Negotiations for Bahamas Food Services (BFS) to be sold to U.S. food supplier Sysco are underway and such a deal would be "the best thing ever" in the local food industry, according to the BFS former head of operations, Philip Lightbourne. Lightbourne, though now owner of Phil's Food Services, still has intimate knowledge of the workings of BFS. He told Guardian Business yesterday that the sale of BFS to Sysco would take BFS out of the retail market and make it exclusively a wholesaler fully capable of meeting the needs of all clients in the country, including Atlantis and Baha Mar.
"Sysco is a wholesale supplier and will not affect the retail market. It is not going to open up retail food stores," said Lightbourne. "As a matter of fact, it is going to assist the retail market with its product brand, giving consumers new alternative products at affordable prices." Sysco is a giant in the global food business. It was ranked 69th in Fortune Magazine's 2012 rankings of the largest American companies, with revenue over $39 billion in 2011. It is the largest food supply company in the U.S. Sysco has sales and service relationships with approximately 400,000 customers and a range of more than 400,000 products extending from fresh produce and meats to prepared foods and more.
Lightbourne also said that under the current thinking, if the deal is approved by the government, shares would be offered to the public via Bahamian Depository Receipts (BDRs). BFS, formerly known as Island Sea Food (ISF), has been operating in The Bahamas since 1971 and is the largest food distributor in the country. It employs more than 300 Bahamian residents and operates from a 160,000-square-foot complex on Gladstone Road. BFS is currently owned by the Frisch family out of Jacksonville, Florida.
The family controls Beaver Street Fisheries Inc. Lightbourne said that the sale to Sysco would mean more jobs at BFS, increased job security for those currently employed with the company and the addition of a reputable company willing and able to pay its taxes and fees to the government. He also argued that the sale would significantly expand the product offerings available to Bahamian consumers, while also reducing the cost of such goods because of Sysco's size and capacity.
The food service industry is via national policy reserved for Bahamians. However, BFS is the industry leader and it has had longterm foreign owners. A sale to Sysco would maintain the status quo regarding foreign ownership. This is not the first time a deal has been on the table for the sale of BFS to Sysco. According to Lightbourne, a deal for the sale was approved by the then government in 2005. However, due to the time it took for the whole deal to conclude, Sysco exited the process.
Click here to read more at The Nassau Guardian
