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Consolidation on the menu: Sysco to buy US Foods

Dark picture of a Sysco truck

Dark picture of a Sysco truck

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

4 comments Add your comment

Richard

December 12th, 2013
1:03 pm

YEAHHHH! ALL THE HARD WORK OF PUTTING BETTER FOOD BACK IN THE HANDS OF THE LOCAL FARMS, LOCAL PRODUCERS, AND FARMERS IS PAYING OFF! GOOD WORK AMERICA! LETS KEEP UP THE GOOD WORK!! Its about time these jack asses learned to take responsibility for the past 40 years of horrible food on the American food landscape! Get rid of commodity food! Now the only thing left to do is get rid of Sysco!! One down ~ One to go!

Baltisraul.....

December 13th, 2013
2:45 pm

Richard……you sound like a budding communist. Where is your 5 year plan. lol

art

December 14th, 2013
12:16 pm

Richard, I’d be curious to know how you’d propose to feed a metropolitan area of 3 million plus using solely local farms?? Further, to think that even the farm-to-table establishments don’t have use for a supplier like Sysco, is to show an ignorance about the restaurant industry as a whole. Lastly, no one has ever held a gun to my head and made me eat anything. I am solely responsible for what goes into my mouth, horrible or otherwise.

kmaria

December 18th, 2013
5:43 pm

Soooo not a big fan of this news. I like US Fodds waaaay better than Sysco. It almost feels like Wal Mart is buying Target. This is going to be a really interesting merger….