HOUSTON, Oct. 4, 2007 (PRIME NEWSWIRE) -- SYSCO Corporation (NYSE:SYY), North America's largest foodservice marketer and distributor, today announced a move that will improve service to its customers in the Houston market area and create the opportunity to help provide the Houston Food Bank a new home.
Sysco Food Services of Houston, Inc., the company's Houston subsidiary, plans to construct a high-efficiency, environmentally friendly warehouse/office complex on a site in a proposed industrial park at the southwest corner of Interstate 45 and Beltway 8 in Harris County, TX. Groundbreaking is anticipated as soon as the required permits are issued. One element key to the process was SYSCO's assistance in working with the Houston Food Bank to occupy SYSCO's current facility off Interstate Highway 10 just east of downtown. SYSCO has long been a significant supporter of the Food Bank, providing both monetary and in-kind food donations, as well as employee volunteer time.
Keith Miller, president and chief executive officer of the Houston operation, said, "Houston is truly a vibrant city with a sophisticated foodservice clientele. Our new facility is designed to better accommodate our customers -- the restaurants, hotels, hospitals and others who expect the best the foodservice world can offer. Houston has been very good to us and I can't imagine anything better than helping the Food Bank grow to support our community as we continue to grow with our customers and help our employees achieve their career goals."
Brian Greene, president/CEO of the Houston Food Bank said, "Our move into the SYSCO facility will allow us to feed many thousands more than the 80,000 people currently fed each week through the food bank's network of nearly 400 hunger relief agencies. The SYSCO facility matches all of our needs. It has the warehousing capacity that will allow us to reach our goal of distributing 120 million pounds of food by 2016."
Mr. Miller said SYSCO believes the high-speed product retrieval system that will be installed in the new warehouse is state-of-the-art in the foodservice distribution industry and that the new facility will be one of the most efficient of its kind ever built. The company also has dedicated nearly 4,000-square-feet of space for its business review process that helps customers improve their businesses. "Our customers' success has helped make us one of SYSCO's flagship companies," Mr. Miller explained. "In addition, SYSCO has been voted one of the best places to work in the Houston market over the past five years."
The new facility is expected to be operational approximately 15 months after groundbreaking and will serve restaurants, hospitals, schools, colleges, retirement homes, hotels and other foodservice operations in Houston and its surrounding communities. The complex will include approximately 585,000-square-feet of refrigerated, frozen and dry product warehouse space, as well as administrative offices.
SYSCO also has publicly committed to environmental sustainability programs, and the new distribution center will use over 25% less energy than a conventional food distribution center by utilizing high efficiency refrigeration systems, energy efficient-motion sensor controlled lighting systems, distribution of natural daylight, and on-site power generation using solar technology. Other sustainable features include the use of recycled and renewable building materials, low v.o.c. coatings, and management of construction waste. Pinto Realty Partners, who is selling the land, will incorporate many environmentally sustainable considerations in developing the industrial park, as well.
Instrumental in selecting this location were Bill McDade of McDade, Smith, Gould, Johnston, Mason + Company and the Greater Houston Partnership. Michael Downs, SYSCO's assistant vice president, real estate and construction, said, "This site was chosen because of its location at the logistical center of our delivery area and the excellent access to transportation arteries and other infrastructure. Additionally, the developer's commitment to a higher standard of industrial park was a factor."
SYSCO is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers that prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. For the fiscal year 2007, the company generated over $35 billion in sales. For more information about SYSCO visit www.sysco.com.
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Forward-Looking Statement
Certain statements made herein are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They include statements regarding completion of planned facilities, anticipated features of the facilities and anticipated growth. These statements involve risks and uncertainties and are based on current expectations and management's estimates; actual results may differ materially. Those risks and uncertainties that could impact these statements include changes in the availability of construction supplies, work stoppages and delays in construction timetables; management's allocation of capital and the timing of capital purchases; and the risks relating to the foodservice distribution industry's relatively low profit margins and sensitivity to general economic conditions, including the current economic environment and consumer spending; increased fuel costs. For a discussion of additional factors that could cause actual results to differ from those described in the forward-looking statements, see the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2007 as filed with the Securities and Exchange Commission.