Why Private Equity Is Acquiring Ethnic Food Distributors Across North America

The $20 Billion Ethnic Food Distribution Opportunity in North America.

Over the past few years, a quiet but powerful shift has been taking place in the food distribution industry. Private equity firms are increasingly investing in ethnic food distributors across North America, recognizing the enormous growth potential in multicultural food markets.

Companies that once served niche immigrant communities are now becoming major distribution platforms, supplying products to mainstream supermarkets, specialty grocers, restaurants, and e-commerce channels. Transactions involving companies such as A1 Cash & Carry in Canada, Ziyad Brothers in the United States, and Best Foods Distributors illustrate how investors are consolidating the sector and building national ethnic food distribution networks.

The Ziyad Brothers Acquisition: A Platform Strategy

One of the most prominent examples is the acquisition of Ziyad Brothers, a leading Middle Eastern food distributor in the United States.

In February 2022, an affiliate of the private equity firm Peak Rock Capital acquired Ziyad Brothers in partnership with the company’s management team and the founding Ziyad family.

The financial terms of the transaction were not publicly disclosed.
Founded in 1966 in Chicago, Ziyad Brothers began as a small bakery serving Middle Eastern communities. Over the decades, the company evolved into a national distribution business, supplying more than 800 SKUs of Middle Eastern and Mediterranean products to supermarkets, specialty retailers, and foodservice channels across North America. Its distribution footprint includes facilities in Illinois, New Jersey, and California, giving the company strong access to major U.S. population centers.

After the acquisition, Peak Rock Capital pursued a platform expansion strategy.

The company quickly began expanding its distribution network through acquisitions:

• In 2023, Ziyad Brothers acquired Vintage Food Corporation, strengthening its distribution capabilities.
• In 2024, it acquired Indo-European Foods to expand its national reach.

This strategy reflects a common private equity playbook: acquire a strong distributor as a platform company, then grow the network by acquiring additional regional distributors.

A1 Cash & Carry: A Similar Trend in Canada

A similar story has unfolded in Canada with A1 Cash & Carry, one of the country’s largest distributors serving ethnic grocery stores and restaurants.

Founded by entrepreneur Amjad “Jay” Parvaiz, A1 Cash & Carry developed into a major supplier to restaurants, retailers, and foodservice businesses. The company distributes a wide range of products including groceries, produce, frozen foods, proteins, and restaurant supplies.

In 2017, Pakistani food company National Foods Limited acquired a controlling stake in A1 Cash & Carry to expand its distribution capabilities in North America. Nearly eight years later, in 2025, the company attracted investment from private equity investors, highlighting the strong valuation growth of ethnic food distributors.

The investment underscored the same strategic logic driving deals across the industry: control of distribution infrastructure in diaspora markets.

Best Foods Distributors and the Consolidation of Ethnic Supply Chains

Another example is Best Foods Inc., a distributor specializing in Mediterranean, Middle Eastern, and international foods. Companies like Best Foods serve a crucial role in connecting global food brands with retailers and restaurants across North America.
Private equity investors are increasingly attracted to these types of distributors because they operate deeply embedded supply chains serving multicultural communities.

Why Private Equity Is Investing in Ethnic Food Distribution

Several factors explain why investors are moving aggressively into the sector.

1. Rapid Growth of Multicultural Food Markets
North America’s immigrant population continues to expand, bringing strong demand for authentic foods from South Asia, the Middle East, Africa, and Latin America. What once served niche communities is now becoming mainstream cuisine in major cities.

2. Fragmented Distribution Networks
Many ethnic food distributors are still family-owned regional businesses. For private equity investors, this fragmentation presents an opportunity to consolidate the market through acquisitions and create larger distribution platforms.

3. Strong Cash Flow and Recurring Demand
Food distribution provides stable, recurring revenue because retailers and restaurants require constant replenishment. This makes the sector particularly attractive to investors seeking reliable cash flow.

4. Control of Market Access
Distributors often hold the key relationships with ethnic grocers, independent retailers, and restaurant chains. By controlling distribution networks, investors gain influence over which brands reach consumers.

The Emerging Strategy: Building National Ethnic Distribution Platforms

The broader trend reveals a clear strategy.

Private equity firms are building large-scale ethnic food distribution platforms by:

1. Acquiring a strong regional distributor
2. Using it as a platform company
3. Acquiring smaller distributors to expand geography and product categories

Over time, these platforms can grow into national networks with the scale to compete with mainstream food distributors.

A New Era for Diaspora Food Commerce

The acquisitions of companies like Ziyad Brothers, A1 Cash & Carry, and Best Foods Distributors highlight a major transformation taking place in the global food industry.
Ethnic food distribution is no longer a niche sector—it is becoming a strategic growth segment attracting institutional investment.

For investors, the thesis is simple:
Growing multicultural populations + fragmented supply chains + rising demand for authentic foods = a powerful consolidation opportunity.
As private equity continues to invest in the sector, the next decade may see the emergence of large national distribution platforms serving diaspora communities across North America.