Snack companies still see growth despite inflation woes
(WDBJ) - As inflation and other uncertainties swirl in the world’s economy today, the lost and found of favorable fortunes clearly does not include many sweet teeth.
According to Business Insider, affordable luxuries like Oreos and Twinkies continue to see strong sales as people look to these delectable treats to “not feel terrible.”
Mondelez, maker of Oreos, and Hostess, famous for its Twinkies, both reported sales volume increases in their recent earning reports and detailed that they expect those sales to continue growth over the next few quarters.
“A package of Oreos is far from ‘luxury,’ but it’s a small treat that is not too expensive to throw in your shopping cart that enables you to not feel terrible at all times,” Zak Stambor, an Insider Intelligence senior analyst said.
During the great recession just over a decade ago, this phenomenon was brought to light again.
“We saw back in 2008 and 2009 a similar sort of thing.”
Mondelez’s revenue continues to grow as the company raises prices to keep up with the cost of inflation, its CEO told analysts on a call discussing earnings.
“Our products remain an affordable treat for families and consumers,” Michele Buck, the CEO of Hershey, added when talking to analysts. “And we know that part of that is they want to reward themselves when times are tough.”
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