“The pandemic taught consumers to invest in bulk buying,” a Cargill Protein executive tells CNBC, and frozen food has emerged as one of Americans’ favorite things to stockpile. According to the American Frozen Food Institute, frozen product sales topped $72 billion in the U.S. last year, and the category is expected to continue growing. However, the increased demand is straining the complex cold storage supply chain, which is to blame for about 13% of global food loss. Logistics experts maintain the industry would benefit from new players and technological innovations that would improve efficiency.
By Melissa Cantor, Editor at LinkedIn News
Americans love frozen food.
Virtually all American households purchase frozen food at least once a year, but without resilient cold storage supply chain infrastructure, the growth and safety of the massive $265 billion global frozen food market may be put at risk.
“Consumers are buying more frozen products. It’s going to require more storage capability and a more efficient supply chain,” Brian Choi, CEO and managing partner of The Food Institute, told CNBC.
In 2022, frozen food sales in the U.S. reached more than $72 billion, according to the American Frozen Food Institute.
“We’re seeing that growth continue,” Alison Bodor, CEO of the American Frozen Food Institute, told CNBC.
During the coronavirus lockdowns in 2020, frozen food sales reached more than $65 billion, according to the institute.
“The pandemic taught consumers to invest in bulk buying,” Sonia Punwani, chief marketing officer of Cargill Protein North America, told CNBC. “Frozen foods were some of the bestselling items during the pandemic since they can be really stored for long periods of time.”
Approximately 13% of all food produced globally is lost due to poor cold storage supply chains every year, according to a study from Columbia University’s Climate School.
“In the world of cooling refrigeration, we’re still depending upon a more than century-old mechanical incumbent,” Tony Atti, CEO of Phononic, a solid-state cooling company, told CNBC.
Phononic aims to minimize food waste. One of its products is a temp-sensitive refrigerator tote that allows shippers to spend less getting food to e-grocers and grocery stores. Phononic is one of CNBC’s 2023 Disruptor 50 companies, marking its fourth time on the annual list.
Also on CNBC’s 2023 Disruptor 50 list is Lineage Logistics, a company on a mission to make the food supply chain more efficient.
“We’re helping to move food through the entire cold chain and ensuring that it keeps a safe temperature the entire way,” said Jeff Rivera, COO of Lineage Logistics.
The Michigan-based company has grown to more than 430 locations across 20 countries, offering a global network of temperature-controlled cold storage facilities for food products and several facilities “blast freeze” millions of pounds of product a day with warehouse racks specifically designed for efficiency.
BY: Andrea Miller, CNBC
☃️ The Importance of #Cold_Storage_Warehouses
Cold storage warehouses are used to store perishable items, such as fruits, vegetables, meat, seafood, and dairy products, at a desired temperature to maintain the quality of the product for a long time.
Cold storage plays a critical part in the supply chain that ships groceries, medicines, and other temperature-sensitive products. A high initial investment is required to set up a cold storage unit.
Cold storage requires facilities, such as a dock-to-stock process (using temperature control docks to move inventory quickly and safely), systems to control humidity and moisture, calculating guaranteed inventory counts, and contingency plans in case of any disaster.
Cold storage warehouses can be in a variety of places. A manufacturer may have a private cold or refrigeration storage facility to warehouse products before sending them to end consumers. However, if you’re planning to have durable warehouse flooring, contact an expert to check your space.
With the expansion of the logistics industry, the need for cold storage warehouses has increased. This has triggered the need for optimum management of cold storage warehouses and even small refrigerated trailers. A refrigerator repair technician should come in every now and then to maintain the functionality and efficiency of your refrigeration equipment.
Some tips that are used by top-class warehouses:
🔹Since cold storage is all about temperature, it is important to monitor the temperature changes periodically.
🔹People entering any cold storage warehouse must have suitable equipment.
🔹Use of the latest technology such as robotics, IoT, and e-commerce enhances the performance of the cold storage warehouse.
🔹Warehouses are big enough to cause confusion in numbers because tonnes of stock are exchanged daily. This makes it crucial to maintain the stock records carefully.
The major growth factor in the cold-storage warehouses market is the rapidly increasing online grocery purchasing trend across the globe.
The prime factor driving the demand for cold-storage warehouses is the high growth in spending on shelf-stable foods. Furthermore, the growing demand for organized retail and increasing preservation of convenience food products owing to modernization is encouraging many end users to decide on this system which is also heightening the overall demand for cold-storage warehouses market over the forecast period.
📌 #Benefits of a cold storage warehouse:
🔹Prevents damaging of products
🔹Generates employment
🔹Increases efficiency
🔹Eases supply chain logistics