Sysco Corporation (SYY - Free Report) has been actively responding to cravings for new flavors through innovative offerings. To this end, the company unveiled plans to launch as many as 10 products this month, as part of Cutting Edge Solutions platform.
Apart from bringing unique flavors to the table, these launches indicate the company’s dedication toward augmenting plant-based offerings to ensure consumer health and wellness. Let’s take a closer look at these latest add-ons, which will enhance Sysco’s portfolio.
Cutting Edge Solutions: A Success Catalyst
Planned launches under the Cutting Edge Solutions arena include products like Portico Imperial Saddleback Lobster Tails, Classic Sous Vide Pork Belly, Imperial Wild Blueberry Flapjack Cake, Beyond Meat Beyond Sausage, Spicy Nothings Curry Sauces and Sweet Street Luscious Layers Cakes.
Additionally, the company plans to launch two products under the Baker’s Source line, namely Imperial Biscuit Mashups, and Imperial Roasted Garlic and Chili Petite Naan. Apart from food items, the company will also introduce Classic Fry Oil Filter Pods and Earth Plus Caterware for easier and healthier cooking.
The new food concepts will be developed by leading suppliers and will provide more value to Sysco’s esteemed customers. Undoubtedly, the Cutting Edge Solutions showcases versatile products to match consumer palate. The platform also utilizes advanced technology to save labor costs. We expect that such product additions will boost the company’s top line through enhanced case volumes.
Robust Growth Strategies Make Matters Cheerful
We note that Sysco’s innovation efforts are a vital part of its strategies for 2020, which the company had outlined at the New York Investor Day event in December 2017. Apart from new launches, the company has been pursuing acquisitions to augment distribution network and customer base.
To this end, Sysco concluded several meaningful buyouts in fiscal 2018 including HFM in Hawaii, Doerle Food Service in Louisiana and Kent Frozen Foods in the U.K. Apart from efforts to bolster portfolio, the company also focuses on strengthening e-commerce and supply-chain operations along with expanding deliveries and managing product costs, effectively.
Such well-chalked efforts are likely to drive the company’s U.S. Foodservice Operations, wherein local case volumes have been rising year over year for 17 consecutive quarters now. Markedly, this unit has been gaining from rising restaurant sales. a rosy economic scenario. In fact, Sysco’s International segment also performed well in the fourth quarter of fiscal 2018. Such upsides have propelled the company’s shares to rally 38% in a year compared with the industry’s 0.3% gain.
Going ahead, we expect this Zacks Rank #3 (Hold) company’s efforts to continue yielding and cushion headwinds emerging from food cost inflation and rising freight costs. That said, we anticipate Sysco to continue being an attractive pick for investors.
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