Fueling our Future Highlights – Deli and Bakery
Dept
FoF Project Initiative
Updates
Team requested further clarity on Chicken and Turkey models that were presented for review. Sourcing is waiting to secure updated models for Economist and Category team review. Follow up meeting to discuss models in detail is set for 9/13, but contingent upon the information being available beforehand to have valuable dialogue. The brands have aligned to bid both an import and domestic cheddar option for Q1. Sourcing is preparing the bid to kick off following the team summit scheduled from 9/21 - 9/23 at the Food Lion campus. We had a follow up call last week on moving GFI to EDI. We can start moving to EDI invoicing once we have approval from all brands. Sourcing has coordinated necessary approvals with the brands and awaiting feedback from working group on next steps to implement. Teams have aligned to take additional loads from Tyson starting with deliveries on October 2. This secures supply for 2023 with Tyson across all 5 brands with a common spec across Hannaford, Giant Food, Giant Company, and Stop & Shop. Food Lion will utilize a smaller spec to increase available supply. Discontinuation Letters and notice have been given to Koch and Allen Harim for Food Lion and Stop & Shop with last shipments occur October 1. This removal allows for the brands to move into 18 Tyson additional loads. Supply is now secure for 2023 for total ADUSA. Sourcing and brands will continue to negotiate pricing for 2023 as supplier have been hesitant to provide set pricing as they await the grain harvest impact to feed cost. Continuing to meet with Richs to align on cost evaluation process to implement into contract so we can transition conversation to longer term partnership cadence. Based on how they have purchased commodities, Rich's first opportunity to re-look at pricing will be January 2023. Brill has aligned on our common goal to implement a cost evaluation process on a quarterly basis. Sourcing sent proposal to Brill for a pricing review schedule to begin in October with pricing implementation to follow 30 days after review, we are awaiting their confirmation. The next step will be to execute this into a contract - sourcing is working with contract support to capture all items for this schedule. Donuts RFP for secondary supply has been closed. After reviewing pricing and supplier commentary, CMs have decided to stay with the incumbents as the supply of donuts has improved. CMs would still like to look at Donuts as a whole and add to the assortment with a more Gourmet Thaw & Sell offering, we will discuss next steps for this at the summit in September. In preparation for the discussion, CMs have completed a "Fresh Alignment Form" to help private brands & sourcing understand the goals by banner. The review will also include suggestions from the Innovation Team. Due to supply concerns in Q2, focus for secondary supply was placed on Table Talk Pies to ensure coverage for Holiday. A discovery was conducted June week 1 and results were provided to category teams. As of August week 1, the outlook for Table Talk pies has improved and CMs do not feel we will need to dip into a secondary supplier for the time being. Continuing to meet with Lofthouse to stay up-to-date on constraints & their plans to correct the supply issues. Current priority is to get core business up and running so we can start to focus on other programs (volume incentives, e-commerce). As of June, Lofthouse products have been taken off allocation but will see another increase on 9/25. We have received confirmation that the sale of the Treehouse business that has been divested will have no impact to in-store Bakery. After testing Buy Online/Pickup in store strategies at Stop & Shop in the Spring, Stop & Shop has been approved for additional E-Commerce tests starting January 2023. The new test will include a "virtual aisle" for Bakery which will offer UPC and pre-made items to the customer. There will also be opportunities to promote products on the tiles within the Bakery page. Results will be quickly shared as the test rolls out. Ecomm Ways of Working meets frequently to go thru process and improvement suggestions. Currently, SS is the first banner to utilize the photo studio at HRD to close the gap on their items that are not listed online - once they are finished, we will designate another banner to do the same. Next steps for the group will be to determine how we can utilize images for the same product across all ADUSA ecommerce platforms to create efficiencies and consistency.
Cooper Farms - TOI Poultry (Long Term Partnership) Q1 – Cheddar Push (Aligned Seasonal Buys)
Deli
Deli
Deli
GFI Assortment Optimization
2023 Rotisserie WOG (Surety of Supply/Spec Alignment)
Deli
Bakery
Richs (Long Term Partnership)
Bakery
Brill (Long Term Partnership)
Donuts (Surety of Supply/Assortment Review)
Bakery
Bakery
Holiday Pie Supply
Lofthouse (Surety of Supply/Long term Partnership)
Bakery
Bakery
Ecommerce - Buy Online/Pick-up In store
Bakery
Ecommerce - Getting products online
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