ID NEWS: Sysco announces branded coffee coup: exclusive Starbucks distribution rights

Sysco Corp., Houston, has been granted exclusive rights to distribute Starbucks products
to non-contracted foodservice customers. This agreement will be implemented
immediately by Sysco through its 64 full-service broadline distribution locations across
the United States.

Under terms of the multi-year agreement, Sysco will be a strategic foodservice
distribution partner with Starbucks Coffee Company, Seattle, targeting a variety of
potential customers such as businesses, colleges and universities, hotels, white-tablecloth
restaurants and upscale casual restaurants. Starbucks will be the only premium national
brand coffee actively supported by Sysco and, in turn, Starbucks will align its current
foodservice sales, service and support resources exclusively with Sysco.

"The ability to leverage our sales and distribution networks with a high-quality brand
provides excellent growth opportunities to Sysco and Starbucks," comments Richard J.
Schnieders, Sysco's chairman and ceo. "Both companies will benefit from the sales and
market share gains that we expect to achieve."

"Through this agreement, Starbucks can achieve a broader market presence, bringing the
Starbucks experience to a wider audience," adds Jim Donald, president, Starbucks North
America. "Sysco will make ordering and delivery of our products for our foodservice
customers much easier and more efficient. As we grow and expand our business in the
foodservice arena, partnering with a world-class foodservice distributor like Sysco will
enable us both to grow and meet our goals at a faster pace."

The largest broadliner in North America, Sysco generated sales of approximately $23.4
billion for fiscal 2002, ended June 29, 2002.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Leadership

Meet the restaurant fixer who now owns Etta

Tech entrepreneur Johann Moonesinghe suddenly finds himself leading a growing group of restaurants. His secret? He doesn't expect to make a profit.

Financing

Looking for the next Chipotle? These 3 chains are already there

The Bottom Line: Wingstop, Raising Cane’s and Jersey Mike’s have broken free from the pack of well-established growth chains. Here’s why this trio stands out.

Financing

For Starbucks, 2 years of change hasn't yielded promised results

The Bottom Line: The coffee shop giant’s sales struggles worsened earlier this year, despite a flurry of efforts to improve operations and employee satisfaction.

Trending

More from our partners