Grocers Stockpile, Build ‘Pandemic Pallets’ Ahead of Winterhttps://www.wsj.com/amp/articles/grocers-stockpile-build-pandemic-pallets-ahead-of-winter-11601199000Grocery stores and food companies are preparing for a possible surge in sales amid a new rise in Covid-19 cases and the impending holiday rush.
Supermarkets are stockpiling groceries and storing them early to prepare for the fall and winter months, when some health experts warn the country could see another widespread outbreak of virus cases and new restrictions. Food companies are accelerating production of their most popular items, and leaders across the industry are saying they won’t be caught unprepared in the face of another pandemic surge.
... Associated Food Stores recently started building “pandemic pallets” of cleaning and sanitizing products so it always has some inventory in warehouses, said Darin Peirce, vice president of retail operations for the cooperative of more than 400 stores. The company is establishing protocols so it can better manage scenarios of high demand.
... These changes, a reaction to the sudden and massive shortages grocers experienced in the spring, amount to a shift from the just-in-time inventory management practices that have guided the fast-moving retail business for decades.Now, food sellers are stockpiling months, rather than weeks, worth of staples such as pasta sauce and paper products to better prepare for this winter, when people are expected to hunker down at home. Ahold Delhaize USA, SpartanNash Co. and others say they are buying more food as soon as they can, stocking warehouses with wellness and holiday items. Many retailers are expanding distribution capacity, augmenting warehouse space and modifying shifts.
... Ahold Delhaize, owner of the Giant and Food Lion chains, already has its holiday inventory in its warehouses. The grocer is also storing 10% to 15% more inventory than it did before the pandemic to ensure it won’t run out of fast-selling items.
Industry executives say they don’t think a potential wintertime burst in grocery demand will be as extreme as it was in March, when people panic-shopped, fearing grocery-store closures or food shortages.
... Hormel Foods Corp. CEO Jim Snee said on a recent conference call that the company has 24% less inventory than a year ago. Its bacon, pepperoni, Skippy peanut butter and SPAM canned meat could run short if Covid-19 cases among workers interrupt production again, he said.
“We can’t afford any disruptions,” he said.
General Mills Inc. said it hasn’t caught up with demand for Progresso soup, Betty Crocker cake mixes and Pillsbury refrigerated dough. It is increasing its production capacity and has hired 30 new outsourcing partners since March. The company said the entire industry is still struggling to rebuild inventory on similar items.
Campbell Soup Co. ’s overall inventory is only about halfway recovered, and the team is pushing hard to fully catch up by January, according to CEO Mark Clouse. It is racing to get its Chunky and condensed soups and Swanson broths back in stock and adding production capacity for snacks such as Pepperidge Farm Goldfish crackers and Cape Cod potato chips.
Walmart Inc. Chief Financial Officer Brett Biggs said the company is overriding its grocery-ordering algorithms in many stores to build up extra inventory now, after decades of becoming increasingly lean.--------------------------------
The number of Covid-19 infections at food factories that supply UK supermarkets and restaurants could be more than 30 times higher than reported, according to a new report that warns employers have too much influence over official data.
https://www.theguardian.com/environment/2020/sep/27/covid-cases-at-food-factories-in-uk-could-be-over-30-times-higher-than-reportedFood manufacturing – and meat processing plants in particular – have been at the heart of several major local outbreaks, with workers reporting cramped conditions and pressure not to take days off even when displaying symptoms.
But just 47 notifications of Covid-19 workplace infections – and no fatalities – have been reported to health and safety authorities by food manufacturing companies, who employ 430,000 people in the UK.
A new investigation by Pirc, which advises shareholders on ethical investment, found that there have been at least 1,461 infections and six fatalities, with the true figures likely to be even higher.