Executives in food and beverage planning for a potential pandemic
MANHATTAN, Kan. According to a recent report by AIB International, over 75% of high level food and beverage executives in North America are actively getting ready for a potential worldwide pandemic.
Research Strategy Group surveyed 325 senior-level executives in North America on behalf of AIB International.
The poll found that 78% of executives in the food and beverage industry are actively getting ready for a potential worldwide pandemic, with 30% anticipating one in the next four years and 50% anticipating one in the next ten.
According to Anne Coulter, managing director of Research Strategy Group, “nearly half of respondents indicated they are still not adequately prepared with a plan for the future” following the disruptive year. This shocking lack of readiness is compounded by the fact that 30% of people think a global pandemic will strike within the next four years, and 50% think it will happen within the next ten. Furthermore, the pandemic increased operating costs for 62% of respondents, but these companies’ average rise was 20%.
According to the poll, 61% of participants stated that their organization lacked a sufficient plan to address the COVID-19 epidemic at the outset. In the meantime, 62% of those surveyed claimed they were not “very prepared” to handle the COVID-19 outbreak. 83% of respondents were from the retail sector, 57% from the processing and manufacturing sector, and 66% from the import/export, packaging, storage, and distribution sectors.
Comparatively speaking, 62% of businesses overall reported an increase in operational costs, while 76% of businesses with yearly revenue of $1 billion or more reported the same.
In all, 19% of the organizations questioned had a rise in operating expenses and a fall in revenue, whereas 43% experienced an increase in operating expenses but no reduction in revenue. Two reasons for higher operating costs were found to be most frequently highlighted in the survey: 75% of businesses reported higher operating expenses as a result of PPE and modified workspaces to comply with COVID-19 regulations, while 74% reported higher operating costs as a result of improved sanitation.
Revenue declined for one-third of the enterprises surveyed, with an average decline of 27%.
According to Steve Robert, worldwide vice president of product innovation at AIB International, the study emphasizes the severe consequences that a lack of readiness causes for a great number of businesses in the sector.
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“It’s evident that now is the time to prepare for the future and elevate critical planning to a best-in-class standard, despite the understandable ‘crisis fatigue’ from dealing with COVID-19 over the past year,” Mr. Robert stated. “Enhanced readiness will help mitigate some of the expenses and inconvenience that so many operations have experienced over the past year should a pandemic occur in the future.”
AIB International launched a Pandemic Prepared Certification for food and beverage producers in July 2020. The goal of the program is to reassure staff members, insurers, retailers, and customers that businesses are dedicated to implementing and upholding best practices in the event of a worldwide incident like to the coronavirus (COVID-19) pandemic. Pandemic crisis management, health crisis mitigation and management, supply chain disruption, food safety continuity, and intermittent operations are the five main areas covered by the certification.
In October 2020, Almarai Co., a Saudi Arabian corporation, became the world’s first organization to obtain the Pandemic Prepared Certification. The Pandemic Prepared Certification for Corporate Offices was most recently granted to Lesaffre’s North American corporate office located in Milwaukee. Achieving the accreditation, according to AIB International, shows that Lesaffre has placed a high priority on the health, safety, and well-being of its workers. This will encourage and boost workers’ confidence as they return to the office.
With locations in both North America and the United Kingdom, Research Strategy Group is a global market research and insights company that provides advisory services to major multinational corporations, governments, and industry champions.