The foodservice distribution is an interesting industry that demonstrates great advancements over the past couple of years. With over 16,500 companies, this industry is generating $280 Billion in annual revenue. With the top 8, foodservice distributors account for 41% of the annual revenue; Sysco, US Foodservice, Gordon Food Service are among them.
Amazon Business could anytime build a dominant marketplace since there is always a significant gap in the industry. While they’re yet to move strongly into the distribution, the other distributors have to act fast before it’s too late.
Today’s Guest
Jim Klass
For today’s episode, I sit down with Jim Klass to understand how the foodservice distribution industry is overcoming the current crisis and what else can be done better to bounce back. He is a scholar of consumer products with a unique perspective on the realities of the industry’s supply chain.
With over three decades of industry experience as a foodservice brokerage in NY, he has an exceptional view by working with large manufacturers, distributors, and operators. He was also a speaker at industry events sponsored by IFMA, IFDA, Technomic, and more.
Just go ahead and hit that play button and if you have any comments on the show don’t forget to mail me.
Show Notes
- [1:31] How was the financial crisis before and after 2009
- [3:39] According to NPD (in 2019) 54 cents of every dollar Americans spent on food was spent on foodservice.
- [4:18] Percentage of eCommerce growth in the food manufacturing and distribution industry
- [6:45] How does the current pandemic situation affect the local economy
- [7:58] What’s in it for employees? Are we going to see a rise in wages or a job cut
- [9:53] What can the distributors do now to foresee a better future
- [12:04] Types of distribution and how does the wholesale distribution works
- [13:38] Will the current situation affect the traditional foodservice distributors? What’s in it for Amazon
- [17:40] Things that small business manufacturers can do right now
- [19:43] It’s time to digitize and go online if not already
