Food Wholesalers

Food Wholesalers

Brief Excerpt from Industry Overview Chapter:

Companies in this industry distribute food and related products on a wholesale basis. Major companies include C&S Wholesale Grocers, McLane Company, Sysco, United Natural Foods, and US Foods (all based in the US), as well as KOKUBU Group (Japan), Loblaw (Canada), and Metcash (Australia).

COMPETITIVE LANDSCAPE

Barriers to market entry for food distributors are low, and customers can change suppliers and channels easily. Companies must adjust product portfolios to keep pace with consumer trends, such as increasing demand for organic, fat-free, or gluten-free foods. Wholesalers may not be able to pass increased supply, labor, and transport costs on to customers during economic downturns.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include packaged frozen food (about 20%); dairy product (except dried or canned) merchant wholesalers account for about 10%; fresh meat, and fresh fruit and vegetables all account for about 10% each.