COVID-19 causes a bankruptcy; consumers look for moments of fun

From recognizing the importance of small moments of fun to donating services to help consumers, companies are finding ways to respond in the crisis.

The following are some recent COVID-19-reated news items on how companies are responding to the crisis.

Americold

Americold Realty Trust, owner and operator of temperature-controlled warehouses, is partnering with Feed the Children to help alleviate child hunger during the pandemic.

Americold has been offering free access to temperature-controlled transportation services to deliver cold food. Earlier this month, Americold trucked more than 84,400 pounds of milk and dairy products donated in Texas to Leola, Pa., to a Feed the Children community partner, according to a news release.

"In these uncertain times, we recognize the many challenges communities across the country are facing," Fred Boehler, president and CEO of Americold, said in the release. "We are proud to support Feed the Children in their efforts to provide for families experiencing food insecurity.”

Americold also donated $100,000 to the feeding organization, for COVID-19 relief in April.

"This crisis has put a strain on our resources and the resources of our partners,” Travis Arnold, president and CEO of Feed the Children, said in the release. “However, through our amazing partnership with Americold we can support America's most vulnerable during this crippling pandemic."

Frieda’s Specialty Produce

Frieda’s Specialty Produce, Los Alamitos, Calif., commissioned consumer research to help retailers predict shopper behavior this summer in light of the pandemic.

The May survey shows that 56% of consumers plan to vacation less, and are less excited about summer because of social distancing, according to a news release.

“Based on our research, we predict that consumers will be looking for small moments of fun and escape, as the new normal takes hold,” Cindy Sherman, director of marketing, said in the release. “We like to call these #microescapes. You may not be able to go on vacation, or even out to dinner, but you can turn an afternoon in the backyard into a Polynesian escape with a fresh coconut.”

Consumer tend to put off large expenses such as a car during economic downturns, according to the release, but will make small splurges, such as a latte or smoothie. Grilling and picnicking will be increasing in popularity.

That means variety in the retail aisle will be important, and a treasure-hunt mentality will be strong this summer, according to the release, as consumers look for ways to make their picnics special.

Shishito peppers and jackfruit pods will be popular, and although retailers won’t be able to offer samples to shoppers, they can highlight specialties with signs.

Tropicals are another way to cater to consumers in the pandemic, as they look for new items to feature on fruit and cheese platters, according to the release.

Gold Coast Packing

Gold Coast Packing, Santa Maria, Calif., has partnered with its sister company Costa de Oro winery, to offer Central Coast residents produce boxes.

Since mid-March, Gold Coast has sold more than 600 boxes containing about 6,000 pounds of fresh produce, according to a news release. The $18 boxes contain a variety of vegetables, including salads, spinach, cauliflower and broccoli florets, Brussels sprouts, broccoli slaw and cilantro.

“We created this produce box to offer our community a convenient and easy way to get fresh produce essentials without going to the grocery store,” Crystal Chavez, marketing coordinator, said in the release. “When shelter-in-place orders were issued, we saw people were uncomfortable getting out and were looking for delivery or pickup options with minimal contact.”

Gold Coast will continue to offer the boxes while demand remains high. To place an order, call 805-922-1468 no later than Wednesday. Pick-up is 2-6 p.m. Fridays and Saturdays.

IFCO

IFCO is donating 600 reusable plastic containers to Meals on Wheels People, which can use them to pack and transport nearly 8,000 meals a day in the Portland-Vancouver metro area.

Since the pandemic started, Meals on Wheels People saw daily meal production go from 5,000 to 8,000, with deliveries made just 1 day a week, according to CEO Suzanne Washington.

“The containers from IFCO will allow us to safely pack meals for transportation by our volunteers,” Washington said in a news release. “The new containers are great for transporting cold and frozen items, and they nest well, hold more product and can be washed daily. We are extremely grateful to IFCO for donating the RPCs.”

IFCO has a strong commitment to fighting hunger and food insecurity in the U.S. and across the globe, Dan Martin, president of IFCO North America, said.

“Now, more than ever, we want to step up and help our friends at Meals on Wheels People get more food to more people during this terrible crisis,” Martin said in the release.

IFCO previously donated RPCS to Meals on Wheels People for use in Meals 4 Kids, a program in Portland, Ore.

LATAM Airlines Group

LATAM Airlines Group S.A., an air cargo company, has filed for Chapter 11 bankruptcy protection in the U.S.

The company’s affiliates in Chile, Peru, Colombia, Ecuador and the U.S. are included, but not the ones in Argentina, Brazil and Paraguay, according to a news release.

LATAM Airlines Group will transform its business to maintain a leading position in Latin American aviation in the “post-COVID-19 era,” according to the release.

“In light of the effects of COVID-19 on the worldwide aviation industry, this reorganization process provides LATAM with an opportunity to work with the group’s creditors and other stakeholders to reduce its debt, access new sources of financing and continue operating, while enabling the group to transform its business to this new reality,” according to the release.

CEO Roberto Alvo said when the pandemic first hit, the company was profitable, but the exceptional circumstances led to a collapse in global demand, bringing aviation to a standstill and changing the industry for the foreseeable future.

“We have implemented a series of difficult measures to mitigate the impact of this unprecedented industry disruption, but ultimately this path represents the best option to lay the right foundation for the future of our airline group,” Alvo said in the release.

For more stories on how companies are changing during the pandemic, see The Packer's COVID-19 webpage.

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