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Coronavirus (COVID-19)
Customer Communication #5: Inventory Liability & Supply Chain
March 31, 2020

Dear Customer,

As the Coronavirus (COVID-19) situation continues to evolve, please be assured we’re taking all precautions to keep our employees, customers and business partners safe while producing quality products. As we deal with these unprecedented times a few questions have come up in relation to products and material supply.

As you know, the Food and Drug Administration (FDA) has advised that “currently there is no evidence of food or food packaging being associated with transmission of COVID-19.” In the event of a confirmed case of Coronavirus in one of our plants we will communicate the steps we have taken to mitigate risk while minimizing supply disruption. In accordance with FDA guidance, we believe there is no reason to hold or reject products as a result of a confirmed case of COVID-19 in one of our plants.

Furthermore, we have proactively communicated with all our ingredient and packaging suppliers and they have acknowledged the same commitment to continue operating in order to mitigate any supply disruption. Notwithstanding the foregoing, certain commodities and markets have signaled price increases which could impact the price of your finished goods. We are working hard to minimize price increases and will notify you in the event we need to source materials that will impact pricing.

In addition to receiving regular updates from our supply and logistics partners, we are continually monitoring our inventory, on-order supply levels, and factory output. We are working with our suppliers to understand their capacity, inventory, and factory/production activity, as well as engaging in sourcing alternatives. We are confident in the preparations we have made across our supplier and customer base and will inform you of any issues that arise as the situation evolves.

We appreciate your support as we continue to work through this trying time together.

Sincerely,

Jamie Better

Chief Executive Officer