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Spanish consumers won’t repeat stockpiling habits in case of new lockdown

Spanish consumers won’t repeat stockpiling habits in case of new lockdown

Data from the third wave of the report ‘Consumption in and out of the home during and after COVID-19’, compiled by AECOC Shopperview and 40dB consulting, suggests that Spanish consumers feel better prepared for new outbreaks of COVID-19 and trust the supply capacity of supermarkets. Only 27% of those surveyed say they will buy non-perishable products to store at home, while 67% say that this time they will not be afraid of store shortages. Head of commercial and marketing strategy at AECOC, Rosario Pedrosa, said, “Consumers saw during the days prior to the state of alarm how the supply of supermarkets and hypermarkets was always guaranteed, despite experiencing exceptional situations, with the stockpiling of the first days and the unforeseen growth of some categories. So it is foreseeable that, in the event of a new lockdown, the reaction of the buyers will be more rational and predictable.” 

80% of consumers believe that stores should maintain safety protocols until there is a vaccine, and most will maintain some habits that were acquired during the first confinement: 68% continue to shop less frequently, while 63% try to spend as little time as possible in stores.

According to the report, 93% of Spaniards believe that there will be a new outbreak of coronavirus this year. While 49% expect the outbreaks to be small in scale and not require further lockdowns, 44% are anticipating more home confinements. 56.6% of Spaniards are still afraid of contracting the disease and prefer to stay at home. These attitudes condition both their purchasing behaviour and their summer plans, with half not planning to go on holiday. This has resulted in 62.2% of consumers reducing their travel budget and 64.4% cutting expenditure on culture. 

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Sainsbury’s records strong sales but foresees challenges ahead

Sainsbury’s records strong sales but foresees challenges ahead

 

UK retailer Sainsbury’s registered a 10.5% rise in grocery sales in the first quarter of 2020, with online sales more than doubling during the coronavirus lockdown. Online orders rose from 370,000 a week during the same period last year to 650,000 per week this year. However, new chief executive, Simon Roberts, said that he did not expect the current strong sales growth to continue. Indeed, the supermarket chain expects some challenging times ahead, given the precarious economic outlook. The firm estimates that profits could be cut by over £500 million due to increased costs deriving from the coronavirus pandemic, although many of these would be broadly offset by business rates relief and stronger grocery sales.

Sainsbury’s employed 25,000 new staff during the first quarter to help mitigate surging demand during lockdown, and also paid bonuses to 157,000 staff members as a thank you for working on the frontline during the pandemic. The retailer made almost four million grocery deliveries to more than 500,000 elderly, disabled and vulnerable customers.

Photo: Reuters

 

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70% of French bought organics during confinement

70% of French bought organics during confinement © Eurofresh Distribution

© Eurofresh Distribution

 

More French consumers began buying organic products during the Covid-19 quarantine. In fact, during the lockdown, 7 in 10 consumers bought organics, 8% of whom were new to the world of organics. These are the findings of a study published by the Bio Agency, which also reported that consumption was up overall of organics, especially amongst young people (18 to 24 years old), who consumed 11% more (compared to 6% of all buyers). While most sales of organics were in hypermarkets (57%), direct sales also played a key role, with 22% purchased from farms, local platforms or Amapa (French agroecological consumer groups). These direct sales systems are particularly successful in rural areas, where 37% of inhabitants use these channels. Specialty bio stores and proximity stores account for 26% and 24% of organic sales, respectively. Sales of organic products using car pick-up services at supermarkets are up 17% in this period, while online orders (excluding pick-up services) increased 7%.

The report also notes that the current pandemic has raised awareness of organics among consumers between the ages of 50 and 64, of whom 54% claim to have purchased organic produce to support French producers in this sector. Similarly, the growth of direct sales of organics can be attributed in part to their proximity and environmentally friendly production methods. Almost all of the newly converted organic consumers (90%) plan to continue promoting bio producers, citing among their reasons the fact that these products are better for health (59%), are of better quality (57%), and are more respectful of the environment (56%).

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Covid Food Protocol brand launched

Covid Food Protocol brand launched © Sanitex
© Sanitex

 

Leading consultancy firm for the agri-food sector, Sanitex Seguridad y Calidad Alimentaria SL, has designed and registered a Covid Food Protocol brand, which certifies the implementation and application of a protocol against Covid-19 in accordance with scientific evidence, regulations and recommendations of health authorities such as WHO or the Ministry of Health.

This certification, focused on the food service channel and the agri-food industry, aims to verify compliance with the Covid-19 prevention and control protocols in companies, and thus be able to offer security guarantees in the production, transport and marketing of food to health authorities, customers or end consumers.

Given the extraordinary situation generated by the health crisis, it is essential to demonstrate to customers that the appropriate measures are taken to reduce the risks of virus transmission, with the aim of restoring their confidence and reactivating the economy.

For this reason, through scheduled audits, Sanitex auditors, with extensive experience and experts in food safety, evaluate the implemented protocol and its application in the company, checking aspects such as cleaning, disinfection or prevention measures in both hospitality and restoration, as well as in the food industry, logistics, schools, supermarkets or small businesses and tourist accommodation, among others.

Ricard Calatayud Calatayud, veterinarian and partner of Sanitex, said: “Our certification differs from the names of ‘Covid Free’ or similar, since they do not certify non-compliant conditions or that could generate a false sense of security.”

One of the main novelties of this certification, compared to other existing ones, is that its implementation includes a follow-up by the auditors to verify that the protocol continues to be complied with after some time of its implementation.

“In addition, these are protocols that are continually under review, based on new recommendations from health authorities, new applicable regulations and results of all the scientific tests that are taking place,” said Calatayud. For this, a communication channel has been established through which clients are updated on the updates that should be made in said protocols after changes in legislation and recommendations.

As experts in food safety and quality, those responsible for the Covid Food Protocol Brand take into account the specific characteristics of the agri-food sector, in such a way that its implementation not only means a greater contribution of safety to customers, workers and suppliers; It also affects an increase in confidence and credibility in the management against the virus and a position against the competition, among others.

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25th AECOC Commercial Strategy and Marketing Congress to analyse consumption in remainder of 2020

25th AECOC Commercial Strategy and Marketing Congress to analyse consumption in remainder of 2020

The 25th AECOC Congress on Commercial and Marketing Strategy will be held virtually between July 14 and 15. This year’s event will analyse the impact of COVID-19 as well as the transformations it has already generated and is expected to generate in mass consumption. Attendees will be presented with analysis of the economic outlook for the second half of the year for the consumer goods sector. Nielsen CEO in Spain and Portugal, Patricia Daimiel, will advance the consumption forecasts for the remainder of 2020 to obtain a complete picture of what impacts COVID-19 will have.

To complete the photograph of the impact on mass consumption, the AECOC Shopperview area will present the first results of its barometer dedicated to COVID-19. It will analyse the main changes in consumer behavior during and after confinement, identify the consolidated trends and predict how buyers will react to different future scenarios, such as possible new confinements in the event of outbreaks.

The programme on the first day will conclude with master-chef Ferran Adrià outlining his vision of the role innovation should play in the new normal.

Online commerce will be the focus of the second day, with an ‘E-commerce and omnichannel’ roundtable discussion and a presentation by IESE professor José Luis Nueno titled: ‘New opportunities from Direct to Consumer (DTC)’. In this intervention, Nueno will analyse the growth of the direct-to-consumer online commerce model, under which more than 6,000 companies operate in the world, thus eliminating intermediaries and creating flexible and externalised supply chain systems. According to the professor, the acceleration of e-commerce during the COVID-19 crisis will advance the DTC revolution.

About AECOC

AECOC is the Association of Manufacturers and Distributors Companies, one of the largest business organizations in the country and the only one in which the industry and consumer goods distribution work together to develop good practices and technological standards that help companies to be more efficient and competitive, adding value to the consumer. It encompasses both the largest companies and small and medium-sized companies and

It represents sectors as diverse as food and beverages, textiles, electro, hardware and DIY, health and hospitality, among others. It has more than 30,000 associated companies whose joint billing represents close to 20% of the national GDP.

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Concerns over spike of Covid-19 cases in US produce sector

Concerns over spike of Covid-19 cases in US produce sector copyright. United Fresh facebook page, DNO Produce

© DNO Produce (United Fresh)

 

The US produce sector is alarmed by the growing number of coronavirus cases reported among fruit and vegetable packers, according to Reuters. Besides the health risks to staff, the problem is leading to labour shortages that threaten to disrupt US produce supplies. Health officials in the state of Washington report 600 agricultural workers testing positive for Covid-19 in Yakima Country in May, 62% of whom were from the apple industry. For figure until 10th June, the county had the highest per-capita infection rate on the west coast of the US. In Monterey County, California, known for its high concentration of vegetable farms, 39% of all Covid-19 cases were among agricultural workers.

And it’s not only on the west coast that there’s a problem. Immokalee (Florida), a tomato production hub, has also reported a spike in coronavirus cases. Given the importance of the fresh produce industry, the USDA and the FDA have said the government could use the Defense Production Act to protect fruit and vegetable packhouses and keep them in operation. The act would allow packers some liability protection should their employees fall sick with the virus.

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FRUIT LOGISTICA 2021: Pressing Refresh

FRUIT LOGISTICA 2021: Pressing Refresh
PRESS RELEASE

 

The leading trade fair for the global fruit tradeoffers a special report about the impact of the coronavirus crisis on the fresh produce industry.

Berlin, 17 June 2020 – As part of its continued commitment to supporting the international fruit and vegetable business, FRUIT LOGISTICA is making a special report about the impact of the coronavirus crisis on the fresh produce industry freely available to all.

Published by Fruitnet Media International, Pressing Refresh, sponsored by FRUIT LOGISTICA, explains how the coronavirus pandemic has affected fresh fruit and vegetable supply, distribution, marketing and purchasing behaviour in the world’s major consumer markets.

Combining analysis from key players in the fresh produce industry with expert insight from Fruitnet’s international team of experts, this 32-page report includes news, comments and analysis of three key areas – markets, supply and logistics.

“As the industry tries to make sense of what’s been happening during the recent pandemic, we are delighted that FRUIT LOGISTICA has allowed us to make some of our in-depth research and analysis available for free,” comments report author Mike Knowles. “This report illustrates how Covid-19 has changed the fruit and veg business, and what to expect in the months ahead.”

Follow the link to Fruit Logisitica website to find an Executive Summary to download (free of charge).

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Surge in UK farm shop sales

Surge in UK farm shop sales
© geograph.org.uk

 

Farm shops in the UK have recorded a surge in sales during recent months. According to research published by the Farm Retail Association (FRA), the appeal of these outlets is that they provide reliable and affordable access to abundant locally sourced fresh seasonal produce. Of the farm retailers surveyed by the FRA, 92% reported a significant rise in new customers since the lockdown began. Around 79% stated that they had introduced click-and-collect services during the coronavirus pandemic, including completely contactless drive-through channels, while 67% reported having introduced home delivery services. Indeed, the country’s farm shops have processed an estimated 1.4 million home delivery or collection orders since the lockdown measures were introduced.

The FRA stresses that farm shops provide calm environments with easy-to-follow social distancing measures that allow shoppers to feel safe, whilst also allowing communities to benefit from new services that were not previously available.  The UK’s network of farm shops is estimated to have a combined turnover in excess of £1.5bn. 

FRA chairman Rob Copley said: “The last couple of months have clearly shown that farm retailers can react nimbly to customer demands because of their size, independence and direct relationships with local farmers. They have also shown that they are proactive, supportive members of their local communities. We have members who prepare and deliver ready meals to local community groups that support the most vulnerable members of society. Others are donating produce to local school hubs, frontline NHS staff and other key workers.” 

The farm shops will now be hoping that these consumption patterns become long-term habits as the lockdown measures begin to ease.

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US$200bn extra spent on food and groceries in 2020 due to Covid-19

US$200bn extra spent on food and groceries in 2020 due to Covid-19

The current pandemic is expected to lead to an additional US$ 203billion spent on food and groceries around the world in 2020, with the total spend now expected to reach US$9.4tn, according to data analytics company GlobalData.

Thomas Brereton, retail analyst at GlobalData, said, “Coronavirus has transformed the way consumers across the world are buying groceries, both in terms of the amount being bought and channel choice. Less or no dining out has meant more people are dedicating time to home cooking (with 43.3 per cent of global consumers stating they are cooking more at home), resulting in much higher sales at supermarkets. Covid-19 has also been a catalyst for growth in the online grocery channel, with 28.9 per cent of global consumers now buying groceries more online. While this will be particularly impactful in countries with a previously low online grocery presence, such as China and India, even countries with a more mature online grocery market will see growth peak substantially. 

The UK online grocery retail market is expected to grow 25.5% this year, well ahead of the 10.2% growth previously forecast. But will grocery shopping habits remain changed in the long run?

“With most of the additional spend as a result of foodservice spend transference, how quickly restaurants and other food providers can reopen will be key; however, we expect that, for most of the world, demand for such services will remain subdued for much of 2020, and grocers will continue to gain sales as a result,” Brereton said.

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Coronavirus reduces global demand for containers

Coronavirus reduces global demand for containers

 

Danish shipping giant Maersk has predicted that shipping volumes will drop by as much as 25% in the second quarter of 2020 as a direct result of the impact of the current pandemic on global trade. Nevertheless, in a statement, CEO Søren Skou said Maersk is “strongly positioned to weather the storm”. Indeed, the firm posted a profit of US$197 million for the first quarter of 2020. 

Maersk announced that in the first quarter of 2020, it had cancelled more than 90 sailings, equivalent to 3.5% of total shipping capacity, to deal with the slowdown in trade and keep freight rates from falling. Moreover, the company expects to cancel around 140 sailings in the second quarter of the year.