Foodbuy Advantage December 2017

Foodbuy Advantage New contracted programs Program details

Belmont Meats offers new burger options to Compass Group units!

Price fluctuations Market and commodity trends

December 2017 Program

Program

Price

Market and Commodity

Announcements

Highlights

Changes

News

Program Announcements Be on the lookout for December’s Foodbuy Feature featuring Bread through Broadline!

Last month, you should have received our first edition of the Foodbuy Feature, highlighting fish and seafood products from some of Foodbuy’s most preferred fish and seafood suppliers.

In December, the Foodbuy Feature will highlight our program on bread available through broadline and introduce you to some of the great products available from Weston, Mission, Arytza, Bridor and La Danoiserie, available through distribution.

December’s Foodbuy Feature will be published the first week of December with the goal of informing our customers of the great products and services they can receive from some of our trusted suppliers, as well as providing insight into optimizing purchases and assisting in generating savings. The information in the Foodbuy Feature includes specific supplier information and product specs for some of their most popular products. We also provide stock information at Sysco.

December is Bread through Broadline month. Be on the look out for the Foodbuy Feature highlighting our favourite Frozen Bread suppliers!

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Program Announcements Belmont Meats Introduces New Family of Superior Quality Burgers Belmont Meats, Foodbuy’s preferred supplier of quality meats has introduced two new burgers available to Compass Group units. The 4 oz. Coyote Jack burger and the 5.9 oz. Beef Patty that were previously contracted with Erie Meats are now available through Belmont Meats. These burgers were introduced in October, and great additions to lunch and dinner menus. Even with raw material costs up and down over the past years, Belmont Meats was able to secure raw material to cover the next costs up until October 2018 with no price increase in current pricing.

Belmont continues to work with Foodbuy to maximize volumes with other key customers allowing us to get the best product at the best costs.

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Program Announcements Foodbuy’s Partnership With Weston Grows as GlutenFree Diets Increase in Popularity In the past year, Foodbuy has seen dramatic growth in its partnership with Weston’s All But Gluten line, a gluten-free bread brand whose products have been a huge hit in our healthcare channel. In the last year, gluten-free items have been appearing more and more on restaurant and cafe menus and consumers have been making the switch to diets that contain less gluten.

All But Gluten offers baked goods like bread, brownies, muffins, hamburger buns and more that are baked in a certified gluten-free, nut-free and diary-free bakery and made with only the best ingredients on the market. This brand is certified by the Canadian Celiac Association’s Gluten-Free Certification Program and allows consumers with allergies to enjoy all the delicious bakery items that others enjoy.

Learn more about Weston’s All But Gluten products here, and contact your account manager to find out how you can get them on your menus today.

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Program Announcements Foodbuy and Bamford Move to Weekly Produce Pricing to Better Serve our Customers Beginning December 4th, 2017, Foodbuy customers will start to see weekly pricing on contracted items from Bamford Produce instead of the quarterly pricing model that was previously in place. Foodbuy and Bamford Produce are working together to make this change in an effort to align the North American markets and use the volume created by the U.S. and Canada combined to offer better pricing for all Foodbuy customers.

The biggest benefit of this new model is that pricing on contracted, imported and local produce items will be more aligned with the market which will make Foodbuy and Bamford more competitive on a basket of produce items.

Bamford Produce has rigid food safety guidelines. They recently went through a BRC audit and achieved an “A� rating. By working in conjunction with the U.S., Bamford Produce only uses Grower Shippers that have all food safety requirements in place. All local growers are required to have proper food safety standards by way of GAP analysis as well.

Units and Members will not see any change to the ordering process, however, they will see changes in pricing each week. Each Thursday, Foodbuy and Bamford will receive a pricing update and push it to our customers Friday. Prices are effective from Monday until the following Sunday. Customers will see that price reflected the next Monday in My Orders. Please note that orders placed on Friday for Monday delivery, invoices will reflect Monday pricing.

There will be more information to come this month about this exciting change. If you have any questions please contact your FIM.

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Program Announcements Foodbuy Successfully Completes Early Renegotiation with Agropur Agropur has been Foodbuy’s preferred fluid dairy supplier in Ontario, Quebec, New Brunswick, Vancouver Island and British Columbia since 2004. Annually, Foodbuy purchases $18.4 million of fluid dairy from Agropur ranging in products like milk and cream to cottage cheese and sour cream.

This year, Foodbuy had an opportunity to tactily negotiate an early contract renewal to create savings for Foodbuy and Compass Group units. Foodbuy successfully renegotiated a new, 3-year contract beginning July 31, 2017 and expiring July 31, 2020.

Addtionally, Foodbuy completed a benchmarking exercise in which five unique SKUs were compared in price and purchase volume to Agropur’s competitors - Saputo and Parmalat. The SKUs evaluated were popular products purchased by our customers - 10% Cream 10 Lt; 2% Milk 10 Lt; 2% Milk 48/200 Ml; 1% Chocolate Milk 2/10 Lt; and Chocolate Milk 48/200 Ml. In this cost analysis, Foodbuy found that Agropur products were priced 18% more competitively than Saputo and Parmalat.

Foodbuy and Compass have achieved a 97% compliance rate for Agropur products, and we hope to keep up this momentum in 2018.

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Program Announcements Kehan Food Imports Offers Unique Ways to Spice Up Your Menus Kehan Food Imports is one of Foodbuy’s preferred suppliers in the specialty ingredients category. Kehan Food Imports provides every ingredient you could imagine, from various spices, chocolates, vanillas and more. With more than 1200 products in their catalog, they ensure their customers are able to create unique, flavorful meals a moment’s notice.

Popular products include spices like saffron, specialty oils and vinegars and even gastronomy products for the most scientific of chefs. Kehan Food Imports is located in Toronto which aids in distribution and is so customer-focused, they will track down even the rarest ingredients for you if for some reason they do not have it.

To learn more about Kehan Food Imports and how to become a Member, see the Kehan Food Imports Information Sheet here.

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Program Announcements Retail Success with Cold Beverages: How to Maximize Opportunity in Your Business There are five major retail opportunities all operators can use to enhance their retail beverage sales.

These opportunities include: CORE SKU Optimization Take a look a the core SKUs offered in your cafe. Are all core SKUs available and are all categories represented? Are the beverages in the coolers COLD? Is pricing visible in the cooler?

Ambient Water Ambient water should be available in EVERY outlet and by EVERY register. Ensure value, core and premium water options are available in 591 mL and 1L formats and are easily visible.

Merchandising Target interruption points throughout cafe to drive impulse sales. Leverage counter top and floorstanding merchandisers wherever possible. Strategically place ice bins at food and cash stations to drive impulse purchases.

Promo Execution Is the current promotional POS in a high-traffic highly visible location? Is the beverage merchandised and promoted alongside the POS materials? Are associates up selling beverages?

Bundling Are meal deals evident? Always merchandise cold beverages nearby food stations to encourage beverage and food pairings. Bundle products to capture all day parts - leverage ideas from past day part

Are you making the most out of your beverage program?

Follow these tips to be sure!

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Program Highlights Foodbuy Has Successfully Negotiated Lower Sugar Prices for Our Customers Foodbuy has negotiated a new contract with Redpath, our preferred sugar supplier which results in a 2% price decrease on all Redpath sugar products. This price decrease will be in place for the next 6 months, and has created a cost savings of $8,600f for all Compass Group units.

Olymel Bacon Prices Decrease in December by 27% In December, Foodbuy customers will see a 27% price decrease on Yorkmont bacon. This price decrease is a result of stabilization in the market and an evening out of supply and demand. As we continue into 2018, bacon prices are expected to remain somewhat stable.

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Program Updates Program Updates December 2017 The information below offers a snapshot of some of the price changes customers can expect to see in December.

Category

Supplier

Effective Date

Foodbuy Monthly Impact %

Type of Change

Reason for Change

Bacon

Olymel, Yorkmont Bacon

12/2017

27%

Price Decrease

Commodity Index Adjustment

Sugar

Redpath

12/2017

2%

Price Decrease

Program Renegotiation

Protein

Sysco Fine Meats

12/2017

3%

Price Increase

Commodity Index Adjustment

Soups

Victory’s Kitchen

12/2017

4.45%

Price Increase

Contracted Price Increase

Foodbuy Advantage Canada | December 2017

Foodbuy Negotiated Savings

Price Mitigation

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Market and Commodity News Pork Prices Decrease Now that Summer’s Over This fall and into December we have seen slight decreases in pork prices as the summer season has come to an end. Significant price relief is apparent in pork bellies especially which is just in time for the holiday season.

Beef Prices Continue to Rise The beef market continues to creep upward, as seasonal demand on cuts such as ribs and loins increase.

Chicken Supply is Tight Leading to Increased Prices Supply remains tight in Canada at the current time, putting pressure on price.

Pork prices are down right in time for the holiday season!

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