DELCO FOODS
NOVEMBER 2020 VOL. 25, NO. 11
CANE SUGAR VS BEET SUGAR A surprising number of requests for information on different types of sugar prompted this article to explain. Those passionate about cane sugar won’t want to find that the two sugars are chemically identical and equally sweet! However, since the sugar you purchase is only 99.5% sucrose, it is the ½% “Other” that can make a difference in certain applications. Let us explain…
WINNING AND LOSING
By Peter Thor, President, Bellissimo Foods Company
When industry “experts” stop forecasting, it’s because uncertainty is unbounded. That is the situation today and likely will be until Spring. Some important questions will have been answered by year-end, including who the next President will be and when will a vaccine for Covid-19 be approved. Those answers will help determine how quickly the country will recover health safety and economic growth. Both are necessary for our food service industry to move past the current crisis, but that is not enough. There is a real possibility, maybe even a likelihood, that some of the habits and trends evident during the crisis will become permanent. Consider that no matter who wins the election and when a vaccine becomes available to the general public, health concerns will linger and the economy will likely take years to recover. There is little question at this point that 2020 will be recorded as perhaps the most challenging year that restaurant operators will ever experience. The pandemic and related government mandated restrictions have impacted different segments of the food service industry differently. Generally speaking, the pizza industry and QSR restaurants are recovering with some reporting sales greater than pre-Covid. Our industry will have an * next to 2020’s growth %. But fine dining and restaurants which catered to commuters, business travelers, and downtown traffic have experienced sales reductions of 20-40% or more. But location and segment don’t tell the whole story. Consumer behavior has changed in ways some experts believe are permanent. A consumer study completed in August concluded that the Coronavirus has created new consumer habits, notably including consumers being more comfortable cooking and eating at home, and a majority of consumers preferring off-site dining when purchasing from restaurants. These changes will have the biggest impact on fine dining restaurants and in particular independents who’ve not invested in online reservation and order technologies or take-home options. (continued on page 2)
A PROUD DISTRIBUTOR OF BELLISSIMO
Bakers and dessert makers especially notice differences between sugar derived from sugar cane versus sugar beets. This may be historical in the same way that chefs often are reluctant to switch any ingredient they consider key to the success of (continued on page 3)
MARKET UPDATE Dairy Cheese Blocks
PRICE
LAST MONTH
DIFFERENCE
$2.753
$2.576
$0.177
The cheese markets are firm. The cheese block price carry over barrels is narrowing but still unusually wide. August domestic cheese exports were up 16.5% (y/y) with sales to Mexico and South Korea accounting for nearly 50% of the total exports.
Beef 50% Trimmings
PRICE
LAST MONTH
DIFFERENCE
$0.501
$0.484
$0.017
From record beef output throughout late September, beef production fell slightly but was still 0.4% over last year. The grinds are running near their lowest levels since 2016.
Poultry
PRICE
Wings(Jumbo) $2.230
LAST MONTH
DIFFERENCE
$2.153
$0.077
Amid tighter production schedules, wing prices remain near record highs, with tenders, while starting to fade, are running well above year ago levels, as well. Even the dark meat sector is starting to find modest support.
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