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Home > Food and Beverage > Food > Food - General Markets
Food Distributors
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The US wholesale food distribution industry includes about 38,000 companies with combined annual revenue of around $550 billion. Major companies include SYSCO, US Foodservice, SUPERVALU, and McLane Company. The industry is moderately concentrated: the 50 largest distributors hold about 50 percent of the total market.
This industry doesn't include revenue from retail or manufacturing operations.
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 organic, natural, or kosher products or focusing on a geographical area. Average annual revenue per worker for a typical company is $675,000.
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 to various customers; "product specialists," which sell a limited number of products; "market specialists" that sell to a particular type of customer, such as Chinese restaurants; or "system specialists" that sell to a particular kind of customer, such as hotels. Only about 150 large companies are broadline; the remaining wholesalers typically specialize in a specific market. Foodservice customers have surpassed grocery stores as the ...
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