November Foodbuy Advantage

Foodbuy Advantage New contracted programs

Program details

Market and commodity trends

Price fluctuations

Ordering Tips and Tricks

Foodbuy has extended contracts with 3 of our major healthcare suppliers!

November 2017 Program

Program

Program

Market and Commodity

MyOrders

Announcements

Updates

Highlights

News

Tip of the Month

Program Announcements Foodbuy is Pleased to Extend Partnerships with Apetito Canada, Hospital Food Services and Marsan Foods Foodbuy has successfully renewed contracts with our preferred healthcare suppliers - Apetito Canada, Hospital Food Services and Marsan Foods. These suppliers offer healthcare entrées, texture modified purees and minces, soups, breakfast items and desserts.

The new contracts began October 1, 2017 and will extend through October 31, 2020. Compass Group units are encouraged to continue purchasing products from these suppliers as they are available on the MOGs.

apetito Canada apetito Canada is a preferred supplier for texture modified fruit products, healthcare sauces and purees.

Offering healthy and nutritious healthcare food products that are high quality and great tasting is a major priority for apetito.

With this contract extension, apetito Canada will be implementing a price increase of 4.3% for Compass Group units. Despite this increase, apetito Canada is still Foodbuy’s preferred supplier in this category and units should continue ordering healthcare sauces, purees and fruit products from apetito.

Hospital Food Services (HFS) Hospital Food Services is one of Foodbuy’s preferred suppliers for healthcare products. As of now, Foodbuy’s pricing from HFS will remain the same, however, there will be a price evaluation in April 2018 which may lead to increases.

Marsan Foods Marsan Foods is Foodbuy’s preferred supplier for bulk healthcare entrées. Marsan Foods offers plenty of options for Foodbuy customers at some of the best prices in our industry.

With this new contract extension Marsan Foods will be implementing a price increase of 6.9%. Despite this increase, Marsan Foods is still Foodbuy’s preferred supplier in this category and units should continue ordering healthcare entrées from Marsan Foods.

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Program Announcements Foodbuy’s Shred-it Secure Shredding Services Offer Great Solutions for Customers Shred-it is a preferred Foodbuy supplier and the world leader in the information destruction industry. As an approved vendor, Shred-it offers Foodbuy customers highly cost-effective options in business security.

Key benefits Shred-it can provide include: • Protecting your business from a potential data breach • Ensuring your business is compliant with laws governing records and confidential information • Providing your business with secure locking containers - free of charge - so that your employees have a safe place to discard documents they no longer need To find out more about Foodbuy’s program with Shred-it and how it might be able to ensure success in your business check out our Shred-it Foodbuy Overview here.

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Program Updates Program Updates November 2017 The information below outlines the most current program updates for November 2017. More detailed information about each of these programs can be found in the following pages.

Category

Supplier

Effective Date

Foodbuy Monthly Impact %

Type of Change

Reason for Change

Institutional Chemicals

Ecolab Institutional

11/2017

2.05%

Price Stabilization

Contracted Price Increase

Protein

Sunrise Poultry

11/2017

7%

Price Increase

Commodity Index Adjustment

Sauces and Condiments

The French’s Food Company/ McCormick

11/2017

11%

Price Increase

Input Cost Adjustment

Foodbuy Advantage Canada | November 2017

Foodbuy Negotiated Savings

Price Mitigation

Foodbuy was successful in delaying this price increase by one month which resulted in a cost avoidance of $4,473 for Compass Group units.

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Program Highlights Market Pressures, Result in Price Increases For Institutional Chemicals Market stresses and rising costs of raw materials have created an upward swing in the prices for institutional chemicals used for ware washing and laundry. As a result our preferred supplier of these chemicals, Ecolab will implement a price increase of 2.05% in November. This price increase is based on CPI, PPI and ECI indexes, and have hit many manufacturers in the industry.

Sunrise Farms Implements 7% Price Increase in November Sunrise Farms will implement a 7% price increase on chicken breast effective November 1, 2017.

Over the last six months, there has been a very tight supply on chicken breast in Canada while demand has remained strong. Sunrise Poultry initially requested this price increase in October, but Foodbuy was successful in delaying it by one month until November which created a cost avoidance of $4,473 for Compass Group units.

French’s Brand Sauces And Condiments Will Increase in Price in November In November, The French’s Company will implement an 11% price increase on all sauces and condiments. French’s has not implemented a price increase since 2013.

French’s products are not preferred by Foodbuy in any category, so units should not be actively purchasing their products. Units can avoid this price increase and obtain better pricing by moving all sauces and condiments spend to KraftHeinz instead.

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Market and Commodity News Canadian Dollar Rises Slightly in October The Canadian dollar strengthened in October and was at a rate of $.80 to the American dollar midmonth. While experts cannot say whether this trend will continue, the uptick was a direct result in market commodities which gives a glimpse of hope into the Canadian economy.

Stay tuned for more information about the Canadian economy and food inflation in our Fall/Winter Inflation Report due out in November.

U.S. Hurricane Season Causes Global Orange Juice Prices to Rise Hurricane Irma battered the Florida coast in September and completely destroyed many of the state’s citrus growing regions. As a result, countries around the world have seen a drastic spike in orange juice prices and orange product prices. With farmers experiencing 70% to 100% crop loss, it may take a few years to get back to where the market was before this storm hit.

While experts hope that supply from Brazil and Mexico can fill some of the gaps, it may be a while before Canadians see prices back to normal.

If you are finding orange juice prices are high, try offering other fruit juices as alternatives.

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MyOrders Tip of the Month Did You Know You Can Actually View Your Product Before You Order It? When units place orders in MyOrders, you can actually see what the product looks like before you order it. Click on the item name, and in most cases a picture of a box will appear, this shows you how the product is shipped. When you click on the highlighted yellow arrows that are seen on the box, you’ll be able to see an image of what the product inside looks like.

An example of this is shown in the screenshot below.

Click on these arrows to see the product inside!

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