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National & World Ag News Headlines |
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Companies Ready for Second Wave of Food Stockpiling
USAgNet - 10/30/2020
American consumers who've worked their way through the trove of shelf-stable meals they frantically bought back in March are at it again. This time, food makers are prepared.
General Mills Inc., the maker of Cheerios and Annie's boxed mac and cheese, added 45 external production lines through contractors since the first round of pantry loading this spring. Campbell Soup Co. spent $40 million to expand production of Goldfish
crackers and is building capacity for chip brands like Cape Cod. Chicago-based Conagra Brands Inc. boosted third-party manufacturing and warehousing, while Stonyfield Farm, a producer of organic yogurt and milk, added farmers to its supply network.
Bloomberg news reports America's food-makers are determined not to get caught flatfooted again. Many companies left sales on the table this spring when they couldn't ramp up production fast enough for the dried pasta and canned soups that skittish
consumers were stockpiling. Food producers used a calmer summer to assess the new grocery landscape and rework their strategies. Now, with Covid-19 cases climbing again and big holiday meals getting closer, investors are waiting to see whether it will be
enough.
They won't have to wait long to find out. Signs point to another round of stockpiling already starting. Demand for items like baking goods spiked 3,400% from a year earlier in the three weeks through Oct. 13, according to Centricity Inc., a platform that tracks
online activity like searches and e-commerce. Mike Brackett, Centricity's chief executive officer, said that's less than the 6,000% jump that preceded the first wave of pantry loading, but he expects this one to hit a wider range of products beyond canned goods
and other staples.
"In the last three to four weeks, we've seen very drastic increases, similar to how we did with the first wave of the pandemic," Brackett said.
The fresh pantry loading comes as U.S. hospitalizations hit a two-month high last week as 37 states reported increased numbers. Parts of Europe and Latin America have also seen a rise in cases. While food companies insist they are better prepared than
before, some shortages persist.
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