Sysco

Last updated
Sysco Corporation
Company type Public
Industry Wholesale
FoundedMarch 19, 1969;55 years ago (1969-03-19)
Founder
Headquarters
Houston, Texas
,
U.S.
Key people
Kevin Hourican (CEO)
Ed Shirley, Executive Chairman
Services
  • Food-service
  • Food-away-from-home
Revenue
  • Increase2.svg US$76.324 billion (2023) [1]
  • Increase2.svg US$3.038 billion (2023) [1]
  • Increase2.svg US$1.770 billion (2023) [1]
Total assets
  • Increase2.svg US$22.821 billion (2023) [1]
Total equity
Number of employees
72,000 (2023) [1]
Website sysco.com

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.

Contents

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

In 1981, SYSCO Food Services bought out the assets of Lankford Produce, based in West Pocomoke, Maryland and founded in 1964, by Stanley E. Lankford Jr., forming the Lankford-SYSCO division in the Delmarva Peninsula, renamed Sysco Eastern Maryland in 2008.

In 1988, Sysco acquired CFS Continental which had recently been acquired from Tate & Lyle through their purchase of A. E. Staley in Illinois.

In 1996, Sysco was the third largest company in Houston. It had over 30,000 employees. [8]

In 1999 Sysco acquired Newport Meat Company, which generated a yearly revenue of $100 million supplying meat to over 1,000 restaurants. [9]

In 2002, Sysco purchased SERCA Foodservices and renamed it Sysco Canada. SERCA had been owned by the supermarket giant Oshawa Group, which was acquired by Sobeys in 1998. [10]

In 2003, Sysco purchased Asian Foods, the largest Asian foods distribution in North America. The first group of Asian Foods joined Sysco Kansas City in 2006, followed by Asian Foods Chicago joining Sysco Chicago in Sep, 2009. [11]

In 2009, Sysco acquired Pallas Foods, the largest food distributor in Ireland. Continuing the expansion of their Irish offerings, in 2012, Sysco purchased Crossgar Foodservice for an undisclosed amount. [12]

On December 9, 2013, Sysco announced they would acquire US Foods for a total of $3.5 billion. [13] But 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. [14] On June 29, 2015, Sysco terminated its merger with US Foods. [15] [16]

Sysco truck docked at Duke University 2008-07-24 International truck docked at Duke Hospital South 2.jpg
Sysco truck docked at Duke University

In May 2022, after a year of testing, Sysco committed to the purchase of Freightliner eCascadia electric trucks, with the goal of electrifying 35% of its fleet by 2026. [17]

Subsidiaries

The SYGMA Network, Inc. is a wholly owned subsidiary of Sysco that provides food and non-food products to chain restaurants throughout the United States.

SYGMA was founded in January 1984, when senior officers of Sysco Corporation started discussions for forming a new distribution company. The first products were shipped in May 1985, from SYGMA's first distribution center in Oklahoma. In 1988, Sysco acquired CFS, increasing head count at the organization.

SYGMA's customers include approximately 14,000 restaurants representing 26 concepts. Operating from 14 distribution centers, SYGMA is one of the largest chain distributors in the United States with sales over $6.7 billion. 186 million cases of product are delivered each year. SYGMA currently employs over 4,000 employees.

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References

  1. 1 2 3 4 5 6 "Sysco Corporation 2023 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. January 2024. Retrieved 28 February 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. 1 2 "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. ↑ 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.
  9. ↑ "CBS News/LOS ANGELES TIMES California Primary Day Survey, 1978". ICPSR Data Holdings. 1984-05-08. doi:10.3886/icpsr07816 . Retrieved 2020-09-02.
  10. ↑ "SYSCO TO ACQUIRE SERCA, CANADIAN NATIONAL BROADLINER, (USD$1.4-BILLION)". Restaurant Business. 5 December 2001. Retrieved 29 December 2020.
  11. ↑ "Asian Foods bought by Sysco". bizjournals. 12 November 2002. Retrieved 29 December 2020.
  12. ↑ Jones, Kristin. "Sysco Buys Crossgar Foodservice, Pushing Irish Expansion". Wall Street Journal. Archived from the original on June 17, 2012. Retrieved 15 June 2012.
  13. ↑ Corporation, Sysco (2013-12-09). "Sysco and US Foods Agree to Merge, Creating a World-Class Foodservice Company". GlobeNewswire News Room (Press release). Retrieved 2020-07-08.
  14. ↑ Kendall, Brent (2015-06-29). "Judge Explains Reasons for Blocking Sysco-US Foods Merger". Wall Street Journal. ISSN   0099-9660 . Retrieved 2020-07-08.
  15. ↑ "Sysco Cancels $8.2 Billion US Foods Takeover In Big Antitrust Win For FTC". Forbes. June 29, 2015.
  16. ↑ "Sysco Terminates Merger Agreement with US Foods" (Press release). June 29, 2015.
  17. ↑ Hanley, Steve (2022-05-23). "More Electric Semi Trucks Coming To US & Europe". CleanTechnica. Retrieved 2022-07-24.
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