Food wholesalers in the country should not be struck with fear due to Sysco's acquisition of Bahamas Food Services (BFS), according to a prominent figure in the industry, Owner of Super Value Rupert Roberts told Guardian Business that both parties can co-exist in the local market. He further noted that the local food wholesalers' familiarity with the business landscape will pay dividends, and he ultimately believes that there will be an overall good business relationship with Sysco."The wholesalers will be in good shape because they know the business, the pulse of the economy and their consumers," Roberts said.
"It could be better or worse for them [in the long term] but I expect the relationship to remain the same in that market and not much change."Roberts' comments came after the government approved the sale of BFS to Sysco last week for an unknown amount. The U.S.-based company will take over the largest food distributor in the country, and the government intends to implement a number of "protective measures" to ensure that Bahamians benefit from the transaction.Some key facets of the deal include a 15 percent initial public offering (IPO) on the Bahamas International Securities Exchange (BISX) to enable Bahamian ownership and a commitment to the agriculture and fisheries industries.
While some wholesalers are uneasy about the outcome of the deal and how it would affect their operations, the playing field could be leveled in the early stages of the agreement. Guardian Business understands that the current management at BFS will stay with the company for three years and it could get "better or worse" for wholesalers once that period ends.Roberts offered advice for wholesalers who may be unsure of what the future holds, mentioning how he was able to remain successful despite the foreign competition he faced.
"Look at Super Value, we went up against Winn-Dixie and we survived," he said. "Winn-Dixie was highly efficient and organized and we overcame that. I didn't fear the foreign competition and I don' t think the wholesalers have a reason to fear foreign competition because they are experienced and have been successful thus far."Given the timing of the deal, which is agreed to in principle, the Super Value chief said individuals in the food industry should enjoy the holiday season."There's no need to stress about the future because everything will play out the way it's supposed to," Roberts said. "Now is the time of year to enjoy time with family and friends and remember why we celebrate Christmas."
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