Mondelēz International has reported 2.6% growth in net revenue to $6.7 billion during its first quarter, driven by strong demand from North America. Despite having beaten analysts’ estimates for its quarterly results, Mondelēz has withdrawn its full-year financial guidance for 2020, owing to limited visibility caused by the coronavirus pandemic. In its first quarter, the owner of Cadbury and Oreo witnessed a significant increase in demand for the company’s snacks in developed markets which helped to offset weakness in emerging markets. In North America, net sales grew by over 15%. Growth in Europe was less pronounced – up 1.3% year-over-year – but the region generated the largest amount of revenue overall, recording nearly $2.6 billion worth of sales. In emerging markets, net revenue was down 3.4%, with a notable decrease in sales of 9.3% in Latin America. This compares with the picture for 2019 when Mondelēz was boosted by the performance of its Asia, Middle East and Africa unit, with India and China seeing particularly strong revenue growth. “We had a strong first quarter, with record market share gains, and executed very well in challenging circumstances, thanks to the dedication and commitment of our colleagues, especially those on the front line, who are working tirelessly to provide food to consumers around the world,” said Dirk Van de Put, Mondelēz chairman and CEO. Van de Put added: “In the last month of the quarter, we saw a significant increase in consumer demand for our snacks in developed markets, particularly in North America, which more than offset a more challenging environment in several emerging markets. “Our priority at this time is to protect our colleagues and maintain business continuity in service of our customers and consumers around the world. “We remain confident that with our dedicated people, our portfolio of trusted global and taste-of-the-nation local brands, our strong balance sheet, access to significant liquidity and our clear strategic priorities, we have everything we need to manage through this pandemic and emerge stronger on the other side.”

US President Donald Trump has ordered meat-processing plants to stay open in a bid to protect the US food supply, despite concerns about Covid-19 outbreaks in the country.  The President received backlash from multiple unions voicing concerns that returning workers would face greater risk from the virus and require more protection.  Trump invoked an executive order under the Defense Protection Act to enforce plans to keep plants open. The order will give companies legal cover with liability protection should employees fall ill with the virus at work.  Major meat companies, including Smithfield Foods, Cargill, JBS USA and Tyson Foods had shut down operations in North America as a handful of workers fell sick with Covid-19 in March.  While plants initially remained open and continued to run with added safety measures, pressure from local health officials and unions resulted in many voluntary closures. This has in turn caused global concern of a meat shortage. Trump told reporters in the Oval Office that “such closures threaten the continued functioning of the national meat and poultry supply chain, undermining critical infrastructure during the national emergency”. The order, released on Tuesday 28 April stated that the closure of one large beef-processing plant could result in 10 million fewer servings of beef per day in the country. The news comes just days after Tyson Foods, one of the largest meat processors in the US, ran paid content on some national media platforms, declaring that the food supply was "broken".  While unable to comment on the order, spokesman for Tyson Foods, Gary Mickelson, told CNN: "We can tell you our top priority remains the safety (of) our team members and plant communities while we work to continue fulfilling our role of feeding families across the country."

PepsiCo reported strong results in its first quarter, as its three North American divisions saw positive impact on both net revenue and volume growth due to Covid-19. As a result of the coronavirus pandemic, PepsiCo has witnessed increased consumer demand, particularly in its food and snacks business. In the three months ending 21 March, PepsiCo reported net revenues of $13.88 billion, representing a 7.7% increase compared to last years results. The company’s food and snack business represented approximately 55% of its consolidated net revenue. While PepsiCo has benefited from an increase in at-home consumption, the company noted a decrease in immediate consumption and away-from-home channels which has negatively impacted its beverages business. PepsiCo Beverages North America and Frito-Lay North America – PepsiCo’s two largest divisions – both reported 7% growth in net revenue to $4.84 billion and $4.07 billion, respectively. Frito-Lay witnessed 5% volume growth driven by double-digit growth in its Cheetos and Tostitos brands and variety packs, partially offset by a decline in its Mexican tortilla chip Santitas. PepsiCo Beverages’ revenue, meanwhile, was driven by 14% volume increase in non-carbonates beverages with strong performance by its overall water portfolio, Gatorade sport drinks and Lipton ready-to-drink teas. However, the drinks unit's operating profit fell 24% reflecting the impact of certain charges as a result of the pandemic.  Within the Quaker Foods North America unit, net revenues increased 7% to $634 million driven by double-digit growth in oatmeal, ready-to-eat cereals and its Rice-a-Roni brand. In its Europe segment, its net revenue grew 14% to $1.84 billion supported by the $3.2bn acquisition of SodaStream due to an extra month of sales for the carbonated water machine maker.  “From community relief efforts to making, moving, and selling our products, PepsiCo employees around the world overcame immense challenges and disruptions. Our first quarter results reflect these efforts and the agility of our business which delivered high single-digit net revenue growth,” said PepsiCo Chairman and CEO, Ramon Laguarta. Laguarta added: “This gives us confidence that the investments behind our Faster, Stronger and Better framework are working - as we invest in our brands, supply chain and go-to-market systems, manufacturing capacity, capabilities and culture, and our society by integrating purpose into everything we do.” Despite a strong first quarter, PepsiCo, like Coca-Cola, also withdrew its 2020 guidance because of uncertainty in relation to Covid-19. Within its financial report, PepsiCo announced that it had closed its $3.85 billion acquisition of Rockstar Energy Beverages and signed a new distribution agreement with Vital Pharmaceuticals to become the exclusive distributor of Bang Energy beverages in the US. According to PepsiCo: "Together, these brands coupled with Mountain Dew, position PepsiCo to better participate and capture its fair share within an attractive and highly profitable category.”

The Cannabis Trades Association (CTA) has criticised the UK’s Food Standards Agency (FSA) for ‘failing to support’ the industry amid Covid-19, after the FSA declined to extend the deadline to present valid novel food applications. Earlier this year, the FSA announced a deadline of 31 March 2021 for businesses selling CBD products to submit valid novel food authorisation applications – warning that failure to do so in time would result in products being “taken off the shelves”. However, at the end of last month the CTA requested an extension of this requirement in light of Covid-19's impact upon the economy. In a statement to FoodBev , Michael Wight, head of food safety policy at the FSA, confirmed that the March 2021 deadline still applies and said: "Some initial applications are already being lodged and we’re continuing to support businesses on completing their applications during this time. "We understand that businesses are working in unprecedented times but we have no evidence to suggest that our position needs to be reviewed. Businesses still have 11 months in which to submit a valid application. As we made clear at the time of our announcement in February, businesses already had well over a year to progress their novel food applications. "We consider that the total of over two years until the deadline of 31 March 2021 is sufficient time to progress applications despite the current circumstances. "We encourage the CBD industry to put the safety of consumers first and develop the necessary evidence for consideration of CBD extracts as novel foods." The CTA refutes the FSA's assessment that Covid-19 does not justify reviewing the deadline: "We consider this demonstrably incorrect. Many of our members have had to furlough staff and in lockdown, business activities will clearly reduce. Staff in the laboratories and other ancillary industries will also be in lockdown and therefore capacity will be substantially reduced.” The trade association said that it considered the FSA’s verdict to be particularly unjust considering many of its members have reportedly pivoted their operations to aid the NHS and other healthcare businesses.  “A refusal to extend the deadline could see companies that have committed to this fight, potentially fail in the future when they do not have the time to fulfil the requirements for novel foods," said the CTA. In concluding, the CTA expressed its view that in any case the “majority” of CBD products in the UK market are unable to comply with the novel food regulations as, it says, they are manufactured from a natural ingredient rather than "a denatured and standardised one”.

Pernod Ricard has reported that its organic sales have fallen 14.5% during its third quarter due to Covid-19 impact, despite a solid start to the quarter. The French spirits maker posted sales of €1.74 billion in the three months to 31 March 2020, representing a 14.5% fall on a like-to-like basis. In March, the owner of Absolut vodka and Martell cognac warned of a 20% hit to its full year current operating profit due to Covid-19 going global. In its third-quarter results, the firm has confirmed this guidance of a 20% organic decline.  Over nine months, the company has witnessed its sales decline by 2.1%, reflecting a 11% drop in China sales and a 13% decrease in global travel retail. The global coronavirus crisis has caused on-trade closures, social distancing measures and restrictions around travel. This was offset by strong performance by Jameson, The Glenlivet, Malibu and its Specialty brands which posted a 13% rise in organic sales for the first nine months. These include the brands Lillet, Altos, Redbreast, Aberlour, Del Maguey and the recently fully-acquired Monkey 47. Alexandre Ricard, chairman and CEO of Pernod Ricard, said: “Performance in H1 through the start of Q3 was solid, thanks to the implementation of our Transform & Accelerate strategic plan. Since then, the Covid-19 pandemic has led to a significant deterioration of the environment across the globe. “We are staying the strategic course while implementing a comprehensive action plan to mitigate costs and tightly manage cash. Thanks to our solid fundamentals and strong liquidity position, I am confident in Pernod Ricard’s ability to bounce back from today’s challenges to achieve its growth potential.” While a €523 million share buy-back programme was completed in the financial year, Pernod Ricard has suspended its remaining share buy-back programme of up to €500 million.

Bacardi has appointed Amanda Almond to head up Iberia, while Vladimir Kazimirov will take over her role as managing director of the company’s UK business, effective from 1 May. For the last six years, Almond has served as managing director of Bacardi’s business in the UK and Ireland. During this time, the company claims she has ‘transformed the way it partners with the on-trade across its portfolio of brands’. Almond will utilise this experience as managing director of Bacardi Iberia, because opposite to the UK, on-trade reportedly represents 80% of spirits sales in Iberia. Almond added: “Like many markets in Europe, Spain has been hit hard by the crisis. My first priority is to keep our team safe and to help our friends in the trade who need it most. "It’s a strange way to leave the UK business but I’m incredibly proud of the team and everything we’ve achieved. Now it’s time for a new challenge and I’m excited to be moving to a market which is so different to the UK.” Meanwhile, Vladimir Kazimirov will now serve as managing director of Bacardi UK & Ireland. Prior to this, Kazimirov has held the position of general manager at Bacardi Russia for three years. Kazimirov joined Bacardi in Russia 15 years ago as a key account manager. He has since served as commercial director and general manager for the firm's Poland and Baltics business. “Some people may consider the market in Russia to be very different to the UK & Ireland, but fundamentally what delivers results in one will do the same in the other,” said Kazimirov. “Even in challenging times for our industry, with a passionate team, lots of creative ideas, and an agile approach to getting things done you can achieve exceptional results. We will do more than our share to help our industry get through this and return to growth.” Following the new appointments, both Almond and Kazimirov will report to Francis Debeuckelaere, regional president for Europe, Australia and New Zealand. As soon as travel restrictions allow and offices reopen, Almond will relocate from the UK to Barcelona and Kazimirov will relocate from Moscow to Winchester. In August last year, Bacardi appointed Tony Latham as chief financial officer and executive vice president.

Heineken has reported that its beer sales have been significantly impacted by the coronavirus outbreak, with global beer volume sales falling 14% in March. Heineken – which owns major beer brands including its namesake Heineken brand, Amstel and Sol – reported in its first-quarter results that beer volume for the quarter fell 2.1%, largely driven by declines in March across its global units. Beer volumes fell 13.8% in the Americas, Heineken's largest market, and declined 15.3% in Europe, 14.5% in Africa Middle East & Eastern Europe, and 10.6% in Asia Pacific during March. The company's profits were also significantly impacted by Covid-19, as reported net profit for the first three months of 2020 was €94 million, representing a 68% fall from the €299 million figure recorded in the same period last year. In Europe, Heineken's wholesale operations were significantly impacted as third-party volume declined 17.8% in the quarter and 49.2% in March, as on-trade outlets closed due to lockdown measures and social distancing orders in multiple countries. Despite falls across the company's complete beer portfolio, the Heineken brand actually experienced volume growth of 5% during the quarter. This was driven by a 24.5% increase in the Americas and double-digit in growth in Brazil, China, the UK and several other markets. Heineken estimates that the impact of coronavirus is expected to worsen in the second quarter of 2020, while the second half of the year is also expected to be impacted "as lockdowns may be lifted but the impact on the economy is likely to remain." Heineken's outgoing CEO Jean-François van Boxmeer – who is being succeeded by Dolf van den Brink on 1 June 2020 – said: "During the first quarter of 2020, the Covid-19 outbreak has evolved into a pandemic. By now, most countries where we operate have reacted by taking far-reaching containment measures such as restrictions of movement for populations and outlet closures, sometimes combined with the mandatory lockdown of production facilities. "Our performance for the first quarter reflects the initial impact of those measures, and volumes in March were obviously heavily affected. "Heineken has entered the crisis with strong brands and a strong balance sheet. In the past few weeks we have taken necessary measures to reduce our costs, secure additional financing and adapt to the fast changes we see in our markets. "I am proud of the leadership, the commitment and the courage of our teams and I fully trust their talent, creativity and energy to steer Heineken through this unprecedented situation and protect as well as develop our brands and businesses."

The Coca-Cola Company has announced that its global sales volumes have fallen 25% this month due to Covid-19 disruption, as the company reported flat Q1 revenues. The company – which owns major beverage brands including Coca-Cola, Sprite, VitaminWater and more – reported Q1 revenues of $8.6 billion, representing a fall of 1% when compared to the same period last year. In addition, the company's operating income declined marginally by 2% to $2.38 billion. Unit case volumes of sparkling soft drinks declined 2% in the quarter, while juice, dairy and plant-based beverages were down 6% and tea and coffee volume declined 6%. Coca-Cola had experienced a strong full year in 2019, and the company claims that at the end of February, the company was growing volume by approximately 3% – excluding China – and was on track to achieve its full-year 2020 targets. However, disruption due to Covid-19 in global markets from March significantly impacted sales, as social distancing measures and quarantine orders were put in place by governments around the world. Away-from-home channels typically account for half of Coca-Cola's total revenues, so the impact of temporary closures in the away-from-home sector far surpassed an initial rise in at-home purchasing due to stockpiling. The company anticipates that the continued reduction in away-from-home activity will have a "significant impact on second-quarter results". A statement in the company's quarterly earnings release said: "The ultimate impact on the second quarter and full year 2020 is unknown at this time, as it will depend heavily on the duration of social distancing and shelter-in-place mandates, as well as the substance and pace of macroeconomic recovery. However, the impact to the second quarter will be material." James Quincey, chairman and CEO of The Coca-Cola Company, added: "We sincerely thank those who have been working to keep all of us safe through the crisis, particularly those on the front lines in the healthcare community. I also want to recognise our system associates, who are ensuring we can continue to supply beverages around the world. "Our approach to navigating the pandemic is grounded in our company’s purpose, which ensures that we continuously strive to make a difference for people in the communities we serve around the world. "We’ve been through challenging times before as a company, and we believe we're well positioned to manage through and emerge stronger. The power of the Coca-Cola system is our greatest strength in times of crisis. The resilience of our people, the equity of our brands and the strength of our bottling partners continue to be competitive advantages in the market."

Yum China’s KFC chain has announced that it will sell plant-based fried chicken in China for the first time, according to Reuters. The nuggets will be available for a limited period, between 28-30 April from three outlets, one in Shanghai and the others in the southern cities of Guangzhou and Shenzhen.  The plant-based chicken will be supplied by US agribusiness Cargill, one of a number of meat processors to have entered the plant-based market. A post on KFC’s official Weibo account, cited by Reuters, said that customers who want to try the meat-free chicken must purchase a pre-sale coupon. One serving comprises five chicken pieces and will be sold for ¥1.99 ($0.28 approx.). KFC’s China business has been owned by Yum China since 2016, when Yum! Brands decided to let go of its China operation to form an independent company. The company's latest announcement was met with mixed reactions on Weibo, with some users of the Chinese social media site saying they hoped the new offering would be healthier, while others expressed scepticism that the plant-based chicken would be popular in China. Elsewhere, Yum! Brands’ KFC previously partnered with meat substitute company Beyond Meat to trial plant-based chicken at an outlet in Atlanta for one day. In January this year, it was announced that that trial was being expanded to new locations in Tennessee and North Carolina for a longer, three-week period.

Aldi UK has announced that it is selling groceries online for the first time, in the form of food parcels for vulnerable individuals and those who are self-isolating due to Covid-19. UK residents face ‘at least’ a further three weeks in lockdown, according to an announcement by acting prime minister Dominic Raab yesterday, and government guidance advises at-risk groups to be particularly stringent in following social distancing measures. With Aldi's new ambient food parcels, which are available via its website as of today, the retailer aims to help vulnerable customers gain easier access to essential supplies in a safe way. According to Aldi, the parcels retail at £24.99 inclusive of delivery and are limited to one per customer. Each parcel contains 22 products as standard, including hand wash, shelf-stable tins, toilet roll, tea, coffee and bread rolls. Fritz Walleczek, managing director for corporate responsibility at Aldi, said: “We are committed to providing quick, safe and affordable access to food for all our customers and understand that, for some, visiting one of our stores is not an option at the moment. “We’re constantly looking for new and better ways to support our customers in these uncertain times and I’m hopeful that these food parcels will make life a little easier for some of the country’s most at-risk people.” The move follows other initiatives from Aldi to support vulnerable groups amid Covid-19, including the introduction of reserved opening times in its supermarkets and a donation of £250,000 to Age UK in March. Over the past couple of months, many companies have taken steps to provide support and relief to those most affected by Covid-19. These have often taken the form of food and monetary donations, benefits for key workers, or new services designed to support the changing needs of customers amid the pandemic.

Since the outbreak of Covid-19, food and beverage companies have accelerated their efforts worldwide to provide support and relief to those most affected during the coronavirus pandemic.  In recent times, we have seen companies in all sectors of the global food and beverage industry make commitments to support those in need. This includes alcohol companies shifting production to hand sanitiser; fast food restaurants including KFC and Subway offering benefits to key workers; and companies throughout the industry making significant donations in relation to their size to support key workers, food charities and delivery services. From small brands to beverage giants, more and more companies are leveraging their capabilities through campaigns and putting their resources to good use. Major donations PepsiCo and The PepsiCo Foundation have allocated $45 million to a global Covid-19 initiative to go towards protective gear for healthcare workers, testing and screening services, and the distribution of more than 50 million nutritious meals to at-risk populations, in particular increasing access to nutrition for out-of-school children. Mars has committed $20 million to support the people, pets and communities most affected with donations going towards CARE, United Nation’s World Food Programme and Humane Society International. Meanwhile, Tetra Laval Group has donated €10 million to various voluntary organisations supporting the health care systems across the countries that it operates in. Food donations Many firms have been donating physical produce to food banks and non-profit organisations to countries around the world including Smithfield Foods (over 40 million servings of protein valued at $30 million, in addition to $3 million in cash), Hormel Foods (200,000 meals and $1 million pledge), McCain Foods (up to 20 million pounds of potato product) and Goya Foods (200,000 pounds of food). The Kraft Heinz Company has donated $12 million globally to a range of communities in the form of cash and food products including $6.6 million (valued donation) to Feeding America in support of food banks. Kellogg has increased its donation of food and funds to $5 million including thousands of boxes of cereal across the UK and Campbell Soup Company has contributed approximately $3.5 million to date to food organisations. Hospitality sector Elsewhere, Bacardi has launched the Raise Your Spirits initiative and committed $3 million to support bars and restaurants debilitated by the shutdown. AB InBev has raised €6m to date for restaurants, pubs and bars across Europe through donations, business support and 'prepaid pints'. Barefoot has made an initial $100,000 donation to Children of Restaurant Employees (CORE), which supports food and beverage employees and their families. Asian beer company Tiger, meanwhile, has launched its Support Our Streets initiative across Asia to help the hospitality sector. More than €950,000 has been pledged by Heineken Malaysia and Asia Pacific Breweries Singapore in the form of cash funds and vouchers that people can redeem at their favourite local food and beverage outlets once safe distancing measures are over. Deliveries Due to social isolating, many companies are offering delivery platforms. GetSwift has partnered with Feed The Need of Florida and Meals of Love, as well as the Florida Department of Elder Affairs (DOEA) and its restaurants partners to provide daily meal deliveries across Florida using its SaaS logistic platform. Research According to a report by Reuters, the Barilla family, which owns the pasta maker of the same name, has donated $500,000 to US non-profit association The Cure Alliance to fund research on a Covid-19 therapy based on stem cells; adding to its previous €2 million donation to health institutions in Italy. From dairy firms such as Maple Hill Creamery to plant-based brands such as This, every day, more and more companies are contributing to the same cause. Here at FoodBev, we’d like to say thank you.

BrewDog has launched a new alcohol-free beer in partnership with heavy metal band Lamb of God, marking the world’s ‘first’ non-alcoholic collaboration beer.  Ghost Walker features a ‘hop-forward flavour’ with less than 0.5% ABV, as BrewDog intends to provide a non-alcohol option that tastes just as good. The new IPA reportedly offers “tropical aromas harmonise with grassy, pine notes, all sitting on a solid malt baseline”. The non-alcoholic alternative is named after Lamb of God’s song “Ghost Walking” which was written by band vocalist Randy Blythe as he started his journey towards an alcohol- free lifestyle. Due to the postponing of the band’s European tour, Ghost Walker was alternatively launched alongside the video premier of the band’s performance of the song under the same name. Ghost Walker will expand BrewDog’s low- and no-alcohol beer portfolio which currently includes Punk AF, Hazy AF, Wake Up Call and Nanny State. "This collaboration is our most epic to date. It is also one of the most important, especially now,” said BrewDog co-founder James Watt. “BrewDog has always been focused on making other people as passionate about craft beer as we are, and that includes people who, like Randy, don't want alcohol in their beer. Our alcohol-free line of beers offers everyone an alcohol-free alternative for any occasion and we're thrilled to add Ghost Walker to the line-up." Ghost Walker is available on BrewDog’s online shop for shipping across the world and will be available at Lamb of God’s concerts later this year. Since the outbreak of coronavirus, BrewDog has opened 102 new virtual bars after UK pubs were forced to shut.