Latest news with #Beekhuizen
The Hill
17 hours ago
- Business
- The Hill
Americans haven't cooked this much at home since 2020: Campbell's CEO
(NewsNation) — More Americans are cooking at home and turning to ingredients that stretch their food budgets, a potential warning sign for the U.S. economy. American soup and snack maker Campbell's recently saw the highest level of meals cooked at home since early 2020, CEO Mick Beekhuizen said on an earnings call this week. 'We started to see consumer sentiment softening in January,' Beekhuizen said. 'This continued throughout Q3, with consumers making more deliberate choices with their spending on food.' And it's not just where they're eating, it's what they're eating, too. Shoppers are being more intentional with their snack spending and gravitating toward grocery items like condensed cooking soups, broths and Italian sauces, ingredients that help 'stretch tight food budgets,' Beekhuizen said. Campbell's noted sales of its broths rose 15 percent during the quarter while snack sales, including Goldfish crackers and Cape Cod potato chips, declined over the same period. Other iconic American brands are also seeing changes in consumer habits, suggesting households are growing more cautious with their spending. The snacking slowdown has hit PepsiCo and General Mills, and Procter & Gamble has noticed consumers cutting back on laundry to conserve detergent. Meanwhile, McDonald's recently experienced its worst U.S. sales decline in five years, with traffic falling particularly among low and middle-income diners. All of this comes amid heightened economic uncertainty, with President Trump's tariff policy unsettling both Wall Street and Main Street. The lingering sense of unease recently sent consumer sentiment plunging to its lowest level in three years, nearing a record low. Recession odds are also up since the start of the year. Americans have been particularly concerned about the potential resurgence of rampant inflation, as retail giants like Walmart warn that tariffs will drive prices higher for a range of goods, from bananas to car seats. So far, economists' worst fears haven't come to pass, though the full effect of the president's trade war may still be months away. It's possible the shift toward at-home dining could prove benign, driven more by the rising cost of eating out rather than drastic belt-tightening. Grocery prices were up 2 percent in April compared to the year prior, according to the latest Consumer Price Index. Meanwhile, the cost of eating out increased by 3.9 percent over the same period, outpacing overall inflation. Still, prominent household brands are likely to be the first to spot trouble brewing, given that consumer spending makes up about two-thirds of the U.S. economy. Another trend that shows Americans are feeling: Sales are up at bargain stores like Dollar General, with even higher-income shoppers stopping by.
Yahoo
a day ago
- Business
- Yahoo
Americans haven't cooked this much at home since 2020: Campbell's CEO
(NewsNation) — More Americans are cooking at home and turning to ingredients that stretch their food budgets, a potential warning sign for the U.S. economy. American soup and snack maker Campbell's recently saw the highest level of meals cooked at home since early 2020, CEO Mick Beekhuizen said on an earnings call this week. 'We started to see consumer sentiment softening in January,' Beekhuizen said. 'This continued throughout Q3, with consumers making more deliberate choices with their spending on food.' And it's not just where they're eating; it's what they're eating. Major brands flag consumer anxiety: McDonald's, Chipotle, P&G Shoppers are being more intentional with their snack spending and gravitating toward grocery items like condensed cooking soups, broths and Italian sauces, ingredients that help 'stretch tight food budgets,' Beekhuizen said. Campbell's noted sales of its broths rose 15% during the quarter while snack sales, including Goldfish crackers and Cape Cod potato chips, declined over the same period. Other iconic American brands are also seeing changes in consumer habits, suggesting households are growing more cautious with their spending. Dollar General posts record sales as bargain stores attract more people anxious about the economy The snacking slowdown has hit PepsiCo and General Mills, and Procter & Gamble has noticed consumers cutting back on laundry to conserve detergent. Meanwhile, McDonald's recently experienced its worst U.S. sales decline in five years, with traffic falling particularly among low and middle-income diners. All of this comes amid heightened economic uncertainty, with President Trump's tariff policy unsettling both Wall Street and Main Street. The lingering sense of unease recently sent consumer sentiment plunging to its lowest level in three years, nearing a record low. Recession odds are also up since the start of the year. Americans have been particularly concerned about the potential resurgence of rampant inflation, as retail giants like Walmart warn that tariffs will drive prices higher for a range of goods, from bananas to car seats. So far, economists' worst fears haven't come to pass, though the full effect of the president's trade war may still be months away. It's possible the shift toward at-home dining could prove benign, driven more by the rising cost of eating out rather than drastic belt-tightening. Grocery prices were up 2% in April compared to the year prior, according to the latest Consumer Price Index. Meanwhile, the cost of eating out increased by 3.9% over the same period, outpacing overall inflation. Still, prominent household brands are likely to be the first to spot trouble brewing, given that consumer spending makes up about two-thirds of the U.S. economy. Another trend that shows Americans are feeling: Sales are up at bargain stores like Dollar General, with even higher-income shoppers stopping by. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
2 days ago
- Business
- Yahoo
Tariff uncertainty is hammering one of America's favorite food escapes — snacks
Tariff uncertainty and inflation are driving consumer decisions at the grocery stores, and for big packaged food companies, one key area is bearing the brunt of these changes: snacking. In its quarterly report released Monday, Campbell's (CPB), which owns snack brands like Goldfish crackers and Cape Cod chips, said that it saw "increased headwinds" in snacking, leading to a 5% decline in volume mix and an 8% decrease in revenue in its fiscal third quarter results. Consumers "are increasingly intentional about the discretionary snack purchases," CEO Mick Beekhuizen told investors on the company's earnings call, a trend that has only gotten worse as the year's gone on. "If you look at the quarter, Q3, and you put it in perspective versus Q2, you see... the aggregate categories deteriorated... driven by the deteriorating consumer confidence," Beekhuizen added. Campbell's is only the latest in a series of packaged food giants to call out a shift in snacking behavior. "Revenue management clearly is becoming more complex," PepsiCo (PEP) CEO Ramon Laguarta told investors on the company's earnings call in late April, "as consumers are feeling more challenged with their disposable income." Laguarta said consumers' approach to shopping changed in the quarter. In early April, consumers were looking to see how much they got per item, and by the end of the month, they were more focused on the "absolute price per unit." Pepsi's snack portfolio includes Frito-Lay brands like Lays, Cheetos, Doritos, and Tostitos, among others. Kraft Heinz's (KHC) portfolio overall — ranging from Jell-O to Lunchables — saw its volume mix drop 5.6 percentage points in the quarter. Kellanova (K), which is behind brands like Cheez-Its and Pringles, saw its volume decline in North America. The company is in the process of being acquired by Mars. The summer months could potentially catalyze a turnaround in consumer habits, with holidays offering what Kraft Heinz CEO Carlos Abrams-River called "volume opportunities" on the company's latest earnings call in late April. Winning holidays is crucial. "Holidays matter... It's like holidays are almost worth double relative to a regular week," Bank of America analyst Peter Galbo told Yahoo Finance. Better weather also plays a key role. For example, if Memorial Day weather isn't very good in much of the country, it can create a "meaningful swing factor" for snacks. If "the weather is bad," Galbo added, "You're not going to have a barbecue, so you don't buy Tostitos or Lays." This snacking slowdown also comes as consumer confidence has fallen sharply, rising in May for the first time all year. At the same time, the US labor market is beginning to show some cracks, with the number of Americans collecting unemployment checks in mid-May standing at the highest in 3.5 years. Uncertainty surrounding tariffs has also weighed on pricing and the consumer outlook. Data from PwC found prices for shelf-stable categories like sauces, pasta, canned beans, and snacks are up 1%-6% over the last week due to the impact of tariffs. Read more: What Trump's tariffs mean for the economy and your wallet From a product packaging and ingredient standpoint, Galbo said he doesn't expect tariffs to impact snacks, which are mostly sourced domestically or from Canada, which is likely exempt as a result of the USMCA. Inflation data out last month showed grocery prices fell 0.4% in April while overall food inflation fell 0.1%, the sharpest drop in both measures since 2020. Still, measures like this year's spike — and then sharp decline — in egg prices show consumers navigating a volatile food pricing environment and acting with caution as they roam the aisles. "Snacking is way more discretionary than we probably all thought it was, as opposed to being a staple," Galbo said. "Which is what these companies were supposed to be." Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Post
2 days ago
- Business
- New York Post
Campbell's CEO says company sees shift in American households
More Americans are cooking at home as growing economic concerns are forcing households to cut back, according to Campbell's CEO Mick Beekhuizen. Beekhuizen told analysts during the company's third-quarter earnings call on Monday that consumer sentiment continued to soften throughout the quarter, with shoppers becoming even more deliberate about how they were spending money on food. 'A key outcome is a growing preference for home-cooked meals, leading to the highest levels of meals prepared at home since early 2020,' Beekhuizen said. He also noted that consumers are also 'favoring ingredients that help stretch tighter food budgets.' The trend helped boost the company's meals and beverages business, especially its line of condensed cooking soups, broth and Italian sauces. However, shoppers were increasingly intentional about their discretionary snack purchases, which created additional headwinds in its snacking categories. From 2020 to 2024, the all-food consumer price index rose 23.6%, outpacing the entire index, which grew 21.2% over the same period. Though food price growth slowed in 2023 and 2024 because wholesale food prices and these other inflationary factors eased across industries, some experts fear President Donald Trump's tariffs could increase food prices again. Campbell's CEO Mick Beekhuizen claimed more Americans are cooking at home. Mick Beekhuizen / Linkedin American shoppers are primarily concerned about inflation and tariffs, according to a survey Beekhuizen conducted in May. Getty Images While inflation remains consumers' top concern, tariffs have quickly risen to second place, according to consulting firm McKinsey, which conducted a survey in May to understand how tariffs are shaping consumer concerns and behaviors. Nearly 50% of US consumers surveyed reported rising prices as their top concern, followed by tariff policies at 29%, according to the report. Despite the ongoing trade talks, the uncertainty and volatility that still persists in the market are already forcing most of the survey respondents to 'explore a range of personal financial behaviors to protect their pocketbooks,' the firm said. If they haven't done so already, they plan to soon, even if the tariffs' effects have yet to hit store shelves, according to McKinsey.
Yahoo
2 days ago
- Business
- Yahoo
Cash-strapped consumers push at-home cooking to highest level since 2020: Campbell's
This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter. The Campbell's Company said consumers are preparing meals at home at the highest level since early 2020 when COVID-19 forced many consumers to forgo visiting restaurants and other establishments. The food manufacturer said consumers are favoring ingredients that stretch their tighter food budgets. This is providing a tailwind for Campbell's condensed cooking soups, broths and Italian sauces. While its meals and beverages operations remain strong, Campbell's continues to face pressure in snacks, most notably chips and crackers. The same inflationary pressures that have pushed consumers to cook more have also led to a decline in snacking, according to the Goldfish maker.. As consumers look to save a few bucks amid inflation and uncertainty over the broader economy, foods that can be prepared at home have proven to be a major beneficiary. Sales in Campbell's meals and beverages segment surged 15% to $1.5 billion during the third quarter, benefitting from the acquisition of Rao's owner Sovos Brands in 2024. Campbell's soup businesses 'continued its strong performance' during the quarter, with its wet offerings benefitting from younger individuals who are increasingly cooking at home, Campbell's CEO Mick Beekhuizen, said in prepared remarks. The company estimated six of its eight top meals and beverages brands, including Pace, Pacific and Swanson, grew or held share in the third quarter, with consumption increasing by 2%. 'We are seeing improved consumption across all consumer income groups' for meals and beverages, Beekhuizen said in a statement. Consumers are 'turning to our brands for value, quality, and convenience.' As inflationary pressures have led to a renaissance in home cooking, it's become a dual-edged sword for food companies that also are seeing a decline in snacking consumption. Beekhuizen said the snack space remains soft as consumers become more selective and the category continues to be 'increasingly competitive.' Campbell's said snack sales slipped 8% to $1 billion in the third quarter. The company singled out its Goldfish cracker brand, noting 'we have more work to do to reinvigorate this brand and get it back on its historical growth trajectory.' 'While we are not satisfied with the results of our Snacks division, we remain confident in the strength of our Snacks portfolio and continue to take steps to regain our momentum,' Campbell's CFO Carrie Anderson said in prepared remarks. Campbell's also said it is closely watching to see how tariffs will impact its business. The company, which imports tinplate steel for cans and canola oil for chips, noted trade headwinds could cut into its fiscal-year earnings by 3 cents to 5 cents a share. Beekhuizen said the company is 'actively work[ing] to mitigate as much of the potential direct impact of tariffs as possible.' Anderson added that these steps include inventory management, pursuing alternative sourcing and 'where absolutely necessary, consideration of surgical pricing actions.' Recommended Reading Snacking takes a hit as consumer spending shifts to food staples Sign in to access your portfolio
