Is there anything more comforting during a global pandemic than a nice warm bowl of soup? Apparently not. Campbell reported a 35% increase in US soup sales for the three months ending on April 26.
Trends: Campbell benefitted from a number of different coronavirus shopping trends.
At first, people were stocking up on canned and shelf-stable goods — at one point, demand for its soup shot up by 140%, Campbell said. As time goes on, people have also started shopping for comfort foods and nostalgic brands. Campbell ticks those boxes, as well.
Sales of Campbell’s other products have also increased. “Think of tomato soup paired with grilled cheese or family spaghetti night with Prego pasta sauce or the fun of sharing SpaghettiOs with your kids,” said Campbell Soup CEO Mark Clouse. “All of them have seen significant consumption gains during the crisis.”
The surge in demand marks a sharp rebound for Campbell (CPB), which has struggled the past few years to get shoppers excited about its soups. Americans were avoiding the aisles in the center of grocery stores, instead opting for fresh options. But now the coronavirus pandemic reversed that trend, and Campbell’s future is looking Mmm Mmm Good.
Whereas the company’s previous forecast for 2020 net sales ranged from a 1% decline to a 1% increase, Campbell now expects 2020 net sales to grow 5.5% to 6.5%.
It’s Amazing What Soup Can Do!