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April 7, 2021

Kraft Heinz to ‘raise ketchup output as Covid-related demand creates shortage’

By Dean Best

Kraft Heinz is reportedly planning to increase ketchup production in the US as restaurants across the country face a shortage in supply as the pandemic has forced more people to cook at home or order takeaways from what would normally be sit-down eateries.

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The Wall Street Journal says the US consumer-goods giant is planning to raise output by 25% by adding two new production lines in April for its Heinz ketchup as restaurants revert to ‘generic’ bottles of the condiment or single-serve packet versions.

It adds that the increase in demand for packets of ketchup has pushed up prices by 13% since January 2020, which, according to executives at fast-food restaurant chain Long John Silver’s spoken to by the WSJ, has cost the company an extra half a million dollars in costs.

The WSJ says single-serve packets of ketchup have become the new norm during the coronavirus-related lockdowns rather than the bottled variant as normally sit-down restaurants cater to more takeaways, both national chains and their smaller counterparts.

just-food has approached Kraft Heinz for comment.

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Free Whitepaper
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What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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