U.S. food distributors are working together to consolidate supply chains to improve the supply of food to grocery retailers.
Keene, New Hampshire-based C&S Wholesale Grocers, Inc., the largest wholesale grocery supply company in the U.S., has announced a partnership with two major foodservice distributors: Rosemont, Illinois-based US Foods Holding Corp. and Richmond, Virginia-based Performance Food Group.
“We are very excited about our partnership with US Foods, which will keep the food supply chain strong despite challenges resulting from the COVID-19 pandemic,” C&S CEO Mike Duffy said in a press release.
C&S is “taking the steps necessary to onboard and train members of US Foods’ workforce to ensure our warehouses are staffed and deliveries are on the road, enabling families access to food across the country,” Duffy added.
The partnership will allow C&S to alleviate a potential worker shortage stemming from increased food retail demands, while transferring US Foods personnel to similar job functions.
Performance Food Group is excited to partner with C&S Wholesale Grocers "during this critical time for our country’s food supply chain,” Performance Food Group Chairman, President, and CEO George Holm said in a press release. “This is one of the many ways that PFG can utilize our people and assets to support our local communities as we all weather this period of disruption.”
US Foods also withdrew USD 1 billion (EUR 902 million) under its existing revolving credit facilities to retain as cash on hand during the outbreak.
Likewise, foodservice distributor Sysco, which recently withdrew USD 1.5 billion (EUR 1.4 billion) under its revolving credit facility, is “actively pursuing new sources of revenue by leveraging its supply chain expertise to provide services to the retail grocery sector,” it said in a press release.
“This net new business will help off-set some of the declines in the food-away-from-home segment and also positions the company well to capitalize on growth opportunities after the COVID-19 crisis subsides,” Sysco said.
