Summary
▪ While same store restaurant sales showed signs of recovery through Q3 2020, this slowed in Q4 as optimism for a post-pandemic recovery in the United States was tempered by surging COVID levels, a 2 nd wave of shutdowns, politically-delayed stimulus relief, faltering economic recovery, and early stumbles in vaccine distribution programs ▪ Instore dinning recovery, specifically independent operators, continue to lag national account and QSR segments who were able to pivot quickly to take out, delivery via digital infrastructure ▪ Overseas Manufacturing and Supply Chain challenges at the outset of 2021 are formidable − Limited availability and increasing costs for the critical raw materials required to make nitrile gloves − Unfavorable currency exchange rates are impacting manufacturer material acquisition and financial flexibility − Space on ocean container ships is limited and ocean freight will continue to trade at a premium in 2021 ▪ COVID has created fundamental changes in how businesses serve their customers on-premise, away-from- home − Customer expectations for safety and satisfaction are emerging and will remain in a post-COVID world, permanently increasing demand for gloves, PPE, safety and cleaning related supplies − Creativity and innovation – critical for any business, in any era – are now survival-essential as restaurants and service organizations figure ways to reconfigure and reinvent to sell through capacity restrictions, and ultimately, stay afloat Although we expect demand for foodservice disposables to continue to recover in the later part of 2021, we believe that the residual effects of the pandemic will continue to impact consumer confidence, global manufacturing production, and supply chain performance throughout 2021 and well-into 2022
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