ID NEWS: Sysco announces ND 'fold-out' as prototype for smaller markets

Sysco Corp., Houston, has announced a "fold-out" facility to open on a 12-acre site in Fargo, ND. Dubbed Sysco Food Services of North Dakota, Inc., the new center is expected to be operational in the spring of 2004.

Sysco North Dakota will service operators in North Dakota and portions of South Dakota and Minnesota. Mark T. Lanctot, currently vice president of business development at Sysco's St. Paul, MN, will become general manager of the new operation.

"Once the North Dakota company is operational, our customers will benefit by receiving localized service," comments Richard J. Schnieders, Sysco chairman and ceo. "Sysco will benefit from two areas of expense reduction, including cost reductions associated with being in closer proximity to customers' locations, as well as the ability to delay warehouse expansions at those Sysco companies that currently supply foodservice operators in the North Dakota market."

Sysco's "fold-out" program has been a very successful component of internal growth strategies, Schnieders adds. "The strategy of opening 'fold-outs' in our larger markets continues to be viable and will now be complemented by an approach that seeks similar opportunities in smaller foodservice markets. The North Dakota market is characteristic of such a region and will serve as a prototype for future 'fold-out' prospects in smaller yet equally vibrant foodservice markets."


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