AmerCareRoyal - Market Update Q1 2021

Key Points

▪ Until vaccines are thoroughly administered and consumer confidence improves, foodservice will be slow to recover during the first half of 2021. ▪ New modes of away-from-home dining and other activities are redefining customer expectations that will not change for the foreseeable future. ▪ The significant demand increase for gloves, PPE, take-out packaging, single use plastics and other supplies used to create and maintain clean and safe environments will continue beyond 2021. ▪ COVID-19 will continue to lengthen lead-times, challenge manufacturing, and potentially cause supply chain disruptions so it is critical to be proactive and plan accordingly. ▪ Product costs have increased due to supply/demand imbalance, raw material scarcities and other COVID related inefficiencies in both manufacturing and supply chains. ▪ The ocean freight market is tightening and likely impact supply chains, product costs and availability in 2021. National driver shortage stressed US trucking capacity prior to Coronavirus, and with pandemic demand driving surges in domestic freight tonnage, further testing of the industry is likely in 2021.

AmerCareRoyal Recommendations and Commitment to Customers

ACR continues to leverage its scale and unique relationships to manufacturers to maximize supply, seize available manufacturing capacity, and manage costs for our customers.

Allow your AmerCareRoyal representative work closely with you during these challenging times to discuss inventory status and substitution strategies when forecasting demand and planning orders.

Utilize www.amercareroyal.com for the most current market information, pricing and purchasing details.

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