May 2021

DELCO FOODS

MAY 2021

VOL. 26, NO. 5

NPD VIRTUAL FOOD SUMMIT 2021 NPD(National Purchase Diary Panel Inc.) Research 2021 Virtual Food Summit Take-Aways:

CAPITALIZE ON PENT UP DEMAND

By Peter Thor, President, Bellissimo Foods Company

Will customers come back to restaurants when political and health leaders allow operators to reopen? A recent trip across the country has answered that question with an emphatic “YES”. Our consensus is much more optimistic than a few weeks ago because of higher vaccination rates, a consistent federal government message on how the virus is transmitted and how important personal protection is, and lastly the government stimulus $$ being widely distributed amongst pizza consuming demographic.

Against this positive note are the simple facts that some of the government stimulus is actually hurting the supply potential. Anecdotal information from large protein and dairy suppliers tells us that they still lack essential workers and that many are 20-40% below pre-pandemic production levels.

Shortages are a combination of raw material and labor shortages. Prices are increasing in virtually every category; grains, poultry, beef, dairy, and made worse by new shortages in PC’s and disposables. Imported product lead times and costs of logistics/trucking are ridiculous by pre-pandemic standards. Keeping our distributors supplied has become a full time and thankless job as shortages abound.

• Likely Scenarios next 3 months?

• Steady recovery through May and June • Sequential recovery lifting restrictions • Restaurant seating limitations easing • Consumers willing to return to in-door dining • Continued support for take-out/ delivery

. . . .

• What is working for Restaurants?

• Compelling value • Digital presence • Family/group offerings • Strong off-premise options (continued on page 3)

MARKET UPDATE Dairy

PRICE

LAST MONTH

DIFFERENCE

Cheese Blocks $1.7800 $1.800 ($0.0200) The USDA raised their 2021 milk output forcast higher by 400 million lbs and is projected to be 2.5% more than 2020.

This will support pending cheese and butter output, but prices will likely remain counter-seasonal firm this spring.

Beef

PRICE

LAST MONTH

DIFFERENCE

The silver lining is “demand” driven by consumers flocking back to eatingout and social occasions. Supporting the likelihood of building demand and a strengthening economy is the Covid stimulus bill and expectations of the final bill coming close to the $2 trillion proposed. The food service industry is showing more signs of life, together with the travel industry being responsible for a majority of strong jobs reports.

Beef continues to rise and the fact that packers are paying up for cattle likely means little price relief to the beef market in the near term.

The challenges of last year were met by our industry with many innovative ways to serve customers in a safe and responsible manner. Many operators used the challenge to reinvent their menu and service offering. From a menu perspective, focusing on a simpler menu and items you can make $$ on. To raise visibility, clever operators found ways to raise their profile

Expect to see the wing markets break a bit lower into the summer as it looks like retail is taking a step back from featuring chicken amid the persistently higher prices.

50% Trimmings

Poultry

$0.8330 $0.4360 $0.397

PRICE

LAST MONTH

Wings(Jumbo) $2.8660 $2.8390

DIFFERENCE

$0.027

(continued on page 2)

A PROUD DISTRIBUTOR OF BELLISSIMO

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PENT UP DEMAND

(continued from page 1)

using Facebook, outdoor signage, revamping their website, posting electronic versions of menu and specials, and developing a blast list of customer emails.

During this pandemic it has become ever more evident that the independent pizzeria/restaurant’s success depends on local traffic. Finding new ways to reach your local customer base is important!

While we wish that the Covid issues would soon go away, it is apparent that a transition back to behavior prior to February 2020 will be a multiyear process. No matter your platform or progress raising your social media profile and customer outreach, we encourage you to continue along the path of transforming your business.

These efforts are consistent with reaching the best target demographic, not to mention that the younger age group is also more likely to put aside Covid concerns. Consider too that the older generation has had to begin using email, internet menus and ordering platforms, so the local target audience for electronic media has expanded.

Updating your website and keeping current menu options and prices needs to be made a priority. Ingredient costs continue to rise and a new report shows that the labor shortage is as bad in restaurants as it is in food plants.

Smart operators will have to adjust prices to reflect what is likely to be a new higher cost reality. Expect higher costs of grain for oils, feed and flour, strong export demand for grain, poultry, and pork in particular, and rising ASF among hog producing regions especially Asia.

Pent-up demand also means that potential customers will be looking for restaurants to re-open and see what the new safety protocols will be. That means another opportunity to embellish your front signage whether in the window, overhead, and sidewalk displays. It also opens further opportunity for concepts to add social components to their dining experience. Many restaurants have closed or changed service, so it is doubly important to be as visible as possible in both web and venue-based signage.

As our industry rebounds, please re-double your efforts to take advantage of the pent-up demand and grow your return customer base. Good Luck!

A PROUD DISTRIBUTOR OF BELLISSIMO

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Bellissimo distributors are the exclusive source for Vantaggio D’Oro

www.Bellissimo.com

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VIRTUAL FOOD SUMMIT

(cont from page 1)

• QSR has emerged as the restaurant choice and has climbed back to pre-Covid conditions. FSR is improving and important to remember, this was not a growing segment prior to 2020.

• We will see many restaurants minimize and reduce front of the house space in favor of grab-and-go/delivery models.

• Demand resides in 3 key areas: shelf-stable product, single-serve offerings, and off-premises friendly. These are trends likely to stay around. Bulk product significantly declined remaining consistent with restaurant and noncommercial need states.

• Dinnerware and tabletop condiments declined VS pre-assembled sandwiches, individually wrapped, disposable containers and bags have big increases.

• The independent restaurant is not “dead”. They did take a huge loss in sales where chains were positioned better to capture delivery and take-out through technology and business model setup but are on the way back.

• Growth is coming from Pizza, Mexican, Global Cuisine, and Seafood type operations.

• Healthy eating continues to evolve. Fads such as Keto have become lifestyle choices. Personalization is the new

in, think iPhone apps and services like Peloton.

• 40% of the adult population is looking for ways in consuming additional protein.

• Snacking has seen huge upside during the pandemic and many consumers were snaking on unhealthy options. Consumers have realized this pattern and are looking for better choices.

• Many trends that were emerging pre-pandemic were fueled and supported with stay-at-home and capacity restrictions: home cooking and eating at home popularity, digital commerce adaption, brick and mortar moving to ghost kitchen and tech savvy, snackification becoming “a thing”.

• As expected, drive thru is up double-digits vs a year ago, delivery +128%, these are trends that will continue well into the future. Many operators and manufacturers have been innovative to keep up with this demand, technology, packaging, delivery mechanisms.

• Working from home will continue and estimated to last high into 2022. Companies are now positioned to see advantages and disadvantages to morale, productivity, and sense of organizational teamwork.

NEW!

CRISPY SEASONED LATTICE FRIES

SWITCH TO STEAMED GREAT ALTERNATIVE TO FRESH

SATISFY CRAVINGS WITH A BOLD FLAVOR.

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.

CONTACT YOUR DIVISIONAL SALES MANAGER FOR SAMPLES TODAY!

A PROUD DISTRIBUTOR OF BELLISSIMO

Switch to Steamed: Bellissimo Code 16933

www.Bellissimo.com

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Employee Spotlight It is said that you can’t understand someone until you walk a mile in their shoes. After 20 years in the restaurant industry as a chef and corporate chef, Delco Sales Representative, Layton Roberts, is uniquely qualified to understand the needs of the restaurant chefs that are now his clients. During his six months with Delco, Layton has been meeting with chefs and managers in kitchens all over Indianapolis learning about their businesses and helping to find solutions. “I always enjoyed teaching and educating my staff and now I get to share ideas, come up with menu items and even help customers save some cash while doing it,” he explains.

Layton’s Delco co-workers have noticed how quickly he adapted from his role in the kitchen to helping as a distributor. “Layton has jumped in making progress right away. Coming from the kitchen he knows why customer requests are urgent and follow up is important,” says Regional Sales Manager, Mark Turner. Customer Service Representative, Elaine Welker, agrees, “Layton hit the ground running and his customers truly appreciate his drive and attention to detail.”

It has not been all smooth sailing, however. Layton joined the Delco team during a pandemic and has had

to meet many of his fellow Sales Representatives over virtual meetings. The hardest part of his new sales role was all the alone time. “I had really gotten accustomed to working side by side everyday with 5 to 10 cooks for the last 20 years, and there was definitely a void in the beginning. Now building the relationships with my customers has begun to fill that void,” Layton says.

It should come as no surprise that in his spare time, Layton does a lot of cooking. He still has several professional private in-home dinners a year and does weekly meal prep for long-standing clients. Cooking is also a constant in his family. He and his wife of 10 years, Kate, enjoy home cooked meals usually seven days a week with their daughters Avanell (9) and Claire (7). When he’s not cooking, Layton and Kate have been doing all of the renovation on their home – that is when they’re not walking their 80 lb Doberman, Mia, or taking their girls to their various sporting events.

Layton’s culinary expertise and willingness to go above and beyond for his customers make him a valuable addition to the Delco Foods family.

Favorite Quote: “Constantly choosing the lesser of two evils is still choosing evil.” – Jerry Garcia

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Comments & Questions

Please contact us toll free at 800.536.1234, locally at 317.876.1951, or visit us online at www.delcofoods.com.

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5000 Anson Blvd, Whitestown, IN 46075 www.delcofoods.com

Spring Savings Catalog Don’t forget to check out the Spring Savings catalog.

Explore new items at discounted prices. But hurry - deals end May 29!

MAY 2021 VOL. 26, NO. 5

INSIDE THIS ISSUE • Capitalize On Pent Up Demand • NPD Virtual Food Summit 2021 • Market Update

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

Be Inspired. Be Creative. Be Original.

TM

Di Prim'Ordine Farina Flour

Source: Technomic’s MenuMonitor Q4 2017-2018

CUSTOMIZED PIZZA WITH NUTELLA®

Nutella® dessert pizza menu offerings have increased 16.7% in the last year.

Di Prim 'Ordine Farina is a “00 Style” Pizzeria Premium Professional Flour, offering a high-quality, untreated patent bread

Source: Technomic’s MenuMonitor Q4 2017-2018

For recipes and to learn more about Nutella®, visit www.ferrerofoodservice.com, or call (800) 408-1505 for more information.

Ferrero 2017 © Ferrero©2019 Ferrero S.p.A. Ferrero S.p.A.

A PROUD DISTRIBUTOR OF BELLISSIMO

flour milled from a select blend of domestic hard winter wheat. It's excellent for hand stretching and a hot, fast bake and packed in an operator-friendly 27.5 lb bag.

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