Sysco Corporation (2015 – Present)

Sysco Corporation (“Sysco”) is the North American leader in selling, marketing and distributing food products, equipment and supplies for the foodservice and hospitality industries.

Trian was attracted to Sysco due to the company’s stable growth, scale relative to peers, well-established and trusted brand, and high cash flow generation. Trian believes there is a meaningful opportunity at Sysco to improve operating margins, enhance working capital efficiency, implement a more efficient capital structure and better align compensation with corporate objectives and company performance.

On August 14, 2015, Trian announced its investment in Sysco. On August 20, 2015, Trian partners Nelson Peltz and Josh Frank joined Sysco’s Board of Directors.

On July 17, 2017, Sysco announced that Tom Bene would become CEO effective January 1, 2018, and will also join Sysco’s Board.

Trian looks forward to continuing to help make Sysco a more efficient and forward-looking food service distributor in the United States.

Sector: Consumer

Fun Fact: Sysco delivers over 1.3 billion cases of food and related products per year – more than 40 cases per second – to its customers, including restaurants, healthcare providers, educational facilities, lodging establishments and other foodservice customers

Company Website: http://www.sysco.com/

ESG Highlights:

  • Favorable ISS Governance Score: Received a 2 on ISS’s QualityScore metric (as of April 1, 2018), the second-highest possible score (out of 10)
  • Board Refreshment Plan: In 2016, Sysco elected three new independent directors, determined to elect one additional independent director in each of 2017 (completed) and 2018, established a 15-year limit on director tenure, and announced a “360 degree” performance review process for individual directors that will take place every three years and will solicit feedback from management and other directors, among others
  • Food Safety: In FY2016, Sysco’s Quality Assurance team completed on-site audits and plant or field inspections at more than 1,700 locations to monitor food safety and quality programs
  • Low Emission Vehicles: Sysco’s fleet includes 180 low emission liquid natural gas trucks, and in December 2017, Sysco placed a reservation for 50 Tesla fully-electric Semi tractors (to begin production in 2019) that will have up to 500 miles of range on a single charge
  • Supplier Diversity: Spent $1.1 billion with over 500 minority and women owned suppliers in FY2016
  • Local Sourcing: Named one of the world’s 10 most innovative food companies by Fast Company in 2012 due to ability to integrate local food products into supply chain
  • Food Waste Reduction: In 2016, FreshPoint (a Sysco company) launched its Unusual But Usable (UBU) program that finds customers interested in utilizing “imperfect” produce that might otherwise go to waste
  • ESG Index: Member of FTSE4Good Index since 2003

For more information on ESG initiatives at Sysco, please visit http://www.sysco.com/about-sysco/corporate-responsibility.html

Trian Board Members