Hoshizaki Acquires Business from U.S. Distributor

Strengthening Sales in Southeastern United States, Aiming to Expand Market Share

HOSHIZAKI CORPORATION (Head office: Toyoake City, Aichi; President & CEO: Yasuhiro Kobayashi; hereafter “Hoshizaki”) acquired the business of Cannon Marketing, Inc. (CMI), a foodservice equipment distributor in the United States, on January 2, 2025(local time in the U.S.). CMI’s business will merge into HOSHIZAKI SOUTHEASTERN DISTRIBUTION CENTER, INC. (Head office: Orlando, Florida, the U.S.), which handles sales and maintenance in the Southeast United States and is a consolidated subsidiary of Hoshizaki Corporation.

For more than 30 years, CMI has been a distributor of HOSHIZAKI AMERICA, headquartered in Peachtree City, Georgia, and has been engaged in sales in the Southeastern United States in North Carolina, South Carolina, and Eastern Tennessee. CMI boasts a strong affinity with the Hoshizaki Alliance and extensive product knowledge, with 95% of its sales lineup comprising Hoshizaki ice machines and refrigeration products, while also serving as a sales representative for Jackson dishwashers. With the acquisition of CMI, Hoshizaki aims to further expand sales in the Southeast region.

■Current Status and Challenges of Hoshizaki's Sales in the United States

Hoshizaki began its business in the United States in 1986 by selling ice machines. When it began selling commercial refrigeration in 2001, Hoshizaki leveraged its existing commercial distribution of ice machines. Since its entry into the United States, Hoshizaki has established 6 Distribution Centers with 15 locations in the Americas and continues to acquire businesses to expand its sales network.

■Aiming to Expand Sales of Commercial Refrigeration

Currently, the majority of Hoshizaki-branded product sales in the United States come from ice makers. However, to achieve further business expansion, the company is focusing on strengthening the sales of commercial refrigeration. As part of this strategy, Hoshizaki is revising its sales channels for commercial refrigeration through external distributors, and this business acquisition plays a key role in that effort. Moving forward, the company aims to increase the volume of both ice makers and commercial refrigeration handled by its own Distribution Centers. By enhancing direct sales from its Distribution Centers to dealers, Hoshizaki plans to actively collaborate with both in-house sales staff and independent sales representatives, striving to expand its market share in the United States.

<Reference> Commercial Flow of Manufacturer Products in the United States

In the United States, manufacturers typically sell their products through "distributors" to "dealers" (retailers), who then sell to end-users, the final customers. In some cases, distributors may also function as dealers. In the food service equipment industry, ice makers are generally sold through the traditional distributor-to-dealer channels. In contrast, commercial refrigeration is often sold directly from manufacturers to dealers, bypassing distributors. Additionally, due to the vast geographic size of the United States, there exists a sales outsourcing business known as "sales representatives" or "sales reps." These sales reps receive a commission only when a deal is closed, while the actual delivery of products is handled by the distributors.