Foodbuy Advantage November 2018 I Canada
Canadian preferred supplier
Details inside.
NOVEMBER CONTENTS
CHEF’S CORNER Culinary Solutions I want to take this month to update you on our Culinary Solutions Brand for Foodbuy.
• • • • •
Quebec – Line Lapalme ESS – Chef Andrew Hodge ECC – Isaac Connors Corrections – Betty MacDonald Envision – Chef Bradley Yip
Our focus will be on these 5 areas: Cuttings Tastings
Through Culinary Solutions Our Commitment is to Improve Quality While Lowering Cost.
Program Announcements
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Learn about Foodbuy’s new and extended contracts to take advantage of the savings.
Program Highlights
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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
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Find out the latest communications in the market that may impact current programs.
Foodbuy Advantage Canada I November 2018
We are building our focus around these 3 principals to help drive our commitment: 1. Create a partnership between Culinary and Foodbuy to drive culinary solutions through better quality, lower into unit cost and higher volume allowances. 2. Setting up the Sector Culinary Leaders to deliver culinary solutions for their Sector. 3. Culinary Solutions Council aligning to drive culinary solutions for all of Compass Group Canada. I will be working very closely with the culinary leaders to drive this change and help them with culinary solutions for their Sector. The time is here for us to focus on food and our culinary leaders in all of our Sectors. I am proud to say that the culinary leaders are excited with this change and new direction. We will drive this change through the Culinary Solutions Council. The council will meet every month for a half a day. We will use this time to create lasting change to drive our food quality and lower our cost. Culinary Solutions Council • Eurest – TBD • Restaurnat Associates – Chef Andre Blanchet • Chartwells / K12 – Chef Shaun Goswell • Marquise – Chef Robert Mills • Compass One – Chef Jill Smith
Innovation
Corporate Initiatives
Project/ Rationalization Reviews
Sector Best Practices
As the Culinary Solutions Council begin to make product changes and decisions. Your Sector Culinary leader will be sending you updates directly. We will also use the Foodbuy Advantage to help support the Culinary Solutions Council decisions. To promote our Sector Culinary Leaders we will also be featuring them in the Foodbuy Advantage. So look for their bios, pictures and recipes in the coming issues of the Foodbuy Advantage. Stay tuned and enjoy the ride as we drive Food is the Focus and culinary for your Sector. Until next month, I will leave you with this thought… “Never doubt that a small group of thoughtful, committed citizens (or, in our case CHEFS) can change the world; indeed, it’s the only thing that ever has”. -Margaret Reed Happy Cookin’
Chef Wayne 2
PROGRAM ANNOUNCEMENTS Canadian Manufacturer Highlighted On July 1, 2018, Canada imposed a new 10% tariff on select goods produced and imported from the United States direclty impacting the purchasing of paper goods. After the finalization of the USMCA (new NAFTA) deal, we are hoping tariffs will disipate, but have not received any updates on if or when the tariff will be lifted. As a purchaser of toilet paper, paper towel and napkins manufactured in the U.S., our recommendation is to move to our preferred supplier Cascades in the Tissue & Towel category. Cascades is a leader in the production and conversion of corrugated products, tissue paper and specialty products in North America. Known and recognized for its strong environmental practices, Cascades mission is to improve the well-being of people as well as provide sustainable and innovative solutions. As a Canadian manufacturer, their products are not impacted by the tariff. We negotiated a best net price in place with Cascades and recommend converting spend to this preferred supplier in mitigating the tariff increase wherever possible.
Foodbuy Advantage Canada I November 2018
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PROGRAM ANNOUNCEMENTS We have launched our FY2019 Cold Beverage Planogram Guide!
Did You Know?
This guide is a supporting document for units to drive their cold beverage sales through the right products, in the right place at the right price. There is information on our customers and insights into their preferences in the cold beverage categories, supported by the trends in the Canadian market. The key direction that units can find in the guide is the planograms for cooler configurations – these have been designed based on the trends and insights we have seen in the last year. It is crucial for units to follow the planogram guides we have designed in order to grow revenue and grow the cold beverage category. Please contact BuySmart for further information.
The water category
has grown 40 in the last 5 years and is the #2 category after Carbonated Soft Drinks
Ready to drink Tea is a fast growing category – on any given day, over
1.9m Canadians
are drinking tea and the category is
growing 14
70
YOY
of beverages
are purchased with an occasion in mind
51
of people
DO NOT order a beverage without a combo deal Foodbuy Advantage Canada I November 2018
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PROGRAM ANNOUNCEMENTS Christmas Candy! Did you know that there is a 33% increase in confectionery purchases in December? This is an important time of year to offer seasonal products to our consumers and match what is happening in cafes and grocery stores in Canada. We have a great range of product available from the leading brands to drive an increase in confectionery sales leading up to Christmas.
Did You Know? M&Ms are seeing
17 Description
Case SCC
M&Ms Milk Chocolate Red & Green 200g
10058496430013
M&Ms Peanut Red & Green 200g
10058496430044
M&Ms Mint Red & Green 200g
10058496430068
Merryteaser 140g
10058496437128
Candy Egg Mini Festive Floor Pack 168/33 Gr
61200013207
Chocolate Toblerone Assorted Tiny Festive Christmas
10070221007475
Chocolate Mini Egg Christmas 24/33 Gr
00006120001271
Foodbuy Advantage Canada I November 2018
growth
in the market
Merryteasers are seeing
37
growth
in the market
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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 November 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 KELLOGG’S - Product Switch Opportunity for cost saving in culinary with product switch from Premium Plus crackers to Zesta® crackers as a key initiative for low cost provider. Crackers are predominantly used in food court and restaurant environments giving consumers the option to take as an accompaniment to their soup or salad purchase. For the operator, they are an additional product cost to the meal, but it is an advantage in delighting customers with this add on. Zesta® crackers, manufactured by Kellogg’s, have undergone an extensive recipe evaluation and reformulation to improve quality and taste. These crackers have been reviewed centrally and corporately and this switch for the business is highly recommended.
Foodbuy Advantage Canada I November 2018
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PROGRAM UPDATES Program Updates - November 2018 The information below offers a snapshot of some of the price changes customers can expect to see in November. Please review complete list of updates here.
Protein - Raw Bacon Olymel 7% Price Decrease This is likely the bottom of the market coming out of high prices. Expect to see increase again next month. $15,000 decrease/mth.
Various Categories Handgards 8.89% Price Increase Quarterly price increase (diverted Q2 increase). Asked for July 2018 implementation but we pushed out. VA improvement as well.
Foodbuy Advantage Canada I November 2018
Canned Tomato Based Products & Canned Legumes Primo 6.08% Price Increase All retail beans products, tomato based products (tariff and nontariff based), tomatoe ketchup and tomato sauce. Mitigated from July to November, might reverse with new USMCA agreement in the second half 2019.
Various Categories David Roberts 6.12% Price Increase Reason is US exchange and candy import tariff. $67K CGC impact, and $43K impact to MDG VA improvement $13k for CGC, $23k MDG.
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MARKET & COMMODITY NEWS Sheridan College Supports Local Grown Farming! At Compass Group Canada, we embrace the tremendous power of food and the opportunity we have to positively impact the lives of our guests, our associates and our communities – on both a local and global level. In recent happenings, Sheridan College’s Trafalgar Campus supported local farmers with a Locale Farmer Market provided by Bamford Produce. Its students were educated on local farming of produce with fresh, home-grown apples, pears and sampling of local juice blends. Click the icon below to see the Locale Farmer Market video:
https://youtu.be/F6RIgnilBiY
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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. 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.
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 November 2018
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