THE NEW NORMAL
Despite some strong retail snack and bakery performance, the pandemic has taken its toll on several areas of business—including lost customers and operational costs related to COVID-19. “We lost business in the foodservice/restaurant channel, in some cases forever,” says Sarlls. “Several of our branded customers struggled for consumer attention and venture funding, while in-person merchandising went dark and financial markets went haywire. We incurred hundreds of thousands of dollars of excess costs directly due to the pandemic, including everything from extra cleaning and sanitation to paying for COVID tests and telemedicine. But, through it all, we took care of our customers and met their needs. That is our job.”
The corporate landscape will see some permanent shifts because of the pandemic. “What used to be inelegantly called ‘telecommuting’ went into high gear this year,” says Sarlls. “We don’t anticipate returning to a ‘five-day in the office presence’ any time soon—if ever. The life/work balance was already top of mind with most 21st century workers. Now that employees and businesses see the myriad benefits of flexible working, some mix of in-presence and at-home is the new normal.”
Employees who can work from home are continuing to do so—a situation that will continue for some time, suggests Rod Radalia, vice president of innovation, Aunt Millie’s Bakeries, Fort Wayne, IN, and a 1st vice chairman of the American Society of Baking Board of Directors. “The return date keeps getting extended. It is challenging in the bakeries, as the number of employees that cannot work keeps inching up. Rules have not changed in the bakery operations, but a constant reminder of them continues.”
Snacking can benefit from this shift. Better-for-you snacking, in particular, has an opportunity to align with Americans’ increased focus on health and wellness, says Sarlls. “As the economy recovers, there will be a higher level of disposable income (lower commuting costs) and a willingness to spend disposable income on premium food products, including better-for-you snacks.”
Some semblance of “normality” as we knew it will eventually return, suggests Ash Gurney, key account technical services manager, Dawn Food Products, Jackson, MI, and a member of the American Society of Baking Board of Directors. “There will be changes to the workplace, in hygiene, common areas, and of course to face to face interaction. However, looking at the experience and vision formed from the past six months, I think you will see the greater population’s reservations and fears settle over time. From this, only those changes practical for longer-term business, social interaction, and community acceptance will settle into a ‘new normal.’ I believe once we see effective global vaccination take effect, the fear of coronavirus and its effect on business operations will subside and bear a similar impact to the early-century food-safety practices implemented, which while significant in representation, will be relatively minor in overall industry impact.”
One positive takeaway from the pandemic is a renewed focus on health. “The needs for running a plant making food don’t change during a crisis, like a pandemic,” says Sarlls. “It is challenging and difficult to take care of our branded customers and underlying consumers while keeping the health and safety of our plant teammates at the forefront. The changes we made early in the pandemic—especially the awareness to the severity of the situation—changed behaviors enough to minimize the impact.