Sysco Corporation, acting through its subsidiaries and divisions, is the largest
North American distributor of food and related products primarily to the foodservice
or "food-prepared-away-from-home" industry. Founded in 1969, SYSCO provides
its products and services to approximately 400,000 customers, including restaurants,
healthcare and educational facilities, lodging establishments and other foodservice
customers.
SYSCO, which was formed when the stockholders of nine companies exchanged their
stock for SYSCO common stock, commenced operations in March 1970.
The foodservice industry consists of two major customer types -- "traditional"
and "chain restaurant." Traditional foodservice customers include
restaurants, hospitals, schools, hotels and industrial caterers. SYSCO's chain
restaurant customers include regional and national hamburger, sandwich, pizza,
chicken, steak and other chain operations.
Services to the company's traditional foodservice and chain restaurant customers
are supported by similar physical facilities, vehicles, materials handling equipment
and techniques, and administrative and operating staffs.
Products distributed by the company include a full line of frozen foods, such
as meats, fully prepared entrees, fruits, vegetables and desserts, and a full
line of canned and dry foods, fresh meats, imported specialties and fresh produce.
The company also supplies a wide variety of non-food items, including paper
products such as disposable napkins, plates and cups; tableware such as china
and silverware; restaurant and kitchen equipment and supplies; and cleaning
supplies. SYSCO's operating companies distribute both nationally-branded merchandise
and products packaged under SYSCO's private brands.
The company believes that prompt and accurate delivery of orders, close contact
with customers and the ability to provide a full array of products and services
to assist customers in their foodservice operations are of primary importance
in the marketing and distribution of products to traditional customers. SYSCO's
operating companies offer daily delivery to certain customer locations and have
the capability of delivering special orders on short notice.
Through the more than 13,500 sales and marketing representatives and support
staff of SYSCO and its operating companies, SYSCO stays informed of the needs
of its customers and acquaints them with new products and services. SYSCO's
operating companies also provide ancillary services relating to foodservice
distribution such as providing customers with product usage reports and other
data, menu-planning advice, food safety training and assistance in inventory
control, as well as access to various third party services designed to add value
to our customers' businesses.
COMPETITION
The business of SYSCO is competitive with numerous companies engaged in foodservice
distribution. While competition is encountered primarily from local and regional
distributors, a few companies compete with SYSCO on a national basis. The company
believes that, although price and customer contact are important considerations,
the principal competitive factor in the foodservice industry is the ability
to deliver a wide range of quality products and related services on a timely
and dependable basis.
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