US food manufacturers spend more on raw materials to maintain stocks

Accumulating money during a pandemic may seem prudent, but American packaged food companies are finding it better to stock up on things they can sell. Companies are spending more on raw materials like oats and sugar, so they can maintain production if supply lines are interrupted or imports are interrupted. Campbell Soup Co., a maker of Goldfish biscuits and pacific broths, is buying more ingredients amid a boom in demand for basic pantry products. Bobo's, a Boulder, Colorado-based producer of snack bars and sweets for toasters, stocked organic oats, sugar and coconut oil, CEO TJ McIntyre said in an interview. “We just wanted to have an insurance plan for our business. If we ran out of oats, we would be in trouble, ”he said. "In a first-time situation like this pandemic, there are many questions that we cannot answer." Currently, your company is buying about 50% more of its main ingredients. This allows an extra 90 days to resolve possible supply chain hiccups. Strategy change ...