This news item may only be of interest to folks in the restaurant industry, but have you heard?
Sysco is buying US Foods for $3.5 billion — a move that is expected to boost the foodservice company’s annual sales by 46%.
This ubiquitous supplier of everything from dishwasher sanitizer to 5-pound blocks of frozen tiger prawns to cases of mesclun salad mix to #10 cans of ketchup to frozen mozzarella sticks to every single thing a restaurant purchasing department could ever dream of ordering will be twice as big.
At a time when many of the most lauded restaurants are trying to develop more small-scale and local distribution systems, this consolidation among giants is interesting.
As best I know, US Foods works more with institutional clients. In some ways, the consolidation might be a boon for hospitals and company cafeterias, now that they’ll have more access to Sysco’s products.
If anyone has a perspective on this news, I’m curious.
- by John Kessler for the Food & More blog