July 2020 by delcofoods

DELCO FOODS

JULY 2020

VOL. 25, NO. 07

IS HELP

COMING? By Peter Thor, President, Bellissimo Foods The list of problems facing restaurateurs and food distributors is long and seems to grow every day. In March, the restaurant industry and much of the nation was put “on-pause” and months later the “opening” is proving to be a monumental challenge. Consumer health and safety concerns affect demand, while government health regulators prohibit full dine-in opening and require a multitude of operational changes. The re-engagement of product supply has been similarly restrained by labor force illness, new regulatory requirements and ingredient shortages. The result has been unprecedented volatility and skyrocketing costs. Is help coming? The product supply issues have recently become critical as most states attempted to “re-open” at the same time, causing a sudden demand wave for fresh dairy and protein products. Plants ramping up production have had workforce virus infection related closures and capacity restrictions to those operating. Many of the largest and most respected producers have been affected, including more than 50 poultry and pork plants and at least 26 beef plants. Resultant shortages and rapid increases in wholesale prices have resulted. As an example, Pork 72’s and Beef 50’s are typical prime ingredients to make pepperoni and other dry sausage products. Pork ingredient costs rose 70% in less than 8 weeks, and beef more than doubled during the same period. Poultry increases were less severe. Help is coming for all proteins as the initial surge in demand is moderating and production is building. Both pork and beef wholesale costs are off their highs, with both pork 72’s and beef 50’s lower by 1/3. Importantly, supply shortages are being filled and another month should be fulfilling demand. As virus related closures became widespread, demand for cheese first cratered, then exploded. While cheese plants operate with far fewer employees, the short shelf life of fresh cheese created logistical nightmares. For a brief period, CME block prices fell to $1.00 per pound, then rocketed past annual average pricing to the record $2.58 per pound in early June, a record of sorts. continued on page 2

A PROUD DISTRIBUTOR OF BELLISSIMO

RE-OPENING PRACTICES By Daniel Thor, Bellissimo Foods

We continue to see daily changes and updates regarding the COVID-19 pandemic as it relates to the food service industry. As various parts of the country are at different stages of reopening, please make sure to consult your local health officials on the current stage re-opening guidelines, policies and procedures. The health and well-being of our customers and staff are the top priority considering the exposure risk.

continued on page 3

MARKET UPDATE Dairy Mozzarella

PRICE

LAST MONTH

DIFFERENCE

$2.697

$1.765

$0.932

The CME cheese block and barrel markets remain historically inflated. The butter markets have been softening. Butter stocks at the end of May were up 21.2% (y/y). Anticipate cheese prices to correct lower due in part to lessening exports and solid production.

Beef 50% Trimmings

PRICE

LAST MONTH

DIFFERENCE

$0.675

$1.550

($ 0.875)

Beef output jumped sharply going into this holiday, with the week’s 562.3 million pounds coming in as the sixth largest weekly production total on record. The beef 50s remain under pressure as big kills and fat cattle remain the industry theme.

Poultry

Wings(Jumbo)

PRICE

$1.830

LAST MONTH

$1.768

DIFFERENCE

$0.062

The chicken wing and breast meat complexes have found some support while the dark meat sector continues to struggle. Take note that the prospective July start to both basketball and baseball may underpin chicken wing prices.

IS HELP COMING ?

(continued from page 1)

While prices have not yet returned anywhere close to normal, we do expect this will moderate in coming weeks as production and logistical issues are resolved, so help is coming! Forecasts suggest CME block prices could approach a more normal $1.60-1.80/lb. by end of summer. One of the big unknowns with respect to domestic product supply and pricing is the international situation. The Covid virus is an international pandemic, creating havoc around the globe. But international trade being what it is, there are implications to such volatile supply and pricing. For example, supply restrictions for cheese and dairy products have mostly eased. Returning demand for food service products coupled with strong retail demand will bring challenges because aggressive export commitments were made during the low-price period. This suggests continued price volatility in dairy in general and cheese in particular. International markets will also play an outsized role in pork and beef pricing. The African Swine Fever (ASF) has not been in the news lately but is still impacting pig herds in China, Viet Nam, Philippines, and parts of Europe. Estimated to have resulted in loss of 1/3 or more of the Asian swine population, the “normal” international trade buffer will not come to our rescue. Geopolitical tensions between the U.S. and China adds to the uncertainty. The bottom line for pork and beef pricing is probably more volatility but hopefully moving in a downward trajectory. Announced last week is new legislation to help independent restaurants to reopen and recover from Covid-19 challenges. The proposed legislation will create a fund to deal with the impacts of the coronavirus and help reemploy the 11 million workers who lost their jobs. Senator Wicker, a bill sponsor states “Restaurants are facing months of massive revenue losses because of government mandated social distancing, rising costs of supplies, new expenses for personal protective equipment, and a decrease in the public’s willingness to dine out.” The National Restaurants Association also praised the legislation. A recent survey found that 75% of restaurant operators believe they will not be profitable over the next six months, given no additional relief from the federal government. Help is on the way! Your Bellissimo distributors have restaurant opening kits and can assist with a variety of resources. We wish you all good fortune and healing during these difficult times!

A PROUD DISTRIBUTOR OF BELLISSIMO

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Intro ducing Plant-Based

ALTERNATIVES

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Request your Plant-Based Alternatives sample today at BurkeCorp.com.

RE-OPENING PRACTICES

• • • • • • • •

(continued from page 1)

TO REDUCE RISK OF EMPLOYEE, OR THE SPREAD OF COVID IN THE WORKPLACE Encourage sick workers to stay home Require regular hand washing Require Masks Installing physical barriers between sections for both patron and employee Minimize contact between staff or designate zone restrictions to reduce the cross contamination Establish alternate days or shifts to reduce employees Provide items to promote personal hygiene If possible minimize face to face contact CDC - Implementing Safety Protocols

A PROUD DISTRIBUTOR OF BELLISSIMO

BEST PRACTICES IF STAFF OR CUSTOMERS ARE IDENTIFIED AS CARRIER • Close the restaurant for full detailed cleaning - wait between 24-72 hours to reopen • Communicate with staff as to any confirmed incidents • Once space is clean bring in staff that was not exposed to sick individual CDC - Cleaning & Disinfecting Guide CDC - Re-Opening a Building After Shutdown Guide

Tamper Evident Labels

Portion Packets

Tamper Evident 1x3 Secure It Labels (#1006768)

Condiment portion packets are perfect for take-out and delivery applications. Offer your customers everything they need for an ideal dining experience in sanitary packaging. Our most popular portion packets are:

Used for bags, containers, boxes Integrated Special Cuts that Break if tampered with Aggressive, strong adhesive but easily opened by customers Designed to adhere to most packaging: paper, plastic, foil, foam Made in the USA Roll of 250 2 Rolls per Pack

Parmesan Portion Packets #190160 – 750/3.5 gm Crushed Red Pepper Packets #450281 – 750/3.5 gm Pepper Packets #450442 – 3000/0.10 gm Salt Packets #450443 – 3000/0.75 gm

Comments, Questions & Suggestions

Please contact us toll free at 800.536.1234, locally at 317.876.1951, or visit us online at www.delcofoods. com. We truly value your opinion. As always, our number one goal is to keep you happy. Our newsletter is just one way we share new information about the products and services we offer, as well as industry news we think may be interesting and useful. For personal service and support, please contact your Delco Foods Sales Representative. 4850 West 78th Street . Indianapolis, IN 46268 . toll free 800.536.1234 . tel 317.876.1951 . fax 317.870.7803

Remember you can visit us online at www.delcofoods.com, “Like Us” on Facebook or follow us on Instagram

BELLISSIMO PEPPERONI Old World Flavor • New World Economics

Quality, Consistency And Value...

We have a full line of pepperoni designed specifically for quality pizzerias that demand a better product. Bellissimo has a full line of pepperoni’s from our premium pork and beef formulation to our spicy Bold or Cup & Char. Only by using Bellissimo will you discover the superior flavor, consistency and value you should expect in a pepperoni. Build your business with Bellissimo. #36015 - Bellissimo Sliced Pepperoni #35035 - Bellissimo Sliced Pepperoni #36079 - Bellissimo “Spicy” Pepperoni #30047 - Bellissimo Cup and Char Pepperoni #34025 - Bellissimo Sliced Deli Pepperoni -

12 CT - 2/12.5# 12 CT - 2/5# 14 CT - 2/12.5# 16 CT -2/5# 5 CT - 2/5#

For more information on Bellissimo pepperoni or to find a distributor in your area please visit out website.

www.Bellissimo.com

A PROUD DISTRIBUTOR OF BELLISSIMO

JULY 2020 VOL. 25, NO. 07

INSIDE THIS ISSUE • Is Help Coming ? • Re-Opening Practices • Market Update

PermitStandard #810 Presorted EC US Postage K PAID PIZ INS Oakland, CA ZA IDE Permit 810 IND FO R US TH TR Y NE LA c/o BELLISSIMO FOODS EW TES T 1600 Riviera Ave. Ste. #315 S

Walnut Creek, CA 94596 RETURN SERVICE

PH:317-876-1951 FAX:317-870-7803 www.delcofoods.com

Delco Foods is a proud distributor of Bellissimo authentic Italian ingredients.

Visit bellissimo.com for more information on Bellissimo authentic Italian items, specials & more!

SWITCH TO STEAMED STEAMED WINGS ARE A GREAT ALTERNATIVE TO FRESH

Labor shortages, prep & cook time, cost fluctuations, product quality fluctuations, yeild loss... why are you still buying raw wings? Steamed wings provides consistent pricing, quicker cook and prep time, no worries of cross contamination, increase fryer oil life and quality and consistent quality. Switch to Steamed: Bellissimo Code 16933