Member Advantage_August 2018

Member Advantage New contracted programs Program details Price fluctuations Market and commodity trends Did you know that Foodbuy’s preferred supplier for pies is Tyson? Check out their great options on page 03!

August 2018

Program

Program

Price

Market and Commodity

Announcements

Highlights

Changes

News

Program Announcements August’s Foodbuy Feature Highlights Danone Yogurt!

In August, the Foodbuy Feature will highlight our preferred supplier for single serve yogurt, Danone.

Danone offers yogurt products for every taste - from YoCrunch yogurt mix-ins to health probiotics like Activia. By including Danone yogurt on your menus you can offer your customers a healthy alternative at breakfast, lunch or dinner.

You don’t want to miss this Foodbuy Feature where you’ll find product information, recipes and suggestions for maximizing value while still creating savings towards your bottom line.

In August we are featuring our preferred yogurt supplier Danone who offers delicious products in our yogurt category. Don’t miss valuable product info, recipes, supplier insights and more in this next edition!

Member Advantage Canada | August 2018

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Program Announcements Foodbuy Partners with Tyson in the Pie Category Foodbuy is excited to announce a new partnership with Tyson Foods in the pie category. Our previous supplier in this category, Weston, announced last year that they were exiting the pie business. This left Foodbuy looking for a new pie supplier who could offer similar, quality products at a competitive value.

As a result, Foodbuy has opted to partner with Tyson Foods and their Chef Pierre pie brand due to the quality products they offer, the variety of flavours they can provide and the ease at which they do business. Foodbuy customers who were previously ordering Weston pies, should transition with confidence to Tyson Foods and Chef Pierre as their pies will easily fit on your dessert menus and leave your customers happily satisified.

Popular offerings from Tyson include: Hi-Pie/Traditional Fruit Pies Cream/Meringue/Open-Faced Pies Apple Banana Cream Cherry Chocolate Cream Blueberry Lime Meringue Peach Lemon Meringue Strawberry Rhubarb Pumpkin Pie Caramel Applenut Pecan Pie ...and more For more flavours, product specs and cooking directions from Tyson, please see this sell sheet.

Member Advantage Canada | August 2018

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Program Announcements Aryzta Production Issues Cause Challanges in August Gourmet Baker/Aryzta Burnaby informed us this month that they are having production issues on croissants. Because of production challanges, supply is low and there is not enough product to fulfill current demands.

Foodbuy is working closely with Gourmet Baker/Aryzta Burnaby to solve these issues as qucikly as possible and ensure production returns to normal. A tentative schedule of when certain products are expected to be fully stocked again is shown below:

Product Code

Product Description

2095620956 20958 20959 21004 20971

Cinn Bun BK GB Sticky 48/198 G

Anticipated Date Inventory Will Be Normalized July 28

Cinn Bun BK GB Sticky 80/128 G Cinn Bun BK GB CR/Cheese 48/198 K Cinn Bun UB GB Tex Rai 63/170 G Crois UB GB Blend SM 216/42 G

July 28 July 28 July 28 September 8

20975 20980 20984 20985 20986 20992 20994 20995 20997

Crois UB GB Blend Jumbo 120/84 G Crois UB GB Blend Large 156/63 G Crois BK GB Blend Small 96/35 G Crois BK GB Blend Large 60/56 G Crois BK GB Blend Jumbo 48/70 G Crois Squares UB 180/70 G Crois BK GB Blend LG SL 60/56 G Crois BK GB Blend JBO SL 48/70 G Crois BK GB Butter SM 96/35 G

September 15 September 29 August 18 July 28 July 28 September 29 September 22 August 4 September 22

To avoid delivery issues due tothese production challanges, consider offering other items on your menus like toasts, muffins and danishes.

Foodbuy Advantage Canada | August 2018

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Program Announcements Featured Support Services Product of the Month: WandaNEXT™ WandaNEXT™ is the smart technology that takes washroom and facility maintenance to a whole new level. This intelligent washroom monitoring device creates a next-level customer experience. and provides real time, actionable data that enables facility managers to solve problems BEFORE they become customer or tenant complaints.

The interactive WandaNEXT™ commercial grade tablet enables washroom patrons to identify areas that need attention and cleaning teams to report on cleaning activities and supply replenishment. It also records and analyzes data to deliver critical insights for more proactive and efficient facility maintenance.

Its robust analytics engine empowers facility managers to set replenishment thresholds, response time standards, traffic-based cleaning schedules and more.

Make washroom and facility maintenance easier in your facility with WandaNEXT™. For more information about how this unique technology can benefit you, view this WandaNEXT™ Brochure.

Member Advantage Canada | August 2018

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Program Updates Program Updates August 2018 The information below offers a snapshot of some of the price changes customers can expect to see in August Category

Supplier

Bakery

Effective Date

Foodbuy Monthly Impact %

Type of Change

Reason for Change

Details

Rich’s Products 08/2018

4.5%

Price Increase

Contracted Price Increase

See page 07 for more detail.

Bakery, (cakes and pies)

Dufflet

08/2018

2%

Price Increase

Commodity Index Adjustment

Dufflet originally requested a 3.5% price increase and Foodbuy was successful in negotiating it down to 2%.

Butter

All Suppliers

09/2018

Increase from $8.0062 per kg to $8.3901 per kg.

Price Increase

Commodity Index Adjustment

See page 07 for more detail.

Condiments

Smucker’s

08/2018

Sauerkraut 30% increase

Price Increase

Input Cost Adjustment

Pricing set for 2018 season.

Price Increase

Commodity Index Adjustment

Price increase will only impact August and September as market trends indicate a decrease in October.

Pickled Hot Banana Peppers 8% increase Eggs (value added)

Burnbrae Farms

08/2018

4.16%

Foodbuy was successful in delaying this price increase for one month.

Protein (raw bacon)

OBP

08/2018

20%

Price Increase

Commodity Index Adjustment

We are moving into peak summer months with season high price points. Although we are seeing seasonal increases, they should not be as bad as what we saw last summer/fall.

Protein

Sysco Fine Meats

08/2018

Steak Striploin, 8 oz.

- 12%

Price Increase

Commodity Index Adjustment

See page 07 for more detail.

Member Advantage Canada | August 2018

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Program Highlights Various Factors Contribute to Price Increases on Rich’s Bakery Products In August, Foodbuy customers will see an average 4.5% price increase on Rich’s Bakery products. This price increase is the result of multiple factors including commodity input inflation across ingredients and packaging, higher labour and distribution costs and a $.04/lb price increase on freight.

Foodbuy branded SKUs will only see a 2% price increase, and when you factor in other Rich’s products in our portfolio the increase will average out to 4.5%. Foodbuy has been successful in holding off this price increase as long as possible. Rich’s implemented increases to their other customers in March and implemented a freight increase to other customers in May.

Butter Prices are Expected to Rise in September, Influenced by Various Market Factors The Canadian Dairy Commission (CDC) has recently announced that support prices for butter will increase in September. Prices will rise from $8.0062/kg to $8.3901/kg effective September 1, 2018.

This price increase is influenced by a variety of factors. The cost of milk production has risen by 5.1% in Canada over the last year and fuel and feed prices are also increasing steadily. Higher interest rates are impacting many commodities, including milk, and all of these market developments play a contributing role in the increasing support prices for butter.

Foodbuy is closely monitoring these market conditions, and will provide further updates from the CDC as they become available.

Market Changes in Pork and Beef Commodities Contribute to Price Changes at Sysco Fine Meats Market fluctuations in the pork and beef commodities have contributed to some price changes for Sysco Fine Meats products in August.

Pork prices have been down for the last six weeks and are now moving into a seasonal upward swing which will last through September. The demand for diced and strip beef using the pectoral muscle has remained strong leading to a 12% price increase on Sysco Fine Meats branded 8 oz. Steak Striploin.

To mitigate this price increase, Foodbuy customers should move from a Striploin to a Top Sirloin until prices come down.

Member Advantage Canada |August 2018

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Market and 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: U.S. Manufactured Toilet Paper, Paper Towels and Napkins 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.

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

* Market information provided by Highliner Member Advantage Canada | August 2018

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We’re Here To Help If you have any questions related to the information in this newsletter, please contact your Foodbuy Account Manager.

Thank you!

Member Advantage Canada | August 2018

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