US Foods Building B2B Food Service Customers: A Bridge to the Digital World
| Case Code: MKTG443 Case Length: 16 Pages Period: 2020-2021 Pub Date: 2022 Teaching Note: Available |
Price: Rs.400 Organization : US Foods, Inc. Industry :Foodservice Countries : United States Themes: B2B Marketing, Technology Strategy, Competitive Strategy, New Product Development |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
USF’s Operations
As of 2020, USF was a US$ 24 billion company that was the second-largest foodservice distributor in the US. USF offered approximately 400,000 fresh, frozen, and dry food stock-keeping units (SKUs) , as well as non-food items, sourced from approximately 6,000 suppliers. Its product categories included meats and seafood, dry grocery products, refrigerated and frozen grocery products, dairy, and beverage products. It marketed and sold these products under various brands that included Chef’s Line, Rykoff Sexton, Stock Yards, Metro Deli, Harvest Value, Monarch, Monogram, Molly’s Kitchen, and Glenview Farms..
Winning Customers through Novel Product Offerings
According to industry analysts, the food habits of customers in the 2010s were as momentary and brief as those of the fashion industry, which put enormous pressure on restaurants and other food outlets to stay up-to-date, if they wanted to continue to appeal to customers’ tastes. USF was cognizant of that fact and implemented different strategies. USF’s motto was “We Help You Make It” and its key strategy was – Great Food. Made Easy..
Reducing Operating Headaches - Innovative Technology Offerings
USF believed that the latest technologies that helped operators with their day-to-day operational needs would play a key role in the future of foodservice distribution. Through the years, the company played a leading role in the US food distribution industry, providing its customers with e-commerce and data analytics capabilities..
Taking Advantage of Emerging Opportunities
The COVID-19 pandemic that began in 2020 had a substantial negative impact on the US economy that had a direct bearing on the customers of USF. During the pandemic, there was an extensive implementation of social distancing measures and a hesitancy among the US public to socialize, along with directives from the US government to shut down non-essential businesses..
The Road Ahead
Through the new programs launched during the pandemic, USF was able to help restaurant operators improve delivery and takeout operations, develop new revenue streams through ghost kitchens, and come up with strategies to leverage the right products to address evolving diner and restaurant operation demands..
Exhibits
Exhibit I: Different Types of B2B Food Distributors, US
Exhibit II: Consolidated Results of Operations of USF for FY 2020, 2019 and 2018
Exhibit III: USF’s E-commerce Offerings
Exhibit IV: CHECK Business Tools’ Partner Information
Exhibit V: Effect of Covid-19 Pandemic on USF
Exhibit VI: USF’s Re-action Plan
Exhibit VII: Top Food Distribution Companies in the US, as of 2021 (Amount in US$ Billion)
Exhibit VIII:
Food Distribution Market share in the US - 2021
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