Campbell’s Co. reported a significant uptick in sales for broth and condensed soup during the most recent quarter, attributed to a rise in home-cooked meals among Americans. The company highlighted this trend as consumers increasingly turn to home cooking and prioritize items that can extend their food budget effectively. In a discussion with investors, the company’s President and CEO, Mick Beekhuizen, mentioned that households are exhibiting heightened mindfulness about their discretionary spending on snacks.
According to Beekhuizen, Campbell’s experienced the highest volume of at-home meal preparations since early 2020 in its third fiscal quarter, concluding on April 27. During this period, the sales of Campbell’s broths surged by 15%, while its popular Rao’s pasta sauces saw a more modest 2% increase. However, sales from Campbell’s snacks division, which includes Goldfish crackers and Cape Cod potato chips, saw a 4% decline.
This phenomenon of increased home dining isn’t unique to Campbell’s. It’s a trend observed by other major brands too, such as McDonald’s, amidst growing economic uncertainties. The USDA’s data for 2024 revealed that grocery prices have slightly stabilized, with at-home food costs rising by just 1.2%, in contrast to a steeper 4.1% increase in prices for dining out.
Similar trends in reduced snack consumption have been echoed by other manufacturers, including PepsiCo, known for Frito Lay chips, and General Mills, the producer of Bugles chips and Golden Grahams. In parallel, Campbell’s net sales reached a 4% growth, hitting $2.5 billion for the third quarter. This performance aligned with Wall Street’s predictions, as noted by analysts surveyed by FactSet.