Monday, December 09, 2013
Seafood.com News Summary Monday December 9, 2013
Sysco merging with US Foods - deal to be completed 3rd qtr 2014
Sysco announced a merger with US Foods this morning. The number one and number two broadline foodservice distributors will create a $65 billion company when the $8.2 billion deal is finalized in the 3rd quarter of 2014. Until then, it is business as usual. Sysco CEO Bill DeLaney said " We believe the supplier community will play a big role in allowing us to maximize the value of this transaction." Sysco's stock soared 30% on the announcement this morning.
Some US retailers have said 2013 has been a pretty good year for seafood sales both in volumes and values but the department’s sales continue to lag behind the other protein sections. Retail experts said seafood departments will need to develop innovative marketing strategies to draw greater retail customer interest in 2014.
In other news a fire has destroyed a lobster pound belonging to Nova Scotia-based La Pointe Seafoods over the weekend. It’s believed the Belliveau Cove pound was full of lobster at the time the building caught fire.
Finally, poor weather in the Sea of Japan and a lower Russian supply have pushed up wholesale snow crab prices in Japan by 50 percent. Some dealers are reportedly hastening to procure snow crab from sources other than local fishing and expectations are for high prices to continue as dealers contend with the supply issues.
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