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Plants 含羞草研究社榦perating 24/7含羞草研究社 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
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FILE 含羞草研究社 In this May 22, 2017, photo, cans of Campbell含羞草研究社檚 soup are displayed at a supermarket in Englewood, N.J. (AP Photo/Seth Wenig)

Campbell Soup Company含羞草研究社檚 production goes into overdrive during what executives dub 含羞草研究社渟oup season.含羞草研究社 Starting in October and ending with the close of winter, Campbell含羞草研究社檚 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含羞草研究社檚 busiest time. In March, there were more orders during one week than are typically seen in the entire month.

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

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含羞草研究社檚, weekly case orders for that one week in March jumped about 366 per cent at the company含羞草研究社檚 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含羞草研究社檚 Montreal-area production facility 含羞草研究社 where more than 90 per cent of its food for the Canadian market is produced 含羞草研究社 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.

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

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.

含羞草研究社淚n many ways, it含羞草研究社檚 like, you know, a giant Lego system where every piece is connected,含羞草研究社 said Maharaj.

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

含羞草研究社淵ou can含羞草研究社檛 sort of switch overnight from one product to the next.含羞草研究社

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含羞草研究社檚, meanwhile, is trying to focus more on its most popular varieties of soup.

含羞草研究社淚t含羞草研究社檚 a bit of a balance,含羞草研究社 said Jolly, since the company has to ensure it has enough ingredients to match the increased production.

含羞草研究社淚t含羞草研究社檚 not as if we can just put out chicken noodle and tomato.含羞草研究社

Campbell含羞草研究社檚 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.

含羞草研究社淢ost food manufacturers don含羞草研究社檛 own their own trucks,含羞草研究社 said Maharaj, and Kraft hires local trucking firms to transport its goods from production facilities to distribution centres.

含羞草研究社淰ery often, that can be a bottleneck because everyone needs trucks right now to get food out the door,含羞草研究社 he said, noting the company含羞草研究社檚 logistics team has been working hard and 含羞草研究社渇or the most part, we含羞草研究社檝e been able to find the trucks that we need.含羞草研究社

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

含羞草研究社淭hat含羞草研究社檚 one of the ways we含羞草研究社檙e speeding up getting product to customers.含羞草研究社

Aleksandra Sagan, The Canadian Press





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