EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

Fax: (281) 584-2524
www.sysco.com
Total Fiscal 2011 Sales: $39.3 Billion +5.6%; Broadline Sales: $31.9 Billion
Percentage of Broad Line Sales in Exclusive Brands: 45.5%
Principal Business: Sysco (NYSE: SYY) is the largest North American distributor of food and
related products primarily to the foodservice or food-prepared-away-from-home industry. Net
earnings were off by 2% to $1.2 billion for the year. Its base of some 400,000 customers covers
restaurants, healthcare and educational facilities, lodging establishments, and other foodservice
customers. They are served from 177 Sysco distribution centers in the US, Canada, and Ireland.
Sysco’s core broadline distribution business covers a full line of food products plus nonfood items
sold to traditional and chain restaurant customers. The company also operates SYGMA as a
division serving certain chain restaurant customers. The company additionally operates Fresh
Point produce, meat-cutting operations and other services. Sysco’s portfolio covers more than
400,000 products systemwide, including a full line of products (frozen foods, canned and dry
goods, fresh meats, imported specialties, and fresh products; as well as nonfood items, such as
paper products, tableware, restaurant and kitchen equipment and supplies; medical and surgical
supplies; and cleaning supplies). The company’s customers include restaurants, hotels, motels,
schools, colleges, cruise ships, summer camps, sports stadiums, theme parks, and other
foodservice units.
EB Identities: There are four-quality tiers for Sysco brands--Supreme, Imperial, Classic, and
Reliance. SYSCO (Supreme-Gold, Imperial-Blue, Classic-Red) 1st quality; Reliance Green 2d
quality; Value Line Brown 3d quality, plus numerous specialty or segment brands—Arrezzio
(domestic and imported Italian foods), Pasta laBella (lemon pepper, chili pepper or tomato basil),
Casa Solano (Mexican foods), Jade Mountain (Asian foods), Block & Barrrel (deli program),
House Recipe (premium quality tabletop condiments, signature teas, and gourmet cocoas),
SYSCO Brandables (a complete menu concept package incorporating segment brand products,
signage, menus, uniforms, how-to manuals, etc.), SYSCO Earth Plus (disposable napkins and
towels), Hidden Cove (fresh seafood), Serene (paper and disposable cups, plates, bags, boxes), etc.
EB skus: 40,000
Profile: Sysco was hit this year by higher costs in different food categories, plus by comparison an
extra week in 2010. Nevertheless, its net earnings did advanced by 3.2% to $ 1.2 billion. The
company claims a 17.5% market share in the US/Canadian foodservice business. Most of its sales
are in restaurants (62%), followed by hospitals/nursing homes (11%), hotels/motels (6%),
schools/colleges (5%), and 16% other. Its SYGMA business (certain chain restaurants like
Wendy’s) accounted for 13.6% of total sales. UPDATE: For fiscal 2012 (ending June 30), Sysco
reported its total sales up by 7.8% to $42.4 billion, while net earnings dipped by 2.6% to $1.1
billion. The latter was affected by food cost inflation on its meats, canned and dry grocery items,
and frozen foods. The company now operates 185 distribution facilities.
Procurement Contacts: N/A