Weekly Roundup: UK retailers drive recruitment amid panic buying, vodka firm pivots to produce hand sanitizer

27 Mar 2020 --- This week, the COVID-19 pandemic has resulted in an unprecedented increase in demand for food and household products. As a result, retailers Tesco, Aldi and Co-op are recruiting temporary colleagues to help feed British families. Meanwhile, Unilever announced a contribution of more than €100 million (US$109.4 million) to help people affected by the virus around the globe and the Coca-Cola Foundation is also set to donate US$5 million to families following the outbreak. Also this week, Nestlé revealed its milestones in helping end deforestation and restoring forests in cocoa.

In brief: COVID-19
UK retailer Tesco is recruiting for 20,000 temporary positions to help feed British families. The company says, “We’re working around the clock to help ensure families have access to the shopping items they need.” To help Tesco step up and meet demand, the retailer is bringing in the new recruits to work in its stores for at least the next 12 weeks. 

Aldi has also launched a recruitment drive to help it to cope with the coronavirus crisis in the UK. The German retailer says a total of 9,000 jobs are available, including 4,000 permanent positions and 5,000 new temporary roles at its stores and distribution centers across the UK. Aldi notes that while contracts are offered temporarily, these could become permanent in the future. The company has further noted that the addition of thousands of new staff would help replenish stock faster and provide additional assistance to customers visiting Aldi’s stores during this busy period.

Meanwhile, Co-op Food announced plans to create 5,000 roles in its convenience stores to provide temporary employment for hospitality workers who have lost their jobs and step up support for local communities amid the COVID-19 outbreak. The Co-op has 2,600 stores across the UK. It says the increase in staff numbers will help stores replenish stock more efficiently, fulfill online orders and help more vulnerable customers. 

With the significant shortage of hand sanitizer around the world, Lantmännen Reppe in Lidköping is reconfiguring its distribution flow of vodka to make input goods for hand sanitizer manufacturers.Unilever has announced a wide-ranging set of measures to support global and national efforts to tackle the COVID-19 pandemic. Unilever will contribute €100 million to help the fight against the pandemic through donations of soap, sanitizer, bleach and food. The company will also offer €500 million of cash flow relief to support livelihoods across its extended value chain, through early payment for our most vulnerable small and medium-sized suppliers, to help them with financial liquidity and extending credit to selected small-scale retail customers whose business relies on Unilever, to help them manage and protect jobs.

As restaurant and foodservice establishments continue to close or limit service due to COVID-19, the demand for grocery items continues to rise. Flavorchem notes that its manufacturing lines have been able to function at full capacity by instituting a robust operational and sanitation response plan that is reviewed and updated daily based on recommendations of  federal, state and local health experts and following industry best practices. Currently, the company is responding to increases in order volume and reports not to have experienced any delays supplying essential ingredients to food and beverage brands. “We are a vital part of the food supply chain. For as long as we are able, we will meet the needs of our customers who are providing food and beverages to retailers across the country and around the world,” President Ken Malinowski stresses. 

Elsewhere, the Boys & Girls Clubs of America have announced a US$5 million donation from The Coca-Cola Foundation to support the organization’s commitment to youth and communities during the global coronavirus pandemic. With the suspension of schools and workplaces, the country, and especially children and teenagers, are facing challenges unlike anything previously encountered. The Coca-Cola Foundation’s support will immediately help ensure Clubs can continue critical COVID-19 response work and ready additional Clubs throughout the country who will soon emerge to do the same within their communities.

There is a significant shortage of hand sanitizer around the world, including in Sweden. Lantmännen Reppe in Lidköping distils Swedish vodka which is usually sold as alcoholic spirits, primarily in the US and Sweden. With the emergency situation prevailing, Reppe is reconfiguring its distribution flow to make input goods for hand sanitizer manufacturers. Lantmännen will supply 700,000 liters that will be used to produce hand sanitizer and disinfectants. Permission to supply input goods for hand sanitizer production was subject to Swedish Chemicals Agency approval. 

In brief: Other highlights
Nestlé has reported significant progress in its efforts to help end deforestation and restore forests in its cocoa supply chain in Côte d’Ivoire and Ghana. The company has published its Cocoa & Forests Initiative report, highlighting key milestones achieved. In 2017, Nestlé joined the Cocoa & Forests Initiative to contribute to ending deforestation. The partnership brings together the governments of Côte d'Ivoire and Ghana with the cocoa and chocolate industry. Nestlé has scaled up the number of native forest and fruit trees it has distributed in Côte d’Ivoire and Ghana, from 32,000 in 2018 to now reach a total of more than 560,000. These cast shade on cocoa trees making farms more climate-resilient, while the fruit trees provide additional income for cocoa farmers. The company has also kicked off two agroforestry projects, working closely with communities to maximize shade tree density on farms to help improve yields. Nestlé has reported significant progress in its efforts to help end deforestation and restore forests in its cocoa supply chain in Côte d’Ivoire and Ghana. 

Barfresh Food Group, a manufacturer of frozen, ready-to-blend beverages, has entered into binding definitive agreements for approximately US$5.87 million in financing. The components of the financing consist of an aggregate sale of around US$5.87 million of common stock at US$0.50 per share with 50 percent warrant coverage with an exercise of US$0.60 per share, of which US$3.825 million will be for growth capital and approximately US$2 million came from the conversion of existing debt into the current offering.

Pernod Ricard has purchased the remaining stake in the Ultra-Premium dry gin brand, Monkey 47. The Group initially acquired a majority stake in 2016 and Alexander Stein will remain active in an advisory capacity in Monkey 47’s ongoing development. 

By Elizabeth Green