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    Food Wholesalers Industry Profile

    Report Page Length: 10-12
    Last Quarterly Update: 4/26/2021
    SIC Codes: 5141, 5142, 5143, 5144, 5145, 5146, 5147, 5148, 5149, 5153, 5159
    NAICS Codes: 4244
    Chapters Include:
    Industry Overview Trends & Challenges Industry Forecast
    Quarterly Industry Update Call Prep Questions Website & Media Links
    Business Challenges Financial Information Glossary & Acronyms
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    Excerpt from Food Wholesalers Industry Profile

    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).

    Rising global populations and demand for food are expected to drive growth in the food distribution industry, especially in emerging markets where disposable incomes are growing. Because of the perishability of many of the products they distribute, food wholesalers typically operate within a single country or region.

    The US wholesale food distribution industry includes about 34,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $991 billion.

    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.

    While large distributors are advantaged by bulk purchasing and economies of scale in distribution, their primary competition comes from local and regional distributors. These smaller companies can compete effectively by specializing in certain products or territories, and can gain scale by forming marketing groups and purchasing cooperatives with other area operators.

    Food distributors also face competition from suppliers that sell ...

     
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