Food Manufacturer Saves $53,000 Annually Through Competitive Energy Procurement

The opportunity

A leading food manufacturer sought to improve its natural gas procurement process and ensure it was receiving competitive supplier pricing.

The manufacturer had historically managed its energy expenses and supply contracts internally, consistently renewing its natural gas agreements with the incumbent supplier. While this approach simplified the renewal process, it provided limited visibility into whether the supplier’s pricing remained competitive with the broader market.

Tradition Energy identified an opportunity to introduce greater competition into the renewal process and benchmark the incumbent’s offer against alternative suppliers. The objective was to create pricing transparency, strengthen the manufacturer’s negotiating position, and ensure its next contract reflected competitive market conditions.

The incumbent supplier initially offered a NYMEX Basis Adder rate of $0.385/Dth. Without competing bids, the manufacturer had limited ability to determine whether that offer represented favorable market pricing.

Tradition conducted an RFP through its supplier network and identified an alternative supplier willing to offer a significantly lower contracted rate of $0.11/Dth. The competitive bid demonstrated that substantial savings were available in the market.

Tradition presented the competing offer to the incumbent supplier, creating significant negotiating leverage. Faced with a credible market alternative, the incumbent ultimately agreed to match the competitor’s substantially lower pricing.

The Result:
70% Reduction in Offered Rates

Annual Cost Reduction

The competitive procurement process reduced the offered natural gas costs by approximately $53,000 annually compared with the incumbent supplier’s initial renewal proposal.

Contract Pricing Improvement

Competition lowered the offered NYMEX Basis Adder, representing a 70% improvement over the incumbent’s original offer.

Competitive Incumbent Renewal

After Tradition introduced a competing supplier offer, the incumbent agreed to match the lower rate, demonstrating the value of supplier competition while allowing the manufacturer to preserve its existing supplier relationship.

Client Testimonials

Our team has been working with the Tradition team since 2017 for our Texas region, which expanded to our California locations after a few years. Beyond the huge savings we’ve experienced in our electric bills, the relationship built with our Energy Advisors has been invaluable. Their care and expertise protect us from the volatile energy market.

President,
Food & Beverage Corporation

They are professional, knowledgeable, and easy to work with. They were diligent throughout the process and worked in partnership to help achieve our goals.

Purchasing Manager,
National Food & Beverage Distributor

Our team has been working with the Tradition team since 2017 for our Texas region, which expanded to our California locations after a few years. Beyond the huge savings we’ve experienced in our electric bills, the relationship built with our Energy Advisors has been invaluable. Their care and expertise protect us from the volatile energy market.

President,
Food & Beverage Corporation

They are professional, knowledgeable, and easy to work with. They were diligent throughout the process and worked in partnership to help achieve our goals.

Purchasing Manager,
National Food & Beverage Distributor

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Food Manufacturer Saves $53,000 Annually Through Competitive Energy Procurement

The opportunity

A leading food manufacturer sought to improve its natural gas procurement process and ensure it was receiving competitive supplier pricing.

Analysis

The Result:
70% Reduction in Offered Rates

Annual Cost Reduction

Contract Pricing Improvement

Competitive Incumbent Renewal

Client Testimonials

The Scale and Experience Behind Every Recommendation

Case Studies

Proven Results in Food & Beverage

National Beverage Distributor Identifies 20%+ Potential Natural Gas Savings