F&D Reports / FDARMS Releases Foodservice Year-End Review

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Annual Report Explores the Changing Landscape of the Foodservice Distribution Channel

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Our annual foodservice review is a must-read for both suppliers and competitors in the industry.

Industry-leading retail financial 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 40 ranking.

A year and a half since the Sysco / US Foods mega-merger was officially terminated, the foodservice industry continues to face an onslaught of challenges. In addition to aggressive pricing competition, foodservice operators must contend with a deflationary food cost environment and a struggling restaurant segment impacted by minimum wage hikes and traffic declines. With organic growth opportunities almost nonexistent during the past year, distributors have been forced to focus on logistical efficiencies and explore other methods for expansion. M&A has been the method of choice for many of the segment’s largest players, as the fragmented market and difficult operating environment has created a very robust acquisition environment heading into 2017.

In addition to the Top 40 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, Services Group of America, Maines Paper and Food Service, Ben E. Keith Company, Shamrock Foods Company and Cheney Bros. The report also details the past year’s most notable industry M&A transactions and an outlook on the challenges for foodservice operators in the coming year.

Commenting on the Foodservice Year-End Review, FDARMS Division President Robert Marzo stated, “The industry remains top heavy, with a few mega players and the less formidable ‘all others.’ Nevertheless, the business is so dispersed that there remains room for most. The issue has always been narrow margins, compounded recently by deflationary pricing pressures. Our Annual Review is an absolute must-read for both suppliers and competitors in the industry; last year’s edition had over 4,000 views.”

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 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.

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Robert Marzo
F&D Reports
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