Registered: 1226601915 Posts: 1
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!
Registered: 1226636670 Posts: 3
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
Registered: 1218242291 Posts: 111
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.
Registered: 1220408683 Posts: 17
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.
Registered: 1227018681 Posts: 58
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.
Senior Member I
Registered: 1226855016 Posts: 282
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 __________________ TAZ
Live every day like it was your last, one day you will be right!
Registered: 1227018681 Posts: 58
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
Registered: 1240233335 Posts: 2
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.
Registered: 1224090242 Posts: 57
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.