Our annual look at the foodservice segment is a top-level industry must-read moving into 2016, as the report recaps what transpired in the current year and identifies expected movement in the new year.
Great Neck, NY (PRWEB) December 21, 2015
Industry-leading credit consulting firm Information Clearinghouse, Inc. (ICI), through its F&D Reports division and sister company FDARMS, has released its Foodservice Year-End Review, which evaluates current trends in the foodservice distribution industry and examines some of the largest players in the sector as presented in its Top 50 ranking.
The $255.00 billion foodservice industry faced a tumultuous year in 2015, particularly as it awaited the conclusion of the proposed Sysco-US Foods merger. With the deal officially terminated in June, the industry breathed a collective sigh of relief — though a number of challenges remain. In addition to intense pricing competition, foodservice operators are faced with expanded government regulations, a deflationary food cost environment, new driver regulations, and competition from alternative sourcing options. Foodservice M&A activity has slowed significantly, with fewer than 10 transactions having closed since the initial Sysco-USF merger announcement; nonetheless, 2016 is likely to bring a new wave of M&A activity, as operators seek ways to expand their footprint amid the slow growth market.
In addition to the annual Top 50 foodservice distributor list based on sales, the Foodservice Year-End Review provides a closer look at significant industry players, including Sysco, US Foods, Performance Food Group, Gordon Food Service, Reinhart Foodservice, Maines Paper and Food Service, Services Group of America, Ben E. Keith Company, Shamrock Foods Company and Cheney Bros.
Commenting on the Foodservice Year-End Review, Lawrence Sarf, CEO of ICI, stated, “We never expected the FTC to allow the 800- and 500-pound gorillas in the room to merge, and the events leading to the termination played out largely as we anticipated. With that center-stage distraction behind us, the issue remains that — whether in first, second or third position — those at the top of the food chain being disproportionately larger than the rest will always allow them the scale to force smaller players into competitive pricing, leaving little to fall to the bottom line. Our annual look at the segment is a top-level industry must-read moving into 2016, as the report recaps what transpired in the current year and identifies expected movement in the new year.”
Information Clearinghouse, Inc. (publisher of F&D Reports, Creditntell, & ARMS) is a leading retail credit consulting firm specializing in the analysis of public and private companies in numerous retail and wholesale segments. The focus of its analysis is to deliver the key intelligence today’s busy credit executive needs to make a highly informed decision without sifting through pages of non-essential data. To learn more, visit our websites at http://www.fdreports.com, http://www.creditntell.com, http://www.fdarms.com.