Like many food manufacturers, spices, seasonings, and condiments maker McCormick & Company has faced an array of production challenges during the COVID-19 pandemic, including a sustained uptick in demand and the implementation of new health and safety-oriented procedures in its facilities.
During the company’s Q2 2020 earnings call on June 25, the company said it has been working to expand its manufacturing capacity and production workforce in a bid to tackle some of the issues presented by the novel coronavirus outbreak.
“Our manufacturing capacity became a pressure point. So, we’ve taken steps to add workforce. We have optimized schedules. And really, by the fourth quarter, we’ll either be 24/7 or 24/5 at all of our facilities, not just in the US, but around the world,” said the firm’s chief executive officer, president, and chairman Lawrence Kurzius.
In addition to adding personnel and changing the times they work, the company said it also made some short-term investments in its blending capacity and partnered with some new comanufacturers in response to the increased demand.
“By the end of the year, we will have added the equivalent of an additional plant of US manufacturing capacity,” Kurzius said. “We have already passed the low points in our ability to meet demand and our service levels are improving weekly.”
The CEO said that McCormick has focused its capital investments on boosting its capacity and capabilities in Asia, but the company will shift its resources this year to facilities in Western Europe and the US.