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Sysco

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This article is about the American food-service company. For the Canadian Crown corporation, see Sydney Steel Corporation.
Not to be confused with Cisco or Sisqó.
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Sysco Corporation
Company typePublic
IndustryWholesale
FoundedMarch 19, 1969; 55 years ago (1969-03-19)
Founder
Headquarters
Houston, Texas
,
U.S.
Key people
Kevin Hourican (chairman and CEO)
Services
  • Food-service
  • Food-away-from-home
Revenue
  • Increase US$78.8 billion (2024)
  • Increase US$3.20 billion (2024)
  • Increase US$1.96 billion (2024)
Total assets
  • Increase US$24.9 billion (2024)
Total equity
  • Decrease US$1.86 billion (2024)
Number of employees
76,000 (2024)
Websitesysco.com
Footnotes / references
Financials as of June 29, 2024.[1]

Sysco Corporation (short for Systems and Services Company) is an American multinational corporation involved in marketing and distributing food products, smallwares, kitchen equipment and tabletop items to restaurants, healthcare and educational facilities, hospitality businesses like hotels and inns, and wholesale to other companies that provide foodservice (like Aramark and Sodexo). The company is headquartered in the Energy Corridor district of Houston, Texas.[2] Sysco is the world's largest broadline food distributor; it has more than 600,000 clients in a wide array of fields. Management consulting is also an integral part of their services. The company operates approximately 330 distribution facilities worldwide; providing service to over 90 countries.

The company was founded in 1969 by Herbert Irving, John F. Baugh, and Harry Rosenthal.[3] The company became public on March 3, 1970. On July 20, 2009, Fortune magazine ranked Sysco No. 204 in the annual Fortune 500 companies in world based on sales volume. On May 3, 2010, Fortune ranked Sysco as the seventh largest Fortune 500 Company in Texas and 55th largest in the U.S. by total revenue.[4] Sysco is also the largest non-oil related company in Houston and the third largest non-oil related company in Texas (behind AT&T and Dell).[4] The company ranked No. 54 in the 2018 Fortune 500 list of the largest US corporations by total revenue.[5]

In December 2013, Sysco announced an $8.2 billion planned acquisition of its next-largest food distribution rival, US Foods.[6] The Federal Trade Commission challenged the acquisition as a violation of the Clayton Antitrust Act that would substantially lessen competition. After the court ruled that the combined company would likely reduce competition because it would control 75% of the U.S. food service industry, Sysco terminated its merger with US Foods.[7]

History

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Founding and early history

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In 1966, Zero Foods owner John Baugh initiated discussions with the leaders of eight other food distribution companies about the prospect of forming one large corporation.[8] The nine companies agreed to terms and formed Sysco in May 1969. At the time of the merger, the total sales of the nine companies were approximately $115 million.[9] In March 1970, Sysco held its initial public offering.[10]

Sysco made its first acquisition in 1970, purchasing Arrow Foods Distributor.[11] Between 1970 and 1980, the company continued to grow through the acquisition of 25 small food distributors.[12] It also expanded its trucking fleet and constructed refrigerated warehouses for food storage.[9]

In 1980, Sysco recorded $1.2 billion in annual revenue. The following year, it moved its stock from the American Stock Exchange to the New York Stock Exchange.[12] In 1985, Sysco was described in a New York Times report as "the nation's leading food service marketing and distribution company."[13]

Acquisitions and expansion

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In 1988, Sysco achieved nationwide coverage through its acquisition of the food distributor CFS Continental.[14] By 1996, Sysco was the third-largest company in Houston and had over 30,000 employees.[15] Sysco acquired Newport Meat in 1999,[16] which at the time had sales of approximately $100 million per year. This was the company's first acquisition of a California company.[17] Between 1995 and 2000, Sysco's annual sales increased from $12 billion to $19 billion.[14] In 2002, Sysco expanded into the Canadian market by purchasing SERCA Foodservices for $278 million.[18] SERCA's business was similar to Sysco's, with the Canadian company supplying food products and foodservice supplies to approximately 80,000 customers at the time of the acquisition.[18] The following year, Sysco acquired Asian Foods, which was then the largest Asian food distribution company in North America.[19][9] In 2009, Sysco made its first acquisition outside of North America, buying the Irish food distributor Pallas Foods.[20][21] Further expanding its footprint in Ireland, Sysco purchased the food distributor Crossgar Foodservice for an undisclosed amount in 2012.[22][23] In December 2012, Sysco acquired Appert's Foodservice, Buchy Food Service, Central Seafood Company, and Distagro.[24]

On December 9, 2013, Sysco announced they were planning to acquire US Foods, their closest competitor, for a total of $3.5 billion.[25][24] However, on June 24, 2015, US Federal Judge Amit Mehta ruled that the combined Sysco-US Foods would control 75% of the U.S. food service industry and would stifle competition.[26] As a result, on June 29, 2015, Sysco terminated its merger with US Foods.[27]

In February 2016, Sysco announced that it was purchasing the Brakes Group for $3.1 billion.[28] At the time, Brakes was serving about 50,000 restaurants, hotels, and schools across Europe.[29] In October 2017, Sysco acquired HFM FoodService, and later changed its name to Sysco Hawai'i in 2019.[30]

In February 2018, Sysco acquired Doerle Food Services, a Louisiana-based foodservice.[31] In March 2018, Sysco acquired Kent Frozen Foods.[32] In 2020, Sysco acquired a 50% stake in Pacific Star Foodservice.[33]

In May 2021, Sysco acquired Greco and Sons, a distributor of Italian specialty food products.[34] In the September the same year, Sysco acquired Medina Foodservice.[35] In November 2021, FreshPoint, a division of Sysco, acquired Paragon Foods.[36] Later that year, Sysco purchased the fresh produce distributor The Coastal Companies for the purpose of supplementing both its fleet and its specialty produce business.[37] In October 2023, Sysco announced that it was purchasing Edward Don & Company, a food service supplies and equipment distributor.[38][39] This acquisition gave the company additional office and distribution space, as well as the ability to design and build kitchens for its customers.[40]

In December 2023, Sysco Ireland announced plans to acquire Ready Chef Ltd.[41][42]

In October 2024, Sysco acquired Scotland-based meat and fish supplier, Cambell's Prime Meat.[43][44]

Sysco truck docked at Duke University

Products and services

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Sysco sells and distributes food and non-food products to businesses that serve food, such as restaurants, healthcare facilities, sports stadiums, and schools.[45][46] These goods include ingredients such as meats and produce, as well as frozen foods and prepared meals.[9][47] Sysco also provides its customers with dining room supplies, kitchen equipment, and eating utensils.[46][38]

Within its broader business, Sysco provides customers goods and expertise through its specialty divisions. For example, its FreshPoint division supplies produce to customers.[48] In 2021, Sysco acquired Greco & Sons, an importer and distributor of Italian food products. Greco & Sons operates as an independent division within the company.[49] Sysco offers custom kitchen building for its restaurant customers.[40] The company also aids these customers with tasks such as menu design and the development of marketing campaigns.[46][50]

Sysco owns Sygma, a subsidiary it founded in January 1984.[51] Sygma is a food service supplier specializing in large chain restaurants. As of February 2023, Sygma was operating 15 distribution centers and delivering goods to 13,000 chain franchises throughout the United States.[52]

Since 2009, Sysco has worked with the World Wildlife Fund to set targets on the volume of seafood it procures from sustainable fisheries.[53] In January 2021, Sysco announced plans to increase purchases of sustainable seafood, particularly from fisheries certified by the Marine Stewardship Council and the Aquaculture Stewardship Council.[54] Sysco's "One Planet. One Table." assortment of products, which includes approximately 3,000 food items backed by at least one of 20 sustainability certifications and standards, launched in November 2023.[55][56]

In December 2021, Sysco announced its intention to cut its carbon footprint by 27.5% by 2030.[57] In May 2022, Sysco committed to the purchase of 800 Freightliner eCascadia electric trucks.[58] The first vehicles in this order were delivered in November 2022.[59] In August 2022, Sysco's UK division launched its first electric delivery truck.[60] ​​In April 2023, the company announced the construction of an electric vehicle hub in Riverside, California.[61] As of September 2024, the company operates 130 heavy-duty electric tractors across the US, Canada, Sweden, and the UK.[62][63]

In February 2024, the company's UK division partnered with the foodservice technology firm Nutritics to develop a system that helps food businesses quantify the carbon footprint of the food they serve.[64]

References

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  1. ^ "Sysco Corporation FY 2024 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. August 28, 2024. Retrieved August 28, 2024.
  2. ^ "Land Use and Demographics[permanent dead link‍]." Energy Corridor District. March 2009. 3 (7/53). Retrieved on January 16, 2010.
  3. ^ "Sysco". Library of Congress. Archived from the original on October 31, 2020. Retrieved March 17, 2024.
  4. ^ a b "Fortune 500 2010: States: Texas Companies". CNN.
  5. ^ "Fortune 500 Companies 2018: Who Made the List". Fortune. Retrieved 2018-11-10.
  6. ^ Some independents eager to take bite out of Sysco, The Deal Pipeline, William McConnell, April 3, 2014.
  7. ^ Gara, Antoine (June 29, 2015). "Sysco Cancels $8.2 Billion US Foods Takeover In Big Antitrust Win For FTC". Forbes. Retrieved October 1, 2015.
  8. ^ Hassell, Greg (July 10, 1998). "The sage of Sysco; Retired founder still at work". Houston Chronicle. Zero Foods was transformed into Sysco in the late 1960s, when Baugh decided the time was ripe to go national. Rather than battle rivals in other cities, he recruited eight different distributors with the idea of joining him and forming one big company... Baugh initiated the discussions in 1966, and three years later, the far-flung companies cemented their partnership.
  9. ^ a b c d Takahashi, Paul (March 26, 2020). "Houston food service giant Sysco marks 50th anniversary as challenges mount". Houston Chronicle. Retrieved December 19, 2023. Cite error: The named reference "HoustonChronicle2" was defined multiple times with different content (see the help page).
  10. ^ "Business briefs; Houston & Texas". Houston Chronicle. November 7, 1998. Sysco Corp. plans to raise its cash dividend by a penny to 10 cents per share… The dividend increase is the 30th approved since the company's initial public offering in March 1970.
  11. ^ Amber, Melis (August 6, 2023). "Sysco: 13 Facts About The Nation's Largest Food Distributor". Mashed. Retrieved December 19, 2023.
  12. ^ a b "$1 Billion Company 'Practically Invisible'". New York Times. February 12, 1981. Retrieved December 19, 2023.
  13. ^ Gilpin, Kenneth N. (November 11, 1985). "President Named In Sysco Changes". New York Times. Retrieved December 19, 2023.
  14. ^ a b Hagerty, James R. (January 3, 2020). "Former Sysco CEO Bill Lindig, Who Helped Create Food-Service Giant, Dies at 83". Wall Street Journal. Retrieved March 4, 2024.
  15. ^ Hassel, Greg. "Sysco goes to court vs. RioStar/Chapter 7 sought for Ninfa's parent." Houston Chronicle. Friday October 18, 1996. Business 1. Retrieved on February 6, 2012.
  16. ^ Earnest, Leslie (1999-07-10). "Sysco Acquiring Newport Meat". Los Angeles Times. Retrieved 2024-09-06.
  17. ^ "COMPANY NEWS; SYSCO TO BUY A CALIFORNIA MEAT DISTRIBUTOR". New York Times. July 10, 1999. Retrieved March 4, 2024.
  18. ^ a b "SYSCO TO ACQUIRE SERCA, CANADIAN NATIONAL BROADLINER, (USD$1.4-BILLION)". Restaurant Business. 5 December 2001. Retrieved 29 December 2020.
  19. ^ "Asian Foods bought by Sysco". bizjournals. 12 November 2002. Retrieved 29 December 2020.
  20. ^ Labanyi, David (April 1, 2009). "Sysco buys Limerick-based Pallas Foods". The Irish Times. Retrieved March 4, 2024.
  21. ^ "Pallas Foods sold to Sysco after two decades of family ownership". Irish Independent. 2009-03-31. Retrieved 2024-09-06.
  22. ^ Jones, Kristin. "Sysco Buys Crossgar Foodservice, Pushing Irish Expansion". Wall Street Journal. Archived from the original on June 17, 2012. Retrieved 15 June 2012.
  23. ^ "Crossgar Foodservice bought by US firm Sysco". BBC. June 13, 2012. Retrieved July 2, 2024.
  24. ^ a b "Sysco Acquires Four Foodservice Businesses". Restaurant Business. 10 January 2013. Retrieved 2024-10-30.
  25. ^ de la Merced, Michael J. (June 29, 2015). "Sysco Terminates Deal With US Foods". New York Times. Retrieved March 4, 2024.
  26. ^ Kendall, Brent (2015-06-29). "Judge Explains Reasons for Blocking Sysco-US Foods Merger". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-07-08.
  27. ^ "Sysco Cancels $8.2 Billion US Foods Takeover In Big Antitrust Win For FTC". Forbes. June 29, 2015.
  28. ^ Hellier, David (2016-02-22). "Brakes sold to US company Sysco in $3.1bn deal". The Guardian. ISSN 0261-3077. Retrieved 2024-09-06.
  29. ^ Picker, Leslie (February 22, 2016). "Sysco to Acquire Brakes Group, a Food Distributor in Europe". New York Times. Retrieved March 4, 2024.
  30. ^ "HFM FoodService becomes Sysco Hawaiʻi | 2019-08-29 | Refrigerated & Frozen Foods". www.refrigeratedfrozenfood.com. Retrieved 2024-10-16.
  31. ^ report, Advocate staff (2018-02-19). "Sysco Corp. acquires Doerle's Louisiana-based food service distribution business serving six states". The Advocate. Retrieved 2024-11-20.
  32. ^ foodmanufacture.co.uk (2018-04-04). "Sysco completes Kent Frozen Foods acquisition". foodmanufacture.co.uk. Retrieved 2024-10-16.
  33. ^ Jones, Frazer (2020-05-17). "Sysco Acquires 50 Percent Stake in Mexican Distributor Pacific Star Foodservice". fooddigital.com. Retrieved 2024-10-30.
  34. ^ Romeo, Peter (May 20, 2021). "Sysco to acquire Italian specialist Greco and Sons". Restaurant Business. Retrieved March 4, 2024.
  35. ^ Cheshire, Luisa (3 September 2021). "Sysco acquires Medina Foodservice". Fruitnet. Retrieved 2024-09-27.
  36. ^ Schooley, Tim (29 November 2021). "Bellin sells Paragon Foods to FreshPoint division of Sysco". Pittsburgh Business Times. Retrieved 27 September 2024.
  37. ^ Kapadia, Shefali (December 8, 2021). "Sysco acquires distributor The Coastal Companies and its fleet assets in M&A spree". Trucking Dive. Retrieved March 4, 2024.
  38. ^ a b "Sysco to acquire Edward Don & Company". Houston Daily. October 14, 2023. Retrieved March 4, 2024. Cite error: The named reference "HoustonDaily" was defined multiple times with different content (see the help page).
  39. ^ Romeo, Peter (11 October 2023). "Sysco is buying equipment supplier Edward Don". Restaurant Business. Retrieved 2024-09-19.
  40. ^ a b Whitaker, Harriet (October 16, 2023). "Edward Don & Co sells business to Sysco". Catering Insights. Retrieved March 4, 2024. Cite error: The named reference "CateringInsight" was defined multiple times with different content (see the help page).
  41. ^ "Sysco Ireland to acquire fruit and veg supplier Ready Chef". The Irish Times. Retrieved 2024-09-19.
  42. ^ "Sysco Ireland to acquire specialist produce supplier Ready Chef". 2023-12-08. Retrieved 2024-09-19.
  43. ^ "Campbell's Prime Meat joins Sysco family in landmark acquisition". Scottish Financial News. 2024-10-30. Retrieved 2024-12-11.
  44. ^ "Brakes' parent company acquires Scottish meat supplier". The Caterer. Retrieved 2024-12-11.
  45. ^ Yang, Jia Lynn (May 27, 2009). "Veggie Tales". CNN. Retrieved March 20, 2024.
  46. ^ a b c Ferguson, Grier (May 28, 2020). "Food distributor moves quickly to meet rapidly shifting needs". Business Observer. Retrieved March 20, 2024.
  47. ^ Redman, Russell (April 21, 2020). "Sysco kicks off online grocery service in Canada". Supermarket News. Retrieved March 20, 2024.
  48. ^ Koger, Chris (August 3, 2018). "Sysco's FreshPoint to add fresh-cut capabilities in Dallas". The Packer. Retrieved March 20, 2024.
  49. ^ Gillespie, Lane (May 20, 2021). "Sysco to acquire US-based Italian food co". Houston Business Journal. Retrieved March 20, 2024.
  50. ^ James, Chandler (September 10, 2020). "Sysco Launches New Foodie Solutions Platform". AndNowUKnow. Retrieved March 20, 2024.
  51. ^ "Food-Service Growth Fills Out Sysco Menu". Chicago Tribune. November 14, 1985. Retrieved March 20, 2024.
  52. ^ Miller, Abby (February 13, 2023). "Sysco Corp. opens food distribution facility in NKY, will employ 300". Cincinnati Business Courier. Retrieved March 20, 2024.
  53. ^ Aronson, Melissa (January 13, 2024). "Sysco Announces 2025 Seafood Sustainability Commitment". Seafood Sustainability. Retrieved June 17, 2024.
  54. ^ Blank, Christine (January 14, 2021). "Sysco tightens seafood sustainability policy to require more MSC- and ASC-certified seafood". Seafood Source. Retrieved March 20, 2024.
  55. ^ "Sysco introduces 'One Planet. One Table.'". Houston Daily. November 30, 2023. Retrieved December 18, 2024.
  56. ^ Stockton, Sommer (November 29, 2023). "Sysco Introduces 'One Planet. One Table' Product Line". The Shelby Report. Retrieved December 18, 2024.
  57. ^ "Sysco Commits to Electrify 35% of Fleet by 2030". Trucking Info. December 2, 2021. Retrieved March 20, 2024.
  58. ^ Hanley, Steve (2022-05-23). "More Electric Semi Trucks Coming To US & Europe". CleanTechnica. Retrieved 2022-07-24.
  59. ^ Lovrak, Tess (November 15, 2022). "Sysco receives first battery electric Freightliner eCascadia". Fleet Equipment. Retrieved March 20, 2024.
  60. ^ Badger, James (August 25, 2022). "Brakes and Sysco Speciality Group begin electric vehicle trial". The Grocer. Retrieved May 22, 2024.
  61. ^ "Sysco unveils vision for first EV hub: 40 electric tractors and refrigerated trailers; 4MWh ESS and 1.5MW additional solar". Green Car Congress. April 25, 2023. Retrieved May 22, 2024.
  62. ^ Packer, Peggy (September 10, 2024). "Sysco Adds Electric Tractors to Fleet in Victoria, British Columbia; Neil Russell Shares". AndNowUKnow. Retrieved December 19, 2024.
  63. ^ "Sysco adds 10 electric trucks in Houston". Fleet Owner. May 30, 2024. Retrieved January 8, 2024.
  64. ^ Barker, Michael (February 16, 2024). "Sysco launches innovative carbon labelling system for foodservice". Fresh Produce Journal. Retrieved March 20, 2024.
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Wikimedia Commons has media related to Sysco.
  • Official website
  • Business data for Sysco:
  • Asian Foods Inc.
  • BusinessWeek 50 ranking and analysis of Sysco
  • The SYGMA Network, Inc.
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