CFS Continental
Encyclopedia
CFS Continental, Inc. was a wholesale food distributor started in 1915 by Jacob Cohn (b. 1894, d. 1968) in Chicago as the Continental Coffee Company which now part of SYSCO
.
In 1985, CFS Continental, Inc. with $1.6 billion in annual sales was purchased by the soybean and corn processor A.E. Staley for $360 million. After the acquisition, A.E. Staley changed its name to Staley Continental.
In 1988, British food processor Tate & Lyle
purchased A.E. Staley Company for $1.42 billion. To help finance the A.E. Staley acquisition, Tate & Lyle
pre-sold CFS Continental, Inc. to the foodservice giant SYSCO
for $700 million. SYSCO
generated sales of $3.7 billion (1987) and CFS Continental generated sales of $2.4 billion (1987). CFS Continental operations purchased by SYSCO
included all brands, distribution facilities and equipment; wholesale grocery sales force; NCD Detergents; the Gregg’s Food Products/ Re-Mi Group, which manufactured more than 350 food items such as salad dressings and puddings; Continental Coffee; the Interstate Foods Group (shortening); and Fresh Start Bakeries, which produced hamburger buns and English muffins for McDonald's
Corp. CFS Continental distribution and sales force were particular strong on the west coast, Minnesota, Chicago and in the Washington D.C. where SYSCO
did not have a strong presences. SYSCO
.
SYSCO
was primarily interested in CFS Continental’s wholesale grocery business and therefore, prior to the purchase of CFS Continental from Tate & Lyle
, SYSCO
had pre-sold the non-core manufacturing businesses. Quaker Oats purchased Continental Coffee (undisclosed price). Fresh Start Foods, a management buy out team financed by Berkshire Partners
bought the two manufacturing divisions that supplied McDonald’s Corp.: Interstate Foods Group (shortening) and Fresh Start Bakeries to (price not disclosed). The shortening manufacturing facilities were located in Chicago and Los Angeles. The Fresh Start bakeries were located California, Kansas, Hawaii, West Germany and Brazil. Borden Inc.
bought Gregg’s Food Products/Re-Mi Group. NCD Detergents, INC. was sold to Ecolab
. SYSCO
raised an estimated $250 million in the divestiture of the CFS Continental manufacturing divisions.
SYSCO
Sysco Corporation is the global leader in marketing and distributing food products to restaurants, healthcare and educational facilities, hotels and inns, and other foodservice and hospitality businesses...
.
History
The wholesale food distributor started in 1915 by Jacob Cohn (b. 1894, d. 1968) in Chicago as the Continental Coffee Company. Cohn began by selling coffee by horse and wagon to small restaurants in Chicago. By 1967, the Continental Coffee was led by brothers Alvin Cohn (b. 1921, d. 1994) and Robert Cohn. The brothers began purchasing regional wholesale grocery companies to supplement Continental Coffee's national coffee business. In 1970, Continental Coffee Company went public. In 1973, Continental Coffee Company changed its name to CFS Continental, Inc. to reflect the growing importance of foodservice to their traditional coffee business.In 1985, CFS Continental, Inc. with $1.6 billion in annual sales was purchased by the soybean and corn processor A.E. Staley for $360 million. After the acquisition, A.E. Staley changed its name to Staley Continental.
In 1988, British food processor Tate & Lyle
Tate & Lyle
Tate & Lyle plc is a British-based multinational agribusiness. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index as of 20 June 2011...
purchased A.E. Staley Company for $1.42 billion. To help finance the A.E. Staley acquisition, Tate & Lyle
Tate & Lyle
Tate & Lyle plc is a British-based multinational agribusiness. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index as of 20 June 2011...
pre-sold CFS Continental, Inc. to the foodservice giant SYSCO
SYSCO
Sysco Corporation is the global leader in marketing and distributing food products to restaurants, healthcare and educational facilities, hotels and inns, and other foodservice and hospitality businesses...
for $700 million. SYSCO
SYSCO
Sysco Corporation is the global leader in marketing and distributing food products to restaurants, healthcare and educational facilities, hotels and inns, and other foodservice and hospitality businesses...
generated sales of $3.7 billion (1987) and CFS Continental generated sales of $2.4 billion (1987). CFS Continental operations purchased by SYSCO
SYSCO
Sysco Corporation is the global leader in marketing and distributing food products to restaurants, healthcare and educational facilities, hotels and inns, and other foodservice and hospitality businesses...
included all brands, distribution facilities and equipment; wholesale grocery sales force; NCD Detergents; the Gregg’s Food Products/ Re-Mi Group, which manufactured more than 350 food items such as salad dressings and puddings; Continental Coffee; the Interstate Foods Group (shortening); and Fresh Start Bakeries, which produced hamburger buns and English muffins for McDonald's
McDonald's
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948...
Corp. CFS Continental distribution and sales force were particular strong on the west coast, Minnesota, Chicago and in the Washington D.C. where SYSCO
SYSCO
Sysco Corporation is the global leader in marketing and distributing food products to restaurants, healthcare and educational facilities, hotels and inns, and other foodservice and hospitality businesses...
did not have a strong presences. SYSCO
SYSCO
Sysco Corporation is the global leader in marketing and distributing food products to restaurants, healthcare and educational facilities, hotels and inns, and other foodservice and hospitality businesses...
.
SYSCO
SYSCO
Sysco Corporation is the global leader in marketing and distributing food products to restaurants, healthcare and educational facilities, hotels and inns, and other foodservice and hospitality businesses...
was primarily interested in CFS Continental’s wholesale grocery business and therefore, prior to the purchase of CFS Continental from Tate & Lyle
Tate & Lyle
Tate & Lyle plc is a British-based multinational agribusiness. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index as of 20 June 2011...
, SYSCO
SYSCO
Sysco Corporation is the global leader in marketing and distributing food products to restaurants, healthcare and educational facilities, hotels and inns, and other foodservice and hospitality businesses...
had pre-sold the non-core manufacturing businesses. Quaker Oats purchased Continental Coffee (undisclosed price). Fresh Start Foods, a management buy out team financed by Berkshire Partners
Berkshire Partners
Berkshire Partners, the Boston-based private equity firm, has invested in leading mid-sized companies for over twenty-five years through eight investment funds with aggregate capital of $11 billion. Berkshire has developed specific industry experience in several areas including retailing, consumer...
bought the two manufacturing divisions that supplied McDonald’s Corp.: Interstate Foods Group (shortening) and Fresh Start Bakeries to (price not disclosed). The shortening manufacturing facilities were located in Chicago and Los Angeles. The Fresh Start bakeries were located California, Kansas, Hawaii, West Germany and Brazil. Borden Inc.
Borden
-Places:Australia*Borden, Western AustraliaCanada*Borden, Saskatchewan*Borden, Ontario*Borden-Carleton, Prince Edward Island, formerly the town of Borden*Borden Peninsula, Nunavut, Canada*Borden Island, Nunavut, Canada...
bought Gregg’s Food Products/Re-Mi Group. NCD Detergents, INC. was sold to Ecolab
Ecolab
Ecolab, Inc. is a St. Paul, Minnesota based sanitation supply company founded in 1923.The company provides sanitation and pest control supplies, foodservice equipment repair and parts, food safety services and consulting to restaurants, hospitals, food and beverage plants, laundries, schools,...
. SYSCO
SYSCO
Sysco Corporation is the global leader in marketing and distributing food products to restaurants, healthcare and educational facilities, hotels and inns, and other foodservice and hospitality businesses...
raised an estimated $250 million in the divestiture of the CFS Continental manufacturing divisions.