COVID-19 News Roundup: Smithfield, Campbell’s See Cases at Plants, Accelerators Move Online
COVID-19 is changing the landscape for innovation as accelerators find digital ways to help new brands grow and trade shows stall for the foreseeable future. Meanwhile, two large manufacturers see COVID-19 cases in plants. Here’s the latest COVID-19 news from around the industry this week.
Smithfield Shutters 2 More Plants; COVID-19 Cases at Campbell’s PA Bakery
Despite distancing and sanitation efforts, an onslaught of cases in one facility can affect the food supply. After meat producer Smithfield’s Sioux Falls, South Dakota plant was closed indefinitely on Sunday, with at least 634 employees testing positive for COVID-19, the company closed two more plants this week. Its Cudahy, Wisconsin facility, which produces dry sausage and bacon, and Martin City, Missouri plant, which produces hams, receive raw material from the Sioux Falls location and cannot run without it. They will close for two weeks.
The company also said a small number of employees at both plants have tested positive for COVID-19 due to close proximity to larger cities where COVID-19 has been prevalent. Employees will be paid for the next two weeks while deep cleaning and sanitization are in progress.
“The closure of our Martin City plant is part of the domino effect underway in our industry,” president and CEO Kenneth M. Sullivan said. “It highlights the interdependence and interconnectivity of our food supply chain. Our processing facilities are the bottleneck of our food chain.”
Smithfield, which has 40,000 U.S. employees, is conducting thermal scanning, providing personal protective equipment and creating physical barriers to aid social distancing in its facilities, the statement notes, along with paying employees who miss work due to COVID-19 symptoms.
Also this week, six employees at a Denver, Pennsylvania-based bakery owned by the Campbell’s Soup Company tested positive for COVID-19 and are on paid sick leave for at least 14 days.
According to a company statement Wednesday, the infected employees had not been on-site in over two weeks. As a precaution, other coworkers they were in contact with are also on paid sick leave for up to two weeks.
“The safety and well-being of our teams and their families remain our top priority,” the statement says. Company protocols include health assessments, with employee temperatures checked before entering facilities and cleaning procedures multiple times per day.
Food-X Launches New Cohort; SKU Takes First-Look Forum Online
On Tuesday, New York-based food innovation accelerator Food-X revealed its 11th cohort of startups. Of nearly 500 applicants from 56 countries, the eight brands chosen hail from the U.S. and six other countries and are helping solve global food challenges, including supply chain modernization and the interplay of food and medicine. Due to COVID-19, the cohort program had to go virtual — a first for the accelerator.
“Our mission has never been more important amidst a pandemic that’s testing and straining the global food system,” Peter Bodenheimer, managing director and partner of Food-X, said. “While there may be a minimal supply shock in availability, there’s a growing need for transparency and traceability, an increased impact on transportation and logistics, and the heightened interest to boost immune systems.”
The cohort includes artificial intelligence (AI) beer and wine custom flavoring startup Ester, ingredient marketplace Fieldcraft, ecommerce platform Living Food Company, upcycled smoothie mix brand Lovi Smoothies from Nature Preserve, and bar, supplement and ingredient brand Rambuhealth. Half of the new cohort are female-led or co-led companies.
The brands will participate in an intensive 3.5-month program, followed by further guidance and investment afterwards. Founded in 2014, Food-X is powered by venture capital fund SOSV and has previously invested in 94 startups, including AI company Halla and gut health brand Uplift Food, which has since received investment from Mondelez Snackfutures. Applications are open for the 12th cohort, which will launch in the fall.
Additionally, SKU, the nation’s first consumer packaged goods (CPG) accelerator, took its pitch event online on Wednesday.
Due to COVID-19, the company livestreamed the event on YouTube, having already moved its 14-week program online in mid-March. The seven companies participate in a First-Look Forum at the halfway point to provide investors and buyers a “first look” at the companies before their final showcase day, which attracts influential angel investors and venture capitalists from around the country. The program covers channel strategy, positioning and branding, packaging, labeling and safety, operations and fundraising.
This year’s seven participants include snack brand Cheddies, functional nutrition brand Ladybird Provisions and functional brand Mushroom Revival. Founded in 2011, the Austin-based accelerator has graduated 40 brands including grain-free food maker Siete Foods and meat snack brand EPIC Provisions.
Trade Shows: Supply Side East Canceled, New Hope’s Fund
After the Summer Fancy Food Show was canceled on Monday, Supply Side East on Tuesday became the latest event this year forced to reschedule in the wake of the coronavirus. The event is now scheduled for April 13-14, 2021 in Secaucus, New Jersey.
“While team SupplySide hopes that our entire country is well on the mend by late June, we believe the decision to cancel the 2020 event is the best course of action,” Jon Benninger, SupplySide’s VP and market leader, said in a release. “Our focus now is on supporting the many businesses and people who make up this great industry as we navigate today’s challenges together.”
The show, produced by Informa Markets, was originally scheduled for April. The organizers’ decision last month to move to June received strong industry support, the release notes, but the pandemic has hit New York and New Jersey particularly hard; Seacaucus’s Meadowlands Expo Center, which has hosted Supply Side East since 2000, is currently being used as a field hospital. Until then, SupplySide plans to create new digital platforms to connect the industry.
Meanwhile, New Hope Network is still dealing with the fallout of its own cancelled event, Natural Products Expo West, originally scheduled for March 3-7, 2020. On Wednesday, the organizer shared further plans for its $5 million Expo West cancellation fund.
The show had 3,700 exhibitors and nearly 90,000 attendees before it was postponed on March 2 and ultimately cancelled later that month. To help emerging brands affected by the change, New Hope has allotted a $5 million fund and formed an independent advisory council of industry experts to establish criteria for dispersing it. According to Wednesday’s statement, most of the fund will go toward smaller and emerging brands that were first or second-time exhibitors at the show and had annual net revenues of under $2 million in 2019. New Hope will prioritize those that support organic and fair trade practices, transparency, sustainability, and regenerative agriculture. While costs from the show cancellation, including GES, freight and other expenses, will be considered, domestic travel costs will not.
Applications are due by 5 p.m. MT on Friday, April 24, and results will be sent to companies by Monday, May 18. New Hope added that all badges and education and training passes have been refunded, and every exhibitor and sponsor is receiving a full credit toward Expo East 2020, scheduled for September in Philadelphia, Expo West 2021 or other New Hope programming.
New Hope noted that cancelling the event also “incurred significant costs and liabilities that are not covered by our insurance and are therefore irretrievable.”
“This reality is likely to cause further frustration for some of our Expo exhibitors, and we apologize in advance for our need to prioritize helping some companies more than others,” the statement reads. “This is not a reflection of our appreciation and gratitude for each of our Expo community members; it’s a reflection of our own financial limitations right now.
