Brianna ParkerSysco (Systems and Services Company) is a multinational marketing and distribution corporation based in Houston, Texas. Herbert Irving, John F. Baugh, and Harry Rosenthal founded the company in 1969. In March 1970, Sysco went public through an IPO. The company markets, sells, and distributes food products to restaurants, healthcare facilities, educational institutions, lodging establishments, and other food service businesses. It also offers small wares, kitchen equipment, and tabletop items to the food service and hospitality industries. In July 2023, Sysco employed over 71,000 people and operated 333 distribution facilities globally. [1]
Sysco is one of the world’s largest broad-line food distributors. The company expanded its portfolio through strategic acquisitions, including CFS Continental, Newport Meat, SERCA, Asian Foods, Pallas, and Crossgar. Sysco’s subsidiary SYGMA Network distributes food and non-food products to over 14,000 chain restaurants.
In Q4 2023, cyber attackers who stole sensitive business, customer, and employee data breached Sysco. However, the cybersecurity incident did not disrupt Sysco’s business operations and customer service. As of May 2023, Sysco served around 700,000 locations. The company faces stiff competition from US Foods, PFG, McLane, Gordon Foods, H. T. Hackney, KeHE, and Reyes Holding. [2]
Here is an in-depth analysis of Sysco’s top competitors and alternatives:
1. US Foods
Year founded: 1989
Headquarter: Rosemont, Illinois
US Foods is a well-known food service distributor in the US. The company serves around 250,000 restaurants and food service operators. As of August 2023, US Foods had 29,000 employees and operated 70 broad-line locations and over 85 cash-and-carry stores. [3]
US Foods provides a comprehensive suite of e-commerce, technology, and business solutions to deliver the best customer experience. In 2023, US Foods acquired Renzi to expand its presence in upstate New York. The company seeks to purchase more distributors to capture untapped markets. US Foods is the top Sysco competitor and alternative. [4]
2. Performance Food Group (PFG)
Year founded: 1885
Headquarter: Richmond, Virginia
PFG is one of North America’s largest food and food-service distribution companies. The company delivers products to over 300,000 locations, including restaurants, businesses, educational institutions, healthcare facilities, big box retailers, theaters, and convenience stores. As of June 2023, PFG had over 35,000 employees and operated over 150 distribution centers.
PFG focused on sales and profit growth and expansion since its IPO in 2015 through strategic mergers and acquisitions. In June 2023, PFG climbed to No. 91 on the Fortune 500 list. It is now a Fortune 100 company and the highest-ranked business in Richmond, Virginia, making PFG a fast-growing competitor for Sysco. [5]
3. McLane Company
Year founded: 1894
Headquarter: Temple, Texas
McLane is an American food and beverage distributor and a wholly-owned Berkshire Hathaway subsidiary. The company operates around 80 distribution centers across the US. As of August 2023, McLane employed over 25,000 people.
McLane buys, sells, and delivers high-quality food products to convenience stores, mass merchants, and chain restaurants. In August 2023, the company unveiled McLane Fresh at its national trade show in Dallas. This expanded service is part of McLane’s retail program and caters to convenience stores. As a subsidiary of Berkshire Hathaway, McLane has enough resources to compete and poach some customers from Sysco. [6]
4. Gordon Food Service (GFS)
Year founded: 1897
Headquarter: Grand Rapids, Michigan
GFS is a family-owned business specializing in food distribution. It started as a butter-and-egg delivery service in Wyoming, Michigan, and expanded to become one of America’s largest food distributors. As of March 2023, GFS operated over 175 stores in 13 states.
GFS operates in the US and Canada and is North America’s largest family-owned broadline food distribution company. In March 2023, GFS announced plans to open six new stores in Houston. The company already has two distribution centers in Texas. Gordon Food Service is one of the fastest-growing competitors for Sysco. [7]
5. The HT Hackney Co.
Year founded: 1891
Headquarter: Knoxville, Tennessee
HT Hackney is an American wholesale grocery distribution company. The company serves 20,000 customers in 22 states. In September 2023, HT Hackney stocked over 25,000 products. [8]
HT Hackney and Sysco are leading food distributors, but HT Hackney specializes in convenience store distribution. The company offers a diverse product selection to ensure customers fulfill all their store needs from a single reliable source. HT Hackney is a worthy alternative to Sysco.
6. KeHE Distributors
Year founded: 1953
Headquarter: Naperville, Illinois
KeHE is a world-leading natural and organic food distributor. The company serves over 30,000 food stores, chain and independent grocers, and e-commerce retailers across North America. As of June 2023, KeHE had 6,800 employees.
KeHE operates 19 distribution centers with 7 million square feet of warehouse space. In June 2023, KeHE acquired DPI Specialty Foods, a leading distributor in the Western US region. The acquisition expands KeHE’s capabilities to over 31,000 customers, over 80,000 SKUs, and 6,100 suppliers. KeHE is one of the best alternatives to Sysco for natural and organic food retailers. [9]
7. Reyes Holdings
Year founded: 1976
Headquarter: Rosemont, Illinois
Reyes Holdings is an American food wholesaler, beverage distributor, and bottler. The company serves customers in North, Central, and South America, Europe, the Middle East, and Asia Pacific. In September 2023, Reyes Holdings had 36,000 employees and operated 209 facilities.
Reyes Holdings owns Reyes Beverage Group, America’s largest beer distributor, and provides food distribution through subsidiaries. In March 2023, the company acquired a 481,500-square-foot distribution warehouse in North Richmond for $100 million. Reyes Holdings is one of the top competitors for Sysco. [10]
8. Ben E. Keith Foods
Year founded: 1906
Headquarter: Fort Worth, Texas
Ben E. Keith Foods is a family-owned premier food distributor. The company delivers food and beverage products to customers in the southern US. In 2022, Ben E. Keith Foods had over 14,000 customers and operated 11 distribution centers.
Ben E. Keith Foods serves restaurants, regional food chain stores, and institutions. In June 2023, the company acquired Orrell’s Food Service Inc. and all its assets, including JEM Foods Inc. and a 106,000-square-foot distribution center. This acquisition expands Ben E. Keith Foods’ market presence into North Carolina, increasing its competitive advantage over Sysco. [11]
9. Shamrock Foods
Year founded: 1922
Headquarter: Phoenix, Arizona
Shamrock Foods is a leading family-owned food supplier. The company offers high-quality food products and business expertise to restaurants across Western US. In July 2023, Shamrock Foods announced plans to open a 28,190-square-foot food warehouse in Louisville. [12]
Shamrock Foods and Sysco offer food-service distribution, but Shamrock Foods focuses on restaurants. In September 2023, the company selected CMX1 to streamline its policy and activity management processes. CMX1’s expertise and cloud-based solutions will help Shamrock Foods improve product quality and safety. Shamrock Foods is one of the best alternatives to Sysco for restaurant operators. [13]
10. SpartanNash
Year founded: 1917
Headquarter: Grand Rapids, Michigan
SpartanNash is a leading food distributor and grocery retailer. It was founded after Spartan Stores merged with Nash Finch Company. In August 2023, SpartanNash had 17,500 employees and 18 distribution centers.
SpartanNash serves independent and chain grocers, retail brands, e-commerce platforms, and US military bases. As of August 2023, the company operated 144 brick-and-mortar grocery stores under Family Fare, Martin’s Super Markets, and D&W Fresh Market. SpartanNash is a worthy alternative to Sysco. [14]
11. United Natural Foods Inc. (UNFI)
Year founded: 1976
Headquarter: Providence, Rhode Island
UNFI is a premier grocery wholesaler and North America’s largest full-service grocery partner. In September 2023, UNFI delivered products to over 30,000 locations across North America. [15]
UNFI and Sysco offer food-service distribution, but UNFI also provides segmented marketing expertise and value-added services for customers and suppliers to build their businesses and brands. This portfolio includes proprietary technology, data, shelf management, and market insights. UNFI is one of the top competitors for Sysco in the grocery distribution sector.
12. C&S Wholesale Grocers
Year founded: 1918
Headquarter: Keene, New Hampshire
C&S is a grocery wholesale supplier and an industry leader in supply chain solutions. The company stocks and distributes over 100,000 unique food products. As of September 2023, C&S served over 7,500 supermarkets, chain stores, military bases, and institutions.
C&S operates 50 distribution centers in 16 states. In September 2023, C&S agreed to purchase 413 stores, eight distribution centers, and two offices from Kroger and Albertsons. The deal includes QFC, Mariano’s, and Carr’s brands, five private labels, and exclusive licensing rights in Arizona, California, Colorado, and Wyoming. This acquisition increases C&S Wholesale Grocers’ competitive advantage over Sysco. [16]
13. Cheney Brothers
Year founded: 1925
Headquarter: Riviera Beach, Florida
Cheney Brothers is a family-owned business specializing in food distribution. The company stocks over 50,000 items and operates 13 distribution facilities. In 2020, Cheney Brothers partnered with Green Life Farms to provide high-quality products to its 5,000 customers. [17]
Cheney Brothers is one of the leading food-service distributors in Southeast US. The company serves restaurants, hotels, country clubs, and institutions. In April 2023, Cheney Brothers invested $66 million to establish a new food distribution center in Florence that will create 280 jobs. Cheney Brothers is one of the alternatives to Sysco in the Southeast US. [18]
14. Farmer Brothers Co.
Year founded: 1912
Headquarter: Northlake, Texas
Farmer Brothers is a food-service company specializing in coffee and tea distribution. The company also offers cappuccino, spices, biscuit mixes, and equipment used by restaurants and other food establishments. In 2022, Farmer Brothers had over 1,800 employees and operated 117 locations.
Farmer Brothers is best known as a national coffee roaster and wholesaler. It serves chain stores, restaurants, hotels, casinos, healthcare facilities, gourmet coffee houses, and grocers. In August 2023, TreeHouse Foods Inc. acquired Farmer Brothers’ non-direct store delivery coffee business and facility in Northlake, Texas, for around $100 million. The company will now be able to focus on growing its direct-store delivery channels. Farmer Brothers is one of the best alternatives to Sysco for coffee and tea distribution. [19]
15. The Martin-Brower Company
Year founded: 1934
Headquarter: Des Plaines, Illinois
Martin-Brower is a food distributor and supply chain management solution provider. Reyes Holdings owns the company and caters to quick-service restaurants. In July 2022, Martin-Brower acquired Keystone Foods’ distribution and logistics businesses. [20]
Martin-Brower offers food-service distribution, fulfillment, inventory management, financial modeling, warehousing, and product-sourcing services. In May 2023, the company updated its logo and brand identity to reflect its new strategic direction. Martin-Brower is a worthy competitor for Sysco. [21]
References & more information
- Sysco Corporation (2023, Jul 11). Sysco Releases Fourth Quarter and Fiscal Year 2023 Financial Results. Globe Newswire
- Gatlan, S. (2023, May 9). Food distribution giant Sysco warns of data breach after cyberattack. Bleeping Computer
- US Foods Holding Corp. (2023, Aug 10). US Foods Reports Record Second Quarter Fiscal Year 2023 Earnings. Yahoo Finance
- Bloomberg Staff (2023, Jul 13). US Foods is on the hunt for deals. Chicago Business
- Performance Food Group Company (2023, Jun 7). Performance Food Group Company Climbs to No. 91 in 2023 Fortune 500 Rankings. Stock Titan
- McLane Company (2023, Aug, 30). McLane Unveils McLane Fresh, Elevating Food Service at Retail. PRNewswire
- Gordon Food Service (2023, Mar 13). Gordon Food Service announces Texas expansion with six new Houston area stores. PRNewswire
- Kaival Brands Innovations Group, Inc. (2023, Sep 14). Kaival Brands Announces Bulk Order for BIDI Sticks from H.T. Hackney. Bloomberg
- KeHE Distributors (2023, Jun 20). KeHE Distributors Completes Acquisition of DPI Specialty Foods. Globe Newswire
- Bartholomew, D. (2023, Mar 28). Reyes Holdings pays $100M for the North Richmond warehouse. The Real Deal
- Industry News (2023, Jun 2). Ben E. Keith Foods acquires Orrell’s Food Service. Provisioner Online
- High, L. (2023, Jul 27). Shamrock confirms Louisville food warehouse. Daily Camera
- CMX1 Staff (2023, Sep 25). Shamrock Foods launches strategic partnership with industry-leading enterprise quality and risk management provider CMX1. CMX1.com
- SpartanNash (2023, Aug 17). SpartanNash Announces Second Quarter Fiscal 2023 Results. PRNewswire
- United Natural Foods, Inc. (2023, Sep 26). United Natural Foods Inc Reports Fourth Quarter and Full Year Fiscal 2023 Results. Business Wire
- C&S Wholesale Grocers, Inc. (2023, Sep 8). C&S Wholesale Grocers enters into a definitive agreement to purchase 413 stores available from the Kroger and Albertsons merger. PRNewswire
- Green Life Farms (2022, Feb 28). Green Life Farms Expands Sales to 5,000 New Customers Through Cheney Brothers Partnership. Business Wire
- Rome, A. (2023, Apr 21). Cheney Brothers, Inc. to open a distribution center in Florence. WPDE
- Schroeder, E. (2023, Aug 6). TreeHouse acquires direct ship coffee business. Food Business News
- Martin-Brower Company (2022, Jul 18). Martin-Brower acquired the Foods Distribution and Logistics Businesses of Keystone Foods LLC from Marfrig Global Foods. Market Screener
- Martin-Brower Company (2023, May 15). Exciting Updates to the Martin-Brower Brand. ReyesHolding.com
- Featured Image by Megan Thomas
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