Page 335 - Aida Hovsepian Onboarding

Confidential and Privileged
For the Audit and Finance Committee's Review
Work-paper #1:
Pancake Market Basket vs. Modified Producer Price Index:
2016 Performance for All Categories

Pancake Market Basket MPPI Advantage Driver
Category 2015 Spend 2016 Spend % Spend 2016 fav/(unfav) 2016 Indexed Spend fav/(unfav) fav/(unfav)
[1] [2] [3] [4] [5] [6] [7] [8]
Eggs $75,035,388 $59,335,685 12.4% 20.9% $29,687,298 60.4% -79.0%
Pork $65,732,636 $69,624,836 14.5% -5.9% $65,532,318 0.3% -10.9%
Beef $73,436,024 $71,629,538 14.9% 2.5% $65,716,613 10.5% -15.8%
Bakery $58,320,048 $57,711,566 12.0% 1.0% $58,420,953 -0.2% 1.9%
Grocery $42,601,316 $44,849,020 9.4% -5.3% $43,606,082 -2.4% -3.3%
Dairy $44,027,754 $43,543,593 9.1% 1.1% $44,372,901 -0.8% 2.2%
Beverage $23,933,242 $24,439,318 5.1% -2.1% $24,613,845 -2.8% 0.5%
Coffee $14,235,160 $11,675,604 2.4% 18.0% $13,556,264 4.8% 5.0%
Poultry/Seafood $45,159,375 $44,949,255 9.4% 0.5% $43,553,244 3.6% -3.7%
Potatoes $22,514,462 $22,819,673 4.8% -1.4% $22,715,253 -0.9% -0.3%
Oils $14,122,080 $13,446,510 2.8% 4.8% $14,277,156 -1.1% 2.2%
Paper & Packaging $16,213,050 $15,557,581 3.2% 4.0% $16,008,192 1.3% 1.2%
Overall Performance $495,330,537 $479,582,179 100% 3.2% $442,060,119 10.8% -100%
Pancake Market Basket's Target 14.9% [A]
Actual vs. Target -11.7% [B]
Sources & Notes:
[1]: Category is based on Pancake Price Index.
[2] & [3] & [6]: See detailed workpapers for categories.
[4]: 2016 Category spend / 2016 All categories spend.
[5]: -{[3]-[2]}/[2].
[7]: -{[5]-[2]}/[2].
[8]: If Pancake Market Basket outperforms MPPI, (Difference between each category's 2016 spend and 2016 index spend/Difference between all categories' 2016 spend and 2016 index spend).
[8]: If Pancake Market Basket underperforms MPPI, -(Difference between each category's 2016 spend and 2016 index spend/Difference between all categories' 2016 spend and 2016 index spend).
[A]: Target was approved by Pancake Co-op Board: Pancake Market Basket would outperform MPPI by 4.10%.
[B]: Actual - Target.