PMA Foodservice: Delivered session offers glimpse of life post-coronavirus

Date: 
Thursday, 23 July 2020 - 8:17am

pmafoodFrom the U.S. perspective, reports of the foodservice situation from several produce suppliers in Pacific Rim countries appeared to be wishful thinking but, in fact, it was a realistic look at how quickly restaurant business has come back in countries that have successfully quelled the novel coronavirus.

In the Produce Marketing Association Foodservice: Delivered digital session titled “Emerging Global Trends and their Impact on Foodservice,” representatives from New Zealand, Australia and Singapore looked at the impact the pandemic has had from a rearview mirror perspective. Though COVID-19 has not totally exited those countries, it has been dealt with successfully enough that restaurants are largely open, and life is proceeding somewhat normally.

Moderator Darren Keating, who is CEO of PMA’s Australia/New Zeland office, led panelists Steve Kent of New Zealand’s Bidfood Limited, Gary Loh of Singapore’s Dimuto PTE Ltd. and Michael Simonetta of Perfection Fresh Australia through a review of their operations both during the pandemic and now in what has become its aftermath in their respective countries.

Prior to the questioning, Keating noted that several trends that already existed prior to Covid appear to have been accelerated by the worldwide pandemic. Topping this list, he said, was the collective consumers’ desire to eat healthy. He also noted that consumption patterns (where and how we eat), technology and lifestyle changes were all trends in the background that informed foodservice consumption prior to this crisis that have now moved closer to the forefront.

Kent, a wholesale food distributor, said New Zealand approached the coronavirus very seriously with a full lockdown on March 25 that distributors only had two days in which to prepare. He said a major portion of the company’s customers had to change their businesses overnight, and Bidford had to do the same thing.

But he said those companies did pivot and while in the lockdown there was a lot of communication between suppliers and their customers. Five weeks later (late April), New Zealand began reopening. Kent said the relatively short duration of the lockdown allowed companies to survive and restaurants to begin full operations again.

Though 40 percent of New Zealand’s GDP comes from tourists, who are still banned from entering the country, Kent said the pent-up demand for eating out from local customers has kept the restaurants full. He said the food industry has proved to be “remarkably resilient and surprisingly so.”

Simonetta reported a similar situation in Australia, though that country is still dealing with some Covid flareups, especially in the state of Victoria. He called the early period of lockdown a “very scary time” as overnight some commodities saw significant drops in demand and businesses had to shut their doors. But he said the retail sector took up the slack in produce sales and the foodservice industry quickly pivoted to delivery and pickup virtually overnight.

“The impact wasn’t as bad as I first thought,” Simonetta said, adding that since the general lockdown was lifted restaurants have rebounded very quickly.

He said secondary produce wholesalers survived by pivoting to delivery of food boxes to homes.

Loh, who runs a foodservice data company, reported that the foodservice situation is somewhat unique in Singapore as “we have an eating out culture” and “everything (95 percent) is imported.”

Initially, people had to significantly adjust their lifestyles and importers had to scramble to find supplies. He said Singapore reopened in June and the foodservice sector is still finding its way. He noted that the top-tier restaurants as well as the well-known local street fare operations – hawker food centers -- have come roaring back. “It’s the middle segment that is feeling the pinch.”

Loh said the supply chain proved to be even more important with Singapore importers finding new sources of supply. He said new suppliers from many countries, including Colombia and Ecuador, were aggressive and stepped up their programs. He added that avocados from Kenya surfaced for the first time in his memory.

Speaking of his own company, Simonetta said, “We are not back to pre-Covid sales, but we are on the way back.” He noted that some of the company’s customers, including airlines and other tourist-related businesses, are still in lock down.

Simonetta also spoke of some changes that have occurred because of Covid. Prior to the pandemic, it was said that the “consumer’s quest for convenience knows no bounds.” That concept, he said “is on hiatus, but it will return.” He also mentioned that packaging and plastic “are back in vogue” as consumers appear to be willing to sacrifice sustainability for health security during these trying times.

Kent made the same observation, noting that he was surprised to see that the trend to reduce packaging is currently off the menu. Keating observed that sustainability has long been an overarching trend. “It will be interesting to see if it comes back.”

The three panelists did share a couple of other trends that have emerged post-Covid. Loh said that the use of computer tracking via QR codes is part of life in Singapore but it has picked up tremendously because of Covid. Consumers want information, he said, and apparently they are willing to scan their own location for safety. He also noted that while Singapore imports almost all of its food, the government has announced a “30 by ’30 initiative” designed to have the small country produce 30 percent of its food supply by 2030.

Kent said New Zeland is also looking inward with a greater emphasis on locally made products. He said that is a trend coming out of the coronavirus “that I would like to see us hold on to.”

Simonetta said that companies working together more collaboratively has been a great benefit from this situation and he would like to see that continue. He also said that companies large and small have learned how to run a business virtually. He said the efficiencies gained from that approach should last beyond the current crisis.

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About D. Otani Produce

In business since 1989, D. Otani Produce, Inc. has grown into one of Hawaii’s largest produce wholesalers, enjoying business with hotels, restaurants, local business institutions. We are also a major distributor to Hawaii’s retailers.

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