Market Update

Effects of COVID on the Market - May 2020

Dear Valued Customers,

As we all continue to navigate thru these challenging times, Foodlinx would like to thank you for your support. Our staff has continued to strive to meet these challenges, while working in an unconventional work environment. We will continue to face these challenges head-on and maintain our commitment to you!

As an ongoing update, we would like to share some information with you. Lately, our Media and Politicians talk about protein plant closures and short supply, with these often leading the news cycle. Yes, plants have temporarily closed due to the virus. While these may lead to some market disruptions, the geographic diversity of this industry, means that product of many types will continue to be available. Shortages and/or increased demand do lead to price increases which we are currently experiencing. The protein markets are fluid and changing daily.

Moreover, Foodlinx response is and always has been twofold. First, we are a distribution company that has product arriving weekly to take care of your needs. Our suppliers expect us to buy from them regularly which we have done since the company was started. Second, while we have strategic supply partners, we have always sought and maintained additional supply sources. As we face challenges in this current crisis, we are doing everything possible to keep you supplied. These efforts are ongoing. Rest assured we are seeking the quality products that you are used to. We will also keep you informed of any product changes, price advances and give you options whenever we can.

In regard to retail consumer ready food products, the challenge has been ongoing. While we haven’t heard much about plant closures in this segment, we are facing other issues. As you know, in the initial phase of this crisis, local consumers cleaned retail shelves bare. Since then retailers, supply chain and manufacturers have tried to keep up with the monumental task of restocking. The result has been product rationalization by the manufacturer. In short, manufacturers are concentrating on the 20% of products that make up 80% of sales. As we all know too well recently, this leads to shorts and out-of-stock on the remaining products. We hope this is resolved soon, and we can return to high service levels you have always equated to Foodlinx. In the meantime, our Sales Team, will keep you informed about shortages, and space available, in order to find additional product to maximize your containers.

As stated in the past, our primary goal during these challenging times is to keep our customers informed of the market conditions and product availability. While there are times that this crisis creates unforeseen situations, we have trust in our vendors. The supply chain will adjust and be stronger for it in the future.

We always look forward to your feedback. It is important for us to know how we are doing. We want to hear your concerns or frustrations and will do everything possible to resolve any issue within our power. Please don’t hesitate to contact anyone in Foodlinx to address your concerns.

Once again, from the entire Foodlinx team, we thank you for your continued support! We are committed to providing the best possible service we can during these challenging times. If we can assist you in any way, please do not hesitate to contact us.

– The Foodlinx Team