Food Wholesalers

First Research, Inc.
November 10, 2014
10 Pages - SKU: FRRS5378275
Countries covered: United States

Food Wholesalers

Brief Excerpt from Industry Overview Chapter:

Companies in this industry distribute food and related products on a wholesale basis. Major companies include C&S Wholesale Grocers, McLane Company, SUPERVALU, and Sysco (all based in the US), as well as Loblaw (Canada), Kokubu & Co (Japan), and Metcash (Australia).

Rising global populations and demand for food are expected to drive growth in the food distribution industry, especially in emerging markets. Distributors are expected to benefit from a trend among food manufacturers toward outsourcing of logistics services, according to Frost & Sullivan.

The US wholesale food distribution industry includes about 34,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $780 billion.

COMPETITIVE LANDSCAPE

Demand is driven largely by demographic shifts, particularly trends in population and age, working women, race and ethnicity, household size, and levels of disposable income. The profitability of individual companies depends on a good product mix and efficient operations. Large distributors are advantaged by bulk purchasing and economies of scale in distribution. Smaller companies can compete effectively by specializing in certain products or focusing on a geographical area. The US industry is concentrated: the 50 largest companies generate about 50 percent of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are frozen, processed, and prepared foods; dairy items; poultry, fish, and meat; fresh produce; and baked goods.

Distributors are classified as "broadline," meaning that they sell a comprehensive range of products to multiple customer segments; "specialty distributors," which focus on a certain...



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