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March 13, 2020

Coronavirus – J&J Snack Foods warns of potential impact on sales

J&J Snack Foods, the US food business serving retail and foodservice channels, has warned its sales could be impacted by coronavirus.

By Dean Best

J&J Snack Foods, the US food business serving retail and foodservice channels, has warned its sales could be impacted by coronavirus as fewer consumers eat out.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The Nasdaq-listed business, located in New Jersey, produces baked goods, cookies, snacks, desserts and frozen beverages under brands such as Hill & Valley, Minute Maid and Auntie Anne’s. The company generated sales in 2019 of US$1.1bn and net earnings of $103.6m.

J&J Snack Foods said in a statement late yesterday (12 March) that it “expects its results of operations to be impacted by the closings and anticipated lower attendance and traffic at many of the venues and locations where its products are sold, such as schools, stadiums and arenas, movie theatres, amusement parks and restaurants, and by a general slowdown in activity throughout the United States resulting from the effects of the coronavirus (Covid-19).” 

The impact may be “material”, the company said, although it could not at this stage put an estimate on exactly what that might be. However, it noted sales from such outlets amount to around $350m to $400m annually.

Gerald Shreiber, its president and chief executive, said: “We have and are continuing to develop contingency plans to address and lessen the impact of the effects of coronavirus on our employees, our customers and our overall business.”

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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