Packaged food sales up as the economy tanks | The Frugalista

Packaged food sales up as the economy tanks

by frugalista on September 23, 2008

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."

General Mills saw U.S. sales increase 14% in its most recent quarter,
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

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!

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