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June 22, 2020

PepsiCo closes China food plant in Covid-19 move

US food and beverages giant PepsiCo has taken action following an outbreak of Covid-19 at one of its food processing plants in China.

By Leonie Barrie

US food and beverages giant PepsiCo has closed a food processing plant in Beijing due to a Covid-19 outbreak.

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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.
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Reuters reported the decision was taken after “at least one employee” tested positive for coronavirus at the facility which produces Lay’s crisps.

The news agency said PepsiCo China director of corporate affairs Fan Zhimin told a news conference yesterday (21 June) production at the factory in the Daxing district was halted as soon as coronavirus was confirmed amongst employees at the site on 15 June.

PepsiCo has not confirmed the exact number of positive Covid-19 cases at the facility but Reuters added a senior official for the Beijing disease control authority, Pang Xinghuo, told the same news conference eight people at the Daxing plant had tested positive.

Following the discovery of the virus amongst its workforce, PepsiCo conducted tests on all employees at the plant on 16 June and quarantined 480 employees on 20 June, even though they all tested negative for the virus, it told the news conference.

Reports in the Chinese media, unconfirmed by PepsiCo, suggested two of the eight employees affected has made purchases at the Xinfadi food market which has been implicated as the source of a new outbreak of the virus in the country’s capital.

just-food has asked PepsiCo for further information outside of US business hours.

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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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