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SoxFan

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

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

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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.


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JustAnObserver

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Posts: 42
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.
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ISellLettuce

Senior Member
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Posts: 109
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.


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Ole Foodie

Newbie
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Posts: 1
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!!
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