Category Archives: Companies

Summer Air Travel is on the Rise

Companies, Economy, News, Transportation Industry

Air travel may finally be recovering from the COVID-19 pandemic. Although some experts predicted that rising inflation would keep vacationers close to home, Delta Airlines reports a 17% increase in demand for flights in the quarter that ends in June.

Despite rising fares, according to Expedia, there has been a 25% increase in flight searches for summer trips, and an even larger increase in searches for international travel to Europe and Asia.

Airlines are also feeling hopeful about the return of corporate travel. Now that offices are reopening after the pandemic, business people are once again willing to fly to meetings. This summer, a high percentage of seats are expected to be filled by people traveling for work.

The next challenge for the airlines will be to ensure they are prepared for this increase in travelers. Throughout the past year, the airline industry was plagued with thousands of cancellations due to bad weather and internal issues. To ensure that passengers arrive at their destinations in a timely manner, Daniel Janki, CFO of Delta, said that Delta has devoted time and energy to “ensuring that we have the right resources in the right places with the right level of training.”

California is on Track to Produce Affordable Insulin

Companies, Health Care, Health Tech, News

Drug company Covica Rx has contracted with the state of California to create affordable insulin. Pending FDA approval, this 10-year, $50 million agreement will allow Civica to start making CalRx insulin in late 2023.  

People with Type 1 diabetes do not produce enough insulin, and they rely on manufactured insulin in order to survive. Currently, insulin can cost up to $300 for a 10 milliliter vial. But insulin produced by Civica for the state of California will cost no more than $30 per 10 milliliter vial, even for the uninsured. This will save patients who pay out of pocket up to $4,000 a year. 

This arrangement is part of California’s CalRx initiative which aims to reduce the cost of medications by producing generic drugs under the state’s own label. 

Civica will be producing three types of insulin, glargine, lisprom and aspart, which will all be the equivalent of the insulin produced by the major drug companies. Although California has initiated this project, the medicines will be available all across the country.

The production of affordable insulin is a game changer for Americans with diabetes. NPR.com reported that 1 out of 6 Americans living with diabetes ration their supply of insulin due to the high cost of the drug. University of California College of Law professor Robin Feldman called this an “extraordinary move in the pharmaceutical industry, not just for insulin but potentially for all kinds of drugs.”

Several pharmaceutical companies such as Eli Lilly and Sanofi have announced that they will also be cutting the cost of insulin in the upcoming year.

Air Fryers Continue to Grow in Sales

Companies, Consumerism, Lifestyle

Food companies have taken notice of America’s love for air frying. Since 2017 Americans have spent an increasing amount of money on air fryers, with nearly $1 billion spent in 2022.

Several big name food brands continue to develop products that are air-fried or that can be made in an air-fryer. Campbell Soup’s Kettle Brand recently introduced air-fried potato chips to the market. Nestle is producing a number of frozen products that consumers are encouraged to prepare in the air-fryer, and Gorton’s Seafood, Kellogg, and Hormel Foods have added air-frying instructions to many of their frozen products. Tyson Foods’ air fried line has reached up to $100 million in sales.

According to CNBC, Adam Graves, Nestle U.S’s Pizza and Snacking Division President, says that air frying is “the biggest trend that we’re seeing right now in modern cooking”. 

Some people were skeptical that the air-frying trend, which boomed during the Covid-19 pandemic, would quickly disappear. But so far, the opposite has proven to be true. Now that people are expected to go back to the office, they appreciate that air-frying provides a quick, healthy method of cooking, and they continue to purchase air-fryers. 

Some estimates suggest that 60% of American homes now contain an air fryer, and while this makes it far less popular than the microwave, the air fryer has recently surpassed the grill to become the fourth most popular cooking appliance in America today.

McDonald’s Opens Automated Test Restaurant

Companies, Technology, , ,

In today’s exciting world of advanced technology, we are constantly being introduced to new concepts and developments. As innovative thought is far-reaching into all fields, it is no surprise that the food industry is also coming out with progressive ideas and designs.

McDonald’s, one of the world’s most profitable franchises, has set off on a new endeavor. The fast-food chain has opened its first flagship automated restaurant aimed at eating on the go. The goal is to minimize the amount of human presence, and to use robots or machinery where possible.

At the new Texas location near Fort Worth, customers can either pre-order on the app or make their selections at a kiosk inside. While there are some staff members in the kitchen to prepare the meals, there is no need to employ workers to man the register or hand out the orders. A robot distributes the orders at the pick-up counter or drive-thru window. The physical restaurant is significantly smaller than most McDonald’s chains, as it is designed primarily for takeout orders.

According to franchisee Keith Vanecek, “The technology in this restaurant not only allows us to serve our customers in new, innovative ways, it gives our restaurant team the ability to concentrate more on order speed and accuracy, which makes the experience more enjoyable for everyone.”

While some have applauded the potential improvements to the ordering process, others have expressed concern about the number of layoffs that the shift to automated systems will inevitably cause. Only time will tell if this new system is efficient, and how it impacts the amount of manpower needed.

C-Suite Exits Reach Highs in 2022

Companies, Economy, , ,

As 2022 comes to a close, businesses are assessing their ups and downs. It is no secret that Fortune 500 companies have had a very difficult year. The result, though, is somewhat unexpected.

Many top executives are leaving their longtime positions. CEOs have made exits from huge corporations, such as Starbucks, FedEx, Disney, Kohl’s, AMC, Salesforce, and more. The bigger problem is what comes next. It’s become clear that many of these entities have never put a succession plan in place. And, with global markets on the verge of entering a recession, the timing for this unpreparedness is less than ideal.

There were reportedly 774 CEO exits between January and June 2022. This is the highest first half total in 20 years, since the Challenger, Gray, & Christmas outplacement firm started keeping track. By the third quarter of 2022, resignations slowed down, but there was another spike of high-profile exits just this month.

Without a succession plan, companies suddenly find themselves racing to find a replacement CEO. Conducting this type of search under such pressured terms usually doesn’t bode well. Investors are hit with a mixture of surprise and fear, and stocks prices can take a toll. When Salesforce’s co-CEO Bret Taylor resigned last week, share sales shot down.

So, what can be done? A popular solution that companies have implemented is reinstating familiar faces. Both Disney and Starbucks brought back their former CEOs, offering reassurance to shareholders.

The long-term remedy, however, is to plan ahead. Public company board members made their voices heard in a recent survey saying that CEO succession plans need to be improved. Investors are also becoming blatantly aware of the impacts, with a reported $1 trillion per year loss in the S&P 1,500 directly related to C-suite exits.

While companies are busy devising goals for the coming year, it will be interesting to see how many truly internalize this pattern and strategize accordingly.