A BELOVED pantry staple is experiencing a revival this year as more Americans begin to cook food at home.
The American soup company, which has been in operation since 1897, announced that it has achieved its highest sales since 2020.
GettyNew sales show that Americans are cooking more at home[/caption] GettyA soup and snack company reported an uptick in sales of its broth-based products[/caption] GettyAmericans are spending less on snacks due to inflation[/caption]The high sales may indicate that more people are opting to eat at home than dine out.
Mick Beekhuizen, CEO of the soup and snack company Campbell, announced the uptick in earnings on a call earlier this week.
“We started to see consumer sentiment softening in January,” Beekhuizen said.
“This continued throughout Q3, with consumers making more deliberate choices with their spending on food.”
The CEO noted that consumers are gravitating towards grocery items like condensed cooking soups, broths, and sauces.
All of the products notably help “stretch tight food budgets.”
The company noticed consumers steering clear of snacks and being more intentional of where they spend their money.
Campbell pointed out that soup broth sales have risen 15%, whereas popular snack items, such as Goldfish and Cape Cod potato chips, have declined.
Overall, snack sales were down 5%.
The drop isn’t shocking, according to experts, as a May survey revealed that consumers’ main concern was inflation, AdWeek reported.
General Mills and PepsiCo have also seen a drop in snack sales the past quarter.
“Consumers continue to be selective in their spending, largely driven by inflationary pressures and diminished discretionary income,” J.M. Smucker CEO Mark Smucker said in February.
DECLINING SALES
McDonald’s experienced its worst US sales decline in five years, according to the Associated Press.
The popular fast food chain’s sales dropped 3.6%, marking the biggest decline it has experienced since the start of the pandemic in 2020.
“We believe McDonald’s can weather these difficult conditions better than most,” McDonald’s Chairman and CEO Chris Kempczinski said in a call with investors.
“However, we’re not immune to the volatility in the industry or the pressures that our consumers are facing.”
CPI and Inflation explained
The Consumer Price Index is how the federal government measures inflation.
Every month, the Bureau of Labor Statistics shares its CPI numbers with detailed breakdowns of which items have changing prices.
The CPI shows the amount prices rose or fell over the previous 12 months.
The calculation process is complex, but measures the changes in price for urban consumers, those living or working in an American metropolitan area.
While that does not cover everyone, it measures prices for about 90% of the population.
As Campbell noted, Kempczinski stated that lower- and middle-class consumers have reduced their spending since January, due to rising inflation.
He said in the call that the first quarter was expected to be its worst, but things are already starting to get better.
The chain hopes to make up for its loss with the reintroduction of the beloved snack wrap, which is expected later this year.
The company will also introduce new chicken strips for consumers.
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