Sysco Corporation, through its subsidiaries, operates as a distributor of food and related products primarily to the foodservice or food-away-from-home industry in North America. The company provides products and related services to approximately 425,000 customers, including restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers. Segments The company operates through two segments, Broadline and SYGMA. The company’s Broadline segment distributes a line of food products and various non-food products to their customers. The company’s SYGMA segment distributes a line of food products and various non-food products to chain restaurant customer locations. The company’s other segments include its specialty produce companies, custom-cut meat companies, lodging industry products companies, a company that distributes specialty imported products, a company that distributes to international customers and the company’s Sysco Ventures platform, a suite of technology solutions that help support the business needs of the company’s customers. Specialty produce companies distribute fresh produce, and on a limited basis, other foodservice products. The company’s specialty meat companies distribute custom-cut fresh steaks, other meat, seafood and poultry. The company’s lodging industry products companies distribute personal care guest amenities, equipment, housekeeping supplies, room accessories and textiles to the lodging industry. Customers and Products The company’s customers in the foodservice industry include restaurants, hospitals and nursing homes, schools and colleges, hotels and motels, industrial caterers and other similar venues where foodservice products are served. Services to the company’s customers are supported by similar physical facilities, vehicles, material handling equipment and techniques, and administrative and operating staffs. The products that the company distributes include a line of frozen foods, such as meats, seafood, fully prepared entrees, fruits, vegetables and desserts; a line of canned and dry foods; fresh meats and seafood; dairy products; beverage products; imported specialties; and fresh produce. The company also supplies various non-food items, including paper products, such as disposable napkins, plates and cups; tableware, such as china and silverware; cookware, such as pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company’s distribution centers, which it refers to as operating companies, distribute nationally-branded merchandise, as well as products packaged under its private brands. The company’s operating companies also provide ancillary services relating to foodservice distribution, such as providing customers with product usage reports and other data, menu-planning advice, food safety training and assistance in inventory control, as well as access to various third party services designed to add value to its customers’ businesses. Trademarks The company has various trademarks that are of significant importance, including the SYSCO trademark and its privately-branded product trademarks that include the SYSCO trademark. The company’s U.S. trademarks are effective for a 10-year period. Acquisition of Brakes Group In February 2016, the company entered into a share sale and purchase agreement (the Purchase Agreement) to acquire Cucina Lux Investments Limited, the parent holding company of the Brakes Group (the Brakes Acquisition). On July 5, 2016, following the end of fiscal year 2016, the company closed the Brakes Acquisition. Government Regulation In the U.S., as a marketer and distributor of food products, the company is subject to the Federal Food, Drug and Cosmetic Act and regulations promulgated thereunder by the U.S. Food and Drug Administration. For certain product lines, the company is also subject to the Federal Meat Inspection Act, the Poultry Products Inspection Act, the Perishable Agricultural Commodities Act, the Packers and Stockyard Act, and regulations promulgated by the U.S. Department of Agriculture to interpret and implement these statutory provisions. The company is also subject to the Public Health Security and Bioterrorism Preparedness and Response Act of 2002, which imposes certain registration and record keeping requirements on facilities that manufacture, process, pack or hold food for human or animal consumption. The company’s facilities are subject to regulations issued pursuant to the U.S. Occupational Safety and Health Act by the U.S. Department of Labor. The company is also subject to regulation by various federal, state and local regulatory agencies, including but not limited to, the U.S. Department of Labor, which sets employment practice standards for workers; and the U.S. Department of Transportation, which regulates transportation of perishable and hazardous materials and waste, and similar state, provincial and local agencies. In addition, the company is subject to the U.S. False Claims Act, and similar state statutes, which prohibit the submission of claims for payment to the government that are false and the knowing retention of overpayments. The U.S. Foreign Corrupt Practices Act also requires the company to keep accurate books and records and to maintain internal accounting controls to detect and prevent bribery and to ensure that transactions are properly authorized. History Sysco Corporation was founded in 1969.
sysco corp (SYY:New York)
1390 Enclave Parkway
Houston, TX 77077
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