Delivering Value: The Foodbuy Chicken Sourcing Story

In the ever-evolving landscape of foodservice procurement, few categories have faced as much volatility and complexity as chicken. Over the past year, Foodbuy undertook a transformative sourcing project designed not only to navigate market headwinds but to deliver tangible, industry-leading value to its members. This is the story of how a strategic, collaborative approach to chicken sourcing has resulted in greater convenience, availability, competitive pricing, and quality assurance for Foodbuy members, making it a model for procurement excellence.

Navigating Market Challenges

The Canadian chicken market has been buffeted by inflationary pressures, purchasing shifts, resulting in unstable conditions and unpredictable pricing. For the market, this meant facing uncertainty in both cost and supply – especially as avian flu and other factors drove prices upward. Recognizing these challenges, Foodbuy triggered a comprehensive poultry sourcing event, aiming to rationalize product offerings, consolidate suppliers to leverage enhanced purchasing volume, and holistically review both chicken and halal chicken options.

Historically, Foodbuy managed contracts with over 125 different chicken suppliers, a situation that diluted purchasing power and created confusion for members seeking program compliance and maximum savings. The solution was clear: consolidate the supplier base, streamline purchasing programs, and leverage consolidated purchasing volume to negotiate the best possible pricing and rebates for members.

A Member-Driven, Collaborative Process

Central to the project was a deep understanding of member needs across all industries and channels – from restaurants and hotels to healthcare, education, camps, and even remote sites. Foodbuy’s expert category teams, completed SKU rationalization on 80% of the products members were purchasing, ensuring that both conventional and halal product requests were gathered and consolidated.

The evaluation process was rigorous and collaborative. Chefs from various sectors regrouped for culinary summits and product cuttings. These events featured blind taste tests and detailed product evaluations, with chefs rating chicken products on flavor, texture, and appearance. Up to 20 different SKUs were assessed in a single session, and majority opinions determined which products were most acceptable. Nutritional and allergen information were reviewed, with special attention to requirements such as lower sodium for healthcare sectors. This cross-sector collaboration broke down silos, fostered broader perspectives, and ensured that product offerings met the diverse needs of Foodbuy’s membership.

Strategic Sourcing and Supplier Awards

Armed with consolidated purchasing volume and chef-driven insights, Foodbuy entered negotiations with recommended vendors. The RFP covered four main categories: Boneless Skinless Breasts (BSB), Commodity, Diced, and Value Add. Contracts were finalized with five preferred suppliers, resulting in industry-leading rebate programs across all main chicken products categories. The supplier base was reduced from 125 to just five, enabling stronger engagement, improved leverage, and more consistent service levels.

Pricing mechanisms were carefully aligned to market realities. For example, BSB pricing is tied to the QC Live Bird Index and reviewed every eight weeks, while other categories vary by supplier. Stringent price benchmarking and regular reviews ensure that Foodbuy member pricing remains competitive, with monthly updates communicated in the Foodbuy Price Watch publication.

Transition activities are scheduled from November 2025 through March 2026, including system updates, distributor coordination, inventory management, and conversion planning. The Foodbuy sourcing, procurement, and distribution teams handle all logistics, saving members time and money while providing peace of mind.

For members, the benefits are clear and compelling:

• Industry-Leading Rebates and Pricing: Members enjoy consistent rebate amounts across all products within each vendor category, maximizing savings and simplifying compliance.
• Convenience and Availability: Foodbuy’s internal distribution teams work closely with vendors and distributor partners to forecast purchasing volume and ensure products are available when needed, across Canada.
• Quality Assurance: Products are selected for their consistency and ease of execution in the kitchen, reducing variability and ensuring reliable results regardless of staff skill level.
• Full Category Coverage: Members have access to boneless chicken breasts, commodity, diced, and value-add chicken products, with halal options expanding rapidly.
• Simplified Purchasing: The streamlined supplier base and standardized contracts make ordering easier and more predictable.
• Continuous Improvement: Feedback loops and ongoing refinement ensure that the program evolves to meet member needs, with future innovation days and chef involvement planned.
• Halal Options: Guaranteed halal-certified chicken options across key categories (BSB from Olymel and value-add from Maple Leaf), helping members meet diverse dietary needs while benefiting from competitive rebates, pricing, and streamlined operations.

What’s in it for Foodbuy Members?

Foodbuy’s chicken sourcing project is more than a procurement exercise – it’s a commitment to delivering value, convenience, and quality to every member. By leveraging collective buying power, conducting rigorous product evaluations, and forging strategic supplier partnerships, Foodbuy ensures that members can get the chicken they want, all year round, with no shorting on orders and the quality they expect all while earning rebates.

Members benefit from industry-leading rebate and pricing programs, preferred access to high-quality products, and the information they need to make informed purchasing decisions. The care and expertise invested in this project make it a compelling story of collaboration, innovation, and member-centric value creation.

Foodbuy’s approach to sourcing and procurement delivers convenience, availability, great price/rebate, quality products, and the information needed to order with confidence. The work done on behalf of members ensures that they can focus on their operations, knowing that their chicken sourcing and procurement is in expert hands.