US Foods announced it had launched US Foods Ghost Kitchens for restaurants, a training and preparatory support program. The company—a top US foodservice distributor—said that the solution would help clients unleash additional top-line growth. Included in the ghost kitchen solution are resources and marketing support, as well as webinars and consultants that can provide one-on-one advice to restaurants.
Plant-based food producer Eat Just, Inc. (Just) and and a subsidiary of Post Holdings have signed a distribution agreement that will accelerate and amplify Just Egg’s distribution. Michael Foods, which is a processor of value-added eggs, becomes the exclusive manufacturer and distributor of Just Egg within the foodservice and food ingredient space. The once-unlikely partnership shows how plant-based foods are permeating the mainstream food landscape.
As food banks across the country are challenged to meet the growing demand of households facing food insecurity, US Foods hit a new milestone. Since March, the third-largest U.S. broadline foodservice distributor by revenue has donated $10M in food and supplies to charitable organizations and food banks. By partnering with Feeding America, Rosemont, Ill.-based US Foods donates product to these community organizations, which have increasing needs due the COVID-19 impact, across the United States.
US Foods completed the acquisition of Smart Foodservice Warehouse Stores. The $970M transaction was completed April 24 as previously scheduled. The third-largest broadline distributor by annual revenues also recently issued convertible equity to former investment partner KKR, which invested $500M in US Foods.
Investment firm KKR returned to its relationship with US Foods. CD&R and KKR are the private equity firms that purchased US Foods from Royal Ahold, N.V. in 2007 for approximately $7.1B, and later took it public. Now in 2020, KKR will invest $500M in US Foods and receive newly-issued convertible preferred stock in the company.
Performance Food Group (PFG) announced it had signed 10 new agreements with food retailers year-to-date. Also, the nation’s second-largest broadline food distributor by revenue said due to labor shortages, it is sharing associates with grocers to help meet increased demand during the COVID-19 crisis. Increased capacity has led to 480 new grocery locations to which PFG has begun distributing.
Like many other foodservice companies, US Foods has withdrawn its earnings guidance for 2020. The company also indicated it had undertaken a cost reduction program to mitigate the impact of COVID-19 on its operations. As a downturn in business due to voluntary and mandated restaurant closures continues to ripple across the restaurant industry, suppliers and distributors are pulled in.
US foods Holding Corporation announced it will acquire Smart Foodservice Warehouse Stores from affiliates of Apollo Global Management for $970M in cash. Rosemont, Ill-based US Foods, a broadline foodservice distributor, entered into a definitive agreement for the cash-and-carry distributor. Smart Foodservice operates 70 such small stores in California, Washington, Oregon, Idaho, Nevada, Utah, and Montana, serving small and mid-sized restaurants and foodservice businesses.
The Coastal Companies acquired Lancaster Foods, a retail produce distributor, from Fairfax, Va.-based Guest Services, a hospitality management company. Founded in 1986, Lancaster Foods becomes the fourth produce subsidiary of The Coastal Companies, which already owns Coastal Sunbelt Produce, East Coast Fresh and Hearn Kirkwood.
Performance Food Group (PFG) completed its purchase of Reinhart Foodservice from Reyes Holding LLC. With this acquisition, PFG has been estimated to surpass US Foods as the second-largest foodservice distributor in the U.S. PFG now tallies $30B in annual net revenue and employs 25,000 associates.
