News March 23, 2020
Promo Firms Shift to Making Medical Masks
It’s part of a broader response to COVID-19 that’s seeing fashion brands, beauty product providers and even spirits distillers produce products like protective masks and hand sanitizer.
Manufacturers of everything from fashion apparel to whiskey are shifting their production operations to make products like surgical face masks and hand sanitizer in an effort to help combat the global coronavirus pandemic.
Top 40 suppliers Sanmar (asi/84863) and SnugZ/USA (asi/88060), as well as Starline (asi/89320), Los Angeles Apparel (asi/67971), HanesBrands (asi/59528) and Fruit of the Loom (asi/84257) are among companies in the promotional products industry that are contributing to the manufacturing effort, which in significant part aims to supply healthcare workers and others on the frontlines with essentials.
Over the weekend of March 21 to 22, the largest hospital provider in Utah contacted West Jordan, UT-based supplier SnugZ/USA. The healthcare provider was in need of cotton tie masks that can be sanitized and reused. It wanted to know if SnugZ, which has extensive onsite manufacturing capabilities at its facility, could help, says CEO Brandon Mackay. SnugZ jumped at the opportunity to assist the hospital network and others.
“We’re in the process of converting our die-cutting and sewing operations to produce finished goods as of this weekend to help offset the need among hospitals across the nation,” Mackay told Counselor.
President @realDonaldTrump gave an update on the medical equipment and supplies being moved from our federal stockpile to the areas of greatest need. pic.twitter.com/fvbCfmD3XH
— The White House (@WhiteHouse) March 23, 2020
Meanwhile, HanesBrands, SanMar and Fruit of the Loom are part of a cooperative consortium of apparel manufacturers that is redirecting manufacturing capabilities to produce 5 million to 6 million cotton face masks weekly for healthcare professionals. The masks are being made as part of a contract with the federal government. The masks meet standards set by the United States’ Food and Drug Administration, officials say.
Winston-Salem, NC-based HanesBrands plans to produce 1.5 million such masks per week at facilities it owns in El Salvador and the Dominican Republic. “Hanes ... [is] retrofitting manufacturing capabilities in large sections of the plants to produce masks and they’re in the process right now,” President Donald Trump said over the weekend of March 21 to 22.
“The textile and sewing plants are being converted from manufacturing of T-shirts, underwear, socks and fleece sweatshirts/sweatpants,” read a statement from HanesBrands, which has total company annual revenue of nearly $7 billion.
We're committed to doing everything we can to help our communities during these challenging times. Together we can help slow the spread of Covid-19. https://t.co/NRljw9wHu8
— SanMar Corporation (@sanmar_corp) March 23, 2020
Elsewhere, Los Angeles Apparel, the clothing basics manufacturer/seller founded by former American Apparel leader Dov Charney, recently began making what Charney described as the equivalent of surgical masks. Charney told The New York Times that Los Angeles Apparel manufactures the masks from a sweatshirt-like fabric. Held in place by two straps with a metal adjuster on the nose, the masks fit tightly over a wearer’s face. They can be reused, but must be washed thoroughly in hot water first.
Charney told the Times that he aims to have his 150,000-square-foot factory produce 300,000 masks per week, adding that he also wants to make 50,000 hospital gowns weekly. Charney says Los Angeles Apparel has provided masks for hospitals in Seattle, New Mexico, New York and Las Vegas. Hospitals in Los Angeles are getting the masks for free. Charney’s also retailing them for $30, but as the Times notes, public health experts say people who aren’t sick don’t need to wear masks and that such masks should be saved for caregivers and the sick.
Back east, Grand Island, NY-based Starline has begun prototyping and testing manufacturing processes to produce medical face shields. “We have a batch of raw materials arriving tomorrow that should allow us to start production as soon as possible,” Jon Norris, Starline’s vice president of operations, told Counselor. “We are working with the state to seek approval and regulatory guidance, but we are hopeful that we will be able to dedicate some of our resources to the cause.”
Of course, 3M has been at the forefront of the battle against critical supply shortages related to the coronavirus. The multinational conglomerate with more than $30 billion in annual revenue operates in the promo products industry through its 3M/Promotional Markets (asi/91240), a Top 40 supplier. 3M was already a major producer of N95 masks, which provide high-level respiratory protection. Even so, the company has doubled its N95 production capacity, making nearly 100 million N95 masks per month.
To fight #COVID19 & support healthcare workers, we have doubled our global output of N95 respirators to an annual rate of over 1.1 billion per year, or nearly 100 million per month. Read more: https://t.co/CkglKW0zlR pic.twitter.com/yhJZzOlB72
— 3M (@3M) March 20, 2020
Apparel makers in the retail/fashion world are also chipping in to produce needed medical wearables. Spain-headquartered Inditex, the world’s largest apparel retailer and owner of fast-fashion brand Zara, has offered its factories and logistics teams to the Spanish government and is donating masks for patients and medical workers.
As The New York Times reported, fashion designer Christian Siriano (of Project Runway fame) is having his New York-based seamstresses make masks with the hope of producing several thousand a week. Karla Colletto, a fashion swimwear brand, is retooling its Virginia factory to make masks and hospital gowns. “Because we have our own facility, we can be flexible and switch gears quickly,” founder/fashion designer Karla Colletto told the Times.
The Shift to Sanitizer
Amid COVID-19 disruption, demand for hand sanitizer has skyrocketed, something that’s caused a run on sanitizer in the retail and industrial spaces, as well as shortages and production backups in the promotional products industry. To meet the rampant broad-based demand from consumers and businesses, entities that range from beauty brands to adult beverage makers are readjusting operations to produce hand sanitizer.
LVMH Moët Hennessy, a French multinational corporation and conglomerate specializing in luxury goods, recently began making hand sanitizer for the French government. Soon after that, Covergirl owner Coty and L’Oreal, the world’s largest beauty producer, also began manufacturing sanitizer. “Beauty conglomerates like LVMH and L’Oréal already have bottles and ingredients to make hand sanitizer, so the transition is seamless,” read a report from Morning Brew.
Meanwhile, beer brewers like Anheuser-Busch and Labatt have started making hand sanitizer. “We have a long history of supporting our communities and employees - this time is no different,” Anheuser-Busch said in a statement. “That’s why we are using our supply and logistics network to begin producing and distributing bottles of hand sanitizer to accommodate the growing needs across the United States.”
On March 22, Labatt Breweries of Canada said it will initially be producing 50,000 bottles of hand sanitizer at five of its locations across Canada. The sanitizer will be donated to Food Banks Canada, frontline workers and restaurants/bars that remain open.
At Labatt, we care about the health and safety of our communities. That’s why we’re mobilizing our breweries to produce and distribute 50,000 bottles of hand sanitizer to support @foodbankscanada, front line workers and partners in the restaurant and bar industry. #COVID19 pic.twitter.com/9BxRbQKIMg
— Labatt Breweries (@LabattBreweries) March 22, 2020
Craft brewers and spirits makers are getting in on the hand sanitizer production, too. Triple Sun Spirits of Emmaus, PA, for instance, was offering hand sanitizer that it had, tongue-in-cheek fashion, dubbed “craft sanitizer.” Similarly, San Antonio, TX-based craft brewer/distiller Ranger Creek was producing sanitizer alongside its whiskies and ales.
The shift to sanitizer production comes as the FDA announced on March 20 that it will not take action against firms that begin making sanitizer for consumers and healthcare professionals, given the dwindling supply of the product. The FDA was providing limited guidance on sanitizer production.
“We are aware of significant supply disruptions for alcohol-based hand sanitizers. Many manufacturers make hand sanitizers, and several have indicated that they are working to increase supply,” FDA Commissioner Stephen Hahn said in a statement. “In the meantime, these guidances provide flexibility to help meet demand during this outbreak.”
Despite the production escalation from nontraditional sources, some companies in the promo space that feature hand sanitizer as part of their regular product portfolio told Counselor that the overwhelming demand specific to the ad specialty market could result in shortages of quality sanitizer for promo in the weeks ahead.
SnugZ’s Mackay noted that some vendors in California, for instance, have notified his company that they are not allowed to sell alcohol – a key sanitizer ingredient – to third-party manufacturers. They’re stockpiling it for hospitals and healthcare, Mackay says. “There could be a slowdown in USA-made sanitizer for promo,” Mackay told Counselor. “I think we could see a flood of junk sanitizer hitting the market in the next three-to-four weeks. For now, we’re doing everything we can to provide sanitizer to our amazing customers. We’re making it 24/7 at lightning pace.”