Climate change debates aside; we all can agree that weather is often more severe, more damaging and less predictable than expected. In response, food and beverage manufacturers must adapt in real time to escalating weather events caused by the new El Niño pattern. Recently, Sonoco explored how the weather pattern affects the food and beverage supply chain and how our global operations and resources can support customers.
How Is El Niño Impacting Planning Across the Supply Chain?
The National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center placed the odds above 80% that El Niño would reach a ‘very strong’ status by the end of 2026, ranking among the most powerful on record.
Weather risks impact every part of the supply chain: growers, processors, packaging suppliers, distributors and retailers. Understanding the connection between weather events and supply chain disruption is critical.
What Did the Last El Niño Cycle Demonstrate?
One of the most visible examples of El Niño’s impact is the Panama Canal, which carries approximately 5% of global maritime trade and connects suppliers, manufacturers and customers across the Americas. Disruption to this shipping channel can create downstream inventory, lead-time changes and raise transit time and cost.
From 2023 to 2024, El Niño weather events lowered water levels so drastically that the Panama Canal Authority was forced to repeatedly cut daily transit slots, reducing traffic by a third at one point. Not only did carriers have to reroute, queue for days and pay for premium priority passage, but coinciding droughts across West Africa and Southeast Asia also contributed to some of the sharpest price increases seen in years to the cocoa and coffee categories.
How Can Food and Beverage Manufacturers Plan for El Niño?
Eliminating uncertainty is not possible, but planning for it is. Partnering with a global packaging provider offers assurance. Before weather events impact production, Sonoco’s global manufacturing resources give visibility into supply conditions with:
- Coordinated production and logistics networks
- Multiple manufacturing locations
- Established carrier relationships
Working with a global manufacturer partner makes a difference. Before the season turns, they can help set production schedules, put customer forecasts in place, order packaging and reserve transportation capacity where it makes sense for your business.
How Does Sonoco Support the Food and Beverage Supply Chain?
Sonoco’s expertise is much deeper than packaging. With experts focused on the markets our customers serve, we monitor conditions that influence businesses and strengthen supply chains before disruption reaches our customers’ production floor.
“Partnership is not a status you achieve; it’s a commitment you keep,” says Ernest Haynes, President of Sonoco Global Consumer Packaging. “At Sonoco, we work every day to earn our partners' business by delivering value, fostering trust and creating solutions that help us succeed together.”
