Foodservice Distribution Industry

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01
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Part
01

U.S. Foodservice Distributors: Top 4

According to our research, the top four food service distributors in the United States are Sysco, U.S. Foods, Performance Food Group, and Gordon Food Service. On the attached spreadsheet, our findings on this particular topic are available in columns A through C of rows three through six. Below we have outlined our research strategy and provided a summary of our findings.

METHODOLOGY

To identify the top four food service distributors in the United States, we initially examined media and market research reports for relevant information. We explored sources such as Technomic, Applico Inc., Mr. Checkout, TT News, and Seeking Alpha among others. On Technomic, we discovered a report stating that Sysco, Performance Food Group, and U.S. Foods dominate the market. However, it did not provide revenue data or the companies' market shares, which were behind a paywall. Nevertheless, we found this information on a report from Applico Inc., which also stated that Gordon Food Service is among the top food service distributors in the United States along with those listed by Technomic.

The report also provided their closest competitors in the market. After conducting further research, we found additional articles corroborating the fact that Sysco, Performance Food Group, U.S. Foods, and Gordon Food Service are the top food service distributors in the United States. Finally, we searched through the company databases Craft and Zoom Info to verify their revenues and competitors in the industry. Hence, we have confirmed that the companies listed above are the top distributors in the country.

FINDINGS

TOP FOUR FOODSERVICE DISTRIBUTORS (UNITED STATES)

SYSCO CORP
The largest food service distributor in the United States is Sysco Corp. The company's annual revenue is at least $58.7 billion. In 2016, its share of the market in the United States was estimated at 18%.

U.S. FOODS
U.S. Foods serves as the second largest food service distributor in the United States. Its annual revenue is around $22.9 billion. In 2016, the company had a market share of about 8% in the United States.

PERFORMANCE FOOD GROUP
The third largest food service distributor in the United States is Performance Food Group. According to Applico Inc., the company's revenue amounts to approximately $17.6 billion. In 2016, Performance Food Group's share of the market in the United States was 5.8%.

GORDON FOOD SERVICE
With an estimated revenue of $17.4 billion, the fourth largest food service distributor in the United States is Gordon Food Service. In the year 2016, the company had a market share of around 4.3%, as reported by Applico Inc.

Part
02
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Part
02

Top U.S. Foodservice Distributors

The total number of customers for Sysco Corp, US Foods, and Performance Food Group are 600,000, 250,000, and 150,000 respectively. Gordon Food Service is a private company and, therefore, does not provide customer or financial data to the public. Below we have provided our research strategy as well as our findings which can also be found on the attached spreadsheet.

Methodology

In order to provide the customer and revenue information for each of the four food service distributors, we scoured each company's affiliated website and official annual reports and statements. None of the four companies provide information regarding the total number of customers per segment. In addition, US Foods, Performance Food Group, and Gordon Food Service do not list revenue per customer segment publicly. Gordon Food Service was the only company that was private and did not provide an annual report or number of customers publicly.

FOODSERVICE DISTRIBUTORS

SYSCO CORP
According to their annual reports and affiliate website, Sysco Corp has served 600,000 customers; however, they do not provide any further details to the public regarding the type of customers served. From 2017 to 2018 their sales increased by 6.1%, operating income increased by 13.4% and net earnings increased by 25.2%. According to their annual reports, their revenue from restaurants, healthcare and senior living, education and government, food service management and travel, leisure, and retail are 62%, 9%, 9%, 12%, and 8% respectively. This amounts to $36.4 billion, $5.3 billion, $5.3 billion, $7 billion, and $4.7 billion respectively.
US FOODS
According to their annual reports and affiliate website US Foods has served 250,000 customers; however, they do not provide any further details to the public regarding the type of customers served. Their net income for 2018 was $407 million lower than 2017 which was $444 million but still significantly higher than 2016 which was $210 million. Unfortunately, they have not released any additional financial data to the public.
PERFORMANCE FOOD GROUP
According to their annual reports and affiliate website, Performance Food Group has served 150,000 customers; however, they do not provide any further details to the public regarding the type of customers served. For 2018, they have a total case volume growth of 3%, solid net sales growth of more than 5%, a gross profit increase of nearly 8%, and net income grew 59.4%. Unfortunately, they have not released any additional financial data to the public.
GORDON FOOD SERVICE
After scouring their annual reports and affiliate website, we found that Gordon Food Service does not provide any of its customer or revenue data to the public. Their new products are Salted caramel and Everything bagel seasonings, strawberry, peach pear apricot, and four berry 100% fruit smoothie concentrate, Caramel crunch cake, Cinnamon Sugar English Muffin Toast, Non-GMO Honey Crunchy Oats Bread, Non-GMO Whole Wheat Bread, Blueberry Cobbler Muffin Stuffed with Cheesecake, and Cinnamon Streusel Stuffed Muffin with Caramel Filling.
Sources
Sources