Supply Chains Pivot During Coronavirus

Supply chains are adapting to follow the shift of consumers during the coronavirus. Home-based environments are the new normal and look to stay that way for the foreseeable future.

Although communities & businesses begin to re-open, social distancing is here to stay. As such, many supply chains are now shifting their focus from retailers & restaurants to at home end-users.

Through e-commerce, manufacturers have the ability to sell products directly to consumers. As a result, there have been changes made to the marketing, manufacturing, packaging, warehousing, and logistics of products.

“According to Republic National Distributing Company (RNDC), a major, $20 billion revenue, wine and spirits distribution company, sales of spirits jumped by around 50% for the week ending March 21 (the beginning of most stay at home orders). Nationally, the overall increase for the week, according to Nielsen data, was a 55% spike in sales,” Forbes.

Liquor retailers have had a shift from truckload-sized orders of wine & beer for large events to smaller individual orders that are low to mid-priced that are now catering to at-home consumption rather than weddings, concerts, & sporting events. Sales of canned alcoholic beverages have become the top performer in the alcoholic beverage industry.

 

A prime example of modified packaging & branding is the Budweiser commemorative Memorial Day packaging design. This throwback design engages the at-home consumer.

“Memorial Day Weekend is looking different this year, so Budweiser thought your beer should too. The brand has unveiled the new, patriotic-themed family pack of products with red, white, and blue camo-designed cans and large packs honoring the five branches of the United States Military,” (Packaging Strategies).

The packaging professionals at C.L. Smith are available for customers, manufacturers, & distributors to assist during these supply chain changes. From modified processes to alternate packaging options, we are here for you!