GSC Enterprises - Competitors

GSC Enterprises Competition

Now Viewing GSC Enterprises's competition in: Food Distributors (primary)

Recent Developments

Distributors Ramp Up Organics - Food distributors are seeing continued growth in demand for organic and natural foods, resulting in long-term inventory changes, according to industry experts. Newly available figures from the Organic Trade Association (OTA) show a 21 percent increase in organic food sales in 2006 compared to 2005. The OTA predicts growth of 18 percent annually from 2007 to 2010. Distribution industry experts say that increased demand for organics appears to be a permanent shift in the marketplace.

Drive for Environmental Friendliness Heats Up - US distributors may soon see increased demand for eco-friendly, or "green," products due to a recent conservation push from the National Restaurant Association. Many of the suggested changes apply to the types of products and foods that distributors stock and deliver. Some new strategies for conserving resources include using recycled napkins and new food packaging with less material per package.

Chain Restaurants Grow in 2007 - Distributors that count on chain restaurants for the bulk of business saw increased demand in 2007 despite the unhealthy US economy, according to Restaurants & Institutions' annual chain restaurant rankings. Sales at the US' top 400 chain restaurants rose 5.4 percent in 2007 compared to 2006, although industry experts were unhappy that the growth was lower than the 6.8 percent in 2006 compared to 2005. The US' continued economic weakness has changed some restaurants' expansion plans for 2008, making experts unsure of how this year's numbers will end.

Competitive Landscape

Demand is driven largely by demographic shifts, particularly trends in population and age, working women, race and ethnicity, household size, and levels of disposable income. The profitability of individual companies depends on a good product mix and efficient operations. Large distributors are advantaged by bulk purchasing and economies of scale in distribution. Smaller companies can compete effectively by specializing in organic, natural, or kosher products or focusing on a geographical area. Average annual revenue per worker for a typical company is $675,000.

Full Industry Overview For Food Distributors

Food Distributors Industry Forecast

from Hoover's/D&B subsidiary First Research

Domestic demand for food, an indicator for food distributors, is forecast to grow at an annual compounded rate of 3.9 percent between 2007 and 2012.

Demand Growth for Food Steadies

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.