Sysco 2007 Annual Report Download - page 28

The products we distribute include:
• a full line of frozen foods, such as meats, fully prepared entrees, fruits, vegetables and desserts;
• a full line of canned and dry foods;
• fresh meats;
• imported specialties; and
• fresh produce.
We also supply a wide variety of 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.
Our operating companies distribute nationally-branded merchandise, as well as products packaged under our private
brands. Products packaged under our private brands have been manufactured for SYSCO according to specifications that
have been developed by our quality assurance team. In addition, our quality assurance team certifies the manufacturing
and processing plants where these products are packaged, enforces our quality control standards and identifies supply
sources that satisfy our requirements.
We believe that prompt and accurate delivery of orders, close contact with customers and the ability to provide a full array
of products and services to assist customers in their foodservice operations are of primary importance in the marketing
and distribution of products to traditional customers. Our operating companies offer daily delivery to certain customer
locations and have the capability of delivering special orders on short notice. Through our more than 14,400 sales and
marketing representatives and support staff of SYSCO and our operating companies, we stay informed of the needs of
our customers and acquaint them with new products and services. Our 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 our customers’ businesses.
No single customer accounted for 10% or more of our total sales for the fiscal year ended June 30, 2007.
Our sales to chain restaurant customers consist of a variety of food products. We believe that consistent product quality
and timely and accurate service are important factors when a chain restaurant selects a foodservice supplier. One chain
restaurant customer (Wendy’s International, Inc.) accounted for 5% of our sales for fiscal year ended June 30, 2007.
Although this customer represents approximately 39% of the SYGMA segment sales, we do not believe that the loss
of this customer would have a material adverse effect on SYSCO as a whole.
Based upon available information, we estimate that sales by type of customer during the past three fiscal years were
as follows:
Type of Customer 2007 2006 2005
Restaurants ______________________________________________________________________________ 64% 63% 64%
Hospitals and nursing homes _______________________________________________________________ 10 10 10
Schools and colleges_______________________________________________________________________ 555
Hotels and motels _________________________________________________________________________ 666
Other ____________________________________________________________________________________ 15 16 15
Totals ________________________________________________________________________________ 100% 100% 100%
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