June 2019
New Plant-based Beverage Contract Details inside.
JUNE CONTENTS
CHEF’S CORNER Jill Smith While in Ottawa she found herself working in a busy steak house as well as a staple at the annual Food and Wine Show as well as TV appearances for live demos and teaching classes at the LCBO. When she moved back to Toronto she joined the Starwood group of hotels before finding her way to Compass Group.
Program Announcements
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Learn about Foodbuy’s new and extended contracts to take advantage of the savings.
Program Highlights
Jill Smith, Sr Executive Chef—Compass One Healthcare
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Learn about upcoming promotions, changes to existing programs and new product news.
Price Watch
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Determine the month’s highs and lows by specific category and/or supplier.
Market & Commodity News
Jill started her career as an Addictions Councilor working with high risk populations. While working in social work she always found herself cooking, creating and helping people heal thru food. She decided to make the jump and change careers to follow her true passion, cooking. She earned an apprenticeship at a Resort on Stoney Lake working in all facets of the business as well as creating recipes for the corporate office. During the apprenticeship she graduated with Honours from George Brown College in Toronto and moved to Ottawa to further her career.
She has held many positions during her 11 years with Compass including Chef with Eurest, Retail Manager with Morrison, Food Service and EVS Manager, Regional Chef with Marquise as well as her current role as Executive Chef of Compass One Healthcare. This past year Jill has been a part of several new initiatives with Compass One including the Teaching Kitchen, a national award winner of the DUX lifestyle category and the Comfort Kitchen new method of patient meal delivery at Joseph Brant Hospital.
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Find out the latest communications in the market that June impact current programs.
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CHEF’S CORNER
MEDITERRANEAN SALMON
INGREDIENTS Serves 4
• 4 Salmon Loin, 4 oz each • 3 Tbs Olive Oil • 1 Garlic Clove, minced • 1 C Cherry or Cluster Tomatoes • 1 Tbs Capers, drained and rinsed • 1/4 C Black Olives, Pitted and halved • 2 Sprigs Basil leaves, torn
PREPARATION 1. Pre Heat Oven to 425F 2. In a 9 X 13 baking dish toss together Oil, Tomatoes, Garlic, Olives and Capers. 3. Roast at 425F for 8-10 min until Tomatoes are blistered and Garlic is fragrant. 4. Remove From Heat and add torn Basil leaves. 5. Pat Salmon dry and season with Salt and pepper, both sides. 6. Sear Salmon skin side down in a non-stick pan over medium heat 3 min each side. 7. Serve Salmon with the warm Tomato Salsa.
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PROGRAM ANNOUNCEMENTS DANONE - Plant-based Beverage Contract Foodbuy is pleased to announce a new three year plant-based beverage contract with Danone on all Silk branded products including yogurt effective March 1, 2019. The plant-based beverage category is fast growing with 22% YOY increase on volume. We are currently buying from 11 different manufacturers. Danone’s Silk brand is our new preferred supplier for products such as Almond milk, Soy milk and other plant-based beverages. This new contract will not only provide significant unit savings. For more than 15 years, Danone has brought consumers simple, delicious food with the philosophy of starting with ingredients responsibly produced and kept as close to nature as possible. With no artificial colours, flavours, high-fructose corn syrup and dairy-free, Silk® products are the best choice. More information on Silk® products can be accessed here.
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PROGRAM ANNOUNCEMENTS SUN RYPE - New Contract Foodbuy is pleased to announce a new two year snack and beverage contract with Sun Rype effective June 1, 2019. We are happy to continue this partnership and look forward to working together. With a 6.7% price increase due to the market, we are currently evaluating listing some new products and innovation. Sun Rype is a Canadian beverage and snack company based in Kelowna, BC, which is right in the heart of the lush Okanagan Valley. Since way back in 1946, they have been providing Canadian families with quality products they can feel good about. The great taste of simple ingredients with a balance of healthy goodness shines through.
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PROGRAM ANNOUNCEMENTS NESTLÉ - Nestle Ice-Cream Mini Catalogue Coming soon! In support of the Nestlé and Foodbuy partnership, we are pleased to announce an upcoming mini catalogue of Nestlé ice cream. Stay tuned for details!
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PROGRAM HIGHLIGHTS KIND - New Product Size We are pleased to announce an addition to the KIND® brand product portfolio. KIND®’s top selling bars are now available in half their size! Back by popular demand are KIND® Minis - all your favorite flavors, in smaller, 100 calorie portions. KIND® products are made from nutritionally-dense ingredients like whole nuts, fruits and whole grains - no secret ingredients and no artificial flavors, preservatives or sweeteners. Nothing to hide® Maximize impulse purchases and trial on the KIND brand! Available in ‘Retail Ready’ Counter Unit: • KIND® Minis Changemaker • 48 x 20 g bars • 2 x 48 packs per inner = 96 units per master case More information on this product can be accessed here.
mini bar, massive flavour
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PROGRAM HIGHLIGHTS Can I get you a water? Why do more than 60% of the Canadian households drink bottled water? And, who are these people? They come from every province and they span every age group. They’re on -the-go people who want to stay hydrated and they’re taking their bottled water along with them. We do our part by making sure their favorite brands are always where they want them. Premium, sparkling and enhanced waters are trending right now. A range of sizes is also important, as ensuring your ambient displays have a healthy mix of 1 L bottles will bring in incremental sales! Bottled water is one of the fastest growing sales categories in Canada, and will most likely become the largest retail beverage category in the next 10 years. Innovation continues to drive the category as water comes in various sizes and prices, and consumers appreciate the portability and selections. Consumers enjoy both water that is chilled and ambient, sparkling water should always be offered chilled. The consumer need for each water segment is different – can be
driven by basic thirst or a meal enhancement which means it is important to offer variety within the category across still, sparkling, flavors and sizes. Spa Water - DO NOT OFFER FREE WATER (Spa Water, Aqua Fresca, Bottle Filling Stations, etc) in locations where you sell bottled water. Offering free water to consumers will erode your sales and profitability. Premium Water - Consumers identify value in branded, premium priced water. Evian, ARTO LifeWTR, Perrier and Smartwater are some of the fastest growing. Regardless of business type or demographic, these brands should be made available for sale to guests to complement your overall water strategy. More information accessed here.
can
easy steps to increas ing
YOUR BOTTLED WATER SALES
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Since 2012,
nearly 2.5 million new Canadian households now purchase sparkling water
Water category
has grown 40
in the last 5 years and is the #2 category after CSDs
be We expect that the sparkling water category will be purchased by nearly ⅓ of all Canadian households by 2020
The Power of Three Cashiers
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Did You Know?
average registers/unit
each cashier
Engage associates to sell just six extra bottles of water a day Use the “can I get you a water?” stickers for an easy reminder
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additional
Utilize the Aquafina, Smartwater, or Evian merchandising racks at the registers (holds 6 bottles) Hold a cashier contest to engage associates that help us drive bottled water sales
Sparkling flavoured water is growing at 9
+150 cases/y ear
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PROGRAM HIGHLIGHTS BEYOND MEAT - Altered Formula Foodbuy would like to inform you of a recent alteration in The Beyond Burger® formula including a revised SCC code. The Beyond Burger®’s new formula will maintain the upsides of a plant-based meal with more protein, less total fat, less saturated fat and no cholesterol than that of a traditional burger. The world’s first plant-based burger, juicy and meaty deliciousness, just better. Old Code: Beyond Meat BURGER VEG BEYOND PATTY DIN: 4826164 UCC: 852629004668 New Code: Beyond Meat BURGER VEG BEYOND PATTY DIN:5361361 UCC: 852629004996 The Beyond Burger® is sold in the MEAT AISLE at more than 1,300 grocery stores nationwide, and on menus alongside traditional burgers at more than 100 restaurants. More information on this new formula can be accessed here.
THE
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PRICE WATCH Price Watch - June 2019 The information below offers a snapshot of some of the price changes customers can expect to see in June. Please review complete list of updates here.
Salads/Mayo/Vinegar/BBQ Sauces/Condiments & Spreads KraftHeinz 4% Price Increase Price Increase negotiated through Contract Extension until 12/31/2021.
Foodbuy Advantage Canada I June 2019
Snacks & Beverages Sun Rype 6.7% Price Increase We have agreed to a $5k BDF for a two year agreement and growth incentive- up to an additional 3%.
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MARKET & COMMODITY NEWS African Swine Fever - What does this mean for pork? African Swine Fever (ASF) is a highly transmissable virus without a vaccine making it difficult to contain and resutling in a high mortality rate. Although this is the most feared hog disease globally, there are no human health risks. China, the largest consumer of pork, holds 50% of the worlds hog production currently creating a real and growing concern as the disease spreads. ASF has also been found in Europe with concerns of affecting production even further. Disruption in China’s hog production will be felt around the world increasing reliance on pork imports from other countries. It would also drive global protein markets higher and likely impact other proteins including beef and poultry as a replacement. As of today, markets for pork are starting to move upwards with speculations of a shortage for two to five years due to the slow gestation period of hogs resulting in regeneration challenges. With higher prices, the market will be unstable also not knowing what will come of trade events further delaying various Canadian shipments. There is still much uncertainty around the extent of the problem and its impact to global markets, but Foodbuy is closely monitoring events and will keep you informed. More information on African Swine Fever can be accessed here.
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MARKET & COMMODITY NEWS
Culinary Solutions - Pasta Rationalization Foodbuy would like to announce that we have completed a SKU Rationalization on Pasta. Rationalizations, completed by sectors and led by the culinary team, are an important step in our savings initiative providing visible cost savings and improvements to rebates. The completed rationalization finished with 31 SKU’s on pasta after starting with 293 SKU’s. We will be reviewing these SKU’s in 6 months with the Culinary Solutions Foodbuy Team to ensure that our menus have the variety we need and we are not losing any cost savings because of additional SKU’s being added. We will also be looking at any new innovation in this category at that time to help with our overall cost savings and our guest satisfaction. These changes will take effect as of June 1, 2019. Below is the overall cost savings with the completed rationalization. Attached is a spreadsheet with the 31 approved SKU’s of pasta and the complete listings of pasta products that will help you identify what your new like for like product will be based on what you were currently purchasing. Our approved suppliers for pasta are ItalPasta, O’ Sole Mio, Wing’s and AGT Foods. If you have any questions please let us know. More information on this rationalization can be accessed here.
Total cost savings = total opportunity of $142,829.
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MARKET & COMMODITY NEWS
Culinary Solutions - Plant-based Beverage Rationalization Foodbuy would like to announce that we have completed a SKU Rationalization on Plantbased Beverages. Rationalizations, completed by sectors and led by the culinary team, are an important step in our savings initiative providing visible cost savings and improvements to rebates. Plant based beverages is a growing category and we want to ensure that we have the right partnership to drive the right products and value to you and your guests. Danone Silk is the current preferred vendor for plant based beverages with MOG listings effective June 1. If there are new items you would like listed please work with your FIM and Culinary leader to include. We will also work with other Sectors to partner where possible to help drive the listings. The completed rationalization finished with 19 SKU’s on plant based beverages after starting with 47 SKU’s. We will be reviewing these SKU’s in 6 months with the Culinary Solutions Foodbuy Team to ensure that our menus have the variety we need and we are not losing any cost savings because of additional SKU’s being added. We will also be looking at any new innovation in this category at that time to help with our overall cost savings and our guest satisfaction. These changes will take effect as of June 1, 2019. Below is the overall cost savings with the completed rationalization. We have also included the six items that cover 81% of total spend and the Sysco codes for your ease of ordering. Cost savings opportunities will only be eligible through Sysco. We are focused on moving volume from DSD to Sysco and updating the listing summary on a monthly basis. If you have any questions please let us know. More information on this rationalization can be accessed here.
Total cost savings = total opportunity of $83,267.93.
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