Katie, the CEO of DAS Foods, our gourmet caramel vendor, emailed us recently to share the result of their successful cost cutting program. We were impressed and asked her if we could publish the content of her email to show you how a great food manufacturer can work hard to bring the price of its gourmet treats down for you.
So here it is:
Dear All,
In tough economic times it has become difficult to come across good news. That is why it is my pleasure to report to you good news today. For the past year we have been working diligently on making our facility more efficient: this included energy and utility related savings as well as consolidation of the ingredients we use in our caramels and lollipops. Now this work is complete and I would like to share some of the improvements with you:
Energy savings
a. Preventing wastage -recycling water used for cooling equipment
b. Adding outside wall Insulation – helped reduce our gas bills by 25%
Effective use of space
a. Re-negotiated lease cost thus reducing overhead
b. Consolidation of the Caramel and Lollipop facilities helped to spread expenses over several product lines
Ingredient consolidation
a. Streamlining ingredients- consolidated ingredients used for making our caramels and lollipops so that many of them can be used across both lines.
b. Reducing SKUs- we have streamlined our flavor offerings to prioritize our best sellers. As a result we have discontinued two flavors- Chai Latte and Lemon& Honey. These two flavors will no longer be available to our wholesale customers.
Implementation of these improvements enabled us to offer you lower prices on all of our caramels. We strongly believe that new more competitive pricing on our caramels will allow consumers to enjoy them every day and not just during special occasions.
As a result, Savorique could reduce the retail price of those fabulous French soft caramels by about 33% on average! We invite you to take advantage of this great price cut now.
