Sysco 2015 Annual Report Download - page 10
Download and view the complete annual report
Please find page 10 of the 2015 Sysco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.SYSCO CORPORATION-Form10-K2
PARTI
ITEM1Business
The products we distribute include:
•a full line of frozen foods, such as meats, seafood, fully prepared entrees, fruits, vegetables and desserts;
•a full line of canned and dry foods;
•fresh meats and seafood;
•dairy products;
•beverage products;
•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.
A comparison of the sales mix in the principal product categories during the last three years is presented below:
Principal product categories 2015 2014 2013
Fresh and frozen meats 21% 19% 19%
Canned and dry products 16 18 19
Frozen fruits, vegetables, bakery and other 13 13 14
Dairy products 11 11 10
Poultry 11 10 10
Fresh produce 8 8 8
Paper and disposables 7 7 8
Seafood 5 5 5
Beverage products 4 4 4
Janitorial products 2 2 2
Equipment and smallwares 1 2 1
Medical supplies(1) 1 1 -
TOTALS 100% 100% 100%
(1) Sales are less than 1% of total for years shown with a “-”.
Our distribution centers, which we refer to as 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 speci cations that have been developed by
our quality assurance team. In addition, our quality assurance team certi es the manufacturing and processing plants where these products are packaged,
enforces our quality control standards and identi es supply sources that satisfy our requirements.
We believe that prompt and accurate delivery of orders, competitive pricing, 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 foodservice products to our
customers. Our operating companies offer daily delivery to certain customer locations and have the capability of delivering special orders on short notice.
Through our approximately 12,800 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 Sysco’s total sales for the scal year ended June 27, 2015.
We estimate that our sales by type of customer during the past three scal years were as follows:
Type of Customer 2015 2014 2013
Restaurants 64% 62% 61%
Healthcare 9 9 10
Education, government 8 9 8
Travel, leisure, retail 8 8 8
Other(1) 11 12 13
TOTALS 100% 100% 100%
(1) Other includes cafeterias that are not stand alone restaurants, bakeries, caterers, churches, civic and fraternal organizations, vending distributors, other distributors and international exports. None
of these types of customers, as a group, exceeded 5% of total sales in any of the years for which information is presented.