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Duke's Mayo to furlough 97 employees in Mauldin
iStock / Getty Images Plus - bhofack2

In a press release Monday, Duke's parent company, Sauer Brands Inc. said "it is placing a portion of its workforce on temporary furlough as a result of a sharp industrywide decline in demand for food products from restaurants and other foodservice customers hard hit by the COVID-19 crisis."

131 employees will be furloughed nationwide, 97 of which work here in Mauldin.


Sauer said the furloughs are temporary

In an emailed statement, the company said they had to adjust production at their plants as demands from food customers are down due to stay-at home orders.  

President and CEO Martin Kelly said  “We know this is a difficult time for everybody, particularly those who are directly affected, and we regret that circumstances have made this action necessary.”

Employees will be paid through Friday April 17th and eligible to file for unemployment benefits. 

The company is keeping employee's health insurance intact and said they will cover their contribution costs of the benefits for the next 2 months.

Official Press Release from Sauer Brands, Inc. below:

MAULDIN, South Carolina (April 13, 2020) – Sauer Brands Inc. announced today it is placing a portion of its workforce on temporary furlough as a result of a sharp industrywide decline in demand for food products from restaurants and other foodservice customers hard hit by the COVID-19 crisis.
The action affects 131 employees nationwide, including 97 in Mauldin and 34 in New Century, Kansas.
Employees in both locations make a variety of products, including iconic Southern staple Duke’s Mayonnaise, for sale to retail and foodservice customers that rely on Sauer Brands for quality condiments, spices, seasonings and extracts.
Affected employees were notified today and will be paid through April 17 to give them time to file for unemployment benefits.
They will continue to be covered under the company’s healthcare insurance program, with the company paying both employee and employer contributions to the cost of the benefits for up to 60 days.
“We want to emphasize that these are temporary furloughs and we expect to recall affected employees as needed as foodservice demand begins to return to pre-COVID-19 levels,” said Martin Kelly, president and CEO of Sauer Brands Inc. “We know this is a difficult time for everybody, particularly those who are directly affected, and we regret that circumstances have made this action necessary.”
Demand from Sauer Brands’ retail customers – grocery stores, big-box outlets and others that sell directly to consumers – has surged as Americans eat more meals at home, Kelly said. But business from restaurants, institutions and others that buy through foodservice distributors has declined as a result of stay-at-home orders, mandated dine-in closures and other social distancing measures across the U.S.
Retail research firm The NPD Group reported last week that restaurant customer transactions dropped 42% in the week ending March 29 compared to the same week a year ago. About 97% of all U.S. restaurants are now under some type of restrictions, with most prohibiting dine-in service. Full-service restaurants that aren’t set up for off-premise service such as drive-through, carryout and delivery were down 79%, while quick-service restaurants that offer off-premise service saw transactions drop 40%, according to NPD.