DELCO FOODS
FEBRUARY 2020
VOL. 25, NO. 02
CAPITALIZE ON PLANT BASED PROTEIN By Daniel Thor, Bellissimo Foods
CONVENIENCE TRENDS ROCK PIZZA INDUSTRY By Peter Thor, President, Bellissimo Foods Two news items recently caught our attention; “Grubhub deal: $10 off orders $10 or more”, and “In New York City, more than 1.5 million packages are delivered daily, every day!”. The convenience trend is morphing into more than getting convenience packages at home from Amazon. Like retail, the restaurant industry is having to adjust to changing preferences of not only delivery, but expectations for online ordering, bundled packaging, and loyalty programs. Convenience trends for delivery did not initially have much of an impact on specialty and independent pizza operators whose focus has been on better ingredients, menu items, and services for local customers. Technology has fostered changes in consumer behavior starting with retail and crossing over to foodservice and industrial. Multi-unit providers have both improved their menu and been early adopters of new technology, taking advantage of economies of scale and the need for consistency across units. Like retail, the pizza industry is increasingly facing new competition as technology is coming available to connected homes. Downloaded apps, linked with loyalty programs and often one-click payment programs are changing the game for both take-out and delivery services. Aggregator services like Grubhub and similar are also steadily increasing the choices available to consumers, while at the same time taking a significant bite out of the margin for participating restaurants. Many restaurateurs are supporting aggregators to gain customer reach and marketing efficiencies despite the economics of paying as much as 30% of the order value for the service. This threatens to destabilize how the nonparticipating traditional independent operator keeps existing customers and finds new ones. continued on page 2
A PROUD DISTRIBUTOR OF BELLISSIMO
As more people are turning towards plant-based protein alternatives manufacturers are seeking innovative ways to create products that not only taste the part of their animal influence but also stand up to the vigor of modern kitchens and the tastes of modern consumers. But what led to the introduction of this new category and why are people flocking to it? Does this latest craze have staying power, and what can you do to capitalize on the trend while it’s here? There is one simple reason why plant-based protein was introduced: The population of the world is increasing, and the more people in continued on page 3
MARKET UPDATE Dairy
PRICE
Cheese Blocks $1.8595
LAST MONTH
DIFFERENCE
$1.948 ($0.0885)
Domestic cheese exports during the 4th Qtr were up from the prior year which is a testament to strong demand. History suggests expecting only modest price declines for cheese early in the year.
Beef
PRICE
50% Trimmings $0.6780
LAST MONTH
DIFFERENCE
$0.796
($0.118)
The boxed beef cutouts are in the process of finding a winter bottom, but trade is likely to be mostly flat ahead of the springtime rally. Anticipate the lean beef trimming markets to still have an upside risk.
Poultry
PRICE
Wing (Jumbo) $1.7490
LAST MONTH
$1.778
DIFFERENCE
($0.029)
Chicken supplies are expected to remain robust throughout early 2020, with Q1 likely to run 4% - 5% larger than last year. Wing prices are on the rise with escalating prices expected into at least early February.
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