The proposed merger of Sysco and US Foods would create a dominant firm, or even a monopoly, in the broadline foodservice market, according to the American Antitrust Institute (AAI).
In a letter to Federal Trade Commission (FTC) Chairwoman Edith Ramirez, AAI Vice President Diana Moss urged careful scrutiny of the proposed merger. Sysco and US Foods are the two largest national “broadliners” that sell to foodservice outlets such as schools, hospitals, restaurants, and hotels. Those outlets, in turn, supply meals away from home to the consuming public.
The AAI letter outlines the markets affected by the proposed deal and its possible adverse effects on foodservice outlets and consumers, food suppliers, and the increasingly consolidated U.S. food supply chain. The proposed merger comes on the heels of a series of large mergers in the U.S. agriculture and food industries, amplifying its significance.