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| With Sysco and U.S. Foods merging, scrutiny called for in $52 million Dept. of Corrections food bids |
| By saintpetersblog.com- Peter Schorsch |
| Published: 01/25/2014 |
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Five food suppliers entered bids Wednesday for a $52 million per year contract through Florida’s Department of Corrections: Sysco, US Foods, Cheney Brothers, All American Poly, and Eastern Foods. But there’s a problem, or actually, quite a few. Two of these companies are likely to merge. Both of them have had to settle with governments due to contracts and pricing mismanagement. And both are looking at ways to move contract-related distribution jobs out of Florida. If Sysco completes its planned $3.5 billion purchase of U.S. Foods, the nation’s two biggest food distributors would be merged. Together, these two food giants would have about $65 billion in annual revenue, which is five times higher than their next-biggest rival. This alone ought to give Florida’s Department of Corrections (DOC) cause for concern with selecting either of the distributors. The state should see view this merger with the same trepidation as do restaurateurs around the country. Competition between Sysco and US Foods is seen as essential to control costs. Read More. |
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