SYSCO Puts New Emphasis on Private Label Brands

Here are a couple of interesting quotes from a recent earnings call with Sysco, where analysts sought clarification on Sysco's internal brand focus.

The response shouldn't surprise anyone.  Sysco is only looking out for its own best interest by reemphasizing private label products with its national sales force.

Jason Whitmer (Cleveland Research Company):  Last question on your own brand, the Sysco brand, is there any return of a focus on that to drive that business again? Or to kind of continue to define that platform and anything that could change the mix shift or even the margin components of branded versus your own brand versus the national brands?

Kenneth F. Spitler (President and COO, Sysco):  Yes, we've just begun a reemphasis of brand and brand sales, reemphasis in our sales force and in our sales meetings start driving those numbers back up.

Meredith Adler (Barclays Capital):  I'd like to go back to the answer you just gave about private label and I wasn't sure, you said a reemphasis of brand and brand sales. Did you mean your own brand or did you mean national brands?

Kenneth F. Spitler:  No, I meant our brand that we're reemphasizing it with our sales force and our customer base.


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