InsideFood Message Board
Sign up Calendar
 
 
 


Reply
  Author   Comment   Page 2 of 2      Prev   1   2
SoxFan

Junior Member
Registered:
Posts: 19
Reply with quote  #17 
What happens to PFG in Morristown???
0
snoman

Member
Registered:
Posts: 44
Reply with quote  #18 
Look for DC consolidation to happen at the customer level between chain and street accounts.  
0
yogibuck

Member
Registered:
Posts: 20
Reply with quote  #19 
Don't forget about PFG Hale, its only 60 miles or so from Johnson City.

Hickory is a so so NC location.  Too far West, not as much population, but has the mountains area business?  NC has gotten extremely competitive over the past 5-10 years.  Ferraro, Cheney, GFS have all set up shop here trying to take on the Sysco's/USF/PFG Roma crews.  

The growth is in Raleigh/Durham/etc. If I ran PFG, I'd close Hickory and Johnson City (they have Hale) and move to Greensboro/High Point.  Then I could serve all of NC and be closer to the people.  I believe PFG once had a GBO location.

PFG does reach NC from Richmond and Florence as well.  PFG overlaps a bunch already from the IFH buy.  Customers are slow to shift based solely on Geography.

Reinhard VA (the old supreme) (also serves NC) and PFG Richmond are 80 miles apart, each seem to be strong opco's, also reach quite a bit down into NC.

One thing I would do if I was PFG would expand its Vistar business.  I think it will take these smaller broadline opco's and increase its convenience store presence by converting them to Vistar.  Convenience store business if full of independents which translates into larger margins.

This is a merger that seems to be mostly about market share and economies of scale.  PFG wanted to be in the same game as Sysco and US Foods.  Now they are.   Too competitive out there to out work others, only way to do it is to buy it.  And their routes will be a lot tighter.  Also filled some gaps in states with limited coverage. 

Strong move by PFG for its shareholders.  Not gonna be painless for each company's employees.  But it seems quite evident that the quickest way to create quick market share is to buy it.  Organic growth just takes too long and is too expensive.


0
JustAnObserver

Member
Registered:
Posts: 46
Reply with quote  #20 
Quote:
Originally Posted by yogibuck
Don't forget about PFG Hale, its only 60 miles or so from Johnson City.

Hickory is a so so NC location.  Too far West, not as much population, but has the mountains area business?  NC has gotten extremely competitive over the past 5-10 years.  Ferraro, Cheney, GFS have all set up shop here trying to take on the Sysco's/USF/PFG Roma crews.  

The growth is in Raleigh/Durham/etc. If I ran PFG, I'd close Hickory and Johnson City (they have Hale) and move to Greensboro/High Point.  Then I could serve all of NC and be closer to the people.  I believe PFG once had a GBO location.

PFG does reach NC from Richmond and Florence as well.  PFG overlaps a bunch already from the IFH buy.  Customers are slow to shift based solely on Geography.

Reinhard VA (the old supreme) (also serves NC) and PFG Richmond are 80 miles apart, each seem to be strong opco's, also reach quite a bit down into NC.

One thing I would do if I was PFG would expand its Vistar business.  I think it will take these smaller broadline opco's and increase its convenience store presence by converting them to Vistar.  Convenience store business if full of independents which translates into larger margins.

This is a merger that seems to be mostly about market share and economies of scale.  PFG wanted to be in the same game as Sysco and US Foods.  Now they are.   Too competitive out there to out work others, only way to do it is to buy it.  And their routes will be a lot tighter.  Also filled some gaps in states with limited coverage. 

Strong move by PFG for its shareholders.  Not gonna be painless for each company's employees.  But it seems quite evident that the quickest way to create quick market share is to buy it.  Organic growth just takes too long and is too expensive.




PFG did just buy Eby Brown, so the Vistar expansion is in the works. Definitely agree with your thoughts that this is about improving their coverage (vs. expanding it). George Holm's statement basically said that. Sounds like they will be letting RFS divisions continue to run as their own business unit for the first year or two.
0
ISellLettuce

Senior Member
Registered:
Posts: 114
Reply with quote  #21 
Indeed, Vistar is a significant focus of PFG and that business will continue to expand. Eby-Brown was a great acquisition and there is activity at the OpCo level now about how PFS can capture share in EBB's customers that they aren't selling and vice versa. Looking to gain cases by leveraging synergies in the C Store space and becoming closer to a "one-stop shop" for C stores, a segment which has an ever increasing foodservice spend due to becoming a bigger player in the meals away from home space.

With regards to RH acquisition, I can tell you that there is no current plans to close any OpCos, and that includes RH's. That said, there is some overlap (including RH  themselves) where there are OpCos relatively close to each other (< 100 miles) and I can envision a future where some will consolidate. Some of the overlap have different segment mix though (example, a mostly street Opco is close to a mostly contract/chain OPco of RH, or vice versa). I can see PFG converting some RH house to customized though with the adds of Burger King, Subway, Five Guys, etc  


Quote:
Originally Posted by yogibuck
Don't forget about PFG Hale, its only 60 miles or so from Johnson City.

Hickory is a so so NC location.  Too far West, not as much population, but has the mountains area business?  NC has gotten extremely competitive over the past 5-10 years.  Ferraro, Cheney, GFS have all set up shop here trying to take on the Sysco's/USF/PFG Roma crews.  

The growth is in Raleigh/Durham/etc. If I ran PFG, I'd close Hickory and Johnson City (they have Hale) and move to Greensboro/High Point.  Then I could serve all of NC and be closer to the people.  I believe PFG once had a GBO location.

PFG does reach NC from Richmond and Florence as well.  PFG overlaps a bunch already from the IFH buy.  Customers are slow to shift based solely on Geography.

Reinhard VA (the old supreme) (also serves NC) and PFG Richmond are 80 miles apart, each seem to be strong opco's, also reach quite a bit down into NC.

One thing I would do if I was PFG would expand its Vistar business.  I think it will take these smaller broadline opco's and increase its convenience store presence by converting them to Vistar.  Convenience store business if full of independents which translates into larger margins.

This is a merger that seems to be mostly about market share and economies of scale.  PFG wanted to be in the same game as Sysco and US Foods.  Now they are.   Too competitive out there to out work others, only way to do it is to buy it.  And their routes will be a lot tighter.  Also filled some gaps in states with limited coverage. 

Strong move by PFG for its shareholders.  Not gonna be painless for each company's employees.  But it seems quite evident that the quickest way to create quick market share is to buy it.  Organic growth just takes too long and is too expensive.


0
Ole Foodie

Newbie
Registered:
Posts: 2
Reply with quote  #22 
More news and updates coming very soon. Apparently George Holmes division visits are becoming very interesting. No wonder Reinhart was sold!!
0
Foodservicedriver20

Member
Registered:
Posts: 39
Reply with quote  #23 
Performance Food Group Company Receives Request from FTC for Additional Information Regarding Proposed Transaction with Reinhart Foodservice


Might not be going as smooth as we think

Wondering if they are going to have to give up some warehouse also
0
formerdsr

Member
Registered:
Posts: 91
Reply with quote  #24 
Giving up warehouses is part of the equation. USF/FSA had to give up three in the Northwest.

Quote:
Originally Posted by Foodservicedriver20
Performance Food Group Company Receives Request from FTC for Additional Information Regarding Proposed Transaction with Reinhart Foodservice


Might not be going as smooth as we think

Wondering if they are going to have to give up some warehouse also
0
ISellLettuce

Senior Member
Registered:
Posts: 114
Reply with quote  #25 
Quote:
Originally Posted by Foodservicedriver20
Performance Food Group Company Receives Request from FTC for Additional Information Regarding Proposed Transaction with Reinhart Foodservice


Might not be going as smooth as we think

Wondering if they are going to have to give up some warehouse also



There is one specific geography that is being vetted more thoroughly right now. I think all concerns will be resolved to the satisfaction of those involved. PFG is still anticipating a end of calendar year close as previously has been stated.
0
Witlesswonder

Newbie
Registered:
Posts: 1
Reply with quote  #26 
Somethings starting to happen now. Everyone knows about the health benefits enrollment starting. That’s not to big of news but, Should start seeing actions of some sort taken soon.
0
Isthisidok

Member
Registered:
Posts: 27
Reply with quote  #27 
Pfg just offered a stock purchase plan as a benefit as well, enrollment open for the next few weeks
0
Isthisidok

Member
Registered:
Posts: 27
Reply with quote  #28 
For employees
0
foodserviceprov1

Newbie
Registered:
Posts: 1
Reply with quote  #29 
I'll be damned...pissandcarrotspusher you're still in the game.  Rumor had it you got busted at Starbucks for using the pisser without buying anything...that behavior works at Bojangles not uptown.  Now that you're settled into your management role you've become an even duller tool.  Painted into a corner and miserable.  Still worried about yet another consolidation.  Such is the life in the once noble profession of Foodservice.  Hope you dropped that 100 pounds...coffee, cigarettes and excessive alcohol use along with depression will kill you.  Me...still havin' a blast!

I'd sell my soul for you babe,
More money to burn with you
In the midnight hour she cried more, more, more
With a rebel yell, she cried more

Billy Idol

0
Previous Topic | Next Topic
Print
Reply

Easily create a Forum Website with Website Toolbox.