Program Updates: Effective July 1, 2013
 	
Food and Related Supplies Pricing Changes	
Anchor Packaging (Disposables, Film, Plastic Wrap)   Average Category Increase +4.8%
Prices are driven in large part by the price of the raw material polyvinyl chloride (PVC). After remaining relatively flat for nearly a year, the cost of PVC has taken a step up in early 2013 resulting in a category price increase. Raw material prices for PVC are projected to remain elevated in the short term.	
Cardinal International (Glassware)   Price Increase +9%
·          The current agreement has been extended until Dec. 31, 2013. Pricing has been increased by 9% and this is the first increase in three years. Cardinal list pricing has increased by 19% during the same period so our customers have benefited and continue to benefit by using our Cardinal contracted program.
·          Pricing will be evaluated every contract year using a newly-revised commodity and labor pricing formula. Price increases will not exceed the equivalent of 3% per contract year.	
ConAgra Foods (Canned Entrees)   Average Increase +4.8%
The price change is driven by increases in freight and raw ingredients.	
Fair Oaks Farms, LLC* (Cooked Sausage Patty)   Category Increase +3%
Pork Commodity Inputs (Trim – source of ground meats) have increased since last pricing change, consistent with market pricing.
*For Gordon’s market only and four Sysco markets (Minnesota, Iowa, E. Wisc. and Baraboo)	
Foster Farms (Corn Dogs & Breakfast Wraps)   Category Increase +3%
Commodity inputs (primarily corn, chicken and turkey) have increased since last pricing action, consistent with market pricing.	
Grecian Delight (Gyro Meats, Pita Bread, Sauces)   Average Increase +4.6%
The price change is due to increases in freight. There has not been a freight increase with this supplier in over two years.	
JKL Specialty Foods (Asian menu sauces)   Average Increase +5%
The price change is due to an increased cost of goods, which includes ingredients, packaging and labor.	
Pactiv/Prairie/Newspring
·          Polystyrene (Tableware)   Category Increase +0.61%
·          Aluminum (Foil Products)   Category Increase +4.91%
·          Polypropylene (Deli Containers, Newspring)   Category Increase +8.7%
Pactiv product prices are heavily impacted by a range of resin cost drivers, as well as other market prices inputs and have resulted in category increases effective 7/1/13. While the majority of the products manufactured by Pactiv remain flat, we have seen a surge in the raw material of polypropylene and aluminum. Packaging costs and freight inputs have continued to remain flat. 	
Regional Bakery  
·          LeChef Bakery   Average Increase +1%   (effective July 1, 2013)
Regional Bakery pricing adjustments are a result of increased wheat and flour costs.	
Rich SeaPak/Casa Di Bertacchi (Meatball Products)   Category Increase +4%
Beef Commodity Inputs (Trim – source of ground meats) have increased since last pricing change, consistent with market pricing.	
Commodity Driven Contracts
The contracts below are formula-based, reflect the markets and change monthly or quarterly. We will not always provide an explanation for pricing changes, as the pricing of these programs continually ebbs and flows with the markets. A yearlong snapshot of pricing gives the most appropriate view of the benefits associated with entegra’s negotiated pricing, and the monthly pricing reflected does not portray the full year benefit. However, we do want to keep you informed so you can make menu and pricing adjustments as appropriate for your facilities.
 
Read more about commodities and entegra Pricing in the Indicator Forecast Report at entegraPS.com.	
Cargill – Category flat to slightly down -2%
While wholesale and carcass prices are at all-time highs, soft foreign demand and reduced exports, along with a stronger U.S. Dollar, have tampered the effects of the wholesale high prices on foodservice pricing, especially in Ground Beef and non-middle meat cuts. Strong drought conditions still exist in cattle-producing areas of the U.S. Even higher pricing is expected going into the fall season.	
Cheese Updates
–      Schreiber Foods, Inc. (Processed Cheese) Category Decrease -1.0%
–      Great Lakes (Natural Cheese) Category Decrease -1.0%
The April U.S. Department of Agriculture cold storage report showed significant increases in both cheese and butter inventories. The cheese inventory is at a record high in April. Cheese inventories were up 4%. Many feel it is due to lackluster demand both domestically and internationally. Retail demand has been mixed, but international demand is poised to grow. Food service sales have been reported to be fair to poor. Cheese prices in the high $1.80’s and above will be problematic for both the international and domestic markets.	
Darling International  (Kitchen Grease Pick Up Service)
The Jacobson Index average for the last 30 days did not meet the threshold to trigger the monthly fee. This means that Darling and Darling Sub-Contractors will pick up waste oil at locations during this month at NO CHARGE.	
Farmland Foods
–         Raw & Cooked Bacon: Category Increase +7.5%
–         Breakfast Sausage & Whole Hog Sausage: Category Increase +5.8%
–         Ham & Deli Meats: Category Decrease -1.8%
–         Fabricated Pork (i.e. Chops & Tenderloins): Category Increase +4.3%
–         Hot Dogs, Sausage & Pizza Toppings: Category Increase +6.1%  
–         Fresh Pork: Category Decrease -2.0%
Strong foodservice demand, as well as a new presence for pre-cooked bacon in the quick-service restaurant (QSR) category, have driven tight supplies recently. Expect belly (source of bacon) markets to remain strong through the summer months, which is peak bacon season. Retail demand for hams have softened, fabricated pork is still going strong due to increased demand during grilling season. Trim (raw materials for sausages and other ground pork products) markets have started to rally due to lower slaughter levels and inventory decreasing.	
Koch Foods
–         Bone in Breaded: No change
–         Bone in Raw: No change
–         Breaded Boneless Breast: No change
–         Breaded Nuggets and Patties: No change
–         Raw Boneless: No change
–         Pulled, Diced and Cooked Strips: No change 
–         Breaded Strips: No change
–         Cooked Unbreaded Breasts and Patties: No change
–         Wings: Category Increase +0.17%
–         CVP: Category Increase +2.24%
 	
Kraft Foods (Cream Cheese) Category Increase +1.9%	
Ventura Foods (Bulk Margarine) Category Increase +0.32% Ventura Foods (Oil, Shortening)  Category Increase +0.57%	

 
CONTRACT UPDATE:  July 1, 2013				
Type	Contract	Products Covered/Changed	Notes	
Cancelled	Sugar Foods Corporation	Sweet’N Low and Sugar In The Raw	Sugar Foods has sold their distribution rights of Sweet’N Low to Smuckers. Overall program value will remain the same.