The snacking recession: Why Americans are buying fewer treats
Americans are snacking less — and that's a problem for the packaged food industry.
Why it matters: After years of inflation, consumers are recoiling, fed up with food price increases and suddenly immersed in economic uncertainty.
Driving the news: General Mills on Wednesday became the latest food giant to sound the alarm about what CEO Jeff Harmening called a "slowdown in snacking."
The company's net sales fell 5% in its latest quarter, with U.S. snacks sales down "mid-single digits."
"Our view is that a lot of that has to do with consumer confidence," Harmening said.
State of play: Other signs of a snacking slowdown:
J.M. Smucker's sales of sweet baked snacks fell 7% in the company's most recent quarter to $278.6 million.
Campbell's Company CEO Mick Beekhuizen noted "softness in some of our snacking categories" earlier this month, as organic net sales declined by 3% in its most recent quarter.
Sales fell 4.3% for U.S. convenience stores in the year ended Feb. 23, according to market-research firm Circana cited by WSJ.
What we're watching: Product innovation and price cuts are possible as companies look to reenergize sales, CFRA Research analyst Arun Sundaram tells Axios.
"We're in this limbo period where volumes are still soft and price increases aren't benefiting the top line anymore," he says.
Caveat: It's not just snacks that are suffering. Two major discount retailers sounded the alarm recently of a broader pullback among lower-income consumers.
"Many of our customers report that [they] only have enough money for basic essentials, with some noting that they have had to sacrifice even on the necessities," Dollar General CEO Todd J. Vasos said last week on an earnings call.
Walmart has seen a similar trend. "You can see that the money runs out before the month is gone," CEO Doug McMillon told the Economic Club of Chicago two weeks ago.
Maybe a smidge, but not in meaningful amounts, most execs say.
Harmening noted on an earnings call that General Mills even experienced a decline in sales of dog snacks — "and to my knowledge, there is not GLP-1s for dog treats."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Politico
15 minutes ago
- Politico
Graham wants to punish Russia with ‘bone-crushing' sanctions. It could backfire.
Sen. Lindsey Graham has pledged that his expansive sanctions bill would be 'bone crushing' for the Russian economy. But if enacted, the South Carolina Republican's proposal to impose 500 percent tariffs on any country that buys Russian energy would effectively cut the U.S. off from some of the world's largest economies — including allies in Europe. 'A 500 percent tariff is essentially a hard decoupling,' said Kevin Book, managing director of Clear View Energy Partners, an energy research firm. Graham appeared to acknowledge as much on Wednesday, when he proposed a broad carve-out for countries that provide aid to Ukraine. This exemption would spare the European Union, which continues to import almost 20 percent of its gas from Russia. But experts remain skeptical that the sky-high tariffs proposed in the Sanctioning Russia Act are in any way feasible. India and China buy roughly 70 percent of Russian energy exports, but several other countries that buy any oil, gas or uranium from Moscow — and aren't included in the carve-out — could also be exposed to tariffs under the bill. The United States, which is still reliant on imports of enriched uranium from Russia to fuel its nuclear reactors, could also run afoul of the bill. Edward Fishman, a senior researcher with the Center on Global Energy Policy at Columbia University, said countries in the crosshairs of the bill would struggle to halt their imports of Russian energy overnight. Tariffs of 500 percent on imports of goods made in China would send prices soaring, disrupt supply chains and could drive up U.S. unemployment to recessionary levels. Most likely, it would lead to a screeching halt in U.S. trade with China. 'It would hurt Americans quite a bit,' Fishman said. The legislation's goal, co-sponsored by Sen. Richard Blumenthal (D-Conn.), is to starve Russia's war economy, which continues to earn hundreds of billions of dollars from energy exports. There is widespread support for the overall objective, with 82 senators signing on to Graham's bill so far, and growing support for a companion bill in the House. The bill is likely to change significantly as it moves through Congress and in consultations with the Trump administration, said Matt Zweig, senior policy director of FDD Action, a nonprofit advocacy organization affiliated with the Foundation for Defense of Democracies. It may also take a long time. 'With sanctions legislation, you're also normally dealing with iterative processes where you would want to go through every nook and cranny,' Zweig said. Still, the widespread bipartisan support for the legislation suggests there is a high degree of support among lawmakers for tougher action on Russia. 'What Congress may be doing is pressuring the executive branch to act,' said Adam Smith, a partner at the law firm Gibson Dunn. 'There is a sense in the Senate that more sanctions on Russia need to be imposed, or ought to be imposed,' added Smith, who was a senior adviser to the Treasury's Office of Foreign Assets Control during the Obama administration. Graham, the bill's most vocal Republican advocate, said as much in a meeting with reporters in Paris over the weekend, where he described the bill as 'one of the most draconian sanctions bills ever written.' 'The Senate is pissed that Russia is playing a game at our expense and the world's expense. And we are willing to do something we haven't been willing to do before — and that is go after people that have been helping Putin,' Graham said. Sen. Jeanne Shaheen of New Hampshire, the top Democrat on the Senate Foreign Relations Committee, dismissed concerns that the bill is too harsh. 'We need to make Putin understand he has to stop screwing around and come to the table. But we also need to follow it up and make clear we will be tough,' she said. Not everyone agrees. Sen. Rand Paul (R-Ky.), who has long been skeptical about the effectiveness of sanctions to change the behavior of U.S. adversaries, bashed the bill on Monday as 'literally the most ill-conceived bill I've ever seen in Washington,' he said. 'It would be a worldwide embargo on 36 countries.' Meanwhile, Russia and Ukraine have made little progress on peace talks. Officials from both countries met in Istanbul on Monday and agreed to a further prisoner swap, but failed to achieve any major breakthroughs. Graham and Blumenthal visited Ukraine, France and Germany during last week's congressional recess, where they discussed the sanctions bill, as well as efforts to push Russia to the negotiating table. The proposal has been welcomed by European Commission President Ursula Von der Leyen, who met with Graham in Berlin on Monday. 'Pressure works, as the Kremlin understands nothing else,' Von der Leyen said in a statement. 'These steps, taken together with U.S. measures, would sharply increase the joint impact of our sanctions.' Senate Majority Leader John Thune indicated Monday that the chamber could take up the legislation later this month. Republican senators have said they would like to secure the approval of the White House before moving forward. The proposed use of blanket tariffs to target countries that continue to do business with Russia's energy sector is novel and appears to be pitched to Trump's interests. On Tuesday, White House press secretary Karoline Leavitt said Trump viewed sanctions as 'a tool in his toolbox,' but declined to comment about his position on the bill. Trump appeared to be inching closer toward supporting the bill in a post on Truth Social on Wednesday, which linked to an op-ed in The Washington Post supporting the legislation. Speaking in the Oval Office on Thursday, Trump indicated he wanted lawmakers to secure his approval before moving forward with the bill. 'They're waiting for me to decide on what to do,' he said, describing the legislation as a 'harsh bill.' The president has liberally wielded tariffs to advance his foreign policy agenda, but his implementation has been spotty. Wall Street has even adopted a trading strategy referencing Trump's capriciousness called TACO, which stands for 'Trump Always Chickens Out.' Tariffs of 145 percent on China, imposed in April, lasted a month before being dramatically scaled back to make way for trade talks, which have so far failed to secure a breakthrough. As it stands, the bill includes some levers that Trump could pull to forestall the tariffs, requiring the president to make a formal determination that Russia is refusing to negotiate or has violated any future peace agreement. Nahal Toosi, Joshua Berlinger, Phelim Kine and Katherine Tully-McManus contributed to this report.
CNBC
an hour ago
- CNBC
When it comes to saving, Gen Z asks: 'What's the point?' That's dangerous, expert says
Gen Z seems to have a case of economic malaise. Nearly half (49%) of its adult members — the oldest of whom are in their late 20s — say planning for the future feels "pointless," according to a recent Credit Karma poll. A freewheeling attitude toward summer spending has taken root among young adults who feel financial "despair" and "hopelessness," said Courtney Alev, a consumer financial advocate at Credit Karma. They think, "What's the point when it comes to saving for the future?" Alev said. That "YOLO mindset" among Generation Z — the cohort born from roughly 1997 through 2012 — can be dangerous: If unchecked, it might lead young adults to rack up high-interest debt they can't easily repay, perhaps leading to delayed milestones like moving out of their parents' home or saving for retirement, Alev said. But your late teens and early 20s is arguably the best time for young people to develop healthy financial habits: Starting to invest now, even a little bit, will yield ample benefits via decades of compound interest, experts said. "There are a lot of financial implications in the long term if these young people aren't planning for their financial future and [are] spending willy-nilly however they want," Alev said. That said, that many feel disillusioned is understandable in the current environment, experts said. The labor market has been tough lately for new entrants and those looking to switch jobs, experts said. The U.S. unemployment rate is relatively low, at 4.2%. However, it's much higher for Americans 22 to 27 years old: 5.8% for recent college grads and 6.9% for those without a bachelor's degree, according to Federal Reserve Bank of New York data as of March 2025. Here's a look at other stories affecting the financial advisor business. Young adults are also saddled with debt concerns, experts said. "They feel they don't have any money and many of them are in debt," said Winnie Sun, co-founder and managing director of Sun Group Wealth Partners, based in Irvine, California. "And they're wondering if the degree they have (or are working toward) will be of value if A.I. takes all their jobs anyway. So is it just pointless?" About 50% of bachelor's degree recipients in the 2022-23 class graduated with student debt, with an average debt of $29,300, according to College Board. The federal government restarted collections on student debt in default in May, after a five-year pause. The Biden administration's efforts to forgive large swaths of student debt, including plans to help reduce monthly payments for struggling borrowers, were largely stymied in court. "Some hoped some or more of it would be forgiven, and that didn't turn out to be the case," said Sun, a member of CNBC's Financial Advisor Council. Meanwhile, in a 2024 report, the New York Fed found credit card delinquency rates were rising faster for Gen Z than for other generations. About 15% had maxed out their cards, more than other cohorts, it said. It's also "never been easier to buy things," with the rise of buy now, pay later lending, for example, Alev said. BNPL has pushed the majority of Gen Z users — 77% — to say the service has encouraged them to spend more than they can afford, according to the Credit Karma survey. The firm polled 1,015 adults ages 18 and older, 182 of whom are from Gen Z. These financial challenges compound an environment of general political and financial uncertainty, amid on-again-off-again tariff policy and its potential impact on inflation and the U.S. economy, for example, experts said. "You start stacking all these things on top of each other and it can create a lack of optimism for young people looking to get started in their financial lives," Alev said. Young adults should try to rewire their financial mindset, experts said. "Most importantly, you don't want to bet against yourself," Sun said. "See it as an opportunity," she added. "If you're young and your expenses are low, this is the time to invest as much as you can right now." Time is working in their favor, due to the ability to compound investment growth over multiple decades, Alev said. While investing might "feel impossible," every little bit helps, even if it's just investing $10 a month right now into a tax-advantaged retirement account like a Roth IRA or 401(k). The latter is among the easiest ways to start, due to automatic payroll deduction and the possibility of earning a "match" from your employer, which is "probably the closest thing to free money any of us will get in our lifetime," Alev said. "This is actually the most exciting time to invest, because you're young," Sun said. Instituting mindful spending habits, such as putting a waiting period of at least 24 hours in place before buying a non-essential item, can help prevent unnecessary spending, she added. Sun advocates for paying down high-interest debt before focusing on investing, so interest payments don't quickly spiral out of control. Or, as an alternative, they can try to fund a 401(k) to get their full company match while also working to pay off high-interest debt, she said. "Instead of getting into the 'woe is me' mode, change that into taking action," Sun said. "Make a plan, take baby steps and get excited about opportunities to invest."
Los Angeles Times
an hour ago
- Los Angeles Times
Jobs at the Port of Los Angeles are down by half, executive director says
Job opportunities at the Port of Los Angeles are dwindling as President Trump's steep tariffs take a hit on global trade and a major economic engine for the regional economy. Nearly half of the longshoremen who support operations at the port went without work over the last two weeks, Gene Seroka, executive director of the Port of Los Angeles, said in an interview. The port processed 25% less cargo than forecast for the month of May, he said. Trump's tariffs have drastically stemmed the flow of goods into the U.S., driving down activity at the neighboring ports of L.A. and Long Beach, which collectively processed more than 20 million 20-foot-long cargo units last year. The two ports are the largest in the country and provide jobs for thousands of dockworkers, heavy equipment operators and truck drivers. But work has fallen off sharply in recent weeks. Over the last 25 work shifts, only 733 jobs were available for 1,575 longshoremen looking for work. 'They haven't been laid off, but they're not working nearly as much as they did previously,' Seroka told The Times. 'Since the tariffs went into place, and in May specifically, we've really seen the work go off on the downside.' Marine terminal operators post available work opportunities, known as job orders, on a digital board at the port three times a day. Longshoremen can review the job orders at each shift and bid on the jobs they want to take. If there are more longshoremen than job orders, a portion of workers will go without pay. The average of 733 job orders posted over the past 25 shifts, which is equal to roughly two weeks, is unusually low. Ordinarily, between 1,700 and 2,000 job orders are posted during a typical day shift, and between 1,100 and 1,400 are posted during a standard night shift. Seroka attributed the decrease in job opportunities to lower cargo volume moving through the port. In May, 17 cargo ships canceled their planned trips to Los Angeles amid uncertainty over duties the Trump administration imposed worldwide. Although May is typically a busier month than April, this past May saw 18% less cargo processed than the month prior, according to port data. The falloff comes during a critical time in advance of the Christmas shopping season, orders for which are usually placed before July 1. Conditions are not expected to significantly improve anytime soon. 'The June numbers that we're projecting right now are nowhere near where they traditionally should be,' Seroka said. An average of five ships have entered the port each day over the last week. This time of year, there would typically be between 10 and 12 ships in the port each day. 'The drop in cargo volume caused by Trump's tariffs will mean empty shelves when products don't reach our stores, rising prices on everything from groceries to clothes to cars, and undoubtedly, more Americans out of work,' U.S. Sen. Alex Padilla of California said in a news conference last month. The decline in shipping has broader ripple effects on L.A.'s logistics economy. A 2023 report found that the ports of Los Angeles and Long Beach contributed $21.8 billion in direct revenue to local service providers, generating $2.7 billion in state and local taxes and creating 165,462 jobs, directly and indirectly. A decline of just 1% in cargo to the ports would wipe away 2,769 jobs and endanger as many as 4,000 others, the study found. Union officials could not be reached for comment on Friday but had previously predicted job losses for their members. 'Some of the workforce will not be getting their full 40 hours a week based on the loss of cargo,' Gary Herrera, president of the longshoremen union ILWU Local 13, warned last month. 'That is going to have an effect on the work opportunities for not just us, but for truck drivers, warehouse workers and logistics teams,' he said. The slowdown in activity at the ports of L.A. and Long Beach has also spread into surrounding communities. Businesses in the area rely on a robust community of port workers to frequent their establishments. 'We're starting to hear from small businesses and restaurants in the harbor area that their customer patronage is trending downward,' Seroka said. 'Outside of COVID, this is the biggest drop I've seen in my career.'
