Member Advantage January 2018

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

Foodbuy introduces two new contracts in the potatoes category!

See more on page 4!

January 2018 Program

Program

Price

Market and Commodity

Announcements

Highlights

Changes

News

Program Announcements Be on the lookout for January’s Foodbuy Feature featuring Kraft Heinz!

In January, the Foodbuy Feature will highlight our new program featuring salad dressings, mayo, condiments, spreads and jams from our preferred supplier Kraft Heinz. The Foodbuy Feature will introduce you to some great Kraft Heinz products as well as show you how switching to Kraft Heinz will help you mitigate increases from other suppliers.

January’s Foodbuy Feature will be a mini-edition as it will only feature one supplier, but it will still be packed full of good content and information for customers. Keep an eye on your inboxes after the holidays.

January is salad dressing, condiment and spreads month sponsored

by Kraft Heinz. Keep an eye out for the Foodbuy Feature highlighting our preferred Kraft Heinz contracted products!

Member Advantage Canada | January 2018

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Program Announcements Foodbuy Introduces New Agreement with Kraft Heinz to Mitigate Unilever Price Increase As of January 1, 2018, Foodbuy’s negotiated program with Unilever is coming to an end which will result in massive price increases in many Unilever product categories. As a result, Foodbuy has been aggressively working to find alternatives that will mitigate the impact of these increases, while still providing superior products for our customers. To ensure competitive pricing and superior value in the condiments, mayo and salad dressings categories, Foodbuy has negotiated a new contract with Kraft Heinz. We strongly encourage our customers to transition from Hellman’s to Kraft Heinz products in these categories. If you were buying Kraft Heinz products before, good news, you can start generating savings!

Below you will find more detail on the categories impacted and the suggested actions to take.

Unilever Category

Percent Increase

Action to Take

Beverages/Tea

2% to 15%

No action required

Condiments Bulk

0% to 53%

Transition to Kraft Heinz (see links for product alternates and SKUs)

See Unilever SKU’s impacted and Kraft Heinz replacements here. An expanded list with Sysco DINs can be found here.

Condiments Portioned

0% to 39%

Transition to Kraft Heinz (see links for product alternates and SKUs)

See Unilever SKU’s impacted and Kraft Heinz replacements here. An expanded list with Sysco DINs can be found here.

Margarine

3% to 40%

Stay tuned for further communication about alternative options

Salad Dressing

0% to 102%

Transition to Kraft Heinz (see links for product alternates and SKUs)

Sauces and Bases

0% to 25%

Transition to wet soups (if your unit is equipped with the refrigeration required to store and serve wet soups).

If not, stay tuned for further communication about an alternative options

Soups

0% to 45%

Transition to wet soups (if your unit is equipped with the refrigeration required to store and serve wet soups).

If not, stay tuned for further communication about an alternative options

Member Advantage Canada | January 2018

Link

See Unilever SKU’s impacted and Kraft Heinz replacements here. An expanded list with Sysco DINs can be found here.

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Program Announcements Foodbuy Successfully Negotiates Two New Contracts in the Potato Category Foodbuy has recently negotiated new 3-year contracts with Basic American Foods and Idahoan Foods for a range of dehydrated potato products which include hash browns, scalloped potatoes, instant mashed potatoes and potato flakes and granules. These new contracts allow us to offer our customers flavourful potato products at a great market value.

Member Advantage Canada | January2017

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Program Announcements Olymel OBP Brand to Replace Foodbuy & Yorkmont Brand in January Beginning January 1, 2018, Olymel will change its Foodbuy and Yorkmont branded items to an OBP brand. This transition will take place over the next few months and will impact the products listed below.

Foodbuy and Yorkmont Products Changing to OBP: Product UCC Code Chicken Tenders Breaded Loving Style 10065137110029 Chicken Breast Strips Breaded 10065137571820 Chicken Burger 10065137671490 Rindless Sliced Bacon Naturally Smoked Layer Out 10061853923936 Rindless Sliced Bacon Naturally Smoked (18/22) 10057459925764 Rindless Sliced Bacon Naturally Smoked (16/18) 10057459925672 The products and item codes will be exactly the same, and there have not been any changes made to the product pack dimensions, flavour profile or ingredients. The only difference is the items are now listed under the OBP brand. If you have any questions, please don’t hesitate to contact your Foodbuy Account Manager for assistance.

Member Advantage Canada | January 2018

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Program Announcements Tyson Foods Canada Makes Label Changes to Jimmy Dean Breakfast Sausages

Tyson Foods Canada is changing the label and code on Jimmy Dean© .8 oz. Mild Pork Sausage Links, Skinless and on Jimmy Dean© .8 oz. Mild Pork Sausage Links, Casing effective immediately. This change is a result of recent marketing and packaging changes on these products.

Below you can find information on the new code and case labels for these products. Please ensure that you are using these codes going forward when ordering Jimmy Dean Breakfast Sausages Product Jimmy Dean© .8 oz Mild Pork Sausage Links, Skinless

25445

Old Code

New Code

Old Case GTIN

New Case GTIN

Jimmy Dean© .8 oz Mild Pork Sausage Links, Casing

25449

25457

10077900254496

10077900254571

25455

10077900254458

10077900254557

Apart from new codes and case numbers, there have not been any changes made to product pack dimension, flavour profile or ingredients. The products are the same, the codes are different. For more information please see a detailed letter from Tyson regarding this change.

If you have questions, please don’t hesitate to contact your Foodbuy Account Manager for assistance.

Member Advantage Canada | January 2018

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Program Announcements Campbell’s Soup Company Successfully Acquires Pacific Foods

In December, Campbell’s Soup Company successfully completed an acquisition of Pacific Foods. Foodbuy and Campbell’s Soup Company are excited about this new move as it will help Campbell’s Soup Company better meet customer needs and requirements and it will allow Foodbuy to continue providing highquality, innovative products to our customers.

There will be no changes made to how customers order Campbell’s or Pacific Foods products in the immediate future. Pacific Foods and Campbell’s will continue to operate separately for the time being as they work to align food philosophies and drive innovation and well-being.

Please don’t hesitate to reach out to your Foodbuy account representative if you have any questions about this acquisition. As changes happen in the future, you can expect to receive future communications.

Member Advantage Canada | January 2018

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Program Announcements Featured Product of the Month: The Spill Mop from Rubbermaid

Foodbuy is excited to announce a new product by Rubbermaid as our Featured Product of the Month for January. The Spill Mop from Rubbermaid is a highly absorbent, quick access mop that allows for convenient clean-up of major spills and easy disposal after the job is done.

Highly Absorbent Materials Constructed with polyacrylate, the Spill Mop absorbs up to 32 oz. of liquid leaving floors drier than a standard cotton string mop. Absorbed liquid is locked inside during the clean-up process preventing drips and leaks during disposal which is also a great feature.

Convenient Disposal The Spill Mop’s one-time use pads are quick and convenient and the handle is designed with an integrated release lever which helps users avoid contact with the soiled mop during disposal.

The Spill Mop comes in a regular and biohazard version. For more information and product specs, check out these sell sheets from Rubbermaid - Spill Mop and the Biohazard Spill Mop.

Member Advantage Canada | January 2018

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Program Highlights Foodbuy Continues to Negotiate Lower Bacon Prices for January In December, Foodbuy customers saw a 27% price decrease on Yorkmont bacon. In January the downward trend continues as Olymel raw bacon prices (now branded OBP) go down another 6%. These price decreases are a result of stabilization in the market and an evening out of supply and demand.

Bacon prices are expected to continue to trend downward as we head into 2018, and Foodbuy remains committed to bring our customers the best value at the best price.

Foodbuy Customers will See a Drop in Prices on Disposables and Smallwares in January

In January, Foodbuy customers will see slight price decreases in the categories of disposables and smallwares. Our two preferred suppliers in these categories, Pactiv and Vollrath have agreed to decreases and the details are outlined below.

Pactiv Foodbuy has negotiated a 2% blended price decrease on products in the disposables category effective January 1, 2017. This price adjustment comes as a result of market stability in resins, aluminum and paper prices.

Vollrath Vollrath has agreed to decrease prices on smallwares by 3% in January. This price decrease is a result of commodities and exchange rates evening out over the past six months which is playing to our advantage in this category.

Member Advantage Canada | January 2018

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

Category

Supplier

Effective Date

Foodbuy Monthly Impact %

Type of Change

Reason for Change

Bacon

OBP

01/2018

6%

Price Decrease

Commodity Index Adjustment

Disposables

Pactiv

01/2018

Blended 2%

Price Decrease

Commodity Index Adjustment

Frozen Seafood

High Liner

01/2018

Smoked Salmon decreasing 5.6%

Price Decrease

Commodity Index Adjustment

Smallwares

Vollrath

01/2018

3%

Price Decrease

Commodity Index Adjustment

Bakery

Give and Go Prepared Foods

01/2018

4%

Price Increase

Result of Ontario government legislated minimum wage increases.

Foodbuy was successful in delaying this increase by three months.

Canned Seafood

Shafer-Hagard

01/2018

Blended 11%

Price Increase

Market prices for Skipjack Tuna have increased significantly in the past 6 months.

Foodbuy was successful in delaying this increase by two months.

Frozen Seafood

High Liner Commodity Seafood

01/2018

Cod - 1.6%

Price Increase

Commodity Index Adjustment

Member Advantage Canada | January 2018

Haddock 2.87

Foodbuy Negotiated Savings

Price Mitigation

Foodbuy benchmarked prices with U.S. market and found Canada’s pricing was still 4% more competitive on a net basis.

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Market and Commodity News Foodservice MacroTrends Point to Increased Consumer Spend and Natural, Low-Fat, Low-Calorie Ingredients In 2017 the foodservice industry experienced six key trends that were seen across almost every industry.

Those trends are expected to continue as we head into 2018, so make sure your business is leaning into these trends and maximizing potential.

Average family foodservice spend is on the rise and most spend is being driven by millennials and families with children.

Consumers are demanding natural, low-fat, low-calorie, and whole grain options. In 2017 Gluten Free items grew by 9.8% on menus.

Craveability is the top driver for consumers when it comes to sourcing food away from home to satisfy a craving.

Consumers are demanding more “bold� flavor experiences with 45% demanding bold, flavourful options as opposed to 41% in 2015.

Dining out is a true experience. More than 60% of consumers value the social and entertainment aspects of consuming food outside the home.

Portability reigns supreme in coffee, cafe and QSR segments. Customers want to easily order and access food on the go in a quick amount of time.

HOW DO 84% of consumers CONSUMERS consider bread quality a most FEEL ABOUT BREAD? important attribute of a burger.

53% of consumers would pay more for a sandwich with higher-quality bread.

71% of consumers are willing to pay more for sandwiches that feature premium or higher-quality ingredients.

40% of casual dining consumers would be more likely to visit or purchase food from restaurants if they offered higher-quality menu items.

* Data provided by Weston Foods.

Member Advantage Canada | January 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 | January 2018

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