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Universal Robina Corp.'s instant coffee and noodles are flying off grocery shelves in the Philippines, but the lockdown in the main Luzon island is disrupting supply chains and limiting its ability to meet orders.
The company's CEO Irwin Lee described the last few weeks as “frenetic” for the JG Summit Holdings Inc.'s unit, which has had to adapt to a surge in demand for basic food and drinks, while adjusting its operations to comply with quarantine measures imposed from mid-March.
“Overnight, people want twice the number of noodles as they did a week ago. It's very difficult to deal with,” Lee said in a live-streamed panel discussion with members of the the Management Association of the Philippines. Demand for “impulse” products like candies and bottled drinks has fallen, he said.
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While food producers are exempted from the lockdown, checkpoints have stalled the delivery of raw materials, while workers found it difficult to get to factories as public transport has been suspended. Universal Robina has had to lease shuttle buses to pick up employees and provide lodging and meals for those staying onsite, the CEO said.
The company controlled by the family of the late John Gokongwei plans to innovate certain products as the lockdown heightened awareness for health and wellness, while consumers are expected to do less frequent trips to the groceries but with bigger carts once the quarantine ends. It has retained all its workers and supported suppliers so it can bounce back quickly once things return to normal, Lee said.
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