Food-Service Distributor Sysco Names New CFO
November 17 2020 - 8:43AM
Dow Jones News
By Jaewon Kang
Sysco Corp. hired a new finance chief to help the food-service
distributor navigate the coronavirus pandemic.
The Houston-based company Tuesday named Aaron Alt as chief
financial officer, effective Dec. 7. Mr. Alt joins Sysco from
beauty retailer Sally Beauty Holdings Inc., where he has served as
CFO since 2018. He will succeed Joel Grade, who will take on a
newly created role of leading business development for Sysco.
"This is our moment to play to win," said Chief Executive Kevin
Hourican, who joined Sysco from CVS Health Corp. in February. "We
have been investing in transformation during this time."
The coronavirus pandemic has forced many consumers to cook and
eat at home, hurting the food-service industry. Dining restrictions
have squeezed sales and profits of restaurants, forcing thousands
to shut down for good. Sysco, which generates more than $50 billion
in annual sales as one of the largest food-service distributors in
the U.S., said it is using this time to make changes to its
business and gain market share.
Mr. Alt will be tasked with managing expenses as consumer demand
continues to fluctuate during the pandemic. He will also oversee
how Sysco controls inventory of food, payroll and cash flow during
the winter, when the company expects pandemic-related restrictions
to tighten. In the longer term, the new finance chief will lead
efforts to cut costs, win customers and make investments, Mr.
Hourican said.
Sysco recently said it will waive order minimums for restaurant
customers to help them through the pandemic. Earlier this month,
the company said it added $300 million of new business in the
latest quarter, while it generated $11.8 billion of sales, a 23%
decline from the same period a year earlier. The company also said
it remains on track to cut $350 million of costs in fiscal
2021.
In his new role, Mr. Alt is returning to the food business
following a nearly three-year stint in the beauty world. He held
various roles at Target Corp. for nearly six years before joining
Sally Beauty. Before that, he was an executive at Hillshire Brands
Co., a packaged-food company that is now part of Tyson Foods
Inc.
Mr. Grade, who has worked at Sysco for more than 20 years, was
appointed chief financial officer in 2015. In his new role, he will
focus on identifying new sources of growth, including deal
opportunities, the company said.
Write to Jaewon Kang at jaewon.kang@wsj.com
(END) Dow Jones Newswires
November 17, 2020 08:28 ET (13:28 GMT)
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