Companies in this industry distribute food and related products on a wholesale basis. Major companies include C&S Wholesale Grocers, McLane Company, SUPERVALU, Sysco, and US Foods (all based in the US), as well as Loblaw (Canada), Kokubu & Co (Japan), and Metcash (Australia).
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 distributed by companies in the industry are frozen, processed, and prepared foods; dairy items; poultry, fish, and meat; fresh produce; nonalcoholic beverages; and baked goods.