Happy Belly Food Group Signs National Distributional Agreement with Sysco

Rhea-AI Summary

Happy Belly Food Group (CSE: HBFG) (OTCQB: HBFGF) has secured a national food distribution agreement with Sysco (NYSE: SYY), a global leader in food distribution. The partnership enables all brands in Happy Belly's portfolio to benefit from Sysco's extensive distribution network and purchasing power.

The agreement provides Happy Belly's corporate and franchised locations with consistent access to high-quality products at competitive prices, leveraging economies of scale. Key benefits include reduced food costs, streamlined inventory management, reliable supply chain support, and enhanced operational efficiency through a single point of contact for ordering, billing, and customer service.

Positive

• Secured national distribution agreement with major food distributor Sysco
• Access to reduced food costs through economies of scale
• Improved inventory management and supply chain efficiency
• Streamlined operations through single point of contact for ordering and billing

Negative

• None.

Insights

Supply Chain Analyst

This distribution agreement between Happy Belly Food Group and Sysco represents a strategic move in supply chain optimization, though with material impact on Sysco given their $35.8B market cap. For Happy Belly, the deal offers significant operational advantages through economies of scale and streamlined logistics, but for Sysco, it's a routine business agreement that adds incrementally to their vast distribution network.

The partnership's value lies in the potential for Happy Belly to reduce operational costs through consolidated purchasing and standardized pricing across locations. However, from Sysco's perspective, while this expands their client portfolio, the impact on their revenue stream would be minimal given their extensive existing customer base and market position as North America's largest foodservice distributor.

The agreement's structure as a national account suggests a volume-based pricing model, which typically provides 3-7% cost savings compared to regional or local arrangements. For Sysco shareholders, this represents business-as-usual growth rather than a material catalyst for stock movement.

Toronto, Ontario--(Newsfile Corp. - January 17, 2025) - Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) ("Happy Belly" or the "Company"), a leading consolidator of emerging food brands is pleased to announce that it has secured a national food distribution agreement with Sysco (NYSE: SYY), the global leader in selling, marketing and distributing food and related products to customers who prepare meals away from home. The agreement allows for all brands in the Happy Belly portfolio to participate in the program.

Sysco

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"Partnering with Sysco, a world-class logistics company with expertise in the restaurant industry, allows us to benefit from their buying power combining the size and reach of their distribution network. This partnership ensures that both our corporate and franchised locations can take full advantage of the service and cost-saving benefits of a national account as we consolidate our purchasing," said Sean Black, Chief Executive Officer of Happy Belly.

"Through our national account with Sysco, we will have consistent access to high-quality products at competitive prices, leveraging the purchasing power and economies of scale inherent in national agreements. This will help reduce food costs and streamline inventory management across multiple locations. Additionally, Sysco's reliable supply chain support will minimize the risk of stock shortages and enable more accurate forecasting and planning. With a single point of contact for ordering, billing, and customer service, operational efficiency will be enhanced, allowing our management teams to focus on driving excellence and revenue growth in the business."

We are just getting started.

Franchising

For franchising inquiries please see www.happybellyfg.com/franchise-with-us/ or contact us at hello@happybellyfg.com.

About Sysco
Sysco is the global leader in selling, marketing and distributing food and related products to customers who prepare meals away from home. This includes restaurants, healthcare and educational facilities, lodging establishments, entertainment venues, and more. Sysco operates more than 340 distribution centers, in over 10 countries, with 76,000 colleagues serving approximately 730,000 customer locations. The company generated sales of more than $78 billion in fiscal year 2024 that ended June 29, 2024.

About Happy Belly Food Group
Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) ("Happy Belly" or the "Company") is a leading consolidator of emerging food brands.

Happy Belly

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Sean Black
Chief Executive Officer

Shawn Moniz
Chief Operating Officer

FOR FURTHER INFORMATION, PLEASE VISIT:
www: www.happybellyfg.com or email hello@happybellyfg.com
If you wish to contact us please call: (604) 737-2303

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

Cautionary Note Regarding Forward-Looking Statements

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to the Company within the meaning of applicable securities laws. Forward-Looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur and include the future performance of Happy Belly and her subsidiaries. Forward-Looking statements are based on the opinions and estimates at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. There are uncertainties inherent in forward-looking information, including factors beyond the Company's control. There are no assurances that the business plans for Happy Belly described in this news release will come into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis and other disclosure filings with Canadian securities regulators, which are posted on www.sedarplus.ca.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/237545

FAQ

What are the benefits of Happy Belly's distribution agreement with Sysco (SYY)?

The agreement provides access to reduced food costs, improved inventory management, reliable supply chain support, and streamlined operations through a single point of contact for ordering and billing.

How will the Sysco (SYY) partnership affect Happy Belly's operational costs?

The partnership is expected to reduce food costs through economies of scale and improved purchasing power, while also streamlining inventory management across multiple locations.

Which Happy Belly brands are included in the Sysco (SYY) distribution agreement?

The agreement allows for all brands in the Happy Belly portfolio to participate in the program.

What operational improvements will Happy Belly gain from the Sysco (SYY) partnership?

The partnership provides enhanced operational efficiency through consolidated purchasing, single-point contact for ordering and billing, and improved supply chain support and forecasting capabilities.