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News

CoVid-19: the industry adapts to the constraints

05/05/2020 - François-Xavier Branthôme - CoViD-19
March 20, 2020
Morning Star COVID-19 Pandemic Virus Outbreak Statement
 
To whom it may concern,
The Morning Star Packing Company is dedicated to the protection of its colleague, facilities, and resources and is committed to ensuring that our company can continue all critical business processes during a Pandemic Virus Outbreak. Our primary focus during this period is colleague health and safety, as well as maintaining the integrity and efficiency of the domestic and global food supply chain.
The Morning Star Pandemic Outbreak Plan was activated on March 11, 2020 following the WHO declaration of global pandemic due to the COVID-19 outbreak. We understand that now, more than ever, our contribution to the food supply chain is of the most critical importance. 
 
Our plan consists of:
 - Cross functional team of critical colleagues throughout the supply chain in Safety, Sales, Administration, Logistics, Distribution, Customer Service and QA/QC
Identification of critical inputs, as well as primary and secondary vendor contacts
Exposure determination risk assessment by job function/role
Internal and external communication plan and responsibilities
Training and awareness for personal safety and risk exposure mitigation
Work restrictions for affected colleagues
Stocking of critical health protective supplies and PPE (sanitizers) as well as enhanced cleaning procedures
Travel restrictions

On March 19, 2020, California Governor Gavin Newsom declared a state-wide executive order for California to stay at home to slow the spread of the COVID-19 virus. The order provides exemption for continued operation of 16 critical infrastructures identified by the federal government. The Morning Star Packing Company, a food processor, falls under the exemption as our business is a critical infrastructure component. During this period we maintain shipments to our customers as well as the preparation for the upcoming 2020 production season, estimated to start as scheduled July, 2020.
 
From the text of the executive order:
‘I order that Californians working in these 16 critical infrastructure sectors may continue their work because of the importance of these sectors to Californian’s health and wellbeing.’
‘The supply chain must continue, and Californians must have access to such necessities as food, prescriptions and health care. When people need to leave their homes or places of residence, whether to obtain or perform the functions above, or to otherwise facilitate authorized necessary activities, they should at all times practice social distancing.
The Morning Star Packing Company”
 
USA, April 17, 2020
Iri Report: sharp increase in demand for tomato products
In mid-April, Information Resources, Incorporated (IRI) released the percentages of growth in the weekly purchases of food and beverages compared to the same periods of last year (weeks 11, 12, 13 and 14). Sales of tomato products are among the most demanded products and among the most remarkable increase on the US market, with results up by more than 200% for the week ending March 22 and increases of around 75 to 80% in the following weeks.
 
USA, April 21, 2020
Kraft Heinz switches to packaged products to meet growth in demand
Kraft Heinz (Chicago), the world’s fifth largest food & beverage multinational, announced that it has significantly reduced the activity of three of its food service production lines and shifted resources to packaged food facilities.
According to Kraft Heinz CEO Miguel Patricio, the measure was required to cope with the sharp increase in demand for pasta and cheese in the United States.
The company recently donated USD 6.6 million to Feeding America, including USD 1.9 million in cash and USD 4.7 million in food.
 
UK, April 29, 2020
Tinned pasta the “most out of stock product”
As April comes to a close, the title for “most out of stock product” finally has a new winner. According to data insight firm Edge by Ascential, tinned pasta is now the “most unavailable” product across the major UK supermarkets.
 
The data comes from an analysis of products in stock and out of stock in Morrisons, Ocado, Sainsbury’s, Tesco and Waitrose for the week ending 26 April.
Concentrating on percentages of availability for 47 categories of “staple” items -including bleach, dry ambient soup, frozen pastry and dough, frozen sausages, tinned pasta, and toilet tissue - Edge by Ascential found that tinned pasta was on average 38.8% out of stock across the week. This marks an increase of 5.1% compared to the previous week. Toilet paper does, however, continue to see high levels of unavailability. It was on average 38% out of stock – up 0.5% from the previous week.
"UK shoppers are continuing to stock up on the necessities and filling up their cupboards, with items such as toilet paper still high in demand, as well as canned produce," said Edge by Ascential Insight Manager Chris Elliot.
 
Understanding the impact of Coronavirus (COVID-19)
The arrival of COVID-19 across Europe has not only resulted in the immediate concern for public health but is also heavily disrupting the supply chain and operations of various industries, which is causing major economic concern.
In this unprecedented time, having a up-to-date and reliable insight and information on the impact of C-19 to your industry is crucial for making the right decisions, at the right time.
Euromonitor International's research analysts and analytics teams are monitoring the impact of COVID-19 to better assess the short and long term effects on economic scenarios, product categories, pricing, stock availability and consumer behaviour. Explore the interactive ecommerce price and product availability tracker, hear their experts discuss implications and read the latest analysis in this free download report:
Euromonitor International can also provide bespoke C-19 research services to companies or trade organisations with a focus on helping them quantitatively measure and understand the impact of the C-19 on their industry and better anticipate the implications of this impact both today and into the future (contact information upon request).
 
Sources: Morning Star, IRI, packmedia.network, foodnavigator, Euromonitor
 
Some complementary data:
A new website is available at: https://www.morningstarco.com/
IRI: https://www.iriworldwide.com/en-US/Insights/Publications/coronavirus-impact-to-CPG-and-retail

See also the documents below sourced from Morning-Star, IRI and EuroMonitor.
Morning Star Pandemic Statement 2020
IRI COVID 19 Thought Leadership 20200417
EuroMonitor wpCovidPackagedFood 0.4
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