Packaged food sales up as the economy tanks
Talk about recession proof. The folks at Campbell’s Soup, Kellogg and Kraft are having a kick-butt year. Why? Folks are eating at home more and chowing down on canned soup and Ramen noodles. Call it The Frugalista effect. heheheh.
From the article:
Campbell Soup’s sales rose 13% in the most recent quarter, a phenomenon
CEO Douglas Conant said was aided partly by strapped consumers
embracing condensed soup as an inexpensive meal alternative. Kellogg
Co.’s second-quarter sales climbed 11% to $3.3 billion, a rise CEO
David Mackay told analysts was due to "a reduction [by consumers] in
out-of-home consumption."
reported last week, and Kraft Foods, which replaced American
International Group on the Dow last week, reported a second-quarter
sales jump of 21% to $11.2 billion. "The fact that people are eating at
home more is certainly a positive," said CEO Irene Rosenfeld.
The down side for the companies is that ingredient prices went up. While they turned a profit, the increase wasn’t as great as it would have been if prices were more stable.
So tell me, are you a Campbell’s kid? A Ramen raven? You can ‘fess up. Are you eating packaged foods more? How is your blood pressure?
P.S. This is my second image of an Andy Warhol piece of art. Yesterday’s dollar signs were by Andy, also. If you can’t afford to buy it, just download it! Frugalista Law!
8 Responses to Packaged food sales up as the economy tanks
-
Let’s not forget those really cheap meal-in-a-bowl pot pies. We’ve started having those, but mostly because I have night meetings. They are cheap and can be filling. Oh and those au gratin and scalloped potatoes from a box. Lately those have been on sale (10 for $10) so we have been having those. Treat the au gratins like skins and top ‘em with bacon, green onion and a small bit of sour cream. More dining at home, definitely.
-
I have been eating more at home by far but I was doing it in an attempt to shrink my waistline..lol
However after seeing more money in my wallet that was a good feeling.
You asked a great question about the pressure because the sodium in some of those canned goods can harm your pressure big time.
great post.
-
I vowed to stay off the ramen packets after college. But I am eating at home more. The sodium concern is real, along with other health issues. I read ingredients and try to keep the prepackaged foods to a minimum.
-
Those type of companies will never really do bad, regardless of recession or growth in the ecomony. Consumer Staples never suffer
I am thinking about buying Kraft stock and add it to my portfolio next year
-
I don’t eat Ramen noodles, but I do eat at home a lot. I started during grad school to keep more money in my pocket and just stuck with it.
I have a stack of recipes I’ve collected from foodnetwork.com, so there is always something neat to try out.
-
I do buy some packaged foods purely for convenience (who feels like mashing potatoes after work) but I try not to make too much of a habit of it. However, now that the weather is cooling, I’m all about the crockpot. Inexpensive and easy!
-
Lou-Thanks for the foodie tip. Yum.
PJD-There’s always a down side, right?
Coco-Are you able to save?
MoneyMonk-Ohh, you bring up a good point. I don’t think the economy will be better for a while, so Kraft may be where it’s at.
Vanessa-Smart. And dinner at your house.
Savvy-Yes! I need to do a post on crockpots. They save time and you can cook really healthy. Thanks for reminding me!
-
If I’m back to eating Ramen that means I have hit rock bottom. After college I straight up REFUSED to eat Ramen. I literally ate Ramen for the first time in years a few months ago because I was soooo sick and my friend bought me Ramen not knowing my vow against the product…I was too sick to go to the grocery store myself.
But does anyone notice how EXPENSIVE a box of cereal is? Luckily I am single so a box of cereal goes a long way but I can’t imagine how families handle it.
As far as soup I buy it by the case at Costco, why? Because so many recipes require a can of cream of mushroom or cream of chicken or some kind of soup or broth as a base.
Looking forward to the crockpot post because I have had one for YEARS and I can count the number of times I have used it…on one hand…and for only 1 recipe, beef stew.
The Book
Buy the Book
Categories
Recent Posts
Lou Elliott Jones