Sysco US Foods Merger Stalled. Sued by FTC.

FTC and 10 states sue to prevent Sysco US Foods Merger…

Those of us in the foodservice industry were originally surprised by the announced acquisition of US Foods by Sysco, however as the year progressed many assumed it was a “done deal.”   Not so, says the Federal Trade Commission.    Sysco’s promised divesture of 11 distribution facilities to Performance Food Group, as reported earlier in the month, apparently did not alleviate concerns that Sysco would control 75% of broad-line distribution resulting in increased pricing.  Sysco argues that due to many localized distribution options, they would only handle 30% of the foodservice distribution volume and efficiencies would be improved resulting in lower pricing.   This author does not have a crystal ball regarding pricing to operators, however manufacturers would certainly feel the pressure from a stronger Sysco with limited other national distribution options.   Stay Tuned.

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Online Advertising with Foodservice Director & Restaurant Business

Latest online Foodservice Rewards ads targeted to operators…

While the message remains the same  to operators – Foodservice Rewards is free to join and easy to participate in – much of the former print advertising has moved online with our Foodservice Director and Restaurant Business partnership.  The goal is to remind existing members to enter codes and to engage new operators to join.  Note the use of our branded sponsor logos to draw attention.  Below is an example of the online ads currently running.

 

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