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2011 Delivers $50 Million in Cost Mitigation for Co-op Owners

Louisville, Ky. — December 1, 2011

Daniel E. Woodside, President and Chief Executive Officer of Unified Foodservice Purchasing Co-op, LLC (UFPC) announced a delivery of over $50 million in cost mitigation this year for members of its A&W, KFC, Long John Silver’s, Pizza Hut and Taco Bell National Purchasing Co-ops.

Cost mitigation is critical as it represents UFPC’s strategic intervention in global commodity markets on core ingredients for more than 2,000 food and packaging items.

“Utilizing risk management strategies, we are able to ensure our members are paying the lowest possible cost on raw ingredients that go into menu items such as chicken, biscuits, pizza, wings, tacos, burritos, burgers, hotdogs, fish meals, tortillas, wings, and more,” said Woodside.

Pete Suerken, Senior Vice President, Centralized Purchasing and Commodity Risk Management said, “Reaching $50 million in cost avoidance this year reflects a well-played procurement strategy by our Centers of Excellence teams. Our purchasing and commodity risk management role evolves with the changing landscapes of world food supply, government legislation and suppliers.”

With the volatility of global markets, a keen focus on macroeconomics and government policies is essential in managing the complexities of UFPC’s positions. 

Kurt Collins, Senior Director, Commodity Risk Management said, “Sometimes the smartest decision is not to take a position at all. Knowing when to wait and when to act is paramount in managing margin and mitigating our members’ costs.”  Events that impact global markets include weather, oil, and biofuel, expanding economies (like China and India), natural disasters, government unrest, fiscal policies, monetary policies, and market speculators.

About UFPC

UFPC’s commodity risk management team watches the markets and coordinates with commodity committees, Center of Excellence teams and buyers to manage market opportunities. Aligning the expectations and volumes of each brand creates successful outcomes in managing the beef, dairy, corn, wheat, pork, polypropylene, soybean meal, soybean oil, and produce markets. 

UFPC, headquartered in Louisville, Ky. with offices in Irvine, Calif., Wichita, Kan., Plano, Texas and Ft. Lauderdale, Fla., is the exclusive supply chain management organization for Yum! Brands, Inc.  UFPC manages the supply chain for all corporate- and most franchise-owned A&W, KFC, Long John Silver's, Pizza Hut and Taco Bell restaurant outlets in the U.S.

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