Weekly Roundup: COVID-19 uncertainty prevails, FDA pledges to prevent food supply chain disruptions

20 Mar 2020 --- This week in industry news, COVID-19 continues to wreak havoc on global businesses and supply chains. The US Food and Drug Administration (FDA) issued a temporary policy for Food Safety Modernization Act (FSMA) onsite audit requirements to minimize disruptions in the supply chain. The US Department of Agriculture (USDA) announced it is ensuring the safety and timely delivery of the US food supply and the UK government granted permission for pubs and restaurants to operate as takeaways. BASF has postponed its Annual Shareholders’ Meeting and Starbucks have temporarily adapted its service model in all company-owned stores in the US and Canada.

In brief: COVID-19
The FDA has taken steps to help prevent disruptions in the food supply chain by issuing a temporary policy for FDA FSMA supplier verification onsite audit requirements during the COVID-19 public health emergency. “While our grocery stores are facing unprecedented demand, we are working with industry to minimize disruptions in the supply-chain due to COVID-19 related travel restrictions,” says FDA Commissioner Stephen Hahn. “The policy released will help to minimize disruptions so that the food industry can meet the demand while also continuing to conduct supplier verification activities that are designed to ensure food safety and following government travel restrictions and advisories. While we are confident that stores will remain open and supply will continue to meet demand nationwide, we ask all US residents to only purchase enough food and essentials for the week ahead.”

COVID-19 continues to wreak havoc on global businesses and supply chains. Meanwhile, the USDA is ensuring the safety and timely delivery of the food supply while protecting the health of USDA employees during the COVID-19 pandemic. Under Secretary for Marketing and Regulatory Programs Greg Ibach and USDA Deputy Under Secretary for Food Safety Dr. Mindy Brashears sent a letter to stakeholders reassuring them that Animal and Plant Health Inspection Service, Agricultural Marketing Service and Food Safety and Inspection Service are rising to meet the challenges associated with COVID-19.

The UK government Communities Secretary has confirmed the government will set out measures so that pubs and restaurants can operate as hot food takeaways to serve people having to stay at home. As it stands, planning permission is required for businesses to carry out a change of use to a hot food takeaway. The government has confirmed regulations will be relaxed to enable businesses to deliver this service without a planning application. The measures are the latest in a series of practical steps the government is taking to support businesses and help people who need to self-isolate, as well as vulnerable groups and older people who have been strongly advised to avoid social contact outside their homes to prevent the spread of coronavirus.  

Greencore, a manufacturer of convenience food in the UK, is more than five months into FY20 and trading broadly in line with original expectations. Since the emergence of COVID-19, the company has implemented an extensive range of measures to keep colleagues safe. The group’s supply chain and production network have remained fully operational. The impact of COVID-19 has become more pronounced on the wider UK food industry, the grocery sector and on Greencore. While much is changing across UK society in response to the pandemic, it is apparent that the maintenance of a robust food system – at a manufacturing, distribution and grocery store level – will be an increasingly critical part of the national infrastructure, particularly as footfall reduces in foodservice and hospitality formats.

Due to the spread of the coronavirus in Germany, BASF will not be able to hold its Annual Shareholders’ Meeting on April 30 at the Rosengarten Congress Center as planned. The company says the health of employees, shareholders and the service providers involved takes priority. The state of Baden-Württemberg has banned events with more than 100 participants for the time being until June 15, 2020.

Starbucks is taking a number of actions to protect the health and well-being of its partners and customers and to control the spread of COVID-19 in accordance with expert guidance. The coffee chain has temporarily adapted its service model in all company-owned stores in the US and Canada making all orders “to go” and pausing on seating in cafés to help create social distance and closing restrooms. Starbucks is accepting orders placed at the register, through the Starbucks app and at the Drive-Thru.

In brief: BusinessHain Celestial completed divestitures of the Casbah and Europe's Best brands to US Durum and Nature's Touch Frozen Foods, respectively.
The board of directors of Ingredion have declared a quarterly dividend of US$0.63 per share on the company’s common stock. The dividend is payable on April 27, 2020, to stockholders of record at the close of business on April 1, 2020. 

LeBaronBrown Specialties has acquired a majority interest in Dien, a specialty chemical and ingredients distributor based in Dallas, Texas, US. Dien’s management team will continue to manage the business. As part of the transaction, Dien Stout will retire as President. Terms of the transaction have not been disclosed. 

The Hain Celestial Group, an organic and natural products company with operations in North America, Europe, Asia and the Middle East, has completed divestitures of the Casbah and Europe's Best brands to US Durum and Nature's Touch Frozen Foods, respectively. Details of these transactions have not been disclosed. 

In brief: Sustainability 
Azelis and its corporate social responsibility (CSR) performance has been awarded the EcoVadis Gold rating for the second time in a row. EcoVadis provides business sustainability ratings, intelligence and collaborative performance improvement tools for the global supply chain. Its CSR assessment methodology covers 198 purchasing categories, 155 countries, and 21 CSR indicators.The EcoVadis Gold rating was an important prerequisite for Azelis’ membership to Together for Sustainability (TfS), a global initiative for sustainable supply chains.

First Milk has launched a new initiative to proactively promote dairy farming and First Milk to its customers and the public – the First4Milk Pledge. This initiative, which builds on the First4Milk responsible sourcing program it launched last year, sees the business asking its members to commit to improvements within three main areas – people, animals and the earth. The key elements of the new First4Milk Pledge include farmer members agreeing to provide cows with access to pasture for a minimum of six hours per day for 120 days during the grazing season; guaranteeing that no healthy animal, including calves, will be euthanized on farm; sharing antibiotic use data; enhancing biodiversity and soil health on farm and helping to promote a positive image of dairy.

By Elizabeth Green