The holiday season is in full swing…I know because I just got the text today from my mother-in-law asking for gift ideas…and there is one thing that I enjoy above everything else this time of year. All the food!
And whenever I think about food, there is one company that towers over all the rest when it comes to providing the majority of the food we eat. And that is Sysco Corporation (SYY – Get Rating), the largest non-grocery food provider in the U.S., and growing globally. They currently provide 17% of the $353 billion Foodservice Distribution market in the U.S.
Basically, Sysco provides food and beverage services to any place you can think of that is not a grocery store. Restaurants, sporting events, concerts, schools, hospitals, work cafeterias, cruise ships, airports…they even run stores at their packaging facilities where you can buy Sysco products yourself, usually on a limited number of days during the week.
Around 2015 something interesting happened in the food industry. The total amount of food and beverages consumed from grocery stores dropped below the amount consumed in restaurants and bars, and all the other places I mentioned above. This was the first time this had happened in the U.S., and despite a massive reversal of this trend during the pandemic, post pandemic the trend has reasserted itself. Today approximately 55% of all food and beverage sold is from food distribution companies, as opposed to 45% from grocery stores.
And, Sysco has been a major beneficiary of that trend, as they have not only grown their business with the trend, but are taking market share from smaller players in what is a very fragmented industry. One reason is their holistic approach to the food service industry.
Not only does Sysco provide food, as well as food service supplies, as in plates glasses, etc. but they also provide consulting services to the food industry. Sysco will help a failing restaurant examine its balance sheet and figure out a way to reduce expenses and increase profit…essential business management consulting. Which is part of Sysco’s strategy of supporting the full lifecycle of its customer base.
And the strategy, one part of its larger go to market strategy, which Sysco dubs its…
Continue reading at STOCKNEWS.com