MARKET NEWS CHEESE TRENDS FROM OUR CUT SHOPS SPECIALTY REPORT. January 2, Emmentaller Find the Most Authentic Swiss Cheese Taste

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1 MARKET NEWS January 2, 2017 CHEESE TRENDS Emmentaller Find the Most Authentic Swiss Cheese Taste SPECIALTY REPORT Spanish Olive Oil Harvest Report O-Med EVOO Tasting Notes FROM OUR CUT SHOPS Beef Market Update Post-Holiday Price Trends Portion-Ready Steaks 12 Reasons to Consider Buying Cut Steaks in 2017 Fish Market Update News on Commodity & Local Species Local Fish Highlight North Carolina Swordfish

2 BEEF MARKET NEWS Greensboro, NC

3 Beef Market News MARKET UPDATE Beef pricing is starting to soften as we work through the remnants of holiday inventories. Retail markets have begun running end cuts during the winter season. As this continues, it may cause some strengthening in the price on end cuts. HIGHLIGHT: CUT STEAKS 12 Reasons to Consider Buying Cut Steaks in 2017 At a time where skilled labor is scarce, and food safety regulations are only increasing, these 12 reasons are why some of the most successful restaurants choose to use portion-ready steaks. The butchers at our Southern Foods Cut Shop average 15+ years of experience hand-cutting steaks and are eager to meet your needs. So if you re interested in seeing these benefits in your own restaurant, ask to speak with your beef specialist to get started! 1. No waste = better cost control - Every ounce of beef bought can be served; no trimming or boning by your kitchen staff is necessary. You know exactly what your cost per portion will be before you purchase your product. 2. Uniform cooking time - When all cuts are a consistent size, shape, and weight, they all require the same cooking time for the same level of doneness. This makes it easier to cook multiple steaks to the same temperature for a banquet or large party, reducing the risk of overcooking some while undercooking others. 3. Little, if any, extra labor is required - No need to expend labor hours on breaking down and weighing out portions of cut steaks. Only the cooking remains to be done. 4. Skilled meat cutters are not required to be on staff - We pay highly skilled meat cutters to prepare portion-ready products efficiently so you don t have to. 5. Reduce injuries - Less use of knives, slicers and saws to break down your meat can mean less injuries for you and your staff. 6. Customer satisfaction - Uneven, and inconsistent portions can sometimes dissappoint customers, especially if multiple orders of the same cut are ordered within a single party. 7. Improved food safety and sanitation - With less handling, and less time exposed in the temperature danger zone, your steaks will run less risk of containing food-borne illnesses. 8. Less loss due to spoilage - For the same reason, you can maximize the life on your cut steaks. 9. No leftovers to be re-stored - Individually packed, portion-ready steaks can be taken right from refrigeration as only demand requires. There is no need to cut and hold steaks out only to be wrapped and returned if unused. 10. Less refrigeration space needed - Portion-ready steaks are packaged compactly, with no extra trim, to minimize storage space. 11. Loss due to theft can be reduced - Because the product requires less handling, the inventory can be entrusted to one person, fixing responsibility and limiting exposure to multiple staff members. 12. Greater variety at less cost - Small case sizes allow operators to feature several different steak items at a lower inventory cost.

4 Beef Market News IN CASE YOU MISSED IT: Dry Aged Beef - The How, The What, and the Why The How There are 4 factors at work when dry-aging beef: aging days, temperature, relative humidity, and air flow. It is important that each of these 4 factors are tightly controlled. The temperature of the room should be between F with a relative humidity of 60-80%. Air flow is controlled by a fan, and proper racks prevent moisture from pooling. Generally, you begin aging with the fat side up to assist the formation of the bond on the meat side. Aging days can range from 7-60 days in most cases, though most preferences range between days. The What A dry-aged piece of beef can lose up to 30% of its initial exterior volume due to water loss, which concentrates its flavor. But there is a lot more going on than dehydration. As the beef ages, tenderization occurs as the enzymes naturally present in the meat act to break down some of the tougher muscle fibers and connective tissues. Additionally, the enzymatic and bacterial activity, along with the oxidation of the fat molecules, create a significant flavor change. Properly dry-aged meat will develop nutty and cheese-like aromas. The Why Simply put, dry-aging creates enhanced flavor and tenderness. 14 days or less: No change in flavor; very little detectable change in tenderness days: Tenderness is noticeably better, but no major changes in flavor days: At day 28, flavors of Foie Gras become present, particularly in the fat. At 45 days, distinct notes of blue or cheddar cheese appear, and the meat is more moist and juicy days: Extremely intense flavors emerge. Rich mineral flavors become very pronounced and pungent truffle and floral tones leave your tongue tingling from the acidic compounds similar to an extra-matured cheese. Beef market news provided by: Chris Casey Protein/CAB Specialist ccasey@southernfoods.com

5 SEAFOOD MARKET NEWS Greensboro, NC

6 Seafood Market News TUNA All grades have climbed up in price the last few days - a majority of fishermen took off for the holiday, so supply is down, coupled with demand being high. We should see fish pricing climb for the next week or so, then fall back once supply gets back on track. All grades of fish are in stock this week: 2G, 2+, and #1. GROUPER (Mexican) Supply is good, but not great. We will have dayboat Mexican Grouper in all this week. Pricing is up slightly from last week. Fillets run 4-6# each, and whole fish 20-40# each. OYSTERS We had a record week on our Jarrett Bay oysters last week, making history with 135 cases sold! Talk about patterning up with a small family run NC business and making a difference. Plenty of oysters in house, supply looks great. Seafood market news provided by: Dave Forcinito Fishmonger dforcinito@southernfoods.com SALMON Wester Ross - Europe is putting heavy demand on all Scottish salmon products, especially the higher-end market. Supply will be limited (we should be mostly covered), but expect a price increase of $0.50 on filets for the next 2-4 weeks. NC CATCH Local Catch is very limited with fishermen being off over the weekend. Look to Flounder, NC Sunburst Trout, Wild Striped Bass (aka Rockfish) and Carolina Catfish to augment supply. LOCAL HIGHLIGHT NC SWORDFISH Guys took a break for the holidays to celebrate with their family, one of the few times fishermen get a real break. With this nice weather, they are excited to go back out fishing. F/V Watersport just came in with some very nice Dayboat sword. This time of year fish are fatty, water is cold and they are fishing close to the port, all of which means excellent quality fish will be landed. We will highlight NC sword all this week, with another catch coming in mid-week. Click here, or visit us on Instagram to watch our fish cutters break down a whole swordfish!

7 ARTISANAL CHEESE TRENDS Greensboro, NC

8 Artisanal Cheese Trends EMMENTALER Emmentaler is the best known Swiss cheese throughout the world. It is very different from other cheeses in Switzerland. Most cheeses in Switzerland tend to have more prominently nutty flavors. Emmentaler can be nutty as well, but with its own unique tangy, cultured-milk taste. It s more noticeable with age, but at any age that taste is what we know to be Swiss. Before tasting, we know what to expect from observing the holes in it. These are created by C02 gas bubbles forming inside the cheese as it ripens. For the holes to be evenly dispersed, handling this cheese requires the most expertise and effort than any other cheese. Each wheel weighs at least 200 lbs. Emmentaler takes its name from the Emmental Valley in Bern, Switzerland, known for abundant pastures and pure, cool water. Production can be traced back to the 12th century. After the second half of the 19th century however production spread out into a wider area and this cheese became more industrialized. Today, even with protected designation of origin, things are not quit the same as it was before. The only cheese still the same, remaining in the Emmental Valley comes from Grourmino, with two large cellars in Langnau. Cheeses made here still use original starters, not commercially standardized stuff used in making other Emmental cheeses. Once activated during ripening in these two humid cellars, it developes into the last of authentic Swiss taste. Emmental cheese, made in Emmental Valley. We carry the green label that is aged around 6 months. The flavor is fruity and mildly nutty with a slight Swiss tang. This cheese is ideal for melting and shredding. Coming Soon smaller portions from our cut shop. Gotthelf Emmental cheese, made in Emmental Valley. Produced only by master cheesemaker, Bernhard Meier at his mountain dairy Hüpfenboden, and ripened to the most ideal profile, this has been the favorite taste in the area since the 1200 s. It s the most authentic Swiss taste there is. Coming Soon smaller portions from our cut shop. Artisanal cheese trends provided by: Sasha Shreders, ACS CCP Cheesemonger sshreders@southernfoods.com

9 LOCAL & SPECIALTY INSIGHTS Greensboro, NC

10 Local & Specialty Update Spanish Olive Oil Harvest Report: 2017 Vintages Ready To Go! Spain is currently experiencing a massive international campaign as exports have increased a whopping 53% compared with levels last year. Spain was subjected to a very dry growing season creating fears of a poor harvest. Early harvest groves reported that though late, supply and quality where on par. Late harvest and commodity groves reported that there were negative impacts on yield and quality though manageable compared to the rest of Europe. As final yields for 2016 European harvest are being reported, it is apparent that the global production of olive oil had a significant drop in In France, drought severely impacted the harvest. In Italy, pests and harsh weather conditions have taken a toll on the olive trees, and this may have lasting impacts. Overall, European countries have had a tough year in terms of production results. And yet, Spanish olive oil exports are reaching incredible levels. The really great news about Spanish olive oil is that early harvest single-origin producers continue to refine their craft and showcase complexity of flavor in their finished product. What they lack in supple and buttery notes, they make up with exciting, and at times, a roller coaster ride tasting experience. My advice is to find a few early harvest oils from Spain and design your food around the oil as you would do with fine wine. O-MED Arbequina EVOO Tasting Notes: The arbequina aroma is reminiscent of green banana with hints of soft green apple. The aromas follow through to the palate, recognizing the astringency of the green banana and even a slight nuttiness of green almond. O-MED Picual EVOO Tasting Notes: Its aroma is categorized as medium fruitiness with green fruits and grass. On the nose one gets tomato plant and green almond with hints of aromatic herbs. The pal-ate gives a persistent taste of artichokes, olive leaf, dried fruits, and green walnuts. The flavor profile balances with a long peppery finish. Balance is the key word for this olive oil. Unbelievable Olive Oil Flavor Combos: Olive oil - Coconut - Sweet Potato Olive Oil - Chocolate - Lime Basil Olive Oil - Juniper - Blueberry Olive Oil - Fig - Vanilla Olive Oil - White Chocolate - Pecan Olive Oil - Foie Gras - Ice Cream Local & specialty updates provided by: Bobby Zimmerman Southern Foods Brand Manager bzimmerman@southernfoods.com