How has COVID-19 affected the Retail Food and Beverage Industry?
How has COVID-19 impacted business?
- Many are aware that in addition to COVID-19’s devastating impact on human health, the virus has also been incredibly destructive on the world economy (4).
Food Innovation and COVID-19
- At Remix, we can say the same. Exploration of new ideas needn’t require a lab. During this ongoing quarantine, the larger Remix team regularly meets online to discuss and share ideas for product development and innovation.
- Whatsmore, planning is currently underway for the development of a more innovative and nutrient-packed bean mix to be put into our Bean Bark flavor, to make our healthy snacks even more nutritious.
Consumers are Appreciating Cooking and Eating More
- The most notable shift in consumer preferences is the recent surge in demand for non-perishable goods such as flour, pasta, canned goods, and snacks such as Bean Bark (5). Some companies have even had to switch to simple white packaging to keep up with the speed of consumer purchasing behavior!
- With more and more people staying indoors, cooking and thoughtful eating have become a common hobby and consumers are becoming more conscious in their eating patterns and snacking choices.
- Luckily, foods such as Bean Bark are high protein, high iron, and high fiber snacks and serve as great alternatives to junk food such as mainstream candy bars. Bean Bark’s nutrient contents also keep consumers fuller for longer periods of time.
- As a response to this surge in demand for non-perishable goods, food companies need supply channels with a focus on the “local.” Such a strategy is three-fold.
- For one, buying local reduces society’s carbon footprint. Local demand means companies do not have to export their products far distances via transportation that emits large amounts of carbon. In addition, buying local stimulates local economic regrowth after recession as consumers invest in neighborhood businesses (3).
- Second, some national and provincial governments have adopted inward-looking economic policies to reduce dependency on imports and strengthen local economies. In the near future, heavier tariffs may be placed on imports, leading to higher costs for the consumer. Buying local averts any excess incurring of costs during pandemic times (4).
- Finally, buying local results in more efficient routes to the product market. Food companies have to export less when consumers opt to buy products that are made in-province or in-country. This is both convenient and cost-effective for food companies (2).
- At Remix, we are proud to serve our Canadian and Quebec-based consumers. Also, the revenue derived from our increase in sales during quarantine is being constantly reinvested to make our production process more sustainable and our Bean Bark healthier, tastier, and more accessible for consumers.
- To learn more about the Food and Beverage Industry, visit our website at www.remixsnacks.ca and follow us on Facebook and Instagram!
Harris, Colin. (2020). “Quebec finance minister says ‘return to growth’ coming as COVID-19 leads to historic deficit.” CBC News. Retrieved from https://www.cbc.ca/news/canada/montreal/quebec-covid-19-economic-recovery-1.5618
Lamanna, Rosanna. (2020). “COVID-19 brings new challenges to the food and beverage industry.” PLANT: Advancing Canadian Manufacturing. Retrieved from https://www.plant.ca/features/covid-19-brings-new-challenges-to-food-and-beverage-industry/
Mattson. (2020). “Mattson COVID-19 F&B Industry Study Results, April 2020.” Mattson. Retrieved from https://www.preparedfoods.com/ext/resources/PDF/Mattson_Industry_Sentiment_Survey.pdf
OECD. (2020). “From pandemic to recovery: Local employment and economic development.” OECD. Retrieved from http://www.oecd.org/coronavirus/policy-responses/from-pandemic-to-recovery-local-employment-and-economic-development-879d2913/
Pieters, Leon. (2020). “Understanding the Sector Impact of COVID-19.” Deloitte. [pdf]