As the epidemic changes demand, where do edible flavor companies go?

The new coronavirus epidemic has affected the delivery cycle of some natural pigment and flavor manufacturers. Some manufacturers have tried to increase the processing of raw materials in order to reserve sufficient inventory, while other manufacturers need to shift production operations.


Chr.Hansen: The current supply is stable


Danish biotechnology company Chr. Hansen produces natural pigments and concentrated fruit juices. Michael Schoer, global logistics director and director of its natural pigments department, said that due to good inventory conditions and diverse procurement channels, the current supply of natural pigment raw materials is stable. However, it cannot be completely avoided that the current epidemic affects the delivery cycle or the supply of individual commodities. The company has formulated an emergency plan for this, including the transfer of production operations to other factories.

 

NxtDried expands inventory

 
Peru-based NxtDried uses proprietary drying technology to produce natural functional ingredients that can add natural color, flavor and nutrition to food and beverages.

 
Dafydd Davies, director of EMEA at NxtDried, said the food production plant had to be temporarily suspended due to the strict national blockade measures announced by the Peruvian government. Due to the small size of NxtDried, it can flexibly adjust production.


NxtDried is still in its infancy, and is still focused on expanding its inventory, completing new product development, conducting research and development, and conducting initial sales. The company currently does not need to bear too much indirect costs, nor does it have a lot of inventory to deal with. NxtDried has enough space and logistics to expand its inventory, but is concerned about the seasonality of the fruit and whether it can get a harvester during the blockade period. The company purchases fresh products for processing, and if it stops working, it may cause these fresh products to be wasted. At present, the company is increasing its inventory because the shelf life of dry products is more than two years.

 

Kerry: Consumers turn to storage-resistant food

 
Kerry Group, a raw material supplier headquartered in Ireland, said all its production facilities are still in operation.


Jim Egan, Global Director of Kaierui Corporate Affairs and Communications, said that the company regularly reviews and updates business continuity plans to reflect changing conditions and safeguard the supply chain, including the implementation of raw materials from countries affected by the epidemic Mitigation measures to reduce potential delays or interruptions.

 
Kerry's consumer insights show that COVID-19 is affecting consumer demand and reshaping the trend of food and beverages. Consumers prefer to move from fresh, handmade products using natural ingredients to dry, canned and frozen foods. At the beginning of the month, Lauren Piek of Kerry said that if consumers continue to increase the purchase of these products with a longer shelf life, even if the epidemic fears subside, this change will still have a long-term impact on durable products. Consumers who are used to buying fresh handmade products may not be familiar with how to handle these shelf-stable foods, and brand owners can seize this opportunity.

 

Demand for natural food additives is bullish

 
If countries continue to take blockade measures and consumers continue to purchase storage-resistant products such as cans, manufacturers may consider replacing natural flavors and colors with artificial flavors and colors to create clean labels. In any case, the new coronavirus pandemic has prompted consumers to seek food and ingredients with health benefits.