Food safety, traceability and sustainability blog



Friday Round-up (6/5/20): Grocery sales hit another record-breaking month

Every week FoodLogiQ will be aggregating the latest updates and resources for food businesses navigating the coronavirus disease 2019 (COVID-19) pandemic. Learn how the industry is adapting to protect and feed consumers while building resilience in the face of global crisis.

Before we dive into our weekly COVID roundup, we wanted to take a minute to acknowledge the pain being felt around the world related to the racism, violence and inequality affecting Black lives today. This week we devoted our weekly CEO Standup to come together and openly discuss the issues. As a company, we cried, we listened, we learned.  We stand with the Black community, our team members, customers and partners. 

With the onset of COVID-19 and families at home quarantined, it’s no surprise that food and non-alcoholic beverages sales are high this year. While many store shelves are bare of cleaning products and toilet paper, they are also vacant of canned goods, items with longer shelf life such as pasta and frozen foods, and other pantry staples like flour and comfort food. According to Euromonitor International, this sector is the only one projected to post positive results in 2020 with slightly more than 2% growth, which is just below 2019 stats.

Online grocery sales have contributed to this spike in growth. According to the Grocery Survey from Brick Meets Click/Mercatus, May online grocery sales increased 24% from the previous month, reaching $6.6 billion. In a recent press release, Sylvain Perrier, president and CEO of Mercatus, stated, “COVID-19 has accelerated online grocery adoption at a rate the industry hadn’t expected to see for years. The online surge may level off slightly as various states strive to return to ‘normal.’ However, what has changed in shoppers’ eyes is the realization of the immediate benefits of online grocery shopping.”

Consumers have also rediscovered grocery store ‘center aisle’ foods again. Items like beans and tuna, which provide protein that some may be lacking due to meat shortages, has seen a resurgence as of late. With the value and ease of preparation these foods offer, along with being more affordable for those on limited budgets, these shelf-stable items have seen a dramatic increase in sales. In fact, Food Dive shared Nielsen data that showed over the last nine weeks, beans sales grew 81.1%, canned and pouch tuna increased 75.6% and rice sales have gone up 84.5%.

According to a recent survey from American Frozen Food Institute, frozen food sales also grew 70% since March, bringing the total to $15.5 billion during the 11 weeks ending May 16; this is a 40.2% change from the same period a year ago. This could also be due to increasing meat prices and the need for comfort foods like snacks and ice cream during the pandemic. shared Nielsen data showing that, with so much frozen food being purchased, consumers have needed space to store it all, causing freezer sales to increase by 195% from the same period last year.

While some companies are thriving during this time, others have had to be more creative, expanding the creation of new revenue streams. For example, one FoodLogiQ customer — a beef processor/distributor who sells premium cuts of beef to high-end restaurants and large-scale distributors — knew they needed to created new income opportunities if they wanted to survive the financial hardships caused by the worldwide coronavirus pandemic. With the demand for high-end steaks at a standstill and a shortage of meat in retail grocery stores, they temporarily changed their focus to ground beef production, which they now sell directly to a variety of retailers. The company’s ability to pivot and to pursue a new and different product offering became a game-changer and helped the organization maintain revenue, protect employees and weather the COVID-19 storm. 

Being nimble is a key factor in business success, and technology can help enable that flexibility. SupplyChainDive shared insights from a recent webinar with Forrester and Ivalua explaining how companies that make wise use of technology are better equipped to navigate current and future economic uncertainty and manage potential disruptions that may pose additional business risks. According to Forrester, firms should invest in software solutions that allow for real-time, more centralized collaboration and information-sharing, internally among procurement teams, as well as externally with supply chain partners.

To learn how FoodLogiQ can help you gain insight into your supply chain through technology, visit us at


Please view FoodLogiQ's COVID-19 Food Industry Resource Center for industry-specific updates, resources and information.

If your business is in need of operational guidance for navigating the COVID-19 pandemic, download our E-Book to learn how FoodLogiQ Customers are minimizing risks, or watch the corresponding on-demand webinar here.

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Posted by Julie Brown on Jun 5, 2020 10:19:51 AM

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