Saturday, October 17, 2020

The COVID-19 effect in Soft Drinks Supply chain

 



The global scope of the coronavirus (COVID-19) pandemic and its maximum effects are not yet apparent. Security and protection of personnel, manufacturers, retail associates, and the general public remains the top targets for consumer packaged products (CPG). Over time, businesses working with the manufacturing, storage, and delivery of raw food products, including processed meals and frozen foods, along with alcoholic and non-alcoholic drinks, are part of the food & beverage business.

Before the COVID-19 pandemic, the key reasons for the rise of the food & drinks industry include the rise in the number of on-the-go customers and the increasing adoption of ready-to-eat food. Besides, other growth-enhancing influences of the food & beverage industry have been gradually growing population and per capita income and evolving lifestyle. The shutdowns of the restaurants and other seating areas are, however, the main reasons impacting the food & beverage industry since the pandemic. The global scope of the coronavirus (COVID-19) pandemic and its maximum effects are not yet apparent. Security and protection of personnel, manufacturers, retail associates, and the general public remain top targets for consumer packaged products (CPG). Over time, the pandemic would have far-reaching implications for the U.S. food and beverage sector, possibly re-aligning perceptions towards public health and wellness, reshaping food market priorities, and rising market sensitivity as recessionary effects intensify.

Due to the surge in stock-up grocery demand, particularly for staple goods such as bottled water, major supply chain disruption creates an immediate short-term challenge. In keeping high-demand goods available on the shelves, the direct-store-delivery model used by most major retail soda bottlers in the United States can have a logistical advantage. The number of retail drinks will likely rise in the short term as shoppers fill their pantries with staple items such as water, juice, coffee, tea, and carbonates. Consumers can use current supplies until shelter-in-place and other public assembly limits are finally abolished. As a result, this transient development trajectory will undoubtedly stabilize, negatively affecting the success of the segment in the coming weeks and months.

This involves offline food stores that are shut down in certain countries, restaurants, and cafes, while online food orders are available. Moreover, as customers hurry to refill the pantries, the processed food and beverage sectors are seeing an upsurge in demand, such as shelf-stable foods and drinks like milk products. In almost all countries, including North America, Europe, Asia-Pacific, and the rest of the world, the novel COVID-19 has shaped the food & beverage industry. Among others, Walmart, Instacart, and Amazon have made major investments in capacity for distribution and shipping. In the wake of the COVID-19 pandemic, the pace of food (and beverage) e-commerce adoption in the U.S. could emerge as a permanent improvement.

Humanitarian relief efforts and helping customers meet the food orders of needy, isolated, or quarantined people should be prioritized for heavily affected areas. In the short term, the emphasis must also be on overcoming logistics problems that hinder meeting demand for vital goods during the pandemic. For the near future, home delivery and click-and-collect pickup of drinks and other retail goods will remain in high demand, and the potential for online distribution must be extended (probably with long-term effects). Efforts can be made in newly hit areas to help stores efficiently restock goods following increasing demand and stockpiling.

References:

https://www.businesswire.com/news/home/20200415005321/en/Global-Food-Beverages-Industry-and-the-Effects-of-COVID-19---Analysis-of-Regional-Regulations-and-Other-Government-Policies---ResearchAndMarkets.com

https://www.weforum.org/agenda/2020/04/beer-may-lose-its-fizz-as-co2-supplies-go-flat-during-pandemic/

https://apnews.com/press-release/accesswire/cc6f7f525759dc729c7f4522c447e799

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