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Three CEOs Discuss the Future of Food After COVID-19

Beans, bread and potatoes: these pantry staples have become some of the most sought-after items in the COVID-19 pandemic. As fear and panic buying settled into 2020’s new normal, what is the future of food? Drew Facer, president and CEO of Idahoan Foods; Ryals McMullian, president and CEO of Flowers Foods; and Al Williams, president and CEO of Bush Brothers & Company joined the Consumer Brands Association for the second CPG Speaks session, with a focus on one of the hottest topics during the pandemic: cooking (and eating) at home.

COVID-19 Was Unexpected, But Not Entirely Unprecedented

The COVID-19 crisis is unlike anything in our lifetimes and hopefully something we will not see again. While the first few months of the pandemic were tumultuous, CPG companies were steady in their response.

“We’re 112 years old,” said Williams. “We’ve been here, we’ve seen pandemics before, we’ve seen world wars before, we’ve seen depressions, and we’re going to be here and give that reassurance message.”

“We’re 112 years old,” said Williams. “We’ve been here, we’ve seen pandemics before, we’ve seen world wars before, we’ve seen depressions, and we’re going to be here and give that reassurance message.”

In March, CPG companies jumped into action, switching over food service production capacity to consumer lines, to help meet the incredible demand at the beginning of the pandemic. Brands also reduced the number of available SKUs, focusing only on producing the most popular items that consumers were relying on. Next, they focused on how they could help, working directly with philanthropic organizations like Feeding America.

“The collective crises we’ve dealt with to date have prepared us to address the COVID issue,” said Facer. “I think it’s the learnings of your team, your intuition, your empathy and relevant data that drive us toward making the best decisions.”

The Future is (Even More) Digital

From the way we shop to the ways we work and connect with others, the COVID-19 pandemic has pushed both consumers and companies online more than ever before. In March, as millions of office employees around the world transitioned to remote work, some were skeptical of the realities of working outside the traditional office setting. But the case study of the last five months led to the CEOs agreeing that — while there is still value in being physically together, especially when it comes to camaraderie and culture —the traditional 9-to-5 may be a relic of the past.

“I think it’s the learnings of your team, your intuition, your empathy and relevant data that drive us toward making the best decisions,” said Facer.

“I think you get stuck in your ways and traditions,” said McMullian. “There was never really a big push to go to a remote work situation or rely like we are now on Zoom or Teams. We were pushed into it by the situation, but now that we’ve done it, it works remarkably well.”

E-commerce has also exploded since the pandemic began, at first out of necessity, but now out of convenience and a desire to avoid interaction. The virus accelerated the growth of online shopping, especially for traditional brick-and-mortar grocery items, and is a trend that’s here to stay.

“People are looking for more convenience, they’re looking for solutions,” said Facer. “When you go into a store, you have every option in front of you. If we can use e-commerce as a better platform, we can pull all these solutions together and build the e-commerce basket size.”

What’s Next: From Holiday Demand to Future Mindsets

Though it may feel like 2020 has brought challenges to last a lifetime, there are still five months left in the year, including one of the busiest cooking and eating seasons of all: the holidays. Luckily, CPG is already thinking ahead and preparing for the end of the year and beyond.

“All three of us have a lot of folks out on the frontlines, working in plants,” McMullian said to close out the session. “They need to know that they’re cared for, they need to know that they’re appreciated and they need to see action behind those words.”

Food manufacturers have begun to resume all product lines, no longer just focusing on the most in-demand items as panic buying slows. Both suppliers and manufacturers have also been working with incredible speed, preparing product lines for the busy fall season.

As for the future, CPG leaders are taking the lessons learned during the pandemic and applying them now, strengthening their business and connecting with employees and consumers in new ways.

“I’m definitely more open to change now than I was,” said Williams. “I hated to stare into a phone and give a talk but I kept hearing from employees, ‘Hey we want to see you, we want to hear from you.’ Now, I think I’m a better communicator.”

“All three of us have a lot of folks out on the frontlines, working in plants,” McMullian said to close out the session. “They need to know that they’re cared for, they need to know that they’re appreciated and they need to see action behind those words.”


 This CPG Speaks session was sponsored by SmartLabel.

Visit our website to learn more about CPG Speaks and to register for an upcoming session. CPG Speaks is complimentary for attendees, thanks to PwC and individual session sponsors. View this session in full here.