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I read the recent quarterly reports from Tyson and Sysco (Q2, and Q3, respectively) and both reflect the deep impact of restaurant, hotel, catering and other volume foodservice shutdowns on each of their businesses (and by extension, the cold foods supply chain) due to COVID-19. Here are my thoughts on the future of foodservice and what companies along the cold chain can do prepare for it.
Recently, 100 volunteers from Bellisio Foods, the largest employer in Jackson County, shared more than 90,000 meals from drive-through distribution centers at Oak Hill High School, Jackson High School and Vinton County High School. A total of more than 2,500 vehicles each received two cases (or 36 meals), bringing the total number of meals donated to Southern Ohioans by Bellisio Foods in the past month to more than 175,000.
Sysco Corporation announced the launch of a new “Foodservice Doesn’t Brake for Adversity” campaign designed to help small foodservice businesses stay in business. The campaign will consist of strategically placed messages across multiple channels designed to encourage Americans to support their local restaurants and also highlights the resilience of all foodservice workers.
This week on our From the Cold Corner podcast, I spoke with Josh Knott, president of the Refrigerated Foods Association (RFA) and Knott's Fine Foods in Paris, Tennessee. We discussed worker safety, supply chain slowdowns due to COVID-19 precautions, and how panic buying and fear of perceived food shortages by consumers can be a self-fulfilling prophecy.
To date, three plants have experienced at least one confirmed positive COVID-19 case among their teams. At each of the affected plants, George's immediately implemented COVID-19 response plan actions, making sure that all health, safety, and sanitation measures were implemented, including deep cleaning procedures and notification of any coworkers who had possible close contact with these individuals. The approach, and the practices adopted, follow the guidance issued by the CDC and utilize the hierarchy of controls.
Cooper Farms is working to provide food and resources to their fellow Ohioans. The farm and food company, located in western Ohio, has made several donations over the past month, providing over 21,000 protein-rich meals, including nearly 6,000 pounds of turkey and 27,000 dozen eggs to the Ohio Association of Food Banks in a series of deliveries from the turkey, pork and egg company. An additional 1,100 pounds of turkey burgers were donated to area groups providing socially distanced serving of hot lunches for children and meals after virtual church services.
Borden Cheese donated 48,000 units of its Borden Cheese Crisps ‘n Cubes snack trays to Second Harvest Food Bank of Middle Tennessee, which is part of the national Feeding America network. The donation, which was delivered to Second Harvest Food Bank of Middle Tennessee in Nashville, Tennessee, will be distributed to hungry adults and children in 46 counties across the state. Additionally, a portion of the donated product will go to essential health care workers on the front lines at Nashville General Hospital.
Smithfield Foods expressed its support for the activation of the Defense Production Act which safeguards the country’s food supply that provides sustenance to hundreds of millions of Americans during the COVID-19 pandemic. It also protects the livelihoods of millions of American family farmers who produce bountiful livestock supplies but rely on meat processing facilities to convert that abundance into food. Grocers and restaurants are dependent on farmers, processors and distributors to supply protein to the country. This action helps ensure the American people will not experience protein shortages.
The adage, "shoot for the moon and you'll still land among the stars" comes to mind when assessing frozen food sales since early March. The rocket launch of consumer stockpiling created astronomical sales figures that were impossible to sustain, but now that buying has leveled off, the year-over-year numbers look like they'll be hovering around +30% over 2019 sales for weeks to come, if not the rest of 2020, according to new data from the American Frozen Food Institute (AFFI) and 210 Analytics. That means the meteoric sales arc created by panic buying in March has a long way to go before it comes down to normal levels.
Golden West Food Group (GWFG) is donating $2 million worth of meats to the City of Hope Hospital, Los Angeles Police Department, Los Angeles Fire Department, Los Angeles Unified School District, Salvation Army, Los Angeles Regional Food Bank and others in need, to support the relief efforts associated with COVID-19 pandemic. GWFG is headquartered in Los Angeles County, California.