Foodbuy Advantage October 2018 I Canada
Preferred supplier contract extension! Details inside.
OCTOBER CONTENTS
Program Announcements
CHEF’S CORNER
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Learn about Foodbuy’s new and extended contracts to take advantage of the savings.
Program Highlights
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Corporate Chef, Compass Group Canada
for Prime Ministers and many dignitaries and Royalty from around the world.
Chef Wayne Nichols began his culinary career in his grandma’s kitchen. Growing up on a farm and cooking with his grandma is where he developed a passion for cooking that he has carried with him during his career. “You need to have a passion and love for food” Chef Wayne says, “growing up in my grandma’s kitchen is where I grew to love local, fresh and seasonal ingredients. Great food does not need to be complicated when you start with the right ingredients.”
During his career Chef Wayne has entered many culinary competitions and has been awarded gold and silver medals as well as first prize overall. As Executive Chef he wrote a column for a local magazine the Forest City Connection. He has appeared as a regular guest on the London morning show “New Day” with cooking segments. Chef Wayne has always enjoyed passing on his passion for food and his love for the Culinary Industry.
Learn about upcoming promotions, changes to existing programs and new product news.
Program Updates
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Determine the month’s highs and lows by specific category and/or supplier.
Market & Commodity News Find out the latest communications in the market that may impact current programs.
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Chef Wayne is a graduate of Humber College with honours in the Culinary Management program. He completed his apprenticeship at the Harbour Castle Hilton in Toronto, Ontario under the direction of world renown and Corporate Executive Chef for Hilton International, Albert Schnell. Continuing his career, he worked across Canada in numerous hotels including, The Four Seasons, Delta and Canadian Pacific (Fairmont). He fulfilled one of his dreams and has worked on a Cruise Ship with Royal Caribbean Cruise Lines. Chef Wayne has had the privilege of cooking
In his role as Foodbuy’s Corporate Executive Chef. Chef Wayne will be working closely with the Foodbuy team to ensure we are contracting the right products, for your business. He will be helping to lead the Culinary Council by engaging your sector chefs to ensure that Foodbuy is helping you deliver on your three pillars of Great Culinary Offer, Guest Experience and Low Cost Operator. “Simply put…Food is the Focus” says Chef Wayne. “It is all about inspiring passion and motivating talent, defining standards and delivering culinary excellence”. Look for Chef Wayne’s monthly column in the Foodbuy Advantage where he will be highlighting various Foodbuy initiatives, sharing culinary tips and best practices and featuring some of your very own sector chefs! 2
PROGRAM ANNOUNCEMENTS Foodbuy Extends Contract with Maple Leaf Foods to 2020 Maple Leaf makes delicious, high-quality products with real, simple ingredients to nourish Canadian families. We are pleased to announce our preferred supplier of sausage, deli meats, cooked bacon and halal poultry has extended their contract to December 31, 2020. We have also negotiated some additional categories in commodity chicken and pork, including adding them as a secondary supplier of boxed meats (excluding cooked burgers and meatballs), and breaded poultry.
Foodbuy Advantage Canada I October 2018
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PROGRAM ANNOUNCEMENTS RED BULL now available at Sysco! Red Bull is the leading energy drink in the market with a worldwide brand. It is a beverage sale opportunity throughout the day – on the road, during lectures, at work, while doing sports, playing video games or going out day or night. We are working with Red Bull to grow our sales in this category –
the energy beverage category has grown at 29.8% and we have a great opportunity to drive more revenue. The standard and sugar free are core SKUs to stock but be sure to offer your customers some of the other flavours, Coconut was launched this summer and has been a great success.
Foodbuy Advantage Canada I October 2018
We have worked with Red Bull to make their products more easily available for our units. You can now order the products below from the listed Sysco OpCos! Products: • Red Bull Original 250 ml • Red Bull Sugar Free 250 ml • Selection of Coconut Twist, Yellow Edition, Blue Edition, Green Edition Sysco OpCos: • Edmonton • Regina • Vancouver • Victoria • Winnipeg • Southwest Ontario
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PROGRAM ANNOUNCEMENTS GRAND & TOY Office Supplies We’d like to announce an exciting new partnership with Grand & Toy for all our Office Supply needs. With over 136 years in the industry, Grand & Toy has created a name for itself as a leader in the office/facilities supplies industry. Compass Group Canada can now benefit from Grand & Toy’s extensive product selection and services.
• North American Supplier Alignment and volume leveraging Through Grand & Toy, we now have more choices and deeper savings. With its simple-to-use ordering system and customized shopping experience, Grand & Toy will make our lives a little less complicated and a lot more productive.
Why did we choose Grand & Toy? • One-stop procurement solution across a wide selection of product categories including: office supplies, facility supplies, ink & toner, computer supplies, furniture and much more • Next day delivery - with ease of order tracking • Simple-to-use ordering system and a Compass Group Canada customized shopping experience • Dedicated Account Manager - with a commitment to helping us to meet our unique business needs • Live Inventory what you see is what you pay • Live Online Help Messenger feature should you need assistance navigating the site Foodbuy Advantage Canada I October 2018
Grand & Toy is here to help throughout the transition. If you have any questions about their products and services, you can learn more about the company at grandandtoy.com or call their award-winning customer call centre at 1-866-391-8111 [E/F]. You can also contact your account manager Erin Otvos at erinotvos@grandandtoy.com.
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PROGRAM HIGHLIGHTS
AMBIENT WATER 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. Water is featured front and center on our Cold Beverage Planograms since it is our most profitable beverage. Still and sparkling water category is growing across all demographic groups. We should be driving all day hydration by
offering our 1L sizes in both everyday and premium waters
Ambient water should be merchandised at registers and in the high traffic areas of your units for increased sales. You should aim to bundle bottled water with a snack.
Stay tuned for our F2019 Cold Beverage Planogram (releasing shortly) for a list of 1L ambient water’s that are part of our Cold Beverage Strategy!
through the use of our ambient water racks!
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PROGRAM HIGHLIGHTS Basa Supply Constraints Lead to Long Term Pricing Highs Increase primarily on BASA as indicated in the July Member Advantage will continue to increase (19%). Foodbuy and Highliner have been closely monitoring the Basa market as there continues to be reduced supply which is leading to higher prices. The supply issues are due to the following economic and environmental factors: • • •
China pulling consumption is exceeding US consumption Weather conditions are impacting survival leading to production issues The USDA’s cut-off date for shipments has been delayed creating uncertainty in the market. Foodbuy Recommends moving to Pollock.
Decreases on black and white tiger shrimp (avg 3-6%) Increase on haddock due to decrease in quota (avg 3%)
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PROGRAM HIGHLIGHTS Canadian Dairy Commission (CDC) - Dairy Changes Canadian Dairy Commission (CDC) announced an advance on the February 2019 price adjustment of 4.1%. Foodbuy delayed the CDC advanced price adjustment scheduled for September 1st to October 1st 2018 saving members $81,464 on invoice. The actual price increase varies based on the butterfat content of each class but averages 4.1%. The higher the butterfat percentage, the higher the price increase. Vendors affected by the increase: • Agropur • Saputo • Parmalat • Gay Lea • Ultima • Danone (Delayed to November 1st) For more information on the CDC Adjustment please reach out to BuySmart.
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PROGRAM UPDATES Program Updates - October 2018 The information below offers a snapshot of some of the price changes customers can expect to see in October. Please review complete list of updates here.
Protein - Raw Bacon Olymel 27% Price Decrease The seasonal upswing of bacon is completed, now moved into the seasonal low period. Forecast for next month fairly stable. Monthly impact of $16,023 decrease.
Egg Burnbrae Farms 3.81% Price Decrease EFC price decrease in last quarter. Category negotiated 3.81% price decrease from October 2018 to December 2018. $28,142 price decrease per month. $82,427 in three months.
Foodbuy Advantage Canada I October 2018
Various Kraft Heinz 2.11% - 3.64% Trade Increase Trade increase of 2.11% - 3.64%. Foodbuy delayed price increase for 8 months resulting in a $48K savings. Opt for our preferred manufacturers in cheese and tomato juice categories.
Potato McCain $0.04/lb Price Increase FoodService Frozen trade increase announced in July 2018 of $0.04 – $0.30/Lbs will be going into effect October 2018.
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MARKET & COMMODITY NEWS Commodity Pricing Pressure There is significant pricing pressure on paper as a commodity – we’re seeing it in all areas from copy paper to paper cups to corrugated to towel and tissue. Both recycled and virgin are equally going up as a commodity. Cost of raw material, pulp both recycled and virgin are increasing annually, so are transportation costs. Manufacturer: Kimberly Clark Price Increase: 9% effective October 1, 2018 Impacted Items: Towel and Tissue Recommendation for Mitigation: Transition to Cascades for paper goods, as it is a Canadian supplier.
What does this mean? Kimberly Clark has issued a 9% trade increase. Foodbuy will only see 4% as of October 1st 2018, we haven’t taken an increase from KC in 7 years. Our recommendation is to move to our preferred supplier Cascades to mitigate this increase to your operations. For more information on this increase and what to do, please reach out to BuySmart.
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MARKET & COMMODITY NEWS Food and Non-Food Tariff Based Price Increases Possible On July 1, 2018 the Canadian Government imposed tariffs on select U.S. products that are imported by Canada. These tariffs will likely impact pricing on popular products in the Canadian market, and consumers may see price increases on various items beginning in the next few months. Foodbuy is closely monitoring the situation and taking appropriate measures to ensure that alternative products are made available to our customers whenever possible. We remain committed to providing our customers with quality products at the best value possible, and we will continue to provide regular communication when there are areas where we can mitigate price increases happening due to uncontrollable market events. Products and services currently impacted by these conditions include: Manufacturer: Georgia Pacific Price Increase: 10% effective July 1, 2018 Impacted Items: A complete list of impacted items is attached. Recommendation for Mitigation: Transition to Cascades for paper goods, as it is a Canadian supplier. Manufacturer: Rubbermaid Price Increase: 7% effective September 1, 2018 Impacted Items: Hygientic or plastic toilet articles, tableware and kitchenware. Manufacturer: Ecolab Price Increase: 4.2% effective September 1, 2018 Impacted Items: Dishwasher detergents, air freshers and hand care products. Manufacturer: Erie Meats Price Increase: 2.6% effective July 1, 2018 Impacted Items: Diced chicken.
Manufacturer: Rosemount Price Increase: 6.9% effective September 1, 2018 Impacted Items: Diced chicken and chicken meatballs. Recommendation for Mitigation: Move to Erie Meats (preferred vendor) for diced chicken. Manufacturer: Smucker Foods of Canada Price Increase: 7% effective September 1, 2018 Impacted Items: Strawberry Jam and 4 Coffee Skus (Java Coast, Folgers and Moka D’Oro Skus). Recommendation for Mitigation: Move to Kraft Heinz our Preferred Supplier for Jam. Manufacturer: The French’s Price Increase: 6.97% effective September 1, 2018 Impacted Items: Mixed Condiments & Mixed Seasonings and Other Sauces. Franks Red Hot and Cattlemen’s affected brands. Recommendation for Mitigation: Move to Kraft Heinz the preferred manufacturer for BBQ sauce.
Foodbuy will continue to update this list with recommendations as we are made aware of price changes from other suppliers. Please don’t hesitate to reach out if you have questions. Sincerely, Keith Carlson VP, Category Sourcing and Development, Foodbuy E:keith.carlson@foodbuy.ca, O:905.568.4636 x.7442 Foodbuy Advantage Canada I October 2018
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