Purpose

Inflation continues to impact to the price of frozen and ambient
food, resulting in the need to issue a variation/increase to the
current contract by 5.36%.
 
The
supplier has provided details of the level of price changes which
reflects the actual wholesale market changes between 26th of
October to date which have been substantial.
 
Options considered.
-      
Continue with current supplier with
increasing costs to the council.
-      
Negotiate with the existing supplier
looking at alternative food options (this has been undertaken but
unfortunately did not mitigate the increases in wholesale
costs)
-      
Terminate the contract with the current
supplier and test the market. However, this would be a high-risk
strategy leading to potentially even higher cost to the
Council
 

Content

To implement a 5.36% variation/increase to the Frozen/Ambient
food contract (Lot 1 and 2 combined) from the 20th of
June 2023.