The current pandemic has sent shockwaves through the US as people begin to stockpile non-perishable foodstuffs and leave empty shelves for other shoppers. Last month Nielsen saw massive sales growth for pantry foods such as cereals and canned goods. Large food companies like Tyson Foods and Kraft Heinz have been forced to increase production to keep up with consumer demand, which includes hiring more operations staff and expanding hours.
Leading financial services company Credit Suisse are unsure however whether these sale increases would continue into next year.
On the flip side, some food companies with at-home food consumption are facing challenges. Mondelez and Kellogs are expected to see decreases in profits.
Growth in frozen-food, packaged items and non-perishables items were to be expected, with researchers and analysts both predicting this as far back as early March, but that it will be temporary.
But Credit Suisse are now saying this profits boost could last as long as until May – but that it doesn’t promise any long-term benefits for companies.
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