Food wholesalers industry

Sales growth among food wholesalers has been minimal in 1994, excepting the gains yielded by Fleming's purchase of Scrivner. The reasons are two: nonexistent food price inflation and competition from grocery chains, discount drugstores and mass merchandisers. Wholesalers are also laboring under the high cost of ongoing acquisitions. But these should help make the industry profitable by 1997. The group is recommended to long-term investors only.