(Bloomberg) -- Kraft Heinz Co. Chief Executive Officer Miguel Patricio said the ketchup maker has closed some of its China plants following the outbreak of coronavirus, and recommended companies look for alternative supplies of raw materials due to disruptions there.
The maker of Jell-O and Planters peanuts only gets 2% of its sales from China, but buys products from suppliers that import raw materials from the country, Patricio said in an interview.
“The whole world depends on China,” he said. The company has inventory for the next three months, but “it is prudent for everyone to find possible alternative suppliers.”
Of the company’s eight manufacturing facilities in the country, some are open and others are closed, depending on the municipality, Patricio said.
Impact from the viral outbreak, which has killed more than a 1,000 and disrupted daily life for millions in China, is rippling across the business world. Companies are watching developments closely, but many say it’s too early to calculate losses as shoppers avoid public spaces and workplaces remain shuttered.
One employee from Kraft Heinz’s small team in Wuhan has been diagnosed with the virus, but he is in stable condition, Patricio said. The company is closely following his status.
To contact the reporter on this story: Deena Shanker in New York at email@example.com
To contact the editors responsible for this story: Sally Bakewell at firstname.lastname@example.org, Jonathan Roeder, Matthew Boyle
©2020 Bloomberg L.P.