Bunzl PLC
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| LOCK|yl? | LOCK|>^BM | LOCK|$mFQ>#n |
Bunzl Continues To Expand Its Own Brand Expansion With Brazil Acquisition
Business Strategy and Outlook
Bunzl is the largest worldwide distributor of nonfood consumables, inexpensive products essential to clients' businesses, and is the clear leader in a fragmented market. For reference, its largest competitor, Essendant, which competes with Bunzl in office and janitorial products in the United States, generates around $1.5 billion in revenue across its overlapping sectors, only 20%-25% of Bunzl’s US revenue and only 10%-15% of its global revenue. Bunzl’s scale provides a cost advantage, as its sourcing, consolidation, and delivery allow customers to reduce costs and access expertise for products and regulations. Customers also save time and money by outsourcing warehouse storage and distribution to Bunzl.
