Member Advantage October 2018 I Canada
Preferred supplier contract extension! Details inside.
OCTOBER CONTENTS
CHEF’S CORNER Introducing Chef Wayne! We are excited to announce a new section of the Member Advantage dedicated to culinary, and written by our Corporate Chef, Chef Wayne Nichols.
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 Find out the latest communications in the market that may impact current programs.
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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.” 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 for Prime Ministers and many dignitaries and Royalty from around the world. 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. 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. Look for Chef Wayne’s monthly column in the Member Advantage where he will be highlighting various Foodbuy initiatives, sharing culinary tips and best practices.
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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.
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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.
Member 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
coffee c mily rs
SOFINA - Lavazza, New Contract for Members Foodbuy is happy to announce a new agreement with Lavazza Coffee! Lavazza (imported by Sofina) is the leading premium coffee roaster and global authentic Italian brand which has been family owned for more than 120 years. Lavazza is committed to sharing the infinite palette of coffee experiences imaginable utilizing their passion and expertise. They import 3.5 million 60 kg bags of green coffee, and produce 170,000 tons of roasted coffee, per year. This program will produce an average $3.80 a case in revenue.
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To read more about Lavazza, you can access general information here.
THREE KEYWORDS guiding Lavazza to increase global footprint
HERITAGE
INNOVATION
CONSUMERS
LAVAZZA: The Italian Leader of Espresso 120 years of coffee experience
LAVAZZA: The Italian Coffee Experience Master
Every culture has its favorite coffee type Consumers are always exploring new coffee offerings
CONSUMERS
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Every culture has its
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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. Still and sparkling water category is growing across all demographic groups, and water is our most profitable beverage. We should be driving all day hydration by
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.
offering our 1L sizes in both everyday and premium waters 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) Member VA will remain the same. For more information on the CDC Adjustment please reach out to your Foodbuy Account Manager.
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PROGRAM HIGHLIGHTS PREMIÈRE MOISSON Discontinued Products September 10th, 2018
The leader in the artisan bakery and pastry sector, announces discontinued products in their authentic, premium quality charcuteries and ready-to-eat offerings.
SUBJECT: Discontinued Products These products will still be available in bulk format, should you be interested. Good day,more you can access the announcement here, ENGLISH and To read FRENCH. The following is to confirm that we have discontinued the below mentioned products as of September 10th:
However, we do have the bulk format available for these products should you be interested. Please do not hesitate to contact your sales representative should you have any questions.
Best Regards,
Nancy Dickson Sales Assistant
premieremoisson.com GROUPE PREMIÈRE MOISSON INC. 189 HARWOOD BLVD, VAUDREUIL-DORION, QUÉBEC J7V 1Y3 T 450 455-2827 F 450-455-7199 GROUPE PREMIERE MOISSON INC. 19301 CLARK GRAHAM, BAIE D’URFE, QUEBEC H9X 3P5 T 514-787-1252 F 514-457-0998 Member Advantage Canada I October 2018
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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.
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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 Price Increase - $0.04 – $0.30/Lbs - We are contractually price protected with a percentage of the increase being offset by the same amount of rebate increase.
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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 to our Members? 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 your Foodbuy Account Manager.
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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 Member Advantage Canada I October 2018
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