害羞草研究所

Skip to content

Plants 害羞草研究所榦perating 24/7害羞草研究所 to meet consumer demand for food amid COVID-19

Kraft Heinz Canada reported an 80% increase in demand for its Kraft Dinner product last month compared to March 2019
21307091_web1_CPT50758853
FILE 害羞草研究所 In this May 22, 2017, photo, cans of Campbell害羞草研究所檚 soup are displayed at a supermarket in Englewood, N.J. (AP Photo/Seth Wenig)

Campbell Soup Company害羞草研究所檚 production goes into overdrive during what executives dub 害羞草研究所渟oup season.害羞草研究所 Starting in October and ending with the close of winter, Campbell害羞草研究所檚 manufacturing centres run non-stop, staffed by extra employees.

Since the arrival of the COVID-19 pandemic, consumer demand has soared, eclipsing that of the company害羞草研究所檚 busiest time. In March, there were more orders during one week than are typically seen in the entire month.

害羞草研究所淥ur plants are operating 24/7 right now, which is fairly unusual for April, to be honest,害羞草研究所 said Beth Jolly, vice-president of communications at the company害羞草研究所檚 meal and beverages division, which includes Campbell Canada. 害羞草研究所淚t害羞草研究所檚 really just been a dramatic shift to a full-out production increase.害羞草研究所

Demand for food, particularly non-perishable products, has surged as physical distancing measures keep Canadians close to home. Grocers are ordering more from manufactures, who like Campbell have hired more workers, increased operating hours and enacted other measures to increase production.

At Campbell害羞草研究所檚, weekly case orders for that one week in March jumped about 366 per cent at the company害羞草研究所檚 meal and beverage division, Jolly said.

Kraft Heinz Canada, meanwhile, reported an 80 per cent increase in demand for its signature Kraft Dinner product last month compared to March 2019, the company says.

To meet that demand, both manufacturers had to make several changes to ramp up production.

Kraft害羞草研究所檚 Montreal-area production facility 害羞草研究所 where more than 90 per cent of its food for the Canadian market is produced 害羞草研究所 now operates 24 hours a day, seven days a week, said Av Maharaj, chief administrative officer for Kraft Heinz Canada.

The company is considering new ways to increase efficiency. It may prove simpler to produce only one type of packaging for Kraft Dinner rather than a variety of box designs, Maharaj said.

害羞草研究所淔rom an efficiency perspective 害羞草研究所 you don害羞草研究所檛 want to stop your line, change packaging, build out the other one for a smaller packaging line,害羞草研究所 he said. 害羞草研究所淏ut rather, produce the most popular brand, popular size and that gets more product to the market.害羞草研究所

More difficult is changing production lines. Demand is down from food service clients, such as restaurants and hotels. But transforming a food service production line to one making grocery products is not so simple.

害羞草研究所淚n many ways, it害羞草研究所檚 like, you know, a giant Lego system where every piece is connected,害羞草研究所 said Maharaj.

It can be very expensive to switch a production line and take months to do, he said.

害羞草研究所淵ou can害羞草研究所檛 sort of switch overnight from one product to the next.害羞草研究所

The company has been in talks to see if any of its food service products, such as single-serve peanut butter packets, can be sold at grocery stores.

Campbell害羞草研究所檚, meanwhile, is trying to focus more on its most popular varieties of soup.

害羞草研究所淚t害羞草研究所檚 a bit of a balance,害羞草研究所 said Jolly, since the company has to ensure it has enough ingredients to match the increased production.

害羞草研究所淚t害羞草研究所檚 not as if we can just put out chicken noodle and tomato.害羞草研究所

Campbell害羞草研究所檚 also dipped into its existing stockpiles. The company had about 1.5 million cans with limited-edition Andy Warhol labels ready to release in May, but decided to forgo the promotional activity and release the product in April to address demand.

These changes allowed the companies to make more of their products quicker.

Kraft typically makes about seven million Kraft Dinner boxes a month, according to the company. Last month, it made roughly 15 million.

Once the product is made another challenge is getting the extra goods to distribution centres and eventually grocery stores.

害羞草研究所淢ost food manufacturers don害羞草研究所檛 own their own trucks,害羞草研究所 said Maharaj, and Kraft hires local trucking firms to transport its goods from production facilities to distribution centres.

害羞草研究所淰ery often, that can be a bottleneck because everyone needs trucks right now to get food out the door,害羞草研究所 he said, noting the company害羞草研究所檚 logistics team has been working hard and 害羞草研究所渇or the most part, we害羞草研究所檝e been able to find the trucks that we need.害羞草研究所

In some cases, Kraft is bypassing distribution centres entirely and instead shipping straight to grocers.

害羞草研究所淭hat害羞草研究所檚 one of the ways we害羞草研究所檙e speeding up getting product to customers.害羞草研究所

Aleksandra Sagan, The Canadian Press





(or

害羞草研究所

) document.head.appendChild(flippScript); window.flippxp = window.flippxp || {run: []}; window.flippxp.run.push(function() { window.flippxp.registerSlot("#flipp-ux-slot-ssdaw212", "Black Press Media Standard", 1281409, [312035]); }); }