Wholesale Food Distribtion

Overview

Wholesale food distributors (generally classified as Standard Industrial Code #5141) provide food and related products (health and beauty aids, cleaning products, and other general grocery items) to retail grocery stores, convenience stores, and other retailers that sell food products. Food distributors can provide other services to their retail customers as well—advertising and merchandising. Their infrastructure usually includes warehouse facilities, truck fleets, and related information technology systems. According to the U.S. Census Bureau’s Statistical Abstract of the United States, wholesale grocers generated revenues of $402.9 billion in 2001, compared to $274.8 billion in 1992 and $344.4 billion in 1998. There were 39,700 wholesale grocers in 2000, down from 40,600 in 1999.