The foodservice industry represents nearly 50% of the food dollar consumed in America. The market is both immense and important to branded manufacturers.
SYSCO is the number one foodservice distributor in the nation, reaching over 400,000 customers through 170 facilities nationwide.Manufacturers invest in future foodservice sales by paying distributors sheltered income for elevated product placement and sales emphasis by the local DSR (sales rep) as they visit with foodservice operators nationwide.
But who are they really promoting? Kraft? Nestle? General Mills?
Well, take a look at one of their many delivery vehicles. It's all about Block and Barrel, one of SYSCO's private label lines.
This is nothing new, but a constant reminder that private labeling is not limited to retail.
If it was possible to match product quality with manufacturers, what would keep SYSCO from slowly eliminating branded products from the master catalog?
Wouldn't this be even easier in foodservice - where product packaging isn't exposed to consumers?