COVID-19

Wholesale food businesses ship directly to consumers to meet demand

Victoria Craig Apr 10, 2020
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Empty shelves where packets of flour would normally be stocked are pictured below half-empty egg and sugar stocks in a north London supermarket. Isabel Infantes/AFP via Getty Images
COVID-19

Wholesale food businesses ship directly to consumers to meet demand

Victoria Craig Apr 10, 2020
Empty shelves where packets of flour would normally be stocked are pictured below half-empty egg and sugar stocks in a north London supermarket. Isabel Infantes/AFP via Getty Images
HTML EMBED:
COPY

The COVID-19 pandemic has completely upended our personal supply chains. Some companies are adapting to fill a need with some shelves in stores looking bare.

When the United Kingdom implemented shelter-in-place guidelines, food started flying off supermarket shelves.

Major chains offered online order and delivery, but you had to wait as much as three or four weeks just to get a delivery slot.

That’s about the time wholesale food businesses — like Smith & Brock — started implementing direct-to-consumer side hustles.

“It really started from a few WhatsApps,” said Nick Fowler, co-founder of the company, which provides fruit and vegetables to 300 corporate customers, including Michelin-starred restaurants and five-star hotels.

When COVID-19 caused restaurants and hotels to close their doors, Smith & Brock was suddenly flooded with excess supply.

“We had a fall of 95% literally overnight,” Fowler said.

So, he and the team accelerated plans to launch a door-to-door delivery service.

“One of our sales guys messaged a few people on his street and said, ‘If anyone wants a veg box, let me know,'” Fowler said. “And that just grew arms and legs. The phones went wild.”

Smith & Brock is now delivering boxes costing between $25 and $70 each. It’s not quite the revenue generator his corporate buyers would bring in, but it’s allowing Fowler’s team to hire more staff and serve the community.

“A week ago, we were staring down the barrel of, ‘How do we get out of here? Will we survive?'” he said. “I never envisaged seven days ago we’d be talking about turning the website off because it’s getting to the point where I’m not sure we’ll be able to handle it in a few day’s time.”

That’s the sentiment driving the family behind Wessex Mill, a small flour producer 90 minutes from central London.

Fifth-generation miller Emily Munsey, says production quadrupled basically overnight. “We’re nowhere close to meeting demand.”

Not only are supermarkets unable to keep stock of big-name flour brands, small millers like Wessex have also seen a surge in demand as more people take up baking under lockdown.

“Yesterday, we took 80 orders in eight minutes,” Munsey said. “We’re sending out around eight tonnes of flour a week. We used to only send out one.”

But Munsey isn’t worried about running out of supplies.

“We buy a lot of our local wheat from local farmers within 30 miles,” she said.

The big question is whether consumers will continue purchasing this way once the coronavirus crisis is over. In the meantime, companies will keep taking orders so our personal supply chains — and the sourdough starters we created to fill our downtime — don’t dry up.

COVID-19 Economy FAQs

New COVID-19 cases and deaths in the U.S. are on the rise. How are Americans reacting?

Johns Hopkins University reports the seven-day average of new cases hit 68,767 on Sunday  — a record — eclipsing the previous record hit in late July during the second, summer wave of infection. A funny thing is happening with consumers though: Even as COVID-19 cases rise, Americans don’t appear to be shying away from stepping indoors to shop or eat or exercise. Morning Consult asked consumers how comfortable they feel going out to eat, to the shopping mall or on a vacation. And their willingness has been rising. Surveys find consumers’ attitudes vary by age and income, and by political affiliation, said Chris Jackson, who heads up polling at Ipsos.

How many people are flying? Has traveled picked up?

Flying is starting to recover to levels the airline industry hasn’t seen in months. The Transportation Security Administration announced on Oct. 19 that it’s screened more than 1 million passengers on a single day — its highest number since March 17. The TSA also screened more than 6 million passengers last week, its highest weekly volume since the start of the COVID-19 pandemic. While travel is improving, the TSA announcement comes amid warnings that the U.S. is in the third wave of the coronavirus. There are now more than 8 million cases in the country, with more than 219,000 deaths.

How are Americans feeling about their finances?

Nearly half of all Americans would have trouble paying for an unexpected $250 bill and a third of Americans have less income than before the pandemic, according to the latest results of our Marketplace-Edison Poll. Also, 6 in 10 Americans think that race has at least some impact on an individual’s long-term financial situation, but Black respondents are much more likely to think that race has a big impact on a person’s long-term financial situation than white or Hispanic/Latinx respondents.

Find the rest of the poll results here, which cover how Americans have been faring financially about six months into the pandemic, race and equity within the workplace and some of the key issues Trump and Biden supporters are concerned about.

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