Sales of famous Campbell Soup broths and soups up 35% third fiscal quarter due to changes in consumer behavior caused by the coronavirus pandemic.
And even when the states reopen their economies and warm summer weather begins to hit the country, CEO Mark Klaus expects that increased demand for his products will continue.
“Even if consumption drops slightly, I would expect supplies to exceed that, as we are replenishing inventory levels in our retail stores,” he told Squawk on the Street CNBC on Wednesday.
Consumers stocked Campbell’s canned soups and other goods during the early phase of the pandemic. Then, when they started looking for cheap and easy food, they repeated their purchases of Campbell products, according to Clouse.
“We expect that stickiness to this behavior will continue,” he said.
Like many other Big Food companies, Campbell’s has struggled in recent years to adapt to changing consumer tastes. Americans avoided the aisles at the grocery store center, instead choosing fresh options.
The pandemic has completely reversed these consumption trends, reviving sales of products that have lost popularity, such as pasta with Kraft Heinz cheese and General Mills cereal. But it’s too early to talk about whether shopping habits will constantly change.
Shares of the company fell almost 5% in morning trading, despite raising forecasts for 2020 and raising analysts’ forecasts. Equities with a market value of nearly $ 15 billion have grown by less than 1% since the start of the year. Over the past year, he added almost 33%.