This Company's Products Are So Popular It Can't Restock Grocery Shelves Quickly Enough
When restaurants closed or switched to delivery, takeout, or drive-thru only and people cooked at home more, they also bought more at grocery stores. The result was packing plants and facilities trying to keep up with an increase in demand for things like meat, cheese, eggs, and baking supplies.
One of these companies is ramping up its production in order to keep up with how many people want their products. McCormick sells household staples like spices, herbs, sauces, and seasonings. They recently saw consumer sales of their products increase by 26% during the pandemic compared to spring 2019. But the high demand means that their factories are behind and products are not getting to stores when they are needed. So they've announced facilities will be open 24 hours a day to get manufacturing numbers back up.
The company's CEO Lawrence Kurzius says they are working toward reversing the low inventory of McCormick spices as restaurants begin to close again and home cooking continues. "By the end of the year we will have added the equivalent of an additional plant of U.S. manufacturing," he said in a call with reporters, according to Supply Chain Dive. He says the company looked at ways to expand the capacity of warehouses and plants, but it became clear they needed to increase manufacturing. Doing so, especially heading into the summer, means that grocery stores will have plenty of stocked items once the holiday season rolls around.
This strategy is different than other companies. Most of them haven't seen McCormick's level of success during the pandemic, and have been forced to cut products from production. Frito-Lay announced that 3% to 5% of their food items will be discontinued. Amy's Kitchen now is only offering 71 items as opposed to their usual 228.
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