Continued on p. 30 April 2016 SPRAY 19 ordering trend to soon spread to more northern states. Spectrum Brands has received requests from retail partners to move up orders so that stores will be stocked earlier in the season, according to Eric Kenney. It has also secured commitments from its suppliers to be able to meet increased demand if it arises. Supplier support SPRAY spoke to several companies across the supply chain to ascertain how they are handling the increase in marketer demand for insect repellent filling and components. George Buckland, VP of Sales & Marketing for the North America Aerosol Division of Crown Cork & Seal USA, Inc., commented: This is an important issue that affects not just North and South America, but anywhere people have concerns about the mosquito population. In the past few months, the coordinated effort across the entire supply chain to make this happen, so that the end-use marketer can donate 10,000 units or even just put product out in retail or big box stores shelves, is significant. We come from the can perspective, but I’m sure the valve, propellant, cap, corrugated and even freight organizations have all been pushed very hard to hit these large spike numbers. We’re talking about added shifts, weekends and end-use components going out of U.S. plants to Latin American plants. More personnel hours, line allocations, excess capacities, location allocations, through-put percentages, capacities per line, shifting work around from plant to plant to be closer to the filling locale…this has touched every avenue of our business. The production spike related to Zika is large enough that some capacities could be strained. Therefore, Crown has been preparing its sales team on what kind of questions to ask customers to get them to consider their response to the Zika virus crisis. Is Zika being reviewed within an organization, and if so, how is it going to respond? What decision-making paradigm exists within an organization for such a crisis? “If there is a volume that a customer within the repellent or insecticide arena needs that hasn’t been planned for, we need to know that as quickly as possible; we need to get them in the queue right away,” explained Buckland. Production assessments are made and once the companies are committed to the fact that the Zika crisis is an issue, Crown will work with them on can size, timing, printed cans vs. plain cans (for labeling), etc. How does a supply chain plan for the short, middle and long term for an issue like Zika? “From industry perspective, as we talk to our cosuppliers within the supply chain, we ask ‘what is your response blueprint, model or thumbnail sketch that can be shared across the industry?’” Buckland said. “Sharing response ideas can only help the aerosol package and help us all along the way to ensure that our industry is healthy. Crown has created its own blueprint on how to handle a crisis. We have worked a model every way, front to back and up and down when it comes to a spike of this magnitude and we have a solid understanding of how to react to it.” What’s next in the Zika virus crisis? “We’re seeing a double bump: a preliminary spike in repellents, and a secondary bump for the eradication business, which are insecticides such as foggers and flying insect sprays. We don’t know right now how the Zika bump is going to collectively play out or for what the length of time, but marketers now need to consider the post-repellent spike and what that will entail.” IKI of Edgerton, WI, an aerosol filler, has over 50 years of experience in dealing with insecticides and insect repellents. “There is a high degree of seasonality in this business,” said Ryun Bibro, IKI Executive VP. “Early spring orders are pretty much the norm, with higher levels of production extending into the summer. The Zika virus has changed the fundamentals of this spring ordering pattern almost completely. We have been asked by our customers to prepare for much higher volume orders in the coming months. We are also seeing an overall ripple affect throughout the industry in terms of materials availability and available volume at fillers. The Zika crisis is having far-reaching affects that go well beyond the repellent and insecticide markets.” Zika information resources Most people who get Zika show no symptoms or minor symptoms such as muscle pain or headache. While there is no cure, the Centers for Disease Control & Prevention recommend those traveling to Zika-infected areas use U.S. Environmental Protection Agency (EPA)-registered bug repellents. Repellents with the active ingredient DEET are generally considered the most effective, although Consumer Reports has found sprays with other active ingredients, such as picaridin, are also highly effective. Consumers should consider treating clothing, backpacks, tents and shoes with a permethrin-based spray. Consumers can reduce mosquitoes around the home by removing the places they might breed; they should empty standing water from flower pots, bird baths, barrels and pet dishes, and clean leaves and debris from rain gutters. The Zika-carrying mosquito is drawn to the indoors, so entry points in torn window and door screens should be repaired. Individuals can further minimize exposure to mosquito bites by wearing light-colored, long-sleeved shirts, long pants, socks and hats, as well as tucking in shirts and tucking pants into socks. Use a bed net over baby carriers and if sleeping outdoors. The National Aerosol Association (NAA) has launched a new website dedicated to Zika Virus awareness at http://www.stop-zika.info/ More info: • http://www.who.int/mediacentre/factsheets/zika/en/ • http://www.cdc.gov/zika/ • http://www.scjohnson.com/mosquitoes Sources: NAA, Spectrum, USA Today
Spray April 2016
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