Dive Brief:
- Sysco has promoted Tom Bené to president and COO, effective Jan. 1, a promotion which could position him as a possible successor to the company's current CEO, Bill DeLaney.
- Bené has served as president of food service operations since January 2015. He joined Sysco as chief merchandising officer in 2013 before being appointed to chief commercial officer later that year.
- "Expanding Tom’s role will provide me with additional capacity to lead the execution of our recently announced three-year strategic plan, work closely with our board of directors on long-term strategic opportunities, and further engage with Sysco’s key stakeholders," DeLaney said in a statement.
Dive Insight:
Since its failed acquisition of US Foods, Sysco has been guided in a new direction with DeLaney at the helm. Bené's promotion is speculated to enable DeLaney to focus on the company's new growth strategy.
Sysco's three-year plan balances both growth and cost-cutting, with intentions to increase the company's annual operating income by at least $400 million, which includes about 15% to 20% coming from cuts to administrative expenses and over half from boosts to gross profits. The plan also includes a 15% return on invested capital by 2018.
In its latest earnings report, Sysco saw a 12% decline in profits. The prior quarter's profits plunged 71% due to costs from the failed US Foods acquisition.
Sysco named activist investor Nelson Peltz and Josh Frank of Peltz's Trian Fund Management to the company's board in August. That announcement came less than a week after Trian disclosed a 7.1% stake in Sysco.