Campbell Soup Company㽶Ƶֱs production goes into overdrive during what executives dub 㽶Ƶֱsoup season.㽶Ƶֱ Starting in October and ending with the close of winter, Campbell㽶Ƶֱs manufacturing centres run non-stop, staffed by extra employees.
Since the arrival of the COVID-19 pandemic, consumer demand has soared, eclipsing that of the company㽶Ƶֱs busiest time. In March, there were more orders during one week than are typically seen in the entire month.
㽶ƵֱOur plants are operating 24/7 right now, which is fairly unusual for April, to be honest,㽶Ƶֱ said Beth Jolly, vice-president of communications at the company㽶Ƶֱs meal and beverages division, which includes Campbell Canada. 㽶ƵֱIt㽶Ƶֱs really just been a dramatic shift to a full-out production increase.㽶Ƶֱ
Demand for food, particularly non-perishable products, has surged as physical distancing measures keep Canadians close to home. Grocers are ordering more from manufactures, who like Campbell have hired more workers, increased operating hours and enacted other measures to increase production.
At Campbell㽶Ƶֱs, weekly case orders for that one week in March jumped about 366 per cent at the company㽶Ƶֱs meal and beverage division, Jolly said.
Kraft Heinz Canada, meanwhile, reported an 80 per cent increase in demand for its signature Kraft Dinner product last month compared to March 2019, the company says.
To meet that demand, both manufacturers had to make several changes to ramp up production.
Kraft㽶Ƶֱs Montreal-area production facility 㽶Ƶֱ where more than 90 per cent of its food for the Canadian market is produced 㽶Ƶֱ now operates 24 hours a day, seven days a week, said Av Maharaj, chief administrative officer for Kraft Heinz Canada.
The company is considering new ways to increase efficiency. It may prove simpler to produce only one type of packaging for Kraft Dinner rather than a variety of box designs, Maharaj said.
㽶ƵֱFrom an efficiency perspective 㽶Ƶֱ you don㽶Ƶֱt want to stop your line, change packaging, build out the other one for a smaller packaging line,㽶Ƶֱ he said. 㽶ƵֱBut rather, produce the most popular brand, popular size and that gets more product to the market.㽶Ƶֱ
More difficult is changing production lines. Demand is down from food service clients, such as restaurants and hotels. But transforming a food service production line to one making grocery products is not so simple.
㽶ƵֱIn many ways, it㽶Ƶֱs like, you know, a giant Lego system where every piece is connected,㽶Ƶֱ said Maharaj.
It can be very expensive to switch a production line and take months to do, he said.
㽶ƵֱYou can㽶Ƶֱt sort of switch overnight from one product to the next.㽶Ƶֱ
The company has been in talks to see if any of its food service products, such as single-serve peanut butter packets, can be sold at grocery stores.
Campbell㽶Ƶֱs, meanwhile, is trying to focus more on its most popular varieties of soup.
㽶ƵֱIt㽶Ƶֱs a bit of a balance,㽶Ƶֱ said Jolly, since the company has to ensure it has enough ingredients to match the increased production.
㽶ƵֱIt㽶Ƶֱs not as if we can just put out chicken noodle and tomato.㽶Ƶֱ
Campbell㽶Ƶֱs also dipped into its existing stockpiles. The company had about 1.5 million cans with limited-edition Andy Warhol labels ready to release in May, but decided to forgo the promotional activity and release the product in April to address demand.
These changes allowed the companies to make more of their products quicker.
Kraft typically makes about seven million Kraft Dinner boxes a month, according to the company. Last month, it made roughly 15 million.
Once the product is made another challenge is getting the extra goods to distribution centres and eventually grocery stores.
㽶ƵֱMost food manufacturers don㽶Ƶֱt own their own trucks,㽶Ƶֱ said Maharaj, and Kraft hires local trucking firms to transport its goods from production facilities to distribution centres.
㽶ƵֱVery often, that can be a bottleneck because everyone needs trucks right now to get food out the door,㽶Ƶֱ he said, noting the company㽶Ƶֱs logistics team has been working hard and 㽶Ƶֱfor the most part, we㽶Ƶֱve been able to find the trucks that we need.㽶Ƶֱ
In some cases, Kraft is bypassing distribution centres entirely and instead shipping straight to grocers.
㽶ƵֱThat㽶Ƶֱs one of the ways we㽶Ƶֱre speeding up getting product to customers.㽶Ƶֱ
Aleksandra Sagan, The Canadian Press