About Sysco Corp

Sysco Corporation (Sysco) operates as a global distributor of food and related products primarily to the foodservice or food-away-from-home industry. The company provided products and related services to approximately 725,000 customer locations, including restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers during the year ended July 1, 2023 (fiscal 2023). Segments Sysco distributes food and related products to restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers. The company’s primary operations are in North America and Europe. U.S. Foodservice Operations This segment primarily includes the company’s U.S. Broadline operations, which distribute a full line of food products, including custom-cut meat, seafood, produce, specialty Italian, specialty imports and a wide variety of non-food products; and the company’s U.S. Specialty operations, which include the company’s FreshPoint fresh produce distribution business, the company’s Specialty Meats and Seafood Group specialty protein operations, the company’s growing Italian Specialty platform anchored by Greco & Sons, the company’s Asian specialty distribution company and a number of other small specialty businesses that are not material to the operations of Sysco. International Foodservice Operations This segment includes operations outside of the United States (U.S.), which distributes a full line of food products and a wide variety of non-food products. The Americas primarily consists of operations in Canada, Bahamas, Mexico, Costa Rica, and Panama, as well as the company’s export operations that distribute to international customers. The company’s European operations primarily consist of operations in the United Kingdom (U.K.), France, Ireland, and Sweden. SYGMA This segment includes the company’s U.S. customized distribution operations serving quick-service chain restaurant customer locations. Other This segment primarily includes the company’s hotel supply operations, Guest Worldwide. Foodservice operating sites distribute a full line of food products and a wide variety of non-food products to both independent and chain restaurant customers, hospitals, schools, hotels, industrial caterers and other venues where foodservice products are served. SYGMA operating sites distribute a full line of food products and a wide variety of non-food products to certain chain restaurant customer locations. Customers and Products Sysco’s customers in the foodservice industry include restaurants, hospitals and skilled nursing facilities, schools and colleges, hotels and motels, industrial caterers and other similar venues where foodservice products are served. The products the company distributes include frozen foods, such as meats, seafood, fully prepared entrees, fruits, vegetables and desserts; canned and dry foods; fresh meats and seafood; dairy products; beverage products; imported specialties; and fresh produce. The company also supplies a wide variety of non-food items, including paper products, such as disposable napkins, plates and cups; tableware, such as glassware and silverware; cookware, such as pots, pans and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company’s distribution centers, which the company refers to as operating sites, distribute branded merchandise, as well as products packaged under the company’s private brands. Products packaged under the company’s private brands have been manufactured for Sysco according to specifications that have been developed by the company’s quality assurance team. In addition, the company’s quality assurance team certifies the manufacturing and processing plants where these products are packaged, enforces the company’s quality control standards and identifies supply sources that satisfy the company’s requirements. The company also provides 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. Additionally, the company provides access to various third-party services designed to add value to the company’s customers’ businesses. The company estimates that sales to its customers in the food service management (FSM) sector, which include large customers that service cafeterias in institutions, such as universities, hospitals, and sporting venues, accounted for 7% of sales in fiscal 2023. 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 (FDA). 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 (USDA) 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 Food Safety Modernization Act (FSMA) has significantly expanded the company’s food safety requirements. 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 the National Labor Relations Act, which governs the process for collective bargaining between employers and employees and protects the rights of both employers and employees in the workplace. The company’s processing and distribution facilities must be registered with the FDA biennially and are subject to periodic government agency inspections by the FDA and USDA. The company’s facilities are generally inspected at least annually by federal and/or state authorities. The company also must comply with Federal Trade Commission standards with respect to any claims made about the company’s food products in advertising and marketing materials. The company’s customers include several departments of the federal government, including the Department of Defense and Department of Veterans Affairs facilities, as well as certain state and local entities. These customer relationships subject the company to additional regulations applicable to government contractors. The company is also subject to regulation by numerous federal, state and local regulatory agencies, including but not limited to, the U.S. Department of Labor, which sets employment practice standards for workers. The company is also subject to regulations by the U.S. Department of Transportation, as well as its agencies, the Surface Transportation Board, the Federal Highway Administration, the Federal Motor Carrier Safety Administration, and the National Highway Traffic Safety Administration, which collectively regulate the company’s trucking operations through the regulation of operations, safety, insurance and hazardous materials. The company must comply with the safety and fitness regulations promulgated by the Federal Motor Carrier Safety Administration, including those relating to drug and alcohol testing and hours-of service. Such matters as weight and dimension of equipment also fall under federal and state regulations. The company is subject to regulations of the Federal Aviation Administration covering items transported by air. In addition, the company is subject to the federal False Claims Act, and similar state statutes, which prohibit knowingly presenting, or causing to be presented, a false or fraudulent claim for payment to the government and the knowing and improper retention of overpayments. The U.S. Foreign Corrupt Practices Act (FCPA) prohibits bribery of public officials to obtain or retain business in foreign jurisdictions. The FCPA 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 and recorded. The company has implemented and continues to develop an anti-corruption compliance program applicable to the company’s global operations intended to detect and prevent bribery and to comply with these and other anti-corruption laws in countries where the company operates. The company’s business is subject to competition laws in the various jurisdictions where the company operates, including the Sherman Antitrust Act and related federal and state antitrust laws in the U.S. These laws and regulations generally prohibit competitors from fixing prices, boycotting competitors, or engaging in other conduct that unreasonably restrains competition. The company is subject to privacy laws in the EU, including the General Data Protection Regulation (GDPR), which requires companies to meet certain requirements regarding the handling of personal data. In addition, the company’s business is subject to the U.K. Modern Slavery Act 2015, which requires certain companies that operate in the U.K. to prepare a report describing steps that they have taken to ensure that slavery and human trafficking is not taking place in their supply chain or business. The company’s business is also subject to the U.K. Bribery Act 2010, an anti-corruption law that criminalizes the failure by a company to prevent persons associated with that company from offering or paying bribes to government officials or non-government persons in order to obtain or retain business or a business advantage for the company, as well as restricting the offer, payment or receipt of bribes to or from governmental officials and non-governmental persons. Trademarks The company have numerous trademarks that are of significant importance, including the SYSCO and Brakes trademarks, in addition to the company’s privately branded product trademarks that include these trademarks. History Sysco Corporation was founded in 1969. The company was incorporated in 1969.