Member Advantage February 2018

Member Advantage New contracted programs Program details Price fluctuations Market and commodity trends

See exciting news around produce pricing in this issue.

More details are found on page 4!

February 2018 Program

Program

Price

Market and Commodity

Announcements

Highlights

Changes

News

Program Announcements Be on the lookout for February’s Foodbuy Feature featuring Burgers!

In February, the Foodbuy Feature will highlight various burger options from our preferred supplier Belmont Meats. The Foodbuy Feature will introduce you to some great Belmont Meats products as well as show you how using their products will help you optimize savings.

Learn how you can spice up your menus and keep your customers happy with burgers and ground beef options from one of Foodbuy’s top contracted meat suppliers - Belmont Meats. Be on the lookout for the Foodbuy Feature highlighting our preferred Belmont Meats contracted products and more!

A month of ground beef, burgers & buns!

FEB R UA RY 2 0 1 8

Member Advantage Canada | February 2018

February is Burger & Ground Beef month featuring Belmont Meats!

Be on the look out for the Foodbuy Feature highlighting our preferred Belmont Meats contracted products and more!

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Program Announcements Cold Beverage Rankings: Are You Giving Your Customers What They Want?

It is important that foodservice operators are aware of top sellers in retail beverage categories, particularly CSD and water. Foodbuy has ensured that the majority are under contract and approved within planograms (indicated by the check mark). The “grab and go” environment Convenience & Gas most closely resembles a Foodbuy customer retail outlet, and it is the primary reason we use Convenience & Gas data since foodservice data is not available.

The following cold beverage SKU rankings are based on Convenience & Gas sales data provided by AC Nielsen.

Top 10 CSD’s (500/591 ML)

Top 5 Diet CSD’s (500/591 ML)

1. Pepsi 591 ml √

1. Pepsi Diet 591 ml √

2. Coke 500 ml √

2. Coca-Cola Diet 500 ml √

3. Canada Dry 500 ml √

3. Coca-Cola Zero 500 ml √

4. Dr. Pepper 591 ml √

4. Fresca Sugar Free 500 ml √

5. Mountain Dew 591 ml √

5. Dr. Pepper Diet 591 ml √

6. Crush Orange 591 ml √

Top 10 Water’s (1L)

7. Sprite 500 ml √

1. Glaceau Smartwater 1L √

8. Crush Cream Soda 591 ml

2. Evian Natural Spring 1L √

9. 7-UP 591 ml √

3.*Aquafina 1 L √

10. Coke Vanilla 500 ml (Limited Time Offer)

4. Nestle Pure Life Natural Spring 1L

Top 10 Water’s (500/591 ML)

5. Fiji Natural Artesian 1L

1. *Aquafina 591 ml √ 2. Dasani 591 ml √ 3. Nestle Pure Life Natural Spring 591 ml 4. Eska Natural Springs 500 ml 5. Glaceau Smartwater 591 ml √ 6. Evian Natural Spring 500 ml √ 7. Fiji Natural Spring 500 ml 8. Perrier Sparkling 500 ml √ 9. Perrier Sparkling Lemon 500 ml √ 10. Nestle Pure Life Natural Spring 500 ml

√ Approved product included within current freedom of choice and/or exclusive planograms. * Aquafina is the preferred water of Foodbuy Canada; available in 591 ml and 1L. Member Advantage Canada | February 2018

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Program Announcements Produce Update: Foodbuy Works With Suppliers To Bring Customers More Accurate Produce Pricing Foodbuy has been working steadily with our produce suppliers over the past few months to implement a more improved produce pricing model for all of our customers. In February, we will launch two new pricing models that will more accurately reflect market conditions and better prepare our customers for price fluctuations as a result of market changes in this category.

More about each specific produce model can be found below:

Monthly Pricing for Sysco Produce: Foodbuy and Sysco Produce will bring customers a monthly pricing model effective February 1. This means customers will see pricing updates for specific contracted produce items across our Canada OPCOS on a monthly basis instead of quarterly.

The ordering process for Sysco Produce will not change as a result of the new pricing, and customers can continue to place orders as usual.

Weekly Pricing for Hector Larivee: In addition to monthly pricing from Sysco, all Foodbuy customers who are serviced by Hector Larivee in Eastern Ontario and Quebec will see a weekly produce pricing model go into effect as of February 4.

The biggest benefit of this new model is that pricing on contracted, imported and locally sourced produce items will be more aligned with the market which will make Foodbuy and Hector Larivee more competitive on a basket of produce items. We will also be able to take advantage of the U.S. grower contracts that Pro*Act and Foodbuy have negotiated to adopt great rates on items like oranges, strawberries, pineapples, lettuce and broccoli. Meanwhile Hector Larivee still has the flexibility to provide locally sourced produce products when the cost is advantageous for us. Locally sourced items include cucumbers, mushrooms, hothouse grown vegetables and other fruits when in season.

Foodbuy customers will not see any change to the ordering process, however, they will see changes in pricing each week. Each Thursday, Pro*Act affiliated distributors like Hector Larivee and Foodbuy will receive a pricing update for the upcoming week’s prices. We will push it to our customers by Friday.

Prices are effective from Sunday until Saturday. Hector Larivee customers will see that

the prices are reflective on My Orders for the current week on Mondays.

Member Advantage Canada | February 2018

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Program Announcements Foodbuy Partners with Parmalat and Richardson Oilseed to Drive Down Costs in the Margarine Category Last month, Foodbuy announced that Unilever had implemented massive price increases in the categories of condiments, dressings, sauces, soups and margarines. In the margarine category alone, Unilever prices increased from 3% to 40% on various products. Since then, Foodbuy has been aggressively working to find alternatives that will mitigate the impact of these price increases while still providing superior products for our customers.

In Februrary, we are pleased to announce that we will be transitioning our Unilever margarine SKUs over to Parmalat and Richardson Oilseed to ensure our customers are getting the most competitive prices in the category and the best value.

The SKUs impacted are listed below. Foodbuy customers are encouraged to transition to Parmalat and Richardson Oilseed SKUs in order to avoid high prices resulting from the Unilver increase.

Old Product SKUs MFR

Brand

Item SCC

Product Description

Pack Size

Coverage

Unilever

Becel

10068400039515

Margarine Portion Cup 480/7 gr

480/7gr

National

Unilever

Becel

10068400684548

Margarine Tub 6/4 lb

6/4 lb

National

Unilever

Becel

10068400032684

Margarine Tub 1/25 lb (DISCONTINUED)

1/25 lb

National

New Product SKUs MFR

Brand

Item SCC

Product Description

Pack Size

Coverage

Parmalat Canada

Lactantia

10066096333054

Lactantia Margarine Minicups Portions

600 x 6.5 g

National

Parmalat Canada

Lactantia

10068200701216

Lactantia Traditional Spread

12 x 1.28 kg

National

Richardson Oilseed

Canola Harvest

000 59842 75034 5

CH NH Spread-It Non-Hydrogenated Soft Margarine*

1/25 lb

National

* Another benefit of the switch to Richarson Oilseed is the availability of the 1/25 lb tub of CH NH Spread-It Non-Hydrogenated Soft Margarine. Unilever had previously decided to discontinue their 1/25 lb Margarine Tub in the Becel Brand, so switching to Richardson Oilseed gives Foodbuy the opportunity to still provide this popular size to our customers.

Make sure to switch to our new Parmalat and Richardson Oilseed margarne SKUs for amazing taste at great prices!

Member Advantage Canada | February 20188

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Program Announcements Featured Product of the Month: Sealed Air’s Diversey Bio-Floor Cleaner Foodbuy’s featured product for February is Sealed Air’s Diversey Bio-Floor Cleaner. A bacteria-enhanced, premium liquid floor cleaner and deodorizer, this product is a favorite within many foodservice operations.

Sealed Air is relaunching this cleaner in February in multiple leading dispensing formats like RTD and J-Fill giving customers choices in selecting the version that works best for them.

Benefits of using Diversey Bio-Floor Cleaner over any other cleaner include:

• It’s easy to use • It easily cleans soils trapped in tile pores and grout • It removes fat, grease and oil build-ups • It eliminates odors caused by fats and oils

Additionally, this product can help to reduce chemical usage, water usage and labor costs because it can be used as a replacement for multiple flooring products. Satisfied customers have seen benefits like better floor traction and reduced slipperiness in kitchens creating an overall improved environment in regards to safety and hazards.

To find out more about Diversey Bio-Floor Cleaner and how it can work in your business, see the Diversey Bio-Floor Cleaner Spec Sheet here.

Member Advantage Canada | February 2018

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Program Highlights Voortman Bakery Enhances Product Portfolio Voortman Bakery has reformulated their portfolio of products so that all of their cookes, wafers and sugar free snack options are now made using real ingredients with no artificial colors, flavours or high fructose corn syrup. These product enhancements ensure that Foodbuy is able to offer our customers delicious bakery options that are healthier and better for you.

While these product enhancements are great news for Foodbuy and our customers, the transition to higher quality ingredients has created a slight price increase on Voortman’s Bakery Items, and in February customers will notice a 3% price increase on products from this supplier. More information can be found in the table on the next page.

Foodbuy Partners with Ed’s Foods in the Dehydrated Soup Bases Category In February, Foodbuy will begin transitioning to Ed’s Foods Luda brand, replacing the Yorkmont brand of dehydrated soup bases. By transitioning to the Luda brand by Ed’s Foods, Foodbuy was able to secure a 6.85% price decrease in this category for customers making it a more competitive option than the previous Yorkmont brand.

SKUs available in this brand are listed below, and we are working to make more available as the year goes on: SKU Program Announcements 59668114895 Luda ED Base Soup Vegetable No MSG 1/4.5 Kg 59668114970 Luda Original EP Base Soup Chicken Premium No Added MSG 1/5 Kg 59668112235 Luda Original Base Soup Chicken Lite No Added MSG 1/4.5 Kg 59668104025 Luda Original EP Base Soup Beef Premium No Added MSG 1/5 Kg 59668112228 Luda Original Beef Soup Base Lite 1/4.5 kg

Member Advantage Canada |February 2018

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Program Updates Program Updates February 2018 The information below offers a snapshot of some of the price changes customers can expect to see in February.

Category

Supplier

Effective Date

Foodbuy Monthly Impact %

Type of Change

Reason for Change

Bacon

OBP

02/2018

8%

Price Increase

Commodity Index Adjustment

Bakery

Voortman

02/2018

3%

Price Increase

Input Cost Adjustment

Member Advantage Canada | February 2018

Foodbuy Negotiated Savings

Price Mitigation

Foodbuy was successful in delaying this increase from May 2017 until February 2018.

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Market and Commodity News Bank of Canada Raises Interest Rates in January Strongly Impacting the Canadian Dollar On January 15, 2018, the Bank of Canada raised interest rates for the third time in the past year. As a result the Canadian Dollar plummeted briefly but has recently rebounded to be $.80 as compared to the U.S. dollar. While this rate is still not as high as Canadian financial analysts would like to see, it is slightly stronger than it was around this time last year.

Consumer Trends Shift Towards Spending More on Food in Restaurants in 2017, Trend Continues in 2018 As we head into 2018, we are seeing the trend of convenience trumping eating at home in Canada. “The cost of food purchased at restaurants rose by 2.7% in 2017� as noted by Canada’s Food Price Report published by Dalhousie University and the University of Guelph. While food prices in grocery stores are dropping, food prices in restaurants are going up as people are eating out more often and craving more meals on the go than ever before.

Convenience is a key factor for an increasing number of consumers and Canadians are spreading their food budget around more and more to accommodate the luxuries of quick, fast dining.

Member Advantage Canada | February 2018

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We’re Here To Help If you have any questions related to the information in this newsletter, please contact your Foodbuy Account Manager.

Thank you!

Member Advantage Canada | February 2018

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