Getting sauced: Ketchup makers increasing production to meet pandemic demand

The long national nightmare is nearly over — not the pandemic, but the ketchup packet shortage.

Leading ketchup makers say they have made significant changes to keep up with the demand for the packets, which surged when eateries switched to mostly takeout and delivery services during coronavirus shutdowns and restrictions.

An increased flow of complimentary condiments can’t come soon enough for some restaurants across the country and around the D.C. area.

In Chicago, Audrey Cologne, manager of Lou Mitchell’s restaurant, said she has had trouble ordering the usual 14-ounce squeeze bottles of ketchup. She said she had to order larger bottles from her supplier because of a manufacturing issue.

“We have to think twice before giving customers another packet of ketchup,” said Monica Zakaria, manager of Van Dorn Diner in Alexandria, Virginia.

Kraft Heinz has made manufacturing investments to keep up with the “surge in demand for ketchup packets driven by the accelerated delivery and takeout trends,” company President Steve Cornell said.

The production lines added for food service products will increase supply by 25% for a total of 12 billion ketchup packets each year, the company said.

“If you think about the next few weeks in the summer months, we will be able to be fully supplied for all of the demand needs for a particular Heinz ketchup,” Carlos Abrams-Rivera, Kraft Heinz’s U.S. zone president, told Yahoo Finance Live.

ConAgra Brands, the owner of Hunt’s Ketchup, said its packet volume is up about 75% to 80% year over year, and sales have nearly doubled.

“It’s been one of our best-selling food service products during the pandemic. We have been able to secure extra capacity from our co-manufacturing partner to meet the demand,” ConAgra Brands told The Washington Times. “The demand for ketchup packets has skyrocketed as delivery and takeout are at an all-time high.”

Kraft Heinz told The Times that it noticed early during the pandemic a “shift in demand” to restaurants with drive-thru and delivery options and prioritized production of products with the greatest demand in retail and food service.

“That said, demand was greater than supply,” the company said.

Gum Tong, the owner of Pete’s Diner in the District of Columbia, said she has not been able to get ketchup every time she stocks up on supplies each week. She said she might be able to get ketchup every other week because of a “little shortage” of the condiment on the market.

In line with health guidance, sit-down restaurants shut down or limited their dine-in services after the COVID-19 pandemic began and switched to delivery and takeout options. That put them in competition with fast-food restaurants for packaged condiments.

Although some diners expressed some difficulty with getting ketchup packets, others say they are having no problem.

Peter Piciurrio, manager of Miss Katie’s Diner in Milwaukee, Wisconsin, said he has had no trouble but his supplier advised him to order early to have enough ketchup to last through the summer.

Five Guys and Chick-fil-A also said they are not experiencing ketchup shortages.

“All of our locations nationwide are fully stocked and supplied with ketchup packets and other condiments,” said Brent Wright, director of the supply chain for Five Guys. “Currently, Five Guys does not have any issues getting sauce packets at the store level.”

Although Chick-fil-A has enough ketchup, it said it is finding a shortage of dipping sauces.

“Due to industry-wide supply chain disruptions, some Chick-fil-A restaurants are experiencing a shortage of select items, like sauces. We are actively working to make adjustments to solve this issue quickly and apologize to our guests for any inconvenience,” the fast-food chain said in a statement.

An email to customers from one Chick-fil-A restaurant told them the restaurant would be limiting one sauce per entree, two sauces per meal and three sauces per 30-count nuggets, “The MoCo Show” reported last week.

However, customers at many Chick-fil-A restaurants are receiving only one dipping sauce cup per entree.