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3-Minute Market Insight

EP 504 | AIRED 09/07/2020

Covid-19 Foodservice & Buyer's Update

September 7th, 2020 --- This week we provide a much needed COVID-19 Foodservice Industry update for USA and Canada as we transition into this new and uncertain season.

The majority of foodservice felt the impacts of Covid-19 like no other, but are cautiously finding their new normal.

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In the USA, a growing number of states are pausing plans to reopen, amid rising case counts.

Our foodservice experts have informed us that due to a higher number of staff on furlough, buyers who were previously focused on one category of purchasing, are now tasked with a broader range for the first time.

Subsequently, the entire process has slowed down the foodservice inventory controls, and day to day buying has dropped about 50 percent.

--- As the restaurant industry slowed immensely, there are large quantities of older inventory that foodservice distributors and wholesalers need to work through.

Purchasing remains cautious with risks of a second-wave of the virus due to the opening of schools, and could possibly reinstate another lockdown.

Another complete halt to the industry could easily jeopardize warehouses and older inventory.

Purchasers are sticking to reliable options, options they know will sell, and while cutting prices might seem tempting, the main issue is simply the lack of space for any extra food storage.

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USA Business

--- One of the largest sectors that has encountered difficulties is the casino industry.

With buffets still prohibited, this reduces the majority of food consumption at locations all around North America.

According to our sources, this industry wasn't implementing alternative options right away, which resulted in a huge loss of foodservice opportunity.

As well as the Casinos, this year's cruise industry is practically non existent, not only eliminating on-board meals but also the large customer base for tourist destinations around the world.

--- Not everything is 'doom and gloom' however, as the end of August provided some hope, with businesses who have followed the necessary precautions have remained open.

International imports appear to be dwindling in popularity, and the desire to use local or North-American products, within North America appears to be a priority.

This is both due to increasing tariffs and to avoid as much cross-contamination as possible.

While this might hinder some importers, this can also be seen as an opportunity for local communities to practice self-sustainability, and of course keeping safety at the highest priority.

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30 Years of Seafood Excellence

--- Health Facilities, Correction centres and seniors residences are keeping foodservice going as they are all essential and will stay open.

In fact, we've heard from some essential businesses that their sales are increasing, as there are fewer options for people to chose from.

Any business that can stay versatile and adapt to this new market while abiding appropriate safety precautions, should be in good hands.



Business Trends

--- We hope to see bigger shifts in the future, but for now buying remains efficient and conservative, waiting for some sense of stability before making big moves.

Our recommendation is to keep a pulse and conversation going with your Tradex reps.

Our seafood production keeps moving and we have new inventory ready for you whenever you are ready for it.

--- Keep tuned-in to your 3-Minute Market Insight as we keep you up to date on the state of foodservice and seafood production around the world.

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