Key Points:
- The Campbell’s Company reported that consumers are cooking meals at home at the highest level since early 2020 due to the impact of COVID-19.
- Consumers are focusing on ingredients that help them stretch their food budgets, benefiting Campbell’s condensed cooking soups, broths, and Italian sauces.
- While Campbell’s meals and beverages segment saw a 15% surge in sales, the snacks division, particularly chips and crackers, faced challenges due to inflationary pressures.
Insight:
With inflation and economic uncertainty, consumers are turning to home-cooked meals as a cost-saving measure, leading to increased sales for Campbell’s.
Campbell’s reported a 15% growth in sales for its meals and beverages segment, attributed to the acquisition of Sovos Brands. The company’s soup products also performed well, catering to younger consumers cooking at home.
Despite challenges in the snacks category, Campbell’s saw growth in consumption across all income groups for meals and beverages, with several top brands gaining market share.
The shift towards home cooking has impacted snack consumption, with Campbell’s snack sales declining by 8% in the third quarter. The company is focused on revitalizing its Goldfish cracker brand and improving snack division performance.
Campbell’s is monitoring the impact of tariffs on its business, particularly on imported tinplate steel and canola oil. Trade challenges could affect earnings, prompting the company to implement strategies to mitigate potential impacts.