Sysco Corporation and specialty coffee franchise operator Reborn Coffee Inc. have entered into a distribution partnership that will allow Reborn Coffee to source its food‑service products through Sysco’s extensive North American network. The agreement gives the coffee chain access to Sysco’s 340 distribution centers across 10 countries and a customer base of roughly 730,000 locations, positioning Reborn Coffee to support its rapid franchise expansion.
Sysco’s recent earnings report for the second quarter of fiscal year 2026 showed an earnings per share of $0.99, beating the consensus estimate of $0.98, while revenue of $20.76 billion fell slightly short of the $20.80 billion estimate. The company’s ability to maintain profitability amid a modest revenue miss underscores the strength of its distribution model and cost controls, giving it the financial flexibility to pursue strategic partnerships such as this one.
Reborn Coffee has been aggressively expanding its footprint, announcing 33 new locations in February 2025 and continuing to grow its national franchise network. CEO Jay Kim said, “This partnership is an important step in building the infrastructure needed to support Reborn Coffee’s national franchise growth. A strong distribution platform is essential to scaling a franchise system while protecting product quality and brand consistency.” The partnership will provide the logistics backbone required to maintain consistency across the chain’s expanding sites.
The specialty coffee market is experiencing robust growth, with global sales projected to rise from $101.6 billion in 2024 to $183.0 billion by 2030, a compound annual growth rate of 10.4%. In North America, the segment is expected to grow from $22.6 billion in 2024 to $58.3 billion by 2031, driven by consumer demand for high‑quality, sustainably sourced coffee. Sysco’s entry into this segment aligns with the broader industry trend and positions it to capture a share of the expanding market.
For Sysco, the partnership represents a strategic move to deepen its presence in the specialty coffee segment, a growing area that complements its core food‑service distribution business. For Reborn Coffee, the alliance provides a scalable supply chain that supports its rapid expansion and helps safeguard product quality across new locations. Together, the two companies are poised to capitalize on the specialty coffee boom while reinforcing their respective growth trajectories.
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