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 Headquarters of Sysco in theEnergy Corridor | |
| Company type | Public |
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| Industry | Wholesale |
| Founded | March 19, 1969; 56 years ago (1969-03-19) |
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| Headquarters | , U.S. |
Key people | Kevin Hourican (chairman and CEO) |
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| Total assets |
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Number of employees | 76,000 (2024) |
| Website | sysco |
| Footnotes / references Financials as of June 29, 2024[update].[1] | |
Sysco is an Americanmultinational corporation that sells, markets, and distributes food products to restaurants, healthcare and educational facilities, sports stadiums, and other venues that serve food. It also sells foodservice supplies and equipment. The company is headquartered in theEnergy Corridor district ofHouston,Texas.[2]
Sysco was founded in 1969 by Herbert Irving, John F. Baugh, and Harry Rosenthal. The company became public on March 3, 1970.
Sysco is the world's largest broadline food distributor. As of June 2024, the company has approximately 76,000 employees and serves 730,000 customer locations. It operates 340 distribution centers in 10 countries.[1]Fortune magazine has consistently included Sysco in its annualFortune 500 rankings of the largest companies in the United States based on total revenue.[3] In 2024, Sysco placed 54th in these rankings.[4]
In 1966, Zero Foods owner John Baugh initiated discussions with the leaders of eight other food distribution companies about the prospect of forming one large corporation.[5] The nine companies agreed to terms and formed Sysco in May 1969. At the time of the merger, the total sales of the nine companies were approximately $115 million.[6] In March 1970, Sysco held itsinitial public offering.[7]
Sysco made its first acquisition in 1970, purchasing Arrow Foods Distributor.[8] Between 1970 and 1980, the company continued to grow through the acquisition of 25 small food distributors.[9] It also expanded its trucking fleet and constructed refrigerated warehouses for food storage.[6]
In 1980, Sysco recorded $1.2 billion in annual revenue. The following year, it moved its stock from theAmerican Stock Exchange to theNew York Stock Exchange.[9] In 1985, Sysco was described in aNew York Times report as "the nation's leading food service marketing and distribution company."[10]
In 1988, Sysco achieved nationwide coverage through its acquisition of the food distributorCFS Continental.[11] By 1996, Sysco was the third-largest company inHouston and had over 30,000 employees.[12] Sysco acquired Newport Meat in 1999,[13] which at the time had sales of approximately $100 million per year. This was the company's first acquisition of aCalifornia company.[14] Between 1995 and 2000, Sysco's annual sales increased from $12 billion to $19 billion.[11] In 2002, Sysco expanded into the Canadian market by purchasing SERCA Foodservices for $278 million.[15] SERCA's business was similar to Sysco's, with the Canadian company supplying food products and foodservice supplies to approximately 80,000 customers at the time of the acquisition.[15] The following year, Sysco acquired Asian Foods, which was then the largest Asian food distribution company in North America.[16][6] In 2009, Sysco made its first acquisition outside of North America, buying the Irish food distributor Pallas Foods.[17][18] Further expanding its footprint in Ireland, Sysco purchased the food distributor Crossgar Foodservice for an undisclosed amount in 2012.[19][20] In December 2012, Sysco acquired Appert's Foodservice, Buchy Food Service, Central Seafood Company, and Distagro.[21]
On December 9, 2013, Sysco announced they were planning to acquireUS Foods, their closest competitor, for a total of $3.5 billion.[22][21] However, on June 24, 2015, US Federal JudgeAmit Mehta ruled that the combined Sysco-US Foods would control 75% of the U.S. food service industry and would stifle competition.[23] As a result, on June 29, 2015, Sysco terminated its merger with US Foods.[24]
In February 2016, Sysco announced that it was purchasing theBrakes Group for $3.1 billion.[25] At the time, Brakes was serving about 50,000 restaurants, hotels, and schools across Europe.[26] In October 2017, Sysco acquired HFM FoodService, and later changed its name to Sysco Hawai'i in 2019.[27]
In February 2018, Sysco acquired Doerle Food Services, a Louisiana-based foodservice.[28] In March 2018, Sysco acquired Kent Frozen Foods.[29] In 2020, Sysco acquired a 50% stake in Pacific Star Foodservice.[30]
In May 2021, Sysco acquired Greco and Sons, a distributor of Italian specialty food products.[31] In the September the same year, Sysco acquired Medina Foodservice.[32] In November 2021, FreshPoint, a division of Sysco, acquired Paragon Foods.[33] Later that year, Sysco purchased the fresh produce distributor The Coastal Companies for the purpose of supplementing both its fleet and its specialty produce business.[34] In October 2023, Sysco announced that it was purchasing Edward Don & Company, a food service supplies and equipment distributor.[35][36] This acquisition gave the company additional office and distribution space, as well as the ability to design and build kitchens for its customers.[37]
In December 2023, Sysco Ireland announced plans to acquire Ready Chef Ltd.[38][39]
In October 2024, Sysco acquiredScotland-based meat and fish supplier, Cambell's Prime Meat.[40][41]
Sysco sells and distributes food and non-food products to businesses that serve food, such as restaurants, healthcare facilities, sports stadiums, and schools.[42][43] These goods include ingredients such as meats and produce, as well as frozen foods and prepared meals.[6][44] Sysco also provides its customers with dining room supplies, kitchen equipment, and eating utensils.[43][35]
Within its broader business, Sysco provides customers goods and expertise through its specialty divisions. For example, its FreshPoint division supplies produce to customers.[45] In 2021, Sysco acquired Greco & Sons, an importer and distributor of Italian food products. Greco & Sons operates as an independent division within the company.[46] Sysco offers custom kitchen building for its restaurant customers.[37] The company also aids these customers with tasks such as menu design and the development of marketing campaigns.[43][47]
Sysco owns Sygma, a subsidiary it founded in January 1984.[48] Sygma is a food service supplier specializing in largechain restaurants. As of February 2023, Sygma was operating 15 distribution centers and delivering goods to 13,000 chain franchises throughout the United States.[49]
Since 2009, Sysco has worked with the World Wildlife Fund to set targets on the volume of seafood it procures from sustainable fisheries.[50] In January 2021, Sysco announced plans to increase purchases of sustainable seafood, particularly from fisheries certified by theMarine Stewardship Council and theAquaculture Stewardship Council.[51] Sysco's "One Planet. One Table." assortment of products, which includes approximately 3,000 food items backed by at least one of 20 sustainability certifications and standards, launched in November 2023.[52][53]
In December 2021, Sysco announced its intention to cut its carbon footprint by 27.5% by 2030.[54] In May 2022, Sysco committed to the purchase of 800Freightliner eCascadiaelectric trucks.[55] The first vehicles in this order were delivered in November 2022.[56] In August 2022, Sysco's UK division launched its first electric delivery truck.[57] In April 2023, the company announced the construction of an electric vehicle hub inRiverside, California.[58] As of September 2024, the company operates 130 heavy-duty electric tractors across the US, Canada, Sweden, and the UK.[59][60]
In February 2024, the company's UK division partnered with the foodservice technology firm Nutritics to develop a system that helps food businesses quantify the carbon footprint of the food they serve.[61]
Zero Foods was transformed into Sysco in the late 1960s, when Baugh decided the time was ripe to go national. Rather than battle rivals in other cities, he recruited eight different distributors with the idea of joining him and forming one big company... Baugh initiated the discussions in 1966, and three years later, the far-flung companies cemented their partnership.
Sysco Corp. plans to raise its cash dividend by a penny to 10 cents per share… The dividend increase is the 30th approved since the company's initial public offering in March 1970.
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