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formerfoodsalesgirl

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Reply with quote  #1 
I heard a rumor that Sysco is purchasing Cheney Brothers in Riviera Beach and Ocala, FL. Has anyone else heard about this? The company is having a lot of problems and I know that many of not all the employees would welcome a buyout/takeover by Sysco (I know Sysco is not perfect either, but things have gotten bad at Cheney). Any info would be helpful. Thanks!
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pasquale

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Reply with quote  #2 

Where do these ridiculous rumors get started. Sysco is getting drubbed by Cheney and that is because there are beaucoup manufacturers and brokers that resent having trouble sitting down after dealing with both Sysco and US Foods. However after saying that, there is always a $$ amount out there that would work. Sysco would have to buy Cheney for the same reason they bought Beaver Street Foods. Sysco just cannot compete with a strong local privately owned distributor. Even in this crappy economy I have double digit growth at Cheney AND GFS. Sysco sucks

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BSmithers

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Reply with quote  #3 
Pasquale, although what you say about Sysco (or USF) struggling to compete with strong privately owned companies is sometimes true I think it is naive of you to think they are "getting drubbed".  I can only assume you are in some sort of sales capacity at your job because people who make these statements only consider sales growth as the criteria for victory.  You can have a lower percentage of sales growth and still be more profitable (the object of the business).  I wouldn't put Cheney Bros. and GFS in the same category either.  I'd be surprised if Cheney Bros. survives another ten years.

But, for the sake of our industry, I hope they do.
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koolaid

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Reply with quote  #4 

If it weren't for some serious ethical issues at Cheney, GFS would have bought them long ago. Still might happen.

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Beentheredonethat

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Reply with quote  #5 
   Why would Sysco or GFS buy Cheney,a good co.in
its own right?One would buy a company because it
would add something to their companies,they do not
have.In CBI's case for Sysco it might be their
warewashing program,which Sysco lacks to a large
degree.And that about it.
    Don't tell me it add permament sales or moves them into geo. areas they are not in.No,Sysco learn their lesson,hopefully when they bought Continental
Coffee and lost 40%of the sales because buyers refused to be down to one main supplier.

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TAZ

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Reply with quote  #6 
Cheney is a good company with a big market share. SYSCO, GFS or US Foodservice would buy them because they would contribute to their market share. Incremental sales growth is hard to achieve when you have a large share of the market already. When SYSCO bought CFS they did lose some short term sales. But now look at what those divisions have contributed in major metro markets like Chicago, Los Angeles, Baltimore/Washington, etc...

I am sure Mr. Russell has a number he is willing to consider. The only question, is it a good return on investment? Everyone has a price!

SYSCO or GFS are the only two that make sense! US Foodservice has enough internal problems to solve! They would totally




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TAZ

Live every day like it was your last, one day you will be right!

Ignore Ignorance!
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Beentheredonethat

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Reply with quote  #7 
   Add market share if Sysco or GFS were to buy CBI
would be very short term because any acct that CBI
shared with Sysco and/or GFS is going to bring in a
competitior.
   Second problem is you would have to close down
warehouses because of their close proximity.
   Third problem,is the style of mgmt.comparing Sysco/ GFS with CBI is apples and oranges.For ex.,
someone at CBI once said"You can give yourself any
title you want at CBI as long as its not owner."Try

that at Sysco/GFS and they will call you"unemployed



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iseeallknowall

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Reply with quote  #8 

Sysco already had a chance to buy CBI but the price was too high. Not in monetary figures....Brian wanted to come too.

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brokerman

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Reply with quote  #9 

BTDT- Are you talking about one isolated instance with SYSCO and CFS? Overall they went from about $7 Bil to $15 Bil in a relatively short period of time. Where SYSCO had weaker sales, CFS was strong in the market and vise versa. L.A. was probably the best example.

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FoodFox

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Reply with quote  #10 
Apparently, CBI is not surviving the Pandemic as they would have hope.  They are having under the table conversations with Sysco for a couple of locations including Boca Raton. What does this mean?  
Well Sysco is known to beat or buy their competition.  CBI is the only company that could price Sysco out of the market constantly, so purchasing CBI makes sense. 
For CBI, it would be a great financial downfall, except many will lose their jobs, specially those that left Sysco to go to work at CBI. 
I have worked for Sysco, US Food and CBI, so I don't have a dog in this fight, but.  Knowing Sysco and their deep pockets, they will eat up CBI and keep what is good, and get rid of those that are not.  That is a given. 
Sysco understands that US Foods is also in a financial deep hole, having to borrow money again just to stay afloat.  So, whether US Folds, and CBI gets bought out, Sysco like always will prevail. 
The South Florida Food Service Market is a very narrow pie.  Sysco will do everything to get it all.  The Pandemic problems just adds salt to CBIs and US Foods wounds.  Sysco survives because of it's International Presence. 
If I was a US Foods or CBI Employee....I would start making moves.  The monster is coming.

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Savaday

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Reply with quote  #11 
Several posts are stating Cheney not doing well during pandemic, I would disagree if talking about supplying their customers and servicing them well during these difficult times. I’ve been very surprised with Sysco being the largest and most profitable food distributor out there, at how bad they are doing? Sysco customers are calling me to bail them out ALL THE TIME.
I’m not saying it couldn’t happen if the family and their inner circle agree to do it; I just don’t believe this is the case; I believe this is in fact just a “rumor”
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MagicChef

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Reply with quote  #12 
Gosh, rumors and rumors. Cheney is a 95 year old company and don’t plan to sell or fold anytime soon. Byron has groomed his 3 nephews to be the next to take over and continue the legacy. Covid has hit everyone hard and no one was immune from its effects. Every company, publicly traded and private has loyal good workers, and companies are built upon them. Cheney will continue to be that company that will rise to the top of the market and continue to have rumors for years to come.
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ComingThroughHotFood

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Reply with quote  #13 
Deja Vu , Thanks MagicChef for setting things straight, Keep your eye on CBI  [wave]
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snoman

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Reply with quote  #14 
There’s no reason to buy anybody in this environment. All Sysco would buy are trucks and warehouses the real estate being the only thing of real value. CBI does do well at not only low prices but low volume stops so all Sysco would have to do is drop there prices against a financially unstable competitor. That would be a lot less costly than buying a bunch of trucks that will just sit around for an extended period of time.
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seafoodmaniac

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Reply with quote  #15 
How many smaller distributors can survive carrying all the unpaid AR debt , inventory ramp up cost after literally throwing millions of dollars of fresh product in the dumpster?
USF selling junk bonds to raise operating cask.
PFG still has to make payments on loan they borrowed for Reinhart.
CBI has millions of dollars in loans on the new facilities they built.
A lot of distributors are cash strapped right now.

We will see who survives.
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formerdsr

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Reply with quote  #16 
You might see a lot of small to medium independents get together to compete better and protect themselves getting bought by USF/Sysco/PFG. Many independents increased the lines they stocked during the aborted USF/Sysco merger. I know USF and Sysco lost business to the independents because their reps would physically call on customers as opposed to ordering online.
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