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Sysco

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"SYY" redirects here. The term may also refer to the IATA airport code forStornoway Airport.
This article is about the American food-service company. For the Canadian Crown corporation, seeSydney Steel Corporation.
Not to be confused withCiscoorSisqó.
Sysco Corporation
Company typePublic
IndustryWholesale
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
  • IncreaseUS$3.038 billion (2023)[1]
  • IncreaseUS$1.770 billion (2023)[1]
Total assets
  • IncreaseUS$22.821 billion (2023)[1]
Total equity
Number of employees
72,000 (2023)[1]
Websitesysco.com

Sysco Corporation(short forSystems and Services Company) is an Americanmultinational corporationinvolved 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 providefoodservice(likeAramarkandSodexo). The company is headquartered in theEnergy Corridordistrict ofHouston,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.

The company was founded in 1969 byHerbert Irving,John F. Baugh, and Harry Rosenthal.[3]The company became public on March 3, 1970. On July 20, 2009,Fortunemagazine ranked Sysco No. 204 in the annualFortune 500companies in world based on sales volume. On May 3, 2010,Fortuneranked 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 (behindAT&TandDell).[4]The company ranked No. 54 in the 2018Fortune 500list 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]TheFederal Trade Commissionchallenged the acquisition as a violation of theClayton Antitrust Actthat 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[edit]

In 1969, John Baugh, led the merger of nine small food distributors to form SYSCO.[8]The company went public in 1970.[9]

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

In 1988, Sysco acquiredCFS Continentalwhich had recently been acquired fromTate & Lylethrough their purchase ofA. E. Staleyin Illinois.

In 1996, Sysco was the third largest company inHouston.It had over 30,000 employees.[10]

In May 2022, after a year of testing, Sysco committed to the purchase ofFreightlinereCascadiaelectric trucks,with the goal of electrifying 35% of its fleet by 2026.[11]

Acquisitions[edit]

In 1999 Sysco acquiredNewport Meat Company,which generated a yearly revenue of $100 million supplying meat to over 1,000 restaurants.[12]

In 2002, Sysco purchasedSERCA Foodservicesand renamed it Sysco Canada. SERCA had been owned by the supermarket giantOshawa Group,which was acquired bySobeysin 1998.[13]

In 2003, Sysco purchasedAsian 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.[14]

In 2009, Sysco acquiredPallas Foods,the largest food distributor in Ireland. Continuing the expansion of their Irish offerings, in 2012, Sysco purchased Crossgar Foodservice for an undisclosed amount.[15]

On December 9, 2013, Sysco announced they would acquireUS Foodsfor a total of $3.5 billion.[16]But on June 24, 2015, US Federal JudgeAmit Mehtaruled that the combined Sysco-US Foods would control 75% of the U.S. food service industry and would stifle competition.[17]On June 29, 2015, Sysco terminated its merger with US Foods.[18][19]

Sysco truck docked atDuke University

Subsidiaries[edit]

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.

References[edit]

  1. ^abcdef"Sysco Corporation 2023 Annual Report (Form 10-K)".sec.gov.U.S. Securities and Exchange Commission.January 2024.Retrieved28 February2024.
  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.Archivedfrom the original on October 31, 2020.RetrievedMarch 17,2024.
  4. ^ab"Fortune 500 2010: States: Texas Companies".CNN.
  5. ^"Fortune 500 Companies 2018: Who Made the List".Fortune.Retrieved2018-11-10.
  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.RetrievedOctober 1,2015.
  8. ^TBH, Team (2022-12-08)."The Glorious History Of SYSCO Corporation".The Brand Hopper.Retrieved2024-05-15.
  9. ^Association, Texas State Historical."Sysco".Texas State Historical Association.Retrieved2024-05-15.
  10. ^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.
  11. ^Hanley, Steve (2022-05-23)."More Electric Semi Trucks Coming To US & Europe".CleanTechnica.Retrieved2022-07-24.
  12. ^"CBS News/LOS ANGELES TIMES California Primary Day Survey, 1978".ICPSR Data Holdings.1984-05-08.doi:10.3886/icpsr07816.Retrieved2020-09-02.
  13. ^"SYSCO TO ACQUIRE SERCA, CANADIAN NATIONAL BROADLINER, (USD$1.4-BILLION)".Restaurant Business.5 December 2001.Retrieved29 December2020.
  14. ^"Asian Foods bought by Sysco".bizjournals.12 November 2002.Retrieved29 December2020.
  15. ^Jones, Kristin."Sysco Buys Crossgar Foodservice, Pushing Irish Expansion".Wall Street Journal.Archived fromthe originalon June 17, 2012.Retrieved15 June2012.
  16. ^"Sysco Acquires Four Foodservice Businesses".Restaurant Business.10 January 2013.Retrieved2024-05-15.
  17. ^Kendall, Brent (2015-06-29)."Judge Explains Reasons for Blocking Sysco-US Foods Merger".Wall Street Journal.ISSN0099-9660.Retrieved2020-07-08.
  18. ^"Sysco Cancels $8.2 Billion US Foods Takeover In Big Antitrust Win For FTC".Forbes.June 29, 2015.
  19. ^"Sysco Terminates Merger Agreement with US Foods"(Press release). June 29, 2015.

External links[edit]

Wikimedia Commons has media related toSysco.
  • Official website
  • Business data for Sysco:
  • Asian Foods Inc.
  • BusinessWeek 50 ranking and analysis of Sysco
  • The SYGMA Network, Inc.
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