Food Companies Adjust to Operating With Coronavirus Costs

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Food-processing companies have invested heavily in on-site testing, plexiglass dividers, masks and special bonuses for front-line employees, expenditures necessary to stay in operation

By Kristin Broughton Close Kristin Broughton and Nina Trentmann Close Nina Trentmann June 7, 2020 9:00 am ET Food-processing companies have spent millions of dollars on testing and safety to stay in operation during the pandemic. Now they are looking to the next phase: figuring out how much of that spending is here to stay and how to get higher production in a new reality.

Newsletter Sign-up CFO Journal The Morning Ledger provides daily news and insights on corporate finance from the CFO Journal team. Still, Hormel, which is best known for producing Spam, turkeys and bacon, expects to spend as much as $80 million on such changes in the second half of the year. Profit declined almost 10% to $227.7 million in the quarter ended April 26, due in part to lower demand from food-service companies and plant disruptions, the company said.

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