We’ve been monitoring how
the 2019 novel coronavirus (COVID-19) outbreak is impacting the food and
beverage industry. Based on earlier reports, many retail companies in China are
prioritizing the safety of their employees, and consumers, therefore shutting down facilities
in the meantime.
Starbucks has closed 2,000
outlets of its 4,300, according to a BBC report. The coffee
company expects its financial performance to slide as a result of the outbreak.
About 10% of its global revenue for the first quarter came from the China market.
For Mondelez
International, China is also an emerging market, accounting for 4.6% of sales.
The company has heavily invested in product development and marketing in China,
according to a CNBC
report. The snacks company had to close two factories which are located near
Wuhan for now.
Coca-Cola has also
shut down offices and manufacturing facilities temporarily as a precautionary
measure. In a recent conference call with analysts, CEO James Quincey mentioned
that the company’s sales will eventually rebalance.
Bloomberg
reports that beer companies are seeing their sales impacted as restaurants
and bars close in China. Carlsberg CEO Cees ‘t Hart said Q1 revenue will be
severely hit, and cost cuts will be made to ease the effect.
Grain trader, ADM is
not convinced the outbreak will affect its business negatively as of Reuters’
report on February 3. CEO Juan Luciano said that the company will be
impacted if the coronavirus impacts the global GDP.
Support for China
For chemical company,
DuPont, the priority is to deliver products for the prevention and control of
the virus. DuPont told FoodPacific Manufacturing Journal
that through its China national distribution network, it is distributing masks
and other protective gear and equipment to health workers and front-line personnel especially in the provinces of Hubei, Jiangsu, Shandong, and Zhejiang, as well as Shanghai
and Beijing. It is working with local government groups including the CDC, FDA,
Shanghai Medicine Group, Ministry of Industrial Information Technology and
other related organizations, and participates in joint-agency meetings. To
ensure continued supply, DuPont is increasing manufacturing capacity and diverting
stock from other countries into China.
Besides gear, probiotic
products which help to regulate and improve immunity are also being donated by
the company where mostly needed.
Live updates
ASEAN Briefing is
posting live updates related to the COVID-19 outbreak in China and Southeast Asian
countries. Keep posted via this link: https://www.aseanbriefing.com/news/coronavirus-asia-asean-live-updates-by-country/
WHO on the 2019 N-coV
One of the more
frequently asked questions about the 2019 COVID-19 is if the virus can be
contracted from letters or packages coming from China. According to the World
Health Organization, previous analysis shows that the virus does not survive
long in packages and letters.
For more information
about the novel coronavirus, go to: https://www.who.int/news-room/q-a-detail/q-a-coronaviruses
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