Member Advantage September 2018

Member Advantage September 2018 I

e e L a r a S Frozen Bakery Read all about this brand transition on page 3!

Program Announcements

Program Highlights

Program Updates

Market & Commodity News

PROGRAM ANNOUNCEMENTS MOTT’S CLAMATO - The Ceasar The caesar which is a Canadian creation was introduced in 1969 to celebrate the opening of Marco’s Italian restaurant at the Calgary Inn (now the Westin Calgary). Walter Chell who was the mixologist and food/ beverage manager created the classic cocktail with inspiration from the flavours of Spaghetti Vongole (spaghetti with clams), and combined sweet (tomato juice), salty (clam nectar), sour (lime), spicy (Worcestershire sauce) and bitter (celery salt).

After naming it for the Roman emperor, legend has it that he served one to an Englishman who exclaimed: “That’s a good bloody Caesar!”

Try this classic ceasar recipe... thank you Walter Chell!

Ingredients • 1 oz (30 ml) vodka • 2 dashes hot sauce • 4 dashes Worcestershire sauce • 3 grinds fresh cracked salt and pepper • 4 oz (120 ml) Mott’s Clamato Original Cocktail

How 1. Rim a highball glass with citrus and rimmer.

2. Fill the glass to the top with ice.

3. Add the ingredients in the order listed.

4. Stir well to mix the cocktail, and garnish.

Garnish • Celery stalk • Lime wedge

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PROGRAM ANNOUNCEMENTS SARA LEE FROZEN BAKERY - Brand Transition Kohlberg & Company, a private equity firm, has formally completed the purchase of the Sara Lee® Frozen Bakery and Van’s® businesses from Tyson Foods, Inc. on Monday, July 30th, 2018. This new company will be known as Sara Lee Frozen Bakery® in the bakery category.

Sara Lee Frozen Bakery® makes its own frozen pies, cakes, and other desserts and will be operating the iconic brands of Sara Lee®, Chef Pierre®, Bistro Collection®, and Van’s® that have enjoyed strong historical growth. This position moving frozen bakery products into a standalone company is to help customers grow through concentrated focus in the business, increased innovation, agility, and speed to market.

You can read the complete announcement here.

1 Tower Lane Oakbrook Terrace, IL 60181

Interested in more information on Chef Pierre® products operated by the Sara Lee Frozen Bakery® company?

CUSTOMER MEMORANDUM

You can read about a variety of pies here.

TO: FROM: DATE:

Valued Customers of Sara Lee Frozen Bakery Don Davis, President and Head of Sales July 30, 2018

I’m pleased to announce that Kohlberg & Company formally completed the purchase of the Sara Lee® Frozen Bakery and Van’s® businesses from Tyson Foods, Inc. on Monday, July 30th, 2018. Our new company will be known as Sara Lee Frozen Bakery®.

Sara Lee Frozen Bakery will be a company with the bakery category at the heart of what we do. We have iconic brands in Sara Lee®, Chef Pierre®, Bistro Collection®, and Van’s® that have enjoyed strong historical growth. Our position moving forward is to help our customers grow through focus, innovation, agility, and speed to market. I joined this organization because I believe Sara Lee Frozen Bakery will flourish – for our customers and our employees.

We’re excited to continue to have the opportunity to do business with you, and commit to executing a smooth transition for your business to provide you with exemplary service through the transition.

Our new management team is solely focused on the growth of Sara Lee Frozen Bakery, and our efforts will be centered around helping our customers grow within the bakery category. The team comes with nearly 100 years of collective experience in consumer products, including Sara Lee. Below is a brief summary of our team, and Kohlberg & Company.

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PROGRAM ANNOUNCEMENTS AURUM - Exterior Window Washing Services Aurum, our new service offering, has positioned itself as an industry leader in the exterior window cleaning market. They exercise the most efficient and current cleaning methods to ensure top quality and customer satisfaction. All Aurum employees are WSIB covered and insured for $20MM along with a qualified, courteous staff that is committed to upholding your image to the highest standard.

In addition to partnering exclusively with Compass over our direct competitors, this 3 year agreement which began on June 1, 2018, also includes a 10% reduction off some of the lowest rates for window washing in Canada.

To order: 1) Contact Michael Morozov / his EA (Leanne Reid) at 416-490-1616 / Leanne.reid@myaurum.com, michaelmorozov@myaurum.com 2) In your email, please include the scope of work with as much detail as possible.

3) Expect a quote within 48-72 hours.

For more information and extended introduction please see this sell sheet, ENGLISH and FRENCH.

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PROGRAM ANNOUNCEMENTS DANONE - Creamy New Formulation Danone has changed the formulation on Danone Creamy Yogurt, effective August 13, 2018.

New formula: 25% less sugar than previous recipe, yogurt flavoured with aroma, removed fruit pieces and a new visual identity.

Please see attached excel file for detailed SKUs information and new nutritional information, here.

No changes on SCC. DANONE CREAMY CHANGES RECAP AUGUST 2018 UPC

SCC

DANONE

Product NAME

CHANGES AUG 2018

UPC Change or not

CREAMY- 175 g (12) 56800000085

10056800000082

6272

Vanilla

New formula: 25% less sugar than previous recipe, New visual identity

NO

56800000115

10056800000112

6270

Strawberry

New formula: 25% less sugar than previous recipe, yogurt flavoured with aroma, REMOVE fruit pieces New visual identity

NO

NO

56800000122

10056800000129

6264

Raspberry

New formula: 25% less sugar than previous recipe, yogurt flavoured with aroma, REMOVE fruit pieces New visual identity

56800000153

10056800000150

6261

PEACH

New formula: 25% less sugar than previous recipe, yogurt flavoured with aroma, REMOVE fruit pieces New visual identity

NO

New formula: 25% less sugar than previous recipe, yogurt flavoured with aroma, REMOVE fruit pieces New visual identity

NO

Vanilla/Peach/Berries/STRAWBERRY

NEW FLAVOUR MIX (strawberry added to current mix) - NO UPC CHANGE New formula: 25% less sugar than previous recipe, yogurt flavoured with aroma, REMOVE fruit pieces New visual identity

NO

New formula: 25% less sugar than previous recipe, yogurt flavoured with aroma, REMOVE fruit pieces New visual identity

CREAMY- 175 g (12) 5680035561

10056800355618

135561

Strawberry/Peach/Raspberry CREAMY- 16 x 100 g (3)

56800154351

10056800154358

51773

56800168679

10056800168676

51774

Strawberry/Peach/Raspberry

56800517712

10056800517719

51771

Rapsberry(8x)/Vanilla(4x)/Bleuberry(4x)

56800517729

10056800517726

51772

CREMIX Straw-Va (4x)/Peach-Va(4x)/Cherry-Va(4x)/Mango-Va(4x)

56800517730

10056800517726

51773

Fieldberry_vanilla_raspberry_strawberry/ fruits des champs_vanille_framboises_fraises

56800154368

10056800154365

15436

Strawberry/Peach/Blueberry/Vanilla

New formula: 25% less sugar than previous recipe, yogurt flavoured with aroma, REMOVE fruit pieces New visual identity New formula: 25% less sugar than previous recipe, yogurt flavoured with aroma, WITH FRUIT PIECES. Fruit pieces will be remove in 2019 only.

New visual identity

NO

NO

NO

New formula: 25% less sugar than previous recipe, yogurt flavoured with aroma, no fruit pieces New visual identity

NEW UPC

New formula: 25% less sugar than previous recipe, yogurt flavoured with aroma, REMOVE fruit pieces New visual identity

NO

CREAMY- 24 x 100 g (2)

CREAMY - 650 g (6) 56800082173

10056800082170

108217

56800082180

10056800082187

108218

56800098990

10056800098997

109899

Strawberry

New formula: 25% less sugar than previous recipe, yogurt flavoured with aroma, REMOVE fruit pieces New visual identity

NO

Vanilla

New formula: 25% less sugar than previous recipe, yogurt flavoured with aroma, REMOVE fruit pieces New visual identity

NO

Peach

New formula: 25% less sugar than previous recipe, yogurt flavoured with aroma, REMOVE fruit pieces New visual identity

NO

New formula: 25% less sugar than previous recipe, yogurt flavoured with aroma, REMOVE fruit pieces New visual identity

NO

CREAMY- 650 g (6) 56800099003

10056800099000

109900

Strawberry/Vanilla/Peach

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PROGRAM ANNOUNCEMENTS PARMALAT - Brand Transition Parmalat has six SKUs with brand transition • Three specialty shreds SKUs transition its brand from Black Diamond to Galbani • Three feta cheese SKUs transition its brand from Racolli to President Professionnel

Please see attached excel for item information and effective date, here.

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

Category

Supplier

Foodbuy Effective Type of Monthly Date Change Impact %

Cleaning Accessories

Rubbermaid

9/1/2018

7%

Tariff Increase

Chemical

Ecolab

9/1/2018

4.2%

Tariff Increase

Protein

Erie Meats

7/1/2018

2.6%

Protein

Rosemount

9/1/2018

Roasted Coffee and Strawberry Jam

Smucker Foods of Canada

Condiments and Hot Sauce

Reason for Change

Details

Commodity Index Adjustment

Tariff increase of 10% on hygientic or plastic toilet articles, tableware and kitchenware delayed 2 months.

Tariff Increase

Input Cost Adjustment

6.9%

Tariff Increase

Input Cost Adjustment

Tariff increase on diced chicken delayed 2 months and reduced from 10% to 2.6%.

9/1/2018

7%

Increase

Tariff Increase

The French’s

9/1/2018

6.97%

Price Increase

Tariff Increase

Chemical

Deb Canada

9/1/2018

2%

Price Increase

Commodity Index Adjustment

Protein

Exceldor

9/1/2018

1.98%

Price Increase

Input Cost Adjustment

Protein

Viau Foods

9/1/2018

3%

Price Increase

Input Cost Adjustment

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Commodity Index Adjustment

Tariff on dishwasher detergents, air freshers and hand care products manufactured in the US. Delayed 2 months and reduced from 10%.

Tariff increase on diced chicken and chicken meatballs delayed 2 months and reduced from 10% to 6.9%. Suggestion: move to Erie Meats (preferred vendor) for diced chicken.

Tariffs imposed on US imports on Strawberry Jam and 4 Coffee Skus ( Java Coast, Folgers and Moka D’Oro Skus).

Suggestion: Move to Kraft Heinz our Preferred Supplier for Jam Tariffs imposed on US imports on Mixed Condiments & Mixed Seasonings and Other Sauces. Franks Red Hot and Cattlemen’s affected brands. Suggestion: Move to Kraft Heinz the preferred manufacturer for BBQ sauce.

Cost of manufacturing, packaging, minimum wage, exchange rate to purchase raw material. Two month delayed increase saving $4K.

Last increase was March 2016, TOM turkey breast meat has increased $0.36/ kg since Jan 2018. Other factors: fuel, labour price increases.

Last increase was May 2015, input cost increases for spices, exchange rate, packaging and labour. Delayed 1 monthrequested for Aug 1.

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PROGRAM UPDATES (CONTINUED) Category

Supplier

Foodbuy Effective Type of Monthly Date Change Impact %

Protein Raw Bacon

Olymel

9/1/2018

20%

Price Increase

Commodity Index Adjustment

Specialty Cheese

Saputo

9/1/2018

2.5%

Rebate

Contract

Cold Beverages

Pepsi

9/1/2018

3%

Price Increase

No increase on LIFEWTR, Kevita, or Stubborn brands.

Coffee

Mother Parkers

9/1/2018

4%

Trade Increase

Contracted Price Increase

Pickles

Gielow Pickles, Inc.

9/1/2018

41.49%

Increase

Input Cost Adjustment

Canola Oil

Richardson Oil

9/1/2018

.80%

Increase

Frozen Pizza Dr. Oetker

9/1/2018

4%

Price Increase

Commodity Index Adjustment

35% Vendor Increase delayed for 5 months by Foodbuy saving $36K. 11% Tariff Increase. Suggestion: To mitigate this increase Whyte’s has become more competitive as an alternative.

Member Advantage Canada I September 2018

Reason for Change

Input Cost Adjustment

Contracted Price Increase

Details Although we are in the seasonal increase in price, it is not forecasted that we will see the same record highs that we saw last summer/fall.

Expect prices to soften in October.

Specialty Cheese RFP

4% increase on select sku’s due to increased packaging, resin and tariff costs delayed 1 month.

None

Transition from McCain product to Dr Oetker, delayed price increase for 18 months resulting in a $10.5K savings.

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PROGRAM HIGHLIGHTS DR. OETKER - Entrees, Pizza The Dr Oteker price increase was delayed for 18 months resulting in a $10.5k savings.

New price on the below impacted skus will take affect September 1st, resulting in a 4% Contracted Price Increase.

The existing SKU(s) that will be affected are as follows: • 10058336790314 790310 Dr. Oetker Pizza Ellio’s Deep Dish 5.5” Supreme 24/170 Gr (10055773313502 790310)

• 10058336790321 790320 Dr. Oetker Pizza Ellio’s Deep Dish 5.5” 3 Cheese 24/150 Gr (10055773313526)

• 10058336790307 790300 Dr. Oetker Ellio’s Pizza Ellio’s Deep Dish 5.5” Pepperoni 24/160 Gr (10055773313519)

• 10058336790109 790100 Dr. Oetker Pizza Deep & Delicious 5” 60/85 Gr (10055773302469)

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PROGRAM HIGHLIGHTS WONDER - Whole Wheat Sandwich Bread The following skus are confirmed to be discontinued effective September 6, 2018. Sku #209 in the West and Sku #11177 in the Maritimes, both are Wonder Whole Wheat Sandwich Bread.

These discontinuations have been previously discussed and substitutions using existing SKU(s) have been recommended as follows: • SKU 209 (SCC 64947130770) 60% WW 1/570 Gr (20 slices).

• SKU #1995 (SCC 6340001114) is 570gram .86” slice thickness and are also 12+2 slices per bag.

• SKU #10843 (SCC 63400108431) Deli World 100% WW Sandwich Bread 1/.9kg (28 slices).

• SKU 209 is used by AB and SK Corrections; substitution as per above has been tested.

• SKU 1117 (SCC 6340011177) 100% WW 1/675 Gr could be replaced by the following, both are a Food Service Whole Wheat Sandwich bread.

• BC Corrections use SKU 20782 (63400220782).

This SKU which is only available in BC is not changing/discontinued.

• SKU #450 (SCC 63400020283) is 675gram, ¾’ slice thickness and 12+2 slices per bag.

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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

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