Sysco Acquires 50 Percent Stake in Mexican Distributor Pacific Star Foodservice
The U.S. Federal Trade Commission may not be convinced yet that Sysco’s merger with US Foods is the best idea, but that hasn’t stopped the foodservice distribution giant from gathering mass and pursuing even further growth overseas. According to a new report, this month Sysco has acquired a 50 percent stake in Mexico-based distributor Pacific Star Foodservice.
"We are pleased to reach this agreement to become joint partners with Sysco, North America's leader in foodservice distribution," said Armando Beltrán, CEO of Pacific Star, in a joint press release regarding the merger. "Pacific Star's customers and employees will benefit from the operational expertise, product assortment and immense world-class capabilities that Sysco can offer."
This marks Sysco’s second acquisition in Latin America this year, following its 50 percent acquisition of Costa Rican distribution business Mayca Distribuidores, S.A. in June. Finance source Zacks reports that Pacific Star Foodservice has a lot to offer Sysco, with a positive reputation and a robust distribution network already in place throughout Mexico City, Guadalajara, Tijuana, and Monterrey. Pacific Star Foodservice’s client base also meshes well with Sysco’s own, as the Mexican distributor works primarily with fast food and casual dining franchises and chains along with hotels, theme parks, and other large businesses with multiple locations.
Will this new acquisition affect Sysco’s ongoing acquisition bid for US Foods back in the United States? It’s more than likely that it won’t, as Sysco building its distribution network across the border has a pretty low chance of causing any problems or disrupting the playing field for smaller regional US competitors. Also, as Zacks points out, Sysco has also made several other smaller acquisitions this year as well:
Paired with its growth in the United States, expansion and acquisitions throughout Mexico could also benefit Sysco by opening up synergies in different regions and making it easier to distribute products on their way to be imported or exported between the United States, Mexico, and further throughout Latin America. All in all, it’s a move that’s going to serve the distributor well.
Better Origin’s AI insect farm is a solution to food waste
With 1.3 billion tonnes of food wasted annually, a solution has come to market that recycles food waste back into feed, using insects.
Better Origin, a UK agritech business based in Cambridge, has developed a fully automated insect farm powered by AI, to naturally feed chickens. The company is reducing dependency on imported feed and helping food producers achieve net-zero.
With the global population expected to surpass nine billion by 2050, food production will need to increase by 70% to meet this demand. Sustainably produced animal-grade protein is a part of a long-term solution to increase food supply to humans.
Launched in 2015, Better Origin started with two Cambridge graduates’ love for nature and technology and a desire to ‘bring the food chain back to its origins’.
The Better Origin X1 product reduces the need for many resources
Better Origin wanted a solution to the broken food chain. By using both nature and AI, the company is addressing the global food security problem. Their solution to food waste increases food security and improves animal welfare and sustainability.
The product – the Better Origin X1 - uses insects to naturally convert food waste into animal feed. It reduces the need for many resources required to produce animal feed:
The X1 looks like a standard shipping container, but it's a fully autonomous, modular insect farm powered by AI. The feed created by this new technology is produced naturally, is cost-effective and promotes a more circular food system, providing greater resilience and flexibility in times of need.
The Better Origin X1 recycles local agricultural waste to produce natural insect protein. This reduces the farmers’ dependency on unsustainable feeds, such as soy. The bioconversion unit grows insect feed on the farmers’ behalf, overseeing the larvae’s feeding and growth. This solution tackles waste and improves productivity, yield, and animal welfare, all while delivering a 130% ROI.
Achieving net-zero with insect protein and AI innovation
Insects farms are already operating in four places around the UK, including independent free-range farms.
“Humans are terrible at dealing with waste, while nature does it perfectly”, said Fotis Fotiadis, CEO & Founder of Better Origin. “We can have insects all around the world, addressing food waste locally. They will improve the lives of animals and make the future of food more sustainable. Our technology is on the path to becoming the mark of best practice within the food industry. We are working with farmers, retailers, and food producers to roll out this solution, with the aim to help secure the future of food.”