A&B Ingredients On Managing COVID-19 Related Supply Chain Risks and Global Disruptions

Industrial port with containers

Fairfield, NJ, October 7, 2021 - Recent global events have negatively affected the food industry and the food supply chain in various capacities. Members of the food and beverage industry have experienced challenges with raw material procurement in the past several months. These challenges have been compounded by COVID-19 lockdowns, climate disasters, staffing and logistics challenges, spiking demands, and other factors. Climate change and droughts in Canada and Europe, port closures in China, container shortages, and factory shutdowns in parts of the US and Asia are some of the unfortunate disruptions causing the global and local shortages of ingredients.

As a result of these interruptions, food manufacturers have been hit with soaring ingredient costs, shipping delays, and insufficient stocks. All these create uncertainty across the global and local supply chains, with distinctive challenges for food manufacturers, processors, distributors, retailers, and consumers.

A&B Ingredients, a leader in providing unique and functional ingredient solutions to the food and beverage industry, asserts that, amid recent supply chain disruptions and other factors, it remains well-equipped to meet its customers' needs without delays and interruptions.

"I am very pleased with how our team is navigating the rapidly changing business environment amid the COVID-19 pandemic and other global events. Our operational flexibility, speed to adapt to challenges, and strong relationships with our partners allow us to react quickly and pivot to the changing business conditions. Looking ahead to 2022 and beyond, we are excited to continue our strong growth trajectory and deliver long-term value to our customers amid challenging times," said Gil Bakal, Managing Director at A&B Ingredients.

A&B Ingredients wants to assure its customers that it is proactively addressing these supply challenges through a robust risk-mitigating strategy which allows the company to abate product shortages and adapt to short-term and long-term impacts of the pandemic. The team has created formulation alternatives where possible, improved the logistics supply chain to help mitigate soaring ocean freight prices, and implemented backup manufacturing options wherever possible. The management team doesn't foresee any interruptions in the supply of its products to the customers.

"The global supply chain interruptions are affecting many businesses in the food and beverage industry. We monitor the situation closely and have an agile plan in place to mitigate any risks in our supply chain. We are confident that we can meet our commercial obligations to our customers and partners and continue to facilitate their growth. Our North American manufacturing facility is equipped to meet increased demand for the products we supply," noted Bakal.

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