation Message Board

  • mydogmolson mydogmolson Feb 25, 1999 4:04 AM Flag



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    • Thanks!!

    • Estimated annual sales in foodservice industry in
      the United States is roughly $160-170 Billion,
      depending on which source you're reading. SYSCO's share
      (including the Canadian Operations) is roughly $17 Billion,
      with projections that SYSCO will reach $20 Billion
      with in just a few years.

      Next closest
      competitors in terms of annual sales volume are US
      Foodservice and Alliant, both sitting at about $6 Billion and
      some change.

      Market is highly fragmented with
      over 3000 companies falling under the foodservice
      distributor umbrella. Most belong to "buying groups" which
      attempt to pool the purchasing power of smaller companies
      to obtain more favorable pricing. Examples of buying
      groups are Nugget, Pocohantas, Uni-Pro. The largest
      buying group, Uni-Pro, represents companies whose
      combined purchasing power in about $20 Billion (according
      to Uni-Pro).

      The three largest distributors
      -- SYSCO, US Foodservice, and Alliant -- operate
      nearly nationwide. SYSCO is active in all states but
      Hawaii, as well as parts of Canada. Of these three, only
      SYSCO and US Foodservice are publicly traded. Alliant,
      formerly the foodservice distribution wing of Kraft Foods,
      was taken private a few years ago by an investment
      group. They've recently hired the former Compaq Computer
      CFO to be their new president (or CEO, I'm not sure
      which). SYSCO and US Foodservice differ in their
      philosophies on the use of debt to finance operations and
      expansions. Consequently, US Foodservice is more vulnerable
      to fluctuations in the debt rate. Most of their debt
      is tied to LIBOR, not the US rate. SYSCO pays
      dividends, US Foodservice does not. US Foodservice is
      aggressively purchasing other distributors, SYSCO seems more
      selective in its purchases.

      There are dozens of
      sizable distributors throughout the country. I'm not sure
      which of them are publicly traded.

    • Two of the competitors are U.S. Foodservice (UFS) and Performance Food Group (PFGC).

    • Do you get a choice when they cut your territory,
      Whether or not you want it to happen. I have been very
      fortunate to work for a company that truly cares about
      there employees WHITE SWAN now U, S.
      Foodservice.......... GOOD LUCK

    • This board sucks, sorry to say. NO useful info, nothing, isn't this a meat company? Meat + management = Money. PPLLOODKKDJJDNNeeeeee#9 plutonic queen.

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