Consumer demand for Campbell soup continues to increase, with the company’s soup sales increasing 35% during its fiscal third quarter. “We do expect the stickiness, if you will, of these behaviors to continue moving forward,” Clouse said.
Campbell CEO Mark Clouse sees the increased demand for its products to continue. “Even if consumption is a bit down, I would expect shipments to outrun that as we replenish inventory levels in our retailers,” he said on CNBC’s “Squawk on the Street” on Wednesday.
“We do expect the stickiness, if you will, of these behaviors to continue moving forward,” he said.
While Campbell’s has struggled in recent years as consumer tastes evolved in favor of fresh options, the pandemic led to increased sales for products that had fallen out of favor, such as Kraft Heinz products and General Mills’ cereal.
“We’re seeing improved growth across all of our categories, with the exception of our bars category,” said Jeffrey L. Harmening, chairman and chief executive officer of General Mills, Inc. “And we’re seeing the same thing in Europe that we’re seeing in the US on bars. But mostly that’s because bars are eaten, to a large degree, on the go. And what we’re seeing is consumption for food at home, particularly in our meals categories. And whether that meal is breakfast like cereal, whether it’s lunch and dinner like Annie’s macaroni and cheese or whether it’s dinner occasions like Progresso or Totino’s or Old El Paso, we’re seeing the largest growth in our meals categories.
“In snacks, while the category has decelerated, we actually gained a little bit of share over the last two months in snack bars and aggregate. And so our competitive positioning has improved, even if the category hasn’t gotten all the way back to health. And in yogurt, we’re down a little bit on share so far this quarter. We’re down about 30 basis points of share, which is what we were going in, even as we have seen the growth rate in yogurt improve.”