PENNSAUKEN, NJ — The shutdown of large segments of the US economy, including schools, stadiums, arenas, movie theaters, amusement parks and restaurants, is having a “material impact” on sales and operations at J&J Snack Foods Corp., the Pennsauken-based company said on March 23.
With the expansion of government shutdown orders in connection with the coronavirus (COVID-19), J&J Snack said two-thirds of its annual revenue of approximately $1.2 billion is to venues and locations that have shut down or heavily curtailed operations. The announcement comes 11 days after J&J Snack indicated that approximately one-third of its annual revenue would be primarily impacted.
Although the balance of its business may improve due to increased sales to grocery stores and other retailers, J&J Snack said it expects the overall impact to be “decidedly negative.”
“As CDC guidelines issued over the past week along with restrictions imposed by government authorities have served to decrease peoples’ interactions hoping to reduce the spread of the virus, the impact on our business has increased ,” said Gerald B. Shreiber, president and chief executive officer of J&J Snack. “We have and are continuing to develop contingency plans to address and lessen the impact of the effects of the coronavirus on our employees, our customers and our overall business. Our overriding hope, though, is that the efforts to contain the virus are successful both in this country and throughout the world.”
J&J Snack Foods, which offers products such as Superpretzel, Icee and Slush Puppie, said it was unable to estimate how big the impact will be on company sales. Companywide, J&J Snack Foods reported net sales of $1.19 billion in fiscal year 2019.