Tag Archives: packaging

CJ Pakeltis, RizePoint
FST Soapbox

Food Businesses: Reduce Food Waste and Save Significant Money

By CJ Pakeltis
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CJ Pakeltis, RizePoint

After two years of COVID-19—and now an escalating Russia-Ukraine conflict—the failing supply chain is a pressing concern in the food industry. Exacerbating the supply chain issues is our excessive food waste problem. As supplies become more difficult and expensive to secure, we should be focusing more attention on reducing waste. Food businesses that proactively work to reduce food waste will save significant money, meet corporate sustainability goals and help the planet.

Food waste is estimated at between 30-40% of the U.S. food supply, which equates to an astonishing 133 billion pounds and $161 billion in waste, according to the USDA. In addition to discarded food, there is also considerable waste of labor, energy and other resources that go into producing, processing, transporting, prepping, cooking, storing and disposing of unused food.

Food waste occurs for many reasons, including:

  • Spoilage at every stage of the supply chain
  • Problems like mold or bacteria during harvesting, transporting, processing, etc.
  • Damage by insects, rodents, and other pests.
  • Equipment malfunction (such as faulty walk-in coolers).
  • Improper storage (e.g., not holding foods at proper temperatures).
  • Over-ordering, over-prepping, or cooking more than what’s needed, and tossing out the extras.

Many food businesses inadvertently practice wasteful behaviors. This is due, in large part, to the lack of accurate, comprehensive data. If operators don’t have accurate data about their inventory, sales patterns and forecasts, it can lead to food waste, which can be costly to your business and damaging to our planet.

At a time when every dollar counts—and the supply chain is strained—your organization should proactively work to reduce food waste. The following are some effective ways to accomplish this goal.

  • Adopt the right software. Integrated software is the best solution to eliminate wasted food, money and other resources. Today’s systems allow organizations to view sales patterns, track inventory, manage production, avoid overstocking, enhance food safety and quality, and determine areas of wastage. Tech solutions allow organizations to use data—not instincts—to make better, more profitable, less wasteful decisions.
  • Conduct a food waste audit. Food waste is bad for the environment as well as business margins. A food waste audit can help a company determine how much food is being wasted, as well as the type of foods not being used effectively. This practice can help companies address waste problems and adjust their inventory accordingly.
  • Implement sustainable strategies. It’s problematic—and wasteful—when retail locations receive large quantities of fresh foods and can’t sell it all before it spoils. Hannaford Supermarkets found a solution to this common conundrum. They have their trucks deliver smaller amounts of food more frequently—versus less frequent, higher volume deliveries. As a result, they are selling fresher produce with less waste.
  • Make waste reduction part of company culture. Train staff to reduce waste, and properly use, cook, package and store foods while always prioritizing waste reduction. Adopt a waste-not-want-not mindset and follow sustainable strategies that are practiced starting in the C-suite.
  • Donate surplus food. After learning that billions of pounds of food goes to waste in the United States while millions of people are going hungry, entrepreneur Jasmine Crowe created Goodr, a food waste management company that connects food businesses with a surplus of supplies to non-profit organizations that give it to the food insecure. Additionally, grocery chain Trader Joe’s is well-known for their generous food donation program. In just one year, the company donated $295 million worth of their unused products to food banks, feeding the hungry and eliminating a huge amount of waste.
  • Improve packaging. Our industry must create better packaging that effectively protects and preserves food throughout the entire supply chain cycle—and helps reduce waste. For instance, companies are experimenting with more compostable packaging, clearer use-by/expiration dates, easier-to-understand usage instructions, tips for storing leftovers, and ways to use some of the food without compromising the rest of the food in the package.
  • Reconsider portion size. Some restaurants offer smaller meals (i.e., half portions) to reduce waste. Food manufacturers are also providing smaller options, such as the single-serving Duncan Hines Perfect Size Cakes for customers who want just a small treat without having to waste an entire cake. Sabra Singles hummus, Good Culture cottage cheese, Kraft Mac and Cheese and other companies offer single serving containers, which means less waste.
  • Use every scrap. Vegetable peels, eggshells, coffee grounds, tea bags and other non-meat scraps can be used for compost, which is nutrient-rich and will go back into the earth to grow more food. Use the compost to grow your own herbs and produce or share it with local farmers and gardeners.
  • Consider other eco-friendly options. Sustainable organizations are taking our food scraps and recycling them into bioenergy, bioplastics and clothing. Investigate eco-friendly organizations in your area and donate your unused food to them to repurpose it. For instance, H&M’s Conscious collection uses silk-like fabric made from citrus juice by-products and discarded orange peels. Other clothing lines, cosmetics companies and other innovators are making sustainable products from food waste.

It is important to recognize that the food industry’s waste isn’t limited solely to food. The following are some additional eco-friendly practices that companies can implement.

  • Reduce plastic waste. Americans produce a whopping 42 million tons of plastic waste annually. Increasingly, companies are looking for eco-friendlier options. Footprint, a materials science company, is inventing and manufacturing plant-based solutions to replace plastic. This innovative company is working with food companies—including McDonalds, Costco and Conagra—to adopt plant-based solutions, eliminate short-term use plastic, reduce CO2 emissions, cut landfill waste, and reach corporate sustainability goals. Stonyfield Farm, known for their planet-friendly business practices, is making their yogurt cups from plants. In fact, the market for edible packaging is on the rise, and expected to grow by almost 5% by 2030. A growing number of food businesses are now relying on biodegradable and compostable packaging solutions instead of plastic. Are you one of them?
  • Pick the right partners. Select partners (e.g., suppliers, vendors, etc.) that are also focused on sustainability. Digital solutions can easily track supplier certifications to ensure that you’re sourcing from—and collaborating with—other companies that are committed to waste reduction and other eco-friendly business practices.
  • Focus on sustainability. It takes considerable energy to run equipment non-stop, so shut down non-essential equipment during slow times to save energy and money. Also, insulate your hot water pipes to decrease the amount of water your organization uses (and lower your heating needs and costs). Turn off the air conditioning and open windows. Use silverware instead of plasticware, and reusable towels instead of paper. Think of different ways to reduce waste throughout your organization and you’ll save money, resources, and the environment.

Prioritize waste reduction using these proven strategies. Remember that every little bit helps, and even the smallest changes will add up to a substantial difference over time.

In-line micro-hole detection

Technologies for In-line Monitoring of Micro-Holes in Packaging

By Paolo Tondello
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In-line micro-hole detection

In-line verification for the presence of micro-holes throughout food packaging production is possible by means of an innovative application of IR (Infrared) spectroscopy, or via gas sensors capable of detecting the leakage of target molecules present inside packages.

The areas of application sectors can be modified atmosphere packaging (MAP) packaged products, bakery products preserved with alcohol, food products preserved in nitrogen or air whose release of aromas can be detected.

Today, there are many preservation technologies available on the market for packaged food that lengthen the product’s shelf life while ensuring its organoleptic characteristics and food safety. Replacing air with a gas mixture (MAP) or with nitrogen, or by adding alcohol, are some preservation methods that cover a wide range of products. For all products, it is essential to check:

  • The type of packaging, correctly barrier-coated to prevent the leakage of any preservation substances
  • The gas mixture for MAP packaged products is correct for the type of product
  • The presence of alcohol inside the package for bakery products
  • Via seal test

This last point, checking for the presence of micro-holes in the packaging, is crucial to avoid thwarting all efforts to optimize the packaging’s preservation mixture. Therefore, let’s examine how it is possible to perform a seal test, and the innovations brought about by IR spectroscopy technology that introduce important elements of in-line monitoring of the presence of micro-holes in packaging and the seal’s integrity.

In-line micro-hole detection
Checking for the presence of micro-holes in the packaging, is crucial to avoid thwarting all efforts to optimize the packaging’s preservation mixture. Image courtesy of FT System.

Micro-Holes in Packaging: Consequences of Spot Checks

The presence of a micro-hole in packaging is a particularly critical problem in the food industry, since it can lead to poor food preservation and the loss of its organoleptic characteristics—as well as the possible formation of mold.

Micro-holes may form as a result of defective sealing processes or during the various processing stages of the package, and can lead to negative consequences of the product days later, when the package is already in the shop or on the shelf of a supermarket. Therefore, it is important to make sure the container is intact during the production stage.

The procedures normally in use today to check for micro-holes are spot checks, which detect the loss of pressure or leakage of gas from the package by immersing the product in water, or via an instrument that applies a “dry” vacuum. In the first case, which is called a bubble test, the product is immersed in a container filled with water that is hermetically sealed and to which an external vacuum is applied. This encourages bubbles to come out from any micro-holes, which can, at this point, be checked visually or by means of a camera.

In the second case, a vacuum is created that is carried out by placing the package inside a bell. The molecules leaked from the package (such as CO2 in the case of MAP products) or loss of pressure are indications of the presence of a micro-hole.

The main limitation of these methods is, first and foremost, that of being destructive, since it is no longer possible to reuse the tested package. Over and above this is the fact that they are, of course, merely spot checks—and therefore not comprehensive in their analysis.

Spot-checking does not check the integrity of the entire production, which means that defects are not detected on a regular basis. Moreover, this method is costly in terms of re-processing batches should a micro-hole be detected in the batch being tested.

Modern Applications for Testing In-Line Micro-Holes

The need for in-line identification of micro-holes on 100% of production is pressing, and research for possible solutions has been focused on this need in recent years. Technology is needed that must be:

  • Rapid, in order to be applied to the line’s speed;
  • Reliable in detecting micro-holes;
  • With few false rejects, even at high speed;
  • Characterized by low maintenance costs;
  • Easily manageable for format changes, which are becoming increasingly frequent in production.

This has all been made possible by means of application of IR spectroscopy, or the use of gas sensors for in-line inspection of the presence of holes and micro-holes. These non-destructive technologies make it possible to detect in-line leakages in packaging, package by package, by identifying target escaping molecules.

The air around the package is extracted and taken to an analysis chamber containing an IR beam or gas sensor that can detect the presence of target molecules—and therefore micro-holes. This way, it is possible to automatically inspect every single package, avoiding problems of returns and consumer dissatisfaction caused by poor preservation.

IR Spectroscopy and Gas Sensors

The technologies that enable in-line inspection are based on nondispersive infrared technology, which offer rapid response times and reliable measured values. In the case of very small leakages, measurements with very low concentration differences or measurements by means of containers, the technology is based on the principle of laser spectroscopy.

A monochromatic radiation beam emitted by a laser interacts with the gas molecules being measured. The radiation wavelength coincides with one of the absorption lines of the molecule. Measuring the intensity and absorption profile of the radiation with a photodetector makes it possible to detect the presence of a gas, and determine the concentration of the molecule being measured.

For certain gases, the high sensitivity of measurement can be obtained by using a modulation technique of the absorption measurement known as wavelength modulation spectroscopy (WMS). It involves transmitting sinusoidal modulation to the wavelength variation of the laser radiation, then creating a beat between the signal detected from the photodetector and the modulation frequency.

The distinct advantage of WMS is that it eliminates constant contributions to the absorption, such as that of the container, thereby making it possible to significantly increase the sensitivity of the measurement. The realization of gas sensors for application in the pharmaceutical, bottling and food sectors originated at Italy’s University of Padua, where lasers have been employed to create laboratory prototypes for determining the concentration of gas pressure using absorption spectroscopy techniques.

Industrial application of these technologies has brought IR and laser spectroscopy technology to the market and into production lines, improving the way in which quality control is performed on packaged products. The non-destructive measurement techniques, based on absorption spectroscopy, are today finding new areas of use—not only to monitor package leakages, but also to monitor the internal gases and check their evolution during product shelf life.

Case History: An In-line Control of Micro-holes in the Food Industry

Let’s explore an example of micro-hole inspection via IR spectroscopy and gas sensors, and how certain challenges might be overcome.

For one company, micro-hole inspection technology was initially working by detecting molecules leaking from packages being transferred on conveyor belts. However, during the technology transfer stage, it became evident that the pressure difference between inside and outside of the container was not enough to determine the presence of micro-holes at the line’s speed without touching the package.

To combat this, a system of rollers was implemented to apply the correct pressure to force leakage of target molecules, indicating the presence of micro-holes, without damaging the packaging or the product. The rollers are designed to stress the container and the seals to encourage gas to be released in the event of a leak.

The inspection is applicable on trays as well as bags or flowpacks. Packages are inspected at 360°, both on top and at the bottom (including any longitudinal seals) by inserting air extractors also on the sides and under the package, creating a special opening in the conveyor belts.

The target molecules that can be detected with these technologies are numerous, and vary according to the type of preservation mixture. For example, it is possible to detect CO2 as a target molecule for all MAP-preserved products, or alcohol in the case of bakery products, or specific product aromas for products packaged in air or nitrogen.

Practical applications
Examples of practical applications. Figure courtesy of FT System.

Conclusion

The in-line inspection for micro-holes in packaging through the application of IR spectroscopy, or by means of gas sensors, makes it possible to go from spot checks to in-line inspections on 100% of production. The solution can be applied on trays and bags and does not require the internal gas mixture or the line speed to be changed. It can be easily integrated in existing lines and inspection is reliable, precise and repeatable.

This quality control technology has game-changing potential for products preserved in MAP, alcohol or nitrogen, since it makes it possible to check for micro-holes in the packaging and the integrity of the seal on each individual product. From practical experience in the production line, it is evident that all micro-holes are not detected by spot checks.

In addition, a return or recall, for example for the presence of mold in fresh pasta or in cheese due to a micro-hole, causes significant economic and image damage for the company. Implementing this modern application of IR spectroscopy in the line thereby makes it possible to prevent and intervene in real time on the production process to guarantee the integrity of the package and avoid problems related to safety, quality and preservation.

Waylon Sharp, Bureau Veritas
FST Soapbox

You Are What You Eat: Meeting the Demand For Sustainable Practices and Transparency

By Waylon Sharp
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Waylon Sharp, Bureau Veritas

A very volatile sector, there are always new trends, opportunities and challenges in the food space, as a multitude of factors—including global climate and geopolitical challenges—can cause supply chain disruptions. Sustainable audits are heightening in demand, in order to validate company claims and provide consumers with peace of mind, as the industry continues to evolve with new ingredients, processes and technologies in play.

Consumers Today Demand Sustainable Practices and Transparency

The shift towards sustainability has further been accelerated by COVID-19, as the pandemic has made for more ethical and conscious consumers. According to research from Forrester, 68% of highly empowered consumers plan to ramp up their efforts to identify brands that reduce environmental impact. While there are numerous audits to measure sustainability and social responsibility, trending focus areas in the food space today are around sustainable packaging, water usage and food waste.

Three Ways Food Processors and Manufacturers Can Reduce Their Footprint

Key players across the food industry are stepping up to the challenge and finding innovative ways to minimize their environmental impact. The following are three ways food processors and manufacturers can reduce their footprint.

  • Use Environmentally Friendly Packaging: Food packaging is a major source of waste and pollution. In fact, containers and packaging make up a major portion of municipal solid waste (MSW), amounting to 82.2 million tons of generation in 2018, according to the EPA. Unfortunately, most packaging is designed as single-use, and is typically thrown away rather than reused or recycled. Given the impacts of packaging on the environment, more manufacturers are looking into packaging options that reduce waste and boost sustainability, including wood- and paper-based alternatives. Other manufacturers are developing innovative alternative packaging from biodegradable materials. The same rings true for takeout and grocery delivery, as the demand for home consumption grows, retail and foodservice companies are considering utilizing more sustainable packaging or reduce the use of virgin plastics to offset their impact.
  • Increase Energy and Water Efficiency: Food processing and manufacturing are energy- and water-intensive. In fact, according to the World Resources Institute, the 1.3 billion tons of wasted food annually also includes 45 trillion gallons of water. Water conservation methods can be implemented throughout the entire food chain—from selecting more efficient crops, to using less water within processing facilities and ultimately reducing food waste on the backend of the chain.
  • Reduce Food Waste: According to the Food and Agriculture Organization of the United Nations (FAO), nearly one-third of food produced for human consumption gets wasted each year. In fact, the carbon footprint of food waste is greater than that of the airline industry. This also includes the waste of resources used to produce the food including water, soil, transportation and labor. By improving processing and manufacturing efficiencies, we can reduce waste and better manage resources. Implementing systems to categorize and assess food waste can help identify areas for improvement and enable your team to develop a plan to correct.

Value-Add of Sustainability

Sustainability provides benefits to the consumer, the manufacturer and society-at-large. The consumer feels better about making a purchase that is not only better for the planet, but that may also provide health benefits to themselves and their families. The Organic Trade Association’s 2021 U.S. Organic Industry Survey highlights this trend, as organic food has the reputation of being better for your health and more sustainable for the planet. Organic food sales were up 12% in 2020, the highest growth rate in this category in over a decade.

Intrinsically, manufacturers with sustainable programs in place feel better about the work they are doing, knowing that they are supporting a better world. Companies that publicize their green programs and back them up with the applicable certifications can also attract top employees, despite today’s talent wars. Employees are zeroed in on corporate social responsibility and desire to work for a company that aligns with their purpose.

As it relates to the bottom line, the common misconception is that the sustainable choice will cost more. However, as sustainable supply increases due to consumer demand, companies are able to source sustainable inputs more affordably. Furthermore, they can communicate their commitments via certification bodies, through public forums and by labeling products based on their certifications. These approaches help reach and educate consumers at different levels—from their initial research of products to purchases from the store shelves.

Key Certifications and Auditing Technology

To reduce their environmental footprint throughout the value chain and implement more sustainable business practices, food companies can move toward a circular economy business model. By renewing, reusing and recycling materials at every stage of the food supply chain, companies can preserve the critical resources that allow their business to flourish.

There are a wide range of services help food producers make the transition to a more sustainable business model. This includes the GHG emissions verification, and management system auditing and certification or training to standards like ISO 14001 (Environmental Management System), ISO 24526 (Water Efficiency Management System), AWS (Alliance for Water Stewardship), ISO 50001 (Energy Management System) and SA8000 (Social Accountability standard), as well as SMETA (Sedex Members Ethical Trade Audit) audits. There are also a range of food sustainability-related product certifications including Organic, MSC, ASC and RSPO.

Auditing technology supports a range of requirements and helps teams set achievable targets. It can be used to analyze packaging materials, categorize and assess food waste, and monitor water usage. Newer auditing technology is now blockchain enabled to assess raw materials and packaging, and to ensure third party partners are also socially responsible. This information is packaged into a blockchain solution so that food companies can be confident that the auditing information is correct and secure. Furthermore, this technology provides the added visibility into their network should they have a recall.

How To Initiate or Ramp Up Your Sustainable Programs

For companies interested in kicking off a sustainability program, or branching into new levels of sustainability, a great place to start is training, in order to understand the audit standard. Early on in this process, ensure all parties are onboard and aware of the certification process and related costs—from managers who will be implementing the program daily to board level executives providing the final sign off. Doing this helps allocate sufficient time and resources and avoids surprises down the road.

It’s helpful to work with a third-party consultant through this process, as they are able take a birds-eye-view look to identify gaps in the program and help you achieve specific certification requirements that meet your unique food product needs. If your team works with a consultant to put together a plan that includes auditing, testing, inspection and certification, the right partner can verify that the program meets all the requirements necessary for the certification.

To keep your program running efficiently, arrange regular trainings for employees to stay up to date on the latest requirements and fill any gaps. For more specialized programs, it’s also a good idea to set aside standalone training sessions to avoid information overload.

As the industry continues to innovate, there will be more ways to reduce waste throughout the entire supply chain and build more efficient business models that are better for the company, consumers and the planet. Looking ahead to next year and beyond, the trend towards sustainability and transparency will press on. Ultimately, companies that take the extra steps to be more sustainable are setting a higher standard for industry and supply chain partners and building a pathway for long-term success.

Emily Newton, Revolutionized Magazine
FST Soapbox

How Are Food and Beverage Professionals Putting Packaging Safety First?

By Emily Newton
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Emily Newton, Revolutionized Magazine

As the food and beverage industry manages the continual impacts of the COVID-19 pandemic, safety remains a major topic of discussion. While many are aware of how handling practices can impact safety, less attention is sometimes paid to how packaging and materials can also play a significant role.

Good packaging practices and innovative technology—like antimicrobial surface coatings and plastic alternatives—are helping to make food and beverage products safer for consumers.

The Role of Packaging in Food Safety

The packaging process can have a significant impact on the safety of food products. Hygiene and other practices present significant cross-contamination risks. Packaging material choice can also affect safety.

While outbreaks of foodborne disease are somewhat rarer than they were 20 years ago, they remain a serious threat to consumers. In 2018, there were 1,052 foodborne outbreaks in the United States, an increase from the previous year and only a slight decrease from the 1,317 outbreaks in 1998, according to data from the CDC’s National Outbreak Reporting System (NORS) dashboard.

Food and beverage manufacturers are investigating innovative practices and materials to help make their products safer. In response to the pandemic, in December DS Smith announced a partnership with Touchguard to develop antimicrobial coatings for cardboard packaging. One coating created by the two companies has a “proven kill rate of 99.5% in under 15 minutes on bacteria types … and eliminates the risk of person-to-person transfer of infections, such as MRSA and E. coli.”

The cardboard is just one of several examples of antimicrobial materials that may help limit the spread of viruses that cause foodborne diseases, like E. coli.

Other businesses are aiming to tackle spoilage during shipping and storage. Innovative experiments could have a major impact on food waste. EU-funded project RefuCoat intends to “develop fully recyclable food packaging with enhanced gas barrier properties.” These materials will keep foods sealed from air and water while also offering recyclability.

New design strategies and technologies can also preserve the freshness of food once customers bring items home from the grocery store.

Portion packaging allows customers to open only the amount they need, leaving the rest sealed for future use. This helps customers avoid relying on home storage strategies, which may not be as effective as factory packaging in keeping food fresh and preventing spoilage.

These strategies also can support existing food safe packaging techniques. For example, portion control can be combined with tamper-evident packaging to make it more obvious when an item at the store has been accidentally opened. This will help ensure that customers only bring home and use food items that they know are safe and as fresh as possible.

Choice of mold release agents used in manufacturing processes that require packaging molds can also have a significant impact on food safety. These chemical compounds help resins and other materials detach from molds once cured, without being damaged. This helps to ensure that the finished product is as close to the mold shape as possible, and isn’t compromised when released from the mold. Certain kinds, like silicon, can produce cleaner finished products and extend the lifespan of packaging, which reduces waste and potentially improves package safety.

These strategies can help protect food from contamination during the packaging process and ensure it remains fresh and safe for as long as possible after leaving the facility.

As customers experiment with new brands and foods, businesses may find they are more willing to try items that use novel packaging strategies.

Safety Risk and Potential in Food Packaging Materials

Like food items themselves, all packaging materials are subject to approval by regulatory agencies, like the FDA or the European Food Safety Authority. However, some substances approved by the FDA can still have health impacts.

For example, bisphenol A (BPA), a chemical used to make certain industrial plastics and resins, is not banned by the FDA. However, its use has become controversial in the food packaging industry due to potential reported adverse health effects.

Some major manufacturing companies, like Campbell Soup Company, have fully transitioned away from the use of BPA. Others, like the Coca-Cola Co., continue to use the chemical in linings for aluminum cans.

One paper, The FoodPrint of Food Packaging, details how materials used may present health risks—and how alternatives already in use can help the industry create safer packaging.

For example, styrofoam use is declining due to the material’s environmental impact. However, polystyrene is still frequently used in rigid and foam food packaging. Plastic particles made from materials like polystyrene may harm health.

The report also lays out steps that food and beverage manufacturers can take to reduce the use of potentially unsafe chemicals in their packaging. Reusable containers can significantly reduce the amount of plastic waste generated by the food industry while also lowering the health risks packaging presents.

In an article for Packaging Digest, senior editor Rick Lingle briefly summarized the report’s findings and discussed them with Jershua Klemperer, director of FoodPrint. When asked about alternatives to plastics, Klemperer suggested using sustainable packaging materials—like metal, cardboard and fiber—but only if manufacturers can ensure they are not used in combination with unsustainable or potentially harmful materials like PFAS.

Strategies for Improving Food Safe Packaging

Food safety will remain a top priority for the food and beverage industry. Innovative strategies like antimicrobial coatings, portion packaging and plastic alternatives can help manufacturers make safer options. These strategies may become more common over the next few years as consumers become increasingly invested in food safety practices.

Stephen Dombroski, QAD
FST Soapbox

Regulatory Issues and Transportation: Critical Factors in the Quest for Sustainability in Food Manufacturing

By Stephen Dombroski
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Stephen Dombroski, QAD

Over the last several months, we have been exploring the details of several critical factors that are impacting the food and beverage manufacturing sector in terms of sustainability, including:

Two additional factors that food manufacturers now have to manage regarding sustainable practices are transportation and regulatory restrictions. Each can be discussed as a separate topic, but they are intertwined, as there have always been regulations regarding food transportation, and obviously food has always needed to be transported. Now that sustainability is an important topic in all areas of food manufacturing, it makes sense to discuss these two subjects both individually and collectively.

Transportation and Regulatory Joint Concerns

Ensuring that all areas of food transportation incorporate sustainable practices is a critical component of achieving sustainability in food manufacturing. To this point, however, these types of practices have not fully been implemented or even designed. This area is still evolving. From a straight transportation point of view, governments globally have been imposing restrictions for decades. These restrictions vary from country to country, province to province, region to region, and so on, and this causes confusion when inter- or intra-region transportation of food is required. There are also several regulatory differences based on mode of transportation. Land, air and sea transportation can and should have different regulations.

Another ingredient that should be added to this product mix of sustainability, transportation and regulations is food safety and the integrity of the food materials being transported whether it is ingredients, work-in-process foods or finished products. Various modes of transportation can affect the chemical composition, physical appearance, nutritional value and quality and safety of food. It could be straightforward to start implementing restrictions, regulations and new methods of how to package, manufacture and transport food to satisfy the growing trend of sustainable food behaviors. However, what cannot get lost in this is the issue of food safety and integrity.

Sustainability More than Recycling and Litter

When discussing regulations around transportation and food, many people immediately think of littering, of some uncaring individual throwing a soda pop can out of a car window. Littering regulations, laws, fines, penalties and public service campaigns have been in place globally for more than 50 years. The next time you go outside, take a look around at how effective those have been. Sustainability goes far beyond the issue of litter. One area that works hand in hand with transportation of food is climate change. Governments have been evaluating the current practices and have begun implementing changes designed to positively affect climate change. Some examples include:

  • 23 American states and Washington, D.C. limit idling by some or all vehicles.
  • The California Air Resources Board adopted the TRU Airborne Toxic Control Measure in 2004 to reduce diesel particulate matter pollutant emissions.
  • In 2020, the International Maritime Organization will implement a new regulation for a 0.50% global sulfur cap for marine fuels.

The food and beverage industry is actively embracing other changes that affect sustainability. Electric trucks fit well with the F&B distribution hub model, with clean, quiet, short-run deliveries. Fuel usage during transportation is being considered from every angle. Local and regional food systems, where farmers and processors sell and distribute their food to consumers within a given area, use less fossil fuel for transportation because the distance from farm to consumer is shorter. This shorter distance also can help to reduce CO2 emissions.

Change Starts with Money

During many conversations I have had with my wife about a variety of subjects, especially those that can be considered controversial, one of us always raises the same question which is: “When in doubt, what is it all about?” And most of the time, the answer is money. Regulations around sustainability in food manufacturing are being driven by demands made by the consumer. The purchasers of the finished food product dictate almost every aspect of that product to the manufacturer because, let’s face it, if the consumer doesn’t like it, they won’t buy it. And if they don’t buy it, what will eventually happen to the manufacturer? That’s right—it goes out of business.

Now there is a good definition of sustainability or at least of what is not sustainable. From the transportation side of things, manufacturers in almost all cases pay the freight of shipping their food products to the members of the value chain. This obviously affects the costs of goods sold, which is a direct component of the bottom line and the profitability of the business. And with margins typically low in food and beverage manufacturing, transportation costs are always on the minds of the executives. So as the drive for sustainable transportation practices rolls into food manufacturing, you can bet that in addition to meeting sustainable practices, they will fit into the financial plans of the organization as well.

Sustainability: Just Another Component in a Long Line of Disruptors in Food Manufacturing

Years ago, when the topic of disruption in food manufacturing came up, many would mention things like a customer changing an order, an ingredient not arriving on time, or a packaging line going down for an hour. Today, these occurrences are just part of the day-to-day process and reality of food manufacturing. They are going to happen, and disruptions are the things that will make a food manufacturer have to change their business model and force them to change their philosophy and begin to evaluate their business practices and systems to adjust to the world in which they operate.

Sustainability is another one of those disruptions that will impact the process of food transportation long term. Sustainability will be an area that eventually forces manufacturers to operate within new regulatory parameters imposed on how they produce and ship their food. Through these changes, manufacturers will have to ensure that food meets the current and future safety regulations while maintaining profitability. That is where real sustainability will be measured. Changes to business, movements like sustainability are adding to the disruption of the food industry at unprecedented rates of speed. In order to survive and thrive, and to meet these disruptions head on and be sustainable themselves, global food manufacturers must be able to innovate and adapt their business models.

Stephen Dombroski, QAD
FST Soapbox

The Drive to Sustainable Food Manufacturing Begins with Three Critical Factors

By Stephen Dombroski
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Stephen Dombroski, QAD

Sustainability, without question, is one of the hottest social and political topics today. It is as complex as it is simple. Sustainability gets discussed in almost every walk of life, but in the world of food manufacturing, there are few subjects more debated than this one. It is a contentious subject because in the manufacturing arena, it is not just a social or political issue, it is a financial issue—a big financial issue. Sustainability and related issues around it are critical factors and components that are now impacting the bottom lines of food manufacturers. The impact is seen in terms of both red and black.

In a low-margin business like food manufacturing, profits are at a premium and even a minor disruption can negatively impact those profits. Adapting to all the issues that are involved in and around sustainability is, without question, a disruption for manufacturers. At the same time, manufacturers can make positive impacts through smart operational decision-making, which is where sustainability has the greatest presence. When sustainability is discussed in regards to food and beverage manufacturing, a number of topics surface. Some topics are discussed individually and some are grouped together. Consumer preferences, new foods, and packaging are three such areas. At first glance, you might ask why they are lumped together. They are lumped together because they are actually very closely related. Let’s explore those connections especially as they relate to finances.

Consumer Preferences: Paving the Sustainable Path

Consumer preferences have always been one of the leading factors determining what food and beverage manufacturers produce and send to market. For generations, countless amounts of time and money have been spent on trying to predict what consumers want and when they want it. A tremendous amount of data is painstakingly analyzed by manufacturers trying to figure out the consumer’s next move.

According to a 2018 Global Web Index survey, half of digital consumers say environmental concerns influence their purchasing decisions. Millennials—sometimes named the Green Generation—and Generation Z lead the way. About 61% of millennials and 58% of Gen Z’ers say they would pay more for eco-friendly products. Green consumers want brands to embrace purpose and sustainability, and they want their purchases to contribute to the greater good, or at least, do no harm.

These preferences started among millennials and Gen Z’ers, but with the influence of social media, they have expanded to all age groups. This expansion has contributed greatly to a change in what consumers purchase and to what manufacturers produce. In recent years, consumers have changed their eating habits in terms of what they eat, how they eat and when they eat, and those changes have impacted both food service and retail food producers. They have largely centered on healthier foods, pure ingredients and products that promote an eco-friendly culture and a sustainable world. The changes have been felt up and down manufacturing organizations, but most importantly they are reflected in the bottom line.

The industry has been forced to introduce healthier products, with more ethically sourced ingredients and more transparent supply chains. Younger consumers, especially, often trace a brand’s sustainability record with QR codes or smart labels. They want to know where their food originates. They don’t just want to know in which state the potato used in their organic baked potato crisp was grown. They want to know the county, town, farm, field and names of the people who picked it so they can connect with them on Facebook to determine if they practice safe hygiene principles! If a product doesn’t fit the consumers’ predetermined sustainable criteria, they buy a product from another manufacturer. Talk about an impact to profits. The consumer focus on sustainability has increased competition and costs, forced organizational changes and made food manufacturers figure out what processes and systems need to be in place to ensure their decisions keep consumers happy and their profits on the right side of the ledger. These consumer actions and attitudes are now influencing the development of new food items as manufacturers realize consumers are not just taking notice but taking actions as well.

New Foods: Where’s the Beef? Not Here!

As consumers change their food preferences for health and sustainability reasons, food and beverage producers have the opportunity, responsibility and if they want to survive, the mandate to develop new food products built on a reputation for sustainability. Brands have been working on protein alternatives for some time, but not until Burger King and McDonald’s introduced plant-based burgers did plant-based protein go “viral” so to speak. Talk about “Where’s the beef?” In addition to meeting the needs of the drive for sustainable foods, food manufacturers are developing plant-based proteins and many new foods to support the healthier lifestyle movement. As consumers embrace Keto diets, veganism, vegetarianism and other new eating and living practices, tofu, soybeans, seeds, nuts, legumes and other vegetable-based products are now being routinely used as replacements for protein, carbohydrate-heavy flours and food foundation bases.

Ten years ago, if I said in 2021 we would be eating pizza with a crust made of cauliflower, what would the public reaction have been? People in Chicago would have thrown away their deep-dish pans. Food manufacturers now introduce new products on a weekly basis and it is having a tremendous impact on sales and bottom lines. These rapid introductions also impact other key areas of the organization including supply chain, product development cycle and manufacturing cost infrastructure.

Substituting vegetables for carbohydrate-rich grains, of course, costs money. It can increase material costs, manufacturing costs, warehousing costs and distribution costs, which combine to raise retail prices. Luckily, as we have illustrated, consumers are willing to pay more for products that they perceive as having a sustainable footprint. Utilizing products differently to respond to the push for sustainability is a smart tactic that can expand the value chain, open up new markets and drive sales for food and beverage manufacturers.

Packaging Sells Products and Sustainability

Sustainable packaging can mean many things. It can mean packaging made with 100% recycled or raw materials, packaging with a minimized carbon footprint due to a streamlined production process or supply chain, or packaging that is recycled or reused. There is also biodegradable packaging like containers made from cornstarch being used for takeout meals.

For generations, packaging has had a tremendous influence on what consumers buy. Human beings are visual creatures. They are drawn to things that have visual and physical characteristics that appeal to the senses. How many products in the marketplace are known for a certain shape or color configuration? Many times, these shapes or colors can only be created using certain glass, plastic or other materials that might not meet the sustainable criteria. This has caused problems for manufacturers as consumers still want those products but are conflicted if their sustainable beliefs are compromised. Adapting new eco-friendly materials while retaining generations of packaging history and nostalgia can increase costs. But, to keep their customers, manufacturers make these changes, absorb the extra costs and try to make up for lost profits in other ways.

Packaging, especially smart packaging, can also help fight the battle against food waste. Packaging companies are creating and producing intelligent packaging for food products that have built-in sensors and monitors to determine when a product will lose its nutritional value or spoil. Smart labels are being used in conjunction with new packaging materials to monitor external factors that can influence product freshness. Packaging can be a driving force to reaching the goal of sustainability.

Adapting to changing consumer preferences, demand for new foods and new packaging materials and designs is critical for manufacturers trying to reach sustainable goals. Consumer preferences drive what manufacturers produce. Consumer preferences drive the development of new foods that consumers think they need in order to live a healthier lifestyle. Packaging is the wrapper that keeps the new foods fresh and catches the consumer’s eye, which in turn drives sales and thus drives profits. These three critical areas can be the foundation of the sustainable movement and manufacturing’s response to it. Food producers must embrace the sustainable movement if they want to stay in business. To meet this challenge, manufacturers of packaging and food need to evaluate their processes and systems and implement the ones that can help them cost-effectively transition to becoming sustainable manufacturers.

Stephen Dombroski, QAD
FST Soapbox

8 Reasons Sustainability is Critical in Food and Beverage Manufacturing

By Stephen Dombroski
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Stephen Dombroski, QAD

Sustainability pushes a lot of our hot buttons—it’s a political issue, an economic concern, and a social conversation. Some people even see it as a moral matter. Sometimes it’s on the back burner, but then it blazes back into the headlines. Sustainability is, arguably, an industry unto itself, since the economic impact on companies trying to adhere to government guidelines or react to consumer preferences can be in the billions of dollars across a wide range of markets. Sustainability demands are hitting a variety of industries, not just food and beverage. For example, the move from the internal combustion engine to the electric vehicle can be called a “sustainability” issue.

Exclusive Series on Food Safety Tech:
The Eight Elements of Sustainability
1. Consumer preferences
2. Climate change
3. Food insecurity
4. Food waste
5. New foods
6. Packaging
7. Regenerative agriculture
8. Transportation and regulatory restrictionsIn light of the many disruptors in the food and beverage industry and most recently, due to the impact of the COVID-19 pandemic, sustainability is now front-page news. This article will discuss eight reasons why sustainability is now one of the defining issues in food and beverage manufacturing. Future articles in this series will examine each issue in more detail.

Consumer Preferences

The green consumer wants brands to embrace purpose and sustainability, and they want their purchases to contribute to the greater good, or at least, do no harm. The demand started among millennials and Gen Zers, but with the influence of social media, it’s expanded to all demographics.

The industry has been forced to introduce healthier products, with more ethically-sourced ingredients and more transparent supply chains. Younger consumers, especially, often trace a brand’s sustainability record with QR codes or smart labels. They want to know from where their food originates.

These consumer actions and attitudes are now influencing the development of new food items and packaging designs as manufacturers realize consumers are taking notice.

Climate Change

Warming is causing the earth’s poles, permafrost and glaciers to melt and the oceans to rise. Average sea levels have swelled more than eight inches since 1880, with about three of those inches gained in the last 25 years. Here’s the impact on sustainability—when sea levels rise and warm, flooding can occur, causing coastal seawater contamination and erosion of valuable farmland. Higher air temperatures may also rule out the cultivation of some valuable crops (gasp, chocolate!).

Hotter temperatures can also cause insect body temperatures to rise; they need to eat more to survive and may live through the winter instead of dying off. A larger, more active insect population could threaten crops. And changes to water, soil and temperature could affect the complex ecosystems of the world’s farms, causing plant stress and increasing susceptibility to disease. The food manufacturing and farming industries are starting to investigate new ways of growing food in environments that can protect crops from these changes.

Food Insecurity

Food demand is expected to increase anywhere from 59% to 98% by 2050. Populations are growing and due to rising incomes, demand is ramping up for meat and other high-grade proteins. At the same time, climate change is putting pressure on natural and human resources, making it challenging to produce enough food to meet the world’s needs.

The world agrees that governments, manufacturers and consumers have a social responsibility for to do their part to combat world hunger. Consumers are becoming more aware of food security and the threat that climate change poses. People are attempting to eat sustainably with meals designed to have a lower environmental impact, and incorporating an awareness of plate portions and food waste.

World health organizations are also stepping up. The United Nations World Food Programme (WFP) is the food-assistance branch of the United Nations and the world’s largest humanitarian organization, addressing hunger and promoting food security. The WFP works to help lift people out of hunger who cannot produce or obtain enough food for themselves, providing food assistance to an average of 91.4 million people in 83 countries each year. Food brands worldwide are offering support through donation programs, new product development to provide more nutrition with less and new sources of food.

Food Waste

Around one-third of the total food the world produces—around 1.3 billion tons—is wasted. It’s more than just the direct loss; food waste contributes heavily to climate change, making up around eight percent of total global greenhouse gas emissions. Food manufacturers are making significant efforts to reduce their food waste footprint. Is it possible to anticipate and plan for potential glitches in frozen food processing? Sustainable brands make contingency plans in advance so that food can be stored safely while a broken line is fixed, rather than let it go to waste. What should be done with raw materials left over after processing? Perhaps there are other creative uses for it—vegetable waste, for example, has been used for fertilizer.

Human behavior is a main contributor to climate change and the motivator for new sustainable practices. Over time, community attitudes can change habits, like encouraging commitments to composting or recycling. In certain communities, grocery stores and restaurants contribute leftover food to charities. Portion control at restaurants and in the home can make us healthier and also help to reduce food waste.

New Foods

In response to changing food preferences and the demand by consumers for healthier options, food and beverage companies have the opportunity to develop new foods and build a reputation for sustainability.

Brands have been working on protein alternatives, but one can argue that plant-based protein went mainstream when news broke in 2019 that both McDonald’s and Burger King were testing plant-based burgers. And with veganism and vegetarianism growing, tofu, seeds, nuts and beans are also showing up in kitchens more frequently, as are products made from them.

Did it surprise you the first time you heard about cauliflower pizza crust? Food manufacturers have been actively introducing new products like this, substituting vegetables for carbohydrate-rich grains. Product manufacturers have brought us new product options like zoodles made from squash as a substitute for spaghetti. Utilizing products differently is a sustainable tactic. In addition, it opens up new markets, expands the value chain and increases business opportunities for food and beverage manufacturers.

Packaging

Sustainability also involves sustainable or “eco-friendly” packaging. Packaging with a reduced environmental impact is becoming a consumer priority.

What is sustainable packaging? It can mean packaging made with 100% recycled or raw materials, packaging with a minimized carbon footprint due to a streamlined production process or supply chain, or packaging that is recycled or reused. There is also biodegradable packaging like containers made from cornstarch being used for takeout meals.

To help fight food waste, intelligent packaging for food can use indicators or sensors to monitor factors outside the packaging like temperature and humidity, or internal factors like freshness. Smart labels can tell an even more complete story about what sustainable practices have been used in packaging manufacturing or along the supply chain via a QR code or webpage.

Optimizing product density for transport is another sustainability technique. Minimizing packaging can reduce shipping weight and packaging waste to minimize an organization’s carbon footprint. An added benefit is that manufacturers can deliver more in less time thus improving customer service and keeping the supply chain moving.

Regenerative Agriculture

Sustainability may call for practices that maintain soil health, but regenerative agriculture goes further; it looks to reverse climate change. Regenerative techniques promote the need to restore soil health, rebalance water and carbon cycles, create new topsoil and grow food in a regenerative way—so nature has the boost it needs to sustain improvement. If the quantity of carbon in farm soils increases 0.4% each year, says the European “4 Per 1000” initiative, it could offset the 4.3 billion tons of CO2 emissions that humans pump into the atmosphere annually.

The regenerative food system market has drawn investors, wedding the benefits to both water and soil to economic incentives. Unhealthy soil requires more water to produce the same amount of food. Healthy soil resulting from regenerative agricultural practices holds more water and therefore requires less water to be added. Underground and hydroponic versions of regenerative agriculture are also emerging.

Transportation and Regulatory Restrictions

Sustainability is also dependent on transportation and the supply chain. Governments are evaluating current practices and implementing changes that can positively affect climate change.

The food and beverage industry is actively embracing other changes that affect sustainability. Electric trucks fit well with their distribution hub model, with clean, quiet, short run deliveries. Fuel usage during transportation is being considered from every angle. Local and regional food systems, where farmers and processors sell and distribute their food to consumers within a given area, use less fossil fuel for transportation because the distance from farm to consumer is shorter, and therefore reduce CO2 emissions.

These eight areas are the defining issues facing food and beverage manufacturers today in sustainability. Sustainability impacts all of us, everywhere, and food and beverage manufacturing is right in the middle of it. What this means to the manufacturing world is that they must prepare their processes, systems, infrastructure and mindset to evolve their business in tune to the evolving issue of sustainability.

Susanne Kuehne, Decernis
Food Fraud Quick Bites

Wine that Wins No Awards

By Susanne Kuehne
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Susanne Kuehne, Decernis
Wine label, food fraud
Find records of fraud such as those discussed in this column and more in the Food Fraud Database. Image credit: Susanne Kuehne

Italy’s Guardia di Finanz (GDF) had a case of wine fraud essentially fall into their lap when a crate of fake prestigious Tuscan wine was found at the side of a road. Scammers repackaged and mislabeled cheap wine that would have fetched almost half a million dollars in revenue. The fraud was carried out with a high level of sophistication, including identical labels, bottle caps, bottle wrappers and wooden crates, and the wine was already reserved by customers in several countries.

Resource

  1. Taylor, P. (October 16, 2020). “Italian police bust fake Tuscan wine ring, seizing 4,200 bottles”. Securing Industry.
Are Traasdahl, Crisp
FST Soapbox

Creating a Disruption Database in Response to COVID-19

By Are Traasdahl
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Are Traasdahl, Crisp

The spread and impact of the COVID-19 pandemic has been fast and furious across the globe.1 The toll on human life and the economy is being felt by everyone, everywhere. Closures of schools and restaurants, restrictions on social gatherings, the shift to working from home, and other social distancing practices have created sudden, unusually high demand spikes across a number of categories, particularly related to food.

COVID-19 in the Food Industry: Mitigating and Preparing for Supply Chain Disruptions | Attend  this complimentary webinar on-demandRepercussions from these dramatic demand surges are being felt across entire supply chains. Growers, producers, processors, manufacturers, wholesalers, and retailers of all sizes are scrambling to fill immediate shortages.2,3 At the same time, foodservice operators are reassessing their needs in response to government mandated take-out/delivery-only service. Schools are consolidating preparation and pick-up points for breakfast and lunch programs, while on-campus foodservice venues have closed at colleges and universities. Food companies are scrambling to redeploy and redirect existing inventories, as well as forecast short and mid-term demand and production requirements in the face of an unprecedented situation.

In the first several days of disruption, the immediate response is all-hands-on-deck damage control. Rightfully so. But in the flurry of activity, it is critical that those responsible for demand forecasting document the disruption as it is happening. Why? Because sales history is the foundational input of sales forecasting algorithms. Outlier events, such as COVID-19, natural disasters, extreme weather, short-term international trade restrictions, etc., have the potential to distort demand trends if they aren’t recognized and weighted appropriately in forward-looking projections. Formally documenting extraordinary events allows organizations to:

  1. Explain unusual variances to history and/or forecast
  2. Create evergreen institutional knowledge (vs. relying on individuals, scattered notes, and memory)
  3. Build a “disruption database” that can be used to make fact-based overrides to algorithm-generated statistical forecasts when a similar disruption is predicted or occurs in the future.

These “disruption databases” could ultimately serve as the foundation for even more sophisticated disruption forecasting models. As machine learning and artificial intelligence continue to evolve, these models could potentially be customized based on the type of event. Importantly, this annotation of events needs to occur within your forecasting platform so that it is permanent and visible to inform insights for all forecast users.

So, what information should you capture?

  1. Timing of the event
    • This includes specific days or weeks as well as information across the event lifecycle, including pre, during, and post event completion.
  2. Geography impacted
    • The scale of the event should also be noted. Some events are market-specific (i.e., the 2020 Nashville tornado), while others are state or region-specific (i.e. California wildfires, Hurricane Katrina) or result in national or global level impacts (COVID-19).
    • The ship-to locations of your customers relative to the disruption will influence the demand impact of the event.
  3. Customer gains & losses
    • During shortages, changes to current customer strategies should also be accounted for, such as potential volume reallocations. This could mean realignment of current customer distribution centers, temporarily not shipping to or losing specific customers, and/or even securing new customers based on your ability to supply when competitors cannot.
    • Customers may also shut down temporarily and/or delay previously scheduled new store openings. They may also reduce their hours of service and/or increase frequency of deliveries.4
  4. Channel shifts
    • The use of different channels in response to the event should also be captured. For example, in response to COVID-19, grocery retailers are seeing a significant increase in home delivery and click-and-collect orders.
    • Collaborate with your customers to quantify this shift. It may explain your volume trends (if your products are or aren’t typically purchased online) and/or suggest alternative product forms, packaging, etc. to meet both immediate needs and longer-term demand.
  5. Products impacted
    • This includes both items with demand spikes as well as those realizing unexpected demand declines. Shifts may also occur between product forms. For example, some consumer concern about bulk produce has been expressed with COVID-19 since the produce is manually stocked and shopped.5 While efforts are underway to dispel this misconception, it has impacted short-term demand for both the bulk items and their pre-packed counterparts.6,7
    • Adjacent, complementary and/or substitutable items should also be considered.8 Focusing short-term production on core varieties, cuts, forms, etc. vs. a complete assortment may allow a faster return to category (if not item-specific) in-stock levels.
  6. Ordered vs. filled quantities
    • Typically, sales reporting systems only capture what was shipped/invoiced, not what was ordered. Capturing and comparing both enables quantification of the demand “opportunity loss,” which could be factored into future “event” forecast models.
  7. Consumer sentiment and behavioral shifts
    • Specific to COVID-19, Nielsen IRI and Crisp DemandWatch have identified “phases” of consumer behavior and anticipated category purchase impacts. Noting when these phases occur in your forecasting system can provide insight into performance analysis and inform future projections. These consumer patterns may also have application to other extreme events, such as natural disasters.9,10
    • In the face of significant disruptions, look for, leverage, and annotate relevant consumer insights to inform the forecast. Link the annotation to a central archive of relevant research and data to expand access and understanding across your organization.
  8. Raw material, ingredient, packaging, labor or other sourcing issues
    • Note any shortages that impacted your ability to meet demand. Your ability to satisfy demand may be impacted by your own suppliers’ ability to get you the necessary inputs and/or your ability to staff production runs.
  9. Distribution & logistics issues
    • Access to truck, rail, and/or air transportation of products may also be disrupted by the event. Note any logistics constraints to delivering finished goods to customers.
  10.  Competitor activity/disruptions
    • New product launches, delivery systems, ownership, facility fires, labor shortages or disputes, weather patterns, and more that impact your competitors can also influence demand for your products, both in the short and long term.

In the heat of the crisis, this level of documentation may sound burdensome. Even if you start with notes on a scratch pad, email chains, and a collection of industry newsletters, set aside one morning or afternoon a week to annotate within your forecasting platform the factors that impacted demand that week. Continue to post notations in the week each specific disruption-driving factor begins and each week thereafter until its impact has dissipated. Keeping up with annotations as you go along will keep things fresher in your mind and can help inform immediate and near-term plans.

Disruption Database
Disruption databases can serve as the foundation for more sophisticated disruption forecasting models. As machine learning and artificial intelligence continue to evolve, these models can be customized based on the type of event. (Figure courtesy of Crisp).

Don’t forget that pantry loading shelf-stable items early in a disruption may significantly impact post-disruption sales, as consumers work through inventory they have at home. Track this as well. Best-in-class forecasting platforms, such as the example shown in Figure 1, can effectively leverage advanced computing power and analytics to help visualize the impact of COVID-19 on supply and follow-on effects predicted to be felt in your markets. The disruption information you track can be gathered, organized, and analyzed along with trillions of data points from disparate sources to generate high-quality statistical demand forecasts and actionable insights with speed and precision.

When the dust settles on this current event, take the time to document other historical disruptions. Working in reverse chronological order, gather as much date-specific archived data and tribal knowledge as you can, and add it to the annotations in your forecasting platform. The next time a disruption occurs (and it will!), you will be equipped to draw on this “database of disruptions” to proactively predict and respond to future impacts on demand.

References

  1. Coronavirus Disease 2019 (COVID-19). (2020. Centers for Disease Control and Prevention.
  2. Fares, M, Baertlein, L. (2020). Factories shift operations in scramble to restock supermarket shelves. Yahoo! finance.
  3. Redman, R. (2020). Coronavirus: How leading grocery chains are responding to keep customers safe and shelves stocked. Supermarket News.
  4. Wells, Jeff. (2020). Grocers modify store hours to clean and restock amid panic buying. Grocery Drive.
  5. Naidu, R, Fares, M. (2020). Wary of coronavirus, U.S. shoppers skip the fresh produce aisle. Reuters.
  6. Ward, A. (2020). COVID 19 Coronavirus Prevention: A dozen things to know about leafy greens. California LGMA.
  7. Koger, C. (2020). No reason to avoid fresh produce during outbreak. The Packer.
  8. (2020) Nielsen Investigation: “Pandemic Pantries” pressure supply chain amid COVID-19 fears. Nielsen Insights.
  9. (2020) Key consumer behavior thresholds identified as the coronavirus outbreak evolves. Nielsen Insights
  10. (2020) IRI Brief – COVID-19: Impact on CPG and Retail. Retail Wire.
Maria Fontanazza, Food Safety Tech
From the Editor’s Desk

COVID-19 in the Food Industry: So Many Questions

By Maria Fontanazza
1 Comment
Maria Fontanazza, Food Safety Tech

Industries across the global are reeling from the COVID-19 crisis. Although we are clearly not in a state of “business as usual”, the food industry is essential. And as this entire industry must continue to move forward in its duty to provide safe, quality food products, so many questions remain. These questions include: Should I test my employees for fever before allowing them into the manufacturing facility? What do we do if an employee tests positive for COVID-19? How can the company continue safe production? Should we sanitize between shifts on the production line? Should employees on the production floor wear face masks and shields? At what temperature can the virus be killed? The list truly goes on. We saw it ourselves during the first Food Safety Tech webinar last week, “COVID-19 in the Food Industry: Protecting Your Employees and Consumers” (you can register and listen to the recording here). Amidst their incredibly busy schedules, we were lucky to be graced with the presence and expertise of Shawn Stevens (food safety lawyer, Food Industry Counsel, LLC), April Bishop (senior director of food safety, TreeHouse Foods, Inc. and Jennifer McEntire, Ph.D. (vice president of food safety, United Fresh Produce Association) for this virtual event.

From a manufacturing point of view, we learned about the important ways companies can protect their employees—via thorough cleaning of high-touch areas, vigilance with CDC-recommended sanitizers, conducting risk assessments related to social distancing and employees in the production environment—along with the “what if’s” related to employees who test positive for COVID-19. Although FDA has made it clear that there is currently no indication of human transmission of the SARS-CoV-2 virus through food or food packaging, some folks are concerned about this issue as well.

“The U.S. food supply remains safe for both people and animals. There is no evidence of human or animal food or food packaging being associated with transmission of the coronavirus that causes COVID-19,” said Frank Yiannas, FDA deputy commissioner for food policy and response in the agency’s blog last week. “Unlike foodborne gastrointestinal viruses like norovirus and hepatitis A that make people ill through contaminated food, SARS-CoV-2, which causes COVID-19, is a virus that causes respiratory illness. This virus is thought to spread mainly from person to person. Foodborne exposure to this virus is not known to be a route of transmission.”

As the industry continues to adjust to this new and uncertain environment, we at Food Safety Tech are working to keep you in touch with experts who can share best practices and answer your questions. I encourage you to join us on Thursday, April 2 for our second webinar in this series that I referenced earlier, COVID-19 in the Food Industry: Enterprise Risk Management and the Supply Chain. We will be joined by Melanie Neumann, executive vice president & general counsel for Matrix Sciences International, Inc. and Martin Wiedmann, Ph.D., Gellert Family Professor in Food Safety at Cornell University, and the event promises to reveal more important information about how we can work through this crisis together.

We hear it often in our industry: “Food safety is not a competitive advantage.” This phrase has never been more true.

Stay safe, stay well, and thank you for all that you do.