Pantry Loading Boosts Sales at Kraft Heinz, Kellogg
Due to the coronavirus pandemic, there has been a demand for packaged foods. Kraft Heinz Co. and Kellogg Co. sales have climbed by 8% and they are winning back customers who stopped eating their cheese and cereal products long ago. People no longer gravitate towards fresh food and niche brands because they want stuff that will last longer and cost less. According to the Chief Executive at Kraft Heinz, they plan to seize this opportunity and use this demand to our advantage.
However, there are some downsides. Kraft Heinz said it is running its factories near capacity and making fewer varieties of some goods. This has all boosted profitability. But the coronavirus pandemic has also increased some costs. Companies that are in high demand have to hire additional trucks to transport food and increased pay for factory workers.
I choose this article because it demonstrates how fast sales can change depending on the consumer. Before this pandemic people were eating healthier and more high-end brands. Now they turn to cheaper and lower-end brands for food. It's crazy to see numbers change so fast.
https://www.wsj.com/articles/pantry-loading-boosts-sales-at-kraft-heinz-kellogg-11588263378?mod=newsviewer_click
Hi Alyssa,
ReplyDeleteI definitely agree with your assesment of the turn in tables within consumers. I think one of the things that contributes to this is the idea of panic. As some states extend their lockdown, consumers are left with little choice but to buy items that will last longer due to limited grocery runs. I know from personal experience I would go grocery shopping about twice a week and it has decreased to once every two weeks to limit going out. I think it will be interesting to see how things play out in the next coming months as we expect more flattening of the curve and businesses to reopen.